BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2077
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                                Sandre Swanson, Chair
                 AB 2077 (Davis) - As Introduced:  February 23, 2012
           
          SUBJECT  :   Postrelease community supervision: employment 
          opportunities.

           SUMMARY  :   Requires the Employment Development Department (EDD) 
          to create a list of employers in the state who are willing to 
          hire formerly incarcerated persons and make the information 
          available to the public.  Specifically,  this bill  :  

          1)Requires the EDD to gather information about specific 
            employers that are willing to employ people who have been 
            incarcerated in a state prison or county jail and do the 
            following: 

             a)   Make a list of employers who are willing to employ 
               people who have been incarcerated in a state prison or 
               county jail that is sorted by county and make it available 
               to the public on their website and upon request in their 
               offices.

             b)   Send the list and updates, as necessary, to supervising 
               county agencies, as described in subdivision (a) of Section 
               3451 of the Penal Code. 

          2)Requires supervising county agencies, as defined, to provide 
            each person entering into a postrelease community supervision 
            agreement with the list produced by EDD for their respective 
            counties. 

           EXISTING LAW  : 

          1)Establishes EDD to administer employment services, handle 
            audit and collection of payroll taxes, maintain employment 
            records, and administer Unemployment Insurance, State 
            Disability Insurance, Workforce Investment, and Labor Market 
            Information programs.

          2)Establishes the Postrelease Community Supervision Act of 2011 
            to reduce the recidivism rate among the state's criminal 
            offenders.








                                                                  AB 2077
                                                                  Page  2


           FISCAL EFFECT  :   Unknown

           COMMENTS  :  According to the author, the state's ongoing economic 
          recession and 10.9 percent unemployment rate has made it 
          difficult for Californians to find jobs.  The author states that 
          the job market is even more challenging for ex-offenders (EOs) 
          because this population faces a rate of unemployment that is two 
          to three times higher than the average unemployed Californian.

          A 2008 report from the Pew Center on the States titled "One in 
          100: Behind Bars in America," (Pew Report) found that the United 
          States (U.S.) incarcerates more people than any other country in 
          the world.  The Pew Report states that in 2008, the U.S. penal 
          system held more than 2.3 million adults; which is more than 
          China's 1.5 million prisoners and the 890,000 individuals 
          incarcerated in Russia.  The Pew Report finds that more than 1 
          in 100 adults in America are incarcerated, yet the rates of 
          incarceration for African Americans and Latinos are much higher.

          In California, research indicates that African Americans and 
          Latinos are also disproportionately represented in the 
          population of incarcerated adults.  As noted in a 2008 UC 
          Berkeley Law study titled "A Higher Hurdle: Barriers to 
          Employment for Formerly Incarcerated Women," (UC Study) African 
          Americans have the highest rates of incarceration in the state 
          while Latinos comprise the largest number of incarcerated 
          people. According to data from the California Department of 
          Corrections and Rehabilitation (CDCR), as of April 4, 2012, the 
          state has 139,038 individuals in prison.  According to CDCR's 
          semi-annual population data, 29.1 percent of this population is 
          African American while 40.5 percent is Latino.  This rate of 
          incarceration is notable considering that U.S. Census data 
          indicates that African Americans represent 6.2 percent of 
          California's population.

          On May 23, 2011, due to California's large prison population and 
          related prison overcrowding, the Supreme Court ordered the state 
          to reduce its population by 30,000 inmates. On April 4, 2011, 
          Governor Brown signed AB 109 (Chapter 15, Statutes of 2011), a 
          budget trailer bill known as Public Safety Realignment. AB 109 
          took effect on October 1, 2011 and, among other things,  
          requires all offenders released from prison who do not have 
          current convictions for serious or violent felonies, who are not 
          third strikers, and who are not high risk sex offenders to be 








                                                                  AB 2077
                                                                  Page  3

          subject to post-release supervision (PRS) by counties rather 
          than subject to state parole supervision.

          As more PRS inmates enter into the community, the need for 
          employment opportunities EOs will increase.  Research indicates, 
          however, that imprisonment often limits an individual's 
          employment opportunities and earnings. A 2003 study titled 
          "Employer Demand For Ex-Offenders: Recent Evidence from Los 
          Angeles (Holzer et al.)," (Employer Study) found that the 
          reduction in employment opportunities and earnings that often 
          follow an individual's incarceration is associated with 
          employers' willingness, or unwillingness, to hire EOs.  The 
          Employer Study found that employers' willingness to hire 
          ex-offenders is very limited, even relative to other groups of 
          disadvantaged workers, such as welfare recipients and the long 
          term unemployed.  The Employer Study also notes that the 
          employers' willingness to hire EOs varies with particular 
          establishments and job characteristics. 

          According to the Employer Study, over 40 percent of employers 
          would "probably not" or "definitely not" be willing to hire an 
          applicant with a criminal record.  In addition, about 20 percent 
          of employers would "definitely" or "probably" consider an 
          applicant with a criminal history, while 35 percent of 
          employers' response would depend on the crime that the applicant 
          had committed.  Reasons for employers' hesitation to consider 
          EOs for employment include a perception of an applicant's 
          criminal history as a signal of the applicant's potential 
          untrustworthiness or concern about the applicant becoming a 
          problematic employee.  Fear of litigation was also contributes 
          to employers' unwillingness to hire EOs, especially since many 
          individuals are barred by law from certain occupations, 
          including those that require contact with children or jobs that 
          explicitly prohibits the employment of individuals with felony 
          convictions. 

          However, a 2003 study titled "Employment Barriers Facing 
          Ex-Offenders (Holzer et. al)," (EO Study) found that that 
          employers in industries with little customer contact, including 
          manufacturing and construction, were more willing to hire EOs 
          than others such as the retail trade and service sector.  The EO 
          study states that employer reluctance is greatest when the 
          offense in question was violent and least when the applicant's 
          offense was a non-violent drug offense.   









                                                                  AB 2077
                                                                  Page  4

          According to the author, there is no current law that compels 
          EDD to gather information about specific employers who are 
          willing to employ people who have been incarcerated in a state 
          prison or county jail.  The author states that there is an EDD 
          survey that employers fill out that solicits information to help 
          target potential candidates for employment.  According to the 
          author, this survey does not ask whether or not the employer 
          would be willing to hire an individual that has been 
          incarcerated.  While knowledge of the names and locations of 
          these employers would benefit EOs and the county officials that 
          are charged with their supervision, requiring EDD to conduct 
          employer surveys may not be the most effective or feasible way 
          to capture this information. 

          According to EDD, the department has no existing process to 
          survey employers about their willingness to hire EOs.  EDD would 
          have to create a separate survey and send it out to employers 
          with no guarantee that employers would respond.  According to 
          the EDD, a majority of the surveys they currently create and use 
          for labor market information are done at the behest of the 
          federal government and are federally funded.  EDD notes that the 
          federal government receives copies of the surveys they fund, 
          therefore adding an additional question related to an employer's 
          willingness to hire EOs to an existing federally funded survey 
          would not be an option. 

          In addition, EDD notes that the non-federally funded employer 
          surveys that they conduct are sent out on an annual basis and 
          would not meet the specifications of this bill.  According to 
          the department, the number of employers in California fluctuates 
          by approximately 125,000 annually.  As a result, if this bill 
          were to become law, EDD would have to dedicate an employee to 
          track the number of employers who come into the state and leave 
          the state in order to comply with this bills provision to survey 
          employers as "necessary" to maintain an updated an accurate list 
          on the EDD website.

          While EDD oversees workforce investment activities, Local 
          Workforce Investment Boards (LWIBs) are already working in over 
          48 Local Workforce Areas throughout the state and may be better 
          suited to provide information about local employers' willingness 
          to hire EOs.  According to the California Workforce Investment 
          Board (CWIB), one of the roles that LWIBs play in their 
          respective communities is that of broker between employers, 
          government agencies and various programs to connect people to 








                                                                  AB 2077
                                                                  Page  5

          the employment they need.  LWIBs regularly gather information as 
          a part of their workforce intelligence activities and work to 
          serve as the voice of their communities by articulating the 
          needs of individuals looking for training and jobs.  According 
          to CWIB, this includes individuals that may have special needs 
          or require more intensive services, including people who are 
          released from the correctional system. 

          Considering the existing relationships that LWIBs have in their 
          respective communities, the author may wish to consider an 
          amendment that would direct LWIBs, rather than EDD, to create a 
          list of employers who are willing to hire EOs.  In addition, the 
          author may wish to remove the provision that requires EDD to 
          make the list of employers willing to hire EOs available on its 
          website and instead direct LWIBs to share the list of employers 
          willing to hire EOs with the county entities responsible for 
          postrelease supervision.   

           
           

          ARGUMENTS IN SUPPORT

           In a letter expressing support for this bill, the California 
          Catholic Conference (CCC) writes that the bleak unemployment 
          rates for former inmates often leads them back into a life of 
          crime and results in a threat to public safety and a further 
          drain on taxpayers to re-incarcerate them.  Writing in support, 
          the California Attorneys for Criminal Justice (CACJ) writes that 
          unemployment is often two to three times greater among former 
          inmates than those who have never been incarcerated.  According 
          to CACJ, this reality has negative economic implications for 
          families that are affected and public safety.   

          This bill, upon passage out of Labor Committee, is 
          double-referred to Public Safety Committee.

           REGISTERED SUPPORT / OPPOSITION :   

           Support 
           
          American Federation of State, County and Municipal Employees
          California Attorneys for Criminal Justice
          California Catholic Conference, Inc
          California Public Defenders Association








                                                                  AB 2077
                                                                  Page  6


           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Shannon McKinley / L. & E. / (916) 
          319-2091