California 2023-2024 Regular Session

California Senate Bill SB751 Latest Draft

Bill / Enrolled Version Filed 09/19/2023

                            Enrolled  September 19, 2023 Passed IN  Senate  September 14, 2023 Passed IN  Assembly  September 13, 2023 Amended IN  Assembly  September 01, 2023 Amended IN  Senate  May 04, 2023 Amended IN  Senate  April 27, 2023 Amended IN  Senate  April 26, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 751Introduced by Senator PadillaFebruary 17, 2023An act to add Section 53064.3 to the Government Code, relating to franchise agreements. LEGISLATIVE COUNSEL'S DIGESTSB 751, Padilla. Franchise agreements: solid waste handling services: labor dispute.Existing law contains various provisions relating to franchise agreements between a local jurisdiction and a service provider for the provision of services such as utilities, waste hauling, and cable television.This bill would prohibit any franchise contracts, licenses, or permits for solid waste handling services, as defined, entered into or substantially amended, as defined, by a local agency on or after January 1, 2024, from containing a force majeure provision that excuses the service provider from complying with the franchise contracts, licenses, or permits in the event of a work stoppage associated with a labor dispute, as defined. The bill would require specified provisions to be included in any exclusive franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and would require these provisions to apply in the event of service being disrupted by a work stoppage associated with a labor dispute.By imposing new duties on local governments with respect to the franchise contracts, licenses, or permits for solid waste handling services, the bill would impose a state-mandated local program.The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.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 the statutory provisions noted above.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 53064.3 is added to the Government Code, to read:53064.3. (a) To promote the public health, safety, and well-being, a franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, shall not contain a force majeure provision that excuses the service provider from complying with the franchise contract, license, or permit for solid waste handling services in the event of a work stoppage associated with a labor dispute.(b) The following provisions shall be included in any franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and shall apply in the event of service being disrupted by a work stoppage associated with a labor dispute:(1) A process by which the franchisee shall provide advance or concurrent notice of service being disrupted.(2) A process that allows a customer to file a service complaint with the franchisee and a timeframe within which the franchisee shall respond to complaints.(3) A process for customers to request and receive refunds or credits for services not received.(4) A remedy that allows the local agency to take administrative action to enforce the franchisees failure to comply with the franchise contract, license, or permit for solid waste handling services.(c) For purposes of this section, the following terms have the following meanings:(1) Solid waste handling services has the same meaning as solid waste handling as defined in Section 40195 of the Public Resources Code.(2) Substantially amended means a mutually agreed upon change to a majority of the material terms of a franchise agreement, license, or permit for solid waste handling services.(3) Labor dispute has the same meaning as defined in clause (iii) of paragraph (4) of subdivision (b) of Section 527.3 of the Code of Civil Procedure.SEC. 2. The Legislature finds and declares that protecting solid waste handling services for California residents during a labor dispute is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 53064.3 to the Government Code applies to all cities, including charter cities.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.

 Enrolled  September 19, 2023 Passed IN  Senate  September 14, 2023 Passed IN  Assembly  September 13, 2023 Amended IN  Assembly  September 01, 2023 Amended IN  Senate  May 04, 2023 Amended IN  Senate  April 27, 2023 Amended IN  Senate  April 26, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 751Introduced by Senator PadillaFebruary 17, 2023An act to add Section 53064.3 to the Government Code, relating to franchise agreements. LEGISLATIVE COUNSEL'S DIGESTSB 751, Padilla. Franchise agreements: solid waste handling services: labor dispute.Existing law contains various provisions relating to franchise agreements between a local jurisdiction and a service provider for the provision of services such as utilities, waste hauling, and cable television.This bill would prohibit any franchise contracts, licenses, or permits for solid waste handling services, as defined, entered into or substantially amended, as defined, by a local agency on or after January 1, 2024, from containing a force majeure provision that excuses the service provider from complying with the franchise contracts, licenses, or permits in the event of a work stoppage associated with a labor dispute, as defined. The bill would require specified provisions to be included in any exclusive franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and would require these provisions to apply in the event of service being disrupted by a work stoppage associated with a labor dispute.By imposing new duties on local governments with respect to the franchise contracts, licenses, or permits for solid waste handling services, the bill would impose a state-mandated local program.The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.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 the statutory provisions noted above.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 

 Enrolled  September 19, 2023 Passed IN  Senate  September 14, 2023 Passed IN  Assembly  September 13, 2023 Amended IN  Assembly  September 01, 2023 Amended IN  Senate  May 04, 2023 Amended IN  Senate  April 27, 2023 Amended IN  Senate  April 26, 2023

Enrolled  September 19, 2023
Passed IN  Senate  September 14, 2023
Passed IN  Assembly  September 13, 2023
Amended IN  Assembly  September 01, 2023
Amended IN  Senate  May 04, 2023
Amended IN  Senate  April 27, 2023
Amended IN  Senate  April 26, 2023

 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION

 Senate Bill 

No. 751

Introduced by Senator PadillaFebruary 17, 2023

Introduced by Senator Padilla
February 17, 2023

An act to add Section 53064.3 to the Government Code, relating to franchise agreements. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

SB 751, Padilla. Franchise agreements: solid waste handling services: labor dispute.

Existing law contains various provisions relating to franchise agreements between a local jurisdiction and a service provider for the provision of services such as utilities, waste hauling, and cable television.This bill would prohibit any franchise contracts, licenses, or permits for solid waste handling services, as defined, entered into or substantially amended, as defined, by a local agency on or after January 1, 2024, from containing a force majeure provision that excuses the service provider from complying with the franchise contracts, licenses, or permits in the event of a work stoppage associated with a labor dispute, as defined. The bill would require specified provisions to be included in any exclusive franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and would require these provisions to apply in the event of service being disrupted by a work stoppage associated with a labor dispute.By imposing new duties on local governments with respect to the franchise contracts, licenses, or permits for solid waste handling services, the bill would impose a state-mandated local program.The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.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 the statutory provisions noted above.

Existing law contains various provisions relating to franchise agreements between a local jurisdiction and a service provider for the provision of services such as utilities, waste hauling, and cable television.

This bill would prohibit any franchise contracts, licenses, or permits for solid waste handling services, as defined, entered into or substantially amended, as defined, by a local agency on or after January 1, 2024, from containing a force majeure provision that excuses the service provider from complying with the franchise contracts, licenses, or permits in the event of a work stoppage associated with a labor dispute, as defined. The bill would require specified provisions to be included in any exclusive franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and would require these provisions to apply in the event of service being disrupted by a work stoppage associated with a labor dispute.

By imposing new duties on local governments with respect to the franchise contracts, licenses, or permits for solid waste handling services, the bill would impose a state-mandated local program.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

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 the statutory provisions noted above.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 53064.3 is added to the Government Code, to read:53064.3. (a) To promote the public health, safety, and well-being, a franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, shall not contain a force majeure provision that excuses the service provider from complying with the franchise contract, license, or permit for solid waste handling services in the event of a work stoppage associated with a labor dispute.(b) The following provisions shall be included in any franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and shall apply in the event of service being disrupted by a work stoppage associated with a labor dispute:(1) A process by which the franchisee shall provide advance or concurrent notice of service being disrupted.(2) A process that allows a customer to file a service complaint with the franchisee and a timeframe within which the franchisee shall respond to complaints.(3) A process for customers to request and receive refunds or credits for services not received.(4) A remedy that allows the local agency to take administrative action to enforce the franchisees failure to comply with the franchise contract, license, or permit for solid waste handling services.(c) For purposes of this section, the following terms have the following meanings:(1) Solid waste handling services has the same meaning as solid waste handling as defined in Section 40195 of the Public Resources Code.(2) Substantially amended means a mutually agreed upon change to a majority of the material terms of a franchise agreement, license, or permit for solid waste handling services.(3) Labor dispute has the same meaning as defined in clause (iii) of paragraph (4) of subdivision (b) of Section 527.3 of the Code of Civil Procedure.SEC. 2. The Legislature finds and declares that protecting solid waste handling services for California residents during a labor dispute is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 53064.3 to the Government Code applies to all cities, including charter cities.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.

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

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

SECTION 1. Section 53064.3 is added to the Government Code, to read:53064.3. (a) To promote the public health, safety, and well-being, a franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, shall not contain a force majeure provision that excuses the service provider from complying with the franchise contract, license, or permit for solid waste handling services in the event of a work stoppage associated with a labor dispute.(b) The following provisions shall be included in any franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and shall apply in the event of service being disrupted by a work stoppage associated with a labor dispute:(1) A process by which the franchisee shall provide advance or concurrent notice of service being disrupted.(2) A process that allows a customer to file a service complaint with the franchisee and a timeframe within which the franchisee shall respond to complaints.(3) A process for customers to request and receive refunds or credits for services not received.(4) A remedy that allows the local agency to take administrative action to enforce the franchisees failure to comply with the franchise contract, license, or permit for solid waste handling services.(c) For purposes of this section, the following terms have the following meanings:(1) Solid waste handling services has the same meaning as solid waste handling as defined in Section 40195 of the Public Resources Code.(2) Substantially amended means a mutually agreed upon change to a majority of the material terms of a franchise agreement, license, or permit for solid waste handling services.(3) Labor dispute has the same meaning as defined in clause (iii) of paragraph (4) of subdivision (b) of Section 527.3 of the Code of Civil Procedure.

SECTION 1. Section 53064.3 is added to the Government Code, to read:

### SECTION 1.

53064.3. (a) To promote the public health, safety, and well-being, a franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, shall not contain a force majeure provision that excuses the service provider from complying with the franchise contract, license, or permit for solid waste handling services in the event of a work stoppage associated with a labor dispute.(b) The following provisions shall be included in any franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and shall apply in the event of service being disrupted by a work stoppage associated with a labor dispute:(1) A process by which the franchisee shall provide advance or concurrent notice of service being disrupted.(2) A process that allows a customer to file a service complaint with the franchisee and a timeframe within which the franchisee shall respond to complaints.(3) A process for customers to request and receive refunds or credits for services not received.(4) A remedy that allows the local agency to take administrative action to enforce the franchisees failure to comply with the franchise contract, license, or permit for solid waste handling services.(c) For purposes of this section, the following terms have the following meanings:(1) Solid waste handling services has the same meaning as solid waste handling as defined in Section 40195 of the Public Resources Code.(2) Substantially amended means a mutually agreed upon change to a majority of the material terms of a franchise agreement, license, or permit for solid waste handling services.(3) Labor dispute has the same meaning as defined in clause (iii) of paragraph (4) of subdivision (b) of Section 527.3 of the Code of Civil Procedure.

53064.3. (a) To promote the public health, safety, and well-being, a franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, shall not contain a force majeure provision that excuses the service provider from complying with the franchise contract, license, or permit for solid waste handling services in the event of a work stoppage associated with a labor dispute.(b) The following provisions shall be included in any franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and shall apply in the event of service being disrupted by a work stoppage associated with a labor dispute:(1) A process by which the franchisee shall provide advance or concurrent notice of service being disrupted.(2) A process that allows a customer to file a service complaint with the franchisee and a timeframe within which the franchisee shall respond to complaints.(3) A process for customers to request and receive refunds or credits for services not received.(4) A remedy that allows the local agency to take administrative action to enforce the franchisees failure to comply with the franchise contract, license, or permit for solid waste handling services.(c) For purposes of this section, the following terms have the following meanings:(1) Solid waste handling services has the same meaning as solid waste handling as defined in Section 40195 of the Public Resources Code.(2) Substantially amended means a mutually agreed upon change to a majority of the material terms of a franchise agreement, license, or permit for solid waste handling services.(3) Labor dispute has the same meaning as defined in clause (iii) of paragraph (4) of subdivision (b) of Section 527.3 of the Code of Civil Procedure.

53064.3. (a) To promote the public health, safety, and well-being, a franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, shall not contain a force majeure provision that excuses the service provider from complying with the franchise contract, license, or permit for solid waste handling services in the event of a work stoppage associated with a labor dispute.(b) The following provisions shall be included in any franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and shall apply in the event of service being disrupted by a work stoppage associated with a labor dispute:(1) A process by which the franchisee shall provide advance or concurrent notice of service being disrupted.(2) A process that allows a customer to file a service complaint with the franchisee and a timeframe within which the franchisee shall respond to complaints.(3) A process for customers to request and receive refunds or credits for services not received.(4) A remedy that allows the local agency to take administrative action to enforce the franchisees failure to comply with the franchise contract, license, or permit for solid waste handling services.(c) For purposes of this section, the following terms have the following meanings:(1) Solid waste handling services has the same meaning as solid waste handling as defined in Section 40195 of the Public Resources Code.(2) Substantially amended means a mutually agreed upon change to a majority of the material terms of a franchise agreement, license, or permit for solid waste handling services.(3) Labor dispute has the same meaning as defined in clause (iii) of paragraph (4) of subdivision (b) of Section 527.3 of the Code of Civil Procedure.



53064.3. (a) To promote the public health, safety, and well-being, a franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, shall not contain a force majeure provision that excuses the service provider from complying with the franchise contract, license, or permit for solid waste handling services in the event of a work stoppage associated with a labor dispute.

(b) The following provisions shall be included in any franchise contract, license, or permit for solid waste handling services entered into or substantially amended by a local agency on or after January 1, 2024, and shall apply in the event of service being disrupted by a work stoppage associated with a labor dispute:

(1) A process by which the franchisee shall provide advance or concurrent notice of service being disrupted.

(2) A process that allows a customer to file a service complaint with the franchisee and a timeframe within which the franchisee shall respond to complaints.

(3) A process for customers to request and receive refunds or credits for services not received.

(4) A remedy that allows the local agency to take administrative action to enforce the franchisees failure to comply with the franchise contract, license, or permit for solid waste handling services.

(c) For purposes of this section, the following terms have the following meanings:

(1) Solid waste handling services has the same meaning as solid waste handling as defined in Section 40195 of the Public Resources Code.

(2) Substantially amended means a mutually agreed upon change to a majority of the material terms of a franchise agreement, license, or permit for solid waste handling services.

(3) Labor dispute has the same meaning as defined in clause (iii) of paragraph (4) of subdivision (b) of Section 527.3 of the Code of Civil Procedure.

SEC. 2. The Legislature finds and declares that protecting solid waste handling services for California residents during a labor dispute is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 53064.3 to the Government Code applies to all cities, including charter cities.

SEC. 2. The Legislature finds and declares that protecting solid waste handling services for California residents during a labor dispute is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 53064.3 to the Government Code applies to all cities, including charter cities.

SEC. 2. The Legislature finds and declares that protecting solid waste handling services for California residents during a labor dispute is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 53064.3 to the Government Code applies to all cities, including charter cities.

### SEC. 2.

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.

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.

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.

### SEC. 3.