BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 556
Author: Padilla (D), et al.
Amended: 8/21/14
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-1, 5/7/13
AYES: Evans, Corbett, Jackson, Leno, Monning
NOES: Anderson
NO VOTE RECORDED: Walters
SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 4-0, 5/8/13
AYES: Lieu, Leno, Padilla, Yee
NO VOTE RECORDED: Wyland
SENATE FLOOR : 24-13, 5/30/13
AYES: Beall, Block, Corbett, De Le�n, DeSaulnier, Evans,
Galgiani, Hancock, Hernandez, Hill, Jackson, Lara, Leno, Lieu,
Liu, Monning, Padilla, Pavley, Price, Roth, Steinberg, Wolk,
Wright, Yee
NOES: Anderson, Berryhill, Calderon, Cannella, Correa,
Emmerson, Fuller, Gaines, Huff, Knight, Nielsen, Walters,
Wyland
NO VOTE RECORDED: Hueso, Torres, Vacancy
ASSEMBLY FLOOR : 43-24, 8/25/14 - See last page for vote
SUBJECT : Providers of health and safety labor services:
identification
SOURCE : California Labor Federation
California Professional Firefighters
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DIGEST : This bill prohibits a person, firm, corporation, or
association that is a nongovernmental entity and contracts to
perform, on or after January 1, 2015, public health and safety
labor or services for a public agency from displaying on a
vehicle or uniform a logo, as defined, that reasonably could be
interpreted as implying that the labor or services are being
provided by employees of the public agency, unless the vehicle
or uniform conspicuously displays specific disclosures. This
bill prohibits a public agency from requiring a person or
employee of a nongovernmental entity providing public health and
safety labor or services under contract with the public agency
to wear a badge containing the logo of the public agency. This
bill prohibits a nongovernmental entity providing public health
and safety labor or services under contract with a public agency
from requiring a person or its employee to wear a badge
containing the logo of the public agency.
Assembly Amendments change the author, move the bill from Labor
to Civil Code, narrow scope, make provisions prospective from
January 1, 2015, provide that violations of its provisions are
subject to the remedies provided in the Consumers Legal Remedies
Act (CRLA), and make numerous changes.
ANALYSIS :
Existing law:
1.Authorizes an employer, without prohibition, to prescribe the
weight, color, quality, texture, style, form and make of
uniforms required to be worn by his/her employees.
2.Prohibits unfair or deceptive acts or practices undertaken by
any person in a transaction intended to result or which
results in the sale or lease of goods or services to any
consumer, including but not limited to the following:
A. Misrepresenting the source, sponsorship, approval, or
certification of goods or services.
B. Misrepresenting the affiliation, connection, or
association with, or certification by, another.
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C. Using deceptive representations or designations of
geographic origin in connection with goods or services.
D. Representing that goods or services have sponsorship,
approval, characteristics, ingredients, uses, benefits, or
quantities which they do not have or that a person has a
sponsorship, approval, status, affiliation, or connection
which he/she does not have.
1.Allows a person to bring an action for injunctive relief to
enforce alleged violations of the above prohibition on unfair
or deceptive acts. Also allows a person to bring an action
for damages for such violations, but only if, 30 days or more
before commencing the action, the plaintiff has notified the
alleged violator of the violation and demanded that he/she
correct the violation, and no appropriate correction was made
within 30 days of the notification.
This bill:
1.Makes it unlawful for a person, firm, corporation, or
association that is a nongovernmental entity and contracts to
perform public health and safety labor or services for a
public agency to display on a vehicle a logo of a public
agency that reasonably could be interpreted or construed as
implying that the labor or services are being provided by
employees of the public agency, unless the vehicle
conspicuously displays a statement indicating that the
contractor is the service provider, such as "SERVICE PROVIDED
BY:" or "CONTRACTED BY:" immediately followed by the logo
including the name of the contractor, and its place of legal
incorporation.
2.Makes it unlawful for a person, firm, corporation, or
association that is a nongovernmental entity and contracts to
perform public health and safety labor or services for a
public agency to display on a uniform a logo of a public
agency that reasonably could be interpreted or construed as
implying that the labor or services are being provided by
employees of the public agency, unless the uniform
conspicuously displays the logo including the name of the
contractor providing the labor for the public agency.
3.Clarifies that the "public health labor or services" to which
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this bill applies means fire protection services, rescue
services, emergency medical services, hazardous material
emergency response services, and ambulance services.
4.Requires the disclosure to be placed near the largest logo
referring to the public agency if the vehicle or uniform
displays more than one such logo.
5.Clarifies that the disclosures required by this bill shall
apply to all labor or services provided pursuant to a contract
entered into on or after January 1, 2015.
6.Prohibits a public agency from requiring, through a contract
with a nongovernmental entity to provide public health and
safety labor or services, that an employee of that
nongovernmental entity wears a badge containing the logo of
the public agency.
7.Prohibits a nongovernmental entity contracting to provide
public health and safety labor or services for a public agency
to require an employee of that nongovernmental entity to wear
a badge containing the logo of the public agency.
8.Provides that the disclosures required by this bill do not
apply to a public agency vehicle utilized by a nongovernmental
entity during a declared state or federal disaster,
mass-casualty incident, or other incident that requires the
use of state or federal resources when the public agency
requires the use of that vehicle.
9.Clarifies that the term "conspicuously displays" means to
display a disclosure on the exterior of a vehicle or uniform
in the same location as the logo of the public agency, placed
prominently as compared with other words or designs displayed
in connection with the logo of the public agency.
10.Clarifies that an identifying mark affixed to a uniform as
required by state or federal law, and a local agency
regulating the activity of the person, firm, corporation, or
association shall not be construed as implying that the labor
or services are being provided by employees of the public
agency.
11.Provides that violations of this act shall be subject to the
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remedies provided in the CLRA (Title 1.5 (commencing with
Section 1750) of Part 4), and that the duties, rights, and
remedies provided in this bill are in addition to any other
duties, rights, and remedies provided by state law.
Background
Under existing law, a contract of employment is a contract by
which one, who is called the employer, engages another, who is
called the employee, to do something for the benefit of the
employer or a third person. Existing law and regulations set
forth the conditions under which a person may be classified as
an independent contractor, and thus not subject to many wage,
overtime, working conditions, and various other labor standards.
The Employment Development Department (EDD), the Franchise Tax
Board, and the federal government are the primary entities that
have established criteria for making a determination as to
whether a person may be classified as an independent contractor.
EDD has developed a guide, worksheets, and forms to assist
businesses in determining whether a worker is an employee or
independent contractor.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 8/26/14)
California Labor Federation (co-source)
California Professional Firefighters (co-source)
Laborers' Locals 777 and 792
OPPOSITION : (Verified 8/26/14)
Association of California Health Districts
California Ambulance Association
California Special Districts Association
California State Association of Counties
Cities of Indian Wells, Newport Beach, Selma, and Winters
League of California Cities
Paramedics Plus
Rural County Representatives of California
Schaefer Ambulance Service
SEIU Local 5000
Urban Counties Caucus
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ARGUMENTS IN SUPPORT : Laborers' Locals 777 and 792 write,
"Today, given the growing California subcontracted workforce,
the relationship between the worker who shows up at the front
door and the company that sent them can be confusing to
California consumers. As such, the state has a responsibility
to prevent unfair or deceptive practices that may result in
confusing Californians when an otherwise government-provided
service is requested or required. And, when it comes to those
who render essential public services, including critical,
property and/or life-saving services, accountability becomes all
the more significant.
"Public awareness of who is actually providing critical public
services is essential to ensuring accountability. Indeed,
accountability is especially important when public agency
subcontractors seek to convey a particular image or branded
reputation through the use of an agency's logo."
ARGUMENTS IN OPPOSITION : The California State Association of
Counties, the League of California Cities, and the California
Special Districts Association argue that many public agencies
that contract for services specify uniform requirements and/or
affixing logos to a vehicle in their written contracts with a
service provider. These uniform requirements are oftentimes
done for the purpose of ensuring that the public knows who the
contractor is serving and for identifying regional operations
during a major disaster or mutual aid request from a public
agency. This bill eliminates public agencies' ability to
determine what works best locally.
Further, we are unaware of any problems - in general or
specifically - associated with a private contractor wearing a
similar uniform or having a similar vehicle that cause confusion
for the public and necessitate a need for this change in law.
ASSEMBLY FLOOR : 43-24, 8/25/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Ian Calderon, Campos, Chau, Chesbro, Dababneh, Daly,
Dickinson, Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez,
Gonzalez, Gray, Hall, Roger Hern�ndez, Jones-Sawyer, Levine,
Lowenthal, Medina, Muratsuchi, Nazarian, Pan, Perea, John A.
P�rez, V. Manuel P�rez, Rendon, Ridley-Thomas, Skinner, Stone,
Weber, Wieckowski, Williams, Atkins
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NOES: Achadjian, Allen, Bigelow, Ch�vez, Conway, Cooley, Beth
Gaines, Grove, Hagman, Harkey, Jones, Linder, Logue,
Maienschein, Mansoor, Melendez, Nestande, Olsen, Patterson,
Quirk-Silva, Salas, Wagner, Waldron, Wilk
NO VOTE RECORDED: Brown, Buchanan, Dahle, Donnelly, Gordon,
Gorell, Holden, Mullin, Quirk, Rodriguez, Ting, Yamada,
Vacancy
AL:e 8/26/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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