Bill Text: CA AB610 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Fast food restaurant industry: Fast Food Council: health, safety, employment, and minimum wage.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-03-25 - Chaptered by Secretary of State - Chapter 4, Statutes of 2024. [AB610 Detail]

Download: California-2023-AB610-Amended.html

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Amended  IN  Senate  January 29, 2024

Amended  IN  Senate  August 14, 2023

Amended  IN  Senate  July 03, 2023

Amended  IN  Assembly  May 18, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 610

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Introduced by Assembly Member Holden
(Principal coauthors: Assembly Members Boerner, Mike Fong, and Pellerin)(Principal coauthor: Senator Min)(Coauthors: Assembly Members Connolly, Haney, Jackson, Lackey, and Luz Rivas)(Coauthor: Senator Blakespear)

February 09, 2023

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An act to add and repeal Chapter 2 (commencing with Section 99100) of Part 11 of Division 10 of the Public Utilities Code, relating to transportation. amend Section 1474 of the Labor Code, relating to employment, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

AB 610, as amended, Holden. Youth Transit Pass Pilot Program: free youth transit passes. Fast food restaurant industry: Fast Food Council: health, safety, employment, and minimum wage.

Existing law, until January 1, 2029, establishes the Fast Food Council and prescribes the council’s purposes, duties, and limitations, as described. Existing law establishes an hourly minimum wage for fast food restaurant employees, as described, authorizes the council to increase the hourly minimum wage pursuant to specified parameters, and sets forth requirements, limitations, and procedures for adopting and reviewing fast food restaurant health, safety, and employment standards. Existing law defines terms for these purposes, including defining “fast food restaurant” to mean a limited-service restaurant in the state that is part of a national fast food chain. Existing law exempts from the definition of “fast food restaurant” an establishment that on September 15, 2023, operates a bakery in a prescribed manner, as long as it continues to operate such a bakery. Existing law also exempts certain restaurants in grocery establishments.

This bill would exempt additional restaurants from the definition of “fast food restaurant,” including such restaurants in airports, hotels, event centers, theme parks, museums, and certain other locations, as prescribed.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law declares that the fostering, continuance, and development of public transportation systems are a matter of state concern. Existing law authorizes the Department of Transportation to administer various programs and allocates moneys for various public transportation purposes.

Upon the appropriation of moneys by the Legislature, this bill would create the Youth Transit Pass Pilot Program, administered by the department, for purposes of awarding grants to transit agencies for the costs of creating, designing, developing, advertising, distributing, and implementing free youth transit passes to persons attending certain educational institutions, providing free transit service to holders of those passes, and administering and participating in the program, as specified. The bill would authorize a transit agency to submit a grant application in partnership with one or more educational institutions and would also authorize grant funds to be used to maintain, subsidize, or expand an existing fare-free program, as provided. The bill would authorize a transit agency with an existing fare-free program that enables a person 18 years of age or younger to use a transit agency’s bus and rail services without paying any additional fare or charge to submit an application without an educational institution partner, as provided. The bill would require the department to submit a report to specified committees of the Legislature on or before January 1, 2027, on, among other things, the outcomes of the program and the funding conditions associated with offering free youth transit passes, the status of transit pass programs statewide, and whether these provisions led to reductions in the emissions of greenhouse gases and vehicle miles traveled, as provided.

The bill would repeal its provisions as of January 1, 2028.

Digest Key

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1474 of the Labor Code is amended to read:

1474.

 For purposes of this part:

(a) “National fast food chain” means a set of limited-service restaurants consisting of more than 60 establishments nationally that share a common brand, or that are characterized by standardized options for decor, marketing, packaging, products, and services, and which are primarily engaged in providing food and beverages for immediate consumption on or off premises where patrons generally order or select items and pay before consuming, with limited or no table service. For purposes of the definitions in this part, “limited-service restaurant” includes, but is not limited to, an establishment with the North American Industry Classification System Code 722513.

(b) “Council” means the Fast Food Council.

(c)  (1) Except as provided in paragraph (2), subdivisions (i) to (k), inclusive, “fast food restaurant” means a limited-service restaurant in the state that is part of a national fast food chain.

(2)“Fast food restaurant” shall not include an establishment that on September 15, 2023, operates a bakery that produces for sale on the establishment’s premises bread, as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item.

(d) “Fast food restaurant franchisee” means a person to whom a fast food restaurant franchise is granted.

(e) “Fast food restaurant franchisor” means a person who grants or has granted a fast food restaurant franchise.

(f) “Fast food restaurant operator” means a person who operates a fast food restaurant.

(g) “Franchise,” “franchisee,” and “franchisor” have the definitions set forth in Article 1 (commencing with Section 20000) of Chapter 5.5 of Division 8 of the Business and Professions Code.

(h) “Working conditions” include, but are not limited to, wages, conditions affecting fast food restaurant employees’ health and safety, security in the workplace, the right to take time off work for protected purposes, and the right to be free from discrimination and harassment in the workplace.

(i) When a restaurant is located and operates within a “grocery establishment,” as defined in subdivision (d) of Section 2502, and the grocery establishment employer employs the individuals working in the restaurant, the restaurant shall not be considered a fast food restaurant.

(j) “Fast food restaurant” shall not include an establishment that on September 15, 2023, operates a bakery that produces for sale on the establishment’s premises bread, as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item.

(k) “Fast food restaurant” shall not include a restaurant that is any of the following:

(1) Located in an airport, as defined in Section 21013 of the Public Utilities Code, but excluding any military base or federally operated facility.

(2) Connected to or operated in conjunction with a hotel. For purposes of this paragraph, “hotel” means a residential building that is designated or used for lodging and other related services for the public and includes any contracted, leased, or sublet premises connected to or operated in conjunction with the building’s purpose, or providing services at the building.

(3) Connected to or operated in conjunction with an event center. For purposes of this paragraph, “event center” means a publicly or privately owned structure of more than 20,000 square feet or 1,000 seats that is used for the purposes of public performances, sporting events, business meetings, or similar events, and includes concert halls, stadiums, sports arenas, racetracks, coliseums, and convention centers. “Event center” also includes any contracted, leased, or sublet premises connected to or operated in conjunction with the event center’s purpose.

(4) Connected to or operated in conjunction with a theme park. For purposes of this paragraph, “theme park” means a commercially operated, admission-based grounds or enclosure featuring amusement park rides of a permanent or semipermanent nature, shows, and attractions that are presented, shown, staged, or offered to the public, along with games, merchandise, and food offered for sale in the park, and any contracted, leased, or sublet premises that are connected to, located within, or operated in conjunction with that park, whether or not an admissions ticket is required for entry.

(5) Connected to or operated in conjunction with a public or private museum, within the meaning of Section 1899.1 of the Civil Code.

(6) Connected to or operated in conjunction with a gambling establishment, as defined in subdivision (o) of Section 19805 of the Business and Professions Code.

(7) A restaurant that is all of the following:

(A) Located in and operated in conjunction with a building, group of buildings, or campus used for office purposes primarily or exclusively by a single, for-profit corporation and its affiliates.

(B) Primarily or exclusively serves employees of that corporation or its affiliates rather than the general public.

(C) Is part of, or subject to, a concession or food service contract covering the building, group of buildings, or campus.

(8) Located on land owned by the state, a city or county, or other political subdivision of the state, that is part of a port district or land managed by a port authority or port commission, a public beach, public pier, state park, municipal or regional park, or historic district, and is operated pursuant to a concession agreement or food service contract.

SEC. 2.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

Due to how the immediate operation of new regulation of the fast food industry in California affects portions of the industry and existing local ordinances and pending regulatory and ballot measures, it is necessary for this statute to take effect immediately.

SECTION 1.Chapter 2 (commencing with Section 99100) is added to Part 11 of Division 10 of the Public Utilities Code, to read:

2.Youth Transit Pass Pilot Program

99100.

For purposes of this chapter, the following definitions apply:

(a)“Department” means the Department of Transportation.

(b)“Educational institution” means a local educational agency as defined in Section 56026.3 of the Education Code, the California Community Colleges, the California State University, or the University of California.

(c)“Eligible purposes” means those purposes specified in Sections 99102 and 99103.

(d)“Free youth transit pass” means a pass that enables a person attending an educational institution to use, without limitation, a transit agency’s bus and rail services without paying any additional fare or charge.

(e)“Program” means the Youth Transit Pass Pilot Program created pursuant to Section 99101.

(f)“Transit agency” means an STA-eligible operator, as defined in Section 99312.2, or the public agencies, including joint powers agencies, responsible for state-supported intercity rail or commuter rail services and eligible for funding under Section 99312.3.

99101.

(a)Upon an appropriation for purposes of the program, the Youth Transit Pass Pilot Program is hereby created, to be administered by the department, for purposes of awarding grants to transit agencies for eligible purposes pursuant to this chapter.

(b)On or before June 30, 2024, the department shall develop, in consultation with transit agencies, educational institutions, metropolitan planning organizations, and regional transportation planning agencies, guidelines for the administration of the program.

(c)(1)A transit agency may submit, in partnership with one or more educational institutions, a single-year or multiyear application for the program pursuant to Section 99102.

(2)A transit agency may submit a single-year or multiyear application for the program pursuant to Section 99103.

(d)(1)The department shall establish a target share amount for each eligible transit agency applicant based on the allocation under the State Transit Assistance Program pursuant to paragraphs (1) and (2) of subdivision (a) of Section 99312.1.

(2)The department shall establish the target share amount described in paragraph (1) in consultation with regional transportation planning agencies as part of the guidelines developed pursuant to subdivision (b).

(e)The department may use no more than 2 percent of the moneys appropriated for purposes of the program to recover its costs of administering the program.

99102.

(a)Grant moneys awarded pursuant to this section for purposes of the program may only be used for the following purposes agreed to by a transit agency and the relevant educational institutions in their grant application, until fully expended:

(1)The costs of creating, designing, developing, advertising, distributing, and implementing free youth transit passes pursuant to the program.

(2)The costs of providing free transit service to holders of free youth transit passes pursuant to the program.

(3)The costs of maintaining, subsidizing, or expanding an existing fare-free program.

(4)Other costs of administering and participating in the program.

(b)An educational institution shall be prohibited from participating in, and receiving funds from, the program, if its participation in the program would invalidate an existing agreement with a transit agency for free youth transit passes entered into before the operative date of this section. An educational institution that receives funds from the program and that invalidates an existing agreement with a transit agency for free youth transit passes before this chapter is repealed shall be required to reimburse the state for funds received.

99103.

(a)A transit agency with an existing fare-free program that enables a person 18 years of age or younger to use, without limitation, a transit agency’s bus and rail services without paying any additional fare or charge may submit an application for the program without an educational institution partner.

(b)Grant moneys awarded pursuant to this section for purposes of the program may only be used for the following purposes:

(1)The costs of creating, designing, developing, advertising, distributing, and implementing free youth transit passes pursuant to the program.

(2)The costs of providing free transit service to holders of free youth transit passes pursuant to the program.

(3)The costs of maintaining or expanding the existing fare-free program.

(4)The costs of enhancing or expanding transit service by supporting new or expanded bus, rail, or ferry services.

(5)The cost associated with other operational improvements to improve access to transit service or to increase transit mode share.

(6)Other costs of administering and participating in the program.

99104.

For purposes of calculating the ratio of fare revenues to operating costs under Article 4 (commencing with Section 99260) of Chapter 4, transit agencies participating in the program shall comply with the process described in Section 99268.19. Free youth transit passes shall be counted as free and reduced transit fares pursuant to Section 99268.19.

99105.

(a)On or before January 1, 2027, the department shall submit, in compliance with Section 9795 of the Government Code, a report on the outcomes of the program and the status of transit pass programs statewide to the fiscal and policy committees of the Legislature that oversee transportation programs. The report shall be produced in consultation with transit agencies and educational institutions that participated in the program.

(b)The report shall include, but is not limited to, all of the following:

(1)The number of free transit passes provided to persons attending an educational institution.

(2)Any change in transit ridership among persons attending an educational institution.

(3)An assessment of how many transit agencies and educational institutions have created or expanded a transit pass program.

(4)Recommendations to expand transit pass programs to ensure that all persons attending an educational institution have access to a transit pass program.

(5)Whether, over its lifetime, the program achieved reductions in vehicle miles traveled, reduced emissions of greenhouse gases, enhanced transit accessibility for pupils and students, and ensured equity.

(6)Whether the program minimized administrative requirements for both program management and user access.

(7)Identification of best practices being implemented to enhance youth transit ridership.

99106.

This chapter shall remain in effect only until January 1, 2028, and as of that date is repealed.