SB 751: 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.