Bill Text: CA SB1340 | 2023-2024 | Regular Session | Amended
Bill Title: Discrimination.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-25 - Read second time and amended. Re-referred to Com. on APPR. [SB1340 Detail]
Download: California-2023-SB1340-Amended.html
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Amended
IN
Senate
April 25, 2024 |
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Amended
IN
Senate
April 10, 2024 |
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Amended
IN
Senate
March 20, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1340
| Introduced by Senator Smallwood-Cuevas |
February 16, 2024 |
An act to amend Section 12993 of, and to add Article 1.1 (commencing with Section 12978) to Chapter 7 of Part 2.8 of Division 3 of Title 2 of, the Government Code, and to add Sections 6990.2 and 6990.3 to the Public Contract Code, relating to
discrimination.
LEGISLATIVE COUNSEL'S DIGEST
SB 1340, as amended, Smallwood-Cuevas.
Discrimination.
The Unruh Civil Rights Act generally prohibits business establishments from discriminating on specified bases. The California Fair Employment and Housing Act (act) prohibits discrimination in housing and employment on specified bases. Existing law establishes the Civil Rights Department (department) and prescribes its functions, duties, and powers, including to receive, investigate, conciliate, mediate mediate, and prosecute complaints alleging employment discrimination pursuant to specified laws, including the Unruh Civil Rights Act and the act.
This bill would require the department, in collaboration with the Division of Labor Standards Enforcement, to
develop partnerships with local agencies that allow local agencies to assist with preventing and eliminating unlawful practices under the act, as specified. The bill would require a local agency that pursues a complaint pursuant to these provisions to receive, investigate, and adjudicate the complaint using procedures that are substantially similar to the procedures described above within one year of the complaint being filed with the local agency. The bill would authorize a person claiming to be aggrieved by an alleged unlawful practice to file a verified complaint with the department that requests that the complaint be pursued by a local agency pursuant to these provisions. The bill would prescribe procedures of a complaint pursued by a local agency. The bill would require the department to include information about local agencies entering partnerships and complaints being processed by local agencies pursuant to these provisions, as specified. The bill would define various terms for these purposes.
Existing law specifies that while it is the intention of the Legislature that the act occupy the field of regulation of discrimination in employment and housing, the act does not limit or restrict the application of the Unruh Civil Rights Act.
This bill would, commencing on January 1, 2026, also specify that nothing in the act shall be construed to limit or restrict efforts by local entities to enforce state law prohibiting discrimination against classes of persons covered by the act in employment, provided that the enforcement complies with the provisions described above.
Existing law requires specified state agencies to convene relevant stakeholders to provide input on recommendations to establish terms to be included as a material part of a contract, including measurable results to ensure that investments maximize benefits to marginalized and disadvantaged communities, meet with
those stakeholders, as specified, and consult with the department and other specified entities for the purposes of developing those recommendations, as specified. Existing law states the intent of the Legislature in enacting those provisions to develop procurement models in alignment with initiatives to enhance the state’s training and access pipeline for quality jobs and the application of community benefits on infrastructure and manufacturing investments funded by specified federal law.
This bill would require the department to establish and maintain a comprehensive database to track all infrastructure contracting and procurement activities by state agencies, agencies funded in whole or in part by certain federal laws, as specified. The bill would require a contractor or
subcontractor under an infrastructure contract awarded by a state agency funded in whole or in part by certain federal laws to report to the department specified demographic data, and would require the contractor or subcontractor to conduct a survey to collect this data, as specified. The bill would require the department to annually publish a report summarizing certain data, as specified, and would require data collected pursuant to these provisions to be confidential, as specified. The bill would require the department to collaborate with relevant state agencies, local governments, and stakeholders to develop and implement strategies for promoting diversity, equity, and inclusion in public infrastructure contracting and procurement. The bill would require the department to conduct outreach and educational activities to raise awareness of civil rights laws and regulations that impact public
infrastructure contracting and procurement.
Existing law establishes the Department of Industrial Relations, one of the functions of which is to foster, promote, and develop the welfare of wage earners of California, to improve their conditions, and to advance their opportunities for profitable employment.
This bill would require the Department of Industrial Relations to establish a California Public Infrastructure Task Force, consisting of specified members, to, among other things, regularly conduct meetings to make recommendations regarding recruiting and removing barriers to employment in public infrastructure projects for underrepresented communities and to provide ongoing compliance assistance to contractors and subcontractors in public infrastructure projects regarding their nondiscrimination obligations.
This bill would state the intent of the Legislature that, to the extent
possible, the funding for the bill’s provisions would include specified federal law.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
It is the intent of the Legislature that, to the extent possible, the funding for this act include, but not be limited to, the federal Infrastructure Investment and Jobs Act,SEC. 2.
Article 1.1 (commencing with Section 12978) is added to Chapter 7 of Part 2.8 of Division 3 of Title 2 of the Government Code, to read:Article 1.1. Local Agency Enforcement of Unlawful Practices
12978.
For purposes of this article, the following definitions apply:(a) “Article 1” means Article 1 (commencing with Section 12960).
(b) “Local agency” means a city, county, city and county, or other political subdivision of the state.
(c) “Unlawful practice” means a violation of Article 1 (commencing with Section 12940) of Chapter 6.
12978.2.
(a) The department, in collaboration with the Division of Labor Standards Enforcement, shall develop partnerships with local agencies that allow local agencies to assist with preventing and eliminating unlawful practices.(b) The department shall not enter into a partnership with a local agency until the local agency demonstrates to the department’s satisfaction that the local agency has the capacity to comply with subdivision (c).
(c) A local agency that pursues a complaint pursuant to this article shall receive, investigate, and adjudicate the complaint using procedures that are substantially similar
to those described in Article 1 within one year of the complaint being filed with the local agency.
12978.4.
(a) A person claiming to be aggrieved by an alleged unlawful practice may file a verified complaint with the department on a form developed by the department for purposes of this article that requests that the person’s complaint be pursued by a local agency pursuant to this article.(b) Within ____ days of receiving a complaint described in subdivision (a), the department shall determine
whether it intends to pursue the complaint pursuant to Article 1 or issue a letter to the complainant that authorizes the complainant to pursue the complaint through a local agency that has entered into a partnership pursuant to Section 12978.2.
(c) A complainant who receives a letter pursuant to subdivision (b) shall pursue their complaint with the local agency through procedures prescribed by the local agency within one year of receipt of the letter.
(d) Prior to initiating a review of a complaint, a local agency shall require the complainant to provide evidence that the complainant received a letter described in subdivision (b).
12978.6.
(a) (1) If a local agency determines that a complainant is not entitled to relief, the local agency shall provide written notice of both of the following:(A) The decision denying relief.
(B) Any applicable statute of limitations for the complainant to seek relief pursuant to a private right of action.
(2) A complainant who receives notice pursuant to paragraph (1) may pursue a private right of action within six months of the local agency’s determination.
(3) If
a complainant pursues a private right of action as described in paragraph (2), the local agency’s determination shall not be binding on the superior court.
(b) (1) A respondent may appeal a local agency’s determination that a respondent engaged in an unlawful practice in a superior court in a manner that is substantially similar to an appeal of a decision made pursuant to Article 1.
(2) If a respondent is unsuccessful in an appeal brought pursuant to paragraph (1), the superior court may award reasonable attorney’s fees and costs to the local agency.
12978.8.
If a complainant pursues a complaint with a local agency pursuant to this article, the complainant shall not pursue a complaint arising out of the same underlying facts and circumstances in a different local agency or pursuant to Article 1 at any time thereafter.12978.10.
The department shall include in the annual report required by subdivision (k) of Section 12930 all of the following information:(a) A list of the local agencies that have entered into partnerships pursuant to Section 12978.2.
(b) The number of complaints processed by local agencies pursuant to this article that year.
(c) A summary of the results of the cases processed by local agencies pursuant to this article that year.
SEC. 3.
Section 12993 of the Government Code is amended to read:12993.
(a) The provisions of this part shall be construed liberally for the accomplishment of the purposes of this part. This part does not repeal any of the provisions of civil rights law or of any other law of this state relating to discrimination because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, reproductive health decisionmaking, or sexual orientation, unless those provisions provide less protection to the enumerated classes of persons covered under this part.(b) The provisions in this part relating to discrimination in employment on account of sex or medical
condition do not affect the operation of the terms or conditions of any bona fide retirement, pension, employee benefit, or insurance plan, provided the terms or conditions are in accordance with customary and reasonable or actuarially sound underwriting practices.
(c) (1) It is the intention of the Legislature to occupy the field of regulation of discrimination in employment and housing encompassed by the provisions of this part, exclusive of all other laws banning discrimination in employment and housing by any city, city and county, county, or other political subdivision of the
state.
(2) Notwithstanding paragraph (1), this part does not limit or restrict the application of Section 51 of the Civil Code.
(3) Notwithstanding paragraph (1), this part does not limit or restrict efforts by any city, city and county, county, or other political subdivision of the state to enforce state law prohibiting discrimination against any of the enumerated classes of persons covered under this part in employment, provided that the enforcement complies with Article 1.1 (commencing with Section 12978) of Chapter 7.
(d) The amendments made by the act adding this subdivision shall become operative on January 1, 2026.
SEC. 4.
Section 6990.2 is added to the Public Contract Code, to read:6990.2.
(a) For purposes of this section:(1) “Department” means the Civil Rights Department.
(2) “Local government” means a city, county, city or county, or public or municipal corporation.
(3) “State agency” means a state agency as defined in Section 11000 of the Government Code.
(b) The department shall establish and maintain a comprehensive database to track all infrastructure contracting and procurement activities by state agencies,
agencies funded in whole or in part by the federal Infrastructure Investment and Jobs Act, Inflation Reduction Act of 2022, or CHIPS Act of 2022, which shall include, but shall not be limited to, all of the following:
(1) Contracts awarded by state agencies, including, but not limited to, project details, pay scales for employees of the contractors and subcontractors, and relevant compliance measures or terms.
(2) Contractors and subcontractors utilized by state agencies.
(3) Demographic data of employees of contractors and subcontractors utilized by state agencies, including, but not limited to, all of the following:
(A) Race.
(B) Gender.
(C) Marital status.
(D) County of residence.
(c) Commencing on July 1, 2025, and annually on July 1 monthly thereafter, a contractor or subcontractor under an infrastructure contract awarded by a state agency funded in whole or in part by the federal Infrastructure Investment and Jobs Act, Inflation Reduction Act of 2022, or CHIPS Act of 2022 shall report to the department the demographic data of their employees collect from its employees the demographic data
specified in paragraph (3) of subdivision (b). (b) and report that data to the department.
(d) (1) A contractor or subcontractor under an infrastructure contract awarded by a state agency shall provide each employee with the option to participate in a survey for the purpose of collecting and reporting the information described in paragraph (3) of subdivision (b).
(2) A contractor or subcontractor under an infrastructure contract awarded by a state agency shall distribute a written disclosure to each employee prior to, or concurrently with, a survey conducted pursuant to this subdivision that shall notify the employee of all of the following:
(A) The employee’s decision to disclose their demographic information is voluntary.
(B) The contractor or subcontractor is prohibited from taking an adverse action against an employee if the employee declines to participate in the survey.
(C) The aggregate data collected for each demographic category will be reported.
(3) A survey conducted pursuant to this subdivision shall be completed using a standardized form to be specified by the department.
(4) A contractor or subcontractor under an infrastructure project awarded by a state agency shall not in any way encourage, incentivize, or attempt to influence the decision of an employee to participate in a survey conducted pursuant to this subdivision.
(5) A contractor or
subcontractor under an infrastructure project awarded by a state agency required to conduct a survey pursuant to this subdivision shall do both of the following:
(A) Collect survey response data from employees in a manner that maintains the anonymity of the responding employee and the confidentiality of the data reported.
(B) Transmit the survey response data to the department in a manner that does not associate the survey response data with an individual employee.
(e) A contractor or subcontractor under an infrastructure contract awarded by a state agency shall not take an adverse action against an employee who declines to participate in the survey described in subdivision (c).
(f) Commencing July 1, 2026, the department shall annually publish a report summarizing the data collected
contained in the database maintained pursuant to subdivision (b) that includes both of the following:
(1) Any disparities or trends the department observed.
(2) Recommendations for improving equity and inclusion in public infrastructure and procurement.
(g) (1) The department shall publish the information submitted pursuant to paragraph (3) of subdivision (b) in the aggregate and shall not identify an individual employee.
(2) The department shall include a statement on the department’s internet website that the information posted pursuant to this section is provided for informational purposes only.
(h) The data collected pursuant to this section is confidential and shall not be released by the department or a contractor or subcontractor under an infrastructure contract awarded by a state agency except to comply with a properly authorized civil, criminal, administrative, or regulatory investigation or subpoena, summons by federal, state, or local authorities, or as otherwise authorized by this section.
(i) The department shall collaborate with relevant state agencies, local governments, and stakeholders to develop and implement strategies for promoting diversity, equity, and inclusion in public infrastructure contracting and procurement.
(j) The department shall conduct outreach and educational activities to
raise awareness of civil rights laws and regulations that impact public infrastructure contracting and procurement.
SEC. 5.
Section 6990.3 is added to the Public Contract Code, to read:6990.3.
(a) The Department of Industrial Relations shall establish a California Public Infrastructure Task Force, which shall consist of representatives from all of the following entities that engage in public infrastructure contracting and procurement projects:(1) State agencies.
(2) Local governments and agencies.
(3) Contractors and subcontractors.
(4) Unions.
(5) Apprenticeship and preapprenticeship programs.
(6) Job and worker centers.
(7) Community colleges.
(8) Tribal Employment Rights offices.
(9) Women in Apprenticeship and Nontraditional Occupations grantees.
(b) The task force shall do all of the following:
(1) Regularly conduct meetings to make recommendations regarding recruiting and removing barriers to employment in public infrastructure projects for underrepresented communities.
(2) Conduct outreach and engagement activities with contractors and subcontractors to promote
employment in public infrastructure projects for underrepresented communities.
(3) Provide ongoing compliance assistance at the prebid and postbid stages to contractors and subcontractors in public infrastructure projects regarding their nondiscrimination obligations.
(4) Evaluate the efforts of contractors and subcontractors to recruit and utilize talent from underrepresented communities in public infrastructure projects.
SEC. 6.
The Legislature finds and declares that Section 4 of this act, which adds Section 6990.2 to the Public Contract Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy and personal information of individual workers participating in the contractor diversity survey, it is
necessary that this information be kept confidential.
