BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 556| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 556 Page 2 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 CONTINUED SB 556 Page 3 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. CONTINUED SB 556 Page 4 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 CONTINUED SB 556 Page 5 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 CONTINUED SB 556 Page 6 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, CONTINUED SB 556 Page 7 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 **** END **** CONTINUED