BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1198
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          Date of Hearing:   January 15, 2014

           ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
                                 Jim Frazier, Chair
                AB 1198 (Jones-Sawyer) - As Amended:  January 6, 2014
           
          SUBJECT  :  Public contracts: bidders: employment practices.

           SUMMARY  :  Prohibits the state from accepting a bid for a  
          contract from an entity that asks an applicant for employment to  
          disclose his or her conviction history unless the employer has  
          determined the applicant meets the minimum qualifications for  
          the position.  Specifically,  this bill  :  

          1)Prohibits the state from accepting a bid for a contract from  
            an entity that asks an applicant for employment who will  
            assist the entity in fulfilling the contract to disclose  
            information concerning the applicant's conviction history  
            unless the employer has determined the applicant meets the  
            minimum qualifications for the position.

          2)Specifies that (1) above applies to both oral and written  
            disclosures and disclosures made on an initial employment  
            application. 

          3)Exempts positions for which an employer is otherwise required  
            by state or federal law to conduct a conviction or criminal  
            history background check or any contract position with a  
            criminal justice agency, as defined in the Penal Code, from  
            (1) above.

          4)Clarifies that this bill shall not be construed to prevent the  
            state from accepting a bid from a contractor that conducts a  
            conviction history background check after complying with all  
            of the requirements of this bill.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author, six states, 32 U.S. cities,  
          and eight local governments in California have removed the  
          conviction history box from job applications in public  
          employment and contracting and, by doing so, have recognized  
          that employment for individuals with criminal backgrounds is  
          critical to their successful reentry into society.  The author  
          states that this bill is intended to give thousands of former  








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          prisoners a fair shot at employment while simultaneously  
          reducing the recidivism rate, increasing economic activity and  
          improving public safety.  

          Current law prohibits state and local agencies from asking  
          employment applicants to disclose information regarding their  
          conviction history until the agency has determined the applicant  
          meets the position's minimum employment qualifications.  This  
          bill would apply these requirements to state bids by prohibiting  
          the state from accepting bids from contractors that perform  
          pre-employment background checks on employees, with certain  
          exceptions for criminal justice agencies and any positions where  
          a background check is otherwise required.      

          The Department of General Services (DGS) is the central  
          purchasing authority for all state departments and agencies.   
          DGS indicates that the number of contracts affected by this bill  
          is unclear as the state generally does not control contractors'  
          hiring practices and this bill does not identify a mechanism for  
          verifying contractors' compliance.

          Supporters, representing various criminal justice advocacy  
          groups, state that this bill will ensure that entities  
          contracting with the state will not inquire about the conviction  
          history of a potential employee until after the initial  
          employment application.  They contend that formerly incarcerated  
          individuals have the right to employment and should not be  
          judged solely by their conviction history but rather by their  
          qualifications.

          The Southern California Contractors Association (SCCA), which  
          represents civil engineer contractors, objects to the potential  
          unintended consequences of this bill.  Specifically, SCCA is  
          concerned that, as a result of this bill, a contractor would be  
          forced to dismiss a long-term construction worker who freely  
          admitted to a criminal history and refill the position with a  
          worker eligible under this bill in order for the contractor to  
          bid on a state contract project.  Additionally, SCCA contends  
          that this bill could create new grounds for a contractor that  
          loses a bid to challenge the awarding of a contract.  The United  
          Contractors, representing union-affiliated contractors, is  
          concerned that this bill does not exempt in-office employees and  
          should only apply to employees at the job site and not to those  
          working in office positions.  Other opponents from the fencing,  
          building, and engineering contracting industries note that a  








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          contractor needs to know from the outset before hiring an  
          employee what his past criminal record looks like and this bill  
          appears to be a "full employment act for attorneys" that is  
          looking to ensnare contractors.   

           AUTHOR'S AMENDMENTS  .  The author proposes to narrow this bill to  
          apply to public works and transportation contracts; delete  
          Section 2, which would have applied to contracts for goods and  
          services; and clarify this bill as follows:

            SECTION 1. Section 10186 is added to the Public Contract Code,  
            to read:

            10186. (a) The state shall not accept a bid from a person or  
            entity  seeking a public works or transportation contract if  
            that person or entity   that  asks an applicant for employment   
            who will assist the person or entity in fulfilling the  
            contract with the state  to disclose information concerning the  
            conviction history of the applicant,  unless   until  the  employer   
             employing person or entity  has determined that the applicant  
            meets the minimum employment qualifications as stated in  the   
             any  notice issued for the position. This subdivision applies  
            to both oral and written disclosures and disclosures made on  
            an initial employment application.

            (b) This section shall not apply to a position for which an  
            employer  or government agency  is otherwise required by state  
            or federal law to conduct a conviction  or criminal  history  
            background check or to any contract position with a criminal  
            justice agency, as that term is defined in Section 13101 of  
            the Penal Code.

            (c) This section shall not be construed to prevent the state  
            from accepting a bid from a person or entity that conducts a  
            conviction history background check after complying with all  
            of the provisions of subdivision (a).

          In order to facilitate consideration of this bill by the  
          Assembly Appropriations Committee, these amendments will be  
          taken when the bill is heard there.

           PRIOR LEGISLATION  .

          1)AB 218 (Dickinson), Chapter 699, Statutes of 2013, prohibits,  
            beginning on July 1, 2014, a state or local agency from asking  








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            an employment applicant to disclose, orally or in writing,  
            information concerning his or her conviction history until the  
            agency has determined that the applicant meets the minimum  
            employment qualifications for the position.  Exempts from this  
            prohibition a position for which a state or local agency is  
            otherwise required by law to conduct a conviction history  
            background check, and any position within a criminal justice  
            agency, as specified. 

          2)AB 870 (Jones-Sawyer) of 2013, which included provisions  
            similar to this bill, would have applied to  any  application  
            for employment with an entity that submits a bid for a state  
            contract.  AB 870 was held on the Assembly Appropriations  
            Committee Suspense File.

           DOUBLE REFERRAL  .  This bill has been double referred.  It was  
          heard in the Assembly Judiciary Committee on January 14, 2014.


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          All of Us or None (sponsor)
          Legal Services for Prisoners with Children (sponsor)
          A New Way of Life Reentry Project
          Center for Young Women's Development
          Center on Juvenile and Criminal Justice
          Children's Defense Fund - California
          Drug Policy Alliance
          Lawyers' Committee for Civil Rights of the San Francisco Bay  
          Area
          National Employment Law Project
          The Greenlining Institute
          Time for Change Foundation

           Opposition 
           
          California Fence Contractors' Association
          California Chapter of the American Fence Association
          Engineering Contractors' Association
          Flasher Barricade Association
          Marin Builders Association
          Southern California Contractors Association
          United Contractors








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          Analysis Prepared by  :    Cassie Royce / A. & A.R. / (916)  
          319-3600