BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2396
          Author:   Bonta (D), et al.
          Amended:  8/19/14 in Senate
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEV. COMM.  :  5-3, 6/23/14
          AYES:  Lieu, Corbett, Hernandez, Hill, Torres
          NOES:  Wyland, Berryhill, Galgiani
          NO VOTE RECORDED:  Block

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  55-17, 5/23/14 - See last page for vote


           SUBJECT  :    Convictions:  expungement:  licenses

           SOURCE  :     Alameda County Board of Supervisors


           DIGEST  :    This bill 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          solely on a criminal conviction that has been withdrawn, set  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. 

           Senate Floor Amendments  of 8/19/14 clarify that the burden be on  
          the applicant, rather than the board, to provide a proof of  
          conviction dismissal.

           ANALYSIS  :    
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          Existing law:

          1. Allows a board to deny a license to an applicant if the  
             applicant has (a) been convicted of a crime, as specified;  
             (b) committed any act involving dishonesty, fraud, or deceit  
             with the intent to substantially benefit himself/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. 

          2. 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. 

          3. Specifies that no person shall be denied a license solely on  
             the basis that he/she has been convicted of a felony if  
             he/she has obtained a certificate of rehabilitation, as  
             specified, or that he/she has been convicted of a  
             misdemeanor, if he/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. 

          4. 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. 

          5. 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.  

          6. 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. 


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          This bill:

          1. Prohibits boards within the DCA from denying a professional  
             license based solely on a criminal conviction that has been  
             withdrawn, set aside, or dismissed by the court.

          2. Requires an applicant who has a conviction that has been  
             dismissed pursuant to specified provisions to provide proof  
             of the dismissal.

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

           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  

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          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.  

           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/her application  
          for a certificate or license should not be denied.         

           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,  

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          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 will 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 will 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 reason for denying a license.

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           Comments
           
          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 years, 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."    

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          According to the Senate Appropriations Committee, ongoing costs  
          of $390,000 per year to conduct investigations on license  
          applicants with expunged convictions by various licensing boards  
          (Special Fund).  DCA indicates that the majority of boards and  
          bureaus under its jurisdiction will have minor and absorbable  
          costs.  However, the following boards indicate costs will be  
          incurred as a result of increased workload to conduct  
          investigations on license applicants with expunged convictions:


           The Board of Behavioral Sciences estimates annual costs of  
            $227,195. (Behavioral Science Examiners Fund)


           The Board of Psychology estimates annual costs of $86,266.   

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            (Psychology Fund)


           The Board of Pharmacy estimates costs in 2015-16 of $56,000  
            and ongoing costs of $48,000.  (Pharmacy Board Contingent  
            Fund)

           The Dental Board estimates annual costs of $26,640.  (State  
            Dentistry Fund)

          As noted above, the boards that have reported increased costs as  
          a result of this bill are primarily those involved in certain  
          health-related professions.  Notably absent from this list is  
          the Medical Board, whose staff indicates that license denials  
          based on a prior conviction, even those that were dismissed, are  
          already thoroughly investigated.

           SUPPORT  :   (Verified  8/20/14)

          Alameda County Board of Supervisors (source) 
          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 
          SEIU Local 1000
          Women's Foundation

           OPPOSITION  :    (Verified  8/20/14)

          Board for Professional Engineers, Land Surveyors, and Geologists
          Board of Behavioral Sciences
          Board of Optometry
          Board of Psychology 
          Contractors State License Board 
          Respiratory Care Board of California

           ARGUMENTS IN SUPPORT  :    According to the bill's sponsor,  
          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  

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          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 writes, "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 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/her family, and otherwise successfully reintegrate into the  
          community."

          The Women's Foundation of California 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 us all."

           ARGUMENTS IN OPPOSITION  :    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 public protection, the  
          Board must examine each case individually to determine whether  
          these convictions remain relevant to the safe practice of  
          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  

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          convictions that have been dismissed."

           ASSEMBLY FLOOR  :  55-17, 5/23/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bloom, Bocanegra,  
            Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Ch�vez, Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman,  
            Fong, Fox, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray,  
            Hagman, Hall, Holden, Jones-Sawyer, Levine, Lowenthal,  
            Maienschein, Medina, Melendez, Mullin, Nazarian, Olsen, Pan,  
            Perea, John A. P�rez, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Skinner, Stone, Ting, Weber, Wieckowski, Williams, Yamada,  
            Atkins
          NOES:  Bigelow, Conway, Dahle, Donnelly, Beth Gaines, Grove,  
            Jones, Linder, Logue, Mansoor, Muratsuchi, Patterson,  
            Quirk-Silva, Salas, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Bonilla, Frazier, Gorell, Harkey, Roger  
            Hern�ndez, Nestande, V. Manuel P�rez, Vacancy


          MW:d  8/20/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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