BILL ANALYSIS Ó
SB 599
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Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 599
(Mendoza) - As Introduced February 27, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill extends a ten percent bid preference for bidders on
public transit contracts who agree to retain the employees of
the prior contractor of subcontractor to all public transit
contracts awarded by the State of California.
SB 599
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FISCAL EFFECT:
Costs from this measure are unknown, but potentially
significant, to the extent state contracts are awarded to other
than the lowest bidder due to the preference. The only transit
contract currently awarded by the state appears to be the
transit operation at Hearst San Simeon State Historical Monument
(Hearst Castle). Hearst Castle's current transit contract is
valued at roughly $22 million and is up for renewal in 2023. For
illustration, assuming the subsequent contract is for the same
amount and duration, the 10% bid preference could lead to
increased costs to the Department of Parks and Recreation of
$2.2 million, or an average of $220,000 annually (special
funds).
COMMENTS:
1)Purpose. Existing law requires a local government agency to
give a 10% preference to any bidder on a service contract to
provide public transit service if they agree to retain
employees of the prior contractor or subcontractor for not
less than 90 days. This law does not currently apply to state
contracts. Supporters of the bill, including California
Teamsters Public Affairs Council, believe this law should be
extended to state transit contracts and cite an incident at
Hearst Castle where the lowest bidder terminated the
employment of existing drivers as an example of the need for
this bid preference.
2)Prior legislation.
a) SB 263 (Monning) of 2014 is identical to this bill. SB
263 was held on the Suspense file in this committee.
b) SB 232 (Monning) of 2013, as introduced, is identical to
this bill. SB 232 was subsequently amended to address
SB 599
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issues related to the California Central Coast State
Veterans Cemetery at Fort Ord Endowment Fund.
c) SB 158 (Alarcon), Chapter 103, Statutes of 2003 created
the 10% bid preference for contracted transit services for
local government agencies.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081