VACo Opposes Transportation Services Mandate Bills

SB 731 (Salim)/HB 547 (Helmer), as substituted, would require that the governing body of any city or county that contracts with a private company to provide a system of public transportation must:

  • Require such company to provide any employee of such company providing services compensation and benefits that are, at a minimum, equivalent to the compensation and benefits provided to a public employee and
  • Ensure that all employees of such public transportation system employed by a predecessor private company be offered employment with any successor company without loss of compensation or benefits.

The bill also states that if a city or county that contracts with a private company to provide a system of public transportation subsequently elects to provide its own system of public transportation, such county or city shall:

  • Adopt an ordinance or resolution providing for collective bargaining (if such county or city has not already done so);
  • Ensure that all employees of the private company are offered employment with such subsequent system of public transportation without loss of compensation or benefits; and

KEY POINTS

  • The bills would mandate collective bargaining for localities, interfere with the ability for a county to make employment and services delivery decisions, and may have costly unintended consequences (as shown by this fiscal impact statement).
  • The bills include language that could be harmful to counties such as what is included in the term “system of public transportation.” Generally, this means those who operate transit systems but could very likely include mechanics of such systems.
  • The bills would almost certainly raise the operating costs of transportation delivery systems at a time when the budgets for these services are very tight as they are.

VACo Contact: James Hutzler

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