SACRAMENTO UPDATE - May 31, 2013

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from Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges


Today marks the house of origin deadline as legislation passes from one house to the other. With last weeks Appropriations Committee suspense item deadline and todays floor deadline, the number of remaining bills, while still weighty, has been significantly reduced. For those that participated in our telephone conference call several weeks ago regarding key legislation and political matters, this update will be repetitive.

Health care is a dominate issue this year with the Health Benefit Exchange coming on line later this year. If you have any questions regarding health reform, please let us know. Our firm is deeply engaged in this topic on behalf of a number of health related clients.

We continue to track many bills for GSBE. If anyone would like a complete list, please let us know and a copy will be forwarded to you.

If you have an issue with a state agency or department please let us know. You might be surprised with what we can assist with.

Below is a snap shot of the some key issues that will be under consideration during the second half of the legislative year:

CEQA reform continues on track as a work in progress according to SB 731 author Senator Darrell Steinberg. As you may recall, the champion of CEQA reform, Michael Rubio, resigned from the senate to take a corporate government affairs position. Following this, labor and environmental groups said they would strongly oppose any changes to CEQA. It appears the various factions have softened their opinions and appear more conciliatory towards a legislative tweak. It may by a coincidence that this legislation could clear environmental roadblocks to the building of downtown Sacramento Kings arena.

We came out strongly concerned with the introduction of AB 811 dealing with excavation and the issue of underground utility strikes. The bill originally proposed certification through the CSLB for all persons who do any excavation work. The bill then changed to exempt any person who has been though an apprenticeship program. This measure has been made a two-year bill.

AB 1336 pertaining to prevailing wage payroll records continues to be of concern. Meetings have been held with the author and sponsor and further amendments are forthcoming. It is uncertain whether amendments the author is willing to take will remove concern of construction employers.

The Assembly passed AB 10 which increases the state’s minimum wage to $9.25 over a three year period and provides for CPI adjustments beginning January 1, 2017. Business waged a fight on the Assembly floor to attempt to remove the indexing provisions.

SB 7 has passed the Senate. This legislation prohibits a charter city from receiving or using state funding for a construction project if the city has a charter provision or ordinance that authorizes a contractor not to comply with prevailing wage requirements on any public works contract.

GSBE has supported both SB 261 and SB 262 sponsored by the CSLB. Both bills are now in the Assembly.

Existing law provides authority for only criminal misdemeanor prosecution to discipline licensed and unlicensed individuals for specified violations, such as misusing or misrepresenting license information and aiding an unlicensed individual in evading the licensing requirements. SB 261 would allow CSLB to take administrative action for these types of violations.  This change will enable the CSLB to establish a relevant record against licensed and unlicensed individuals who commit these egregious violations.

SB 262 provides that failure of a qualifying individual to exercise direct supervision and control of construction operations constitutes grounds for disciplinary action, and shall be punishable as a misdemeanor or imprisonment in a county jail, by a fine of $3,000 - $5,000, or both.

GSBE joined a coalition in support of a BIA sponsored bill that is n the Senate. Narrowly drafted, AB 116 applies only to “pipeline” maps that are in existence when the bill takes effect and will expire by January 1, 2016. By its terms, AB 116 does not apply to maps that have already expired nor does it apply to maps taken out after the effective date of the bill. This bill is a necessary response to the impact the Great Recession has had on California, and its overall economy.  AB 116 captures and extends the life of a significant portion of the nearly 3,000 approved tentative tract and parcel maps in the state; a large portion of which are approved in high density urban cores, targeting affordable to middle income working individuals and families.

If you have any questions, please contact our office.

 

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