BILL ANALYSIS Ó
SB 556
Page 1
SENATE THIRD READING
SB 556 (Padilla)
As Amended August 7, 2014
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 | | |
| | | | |
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SUMMARY : Prohibits nongovernmental persons or entities
contracting to perform services relating to public health or
safety for public agencies from displaying a logo of a public
agency on a uniform or vehicle, as specified, unless a
disclosure statement is also displayed identifying the identity
of the uniform wearer or vehicle operator providing services for
the public agency. 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 relating to public health or safety
for a public agency to display on a vehicle a logo of a public
agency 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 a statement indicating that the
contractor is the service provider, such as "SERVICE PROVIDED
BY:" or "CONTRACTED BY:" immediately followed by the logo
including the name of the contractor, and its place of legal
incorporation
2)Makes it unlawful for a person, firm, corporation, or
association that is a nongovernmental entity and contracts to
perform labor or services relating to public health or safety
for a public agency to display on a uniform a logo of a public
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agency 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 uniform
conspicuously displays the logo including the name of the
contractor providing the labor for the public agency.
3)Requires the disclosure to be placed near the largest logo
referring to the public agency if the vehicle or uniform
displays more than one such logo.
4)Clarifies that the disclosures required by this bill shall
apply to all contracts for labor or services entered into on
or after January 1, 2015.
5)Prohibits a public agency from requiring, through a contract
with a nongovernmental entity to provide public health or
safety services, that an employee of that nongovernmental
entity wears a badge containing the logo of the public agency.
6)Prohibits a nongovernmental entity contracting to provide
public health or safety services for a public agency to
require an employee of that nongovernmental entity to wear a
badge containing the logo of the public agency.
7)Clarifies that the term "conspicuously displays" means to
display a disclosure on the exterior of a vehicle or uniform
in the same location as the logo of the public agency, placed
prominently as compared with other words or designs displayed
in connection with the logo of the public agency.
8)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.
9)Provides that violations of this act shall be subject to the
remedies provided in the Consumers Legal Remedies Act (CLRA)
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(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, cosponsored by the California Labor
Federation and the California Professional Firefighters, seeks
to prohibit private contractors who contract to perform labor or
services relating to public health or safety with public
agencies from displaying a logo of a public agency 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 logo including the name of
the private contractor providing the service. This bill now
clarifies that these disclosure requirements apply
prospectively, that is, to all contracts for labor or services
entered into on or after January 1, 2015.
According to the author, this bill is needed to ensure that
members of the public can visually distinguish between
government employees and non-government employees who
increasingly are subcontracted to perform services relating to
public health or safety that traditionally have been the domain
of government 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 nongovernmental 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 services relating to public health or
safety and use uniforms or vehicles appearing very similar to
those used only by employees of the public agency.
This bill provides that a person or company that is a
nongovernmental entity and contracts to perform labor or
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services relating to public health or safety for a public agency
must abide by specific disclosure requirements with respect to
that entity's vehicles and uniforms. In those circumstances,
this bill seeks to promote transparency by requiring the uniform
or vehicle conspicuously display a disclosure identifying the
contractor's logo and name, and in the case of vehicles only,
the state or country where the contractor is legally
incorporated or organized.
Unless the vehicle or uniform at issue displays this identifying
information about the private contractor, the contracting
nongovernmental entity may not display on the vehicle or uniform
a logo of the public agency that "reasonably could be
interpreted or construed as implying that" the service is being
provided by a public employee. "Logo" is defined as a symbol,
graphic, seal, emblem, or other content identifying the company
or agency. Recent amendments clarify the appropriate display
and location of required disclosures upon the exterior of a
vehicle or uniform, as specified.
As recently amended, this bill prohibits a public agency from
requiring, through a contract with a nongovernmental entity to
provide public health or safety services, that an employee of
that nongovernmental entity wears a badge containing the logo of
the public agency. Conversely, the bill also prohibits a
nongovernmental entity contracting to provide public health or
safety services for a public agency to require an employee of
that nongovernmental entity to wear a badge containing the logo
of the public agency.
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
specified. According to the author, the CLRA offers an
appropriate set of remedies for violations of this 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
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include a request for damages.
Opponents contend that allowing similar uniforms and vehicles to
be used by contractors should be a matter of local control.
Opponents also 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.
For example, the California Ambulance Association (CAA) states
in opposition: "Under SB 556, emergency ambulance service
providers would incur large costs in being forced to redesign
the look of ambulances and uniforms. The potential costs to
private providers would be superfluous as there is no
documentation of uniforms or ambulance appearance posing any
risk to patient or public safety. The objective of this bill is
already covered within the Business and Professions Code as
existing law prohibits false or misleading advertisements and
the impersonation of a licensed individual. Although SB 556
seeks specifically to protect consumers from a person posing as
an emergency responder (those who perform health or safety
services), current criminal law covers such cases."
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334
FN: 0004364