BILL ANALYSIS �
Bill No: AB
1586
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 1586 Author: Holden
As Amended: May 7, 2014
Hearing Date: June 10, 2014
Consultant: Paul Donahue
SUBJECT
State contracts: Hiring preference
DESCRIPTION
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 service contracts
greater than $200,000:
a) Individuals receiving or who have exhausted
unemployment insurance benefits.
b) Individuals living in a targeted employment area,
where unemployment is 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 criteria for qualified participants in the
California Work Opportunity and Responsibility for Kids
(CalWORKS) program - and who apply within five working
AB 1586 (Holden) continued
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days from the date on which the job opening is listed
with the Employment Development Department (EDD).
EXISTING LAW
Existing law requires that specified contracts, in an
amount that exceeds $200,000, entered into by any state
agency for services contain a provision requiring the
contractor to give priority consideration in filling
vacancies in positions funded by the contract to qualified
recipients of CalWORKs aid.
BACKGROUND
Purpose : According to the author, the problem under
current law is that people who are long term unemployed may
be discriminated against when looking for work for various
reasons. Currently California faces an 8.3% unemployment
rate meaning 3,154,000 Californians do not have jobs.
The author intends to help individuals who are on
unemployment or who have exhausted their unemployment
benefits to obtain gainful employment. According to the
U.S. Bureau of Labor Statistics those who are considered to
be long term unemployed are individuals that have been
unemployed for more than 27 weeks. Those who are long term
unemployed may face discrimination to find employment
because it is perceived by some employers that if they have
not been in the workforce for a certain amount of time then
they no longer obtain the skills to do work. The U.S.
Bureau of Labor Statistics states that as of January 2014
there are currently 3.6 million people that currently can
be defined as long term unemployed. The longer an
individual stays unemployed the less likely they are hired
past 52 weeks.
The author states that, in order to assist those facing
discrimination because of a tough economy AB 1586 will help
qualified people who have been long term unemployed to find
work.
Program background : This bill expands upon a current
preference that gives priority consideration to
participants in the CalWORKS program for vacancies in
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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 intended to increase employment
opportunities for those on welfare while reducing the cost
of the state's welfare assistance. The EDD is unable to
provide any data with which to evaluate the success of the
current program.
Support : Writing in support of AB 1586, Legal Services for
Prisoners with Children notes that, despite the importance
of access to employment in preventing recidivism and
promoting public safety, qualified job applicants in
California are often plagued by old criminal records and
discouraged from applying because of discrimination by
employers. AB 1586 would ameliorate this problem, they say,
and California benefits when people with criminal records
are no longer shut out of jobs and can financially support
their families.
PRIOR/RELATED LEGISLATION
AB 2022 (Medina), 2013-2014 Session. Redefines persons with
a high risk of unemployment (for purposes of the Target
Area Contract Preference Act) to include a person that has
been unemployed for a specified period of time, a veteran
who served in active duty since September 11, 2001, a
person who has been convicted of a felony, or a person who
receives benefits of the Supplemental Nutrition Assistance
Program. (Pending in Senate Business, Professions and
Economic Development Committee)
AB 2304 (Davis), Chapter 759, Statutes of 2000. Among other
things, clarifies that certain state provisions relating to
contracts in excess of $200,000 apply to personal services
contracts. The provisions relate to contractors giving
priority consideration in filling vacancies to qualified
recipients of state assistance.
SUPPORT:
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Legal Services for Prisoners with Children
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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