BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1354 (Dodd) - Discrimination: equal pay: state contracting.
-----------------------------------------------------------------
| |
| |
| |
-----------------------------------------------------------------
|--------------------------------+--------------------------------|
| | |
|Version: August 31, 2015 |Policy Vote: G.O. 9 - 3 |
| | |
|--------------------------------+--------------------------------|
| | |
|Urgency: No |Mandate: No |
| | |
|--------------------------------+--------------------------------|
| | |
|Hearing Date: August 27, 2015 |Consultant: Mark McKenzie |
| | |
-----------------------------------------------------------------
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 27, 2015
Bill
Summary: AB 1354 would require employers with 100 or more
employees to submit a nondiscrimination program, including a
specified workforce analysis, to the Department of Fair
Employment and Housing (DFEH) prior to becoming a contractor or
subcontractor with the state. Contractors and subcontractors
would also be required to submit periodic compliance reports and
DFEH would be authorized to require approval and certification
of nondiscrimination programs.
Fiscal
Impact:
Minor and absorbable DFEH costs to receive nondiscrimination
programs and to define "employee" for purposes of the bill.
(General Fund)
Major DFEH General Fund cost pressures, potentially in the
AB 1354 (Dodd) Page 1 of
?
millions annually. If DFEH exercised authority to require
approval and certification contractors' nondiscrimination
programs, it would require approximately 80 PY of consultant
staff, plus supervisory staff and administrative support, to
support such a program. In addition, to collect and sort data
on contractors' workers by job category, race, gender,
ethnicity, wages, and hours worked, DFEH would need to
purchase a new software system at a one-time cost of
approximately $1 million, with ongoing costs of approximately
$160,000 annually (General Fund). These cost pressures could
be substantially higher if DFEH further extended the
requirements to subcontractors and to smaller businesses.
Potential increase in state contracting costs (various funds),
to the extent contractors and subcontractors build the costs
to prepare a nondiscrimination program and workforce analysis
into bid prices. Contracting costs could also be impacted by
a reduction in eligible contractors or subcontractors, to the
extent some businesses fail to comply with the bill's
requirements and are deemed ineligible to contract with the
state. Reduced competition for state contracts could lead to
higher prices.
Author
Amendments: Amendments specify that the bill would apply to
specified contractors and subcontractors with a contract of 30
days or more, and that the bill shall not be construed to negate
or require a reinterpretation of the validity of an exemption to
the statutory requirements in existence on January 1, 2016 that
was created through regulations.
-- END --