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