Amended in Assembly June 19, 2013

Amended in Senate May 29, 2013

Amended in Senate May 9, 2013

Amended in Senate April 9, 2013

Senate Bill No. 556

Introduced by Senator Corbett

February 22, 2013

An act to add Section begin delete 2810.7 end delete begin insert 1771 end insert to the begin delete Labor end delete begin insert Civil end insert Code, relating to agency.

LEGISLATIVE COUNSEL’S DIGEST

SB 556, as amended, Corbett. Agency: begin delete ostensible. end delete begin insert ostensible: nongovernmental entities. end insert

Existing law specifies the authority of agents in dealing with 3rd persons. Existing law states when an agency is ostensible for purposes of determining the authority of an agent. begin insert Existing law prohibits unfair methods of competition and unfair or deceptive acts or practices undertaken by a person in a transaction intended to result or which results in the sale or lease of goods to any consumer. end insert

begin delete

This bill would, with certain exceptions, make a public agency that contracts for labor or services with a contractor jointly and severally liable for any damages caused during or in connection with the performance of work under the contract if, at the time of the damage or injury, certain circumstances existed that would cause a member of the public to believe that the contractor or the contractor’s employee was an agent of the public agency. This section would apply only to contracts entered into on or after January 1, 2014.

end delete begin insert

This bill would prohibit a person, firm, corporation, or association that is a nongovernmental entity and contracts to perform labor or services for a public entity from displaying on a vehicle or uniform a seal, emblem, insignia, trade, brand name, or any other term, symbol, or content that reasonably could be interpreted as implying that the labor or services are being provided by employees of the public agency, unless the vehicle or uniform conspicuously displays a disclosure, as specified.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1771 is added to the end insert begin insert Civil Code end insert begin insert , to read: end insert

begin insert

begin insert 1771. end insert   

(a) It is unlawful for a person, firm, corporation, or
association that is a nongovernmental entity and contracts to
perform labor or services for a public agency to display on a
vehicle a seal, emblem, insignia, trade or brand name, or any other
term, symbol, or content that reasonably could be interpreted or
construed as implying that the labor or services are being provided
by employees of the public agency, unless the vehicle conspicuously
displays the following disclosure:

“THE OPERATOR OF THIS VEHICLE IS NOT A
GOVERNMENT EMPLOYEE.”

(b) It is unlawful for a person or an employee of a person, firm,
corporation, or association that is a nongovernmental entity and
contracts to perform labor or services for a public agency to wear
a uniform bearing a seal, emblem, insignia, trade or brand name,
or any other term, symbol, or content that together with the
appearance of the uniform reasonably could be interpreted or
construed as implying that the labor or services are being provided
by employees of the public agency, unless the uniform
conspicuously displays the following disclosure:

“NOT A GOVERNMENT EMPLOYEE.”

(c) For the purposes of subdivision (b), an identifying mark
affixed to a uniform as required by state or federal law, and a
local agency regulating the activity of the person, firm,
corporation, or association shall not be construed as implying
that the labor or services are being provided by employees of the
public agency.

(d) For the purposes of this section, “conspicuously displays”
means displays in a font size that is at least the same size as the
largest font size otherwise displayed on the vehicle or uniform, in
a manner that clearly calls attention to the language, and located
in close proximity to the seal, emblem, insignia, trade or brand
name, or any other term, symbol, or content as described in this
section, so as to be clearly associated with that seal, emblem,
insignia, trade or brand name, or any other term, symbol, or
content.

end insert

begin delete

SECTION 1.  

Section 2810.7 is added to the Labor Code, to
read:

2810.7.  

(a) Notwithstanding all other existing theories of
liability, and except for damage or injury resulting from gross
negligence or a willful act, a public agency that contracts for labor
or services with a contractor shall be jointly and severally liable
for any damages caused during or in connection with the
performance of work under the contract if, at the time of the
damage or injury, either of the following occurred:

(1) The contractor or contractor’s employee was authorized or
required by the public agency to wear a uniform that is substantially
similar to the uniform of the public agency so as to cause a member
of the public to believe that the contractor or contractor’s employee
was an agent of the public agency.

(2) The contractor or contractor’s employee operated a vehicle
that was authorized or required by the public agency to display
the logo of the public agency so that the vehicle had an appearance
that would cause a member of the public to believe that the
contractor or contractor’s employee was an agent of the public
agency.

(b) For purposes of this section, an identifying mark affixed to
a uniform or vehicle as required by state or federal law, and the
local agency that regulates the activity of the contractor, shall not
be determinative.

(c) This section shall apply only to contracts entered into on or
after January 1, 2014.

(d) For the purposes of this section, “public agency” shall not
include the state.

end delete