BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1890


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          Date of Hearing:   April 13, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1890 (Dodd) - As Introduced February 11, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill creates the Equal Pay for Equal Work Act of 2016 to  
          specify certain nondiscrimination policies in state contracting.  
           Specifically, this bill: 


          1)Requires an employer with 100 or more employees in California,  
            and a state contract of 30 days or more, to submit a  
            description of its nondiscrimination program to the Department  








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            of Fair Employment and Housing (DFEH) and periodic reports (no  
            more than annually) of its compliance with that program. 


          2)Specifies that an employer with fewer than 100 employees, or a  
            contract of less than 30 days, may be required to submit a  
            nondiscrimination program. 


          3)Authorizes DFEH to require approval and certification of a  
            nondiscrimination program and requires DFEH to define employee  
            for purposes of this bill. 


          4)Requires a nondiscrimination program to include policies and  
            procedures designed to ensure equal employment opportunities  
            for all applicants and employees, an analysis of employment  
            selection procedures, and a workforce analysis, as specified.


          5)Excludes an employee in the construction industry covered by a  
            valid collective bargaining agreement from the calculation of  
            the employer's total number of employees for purposes of the  
            nondiscrimination program requirement.


          6)Specifies that this bill shall not be construed to negate  
            exemptions to specified requirements in existence on January  
            1, 2017, as specified.


          FISCAL EFFECT:


          1)The Department of Fair Employment and Housing estimates  
            General Fund administrative costs of approximately $350,000 to  
            collect and store nondiscrimination program information and  
            process anticipated Public Record Act (PRA) requests. 









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            The department indicates they currently process 300 to 400 PRA  
            requests each month. A budget proposal is pending before the  
            Legislature to provide the department $148,000 GF and two  
            positions for existing PRA workload.  


          2)Significant General Fund cost pressures, potentially in the  
            millions of dollars annually, to the extent DFEH choses to  
            require approval and certification of contractors'  
            nondiscrimination programs.  Costs are also associated with  
            compliance monitoring to ensure state contractors have  
            policies for preventing unlawful discrimination.


          COMMENTS:


          1)Purpose. Existing state law provides that, prior to becoming a  
            contractor or subcontractor with the state, an employer may be  
            required to submit a nondiscrimination program to DFEH for  
            approval and certification, and may be required to submit  
            periodic reports of its compliance with that program.  This  
            bill seeks to strengthen this law by requiring an employer  
            with 100 or more employees in the state, and a state contract  
            of 30 days or more, to submit a description of its  
            nondiscrimination program to DFEH. 



          2)Background. The Department of Fair Employment and Housing  
            (DFEH) receives, investigates, conciliates, mediates, and  
            prosecutes complaints of alleged violations of the Fair  
            Employment and Housing Act (FEHA), Unruh Civil Rights Act,  
            Disabled Persons Act, and Ralph Civil Rights Act. At the core  
            of the DFEH's mission is the mandate to provide thorough,  
            timely and fair investigations of discrimination complaints  
            received from the public. 









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            Current DFEH regulations go beyond the permissive state  
            statutes with regard to nondiscrimination programs.  
            Specifically, DFEH regulations provide that all employers who  
            are, or wish to become, contractors with the state "must"  
            develop and implement a nondiscrimination program, unless  
            otherwise exempted.  (Title 2, California Code of Regulations,  
            Section 11102).


          


          3)Prior legislation. This bill is substantially similar to AB  
            1354 (Dodd) of 2015 which was vetoed by Governor Brown.   
            According to the veto message:
            "Currently, the department requires all state contractors to  
            develop and implement a nondiscrimination program meeting  
            certain requirements and also certify that they have done so,  
            under penalty of perjury. Furthermore, the department has  
            existing authority to require a contractor to submit this  
            information prior to contracting with the state, if  
            noncompliance is suspected. In light of these factors, I do  
            not believe this bill is necessary at this time."





          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081















                                                                    AB 1890


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