BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 556
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          SENATE THIRD READING
          SB 556 (Corbett)
          As Amended July 1, 2013
          Majority vote 

           SENATE VOTE  :24-13  
           
           JUDICIARY           7-3                                         
           
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          |Ayes:|Wieckowski, Alejo, Chau,  |     |                          |
          |     |Dickinson, Garcia,        |     |                          |
          |     |Muratsuchi, Stone         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Wagner, Gorell,           |     |                          |
          |     |Maienschein               |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits nongovernmental persons or entities  
          contracting with public agencies from displaying a seal or  
          emblem on a uniform or vehicle, as specified, unless a  
          disclosure statement is also conspicuously displayed identifying  
          the uniform wearer or vehicle operator as not a government  
          employee.  Specifically,  this bill  :    

          1)Makes it 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."

          2)Makes it 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  








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            or services are being provided by employees of the public  
            agency, unless the uniform conspicuously displays the  
            following disclosure:  "NOT A GOVERNMENT EMPLOYEE."

          3)Clarifies that the term "conspicuously displays" means to  
            display 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.

          4)Clarifies that 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.

          5)Provides that violations of this act shall be subject to the  
            remedies provided in the Consumers Legal Remedies Act (CLRA)  
            (Title 1.5 (commencing with Section 1750) of Part 4), and that  
            the duties, rights, and remedies provided in this bill are in  
            addition to any other duties, rights, and remedies provided by  
            state law.

           FISCAL EFFECT  :  None
           
          COMMENTS  :  This bill, co-sponsored by the California Labor  
          Federation and the California Professional Firefighters, seeks  
          to prohibit private contractors who contract with public  
          agencies from displaying a seal or emblem on a uniform or  
          vehicle, as specified, that reasonably could be interpreted as  
          implying that the contracted labor or services are being  
          provided by employees of the public agency-unless, that is, a  
          disclosure statement is also conspicuously displayed on the  
          uniform or vehicle identifying the private contractor as "Not A  
          Government Employee."  As recently amended, violations of this  
          bill may be enforced using the remedies provided by the CLRA.

          According to the author, this bill is needed to ensure that  
          members of the public can visually distinguish between  








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          government employees and non-government employees who  
          increasingly are subcontracted to perform traditional public  
          services once almost exclusively the domain of true public  
          employees.  Proponents assert that the public has the right to  
          know if a particular worker providing a service that appears  
          public in nature is in fact a public employee, or is instead an  
          independent contractor, subcontracted worker, or other  
          non-governmental employee not working for a public agency.  This  
          matters, they contend, because in certain situations, the public  
          employee is required to have greater training and is held to a  
          higher degree of accountability to the public by virtue of being  
          an employee of a public agency, rather than that of a private  
          employer or as an independent contractor.  Accordingly, the bill  
          seeks to prevent confusion or misperceptions that result,  
          proponents contend, when private contractors hired by public  
          agencies perform community work or services and use uniforms or  
          vehicles appearing very similar to those used only by employees  
          of the public agency.  In those circumstances, this bill seeks  
          to promote transparency by requiring the uniform or vehicle  
          conspicuously display a disclosure that the contractor or  
          employee is not a government employee.

          Under this bill, a person or company that is a nongovernmental  
          entity and contracts to perform labor or services for a public  
          agency must abide by specific disclosure requirements with  
          respect to that entity's vehicles and uniforms.  Unless the  
          vehicle at issue conspicuously displays the words "THE OPERATOR  
          OF THIS VEHICLE IS NOT A GOVERNMENT EMPLOYEE," the contracting  
          nongovernmental entity may not display on the vehicle any seal,  
          emblem, or other content that "reasonably could be interpreted  
          or construed as implying that" the service is being provided by  
          a public employee.  Similarly, unless the uniform at issue  
          conspicuously displays the words "NOT A GOVERNMENT EMPLOYEE,"  
          the contracting entity and its workers are prohibited from  
          wearing any uniform that displays any seal, emblem, or other  
          content that reasonably could be interpreted or construed as  
          implying that the labor or service is being provided by a public  
          employee.  

          Violations of the requirements proposed by this bill may be  
          enforced using the remedies provided by the CLRA (Civil Code  
          Section 1750 et seq.)  The CLRA establishes a nonexclusive  
          statutory remedy for unfair methods of competition and unfair  
          acts or practices in various consumer transactions, as  








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          specified.  According to the author, the CLRA offers an  
          appropriate set of remedies for violations of the bill-remedies  
          which prioritize disclosure and display requirements over the  
          recovery of money damages.  Specifically, the CLRA allows an  
          action for injunctive relief to enjoin acts that do not comply  
          with the bill, in this case non-compliance with the uniform and  
          vehicle-related display and disclosure requirements of the bill.  
           In addition, the CLRA requires notice and opportunity to  
          correct for a period of thirty days before any action for  
          damages is allowed, including cases where the plaintiff seeks to  
          amend a complaint for injunctive relief to include a request for  
          damages.  

          The recent amendments replace the previous contents of the bill,  
          which would have made public agencies that contract for services  
          with a contractor jointly and severally liable for any damages  
          caused during performance of the contract if, at the time of the  
          damage, the contractor was authorized or required by the public  
          agency to wear a uniform or operate a vehicle that by its  
          similar appearance would have caused members of the public to  
          believe that the contractor was an agent of the public entity.   
          In short, the bill no longer provides any rule for ostensible  
          agency liability, and instead simply requires disclosure  
          statements on vehicles and uniforms used by nongovernmental  
          entities if specified conditions are true.  Because of these  
          amendments, the Civil Justice Association of California has  
          officially removed its opposition to the bill.

          This bill is opposed by a number of groups representing local  
          government entities, including, among others, the California  
          State Association of Counties and the League of California  
          Cities.  These opponents contend that they are unaware of any  
          problem associated with a private contractor wearing a similar  
          uniform or having a similar vehicle that causes confusion for  
          the public, and that the bill is a solution in search of a  
          problem.  Furthermore, opponents contend that allowing similar  
          uniforms and vehicles to be used by contractors should be a  
          matter of local control.  According to the joint letter  
          submitted by these opponents, "Many public agencies that  
          contract for services specify uniform requirements and/or  
          affixing logos to a vehicle in their written contracts with a  
          service provider.  These uniform requirements are oftentimes  
          done for the purpose of ensuring that the public knows who the  
          contractor is serving and for identifying regional operations  








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          during a major disaster or mutual aid request from a public  
          agency.  This bill would eliminate public agencies' ability to  
          determine what works best locally."  
           
           The bill is also opposed by American Medical Response (AMR),  
          California's largest provider of 9-1-1 emergency ambulance  
          services and private employer of paramedics and emergency  
          medical technicians.  AMR states:  "The sponsors of the bill  
          fail to provide any evidence that the current appearance of our  
          workforce uniforms or ambulances poses any threat to patient or  
          public safety.  When an AMR crew arrives at the scene of a  
          medical emergency, it is clear who they work for.  Our logo and  
          name are prominently displayed in multiple locations on our  
          ambulances.  AMR patches are clearly visible on our crew's  
          uniforms, and the patient ultimately receives a bill issued by  
          AMR with our phone number and address.  We also receive  
          thousands of letters every year from patients thanking us for  
          our services which clearly indicates the patient was aware that  
          the crew treating them was working for AMR.  In fact, the  
          utilization of county patches and identifying marks, which are  
          used in tandem with AMR patches and logos, provide assurance to  
          the patient and family that we are responding under the  
          authority of the county, and are licensed to practice medicine  
          in their jurisdiction."


           Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334 


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