BILL ANALYSIS �
AB 1586
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ASSEMBLY THIRD READING
AB 1586 (Holden)
As Amended May 7, 2014
Majority vote
ADMINISTRATIVE REVIEW 10-3
APPROPRIATIONS 12-5
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|Ayes:|Frazier, Achadjian, |Ayes:|Gatto, Bocanegra, |
| |Buchanan, | |Bradford, |
| |Ian Calderon, Cooley, | |Ian Calderon, Campos, |
| |Lowenthal, Medina, Olsen, | |Eggman, Gomez, Holden, |
| |Quirk-Silva, Salas | |Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
|Nays:|Gorell, Hagman, Wagner |Nays:|Bigelow, Donnelly, Jones, |
| | | |Linder, Wagner |
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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 :
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 California Work Opportunity and
Responsibility for Kids (CalWORKS) program-and who apply
within five working days of the job opening being listed with
the Employment Development Department (EDD).
AB 1586
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FISCAL EFFECT : According to the Assembly Appropriations
Committee, there are 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.
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 two new categories for
priority consideration: individuals who have exhausted
unemployment benefits; and individuals in targeted employment
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 EDD 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.
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600
AB 1586
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FN: 0003452