BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1586|
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THIRD READING
Bill No: AB 1586
Author: Holden (D), et al.
Amended: 8/18/14 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 6-2, 6/10/14
AYES: Correa, De Le�n, Galgiani, Hernandez, Padilla, Torres
NOES: Cannella, Vidak
NO VOTE RECORDED: Berryhill, Lieu, Vacancy
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 52-23, 5/27/14 - See last page for vote
SUBJECT : Public contracts: hiring: priority consideration
SOURCE : Author
DIGEST : This bill expands a hiring preference program for
specified state contracts that requires the contractor to give
"priority consideration," as defined, to specified individuals
when filling position vacancies funded by the contract.
ANALYSIS : 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 California
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Work Opportunity and Responsibility for Kids (CalWORKs) program
aid.
This bill:
1.Expands a hiring preference program for specified state
contracts greater than $200,000 that require the contractor to
give priority consideration to the following individuals when
filling position vacancies funded by the contract:
A. Individuals receiving or who have exhausted unemployment
insurance benefits.
B. Individuals living in a targeted employment area (TEA),
where unemployment is at least 150% of the national
average.
1.Defines "priority consideration" to mean that the contractor
shall consider 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 CalWORKS program - and who apply
within five working days from the date on which the job
opening is listed with the Employment Development Department
(EDD).
Background
Existing law authorizes individuals who are currently unemployed
or working part-time to apply to EDD for unemployment insurance
benefits. An unemployment claim is effective for one year and
claimants can receive 12-26 weeks of full benefits. During
periods of high unemployment, additional benefits may be granted
by Congress or the Legislature. According to EDD statistics
from June 2014, there are more than 557,000 individuals
certifying for benefits on a regular unemployment claim in
California, and there are nearly 1,275,000 unemployed workers
who have exhausted benefits.
Recently repealed statutes, the Enterprise Zone Act, defined a
"targeted employment area" as an area within a city or county
that is composed of census tracts designated by the U.S.
Department of Housing and Urban Development as having at least
51% of its residents of low- or moderate-income levels. It is
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unknown how many Californians are residents of a TEA under the
former Enterprise Zone Act, but the San Francisco TEA alone
accounted for nearly 375,000 residents as of the 2010 census, so
it is likely that the statewide figure could be in the low
millions.
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 includes two new categories for priority
consideration: individuals who have exhausted unemployment
benefits; and individuals in TEAs.
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. EDD is unable to provide any data with which to
evaluate the success of the current program.
Comments
According to the author's office, the problem under existing 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.
This bill 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's office states that, in order to assist those facing
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discrimination because of a tough economy, this bill will help
qualified people who have been long-term unemployed to find
work.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Unknown, likely minor impact on state contracting costs.
There may be increased costs to the extent that a contractor's
costs to vet employment qualifications and determine
eligibility for priority consideration are built into bid
prices. (General and special funds)
There could be reduced costs to the state (Unemployment Fund)
if the bill results in the hiring of persons currently
receiving unemployment benefits who are not also currently
recipients of aid under the CalWORKs program.
Likely minimal cost impacts on EDD because, unlike the current
requirements to notify CalWORKs recipients of available jobs,
this bill does not require EDD to notify persons residing in
TEAs, or those who receive or have exhausted unemployment
insurance benefits of available jobs related to a state
contract.
SUPPORT : (Verified 8/13/14)
Legal Services for Prisoners with Children
National Association of Social Workers, California Chapter
ARGUMENTS IN SUPPORT : 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. This bill ameliorates 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.
ASSEMBLY FLOOR : 52-23, 5/27/14
AYES: Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonilla,
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Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
Chesbro, Cooley, Dababneh, Dickinson, Eggman, Fong, Frazier,
Garcia, Gomez, Gonzalez, Gordon, Gray, Hall, Roger Hern�ndez,
Holden, Jones-Sawyer, Levine, Lowenthal, Medina, Mullin,
Nazarian, Olsen, Pan, Perea, John A. P�rez, V. Manuel P�rez,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner,
Stone, Ting, Weber, Wieckowski, Williams, Yamada, Atkins
NOES: Allen, Bigelow, Ch�vez, Conway, Dahle, Donnelly, Beth
Gaines, Gatto, Gorell, Grove, Hagman, Harkey, Jones, Linder,
Logue, Maienschein, Mansoor, Melendez, Muratsuchi, Nestande,
Wagner, Waldron, Wilk
NO VOTE RECORDED: Daly, Fox, Patterson, Quirk-Silva, Vacancy
MW:e 8/16/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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