BILL ANALYSIS                                                                                                                                                                                                                   1
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             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
                                                                       
            
                                                                       
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                                   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