SB 1371

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, 2027, from including a force majeure provision that excuses or suspends the service provider’s obligation to perform under the franchise contract, license, or permit in the event of a work stoppage arising out of or in connection with a labor dispute, as defined. The bill would also provide that any force majeure provision in a franchise contract, license, or permit for solid waste handling services is void and unenforceable, regardless of the date on which the contract, license, or permit was entered into, to the extent that it excuses or suspends performance due to a work stoppage arising out of or in connection 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. This bill would provide that its provisions are severable. 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.