BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 389
                                                                  Page  1

          Date of Hearing:   July 7, 2009
          Counsel:        Kathleen Ragan


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                Juan Arambula, Chair

                 SB 389 (Negrete-McLeod) - As Amended:  June 1, 2009
           

          SUMMARY  :   Adds specified licensees to the existing list of  
          licensees required to furnish to the licensing agency a full set  
          of fingerprints for purposes of conducting criminal history  
          record checks, and imposes these requirements on a petitioner  
          for reinstatement of a revoked or cancelled license.   
          Specifically,  this bill  :  

          1)Makes fingerprinting requirements also applicable to the  
            Dental Board, the Dental Hygiene Committee, the Professional  
            Fiduciaries Bureau, the Osteopathic Medical Board, the Board  
            of Podiatric Medicine, and the Board of Chiropractic  
            Examiners.  

          2)Requires new applicants and petitioners for reinstatement of a  
            revoked, surrendered, or canceled license to successfully  
            complete a state and federal level criminal record information  
            search.

          3)Commencing January 1, 2011, requires licensees who have not  
            previously submitted fingerprints, or for whom a record of the  
            submission of fingerprints no longer exists, to complete the  
            process necessary for a state and federal criminal offender  
            record information search, as specified.  

          4)Provides that, as a condition of license renewal, a licensee,  
            as specified, shall complete the process necessary for a state  
            and federal criminal offender record information search to be  
            conducted as described, through the Department of Justice and  
            the Federal Bureau of Investigation (FBI).  States that  
            failure to provide the necessary information on the search  
            renders an application for licensure incomplete.  

          5)States that no license shall be renewed until certification by  
            the licensee is received by the agency verifying that the  
            licensee has complied with the specified requirements.  States  








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            that the certification shall be made on a form provided by the  
            agency not later than the renewal date of the license.   
            Requires the licensee to retain, for at least three years,  
            specified evidence that the certification was made.

          6)Subjects to disciplinary action a licensee who falsely  
            certifies completion of a state and federal level criminal  
            record information search.

          7)Requires licensees, as a condition of renewal of the license,  
            to notify the Board if the licensee, or any member of the  
            personnel of record of the licensee, has been convicted of a  
            felony or misdemeanor since the last renewal, or, if this is  
            the first renewal, since the initial license has been issued.   


          8)Specifically requires the Contractors' State License Board to  
            implement the provisions pertaining to license renewal on the  
            date on which an appropriation is made in the Annual Budget  
            Act to fund the Board's activities to accommodate a criminal  
            history record check.  States that if these provisions become  
            applicable to the Contractors' State License Board on or  
            before July 1, 2012, it shall implement this bill according to  
            a specified schedule.  States that if the provisions become  
            applicable after July 1, 2012, the specified license renewal  
            commencement dates shall be delayed for one year.  

           EXISTING LAW  :

          1)Creates the Department of Consumer Affairs (DCA) within the  
            State and Consumer Services Agency.  Provides that the  
            Director of the Department of Consumer Affairs is appointed by  
            the Governor and serves at the pleasure of the Governor.   
            [Business and Professions (B&P) Code Section 151.]

          2)States that each board within the DCA shall establish such  
            license periods and renewal dates for all licenses in such  
            manner as best to distribute the renewal work of all boards  
            throughout each year.  (B&P Code Section 152.6.)

          3)Authorizes a board to suspend or revoke a license on various  
            grounds, including that the licensee has been convicted of a  
            crime, if the crime is substantially related to the  
            qualifications, functions or duties of the licensed activity.   
            (B&P Code Section 480.)








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          4)Provides that in any criminal proceedings against a person who  
            has been issued a license to engage in a business or  
            profession by a state agency pursuant to the B&P Code, the  
            Education Code, or the Chiropractic Initiative Act, the state  
            agency which issued the license may voluntarily appear to  
            furnish pertinent information, make recommendations regarding  
            specific conditions of probation, or provide any other  
            assistance necessary to promote the interests of justice and  
            protect the interests of the public, or may be ordered by the  
            court to do so, if the crime charged is substantially related  
            to the qualifications, functions, or duties of a licensee.   
            (Penal Code Section 23.)

          5)Requires the clerk of the court to report to the respective  
            health board any judgment by a court that a licensee has  
            committed a crime, or is liable for any death or personal  
            injury resulting in a judgment for an amount in excess of  
            $30,000.  (B&P Code Section 803.)

          6)Requires city attorneys and district attorneys to report to a  
            health board any filings charging a felony and requires the  
            clerk of the court to report a conviction of a crime within 48  
            hours after the conviction, and to also transmit any felony  
            preliminary hearing transcript or probation report on a  
            licensee to the respective health board.  (B&P Code Section  
            803.5.)

          7)Requires a physician and surgeon, osteopathic physician and  
            surgeon, and a doctor of podiatric medicine to self-report to  
            the licensing board any charge of a misdemeanor or felony  
            within 30 days, and provides that failure to report this  
            information is subject to a $5,000 fine for non-reporting.   
            (B&P Code Section 802.1.)

          8)Requires the following agencies to require applicants to  
            furnish to the agency a full set of fingerprints for the  
            purposes of conducting criminal history record checks.   
            Further states that any such agency may, at its discretion,  
            obtain and receive criminal history information from the  
            California DOJ and the FBI [B&P Code Section 144(a)(b)]:

             a)   The California Board of Accountancy;

             b)   State Athlete Commission;








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             c)   Board of Behavioral Science;

             d)   Court Reporters Board of California;

             e)   State Board of Guide Dogs for the Blind;

             f)   California State Board of Pharmacy;

             g)   Veterinary Medical Board;

             h)   Registered Veterinary Technician Committee;

             i)   Board of Vocational Nursing and Psychiatric Technicians;

             j)   Respiratory Care Board of California;

             aa)  Hearing Aid Dispensers Advisory Committee;

             bb)  Physical Therapy Board of California;

             cc)  Physician Assistant Committee of the Medical Board of  
               California;

             dd)  Speech-Language Pathology and Audiology Board;

             ee)  Medical Board of California;

             ff)  State Board of Optometry;

             gg)  Acupuncture Board;

             hh)  Cemetery and Funeral Board;

             ii)  Bureau of Security and Investigative Services;

             jj)  Division of Investigation;

             aaa) Board of Psychology;

             bbb) The California Board of Occupational Therapy;

             ccc) Structural Pest Control Board;

             ddd) Contractors' State License Board; and,








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             eee) Bureau of Naturopathic Medicine.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "This bill  
            protects consumers by requiring all health-related boards  
            under the DCA to fingerprint all license applicants for the  
            purpose of conducting criminal background checks; and  
            requiring, beginning January 1, 2011, all licensees who have  
            not previously submitted fingerprints, or for whom a record of  
            the submission of fingerprints no longer exists, to submit  
            fingerprints for these purposes, prior to license renewal.   
            Under this bill, the requirement to fingerprint existing  
            licensees would apply not only to health-related boards but  
            also to other licensing boards subject to the general  
            fingerprint requirement of B&P Code Section 144.  This bill  
            further requires licensees, as a condition of license renewal,  
            to notify the board on the license renewal form if he or she  
            has been convicted of a felony or misdemeanor since the last  
            license renewal.

          "The most important part of this bill is to assure that the DOJ  
            has fingerprints on file for all licensees so that if future  
            crimes are committed, then the boards and bureaus are informed  
            in a timely manner so they can take appropriate action.  The  
            absence of fingerprints on file with DOJ leaves open the  
            opportunity for licensees of California to continue their  
            trade or practice even after committing serious crimes and  
            endangering consumers.

          "The author is willing to work with concerned parties in order  
            to address their concerns in such a way that consumers can be  
            best protected.  The author understands the current fiscal  
            realities in California for all parties involved and is  
            interested in ultimately implementing a bill which will  
            protect important consumer interests and at the same time be  
            reasonable and workable for licensees as well as for the  
            agencies."  

           2)Background  :  In the fall of 2008, the Los Angeles Times  
            published several articles which focused on nurses and  
            licensed vocational nurses who had prior criminal convictions  








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            and were still licensed by the Board of Registered Nursing  
            (BRN) and the Board of Vocational Nursing and Psychiatric  
            Technicians (BVNPT).  The Los Angeles Times' investigation, in  
            a joint effort with the non-profit investigative reporting  
            agency Pro Publica, reviewed nursing board files and court  
            pleadings, consulted online databases, newspaper clippings,  
            and conducted interviews with nurses and experts in several  
            states.  The articles reported finding 115 cases in which the  
            BRN did not seek to revoke or restrict licenses until nurses  
            had three or more criminal convictions.  Twenty-five nurses  
            had at least five convictions.  In some cases, nurses with  
            felony records continued to have spotless license records,  
            even while jailed or imprisoned.

          "The investigation revealed two significant flaws in the boards'  
            screening processes:  First, it allows a large portion of the  
            343,000 active registered nurses to escape scrutiny.  In 1990,  
            the BRN began to fingerprint applicants, but the law was not  
            retroactive so about 146,000 were never fingerprinted.   
            Second, renewal of a license every two years does not require  
            another fingerprint check or the ability of the board to ask  
            the licensee if they had a criminal conviction since their  
            initial license or last renewal.

          "In response to those articles, the DCA indicated that it is  
            taking swift action to provide additional consumer protections  
            by making sure that all health related boards implement a plan  
            to obtain fingerprints from all licensees regardless of when  
            they were first licensed.  Both the BRN and the BVNPT have  
            already adopted emergency regulations to require the  
            fingerprinting of existing licensees, and the other licensing  
            boards that do not already have this requirement have begun  
            the rulemaking process to do so.  This bill establishes  
            statutory affirmation of this authority and removes any  
            ambiguity that may exist about the authority of a board which  
            currently fingerprints new applicants to also require  
            fingerprints from existing licensees.

          "In addition, existing law requires the clerk of the court to  
            report to the respective health board any judgment by a court  
            that a licensee has committed a crime, or is liable for any  
            death or personal injury resulting in a judgment for an amount  
            in excess of $30,000.  (B&P Code Section 803.)  Further, city  
            attorneys and district attorneys must report to a health board  
            any filings charging a felony and the clerk of the court must  








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            report a conviction of a crime within 48 hours of the  
            conviction.  (B&P Code Section 803.5.)  The clerk must  
            transmit any felony preliminary hearing transcript or  
            probation report on a licensee to the respective health board.  
             (B&P Code Section 803.6.)  There is no assurance that health  
            boards are consistently receiving this information and there  
            appears to be lax reporting by prosecuting attorneys and the  
            courts to the health boards in complying with these reporting  
            requirements.

          "Regarding health care practitioners self-reporting of a charge  
            of a misdemeanor or felony, the B&P Code requires only a  
            physician and surgeon or doctor of podiatric medicine to  
            report this information, and [these people] can be fined  
            $5,000 for non-reporting.  (B&P Code Section 802.1.)  All  
            licensees should be required to report convictions to the  
            board that licenses and regulates them.  

          "This bill would require all health-related boards under the DCA  
            to fingerprint all license applicants for the purpose of  
            conducting criminal background checks; and requires, beginning  
            January 1, 2011, all licensees who have not previously  
            submitted fingerprints, or for whom a record of the submission  
            of fingerprints no longer exists, to submit fingerprints for  
            this purpose prior to license renewal."

           3)This Bill Appears To Be Intended to Correct the Flaws  
            Disclosed in the Los Angeles Times Article  :  This bill  
            mandates that the current licensing boards who, under existing  
            law may, but are not required to, obtain criminal background  
            checks for potential licensees, to get the background checks.   
            This bill also adds six new boards to this requirement and  
            mandates that the boards get subsequent arrest information.

          This bill also requires the licensee applying for license  
            renewal to certify that he or she has already had a background  
            check or submitted fingerprints.  There could be potential  
            problems with this self-certification process.  For example,  
            there could have been a problem with the fingerprints  
            submitted or the person's background check may not have  
            cleared without problems.  Additionally, a person could be  
            confused because he or she may have had a background check for  
            another purpose, such as being a scout leader or assisting at  
            their child's school; that person may not understand that a  
            background check conducted on him or her with respect to his  








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            or her role as a scout leader does not automatically cross  
            over to other areas, such as license renewal.   
            Self-certification is not necessarily a workable process to  
            correct the flaws disclosed by the newspaper articles; i.e.,  
            that the boards have not maintained consistent records.  

          According to background information piece provided by the  
            author, "Regarding licensees self-reporting of a charge of a  
            misdemeanor or felony, the B&P Code requires only a physician  
            and surgeon or doctor of podiatric medicine to report this  
            information . . .  All licensees should be required to report  
            convictions to the board that licenses and regulates them."  

           4)DCA Director's Statement regarding the Fingerprinting of  
            Licensees  :  A December 2008 statement from the DCA Director  
            was included with the author's background information.  The  
            Director states in part, "The DCA has instructed all of the  
            healing arts boards and bureaus to quickly move forward with a  
             number of administrative and policy changes to further  
            strengthen the screening of existing licensees, initiate  
            appropriate disciplinary actions, and create transparency for  
            the public concerning questionable licensees.  Actions taken  
            include:

             a)   "Collection of fingerprints from all active healing arts  
               licensees not fingerprinted.  DCA has established a  
               timeline of no more than one renewal cycle (two years) in  
               order for this to be accomplished.  

             b)   "Inclusion on all healing arts renewal forms a question  
               requiring licensee to disclose any conviction or  
               administrative action taken against them by a government  
               agency since their last renewal.

             c)   "The Internet posting of the entire text of formal  
               accusations filed against a licensee for those currently  
               pending and for any new accusations filed by each board or  
               bureau.

             d)   "A thorough review of all pending complaints and  
               accusations to identify any cases that require immediate  
               action to suspend a license in order to ensure public  
               safety.

             e)   "The fingerprinting directive currently applies to  








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               health boards and bureaus, but will be expanded to include  
               all of the DCA's boards and bureaus.  Consumer public  
               safety is the DCA's No. 1 priority and it has been  
               determined that those boards and bureaus that put licensees  
               indirect contact with consumers will have priority when it  
               comes to financial and personnel resources.

             f)   "DCA has reaffirmed and amplified its expectation that  
               all regulatory programs seek interim suspension orders and  
               [Penal Code Section] 23 intervention for those licenses  
               posing a clear and imminent threat to the public if allowed  
               to practice." 

           5)Arguments in Support  :

             a)   According to the  Medical Board of California  , "This bill  
               would require a licensee who has not been previously  
               fingerprinted or for whom a record does not exist, to  
               successfully complete a fingerprint record search at time  
               of renewal.  It will require notification by the licensee  
               at time of renewal if he or she has been convicted of a  
               felony or misdemeanor since the last renewal.

             "The Board has been fingerprinting its licensees for many  
               years and is in the process of verifying records to  
               determine if any licensees have not been fingerprinted.   
               The Board feels that access to fingerprint records is  
               important for consumer protection.  We support the  
               authority to work with the DOJ to complete the  
               fingerprinting process for all licensees.

             "Although current law includes reporting requirements, the  
               additional requirement for licensees to report felonies or  
               misdemeanors at the time of renewal is an added protection  
               for consumers."  

             b)   According to the  California Board of Accountancy  , "SB  
               389 requires applicants for a license and licensees who  
               have not previously submitted fingerprints to successfully  
               complete a state and federal level criminal offender record  
               information search.  It requires a licensee, as a condition  
               of license renewal, to notify the Board on the license  
               renewal form, of a felony or misdemeanor conviction since  
               his or her last renewal.  









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             "[T]he Board believes that ensuring all licensees undergo a  
               criminal offender record information search will be a  
               benefit to California consumers."  

             c)   According to the  California Association for Nurse  
               Practitioners  , "SB 389, which would ensure that all  
               licensees of the DCA are fingerprinted, ensuring that the  
               licensing boards are aware of future convictions.

             "The California Association for Nurse Practitioners believes  
               this is a reasonable measure to ensure that all nurses  
               practicing in California are held to the highest standard.   
               The BRN should have this basis information about licensees  
               who may have committed serious crimes that may endanger  
               consumers.  Nurse practitioners are advanced practice  
               registered nurses who have additional education and  
               training in diagnosis and management of medical conditions  
               and are authorized to perform healthcare services beyond  
               those of a registered nurse.  All nurse practitioners are  
               registered nurses and hold a license issued by the  
               California BRN."  

           6)Arguments in Opposition  :

             a)   According to the  Construction Industry Legislative  
               Council  (CILC), a consortium of over 40 subcontractor trade  
               associations, "This bill would require applicants for a  
               specified license to have a criminal background check  
               completed before a license is granted or renewed.  

             "Contractors that enter consumer's homes to perform repairs  
               are usually employees of the contractor and would not be  
               subject to background checks.  Furthermore, current law  
               already requires the Contractor's State Licensing Board  
               (CSLB) to fingerprint for a new license.  Since the  
               implementation of the fingerprinting requirement in 2005,  
               CSLB workload has been heavy and they are already behind on  
               fingerprinting new licenses.  This bill would further  
               exacerbate an already overburdened system."

             b)   According to the  Southern California Contractors  
               Association  (SCCA), "SCAA was established in 1974 as an all  
               union contractor association; most SCCA members are heavy  
               engineering contractors - they build some of our roads,  
               bridges, and highways.








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             "SB 389 requires that every board, bureau, and commission  
               under the DCA to require a criminal history background  
               check for every license renewal.  For purposes of this  
               bill, SCCA is only concerned with the CSLB.  

             "The natural progression of applications to replace the  
               qualifying individual, add license classifications and new  
               applications for original licenses is a fair and just time  
               to administer criminal history background checks.  In time,  
               all licensees will have completed one.  There is no reason  
               to increase this natural progression.  

             "Moreover, SCCA is an association of commercial construction  
               contractors that do not participate in home improvement  
               construction projects.  SCCA members have no contact with  
               consumers.  Additionally, contractor licenses are unique in  
               that one person qualifies and licenses an entire business.   
               Most licensees under DCA license individuals.  This is a  
               significant difference when examining licenses under B&P  
               Code Section 144; not all licenses should be treated in the  
               same way."  

           7)Prior Legislation  :

             a)   SB 136 (Figueroa), Chapter 909, Statutes of 2004,  
               required, among other things, CSLB to obtain fingerprints  
               and criminal history information from applicants on the  
               date on which sufficient funds were available to the Board  
               and the DOJ, or on July 1, 2005, whichever occurred first.

             b)   SB 1346 (Business & Professions Committee), Chapter 758,  
               Statutes of 1997, established the general fingerprinting  
               authority under the B&P Code.  

             c)   AB 1025 (Bass), of the 2007-08 Legislative Session,  
               would have provided that an applicant for a license could  
               not be denied licensure, or have the license suspended or  
               revoked, on the basis of a conviction of a misdemeanor or  
               felony if that person has obtained a certificate of  
               rehabilitation, and if the felony or misdemeanor has been  
               dismissed.  AB 1025 would have established a presumption  
               that the applicant or licensee had been rehabilitated  
               unless the Board proved otherwise.  AB 1025 was vetoed by  
               the Governor, stating that expungement is not intended to  








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               be indicative of rehabilitation, and this bill places the  
               burden of proof on licensing agencies to show that an  
               individual is not rehabilitated, which would result in  
               increased litigation and extensive investigations.  

             d)   SB 1402 (Corbett), of the 2007-08 Legislative Session,  
               would have added the Board of Chiropractic Examiners and  
               specified other healing arts boards and bureaus to the  
               entities required to provide licensing status information.   
               SB 1402 was vetoed by the Governor, citing the delay in  
               passing the 2008-09 budget which forced him to sign bills  
               that are the highest priority for California.  "This bill  
               does not meet that standard, and I cannot sign it."  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association for Nurse Practitioners
          California Board of Accountancy
          California Chiropractic Association
          Medical Board of California

           Opposition 
           
          Construction Industry Legislative Council
          Southern California Contractors Association
           

          Analysis Prepared by  :    Kathleen Ragan / PUB. S. / (916)  
          319-3744