Amended in Assembly March 8, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 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 amended, Roger Hernández. Displaced employees: begin delete solid waste collection and transportation services contracts. end delete begin insert service contracts: collection and transportation of solid waste. end insert

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 begin delete add employees of solid waste collection and transportation contractors and subcontractors to those provisions. end delete begin insert make these provisions applicable to contracts for the collection and transportation of solid waste. end insert By requiring local agencies to give a bidding preference begin insert under these provisions end insert to those contractors and begin delete subcontractors, end delete begin insert subcontractors for the collection and transportation of solid waste, end insert 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:

SECTION 1.  

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

 

Chapter  4.6. Public Transit begin insert Service Contracts end insert and begin delete Solid
Waste end delete begin insert Contracts for the end insert Collection and Transportation
begin delete Services Contracts end delete begin insert of Solid end insert begin insert Waste end insert

 

SEC. 2.  

Section 1070 of the Labor Code is amended to read:

1070.  

The Legislature finds and declares all of the following:

(a) That when public agencies with jurisdiction over public
transit begin delete or solid waste collection and transportation services end delete begin insert services
or the collection and transportation of solid waste end insert award contracts
to operate bus and rail services, or to provide begin delete solid waste collection
and transportation services, to end delete begin insert for the collection and transportation
of solid waste to end insert a new contractor, qualified employees of the prior
contractor who are not reemployed by the successor contractor
face significant economic dislocation as a result.

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

(c) That it serves an important social purpose to establish
incentives for contractors who bid on public transit begin delete or solid waste
collection and transportation service contracts end delete begin insert service contracts
or contracts for the collection and transportation of solid waste end insert
to retain qualified employees of the prior contractor to perform
the same or similar work.

SEC. 3.  

Section 1071 of the Labor Code is amended to read:

1071.  

The following definitions apply to this chapter:

(a) “Awarding authority” means any local government agency,
including any city, county, special district, transit district, joint
powers authority, or nonprofit corporation that awards or otherwise
enters into contracts for public transit begin delete or solid waste collection and
transportation services end delete begin insert services or for the collection and
transportation of solid waste end insert performed within the State of
California.

(b) “Bidder” means any person who submits a bid to an
awarding agency for a public transit begin delete or solid waste collection and
transportation service contract or subcontract. end delete begin insert service contract, a
contract for the collection and transportation of solid waste, or a
subcontract. end insert

(c) “Contractor” means any person who enters into a public
transit begin delete or solid waste collection and transportation service contract end delete
begin insert service contract or a contract for the collection and transportation
of solid waste end insert with an awarding authority.

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

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

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

(g) “Service contract” means any contract the principal purpose
of which is to provide public transit begin delete or solid waste collection and
transportation end delete services begin insert or the collection and transportation of solid
waste end insert through the use of service employees.

(h) “Solid waste” has the same meaning as defined in Section
40191 of the Public Resources Code.

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

SEC. 4.  

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