BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 556
Author: Padilla (D), et al.
Amended: 8/21/14
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-1, 5/7/13
AYES: Evans, Corbett, Jackson, Leno, Monning
NOES: Anderson
NO VOTE RECORDED: Walters
SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 4-0, 5/8/13
AYES: Lieu, Leno, Padilla, Yee
NO VOTE RECORDED: Wyland
SENATE FLOOR : 24-13, 5/30/13
AYES: Beall, Block, Corbett, De León, DeSaulnier, Evans,
Galgiani, Hancock, Hernandez, Hill, Jackson, Lara, Leno, Lieu,
Liu, Monning, Padilla, Pavley, Price, Roth, Steinberg, Wolk,
Wright, Yee
NOES: Anderson, Berryhill, Calderon, Cannella, Correa,
Emmerson, Fuller, Gaines, Huff, Knight, Nielsen, Walters,
Wyland
NO VOTE RECORDED: Hueso, Torres, Vacancy
SENATE JUDICIARY COMMITTEE : 4-2, 8/28/14 (Pursuant to Senate
Rule 29.10)
AYES: Jackson, Corbett, Leno, Monning
NOES: Anderson, Vidak
NO VOTE RECORDED: Lara
ASSEMBLY FLOOR : 43-24, 8/25/14 - See last page for vote
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SUBJECT : Providers of health and safety labor services:
identification
SOURCE : California Labor Federation
California Professional Firefighters
DIGEST : This bill, on or after January 1, 2015, makes it
unlawful for a public health and safety labor or services
contractor to display on a vehicle a logo of the contracting
public agency or wear a uniform bearing a logo of the public
agency, unless additional disclosures, as specified, are also
displayed; makes it unlawful to require a person or employee of
a nongovernmental agency contracted to provide public health and
safety labor or services to wear a badge containing the logo of
the public agency; and provides remedies under the California
Legal Remedies Act (CLRA) for violations of its provisions.
Assembly Amendments change the author, move the bill from Labor
to Civil Code, narrow the scope, make provisions prospective
from January 1, 2015, provide that violations of its provisions
are subject to the remedies provided in the CRLA, and make
numerous changes.
ANALYSIS :
Existing law:
1.Protects, under the CLRA, consumers against unfair and
deceptive business practices and provides efficient and
economical procedures to secure such protection.
2.Enumerates various unfair methods of competition and unfair or
deceptive acts or practices, including passing off goods or
services as those of another, misrepresenting the source,
sponsorship, approval, or certification of goods or services,
and misrepresenting the affiliation, connection, or
association with, or certification by, another.
3.Provides that any consumer who suffers any damage as a result
of the use or employment by any person of a method, act, or
practice declared to be unlawful by the CLRA may bring an
action against that person to recover or obtain any of the
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following:
A. Actual damages, but in no case shall the total award of
damages in a class action be less than $1,000;
B. An order enjoining the methods, acts, or practices;
C. Restitution of property;
D. Punitive damages;
E. Any other relief that the court deems proper; and
F. Court costs and attorney's fees.
This bill:
1.Makes it unlawful for a person, firm, corporation, or
association that is a nongovernmental entity and contracts to
perform public health and safety labor or services 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 public health and safety labor or services for a
public agency to display on a uniform 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 uniform
conspicuously displays the logo including the name of the
contractor providing the labor for the public agency.
3.Clarifies that the "public health labor or services" to which
this bill applies means fire protection services, rescue
services, emergency medical services, hazardous material
emergency response services, and ambulance services.
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4.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.
5.Clarifies that the disclosures required by this bill shall
apply to all labor or services provided pursuant to a contract
entered into on or after January 1, 2015.
6.Prohibits a public agency from requiring, through a contract
with a nongovernmental entity to provide public health and
safety labor or services, that an employee of that
nongovernmental entity wears a badge containing the logo of
the public agency.
7.Prohibits a nongovernmental entity contracting to provide
public health and safety labor or services for a public agency
to require an employee of that nongovernmental entity to wear
a badge containing the logo of the public agency.
8.Provides that the disclosures required by this bill do not
apply to a public agency vehicle utilized by a nongovernmental
entity during a declared state or federal disaster,
mass-casualty incident, or other incident that requires the
use of state or federal resources when the public agency
requires the use of that vehicle.
9.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.
10.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.
11.Provides that violations of this act shall be subject to the
remedies provided in the 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
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duties, rights, and remedies provided by state law.
Background
Under existing law, a contract of employment is a contract by
which one, who is called the employer, engages another, who is
called the employee, to do something for the benefit of the
employer or a third person. Existing law and regulations set
forth the conditions under which a person may be classified as
an independent contractor, and thus not subject to many wage,
overtime, working conditions, and various other labor standards.
The Employment Development Department (EDD), the Franchise Tax
Board, and the federal government are the primary entities that
have established criteria for making a determination as to
whether a person may be classified as an independent contractor.
EDD has developed a guide, worksheets, and forms to assist
businesses in determining whether a worker is an employee or
independent contractor.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 8/28/14)
California Labor Federation (co-source)
California Professional Firefighters (co-source)
Laborers' Locals 777 and 792
OPPOSITION : (Verified 8/28/14)
Association of California Health Districts
California Ambulance Association
California Contract Cities Association
California Special Districts Association
California State Association of Counties
Cities of Cerritos, Claremont, Diamond Bar, Indian Wells, La
Mirada, Lakewood, Los Alamitos, Newport Beach, Orland, Pomona,
Rancho Cucamonga,
Rancho Palos Verdes, Roseville, Selma, Thousand Oaks, Torrance
and Winters
International Association of EMTs and Paramedics
League of California Cities
Paramedics Plus
Rural County Representatives of California
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Schaefer Ambulance Service
SEIU Local 5000
Town of Danville
Urban Counties Caucus
Veolia Transdev
ARGUMENTS IN SUPPORT : Laborers' Locals 777 and 792 write,
"Today, given the growing California subcontracted workforce,
the relationship between the worker who shows up at the front
door and the company that sent them can be confusing to
California consumers. As such, the state has a responsibility
to prevent unfair or deceptive practices that may result in
confusing Californians when an otherwise government-provided
service is requested or required. And, when it comes to those
who render essential public services, including critical,
property and/or life-saving services, accountability becomes all
the more significant.
"Public awareness of who is actually providing critical public
services is essential to ensuring accountability. Indeed,
accountability is especially important when public agency
subcontractors seek to convey a particular image or branded
reputation through the use of an agency's logo."
ARGUMENTS IN OPPOSITION : The California State Association of
Counties, the League of California Cities, and the California
Special Districts Association argue that 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
during a major disaster or mutual aid request from a public
agency. This bill eliminates public agencies' ability to
determine what works best locally.
Further, we are unaware of any problems - in general or
specifically - associated with a private contractor wearing a
similar uniform or having a similar vehicle that cause confusion
for the public and necessitate a need for this change in law.
ASSEMBLY FLOOR : 43-24, 8/25/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Ian Calderon, Campos, Chau, Chesbro, Dababneh, Daly,
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Dickinson, Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez,
Gonzalez, Gray, Hall, Roger Hernández, Jones-Sawyer, Levine,
Lowenthal, Medina, Muratsuchi, Nazarian, Pan, Perea, John A.
Pérez, V. Manuel Pérez, Rendon, Ridley-Thomas, Skinner, Stone,
Weber, Wieckowski, Williams, Atkins
NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Cooley, Beth
Gaines, Grove, Hagman, Harkey, Jones, Linder, Logue,
Maienschein, Mansoor, Melendez, Nestande, Olsen, Patterson,
Quirk-Silva, Salas, Wagner, Waldron, Wilk
NO VOTE RECORDED: Brown, Buchanan, Dahle, Donnelly, Gordon,
Gorell, Holden, Mullin, Quirk, Rodriguez, Ting, Yamada,
Vacancy
AL:e 8/28/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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