BILL ANALYSIS                                                                                                                                                                                                    







                          SENATE COMMITTEE ON Public Safety
                             Senator Bruce McPherson, Chair     A
                                2003-2004 Regular Session       B

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          AB 2858 (Ridley-Thomas)                               8
          As Amended June 28, 2004 
          Hearing date:  June 29, 2004
          Public Utilities Code and Uncodified Law
          MK:br

             PASSENGER STATE CORPORATIONS/CHARTER-PARTY PASSENGER CARRIERS

                 DRIVERS AND SPECIFIED EMPLOYEES - BACKGROUND CHECKS
                                           
                                       HISTORY

          Source:  City of Los Angeles

          Prior Legislation: AB 1642 (Ridley-Thomas) - 2004; in Senate  
                       Energy, Utilities & Communications Committee
                       AB 1645 (Ridley-Thomas) - 2003; held in Assembly  
                       Appropriations Committee

          Support: California Airport Coalition; League of California  
                   Cities; Los Angeles World Airports; Port of Oakland;  
                   California Bus Association

          Opposition:Greater California Livery Association; Public  
                   Utilities Commission; California Teamsters Public  
                   Affairs Council (unless amended)

          Assembly Floor Vote:  Ayes  48 - Noes  27


                                        KEY ISSUES
           
          SHOULD DRIVERS AND KEY EMPLOYEES OF PASSENGER STAGE CORPORATIONS AND  




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          CHARTER-PARTY CARRIERS BE REQUIRED TO OBTAIN SECURITY CLEARANCES AS  
          SPECIFIED IN THIS BILL?

          SHOULD PERSONS CONVICTED OF SPECIFIED CRIMES BE PROHIBITED FROM  
          WORKING AS DRIVERS FOR PASSENGER STAGE CORPORATIONS OR CHARTER-PARTY  
          CARRIERS?


                                       PURPOSE
          
          The purpose of this bill is to require that drivers and key  
          employees of passenger stage corporations and charter-party  
          carriers have obtained security clearances and to provide  
          uniformity in credentialing among charter-party carriers, as  
          specified.

           Existing law  requires that the California Public Utilities  
          Commission (CPUC) impose specified obligations on passenger  
          state corporations and charter-party carriers, vehicles which  
          transport passengers on a charter, or pre-arranged, basis such  
          as limousines and airport shuttles.  Those obligations include  
          maintaining safe vehicles, ensuring driver fitness, and  
          maintaining adequate workers compensation insurance.  (Public  
          Utilities Code  1031 et seq. and 5381 et seq.)

           This bill  does the following:

           Enacts uncodified language that it is the intent of the  
            Legislature to reaffirm its commitment to homeland security as  
            it relates to passenger stage corporations and charter-party  
            carriers of passengers and their employees who drive  
            passengers to and from airports.  The purpose of this act is  
            to ensure that procedures and regulations are in place  
            consistent with the airport security programs operated by  
            airports in this state, to assure the traveling public that  
            drivers or key employees of privately engaged carriers have  
            been through security clearances, and to provide uniformity in  
            credentialing among charter-party carriers of passengers.

           Requires passenger stage corporations and charter-party  




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            carriers who transport passengers to or from airports and  
            specified railroad terminals to also certify that its drivers  
            and "key employees" have successfully completed a criminal  
            history background check.

           Defines "key employees" as owners, partners, or officers and  
            directors.

           Requires that the CPUC adopt regulations implementing a  
            criminal background check program which shall include a  
            fingerprint-based criminal background investigation to uncover  
            prior convictions for the following criminal acts:  unlawful  
            transportation of hazardous materials; carrying weapons or  
            explosives aboard an aircraft; unlawful entry into an aircraft  
            or airport area; destruction of an aircraft or aircraft  
            facility; violence at international airports; unlawful  
            possession or distribution of explosives or assault weapons;  
            felony arson; and hate crimes.

           Provides that a driver or other key employee who has been  
            convicted of committing any of these crimes may not be  
            employed by the charter-party carrier in that capacity, with  
            this requirement applicable to drivers and key employees  
            employed on or after January 1, 2003.

           Provides that employees who pass the background check shall be  
            issued an appropriate credential by the CPUC, with such  
            credentials subject to inspection by airport law enforcement  
            officers.

           Requires the fingerprint-based background check to be  
            performed by the Department of Justice.

           Makes violations of this provision subject to civil penalties  
            up to $2,000 with repeated violations grounds for revocation  
            of the carrier's CPUC operating permit.

           Provides that any person authorized to operate school activity  
            busses is exempt from the credentialing requirements.





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           Provides for passenger stage corporations and charter-party  
            carriers to pay fees to the CPUC to cover the cost of the  
            program.

           Provides that this bill shall become operative on July 1,  
            2005.

                                      COMMENTS

          1.  Need for This Bill

           Background from the author includes the following:

              Following the 9/11 terrorist incidents, Los Angeles  
              International Airport (LAX) was closed down for  
              several days.  When LAX initially reopened only bus,  
              van, taxi and limousine drivers were allowed to drive  
              into the Central Terminal Area (CTA) for several  
              weeks.  None of the bus, van or limousine drivers was  
              subject to a criminal background check, even though  
              they were the only vehicles allowed access to the CTA.  
               Airport police requested that legislation be sought  
              to require criminal background checks of bus, van and  
              limousine drivers.  This bill would require the PUC to  
              adopt regulations establishing standards and  
              procedures to review the criminal background of  
              candidates seeking certificates for employment as  
              drivers or key employees, as defined, with  
              charter-party carriers of passengers and passenger  
              service corporations (such as limousine services,  
              shuttles, charter buses and scheduled bus operators)  
              that provide passenger transportation to and from  
              airports and railroad passenger terminals.

              In the City of Los Angeles, taxi cab drivers are  
              already required to undergo background checks.  The  
              San Diego airport also conducts its own criminal  
              background review.  One goal of this bill is to avoid  
              a circumstance where various airport authorities  
              pursue duplicative and costly criminal background  




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              checks using potentially different standards for  
              drivers that may serve several or all the airports in  
              a region, such as Southern CA and the SF Bay Area.



          2.  Criminal Background Check  

            a.    PUC to require background check for licensure

            This bill requires the Public Utilities Commission to adopt  
            regulations and establish standards and procedures to  
            investigate the background of candidates seeking certificates  
            of employment as drivers or key employees with charter-party  
            carriers of passengers that provide passenger transportation  
            to or from airports, or to or from any railroad terminal  
            serving passenger trains.  Criminal history information shall  
            be used to determine whether applicants for employment as  
            drivers as key employees have convictions for specified  
            offenses that would disqualify them from being hired as  
            drivers or employees.

            The PUC argues that they do not "need to establish regulations  
            as a precondition to gather any information that seems  
            pertinent to issuing a license or certificate, or otherwise  
            carrying on an investigation, formal or informal, in  
            performance of its regulatory duties.  This provision would  
            serve as a severe and inappropriate limitation on the  
            Commission's ability to implement this measure and would, in  
            effect, make it  harder  for the Commission to conduct  
            background checks."  It is unclear whether the amendments  
            taken in Energy, Utilities and Communications removed the  
            PUC's concerns since it still requires them to create  
            regulations.

            b.   DOJ and background checks

            Department of Justice (DOJ) is the criminal record check  
            depository.  They provide criminal history information to  
            various regulatory agencies with history information for  




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            licensure purposes as specified in various sections of law.   
            The DOJ does not do "investigations" but merely is the  
            supplier of the information to the agency.

            This bill intends to require a person applying drivers and key  
            employees of charter-party carriers of passengers and  
            passenger stage corporations who transport people to and from  
            airports or railway stations.  However, as amended in EU&C  
            this bill requires the DOJ to perform a background  
            "investigation".  It appears this amendment may have been  
            taken in response to concerns raised by the PUC regarding  
            requiring them to duplicate the function of the DOJ in getting  
            a background check, but the language in Section 4 of the bill,  
            PUC Section 5384.7 (b) raises new problems and is confusing.   
            "Investigation" is not the proper term for what DOJ does.  If  
            a DOJ background is required this language needs to be  
            rewritten to provide that the PUC shall require an applicant  
            to submit fingerprints via livescan to the DOJ for the DOJ to  
            perform a criminal history on the individual.

            Furthermore, the DOJ does not get involved in determining  
            whether or not someone is prohibited from being licensed or  
            employed because of some conviction.  Section 5384.7(f) talks  
            about "determining" disqualification in the middle of language  
            discussing the DOJ history information.  This is not an  
            appropriate function of DOJ and should be cleaned-up.

            There are other references in the bill to the PUC performing a  
            criminal "investigation" which should not be confused with the  
            DOJ criminal history information which could be one piece of  
            an investigation.  If it is not contemplated that the PUC do  
            an independent investigation of anything that may show up on a  
            criminal history search then the use of the term investigation  
            may be appropriate in the bill, but if that is not what is  
            contemplated then the term should probably not be used at all.  
             It should be noted that the cost of a further investigation  
            by the PUC could be significant.

            SHOULD DRIVERS TRANSPORTING PEOPLE TO AND FROM THE AIRPORT  
            HAVE A CRIMINAL HISTORY BACKGROUND CHECK BEFORE THEY ARE  




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            LICENSED TO DO SO?

            IF SO, SHOULD THIS BILL BE REDRAFTED TO MAKE IT CLEAR THAT DOJ  
            DOES NOT PERFORM INVESTIGATIONS OR GET INVOLVED IN  
            DETERMINATIONS REGARDING DISQUALIFICATION?

            SHOULD THE PUC BE REQUIRED TO PERFORM SOME SORT OF  
            INVESTIGATION OF A PERSON'S CRIMINAL BACKGROUND BEYOND THE  
            CRIMINAL HISTORY INFORMATION FROM DOJ?  IF NOT SHOULD THE  
            CONFUSING LANGUAGE IN THE BILL BE CLARIFIED OR DELETED?  IF SO  
            SHOULD IT BE MADE CLEAR THAT IS WHAT IS INTENDED?

            c.   Who has access to background information

            Generally, criminal history information is sent from DOJ to  
            the appropriate licensing or employing agency and there are  
            strict regulations about the dissemination beyond that agency  
            in order to safeguard the privacy of the information.  This  
            bill seems to allow the PUC to designate someone else to  
            receive this information.  Allowing third party dissemination  
            would likely violate the existing record security regulations  
            as well as likely constitute a violation of privacy.  If it is  
            determined that these individuals need to be background  
            checked, then this bill has to state to whom the information  
            will be sent by DOJ.  That entity cannot pass the information  
            or the duties on to others.

            IN ORDER TO NOT VIOLATE EXISTING DOJ REGULATIONS REGARDING  
            RECORD SECURITY OR THE PRIVACY RIGHTS OF INDIVIDUALS SHOULD  
            THE BILL SPECIFICALLY DESIGNATE WHO SHOULD RECEIVE THE  
            CRIMINAL HISTORY INFORMATION ON THESE INDIVIDUALS?

            d.   Disqualifying offenses

            This bill would prohibit a person with the following offenses  
            from working being a driver or a key employee for a  
            charter-party carrier or passenger stage corporation:

                 Federal violation:  unlawful transportation of a  
               hazardous material;




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                 Federal violation:  carrying a weapon or explosive  
               aboard an aircraft;
                 Federal violation:  unlawful entry into an aircraft of  
               airport area that serves air carriers or foreign air  
               carriers contrary to established security requirements;
                 Federal violation:  destruction of an aircraft facility;
                 Federal violation:  violence at international airports;
                 Unlawful possession, use, sale, distribution, or  
               manufacture of an explosive, incendiary device or assault  
               weapon;
                 Felony arson;
                 Hate crime.

            Most of the offenses are airport related.  The definition of  
            "hate crime" is broad and could be problematic.  It defines  
            "hate crime" as "described in paragraph (2) of subdivision (b)  
            of section 628.1" of the Penal Code which is the broad section  
            for school reporting of crimes and then goes on to say  
            "including but not limited to offenses in Title 11.6" of the  
            Penal Code which are the sections that provide for some of the  
            "hate crime" offenses and enhancements in the Penal Code.  The  
            broad definition in Penal Code Section 628.1 as well as the  
            "included but not limited to" language could make it difficult  
            for the PUC to determine whether or not a person is  
            disqualified.  Almost any offense, misdemeanor or felony could  
            fall into the Penal Code 628.1 definition which provides that  
            a "hate crime" means "an act or attempted act against the  
            person or property of another individual or institution which  
            in any way manifest evidence of hostility toward the victim  
            because of his or her actual or perceived race, religion,  
            disability, gender, nationality, or sexual orientation."  This  
            broad definition could end up making the PUC investigate  
            almost any conviction to determine if it was a "hate crime"  
            under this definition.  If the intent is to stop people  
            convicted of hate crimes from working in these jobs then those  
            sections that are relevant should be specifically listed.








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            IS THIS LIST OF OFFENSES APPROPRIATE FOR DISQUALIFYING THESE  
            PEOPLE FROM EMPLOYMENT?

            SHOULD WHAT IS INTENDED TO BE A HATE CRIME BE SPECIFIED?

            e.   Penalty for violation

            This bill provides that a person who falls under this bill  
            shall carry their valid license credential at all times.   
            Failure to produce the credential at the request of an airport  
            law enforcement officer shall constitute a violation of  
            regulations and subject the driver and the carrier to civil  
            penalties not to exceed $500.

            f.   Fee

            This bill provides that the PUC shall by regulation provide  
            for a fee to be charged to the carriers covered by the bill in  
            order to cover the costs of the background check including any  
            fee assessed by the DOJ.  An individual can only be charged  
            the fee charged by DOJ.

          3.  Opposition  

            a.   Greater California Livery Association

            The Greater California Livery Association oppose this bill  
            stating:

                The preferential treatment gained by the credential is  
                undesired by our industry.  For the sake of everyone's  
                security we feel that our drivers and our passengers  
                should be subject to the same security standards as  
                everyone else.  Law enforcement officials currently  
                have the authority to stop every vehicle accessing  
                airports and we believe that is sufficient.  If law  
                enforcement believes that stopping vehicles at  
                airports to check vehicles and luggage is necessary to  
                ensure security then all vehicles, including those in  




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                our industry, should be stopped and checked by  
                security officials.

            It is unclear if the intent of this bill is that once these  
            drivers are credentialed, their passengers will not have their  
            luggage checked as they enter the airport.  If that is the  
            case, what is to stop a person who wants to do harm to use the  
            airport van as a potential bomb by filling their suitcase with  
            something deadly and designating it as the van reaches the  
            curb.  It does not seem that credentialing the driver would  
            stop this, while checking all cars and vans when there is a  
            high security warning level might.

            b.   Teamsters

            California Teamsters Public Affairs Council opposes the  
            imposition of fees in this bill.  If the fees are removed they  
            will remove their opposition.



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