from Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
Legislation
This week the Assembly Business and Professions Committee passed AB 1671 (Huffman) which extends the sunset for zero retention withholding on CalTrans projects.
In 2008, SB 593 (Margett) was signed into law. This legislation prohibited the Department of Transportation (CalTrans) from withholding retention proceeds from its contractors when making progress payments for work performed on any transportation project. CalTrans had previously modified its contract policies on federally funded projects to eliminate retention on progress payments between CalTrans and its prime contractors, and its contractors and their subcontractors. SB 593 merely extended this policy to all CalTrans projects regardless of funding source. AB 1671 extends the sunset of the zero percent retention provision for all CalTrans' construction projects from its current 2014 date to 2020.
Several other bills of interest to report:
The Senate Labor and Industrial Relations Committee defeated both SB 1114 and 1115 (Dutton). SB 1114 would, until January 1, 2015, establish 10 hours as a day's work in a 40 hour workweek instead of the current 8 hour workday. The current overtime compensation requirements would apply for any work in excess of the 40 hour workweek or a 10 hour workday. After January 1, 2015, the provisions currently in law (8 hours a day/40 a week) would resume operation. SB 1114 sought to allow employers and employees a more flexible work schedule with needing to pay overtime after 8 hours. SB 1115 sought to grant work place flexibility for small employers. The bill provides that an individual nonexempt employee employed by an employer with 10 or fewer employees may work up to 10 hours per workday without any obligation on the part of the employer to pay an overtime rate of compensation if the employee requests this schedule in writing and the employer approves the request. The bill specifies that if an employee-selected flexible work schedule is adopted, the employer shall pay overtime at one and one-half times the employee's regular rate of pay for all hours worked over 40 hours in a workweek or over 10 hours in a workday, whichever is the greater number of hours. All work performed in excess of 12 hours per workday and in excess of eight hours on a fifth, sixth, or seventh day in the workweek shall be paid at double the employee's regular rate of pay. This bill was granted reconsideration and may be amended in some fashion.
Also not taken up in committee because of lack of votes was SB 1230 (Wright) which requires that, by January 1, 2014, the OSHSB adopts standards designed to ensure the safety of the operator in the installation, use, and operation of a verified diesel emission control strategy for on-road heavy-duty diesel-fueled motor vehicles. The bill would also prohibit the California Air Resources Board from requiring fleet owners to install verified diesel emission control strategies until six months after OSHSB approves the occupational safety standards for verified diesel emission control strategies. The bill also provides that this safety requirement must not impact the on-going implementation of CARB regulations. While the state does verify and certify diesel particulate filters, the verification process emphasizes the level of emission reductions and falls short in ensuring operator safety. There was heavy opposition from environmental concerns with this bill.
The Assembly Business and Professions Committee passed AB 2219 (Knight) which eliminates the sunset date on existing law requiring roofing contractors who hold a C-39 classification (roofing contractor) to maintain workers' compensation insurance, whether or not they have employees. According to the CSLB, "The cost of workers' compensation insurance continues to escalate, in large part, because of employers who fail to report employees. CSLB has performed a study in select cities to measure roofing contractors' compliance with insurance requirements. The study determined that approximately 50% of roofing contractors insured with (the) State Compensation Insurance Fund (SCIF) have "minimum policies." Basically, a minimum policy is the least amount for which the insurance provider is willing to insure an employer on a given policy. However, the insured is required to notify the carrier when they have payroll, but employers are not reporting payrolls to the insurance carriers."
The Senate Education Committee passed SB 1509 (Simitian) which deletes the existing sunset on the authority of school districts to enter into a design-build contract for the design and construction of a school facility, thereby permanently establishing the authority of K-12 districts to enter into design-build contracts. Current law authorizes a school district governing board to enter into a design-build contract for the design and construction of a school facility for projects in excess of two million five hundred thousand dollars ($2,500,000) if, after evaluating traditional design-bid-build and design build processes in a public meeting, the governing board makes written findings that use of the design-build process on a specific project will either: Reduce comparable project costs, expedite the project's completion, and/or provide features not achievable through the traditional design-bid-build method.
Coalition Efforts
Throughout the legislative year, GSBE participates in many coalitions in support and opposition to bills regarding regulatory reform or construction specific issues. Attached to this week’s Update are the coalition items GSBE has signed on to thus far. They include:
AB 338 (Wagner) - Requires that the Office of Administrative Law (OAL) submit a copy of any disapproved regulation to the Legislature when OAL finds that the agency exceeded its statutory authority in adopting the regulation. SUPPORT
AB 1537 (Cook) - Requires any major regulation proposed on or after January 1, 2013, to include a provision repealing the regulation two years after the date it is approved by the Office of Administrative Law (OAL). SUPPORT
AB 1627 (Dickinson) - Development: Vehicles Miles Traveled. OPPOSE
SB 1099 (Wright) - Provides that regulations adopted by state agencies shall take effect on either January 1 or July 1, and that an Internet link to each pending regulation shall be made available. SUPPORT
SB 964 and 965 (Wright) – Due process and transparency with Water Board regulations. SUPPORT
Court Ruling on Meal and Rest Period
The CA Supreme Court ruled this week that that labor laws clearly obligate employers to provide meal and rest breaks but rejected the argument they must make sure those breaks are work-free. The justices said businesses cannot be sued if they do not "impede or discourage" workers from taking breaks.
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