Senate BillNo. 599

Introduced by Senator Mendoza

February 27, 2015

An act to amend Section 1071 of the Labor Code, relating to employment.


SB 599, as introduced, Mendoza. Employment: public transit service contracts.

Existing law requires a local government agency to give a 10% preference to any bidder on a service contract to provide public transit services who agrees to retain employees of the prior contractor or subcontractor for a period of not less than 90 days, as specified.

This bill would expand these provisions to require a state agency to also give a 10% preference to any bidder under these provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1


Section 1071 of the Labor Code is amended to



The following definitions apply throughout this chapter:

4(a) “Awarding authority” means anybegin insert state orend insert local government
5agency,begin delete includingend deletebegin insert including, but not limited to,end insert any city, county,
6special district, transit district, joint powers authority, or nonprofit
7corporation that awards or otherwise enters into contracts for public
8transit services performed within thebegin delete State of California.end deletebegin insert state.end insert

9(b) “Bidder” means any person who submits a bid to an
10awarding agency for a public transit service contract or subcontract.

P2    1(c) “Contractor” means any person who enters into a public
2transit service contract with an awarding authority.

3(d) “Employee” means any person who works for a contractor
4or subcontractor under a contract. “Employee” does not include
5an executive, administrative, or professional employee exempt
6from the payment of overtime compensation within the meaning
7of subdivision (a) of Section 515 or any person who is not an
8“employee” as defined under Section 2(3) of thebegin insert federalend insert National
9Labor Relations Act (29 U.S.C. Sec. 152(3)).

10(e) “Person” means any individual, proprietorship, partnership,
11joint venture, corporation, limited liability company, trust,
12association, or other entity that may employ individuals or enter
13into contracts.

14(f) “Public transit services” means the provision of passenger
15transportation services to the general public, including paratransit

17(g) “Service contract” means any contract the principal purpose
18of which is to provide public transit services through the use of
19service employees.

20(h) “Subcontractor” means any person who is not an employee
21who enters into a contract with a contractor to assist the contractor
22in performing a service contract.