BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1978 (Gonzalez) - Employment:  property service workers
          
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          |Version: June 22, 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 1978 would (1) create a registration process for  
          janitorial employers, and (2) require sexual harassment and  
          violence prevention training for janitorial workers.


          Fiscal  
          Impact: The Department of Industrial Relations (DIR) estimates  
          that it would incur initial costs of $3.5 million and ongoing  
          costs of $2.3 million to implement the provisions of the bill  
          (special fund). These costs would be somewhat offset by the  
          bill's proposed registration fee and civil penalties. It is  
          difficult to estimate how many employers would be required to  
          register and whether the fees generated would fully cover the  
          costs of the program. DIR has the authority to increase fees if  
          necessary.









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          Background:  The UC Berkeley Labor Center recently released a report with  
          the following findings related to the janitorial industry: (1)  
          research statistics and in-depth interviews suggest that women  
          janitors are at risk of sexual harassment and assault in what  
          are often isolated working conditions, (2) sexual harassment  
          policies are not in place or are inadequate or unenforced, (3)  
          workers may not know to whom they can report harassment, even if  
          they know harassment is illegal, (4) supervisors are often not  
          trained on how to respond, and (5) janitors are  
          disproportionately workers of color and immigrants; 75 percent  
          of contracted janitors were born outside the U.S.


          Proposed Law:  
          This bill would create the Property Services Workers Protection  
          Act, which seeks to protect janitorial employees from wage theft  
          and sexual harassment. Specifically, this bill would, among  
          other things, do the following. 
           Require DSLE, no later than January 1, 2018, to do the  
            following:


               o      Develop worker and supervisor agendas, handouts,  
                 facilitation guides, and other materials for a four-hour  
                 training regarding sexual harassment, sexual violence,  
                 and human trafficking that are appropriate for the  
                 janitorial industry and the languages and literacy levels  
                 of covered workers, as specified.  DLSE shall provide  
                 these materials in all languages that are the language  
                 spoken at home of at least 2,000 janitors who reside in  
                 the state, and shall update these materials annually.


               o      Establish requirements that employers shall require  
                 all covered workers and supervisors, to at least  
                 annually, receive comprehensive, accurate and appropriate  
                 in-person training lasting at least four hours regarding  
                 sexual harassment and sexual assault that provides an  
                 opportunity for interactive questions and answers, as  
                 specified.


               o      Establish minimum qualification standards for  
                 trainers who may deliver such training, including but not  








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                 limited to, a minimum of three years of experience  
                 conducting adult education with non-English speakers with  
                 a reading ability at or below the fifth grade level in  
                 the language spoken at home. The collective bargaining  
                 agent that represents the employer's covered workers or  
                 the designee of the collective bargaining agent may  
                 deliver such trainings.


               o      Establish requirements for employers to maintain  
                 accurate records of training, as specified.


               o      Require employers to post and display prominently a  
                 notice, developed by the DLSE and posted on its website,  
                 that informs covered workers of their rights under the  
                 sexual harassment and human trafficking laws, contain  
                 examples of illegal employer conduct, and provide the  
                 contact information for local resources to assist those  
                 who have experienced sexual harassment and human  
                 trafficking.


               o      Appoint, along with the Division of Occupational  
                 Safety and Health, an advisory group of stakeholders to  
                 assist them in carrying out their respective  
                 responsibilities under this bill. The advisory group must  
                 include representatives from at least one nonprofit  
                 organization that advocates for policies and standards to  
                 prevent workplace sexual violence and harassment in the  
                 janitorial industry, and from a labor organization that  
                 represents covered workers.


               o      Issue such regulations as are necessary to carry out  
                 this bill.


                 Require the Occupational Safety and Health Standards  
               Board, no later than July 1, 2018, to adopt standards that  
               require an employer to adopt a workplace sexual violence  
               and sexual harassment prevention plan, as a part of its  
               injury and illness prevention plan, to protect covered  
               workers from sexual violence and harassment.








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                 Provide that on and after January 1, 2018, no employer  
               may conduct any janitorial business without a valid  
               registration and all employers must be registered with  
               DLSE.


                 Provide that, in order to qualify for a certificate of  
               registration or renewal, an employer shall:


               o      Beginning January 1, 2018, register with DLSE and  
                 pay an initial application fee of $500 and an annual  
                 renewal fee of $500.


               o      Execute a written application, under penalty of  
                 perjury, that contains specified information, including  
                 an oath that the employer shall follow all applicable  
                 federal, state, and local laws.


               o      Provide evidence, disclosures, or releases under  
                 penalty of perjury, as are necessary to establish  
                 specified information, including proof of workers'  
                 compensation coverage and if the employer is liable for  
                 any delinquent liabilities, which includes unpaid wages  
                 and arbitration awards due to sexual harassment,  
                 including interest, fines, and penalties.


                 Establish specified posting and recordkeeping  
               requirements for covered employers.


                 Provide that DLSE shall not grant registration or  
               renewal of registration to specified employers, including  
               lacking workers' compensation coverage, made false  
               statements or has not submitted the necessary application  
               information, or has a delinquent liability to the state or  
               a worker.










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                 Authorize DLSE to revoke, suspend, or place a  
               registration on probation if specified requirements are  
               met, including failing to maintain a bond for payment of a  
               delinquent liability.


                 Require DLSE to establish a Property Services Compliance  
               Unit to enforce the requirements of this bill.


                 Establish civil penalties of $2,500 for failing to have  
               a current and valid registration or violating the  
               provisions of this act.


                 Establish additional civil penalties against any  
               employer that has been previously assessed civil penalties  
               to an additional penalty of one hundred dollars ($100) for  
               each calendar day that the employer conducts business in  
               violation of Act, not to exceed one hundred thousand  
               dollars ($100,000).


                 Authorize DLSE to issue a stop order against an employer  
               that is conducting business without a valid registration,  
               and establishes criminal penalties for an employer that  
               fails to observe a stop order.


                 Establish the State Janitorial Contractor Registration  
               Fund, to be funded by registration fees and civil  
               penalties.  Moneys in the Fund shall only be used for  
               administering the registration of janitorial contractors  
               and the administration and enforcement of the requirements  
               of this bill.


                 Permit DLSE to audit employers in order to ensure  
               compliance with this Act.


                 Provide that, after February 1, 2018, DIR's website  
               shall include a regularly updated, searchable database of  
               registered covered employers.  The database will have the  








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               capability to search all data for at least the past ten  
               years, and will include specified information.


                 Provide that after July 1, 2018, DIR's website shall  
               include a searchable database regarding its compliance and  
               enforcement activities.  The database will have the  
               capability to search all data for at least the past ten  
               years, and will include specified information.  


                 Extend FEHA liability due to sexual harassment or  
               violence by a janitorial employer or supervisor to a person  
               or entity who contracts or subcontracts with a janitorial  
               employer who lacks a current or valid registration.


                 Create a presumption that a person or entity that  
               contracts with a janitorial employer who has a current and  
               valid registration is NOT liable for a FEHA violation due  
               to sexual harassment or violence by a janitorial employer  
               or supervisor against a janitorial worker.







          Related  
          Legislation: AB 350 (Solorio) of 2011 would have expanded the  
          provisions of existing law which requires janitorial or building  
          maintenance service contractors to retain employees for 60 days  
          following the awarding of a contract. The bill failed passaged  
          on the Senate Floor.


          Staff  
          Comments: This bill would create significant new workload for  
          DIR. As noted above, the department estimates costs of $3.5  
          million initially and $2.3 million ongoing, offset to some  
          extent by registration fees and civil penalties. It is difficult  
          to estimate how many employers would be required to register and  
          whether the fees generated would fully cover the costs of the  








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          program. DIR has the authority to increase fees if necessary.
          DIR would allocate these new resources for staff to operate the  
          Property Services registration unit and administer the  
          additional enforcement requirements posed by the bill.  A  
          one-time allocation would be required to develop the sexual  
          harassment and violence prevention training materials as  
          specified with ongoing resources to handle translating updated  
          materials.  Additionally the Department would require resources  
          to create the database required by this bill and estimates costs  
          for ongoing maintenance.


          Any local government costs resulting from the mandate in this  
          measure are not state-reimbursable because the mandate only  
          involves the definition of a crime or the penalty for conviction  
          of a crime.
          




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