BILL NUMBER: AB 508 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Swanson FEBRUARY 15, 2011 An act to amend Sections 1070 and 1071 of the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGEST AB 508, as introduced, Swanson. Displaced public transit, solid waste handling, and recycling services employees. Existing law requires a local government agency letting a public transit service contract out to bid to give a bidding preference for contractors and subcontractors who agree to retain, for a period of at least 90 days, certain employees who were employed to perform essentially the same services by the previous contractor or subcontractor. Under this law, contractors or subcontractors who agree to retain employees must offer employment to those employees except for reasonable and substantiated cause. Additionally, the law provides that if a successor contractor or subcontractor determines that fewer employees are needed than under the prior contract, qualified employees must be retained by seniority within the job classification. Further, the existing contractor, when required by the awarding authority, must provide employment information relating to wage rates, benefits, dates of hire, and job classifications of employees under the existing service contract to the awarding authority or a successor contractor. This bill would add employees of solid waste handling and recycling contractors and subcontractors to those provisions. By requiring local agencies to give a bidding preference to such contractors and subcontractors, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1070 of the Labor Code is amended to read: 1070. The Legislature finds and declares all of the following: (a) That when public
transitagencies with jurisdiction over public transit, solid waste handling, or recycling services award contracts to operate bus and rail , solid waste handling, or recycling services to a new contractor, qualified employees of the prior contractor who are not reemployed by the successor contractor face significant economic dislocation as a result. (b) That those displaced employees rely unnecessarily upon the unemployment insurance system, public social services, and health programs, increasing costs to these vital government programs and placing a significant burden upon both the government and the taxpayers. (c) That it serves an important social purpose to establish incentives for contractors who bid public transitfor public transit, solid waste handling, or recycling services contracts to retain qualified employees of the prior contractor to perform the same or similar work. SEC. 2. Section 1071 of the Labor Code is amended to read: 1071. The following definitions apply throughout this chapter: (a) "Awarding authority" means any local government agency, including any city, county, special district, transit district, joint powers authority, or nonprofit corporation that awards or otherwise enters into contracts for public transit , solid waste handling, or recycling services performed within the State of California. (b) "Bidder" means any person who submits a bid to an awarding agency for a public transit service, solid waste handl ing, or recycling services contract or subcontract. (c) "Contractor" means any person who enters into a public transit service, solid waste handling, or recycling services contract with an awarding authority. (d) "Employee" means any person who works for a contractor or subcontractor under a contract. "Employee" does not include an executive, administrative, or professional employee exempt from the payment of overtime compensation within the meaning of subdivision (a) of Section 515 or any person who is not an "employee" as defined under Section 2(3) of the National Labor Relations Act (29 U.S.C. Sec. 152(3)). (e) "Person" means any individual, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association, or other entity that may employ individuals or enter into contracts. (f) "Public transit services" means the provision of passenger transportation services to the general public, including paratransit service. (g) "Service"Recycling" has the same meaning as that term is defined in Section 40180 of the Public Resources Code. (h) "Service contract" means any contract the principal purpose of which is to provide public transit , solid waste handling, or recycling services through the use of service employees. (i) "Solid waste handling" has the same meaning as that term is defined in Section 40195 of the Public Resources Code. (h)(j) "Subcontractor" means any person who is not an employee who enters into a contract with a contractor to assist the contractor in performing a service contract. SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.