BILL ANALYSIS Ó
AB 1669
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1669 (Roger Hernández) - As Amended March 8, 2016
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|Policy |Labor and Employment |Vote:|5 - 2 |
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| | Local Government | | 6- 3 |
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY:
This bill extends an existing bid preference for public transit
contractors who agree to retain employees to also include
contracts for the collection and transportation of solid waste.
AB 1669
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FISCAL EFFECT:
Potential GF state reimbursable mandated costs, likely minor, to
extend a 10 percent bid preference to solid waste handling and
recycling contractors. Existing law authorizes a similar local
bid preference for public transit services. No test claims have
been filed with the Commission on State Mandates for the public
transit bid preference.
COMMENTS:
1)Purpose. Current law requires local agencies that put out a
bid for public transit services to provide a 10% bidding
preference to any bidder who agrees to retain employees of the
prior contractor or subcontractor for at least 90 days. The
law does not require a new contractor to retain employees of
the prior contractor unless the bid preference is granted, nor
does it require a new contractor to pay the same wages or
offer the same benefits as the former contractor. The law,
which has been in place since 2003, is intended to provide a
measure of job security to transit workers when a local agency
changes transit service contracts.
This bill, sponsored by the California Teamsters Public
Affairs Council, would apply the 10% bid preference to
contractors for the collection and transportation of solid
waste. This bill would apply to 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 the
collection and transportation of solid waste in California.
This bill is sponsored by the California Teamsters Public
Affairs Council.
AB 1669
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2)Prior related legislation. This bill is similar to AB 508
(Swanson) from 2011. AB 508 was referred to, but never heard,
in the Senate Appropriations Committee.
3)Support. According to the sponsor, when cities and counties
contract for services like solid waste disposal, they are
often focused on the costs of the bids, the level of service
provided, and the type of diversion offered. In many cases,
the workers fall through the cracks and are laid off or
replaced when a new contract is put in place. This bill
rewards companies who retain existing solid waste service
employees for ninety days after the new contract takes effect
with a 10% bid preference. This allows the company an
opportunity to decide whether to retain the employee, while
giving the employee additional time to prepare for a possible
layoff job. Existing law already provides such a preference
in bids for transit services.
4)Opposition. The Solid Waste Association of North America is
opposed to this bill. According to the opposition, local
governments should have authority over contracting and
employment decisions to provide the most cost effective
services. Preference for one contractor or subcontractor over
another should not be pre-determined by a requirement that may
be inappropriate based on unique contracting, staffing, and
economic circumstances that local governments may face.
Bidders have the option to retain previous employees and local
governments already have the right to put such terms in
procurement documents to meet local needs.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
AB 1669
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319-2081