BILL ANALYSIS �
AB 1586
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GOVERNOR'S VETO
AB 1586 (Holden)
As Amended August 18, 2014
2/3 vote
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|ASSEMBLY: |52-23|(May 27, 2014) |SENATE: |23-11|(August 20, |
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|ASSEMBLY: |50-25|(August 22, 2014) |
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Original Committee Reference: A. & A.R.
SUMMARY : Expands the requirements for providing priority hiring
consideration for state contracts for services exceeding
$200,000 by requiring contractors to consider all qualified job
applicants that receive or have exhausted unemployment insurance
benefits; or, reside in specified targeted employment areas
(TEA) when filling vacancies funded by the contract.
The Senate amendments revise the definition of "priority
consideration" to require contractors to consider all qualified
job applicants who apply within five working days of the listing
of the job opening instead of requiring contractors to hire all
qualified job applicants, as specified, before hiring any other
applicant.
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 Work
Opportunity and Responsibility for Kids (CalWORKs) program aid.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
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1)Unknown, likely minor impact on state contracting costs.
2)There may be increased costs to the extent that a contractor's
costs to review employment qualifications and determine
eligibility for priority consideration are built into bid
prices.
3)There could be reduced costs to the state 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.
4)Likely minimal cost impacts on the Employment Development
Department (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 UI benefits of available jobs
related to a state contract.
COMMENTS : 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.
GOVERNOR'S VETO MESSAGE :
This bill requires state contractors, when hiring for
specified positions, to consider all qualified
applicants who are receiving unemployment benefits,
who have exhausted unemployment benefits, or who live
in a targeted employment area.
As currently drafted, this bill lacks clarity as to
what exactly employers must do to be in compliance,
making it very difficult to enforce. Additionally,
the bill revives the targeted employment areas created
under the Enterprise Zone Act, which was repealed last
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year, and does not effectively integrate the job
posting and notification capability of the CalJOBS Web
site managed by the Employment
Development Department.
Therefore, I am directing my Employment Development
Department to work with the author on a bill that
addresses these issues for consideration next year.
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600
FN: 0005624