BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:June 23, 2014         |Bill No:AB                         |
        |                                   |2396                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                          Bill No:        AB 2396Author:Bonta
                       As Amended:May 15, 2014  Fiscal:  Yes   

        
        SUBJECT:  Convictions: expungement: licenses.
        
        SUMMARY:  Prohibits boards within the Department of Consumer Affairs  
        (DCA) from denying a professional license based solely on a criminal  
        conviction that has been withdrawn, set aside, or dismissed by the  
        court.  

        Existing law:
        
        1)Allows a board to deny a license to an applicant if the applicant  
          has done one of the following: (Business & Professions Code (BPC) �  
          Section 480(a))  

           a)   Been convicted of a crime, as specified;

           b)   Committed any act involving dishonesty, fraud, or deceit with  
             the intent to substantially benefit himself or herself or  
             another, or substantially injure another; or,

           c)   Committed any act that if done by a licentiate of the business  
             or profession in question, would be grounds for suspension or  
             revocation of license. 

        1)Authorizes a board to deny a license, as specified, only if a crime  
          or act is substantially related to the qualifications, functions, or  
          duties of the business or profession for which an application is  
          made. (BPC � 480(a)(3)(B))

        2)Specifies that no person shall be denied a license solely on the  
          basis that he or she has been convicted of a felony if he or she has  





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          obtained a certificate of rehabilitation, as specified, or that he  
          or she has been convicted of a misdemeanor, if he or she has met all  
          applicable requirements of the criteria of rehabilitation developed  
          by the board to evaluate the rehabilitation of a person when  
          considering the denial of a license, as specified. 
        (BPC � 480(b))

        3)Requires each board to develop criteria to aid it when considering  
          the denial, suspension or revocation of a license, in order to  
          determine whether a crime or act is substantially related to the  
          qualifications, functions, or duties of the business or profession  
          it regulates. (BPC � 481)



        4)Requires each board, as specified, to develop criteria to evaluate  
          the rehabilitation of a person when considering the denial, or  
          suspension of revocation of a license, by the board, as specified.   
          (BPC � 482)

        5)Requires a board that has denied an application for a license to  
          include a copy of the criteria relating to rehabilitation, as  
          specified, and to inform the applicant of the earliest date at which  
          the applicant may reapply for licensure and that all competent  
          evidence of rehabilitation presented will be considered upon  
          reapplication. (BPC � 486).

        6)Provides that in any case, except as specified, in which a  
          defendant has fulfilled the condition of probation, or has been  
          discharged prior to termination of probation, or in any case in  
          which a court determines a person should be granted relief in  
          the interest of justice, the court may withdraw or set aside a  
          guilty plea and shall dismiss the accusations or information  
          against the defendant and release the defendant from all  
          penalties and disabilities resulting from the offense of which  
          he or she has been convicted and inform them of their right to  
          petition for a certificate of rehabilitation and pardon.  (Penal  
          Code Section (PC) � 1203.4)

        7)Provides that if the court dismisses the accusations of  
          information against the defendant, it does not relieve him or  
          her of the obligation to disclose the conviction in an  
          application for licensure for any state or local agency.  (Id.)

        8)Provides that in a case in which a defendant who was convicted  
          of a misdemeanor and not granted probation, or convicted of an  





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          infraction, and who has fully complied with and performed the  
          sentence of the court, is not serving a sentence for any offense  
          and is not under charge of commission of any crime, and if one  
          year has elapsed since the date of judgment, the court may  
          withdraw or set aside the guilty plea and dismiss the accusatory  
          pleading against the defendant, who shall thereafter be released  
          from all penalties and disabilities resulting from the offense  
          of which he or she was convicted, except as specified.  (PC �  
          1203.4a(a))

        9)Provides that if a defendant does not satisfy all of the above  
          conditions but has fully complied with and performed the  
          sentence of the court, is not serving a sentence for any  
          offense, and is not under charge of commission of any crime, and  
          one year has lapsed since the judgment, the court may, in its  
          discretion and in the interests of justice, withdraw or set  
          aside and dismiss the conviction.  (PC � 1203.4a(b))

        10)Provides that if a defendant is sentenced to county jail  
          pursuant to criminal justice realignment and is not under  
          mandatory supervision and not serving a sentence for, on  
          probation for, or charged with the commission of any offense,  
          and at least one year has elapsed since the judgment, the court,  
          in its discretion and in the interests of justice, may withdraw  
          or set aside the guilty plea and dismiss the accusatory pleading  
          against the defendant, who shall thereafter be released from all  
          penalties and disabilities resulting from the offense of which  
          he or she was convicted, except as specified.  
        (PC � 1203.41)  

        


        This bill:  Prohibits boards and bureaus within DCA from denying a  
        professional license based solely on a prior conviction that was  
        dismissed by a court.  

        
        FISCAL EFFECT:  This measure is keyed "fiscal" by Legislative Counsel.  
         According to the Assembly Appropriations Committee, this bill would  
        impose minor and absorbable costs to each of the affected boards.

        
        COMMENTS:
        
        1. Purpose.  This bill is sponsored by the  Alameda County Board of  





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           Supervisors  .  According to the Author, "[This bill] is designed to  
           reduce employment barriers for people with criminal records who  
           have been rehabilitated.  [This bill] allows them the opportunity  
           to pursue meaningful employment and work towards entering the  
           middle class, instead of struggling in low-wage jobs or returning  
           to crime.

        "In many cases, individuals seeking a professional license struggle to  
           achieve self-sufficiency because of consideration of a dismissed  
           record that is irrelevant to their ability to perform the job.   
           Under current law, even applicants who are presumed to be  
           rehabilitated by the court system may still have their license  
           denied.  

        "According to a 2007 report prepared by the Board of Barbering and  
           Cosmetology, of the 501 applicants denied by the Board over the  
           preceding five hears, all 501 applicants possessed criminal  
           records.  Only 33 applicants were determined to have produced  
           evidence of rehabilitation.  [This bill] will eliminate this  
           fundamental unfairness within the law.  In addition, [this bill]  
           will help address the shortage of qualified labor in many fields,  
           increase employment in those fields, and spur economic growth."    

        2. Criminal Convictions: What Barriers Do They Create? According to  
           the National Institute of Justice Journal, nearly one-third of  
           American adults have been arrested by age 23.  A criminal record  
           keeps many people from obtaining employment, even if they have  
           completed their sentences, are qualified for the job, and are  
           unlikely to reoffend.  In addition, research shows that employment  
           is the single most effective factor in reducing offending rates.   
           In California, nearly one in five California adults has a criminal  
           record, and the state is home to millions of people with arrest,  
           prosecution, and conviction records.  While most have successfully  
           completed their sentences, they still continue to experience  
           barriers to employment as a result of their criminal records.

        A person's criminal record may range from a one-time arrest that was  
           never prosecuted, to lengthy and serious criminal histories.   
           Criminal background checks are common among employers, and 26  
           boards under DCA require criminal background checks.  As a result,  
           many individuals may be affected by old convictions and arrests,  
           even though research indicates that a person, after a limited  
           period of time, is at no greater risk of being arrested than a  
           counterpart in the general population.  In addition to facing bias  
           from potential employers, an individual may also be denied a  
           professional license based on a past conviction, even if that  





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           conviction was dismissed by the court.  Licensing boards under DCA  
           are authorized by statute to deny a license based on dismissed  
           convictions.

        3. Expungement and Dismissal of Prior Convictions. Penal Code Sections  
           1203.4, 1203.4a, and 1203.41 provide expungement relief to an  
           individual who has committed certain types of crimes.  This relief  
           is not available to persons who were sentenced to prison, or who  
           have committed certain sex crimes or other offenses, as specified.   
           While most major felonies result in a prison sentence, not all  
           felonies require a defendant to serve a prison sentence.  As a  
           result, only persons who were convicted of misdemeanors or felonies  
           who were sentenced to probation, which may include jail time, or  
           who were convicted of misdemeanors or infractions and were not  
           sentenced to probation, may have their conviction dismissed. 

        In order to obtain a dismissal, a person must successfully serve and  
           complete all the terms of their sentence, including paying any  
           restitution and fines, and not be charged with any other offenses.   
           In addition, a person must file a petition with the court, which  
           may include information about the offense, letters of  
           recommendation, proof of compliance with the terms of probation,  
           and any other materials that may assist the court in making a  
           decision.  The petition must also be served to the applicable  
           District or City Attorney, who may object to the petition and  
           provide evidence to the court that the dismissal should not be  
           granted.  The court will decide on the petition, and if the  
           petition is denied, an individual may file for reconsideration or  
           refile the petition at a later date.  As a result, this "set aside  
           and dismissal" remedy is limited both in terms of scope and  
           application.  

        4. License Denials: Appeal Process.  Over half of the boards under DCA  
           require criminal history information, and other boards require  
           applicants to self-report any criminal history.  While criminal  
           background checks are supposed to show whether a conviction has  
           been dismissed, this does not always occur.  If a board denies a  
           license, it is required to notify the applicant by letter, which  
           provides the applicant with the specific reasons why the  
           application was denied.  An applicant has the right to appeal the  
           denial of the application by requesting a statement of issues  
           hearing, and must submit a request for that hearing within 60 days  
           of the date of the letter.  Once a written request for a hearing is  
           made, it is forwarded to the Attorney General's office.  At the  
           hearing, an applicant may present evidence and witnesses to prove  
           that his or her application for a certificate or license should not  





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           be denied.         
             
        5. Professional Boards Discretion When Denying a License.  Existing  
           law authorizes each board to deny a professional license based on  
           an applicant's past conviction, "act involving dishonest, fraud, or  
           deceit," or other act that could subject a licensee to license  
           suspension or revocation, if that conviction or act is  
           "substantially related" to the qualifications, functions, or duties  
           of the business or profession for which application is made.  This  
           discretion does not distinguish between types of convictions or  
           types of dishonest acts, and these terms are so broad that many  
           convictions or acts could be determined by a board to be cause for  
           denial of a license.  In addition, there are no other  
           qualifications, such as how long ago a person was convicted or had  
           committed a bad act, or whether a board has to take that length of  
           time into consideration.  It is up to each board to determine what  
           they consider as criteria for license denial or rehabilitation. 

        There is no data that tracks how many people are denied professional  
           licenses based on a past conviction, how many of those denials were  
           based on convictions that were dismissed, or how many denials based  
           on dismissed convictions were successfully appealed.  However,  
           according to the  Lawyers' Committee for Civil Rights of the San  
           Francisco Bay Area  , one non-profit organization that hosts  
           expungement clinics and assist individuals with prior convictions  
           to obtain a license or appeal a license denial, it has seen at  
           least 20 to 30 cases where licenses were denied by a professional  
           board based on a conviction that was dismissed.  According to the  
           Lawyer's Committee, once they got involved in an appeal, they  
           experienced an extremely high level of success, which makes one  
           question why the license was denied in the first place and whether  
           these decisions are arbitrary or fraught with too much discretion. 
         
        License denials are generally not subject to review unless there is  
           alleged misconduct or the denial is being appealed.  In addition,  
           while some may argue that the appeals process allows the system to  
           correct itself many applicants may lack the knowledge or have  
           access to limited legal resources to help them pursue an appeal of  
           a denial.  
          
          It should be noted that this bill would not affect a board's ability  
          to deny a license based on other convictions or arrests that are  
          part of a person's criminal record, or other acts that a person has  
          committed.  This bill would only prevent boards from presuming that  
          an applicant has not been rehabilitated based only on a conviction  
          that has been dismissed by a court, and using that as the sole  





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          reason for denying a license.          
          
        6. Related Legislation This Year.   AB 1702  (Maienschein) specifies  
           that an individual who has satisfied the requirements for licensure  
           while incarcerated and who applies for licensure after being  
           released from incarceration shall not have his or her application  
           delayed or denied solely based on the prior incarceration.  The  
           bill exempts the Board of Chiropractic Examiners (BCE) from these  
           requirements. (  Status  : This bill is pending in the Senate Committee  
           on Business, Professions, and Economic Development.)

         SB 1384  (Mitchell) would presume, for purposes of determining whether  
           to deny, or suspend or revoke a license for a certified nurse  
           assistant, an individual to be successfully rehabilitated if he or  
           she has completed any probation, mandatory supervision, or parole,  
           if applicable, and at least three years have elapsed within a  
           subsequent conviction after final discharge or release from any  
           term of imprisonment.  (  Status  : This bill is awaiting referral at  
           the Assembly Desk.)

        7. Previous Legislation.  AB 218  (Dickinson, Chapter 699, Statutes of  
           2013) prohibits a state or local agency from asking an applicant to  
           disclose information regarding a criminal conviction, except as  
           specified, until the agency has determined the applicant meets the  
           minimum employment qualifications for the position.

         AB 651  (Bradford, Chapter 787, Statutes of 2013) authorizes a court,  
           in its discretion and in the interests of justice, to grant  
           expungement relief for a conviction of a petitioner sentenced to  
           county jail pursuant to criminal justice realignment if specified  
           conditions are satisfied.

         SB 1077  (Price, Chapter 291, Statutes of 2011) requires the Director  
           of DCA when considering the granting of a probationary license,  
           registration, certificate, or permit, to request that an applicant  
           with a dismissed conviction provide proof of that dismissal, and  
           requires that special consideration be given to applicants with  
           dismissed, and that the Director take into account any other  
           reasonable documents or individual character references provided by  
           the applicant.

         

        SB 2017  (Vargas, Chapter 444, Statutes of 2011) provides clarification  
           on the issuance of mortgage loan originator licenses with the  
           existence of expunged or pardoned felony convictions.





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         AB 2423  (Bass, Chapter 675, Statutes of 2008) requires the Veterinary  
           Medical Board, Structural Pest Control Board, Board of Vocational  
           Nursing and Psychiatric Technicians of the State of California,  
           State Board of Barbering and Cosmetology, and the Director of DCA,  
           when considering the issuance or granting of a probationary license  
           or registration, to request that an applicant with a dismissed  
           conviction provide proof of that dismissal and would require that  
           special consideration be given to applicants whose convictions have  
           been dismissed, as specified.

         AB 1025  (Bass) of 2007 would have provided that an applicant for a  
           license with a board under DCA may not be denied licensure or have  
           his or her license suspended or revoked solely on the basis that he  
           or she has been convicted of a felony or misdemeanor if that  
           conviction was dismissed, unless the board provides substantial  
           evidence, as specified, justifying the denial, suspension, or  
           revocation.  (  Status:  This bill was vetoed by the Governor.)

           In his veto message, Governor Schwarzenegger wrote, "AB 1025  
           creates a presumption of rehabilitation based on an expungement of  
           a conviction. This is problematic for two reasons. First,  
           expungement is not intended to be indicative of rehabilitation.  
           Second, this provision places the burden of proof on state  
           licensing bodies to show than an individual is not rehabilitated,  
           which would result in increased litigation and extensive  
           investigations."

        8. Arguments in Support.  According to the sponsors,  Alameda County  
           Board of Supervisors  , "In private industries, applicants are not  
           required to disclose an expunged record as part of the hiring  
           process.  [This bill] similarly creates the presumption of  
           rehabilitation (only for an expunged conviction) in determining  
           licensing for professions such as cosmetologists, pharmacists, and  
           optometrists under [DCA].  [This bill] would increase the number of  
           people who are able to obtain livable wage employment, allowing  
           them to more successfully raise their families and contribute to  
           their communities.  It would also expand the pool of qualified  
           candidates for jobs in the County."

         The Lawyers' Committee for Civil Rights of the San Francisco Bay Area   
           also writes in support, "By disregarding the 'set aside and  
           dismissal' remedy, Section 480 in its current form undermines the  
           state's efforts to encourage individuals to demonstrate  
           rehabilitation.  Indeed, the majority of our clients seeking  
           licensure with [DCA] have been denied despite having attained  





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           dismissals of their convictions.  Denying a license to an applicant  
           on the sole basis of a dismissed conviction unnecessarily limits  
           the applicant's ability to find gainful employment, provide for his  
           or her family, and otherwise successfully reintegrate into the  
           community."

         The Women's Foundation of California  also writes, "By receiving a  
           dismissal of a conviction, a process that includes proof of  
           rehabilitation, a qualified applicant will be able to receive a  
           license and will be more able to achieve economic security without  
           resorting to criminal behavior.  Providing a level playing field  
           where all qualified Californians can have the ability to get a job  
           is in the interest of all of us."

        9. Arguments in Opposition.  Several boards, including the  Board of  
           Psychology,  underscores, "this bill would have a fiscal impact on  
           the Board through increased utilization of investigators, the  
           Attorney General's Office, and staff resources.  This Board also  
           has concerns that this bill would impede the Board's ability to  
           protect consumers of psychological services in the State of  
           California."

           According to the  Board of Behavioral Sciences  , "The Board has seen  
           cases of applications having multiple DUI, theft, and assault  
           charges which occurred over the past 5-10 years, all of which have  
           been expunged.  To ensure the public protection, the Board must  
           examine each case individually to determine whether these  
           convictions remain relevant to the safe practice to psychotherapy."  


            The Respiratory Care Board of California  writes, "dismissal of a  
           conviction is not indicative of rehabilitation, although AB 2396  
           creates a presumption of such and could result in a risk to  
           consumers by prohibiting the denial of a license based on  
           conviction that have been dismissed." 

        
        SUPPORT AND OPPOSITION:
        
         Support:  

        Alameda County (Sponsor) 
        California Catholic Conference, Inc.
        Lawyers' Committee for Civil Rights of the San Francisco Bay Area 
        Legal Services for Prisoners with Children
        National Employment Law Project 





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        Women's Foundation 

         Opposition:  

        Board of Psychology 
        Board of Behavioral Sciences
        Contractors State License Board 
        Respiratory Care Board of California



        Consultant:Mark Mendoza