BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2535
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          Date of Hearing:  April 22, 2014


                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                  AB 2535 (Grove) - As Introduced: February 21, 2014
                                           
          SUBJECT  :  EMPLOYMENT APPLICATIONS: CRIMINAL HISTORY

           KEY ISSUE  :  SHOULD STATE AGENCIES CONTRAVENE ANTI-DISCRIMINATION  
          LAW AND EXISTING STATE PUBLIC POLICY BY REQUIRING ALL JOB  
          APPLICANTS TO AGENCIES TO DECLARE WHETHER THEY HAVE ANY PAST  
          MISDEMEANOR OR FELONY CONVICTIONS?  

                                      SYNOPSIS
           
           Existing law, pursuant to AB 218 (Dickinson) of 2013, bars state  
          agencies from asking an applicant for employment to disclose  
          criminal conviction history until the agency has determined the  
          applicant meets the minimum employment qualifications.  After  
          that initial stage, a state or local agency may inquire about an  
          applicant's conviction history.  This bill would transform that  
          flexible permission into regulatory mandate; once an agency  
          determines that an applicant meets the minimum employment  
          requirements, the agency would be required to determine whether  
          an applicant has been convicted of a misdemeanor or felony.   
          According to the author, taxpayers have a reasonable expectation  
          that employees hired by the state to carry out the business of  
          the people are properly suited for their roles, which  
          necessarily requires that all applicants should be obligated to  
          disclose any criminal history.  Opponents argue that the bill is  
          unnecessary, as state agencies already have the discretion to  
          inquire about a job applicant's criminal history, and would  
          detrimentally weaken AB 218.  Moreover, opponents argue that the  
          bill appears to conflict with existing anti-discrimination laws  
          prohibiting inquiries from employers about convictions that have  
          been expunged, sealed, or dismissed.  Opponents further contend  
          that requiring self-disclosure of criminal history information  
          is a disfavored practice because of the high frequency of  
          mistakes that are common in answering this type of question.  

          SUMMARY  :  Mandates specified hiring practices by state agencies.  
           Specifically,  this bill  provides that after a state agency  
          determines that an applicant for employment meets the minimum  
          employment requirements, the agency must require the applicant  








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          to disclose in writing whether or not the applicant has ever  
          been convicted by any court of a misdemeanor or felony.  

           EXISTING LAW  :  

           1)Provides, effective July 1, 2014, that a state or local agency  
            shall not ask an applicant for employment to disclose, orally  
            or in writing, information concerning the conviction history  
            of the applicant, including any inquiry about conviction  
            history on any employment application, until the agency has  
            determined the applicant meets the minimum employment  
            qualifications, as stated in any notice issued for the  
            position.  This section does not apply to a position for which  
            a state or local agency is otherwise required by law to  
            conduct a conviction history background check, to any position  
            within a criminal justice agency, as that term is defined in  
            Section 13101 of the Penal Code, or to any individual working  
            on a temporary or permanent basis for a criminal justice  
            agency on a contract basis or on loan from another  
            governmental entity.  This section does not prevent a state or  
            local agency from conducting a conviction history background  
            check after complying with the foregoing provisions.  (Labor  
            Code section 432.9.)

          2)Provides pursuant to federal anti-discrimination law that a  
            facially neutral hiring policy excluding all applicants with  
            conviction records will disproportionately impact persons of  
            color, and, therefore, may violate Title VII of the Civil  
            Rights Act of 1964.  Such a policy will pass muster if it is  
            job-related and consistent with business necessity.  (See EEOC  
            Enforcement Guidance, "Consideration of Arrest and Conviction  
            Records in Employment Decisions Under Title VII of the Civil  
            Rights Act of 1964" (2012)(available at  
            http://eeoc.gov/laws/guidance/arrest_conviction.cfm).)

          1)Finds and declares that reducing barriers to employment for  
            people who have previously offended, and decreasing  
            unemployment in communities with concentrated numbers of  
            people who have previously offended, are matters of statewide  
            concern.  Further finds and declares that, consistent with the  
            2011 Realignment Legislation addressing public safety,  
            increasing employment opportunities for people who have  
            previously offended will reduce recidivism and improve  
            economic stability in our communities.  (Ch. 699, Stats.  
            2013.)








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          3)Prohibits any employer from inquiring into or requiring  
            disclosure of a job applicant's arrests, detentions that did  
            not result in conviction, or convictions that have been  
            judicially dismissed or ordered sealed pursuant to law.   
            (Labor Code section 432.7.)

          4)State law likewise prohibits race discrimination in employment  
            and provides that a violation may be found where an employment  
            policy or practice has a disproportionate impact on a racial  
            group unless the policy or practice is job related and  
            consistent with business necessity.  (Government Code section  
            12926 et seq.)

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

          COMMENTS  :  In describing the purpose of the bill, the author  
          states: 

               Current law does not require an applicant to a state  
               position to disclose their criminal history.  Current law  
               also does not require the state to ask for this  
               information.  This can and has resulted in convicted  
               criminals being hired to work for the state, when if their  
               criminal history was known, they would not have been hired.
                         
               In 2013 the High-Speed Rail Authority hired a woman who was  
               convicted of embezzling thousands of dollars while  
               previously working at the Department of Child Support  
               Services under a different name.  She never disclosed her  
               criminal history, HSRA never inquired, and she was hired.   
               She was eventually let go for not disclosing her criminal  
               history, but by law she was not required to do so.

           A Substantial Population Of People With Criminal Records May Be  
          Affected By This Bill.   According to the National Employment Law  
          Project (NELP), an estimated 1 in 4 U.S. adults has a criminal  
          record that would appear on a routine background check.  (See  
          "65 Million Need Not Apply: The Case for Reforming Criminal  
          Background Checks," at footnote 2 (available at  
          http://www.nelp.org/page//SCLP/2011/65_  
          Million_Need_Not_Apply.pdf?nocdn=1 ).)  Using the same  
          methodology outlined in this report, NELP estimates that there  
          are approximately 7 million Californian adults with criminal  
          records.  According to supporters, research has demonstrated  








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          that employment is a key factor in reducing recidivism and  
          ensuring positive public safety outcomes.  Among other examples,  
          a recent study of former prisoners in Ohio, Texas, and Illinois  
          researchers found that inmates who held a job while in prison  
          and those who participated in job-training programs while  
          incarcerated had better employment outcomes after release.  In  
          addition, inmates who were employed and earning higher wages  
          after release were less likely to return to prison the first  
          year out.  (Christy Visher, Sara Debus & Jennifer Yahner,  
          Employment after Prison: A Longitudinal Study of Releases in  
          Three States, Justice Policy Center Research Brief (Oct.  
          2008)(available at http://www.urban  
          .org/UploadedPDF/411778_employment_after_prison .pdf).)    

           The Bill's Mandate Appears To Be Contrary To Employment  
          Discrimination Law.   The U.S. Equal Employment Opportunity  
          Commission (EEOC) is a federal body responsible for enforcing  
          federal employment laws that make it illegal to discriminate  
          against a job applicant or an employee.  In April 2012 the  
          Commission published Enforcement Guidance citing to a number of  
          national studies concluding that there are observable racial  
          disparities in the criminal justice system.  Because criminal  
          background checks may have a disparate impact on people of  
          color, the EEOC warned that federal employment discrimination  
          law prohibits no-hire policies against people with criminal  
          records.  An employer's consideration of a conviction history  
          may pass muster if an individualized assessment is made, taking  
          into account whether the conviction is job-related and the time  
          passed since the conviction.  An employer therefore risks  
          violating federal civil rights laws when it cannot articulate an  
          objective and well-supported reason why the use of a criminal  
          record to disqualify an applicant is related to the functions of  
          the job.  Thus, removing the inquiry about conviction history  
          from the initial job application promotes a case-by-case  
          assessment of the applicant, which is more consistent with the  
          law.  

          In keeping with the policy embodied by last year's AB 218  
          (Dickinson), the EEOC guidance states: "As a best practice, and  
          consistent with applicable laws, the Commission recommends that  
          employers not ask about convictions on job applications and  
          that, if and when they make such inquiries, the inquiries be  
          limited to convictions for which exclusion would be job related  
          for the position in question and consistent with business  
          necessity."  (EEOC Enforcement Guidance, No. 915.002 (April 25,  








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          2012).)
           
          This Bill Appears To Be Inconsistent With Existing State Public  
          Policy Regarding Criminal Records And Employment.   Existing  
          California public policy finds and declares that reducing  
          barriers to employment for people who have previously offended,  
          and decreasing unemployment in communities with concentrated  
          numbers of people who have previously offended, are matters of  
          statewide concern.  It further finds and declares that,  
          consistent with the 2011 Realignment Legislation addressing  
          public safety, increasing employment opportunities for people  
          who have previously offended will reduce recidivism and improve  
          economic stability in our communities.  (Ch. 699, Stats. 2013.)   
          Contrary to this policy, however, state agencies under this bill  
          would be automatically required to inquire about the criminal  
          convictions of job applicants - a practice that studies have  
          shown may run the serious risk of disadvantaging people of  
          color.  Two prominent studies have found that a criminal record  
          reduces the likelihood of a job callback or offer by about 50  
          percent (28 percent vs. 15 percent).  This criminal record  
          "penalty" was substantially greater for African Americans and  
          Latinos in the test pool.  (Devah Pager, "The Mark of a Criminal  
          Record," American Journal of Sociology 108.5 (2003) at  
          957-60(available at http://www.princeton.edu/~pager/pager_ajs  
          .pdf); Devah Pager, Bruce Western, & Bart Bonikowski,  
          "Discrimination in a Low Wage Labor Market: A Field Experiment,"  
          American Sociological Review 74 (October, 2009) at 777-779  
          (available at http://www.princeton.edu/  
          ~pager/ASR_pager_etal09.pdf).) 

           The Bill Appears To Be Contrary To Existing Law.   The bill, as  
          it is currently written, appears to contradict the terms of an  
          existing provision of the Labor Code.  Labor Code Section 432.7  
          reads, in relevant part:

               No employer, whether a public agency or private individual  
               or corporation, shall ask an applicant for employment to  
               disclose, through any written form or verbally, information  
               concerning . . . a conviction that has been judicially  
               dismissed or ordered sealed pursuant to law?
           
           This bill by contrast would flatly mandate that state agencies  
          require job applicants to disclose, in writing, whether or not  
          the applicant has been convicted of any misdemeanor or a felony.  
           There are no exceptions made in the bill and, by the most  








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          reasonable construction of its terms, it would appear to require  
          disclosure of convictions that are protected from disclosure  
          under Section 432.7.
           
          ARGUMENTS IN OPPOSITION  :  Groups in opposition to the bill state  
          that the bill's mandate is unnecessary, will likely lead to  
          detrimental unintended consequences, and conflicts with state  
          law and U.S. Equal Employment Opportunity Commission guidance.   
          The American Civil Liberties Union of California states:

               State and local agency employers already have the  
               discretion to inquire about a job applicant's criminal  
               history after the applicant has been deemed qualified. The  
               bill's mandate is unnecessary.

               In addition, the bill's voluntary self-disclosure  
               requirement may have unintended consequences.  
               Self-disclosure of conviction history information is a  
               disfavored practice because it is common for people to  
               mistakenly report information due to misunderstanding the  
               outcome of the criminal justice process or being unclear  
               about the items that are reportable. Self-reported  
               information that is inaccurate has the appearance of lying  
               or may reveal information that should not be shared. If a  
               state agency is seeking criminal history information, it  
               would be more accurate for the agency to obtain the  
               information officially.

          The Women's Foundation of California states in relevant part:

               We actively supported Assembly Member Dickinson's bill (AB  
               218) last year that removed conviction history from initial  
               applications for public employment. AB 2535 weakens AB 218  
               and this concerns us greatly.

               AB 2535 would require an applicant to write down their  
               criminal conviction history. We do not understand why this  
               is necessary. A state agency already has the capacity and  
               the right to do a background check on anyone prior to  
               offering a person a job. By requiring a person to write  
               down their own criminal conviction history, there is a  
               great possibility of error. If a person fails to accurately  
               write down their conviction history, would it be assumed  
               they were lying and the job offer withdrawn? If the state  
               agency is seeking criminal history information, it would be  








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               more accurate for the agency to obtain the information  
               officially rather than asking for self-disclosure that may  
               be inadvertently misreported. Self-reported information  
               that is inaccurate has the appearance of lying or may  
               reveal information that should not be shared.

          Several groups in opposition also state that the bill may  
          conflict with existing law, citing California Labor Code Section  
          432.7, which bars employers (public and private) from inquiring  
          about convictions that have been expunged, sealed, or dismissed.  
           

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 

           None on file

           Opposition 

           American Civil Liberties Union of California
          California Public Defenders Association
          East Bay Community Law Center
          Legal Services for Prisoners with Children
          National Employment Law Project
          The Women's Foundation of California
          Root & Rebound: Reentry Advocates
           
          Analysis Prepared by  :  Kevin G. Baker and Drew Williams / JUD. /  
          (916) 319-2334