BILL ANALYSIS AB 1934 Page 1 Date of Hearing: May 1, 2002 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Paul Koretz, Chair AB 1934 (Corbett) - As Amended: April 24, 2002 SUBJECT : Telephone corporations: background security checks. SUMMARY : Requires telephone companies to do background checks on applicants for employment, contractors and vendors. Specifically, this bill : 1)Requires telephone corporations to perform background checks of applicants for employment, consistent with their current business practices. The same type of check is also required for persons hired by a telephone corporation under a personal services contract, independent contractors and their employees, and vendors and their employees. 2)Except as otherwise provided by contract, the telephone corporation is not be responsible for administering or paying for the background checks of individuals who are not their employees. 3)The requirements don't apply to persons without direct contact with or access to the telephone network, the telephone corporation's central office, or customer premises. They also don't apply to temporary workers performing emergency functions to restore the network of a telephone corporation to its normal state in the event of a natural disaster or an emergency that threatens or results in the loss of service. EXISTING LAW permits telephone corporations to construct, own, control, operate and manage telephone lines and to provide telephone service for compensation in the state, subject to regulation by the Public Utilities Commission. Telephone corporations are not required to complete background checks on employment applicants, contractors or vendors. FISCAL EFFECT : This bill is keyed non-fiscal. COMMENTS : The author notes that our society is dependent on the integrity of our telecommunications system in many ways, including air traffic control, emergency services dispatch, military, business and personal communications. Disruptions in AB 1934 Page 2 the communications system can be devastating to a community. Furthermore, telephone company employees work around the clock, some in remote locations, interacting with contractors and vendors. It is sensible to take steps to reduce risks. According to the author, the telephone companies are routinely completing background checks on their applicants for employment, even though they are not required to do so by law. However, they are not exercising similar caution when it comes to contractors. This bill would require background checks on contractors and vendors similar to what is presently routine for employees. The bill as amended does not specify what the elements of the required background check shall be, only that they be in accordance with "current business practices." This leaves some room for uncertainty, potentially raises a question about changes in company policies in this area, and may result in freezing in place disparities from one company to the next. There appears to be a typographical error on page 3 of the bill, at line 15, where the word "assure" is probably meant to be "assume." REGISTERED SUPPORT / OPPOSITION : Support Communication Workers of America, District 9 (sponsor) Opposition None on file. Analysis Prepared by : Dennis M. Orfirer / L. & E. / (916) 319-2091