BILL ANALYSIS �
AB 1586
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Date of Hearing: May 14, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1586 (Holden) - As Amended: May 7, 2014
Policy Committee:
AccountabilityVote:10-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill 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:
1)Gives priority hiring consideration to the following
categories of individuals for specified contracts greater than
$200,000:
a) Individuals receiving or who have exhausted unemployment
insurance benefits.
b) Individuals living in a targeted employment area
(unemployment at least 150% of the national average).
2)Defines priority consideration to mean that the contractor
shall hire a qualified job applicant, as determined by the
employer, who meets one or more of the criteria specified
above-or who meets the existing hiring criterion, which is for
qualified participants in the CALWORKS program-and who apply
within five working days of the job opening being listed with
the Employment Development Department (EDD).
FISCAL EFFECT
No direct state costs. The bill could impact who state
contractors hire among those applicants they deem qualified. To
the extent the bill leads to more hiring of those on state
assistance programs, there could be minor savings in these
programs.
AB 1586
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COMMENTS
Purpose . 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.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081