from Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
Legislature
The legislature adjourned yesterday for Spring Break and will return on April 25. A majority of the bills will be dealt with by policy committees after the break to meet the May 6 policy committee deadline. This past week proved busy as well. Below is an example of issues that were considered of importance to GSBE:
AB 1308 (Miller)- Provides that monies in the Highway Users Tax Account (HUTA) are continuously appropriated and may be encumbered for their constitutional and statutory purposes in any year in which a Budget Act has not been enacted by July 1. This bill is significant in keeping projects running should there be a budget impasse. The bill was passed by the Assembly Transportations Committee. GSBE supports.
SB 396 (Huff)Review process. Requires state agencies to review each regulation adopted prior to 2011 and report to the Legislature on their findings, and to review regulations every 5 years thereafter. Passed Senate Governmental Organization Committee. GSBE supports.
SB 400 (Dutton)Impact on businesses. Requires a state agency to submit economic assessments for certain regulations to the Office of Administrative Law for a review and determination if the assessment is based upon sound economic knowledge, methods, and practices. Passed Senate Governmental Organization Committee. GSBE supports.
SB 401 (Fuller)Repeal Provisions. Specifies that every regulation proposed by a state agency after January 1, 2012, shall include a provision repealing the regulation in 5 years. Failed passage in Senate Governmental Organization Committee. GSBE supports.
AB 400 (Ma)– Paid Sick Leave. Provides that an employee who works in California for seven or more days in a calendar year is entitled to paid sick days. Passed Assembly Labor and Employment Committee. GSBE opposes.
UPCOMING LEGISLATION
A sample of bills of interest to GSBE to be considered after the Spring Recess:
AB 780 (Calderon) – Fixed Priced Contracts – Failure to include a provision in the 2009 tax increase to address fixed price contracts has resulted in contractors having to unfairly absorb the tax increase for the last year and half. AB 780 provides that, in the event of a future increase or decrease in the state sales tax, public works contracts must provide for an adjustment in a contract that was entered into prior to the tax change to compensate the contractor for the increase that was not factored into the contract and compensate the public agency in the event of an unanticipated decrease in the sales tax. Supported by GSBE.
AB 720 (Hall)– Road Commissioners - Amends Public Contract Code to prohibit a county who voluntarily elects to operate under the Uniform Construction Cost Account Act (Act) from being able to use “Road Commissioner” authority granted under another provision of the Public Contract Code. The bill will bring clarity to two conflicting provisions of the Public Contract Code.
The original intent of the “Road Commissioner” authority was to allow rural counties that were unable to get contractors to submit competitive bids in their area a method to get paving work completed. Today, many counties signatory to the Act have seriously abused this authority by doing millions of dollars worth of new road construction annually, without any accountability of cost. Although the counties argue that they need the “Road Commissioner” authority to address local issues such as natural disasters or emergencies, the fact is that there are mechanisms in place for counties signatory to the Act to do so without the “Road Commissioner” authority. The bill is sponsored by CIFAC and supported by GSBE.
AB 1330 (Furutani) –CTE - Would give students an option to take one course in visual or performing arts, foreign language, or career technical education (CTE), for purposes of fulfilling the high school graduation requirements. This bill is very beneficial to enhancing the decline of California’s career technical education programs. Supported by GSBE.
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