BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1669 (Roger Hernández) - Displaced employees: service
contracts: collection and transportation of solid waste
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|Version: June 27, 2016 |Policy Vote: L. & I.R. 4 - 1 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 1, 2016 |Consultant: Robert Ingenito |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 1669 would require a ten percent bid preference for
bidders who agree to retain the employees of the prior
contractor or subcontractor on local agency contracts for the
collection and transportation of solid waste.
Fiscal
Impact: This bill could result in a General Fund state
reimbursable mandate on local government, the magnitude of which
is unknown, but potentially in the low hundreds of thousands of
dollars annually.
Background: Current law requires local agencies that put out a bid for
public transit services to provide a 10 percent bidding
preference to any bidder who agrees to retain employees of the
AB 1669 (Roger Hernández) Page 1 of
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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.
Proposed Law:
This bill would extend the existing 10 percent bid preference
for public transit contractors who agree to retain employees, as
specified, from a prior contractor or subcontractor to also
include contracts for the collection and transportation of solid
waste.
Related Legislation:
SB 599 (Mendoza) of 2015 would have extended the
provisions on the existing 10 percent bid preference for
transit contracts to such contracts with the State. This
bill was vetoed by the Governor.
AB 508 (Swanson) of 2011 was very similar, but not
identical, to this bill and would have added contracts for
solid waste handling and recycling to the existing 10
percent bid preference provisions. AB 508 was referred to,
but never heard, in this Committee.
SB 158 (Alarcon), Statutes of 2003, Chapter 103, created
the bid preference for contracted transit services for
public agencies.
Staff
Comments: The California Constitution requires the State to
reimburse local agencies and school districts for certain costs
it mandates. If the Commission on State Mandates (Commission)
AB 1669 (Roger Hernández) Page 2 of
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were to determine that the bill contains such mandated costs,
state reimbursement would be required. The 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.
Consequently, the fiscal impact of this bill depends on the
extent to which local agencies file claims with the Commission.
The number of future claims in unknown.
As previously noted, current law authorizes a similar local bid
preference for public transit services. No test claims have been
filed with the Commission for the public transit bid preference.
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