from Kevin J Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
Legislation
It was another busy week for legislative hearings and this will continue through one of the first policy committee deadlines next week. Below is a recap of the key bills pertaining to the construction industry that was acted upon this week:
AB 484 (Eng) – Even after excluding CSLB licensees, the committee held this bill after it was heard again on reconsideration. Permits the Franchise Tax Board (FTB) to suspend state occupational and professional licenses because of unpaid tax liabilities. The sponsor states that the intent of the bill is not to take away an individual's livelihood, but to encourage him or her to file and pay their taxes. The bill was strongly opposed by numerous construction interests, including GSBE, stating that a contractor must maintain their license throughout all phases of a job in order to be paid. Under the provisions of AB 484, the qualifier for the construction company could have their license suspended due to a FTB tax problem which could place the entire company and existing projects in jeopardy. The bill was defeated in the Assembly Business and Professions Committee.
AB 1119 (Emmerson) - Revises, recasts, and consolidates the provisions governing the timely payment of progress payments, retention proceeds, and final payments under a contract for a public or private work of improvement, and subjects a licensed contractor to disciplinary action by the Contractors' State License Board (CSLB) for a violation of these provisions. The bill was passed by the Assembly Business & Professions Committee and double-referred to the Assembly Judiciary Committee. Similar bills include: AB 396, SB 629 and SB 802.
AB 569 (Emmerson) – Sponsored by UPS and supported by AGC and other construction groups that have union contracts. The bill provides a limited carve-out for meal and rest periods. Associated General Contractors argue that some construction companies operate under a collective bargaining agreement. However, as a result of recent case law, without this legislation a collective bargaining agreement does not supersede the statute. This bill will provide some needed clarity in the current meal period rules for the construction industry. Many business groups oppose this piece-meal approach and prefer a more comprehensive solution. Passed the Assembly Labor Committee.
AB 660 (Torrico) - Provides a person shall not perform work on any fire suppression system unless he or she possesses a valid sprinkler fitter or limited scope sprinkler fitter certificate issued by the State Fire Marshall. Proponents state that while other states have laws that require training through an apprenticeship program and require fire sprinkler fitters to be licensed or registered to install fire sprinklers and other fire extinguishing systems, California does not. The California's Plumbing, Heating, and Cooling Contractors (CAPHCC) believes this bill creates a double license for the contractors as well as an additional license for tradesman working on these systems. A similar bill died last session. SB 405 (Cogdill) is a competing bill. AB 660 passed the Assembly Governmental Organization Committee. Double-referred to Assembly Business & Professions Committee.
AB 1000 (Ma) - Provides that an employee who works in California for seven or more days in a calendar year is entitled to paid sick days, compensated at the same wage the employee normally earns during regular work hours. Specifies that paid sick days accrue at the rate of no less than one hour for every 30 hours worked. Passed by Assembly Labor Committee over the objection of employer groups.
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