BILL ANALYSIS Ó
AB 1669
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CONCURRENCE IN SENATE AMENDMENTS
AB
1669 (Roger Hernández)
As Amended June 27, 2016
Majority vote
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|ASSEMBLY: |52-26 |(May 5, 2016) |SENATE: |22-13 |(August 16, |
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Original Committee Reference: L. & E.
SUMMARY: 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,
as specified.
The Senate amendments:
1)Provide that this bill shall not apply to contracts awarded
before January 1, 2017, or to contracts for which the bid
process has been completed before January 1, 2017.
2)Provide that this bill shall only apply to service contracts
for the collection and transportation of solid waste when an
awarding agency decides to let an exclusive solid waste
collection and transportation contract out to bid.
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3)Provide that this bill is not intended to determine whether or
not a local agency should procure a service contract by
inviting bids, extend an existing service contract,
renegotiate its service contract with the prior contractor, or
exercise any other right it possesses pursuant to specified
existing law to determine aspects of solid waste handling that
are of local concern.
4)Provide that this bill does not modify, limit, or abrogate in
any manner any franchise, contract, license, or permit granted
or extended by a city, county, or other local government
agency before January 1, 2017.
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
AB 1669
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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.
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 Senate Appropriations
Committee, 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.
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COMMENTS: Existing law already establishes a 10% bidding
preference for public transit service contractors and
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 argue that, while well-intentioned, the type of bid
preference created by this bill is nonessential to the service
being delivered. There are many other considerations for
contracting with a waste hauler in order to provide maximum
benefit, such as rates, ability to service a community, and the
ability to meet state diversion requirements. Opponents argue
that there are already significant limitations for what local
governments can and cannot contract. This bill simply adds
another unnecessary layer of bureaucratic red tape at the
expense of scare taxpayer resources.
AB 1669
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Analysis Prepared by:
Ben Ebbink / L. & E. / (916) 319-2091 FN:
0004008