California Legislature—2015–16 Regular Session

Assembly BillNo. 1669


Introduced by Assembly Member Roger Hernández

January 15, 2016


An act to amend Sections 1070 and 1071 of, and to amend the heading of Chapter 4.6 (commencing with Section 1070) of Part 3 of Division 2 of, the Labor Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 1669, as introduced, Roger Hernández. Displaced employees: solid waste collection and transportation services contracts.

Existing law requires a local government agency letting a public transit service contract out to bid to give a bidding preference for contractors and subcontractors who agree to retain for a specified period certain employees who were employed to perform essentially the same services by the previous contractor or subcontractor. Such a contractor or subcontractor must offer employment to those employees, except for reasonable and substantiated cause. Existing law requires a successor contractor or subcontractor that determines that fewer employees are needed than under the prior contract to retain qualified employees by seniority within the job classification. The existing contractor must provide prescribed information regarding employment under the existing service contract to the awarding authority, any entity that the awarding authority identifies as a bona fide bidder, and the successor contractor.

This bill would add employees of solid waste collection and transportation contractors and subcontractors to those provisions. By requiring local agencies to give a bidding preference to those contractors and subcontractors, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The heading of Chapter 4.6 (commencing with
2Section 1070) of Part 3 of Division 2 of the Labor Code is amended
3to read:

4 

5Chapter  4.6. Public Transitbegin delete Serviceend deletebegin insert and Solid Waste
6Collection and Transportation Servicesend insert
 Contracts
7

 

8

SEC. 2.  

Section 1070 of the Labor Code is amended to read:

9

1070.  

The Legislature finds and declares all of the following:

10(a) That when publicbegin delete transitend delete agenciesbegin insert with jurisdiction over
11public transit or solid waste collection and transportation servicesend insert

12 award contracts to operate bus andbegin delete railend deletebegin delete servicesend deletebegin insert rail services, or
13to provide solid waste collection and transportation services,end insert
to
14a new contractor, qualified employees of the prior contractor who
15are not reemployed by the successor contractor face significant
16economic dislocation as a result.

17(b) That those displaced employees rely unnecessarily upon the
18unemployment insurance system, public social services, and health
19programs, increasing costs to these vital government programs
20and placing a significant burden upon both the government and
21the taxpayers.

22(c) That it serves an important social purpose to establish
23incentives for contractors who bidbegin insert onend insert public transitbegin delete servicesend deletebegin insert or
24solid waste collection and transportation serviceend insert
contracts to retain
25qualified employees of the prior contractor to perform the same
26or similar work.

27

SEC. 3.  

Section 1071 of the Labor Code is amended to read:

P3    1

1071.  

The following definitions applybegin delete throughoutend deletebegin insert toend insert this
2chapter:

3(a) “Awarding authority” means any local government agency,
4including any city, county, special district, transit district, joint
5powers authority, or nonprofit corporation that awards or otherwise
6enters into contracts for public transitbegin insert or solid waste collection
7and transportationend insert
services performed within the State of
8California.

9(b) “Bidder” means any person who submits a bid to an
10awarding agency for a public transitbegin insert or solid waste collection and
11transportationend insert
service contract or subcontract.

12(c) “Contractor” means any person who enters into a public
13transitbegin insert or solid waste collection and transportationend insert service contract
14with an awarding authority.

15(d) “Employee” means any person who works for a contractor
16or subcontractor under a contract. “Employee” does not include
17an executive, administrative, or professional employee exempt
18from the payment of overtime compensation within the meaning
19of subdivision (a) of Section 515 or any person who is not an
20“employee” as defined under Section 2(3) of the National Labor
21Relations Act (29 U.S.C. Sec. 152(3)).

22(e) “Person” means any individual, proprietorship, partnership,
23joint venture, corporation, limited liability company, trust,
24association, or other entity that may employ individuals or enter
25into contracts.

26(f) “Public transit services” means the provision of passenger
27transportation services to the general public, including paratransit
28service.

29(g) “Service contract” means any contract the principal purpose
30of which is to provide public transitbegin insert or solid waste collection and
31transportationend insert
services through the use of service employees.

begin insert

32(h) “Solid waste” has the same meaning as defined in Section
3340191 of the Public Resources Code.

end insert
begin delete

34(h)

end delete

35begin insert(i)end insert “Subcontractor” means any person who is not an employee
36who enters into a contract with a contractor to assist the contractor
37in performing a service contract.

38

SEC. 4.  

If the Commission on State Mandates determines that
39this act contains costs mandated by the state, reimbursement to
40local agencies and school districts for those costs shall be made
P4    1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.



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