Bill Text: CA SB1444 | 2019-2020 | Regular Session | Introduced


Bill Title: California State University: food service contracts and hotel development projects.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-03-12 - Referred to Com. on ED. [SB1444 Detail]

Download: California-2019-SB1444-Introduced.html


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1444


Introduced by Senator Durazo

February 21, 2020


An act to add Sections 89036.5 and 89912.5 to the Education Code, relating to the California State University.


LEGISLATIVE COUNSEL'S DIGEST


SB 1444, as introduced, Durazo. California State University: food service contracts and hotel development projects.
Existing law authorizes the Trustees of the California State University to enter into agreements for the performance of acts or for the furnishing of services, facilities, materials, goods, supplies, or equipment under certain conditions. The trustees are required to prescribe policies and procedures for the acquisition of services, facilities, materials, goods, supplies, or equipment, subject to specified criteria.
This bill would require the trustees, for each food service contract and participation in a hotel development project, to require the person contracting with the trustees and each food service employer or hotel employer, to be party to a labor peace agreement with any labor organization that represents or seeks to represent food service employees performing work under the food service contract or hotel employees at the hotel development project, as specified. The bill would extend that requirement to any food service contract or hotel development project in which the California State University or an auxiliary organization has a proprietary interest and that is performed pursuant to a contract entered into or awarded by an auxiliary organization.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) In the course of managing real property it owns or in otherwise carrying out its functions, the Trustees of the California State University may participate in real property developments as a property owner, lessor, proprietor, lender, or guarantor, facing similar risks and liabilities as other business entities participating in those ventures. As a result, the trustees have an ongoing proprietary interest in these developments and a direct interest in their financial performance. The trustees also contract for the provision of food services at campuses, and have a proprietary interest in the revenues derived from such contracts.
(b) The trustees must make prudent management decisions, similar to any private business entity, to ensure efficient management of these business concerns and to maximize benefits and minimize risks. One risk is the possibility of labor-management conflict. Experience has demonstrated that the risk of labor-management conflict is particularly acute in the hotel and food service sectors.
(c) A potential outcome of labor-management conflict is economic action by labor unions against employers. Labor-management conflict can result in delays, work stoppages, picketing, strikes, consumer boycotts, and other forms of adverse economic pressure. Such conflict may adversely affect the trustees’ financial or other proprietary business interests.
(d) An effective method of reducing the risk to the trustees’ proprietary interests is to require, as a condition of the trustees’ economic participation in a hotel development project or a food service contract, that employers taking part in the development project or contract obtain agreements with labor organizations that represent or seek to represent their workforce, in which the labor organizations agree to forbear from adverse economic action against the employers’ operations.

SEC. 2.

 Section 89036.5 is added to the Education Code, to read:

89036.5.
 (a) For purposes of this section, the following definitions apply:
(1) “Food service contract” means a contract with the trustees or the California State University for a cafeteria or food and beverage outlet on or serving a California State University campus.
(2) “Food service employer” means a person who employs employees performing work at a food service venue under a food service contract.
(3) “Hotel” means any hotel, motel, bed and breakfast inn, or other similar commercial transient lodging establishment, and shall include any contracted, leased, or sublet premises connected to or operated in conjunction with the hotel’s purpose.
(4) “Hotel development project” means a real estate development project that includes or is planned to include one or more hotels and in which the trustees or the California State University have a proprietary interest.
(5) “Hotel employer” means any person who owns, controls, or operates a hotel in a hotel development project and who employs employees at that hotel.
(6) “Labor organization” means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and that exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.
(7) “Labor peace agreement” means a written agreement with a labor organization that contains, at a minimum, a provision prohibiting the labor organization and its members from engaging in any picketing, work stoppage, boycott, or other economic interference with food service or hotel operations in which the trustees have a proprietary interest.
(8) “Person” means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, or other legal or commercial entity, whether domestic or foreign.
(b) Notwithstanding any other provision in this part, the trustees shall make it a condition precedent to entering into each food service contract and to the trustees’ participation in a hotel development project, and an ongoing material requirement of that contract or participation, that the person contracting with the trustees and each food service employer or hotel employer be party to a labor peace agreement with any labor organization that represents or seeks to represent food service employees performing work under the food service contract or hotel employees at the hotel development project.

SEC. 3.

 Section 89912.5 is added to the Education Code, to read:

89912.5.
 (a) Any food service contract or hotel development project in which the California State University or an auxiliary organization has a proprietary interest and that is performed pursuant to a contract entered into or awarded by an auxiliary organization is subject to Section 89036.5.
(b) As used in this section, the following terms have the following meanings:
(1) “Auxiliary organization” means those entities that are included as auxiliary organizations pursuant to Section 89901.
(2) “Food service contract” has the same meaning as in Section 89036.5.
(3) “Hotel development project” has the same meaning as in Section 89036.5.
(4) “Proprietary interest” means a financial interest in the form of expected lease revenues, expected debt service on a loan provided by the trustees, underwriting or guaranteeing the development of a project or loans related to the project, or any other significant economic and nonregulatory interest in a project that may be adversely affected by labor-management conflict.

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