(1)Existing law authorizes the Department of Justice to provide state summary criminal information history and subsequent arrest notification services to employers for employees that perform specific types of duties and services. A person authorized to receive this criminal record information who knowingly furnishes that information to a person who is not authorized by law to receive that information is guilty of a misdemeanor.

This bill would require the Department of Justice to provide, at the request of a transportation network company, as defined, state summary criminal information history and subsequent arrest notification services for an individual who is employed, retained, contracted, or otherwise compensated to perform services coordinated by the transportation network company. The bill would further require the department to charge a transportation network company a fee sufficient to cover the cost of processing a request made pursuant to this provision. By expanding the scope of a crime, this bill would impose a state-mandated local program. The bill would authorize a transportation network company to submit to the Department of Justice fingerprint images and related information required by the department of all persons intended for employment, employed, retained, contracted, or otherwise compensated to perform or coordinate services for the purposes of obtaining information as to the existence and content of a record of state convictions and state arrests, as specified. The bill also would require the department to provide state criminal history information in response to the transportation network company, would require the transportation network company to request from the department subsequent notification service for persons for whom fingerprint images and related information are submitted, and would require the department to charge a fee to cover the cost of processing a request under these provisions. By expanding the scope of a crime, this bill would impose a state-mandated local program.

(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law authorizes the Department of Justice to provide state summary criminal information history and subsequent arrest notification services to employers for employees that perform specific types of duties and services. A person authorized to receive this criminal record information who knowingly furnishes that information to a person who is not authorized by law to receive that information is guilty of a misdemeanor.

This bill would require the Department of Justice to provide, at the request of a transportation network company, as defined, state summary criminal information history and subsequent arrest notification services for an individual who is employed, retained, contracted, or otherwise compensated to perform services coordinated by the transportation network company. The bill would further require the department to charge a transportation network company a fee sufficient to cover the cost of processing a request made pursuant to this provision. By expanding the scope of a crime, this bill would impose a state-mandated local program. The bill would authorize a transportation network company to submit to the Department of Justice fingerprint images and related information required by the department of all persons intended for employment, employed, retained, contracted, or otherwise compensated to perform or coordinate services for the purposes of obtaining information as to the existence and content of a record of state convictions and state arrests, as specified.

(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law authorizes the Department of Justice to provide state summary criminal information history and subsequent arrest notification services to employers for employees that perform specific types of duties and services. A person authorized to receive this criminal record information who knowingly furnishes that information to a person who is not authorized by law to receive that information is guilty of a misdemeanor.

This bill would require the Department of Justice to provide, at the request of a sharing economy transportation network company, as defined, state summary criminal information history and subsequent arrest notification services for an individual who is employed, retained, contracted, or otherwise compensated to perform services coordinated by the sharing economy transportation network company. The bill would further require the department to charge a sharing economy transportation network company a fee sufficient to cover the cost of processing a request made pursuant to this provision. By expanding the scope of a crime, this bill would impose a state-mandated local program.

(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law authorizes the Department of Justice to provide state summary criminal information history and subsequent arrest notification services to employers for employees that perform specific types of duties and services. A person authorized to receive this criminal record information who knowingly furnishes that information to a person who is not authorized by law to receive that information is guilty of a misdemeanor.

This bill would require the Department of Justice to provide, at the request of a sharing economy company, as defined, state summary criminal information history and subsequent arrest notification services for an individual who is employed, retained, contracted, or otherwise compensated to perform services coordinated by the sharing economy company. The bill would further require the department to charge a sharing economy company a fee sufficient to cover the cost of processing a request made pursuant to this provision. By expanding the scope of a crime, this bill would impose a state-mandated local program.

(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

ASSEMBLY THIRD READING

ATR Bill Id:AB 2777

Author:()

As Amended Ver:

Majority vote

SUMMARY: Allows, but does not require, a "transportation network company" (TNC) to ask the Department of Justice (DOJ) to provide state summary criminal history information for its employees and contractors. Specifically, this bill:

1. Authorizes a TNC to submit to the DOJ the fingerprint images and related information required by the DOJ to process records of state convictions and state arrests for a person employed, retained, contracted, or otherwise compensated to perform services coordinated by that company.
2. Requires the DOJ to provide a state-level response to a TNC upon a request made pursuant to the above provision.
3. Requires the TNC to ask DOJ for subsequent notification service for persons for whom fingerprint images and related information have been submitted.
4. Requires the DOJ to charge a TNC a fee which sufficiently covers the cost of processing such a request.
5. Defines a "TNC" as it is already defined in the Public Utilities Code.

EXISTING LAW:

1. Requires the DOJ to furnish state summary criminal history information to specified entities, if needed in the course of their duties, provided that when information is furnished to assist an agency, officer, or official of state or local government, a public utility, or any other entity in fulfilling employment, certification, or licensing duties, specified restrictions listed in the Labor Code are followed.
2. Allows the DOJ to furnish state summary criminal history information to specified entities and, when specifically authorized, federal-level criminal history information, upon a showing of a compelling need, provided that when information is furnished to assist an agency, officer, or official of state or local government, a public utility, or any other entity in fulfilling employment, certification, or licensing duties, specified restrictions listed in the Labor Code are followed.
3. Allows DOJ to charge a fee to reimburse department costs, and a surcharge to fund system maintenance and improvements, whenever state summary criminal history information is furnished as the result of an application and is to be used for employment, licensing, or certification purposes. Allows, notwithstanding any other law, any person or entity required to pay a fee to DOJ for information received under this provision to charge the applicant a fee sufficient to reimburse the person or entity for this expense.
4. States that, notwithstanding any other law, the DOJ may require the submission of fingerprints for the purpose of conducting criminal history information checks that are authorized by law.
5. States that, notwithstanding any other law, whenever state summary criminal history information is initially furnished as the result of an application by an agency, organization, or individual or by an authorized transportation company, as specified, and the information is to be used for employment, licensing, or certification purposes, then DOJ shall disseminate the following information:
   1. Every conviction rendered against the applicant, except a conviction for which relief has been granted pursuant to Penal Code Section 1203.49;
   2. Every arrest for an offense for which the applicant is presently awaiting trial, whether the applicant is incarcerated or has been released on bail or on his or her own recognizance pending trial; and,
   3. Sex offender registration status of the applicant.
6. Authorizes, notwithstanding any other law, a human resource agency or an employer to request from DOJ records of all convictions or any arrest pending adjudication involving specified offenses of a person who applies for a license, employment, or volunteer position, in which he or she would have supervisory or disciplinary power over a minor or any person under his or her care. Requires DOJ to furnish the information to the requesting employer and also send a copy of the information to the applicant.
7. Allows, notwithstanding any other law, a contract or proprietary security organization to request criminal history information concerning its prospective employees, as specified.
8. Punishes as a misdemeanor any person authorized by law to receive a record or information obtained from a record who knowingly furnishes the record or information to a person who is not authorized by law to receive the record or information.
9. Prohibits an employer, whether a public agency or private individual or corporation, to ask an applicant for employment to disclose, through any written form or verbally, information concerning an arrest or detention that did not result in conviction, or information concerning a referral to, and participation in, any pretrial or posttrial diversion program, nor shall any employer seek from any source whatsoever, or utilize, as a factor in determining any condition of employment including hiring, promotion, termination, or any apprenticeship training program or any other training program leading to employment, any record of arrest or detention that did not result in conviction, or any record regarding a referral to, and participation in, any pretrial or posttrial diversion program.
10. Provides that the California Public Utilities Commission (PUC) may fix rates and establish rules for the transportation of passengers and property by transportation companies, prohibit discrimination, and award reparation for the exaction of unreasonable, excessive, or discriminatory charges.
11. Establishes the PUC's authority to regulate, require license or permit to operate, require insurance and workers compensation, take appropriate enforcement action and other provisions related to passenger stage corporations and transportation charter-party carriers.
12. Defines a "transportation network company" as "an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle."

FISCAL EFFECT: According to the Assembly Appropriations Committee, fully reimbursable cost in the $3.2 million range if all TNCs request criminal background checks for about 100,000 employees and DOJ charges the usual $32 for background checks. (Fingerprint Fees Account)

COMMENTS:

According to the author, "TNCs provide prearranged transportation services for compensation using online-enabled application or platform (such as smart phone apps) to connect passengers with drivers using their personal vehicles. Unfortunately, high-profile incidents have arisen, involving drivers accused of assaulting, kidnapping, raping, harassing and stealing from customers. These incidents point to the need to allow TNCs to request a DOJ background check. By allowing TNC to access DOJ criminal history databases, AB 2777 gives TNCs another tool in its toolbox to uncover criminal history not discovered through traditional methods, prevent fraud and enhance its goal of providing safe and reliable service."

Analysis Prepared by: Sandy Uribe/ PUB. S. / (916) 319-3744 FN: 0003172

Date of Hearing: May 11, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2777

Author:(Nazarian) – As Amended Ver:April 28, 2016

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires the Department of Justice (DOJ), upon request of a Transportation Network Company (TNC), to provide a TNC with the state criminal history and arrest information of its employees and contractors. This bill provides DOJ with fee authority.

FISCAL EFFECT:

Fully reimbursable cost in the $3.2 million range if all TNCs request criminal background checks for about 100,000 employees and DOJ charges the usual $32 for background checks. (Fingerprint Fees Account)

COMMENTS:

1. Purpose. According to the author, incidents of crimes against passengers point to the need to allow TNCs to request a DOJ background check. This bill gives TNCs another tool in its toolbox to uncover criminal history not discovered through traditional methods, prevent fraud and enhance its goal of providing safe and reliable service.
2. Background. Beginning as early as 2009, a new model of transportation known as TNCs allowed patrons to prearrange transportation services through an online application on their smartphone or computer. Although TNCs do not neatly fall into the conventional definition of a charter party carriers (CPCs), the California Public Utilities Commission (PUC) believes that TNCs are currently providing passengers transportation for compensation, and reasonably concludes that TNCs are CPCs, therefore, falling under the CPUC's existing jurisdiction over such services.
3. Criminal Background Checks: CPUC regulations require TNCs to run criminal background checks on all hired drivers, but it does not specify the parameters for which TNCs must go about doing these background checks. As such, TNCs generally contract with third party firms that they argue provide a more comprehensive review necessary to ensure passenger safety. For example, Uber argues that its background screening process checks primary sources and court records going back seven years, in addition to other national databases.

However, news reports continue to identify situations in which TNC drivers have been accused of criminal situations such as rape, assault, kidnapping, among others. The CPUC currently has a pending rulemaking process examining TNC regulations, including whether or not to require fingerprints as part of the TNC background checks.

1. Support. According to the California Labor Federation, " A 2015 report by researchers at City University of New York recommended biometric fingerprint background checks for all for-hire drivers, including TNCs, and that the public should not rely on private companies 'self-regulating.'"
2. Opposition. According to the Internet Association and TechNet, the proposed authorization is premature as the PUC has already stated their intent to examine background checks in Phase III of their TNC rulemaking process.
3. Related Legislation:
   1. AB 1289 (Cooper) was substantially amended in the Senate to require a TNC to conduct comprehensive criminal background checks for each participating driver that include local, state, and federal law enforcement records. The bill would prohibit a transportation network company from contracting with, employing, or continuing to retain a driver if he or she has specified convictions. AB 1289 is pending in the Senate Energy, Utilities and Communications Committee.
      
   2. SB 1035 (Hueso), requires, among other things, the PUC to study several driver background check protocols, including the United States Department of Justice background check, and to adopt any that would enhance public safety by capturing records of any criminal offense. SB 1035 failed passage in Senate Transportation and Housing Committee.
4. Prior Legislation:
   
   1. AB 1422 (Cooper), Chapter 791, Statutes of 2015, requires transportation network companies to participate in the Department of Motor Vehicles Employer Pull Notice System to regularly check the driving records of a participating driver.
      
   2. AB 2404 (Eggman), Chapter 472, Statutes of 2014, requires the DOJ to disseminate an applicant's sex offender registration status whenever DOJ furnishes state or federal summary criminal history information to specified entities as a result of an employment, licensing, or certification application.
      
   3. AB 2343 (Torres), Chapter 256, Statutes of 2012, requires that when state or federal summary criminal history information is furnished to an agency, organization or individual, a copy of the information be provided to the person about whom the information relates if there is an adverse employment, licensing, or certification decision.
      

Analysis Prepared by: Pedro Reyes / APPR. / (916) 319-2081

Date of Hearing: April 21, 2016

ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE

Mike Gatto, Chair

ABPCA Bill Id:AB 2777 (

Author:Nazarian) – As Amended Ver:April 14, 2016

SUBJECT: Transportation network company: criminal history

SUMMARY: Requires the Department of Justice (DOJ), upon request of a Transportation Network Company (TNC), to provide a TNC with the criminal history and arrest information of its employees and contractors. Specifically, this bill:

1. Requires the DOJ, at the request of a TNC, for an individual who is employed, retained, contracted, or otherwise compensated to perform services coordinated by the TNC either of the following:
   1. State summary criminal history information, as specified; or
   2. Subsequent arrest notification services, as specified.
2. Requires the DOJ to charge the TNC a fee sufficient to cover the cost of processing a request.

EXISTING LAW:

1. Establishes the "Passenger Charter-Party Carriers Act," which directs the California Public Utilities Codes (CPUC) to issue permits or certificates to Charter Party Carriers (CPCs), investigate complaints against carriers, and cancel, revoke, or suspend permits and certificates for specific violations. (Public Utilities Code Section 5381 et seq.)
2. Defines "charter party carriers of passengers" as every person engaged in the transportation of person by motor vehicle for compensation, whether in common or contract carriage, over any public highway in the state. (Public Utilities Code Section 5360)
3. Defines a "transportation network company" to mean an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle. (Public Utilities Code Section 5431)
4. Requires the DOJ to furnish state summary criminal history information to specified entities, if needed in the course of their duties and, when specifically authorized, federal-level criminal history information, upon showing of a compelling need, provided that when information is furnished to assist an agency, officer, or official of state or local government, a public utility, or any other entity in fulfilling employment, certification, or licensing duties, as specified. (Penal Code Section 11105)
5. Authorizes the DOJ to charge the person or entity making the request a fee that it determines to be sufficient to reimburse the department for the cost of furnishing the information. In addition, the DOJ may add a surcharge to the fee to fund maintenance and improvements to the systems from which the information is obtained. Notwithstanding any other law, any person or entity required to pay a fee to the DOJ for information received, as specified, may charge the applicant a fee sufficient to reimburse the person or entity for this expense. (Penal Code Section 11105).
6. Authorizes the DOJ or any state or local law enforcement agency to require the submission of fingerprints for the purpose of conducting summary criminal history information checks that are authorized by law. (Penal Code Section 11105)
7. Requires, notwithstanding any other law, whenever state summary criminal history information is initially furnished, as specified, the DOJ to disseminate the following information:
   1. Every conviction rendered against the applicant.
   2. Every arrest for an offense for which the applicant is presently awaiting trial, whether the applicant is incarcerated or has been released on bail or on his or her own recognizance pending trial.
   3. Every arrest for an offense for which the records of the DOJ do not contain a disposition or did not result in a conviction, provided that the DOJ first makes a genuine effort to determine the disposition of the arrest. However, information concerning an arrest shall not be disclosed if the records of the DOJ indicate or if the genuine effort reveals that the subject was exonerated, successfully completed a diversion or deferred entry of judgment program, or the arrest was deemed a detention.
   4. Every date and agency name associated with all retained peace officer or nonsworn law enforcement agency employee preemployment criminal offender record information search requests.
   5. Sex offender registration status of the applicant. (Penal Code Section 11105)

FISCAL EFFECT: Unknown.

COMMENTS:

1. Background: California Constitution, Article XII establishes the CPUC and grants it the authority to regulate public utilities. In addition, the CPUC has more limited authority over other corporations, including railroads, rail transit, and CPCs, among others. Beginning as early as 2009, a new model of transportation known as TNCs allowed patrons to prearrange transportation services through an online application on their smartphone or computer. Although TNCs do not neatly fall into the conventional definition of a CPC, the CPUC believes that TNCs are currently providing passengers transportation for compensation, and reasonably concludes that TNCs are CPCs, therefore, falling under the CPUC's existing jurisdiction over such services.
2. Criminal Background Checks: CPUC regulations require TNCs to run criminal background checks on all hired drivers, but it does not specify the parameters for which TNCs must go about doing these background checks. As such, TNCs generally contract with third party firms that they argue provide a more comprehensive review necessary to ensure passenger safety. For example, Uber argues that its background screening process checks primary sources and court records going back seven years, in addition to other national databases.

However, news reports continue to identify situations in which TNC drivers have been accused of criminal situations such as rape, assault, kidnapping, among others. The CPUC currently has a pending rulemaking process examining TNC regulations, including whether or not to require fingerprints as part of the TNC background checks.

1. RAP Sheet: The state summary criminal history information, commonly referred to as the Record of Arrests and Prosecutions, or “RAP sheet,” is compiled by the DOJ and includes information pertaining to the identification and criminal history of any person, such as name, date of birth, physical description, fingerprints, photographs, arrests, dispositions, and similar data. The disclosure of criminal history information is closely guarded. Penal Code Section 13300 et. seq., demonstrates that the Legislature intended nondisclosure of criminal offender record information to be the general rule.

While some entities are able to receive the information in the course of their duties, others can only obtain that information if there is compelling need and subject to specific provisions of the Labor Code, which regulates inquires by employers on employee criminal backgrounds. Examples of entities that are authorized to receive such information include banks, private security, school contract employees. Absent a compelling need, such information should be protected to ensure privacy and prevent discrimination among employers and employees.

This bill requires the DOJ, at the request of a TNC, to provide the TNC with the state summary criminal history information and any subsequent arrest notification services of its employees or contactors. This bill requires the DOJ to charge the TNC a fee sufficient to cover the cost of processing a request. Currently, TNCs are not required to provide the DOJ with fingerprints of its employees or contractors. Hence, it is unclear how the DOJ would comply with the request proposed under this bill, as it would not have the necessary information of each employee or contractor available to provide the TNC, if requested.

1. Arguments in Opposition: According to the Internet Association and TechNet, “AB 2777 attempts to provide the statutory authorization that would allow the [DOJ] to perform background checks and arrest notifications of TNC drivers. As currently drafted, this authorization is permissive – only at the request of a TNC – but we are concerned that this could easily become an unnecessary legislative mandate. In addition, this authorization is premature as the [CPUC] has already stated their intent to examine background checks in Phase III of their TNC rulemaking process.”
2. Double Referred: This bill was previously heard in the Assembly Committee on Public Safety and passed out on a 7-0 vote.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

The Internet Association

Lyft

TechNet

Uber Technologies, Inc.

Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083

Date of Hearing: April 19, 2016

Counsel: Sandra Uribe

ASSEMBLY COMMITTEE ON

Reginald Byron Jones-Sawyer, Sr., Chair

ABPCA Bill Id:

Author:() – As Ver:

SUMMARY:

Allows, but does not require, a "transportation network company" (TNC) to ask the Department of Justice (DOJ) to provide summary criminal history information for its employees and contractors. Specifically, this bill:

1. Requires the DOJ to provide to a TNC, upon request, the following information for a person employed, retained, contracted, or otherwise compensated to perform services coordinated by that company:
   
   1. State summary criminal history information as specified, and,
      
   2. Subsequent arrest notification services, as specified.
      
2. Requires the DOJ to charge a TNC a fee that sufficiently covers the cost of processing such a request.
   
3. Defines a "TNC" as it is already defined in the Public Utilities Code.

EXISTING LAW:

1. Requires the DOJ to furnish state summary criminal history information to specified entities, if needed in the course of their duties, provided that when information is furnished to assist an agency, officer, or official of state or local government, a public utility, or any other entity in fulfilling employment, certification, or licensing duties, specified restrictions listed in the Labor Code are followed. (Pen. Code, § 11105, subd. (b).)
   
2. Allows the DOJ to furnish state summary criminal history information to specified entities and, when specifically authorized, federal-level criminal history information, upon a showing of a compelling need, provided that when information is furnished to assist an agency, officer, or official of state or local government, a public utility, or any other entity in fulfilling employment, certification, or licensing duties, specified restrictions listed in the Labor Code are followed. (Pen. Code, § 11105, subd. (c).)
   
3. Allows DOJ to charge a fee to reimburse department costs, and a surcharge to fund system maintenance and improvements, whenever state summary criminal history information is furnished as the result of an application and is to be used for employment, licensing, or certification purposes. Allows, notwithstanding any other law, any person or entity required to pay a fee to DOJ for information received under this provision to charge the applicant a fee sufficient to reimburse the person or entity for this expense. (Pen. Code, § 11105, subd. (e).)
   
4. States that, notwithstanding any other law, the DOJ may require the submission of fingerprints for the purpose of conducting criminal history information checks that are authorized by law. (Pen. Code, § 11105, subd. (i).)
   
5. States that, notwithstanding any other law, whenever state summary criminal history information is initially furnished as the result of an application by an agency, organization, or individual or by an authorized transportation company, as specified, and the information is to be used for employment, licensing, or certification purposes, then DOJ shall disseminate the following information:
   
   1. Every conviction rendered against the applicant, except a conviction for which relief has been granted pursuant to Section 1203.49;
      
   2. Every arrest for an offense for which the applicant is presently awaiting trial, whether the applicant is incarcerated or has been released on bail or on his or her own recognizance pending trial; and,
      
   3. Sex offender registration status of the applicant. (Pen. Code, § 11105, subd. (p).)
      
6. Authorizes, notwithstanding any other law, a human resource agency or an employer to request from DOJ records of all convictions or any arrest pending adjudication involving specified offenses of a person who applies for a license, employment, or volunteer position, in which he or she would have supervisory or disciplinary power over a minor or any person under his or her care. Requires DOJ to furnish the information to the requesting employer and also send a copy of the information to the applicant. (Pen. Code, § 11105.3, subd. (a).)
   
7. Allows, notwithstanding any other law, a contract or proprietary security organization to request criminal history information concerning its prospective employees, as specified. (Pen. Code, § 11105.4.)
   
8. Punishes as a misdemeanor any person authorized by law to receive a record or information obtained from a record who knowingly furnishes the record or information to a person who is not authorized by law to receive the record or information. (Pen. Code, § 11142.)
   
9. Prohibits an employer, whether a public agency or private individual or corporation, to ask an applicant for employment to disclose, through any written form or verbally, information concerning an arrest or detention that did not result in conviction, or information concerning a referral to, and participation in, any pretrial or posttrial diversion program, nor shall any employer seek from any source whatsoever, or utilize, as a factor in determining any condition of employment including hiring, promotion, termination, or any apprenticeship training program or any other training program leading to employment, any record of arrest or detention that did not result in conviction, or any record regarding a referral to, and participation in, any pretrial or posttrial diversion program. (Labor Code , § 432.7, subd. (a).)
   
10. Provides that the California Public Utilities Commission (PUC) may fix rates and establish rules for the transportation of passengers and property by transportation companies, prohibit discrimination, and award reparation for the exaction of unreasonable, excessive, or discriminatory charges. (Article XII, §4 of the California Constitution)
11. Establishes the PUC’s authority to regulate, require license or permit to operate, require insurance and workers compensation, take appropriate enforcement action and other provisions related to passenger stage corporations and transportation charter-party carriers. (Pub. Util. Code, §§ 1031 et seq and5351).
    
12. Defines a "transportation network company" as "an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle." (Pub. Util. Code, § 5431.)

FISCAL EFFECT:

Unknown

COMMENTS:

1. Author's Statement: According to the author, "TNCs provide prearranged transportation services for compensation using online-enabled application or platform (such as smart phone apps) to connect passengers with drivers using their personal vehicles. Unfortunately, high-profile incidents have arisen, involving drivers accused of assaulting, kidnapping, raping, harassing and stealing from customers. These incidents point to the need to allow TNCs to request a DOJ background check. By allowing TNC to access DOJ criminal history databases, AB 2777 gives TNCs another tool in its toolbox to uncover criminal history not discovered through traditional methods, prevent fraud and enhance its goal of providing safe and reliable service."
   
2. Background: Different types of transportation companies (e.g., TNCs, limousines, taxi cabs) are regulated differently. Rates, routes, service areas, insurance requirements, vehicle inspections, and driver requirements vary. An example of different rules for similar competitors is the requirement for background checks. Some local governments, including the City of Los Angeles, require extensive background checks using fingerprints and the United States Department of Justice database for taxis. The PUC requires TNCs to perform criminal background checks on their drivers, but does not require fingerprints or the use of the DOJ database. (The PUC is currently considering whether to require fingerprints.) And those rules do not require any background checks on other charter-party carriers, such as limousines.
   
3. Summary Criminal History Information: State summary criminal history information is the master record of information compiled by the DOJ pertaining to the identification and criminal history of any person, such as name, date of birth, physical description, fingerprints, photographs, arrests, dispositions, and similar data. (Pen. Code, § 11105, subd. (a).) State summary criminal history information commonly is referred to by the acronym "RAP sheet," which is short for Record of Arrests and Prosecutions.
   
   The disclosure of criminal history information is closely guarded. "The language of Penal Code section 13300 et seq., demonstrates that the Legislature intended nondisclosure of criminal offender record information to be the general rule." (Westbrook v. County of Los Angeles (1994) 27 Cal.App.4th 157, 164.) While some individuals and entities are entitled to receive the information if it is needed in the course of their duties, others can obtain that information only upon a showing of a compelling need and subject to Labor Code provisions which regulates inquiries by employers into an employee's arrest record. (Id. at pp. 162-163.) Some examples of employers authorized to receive state summary criminal history information from DOJ include banks, private security, school contract employees.
   
   This bill would require DOJ to give to TNC companies the state summary criminal history information upon the company's request. However, as drafted, DOJ is likely unable to comply because there is no language in the bill requiring the prospective employee's or contractor's fingerprints to be submitted. Should the bill be amended to include the following:
   
   "A transportation network company may submit to the Department of Justice fingerprint images and related information required by the Department of Justice of all persons intended for employment, employed, retained, contracted, or otherwise compensated to perform or coordinate services, as defined by Section 5431 of the Public Utilities Code, for the purposes of obtaining information as to the existence and content of a record of state convictions and state arrests and also information as to the existence and content of a record of state arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal."
   
4. Arguments in Support:
   
   1. According to the Greater California Livery Association (GCLA), "The safety of California's traveling public is the responsibility and primary goal of GCLA members in the provision of service to their clients; the achievement of this goal includes assuring our passengers of the integrity, conduct, and competence of our drivers and the safety of our vehicles. Our members accomplish this through criminal background checks, driver training, drug and alcohol testing, knowledge of driver infractions and rigid safety requirements and inspections. It is not unreasonable to expect all providers of public transportation services to provide and guarantee adherence to the goal of providing safe, reliable transportation service. Assembly Bill 2777 is a step toward achieving that goal."
      
   2. According to the California Labor Federation, "In April of this year, Uber agreed to pay $10 million to settle allegations by California prosecutors that it misled passengers about the quality of its driver background checks. A 2015 report by researchers at City University of New York recommended biometric fingerprint background checks for all for-hire drivers, including TNCs, and that the public should not rely on private companies 'self-regulating.'"
      
5. Related Legislation:
   
   1. AB 1289 (Cooper) was substantially amended in the Senate to require a transportation network company to conduct comprehensive criminal background checks for each participating driver that include local, state, and federal law enforcement records. The bill would prohibit a transportation network company from contracting with, employing, or continuing to retain a driver if he or she has specified convictions. AB 1289 is pending in the Senate Energy, Utilities and Communications Committee.
      
   2. AB 1857 (Rodriguez) requires law enforcement to inform clinical staff of an acute care hospital whether a person transported to the hospital has a violent criminal history, as indicated by local summary criminal history information, and may pose a danger to staff. The hearing on this bill, which is pending in this Committee, was canceled at the request of author.
      
   3. SB 1035 (Hueso), requires, among other things, the PUC to study several driver background check protocols, including the United States Department of Justice background check, and to adopt any that would enhance public safety by capturing records of any criminal offense. SB 1035 is scheduled to be heard by the Senate Transportation and Housing Committee on April 19, 2016.
6. Prior Legislation:
   
   1. AB 1422 (Cooper), Chapter 791, Statutes of 2015, requires transportation network companies to participate in the Department of Motor Vehicles Employer Pull Notice System to regularly check the driving records of a participating driver.
      
   2. AB 2404 (Eggman), Chapter 472, Statutes of 2014, requires the DOJ to disseminate an applicant's sex offender registration status whenever DOJ furnishes state or federal summary criminal history information to specified entities as a result of an employment, licensing, or certification application.
      
   3. AB 2343 (Torres), Chapter 256, Statutes of 2012, required that when state or federal summary criminal history information is furnished to an agency, organization or individual, a copy of the information be provided to the person about whom the information relates if there is an adverse employment, licensing, or certification decision.
      
   4. AB 1628 (Beall), of the 2011-12 Legislative Session, among other provisions, would have required a private entity doing business in the state that rents, leases, or uses public property and has an employee, member, agent, licensee, or representative who will access the property and who has duties involving close interaction with children on a regular basis to perform an enhanced background check, as specified, on the employee, member, agent, licensee, or representative. AB 1628 failed passage in the Committee on Appropriations.
      

REGISTERED SUPPORT / OPPOSITION:

Support

California Labor Federation
Greater California Livery Association

Opposition

None

Analysis Prepared by: