BILL ANALYSIS �
AB 1586
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 1586 (Holden) - As Introduced: February 3, 2014
SUBJECT : Public contracts: hiring: priority consideration
SUMMARY : Expands a hiring preference program for specified
state contracts that requires the contractor to give priority
consideration to specified individuals when filling position
vacancies funded by the contract. Specifically, this bill gives
priority hiring consideration to the following categories of
individuals for specified contracts greater than $200,000:
1)Individuals receiving or who have exhausted unemployment
insurance benefits.
2)Veterans of the Armed forces or the National Guard.
3)Parolees or individuals formerly convicted of a crime for
which time was served in state prison.
4)Individuals living in a targeted employment area (unemployment
that is 150% of the national average).
EXISTING LAW requires that state contracts in excess of
$200,000, with specified exceptions, contain a provision
requiring the contractor to give priority consideration in
filling vacancies in positions funded by the contract to
qualified participants of the CALWORKS program.
FISCAL EFFECT : Unknown
COMMENTS : Under existing law, state contractors are subject to
various requirements regarding the composition of their work
forces.
This bill expands upon a current preference that gives priority
consideration to participants in the CALWORKS program for
vacancies in positions funded by state contracts in excess of
$200,000. This bill would include four new categories for
priority consideration: individuals who have exhausted
unemployment benefits; veterans; parolees or formerly
incarcerated individuals; and individuals in targeted employment
AB 1586
Page 2
areas.
The original preference, established in 1984, sought to provide
a pathway for individuals receiving state welfare aid to
employment with contractors providing state services. It was
meant to increase employment opportunities for those on welfare
while reducing the cost of the state's welfare assistance. This
bill seeks to reduce unemployment in the additional specified
groups.
The California Chamber of Commerce raises concerns over the loss
of hiring discretion for those employers providing services to
the state. The opposition believes an employer should maintain
the discretion as to who to hire, including whether the
applicant is qualified to perform the job duties.
The Employment Development Department was unable to provide any
data with which to evaluate the success of the current program.
Expanding the categories of individuals that may receive the
priority consideration could increase their employment
opportunities.
COMMITTEE AMENDMENTS : In order to address issues raised by the
opposition and the concerns of others, the author has requested
the following amendments:
1)Remove provisions C) and D) of Section 10353 (a) (1) that
covers veterans, parolees and formerly incarcerated
individuals.
2)Add language to the definition of "priority consideration"
that allows employers to determine what applicants are
qualified for consideration.
REGISTERED SUPPORT / OPPOSITION :
Support
Legal Services for Prisoners with Children (prior version)
Opposition
California Chamber of Commerce (prior version)
Analysis Prepared by : William Herms / A. & A.R. / (916)
AB 1586
Page 3
319-3600