BILL ANALYSIS Ó
AB 1669
Page 1
ASSEMBLY THIRD READING
AB
1669 (Roger Hernández)
As Amended March 8, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Labor |5-2 |Roger Hernández, Chu, |Patterson, Linder |
| | |McCarty, O'Donnell, | |
| | |Thurmond | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Local |6-3 |Eggman, Alejo, |Waldron, Beth |
|Government | |Bonilla, Chiu, |Gaines, Linder |
| | |Cooley, Gordon | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |11-5 |Gonzalez, Bloom, |Bigelow, Chang, |
| | |Bonilla, Bonta, |Gallagher, |
| | |Calderon, Daly, |Obernolte, Wagner |
| | |Eggman, Roger | |
| | |Hernández, Quirk, | |
| | |Santiago, Wood | |
| | | | |
| | | | |
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AB 1669
Page 2
SUMMARY: Extends an existing bid preference for public transit
contractors who agree to retain employees (as specified) to also
include contracts for the collection and transportation of solid
waste.
EXISTING LAW:
1) Requires all bidders on public transit service contracts to
advise the awarding authority whether they will retain the
employees of the prior contractor/subcontractor.
2) Requires awarding authorities who put out a bid for public
transit service to provide a 10% bidding preference to
contractors and subcontractors who agree to retain the
employees of the prior contractor/subcontractor for a period
of at least 90 days.
3) Requires existing contractors to provide awarding authorities
with specified employee information, which will assist
bidding contractors/subcontractors in costing their bids.
4) Exempts contractors/subcontractors from retaining employees
for "cause," as defined.
5) Authorizes the new contractor/subcontractor to pay alternate
wages and provide alternate benefits from those of the prior
contractor/subcontractor.
6) Authorizes the new contractor/subcontractor to retain fewer
employees than the prior contractor, if necessary. In such a
situation, the employees shall be retained by seniority
within the given job classification.
AB 1669
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7) Authorizes employees who have not been offered employment or
who have been discharged in violation of the provisions of
this bill to bring suit against the contractor/subcontractor
in superior court.
8) Provides for remedy in the form of reinstatement, back pay,
benefits and attorney's fees and costs.
9) Obliges an awarding authority, after public hearing, to
terminate a contract substantially breached by a
contractor/subcontractor.
10)Provides that such a terminated contractor/subcontractor is
ineligible to bid or be awarded a contract/subcontract with
the terminating awarding authority for between one and three
years, to be determined by the awarding authority.
11)Also provides for employment retention protection for
employees of janitorial and building maintenance contractors,
as specified.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, this bill will result in potential General Fund state
reimbursable mandated costs, likely minor, to extend a 10% 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: Existing law already establishes a 10% bidding
preference for public transit service contractors and
AB 1669
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subcontractors who agree to retain employees of the previous
contractor for a period of at least 90 days. That requirement
was enacted by SB 158 (Alarcón), Chapter 103, Statues of 2003.
This bill would extend those requirements to contractors and
subcontractors who submit bids for contracts for the collection
and transportation of solid waste.
This bill is sponsored by the California Teamsters Public
Affairs Council. The sponsor states that this bill is intended
to prevent keeping workers from being displaced when a city's
contract for solid waste services changes companies. They argue
that 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
when contracts change hands. The existing workforce, trained
and experienced, is summarily laid off and replaced.
The sponsor contends that this bill rewards companies who retain
existing solid waste service employees for 90 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.
Opponents state that, although rehiring employees who are
threatened with the loss of their jobs is common in the solid
waste industry, they oppose the idea that this voluntary
practice should be codified into law. They state that there is
no evidence of a widespread failure to rehire employees when a
solid waste contract changes hands. Moreover, competition in
the solid waste industry has resulted in a consolidation of
contractors. Opponents argue that to the extent that a new
state law requiring a bid preference will mean an increase to
operating costs, it may drive even more companies into
extinction. Finally, they argue that sustaining the necessary
AB 1669
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degree of local control over solid waste collection activities
has been a cornerstone of California policy for over 100 years.
Analysis Prepared by:
Ben Ebbink / L. & E. / (916) 319-2091 FN:
0002755