BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1934
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1934 (Corbett)
          As Amended May 8, 2002
          Majority vote 

           UTILITIES AND COMMERCE     14-1 LABOR AND EMPLOYMENT     7-0    
           
           ----------------------------------------------------------------- 
          |Ayes:|Wright, Pescetti, Bill    |Ayes:|Kortez, Negrete McLeod,   |
          |     |Campbell,                 |     |Chu, Havice, Migden,      |
          |     |John Campbell,            |     |Shelley, Wyland           |
          |     |Canciamilla, Cardenas,    |     |                          |
          |     |Diaz, Horton, Kelley,     |     |                          |
          |     |Maddox, Nation, Papan,    |     |                          |
          |     |Reyes, Simitian           |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Leonard                   |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           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,  
            according to current business practices, on applicants for  
            employment in positions that would allow direct contact with  
            or access to the telephone network, the company's central  
            office, or customer premises, and that would require the  
            applicant to perform activities that involve the installation,  
            service, or repair of the telephone network or equipment.

          2)Requires an equivalent background check of persons hired by a  
            telephone corporation under a personal services contract,  
            independent contractors, vendors, and their employees for  
            persons who will have that same access and direct contact.

          3)Provides that a telephone corporation is not responsible for  
            administering or paying for the background checks on  
            individuals who are not applicants for employment of the  
            telephone corporation.

          4)Specifies that the background check requirements do not apply  
            to temporary workers performing emergency functions to restore  








                                                                  AB 1934
                                                                  Page  2

            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  allows telephone corporations to own, control,  
          operate and manage telephone lines, and to provide telephone  
          service for compensation in the state, subject to regulation by  
          the California Public Utilities Commission.  Telephone  
          corporations are not required to complete background checks on  
          employment applicants, contractors or vendors

           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  
          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.  But, they  
          are not exercising similar caution when it comes to contractors.  
           This bill would require background checks on contractors and  
          vendors similar to that which is current practice for employees.


           Analysis Prepared by  :    Paul Donahue / U. & C. / (916) 319-2083


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