BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE DEBRA BOWEN, CHAIRWOMAN AB 1934 - Corbett Hearing Date: June 11, 2002 A As Amended: May 8, 2002 NON-FISCAL B 1 9 3 4 DESCRIPTION This bill requires telephone corporations to perform background checks on applicants for employment if that applicant would have access to the telephone network or the customer premises, and the applicant would perform activities involving installation, service, or repair of the telephone network. This bill requires telephone corporation contractors and vendors to perform background checks if their employees would have access to the telephone network or the customer premises, and the employee would perform activities involving installation, service, or repair of the telephone network. This bill wouldn't require background checks to be conducted for temporary workers performing emergency functions resulting from a natural disaster or an emergency threatening loss of service. BACKGROUND While current law requires a number of public agencies (such as schools) and private employers (such as in-home health care workers) to perform background checks on potential employees, it doesn't require telephone corporations to perform background checks on its potential employees. This bill applies to virtually every company offering telephone service, including long-distance carriers (e.g. AT&T), wireless carriers (e.g. Cingular), and new competitors (e.g. PacWest Communications). COMMENTS 1.What Kind of Background Check? The bill requires the telephone companies to perform background checks according to "current business practices." This allows each company to determine for itself what type of background check is most appropriate to conduct on its potential employees and contractors. While such flexibility may be beneficial, it's unclear what benefit is achieved by statutorily requiring companies to do a background check that they design for themselves. If the goal of this bill is to require telephone companies to do the same type of background check on people hired under a personal services contract, independent contractors and their employees, and vendors and their employees that the company does on its own employees, the author and committee may wish to consider adopting language to clarify that point. 2.What Happens After The Background Check? The bill is silent on what happens once a background check is performed. If the background check reveals a potential employee has a prior felony conviction, is the contractor barred from hiring that person? Can the person be hired, as long as the telephone company (in the case where a sub-contracting company is doing the hiring) is notified of the conviction? Must the result of the background check be shared with the telephone company? Must it be shared with the person or business that is having work done by the telephone company? Must it be shared with the person's co-workers? The author and committee may wish to consider what type of disclosure, if any, is appropriate. 3.Right to Privacy vs. Public Safety . Background checks are designed to protect the public from people who may cause harm to them. At the same time, a person who may have been convicted of a crime at some point in their past may not want to have that conviction preclude them from gaining employment, or may not want to have that conviction disclosed to employers, customers, and/or coworkers. This measure, as noted above, is unclear in terms of what information a background check is designed to reveal and who that information will be revealed to. Will, for example, this bill require a person's drunk driving conviction from 15 years earlier to be revealed to his or her potential employer/co-workers/customers? The author and committee may wish to consider whether requiring telephone companies to craft and conduct their own background checks on potential employees and contractors will deter otherwise qualified people from seeking employment and whether the "benefit" of the background check outweighs the potential "cost." 4.Penalties/Enforcement . The California Public Utilities Commission (CPUC) is responsible for enforcing the Public Utilities Code. However, penalties for violation of this portion of the code are not specified in existing law, nor does this bill create any penalties for violation of its provisions. The author and committee may wish to consider whether there should be a penalty imposed on a company that fails to conduct a background check on a potential employee pursuant to this bill. 5.Retroactive or Prospective? It's not clear whether this bill requires companies to perform the background checks envisioned by this bill on all of its existing employees or only on employees hired after the date this measure becomes effective. The author and committee may wish to consider clarifying this issue. 6.Double Referral . If approved, the Senate Rules Committee has requested that this be referred to the Senate Public Safety Committee. ASSEMBLY VOTES Assembly Floor (74-0) Assembly Labor and Employment Committee(7-0) Assembly Utilities and Commerce Committee(14-1) POSITIONS Sponsor: Communication Workers of America Support: California Public Utilities Commission Oppose: None on file Randy Chinn AB 1934 Analysis Hearing Date: June 11, 2002