BILL NUMBER: AB 508	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Swanson

                        FEBRUARY 15, 2011

   An act to amend Sections 1070 and 1071 of the Labor Code, relating
to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 508, as introduced, Swanson. Displaced public transit, solid
waste handling, and recycling services employees.
   Existing law requires a local government agency letting a public
transit service contract out to bid to give a bidding preference for
contractors and subcontractors who agree to retain, for a period of
at least 90 days, certain employees who were employed to perform
essentially the same services by the previous contractor or
subcontractor. Under this law, contractors or subcontractors who
agree to retain employees must offer employment to those employees
except for reasonable and substantiated cause. Additionally, the law
provides that if a successor contractor or subcontractor determines
that fewer employees are needed than under the prior contract,
qualified employees must be retained by seniority within the job
classification. Further, the existing contractor, when required by
the awarding authority, must provide employment information relating
to wage rates, benefits, dates of hire, and job classifications of
employees under the existing service contract to the awarding
authority or a successor contractor.
   This bill would add employees of solid waste handling and
recycling contractors and subcontractors to those provisions. By
requiring local agencies to give a bidding preference to such
contractors and subcontractors, this bill would impose a
state-mandated local program.
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1070 of the Labor Code is amended to read:
   1070.  The Legislature finds and declares all of the following:
   (a) That when public  transit  agencies  with
jurisdiction over public transit, solid waste handling, or recycling
services  award contracts to operate bus and rail  , solid
waste handling, or recycling  services to a new contractor,
qualified employees of the prior contractor who are not reemployed by
the successor contractor face significant economic dislocation as a
result.
   (b) That those displaced employees rely unnecessarily upon the
unemployment insurance system, public social services, and health
programs, increasing costs to these vital government programs and
placing a significant burden upon both the government and the
taxpayers.
   (c) That it serves an important social purpose to establish
incentives for contractors who bid  public transit 
 for public transit, solid waste handling, or recycling 
services contracts to retain qualified employees of the prior
contractor to perform the same or similar work.
  SEC. 2.  Section 1071 of the Labor Code is amended to read:
   1071.  The following definitions apply throughout this chapter:
   (a) "Awarding authority" means any local government agency,
including any city, county, special district, transit district, joint
powers authority, or nonprofit corporation that awards or otherwise
enters into contracts for public transit  , solid waste handling,
or recycling  services performed within the State of
California.
   (b) "Bidder" means any person who submits a bid to an awarding
agency for a public transit  service   , 
 solid waste handl   ing, or recycling services 
contract or subcontract.
   (c) "Contractor" means any person who enters into a public transit
 service  , solid waste handling, or recycling
services  contract with an awarding authority.
   (d) "Employee" means any person who works for a contractor or
subcontractor under a contract. "Employee" does not include an
executive, administrative, or professional employee exempt from the
payment of overtime compensation within the meaning of subdivision
(a) of Section 515 or any person who is not an "employee" as defined
under Section 2(3) of the National Labor Relations Act (29 U.S.C.
Sec. 152(3)).
   (e) "Person" means any individual, proprietorship, partnership,
joint venture, corporation, limited liability company, trust,
association, or other entity that may employ individuals or enter
into contracts.
   (f) "Public transit services" means the provision of passenger
transportation services to the general public, including paratransit
service.
   (g)  "Service   "Recycling" has the same
meaning as that term is defined in Section 40180 of the Public
Resources Code. 
    (h)     "Service  contract" means any
contract the principal purpose of which is to provide public transit
 , solid waste handling, or recycling  services through the
use of service employees. 
   (i) "Solid waste handling" has the same meaning as that term is
defined in Section 40195 of the Public Resources Code.  

   (h) 
    (j)  "Subcontractor" means any person who is not an
employee who enters into a contract with a contractor to assist the
contractor in performing a service contract.
  SEC. 3.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.