BILL ANALYSIS Ó AB 1890 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1890 (Dodd) - As Introduced February 11, 2016 ----------------------------------------------------------------- |Policy | Labor |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 1890 Page 2 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. AB 1890 Page 3 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. AB 1890 Page 4 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 Page 5