from J. Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges (GSBE)
April and May are some of the busiest months of the legislative year as policy and fiscal committees wade through the many bills introduced for the new legislative session. May 17 is the last day for policy committees to consider bills, May 24 is the fiscal committee deadline and May 31 is the house of origin deadline which singles the half way point of the legislative year. As with all legislative years, the summer months are when issues begin to get hammered out with many of the more complicated proposals decided in the final days of the legislative year.
We want to hear from Builders Exchange Members. As we always note, our firm keeps our eyes on about 180 bills for GSBE. From that list, we engage in issues that 1) others in the construction space deem important, and 2) those bills we know are of importance to GSBE from the many years representing your interest. We do a good job, but could be better if we heard directly from you what is important. Please let us know if you hear of issues we might have overlooked or something you have read in another publication. We want to address your interests.
As we have discussed, over one-third of the legislature is new. And those Assembly Members just elected can serve up to 12 years. If you have the opportunity, get to know your legislator since there will some continuity for many years. I know some Exchanges have had the opportunity to be visited by their legislator. Having a relationship with your locally elected official could be beneficial should we ever need to engage on an important issue that directly impacts Exchanges. If you need some assistance doing this, let us know.
There are many pieces of legislation being considered this year. We selected from our list a snap shot of what we believe will continue to be some of the larger issues for the year:
In late April, Senate President pro Tempore Darrel Steinberg (D) amended his SB 731 that will act as the vehicle for major CEQA reform. This will be a bill that won’t take final from until the closing weeks of this legislative year. And, yes, for Sacramento King’s fans, the bill does allow any new arena to avoid any construction impediments from CEQA. See attached news release regarding the bill.
SB 7, a bipartisan bill by Senators Steinberg (D) and Canella (R), would prohibit 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 provisions on any public works contract. See attached news release from Senator Canella.
Construction interests continue to oppose and at the same time work with Assembly Member Jim Frazier (D) on his AB 1336 that is sponsored by the State Building and Construction Trades. AB 1336 proposes a number of changes related to enforcement of prevailing wage law by joint labor-management committees. Joint labor-management committees are authorized and established pursuant to the federal Labor Management Cooperation Act of 1978. The changes proposed by this bill are classified into two main categories: (1) civil actions filed by joint-labor management committees; and (2) requirements regarding certified payroll records.
Several specific issues with bill are that by deleting the requirement that the civil action be commenced not later than 180 days after acceptance of the public work, or the filing of a valid notice of completion is unnecessary and would create an imbalance with other enforcement provisions in the prevailing wage statutes that require the Division of Labor Standards Enforcement (DLSE) to issue a civil wage an penalty assessment within 180 days. DLSE regularly and routinely issues such assessments within the proscribed 180-day period, and there is no legitimate basis for creating a different period of time for joint labor-management committees.
The certified payroll record provisions of this bill threatens the privacy rights of California workers by changing the law to allow joint labor-management committees to obtain the names of workers and the last four digits of their social security numbers. Such committees are already entitled to obtain the addresses of these workers, and this additional information will most certainly enable joint labor-management committee representatives and employees to not only mail information and questionnaires to such workers but to also visit their homes and speak with them and their families directly; something the worker may not wish to occur.
There are provisions of the bill specifying the civil remedies that may be pursued by joint labor-management committees. It is believed plaintiffs may only file suit against the actual employer for wage claims. Conversely, Labor Code Section 1775 imposes "joint and several liability" between a contractor and subcontractor for wage claims. Because this bill directs courts to adhere to Section 1775, it is believed the bill is imposing "joint and several liability" where it did not previously exist. Attached is AB 1336 for review.
Last session, the construction industry opposed AB 1514 (Lowethal - D) that increased civil penalties for violations of excavation laws and authorizes the Public Utilities Commission (PUC) to prescribe rules for public utilities that are conducting subsurface operations and provide information to the State Attorney General or local district attorney on matters involving excavation violations. This year, the Assembly Member introduced AB 811 that set in place first, certification and then educational requirements on persons doing excavation work. The bill has met opposition from contractors and union organizations that do this type of construction work. It is uncertain at this point what the Assembly Member intends to do with this bill. It is hoped the issue is not pursued. Attached is most recent copy of the bill.
AB 10 (Alejo - D) will be flying full speed through the legislature this summer. AB 10 is this session’s effort to increase and index the state’s minimum wage requirements. The bill increases the state's minimum wage in three separate increments over the next three years. Thereafter, this bill requires the minimum wage to adjust annually for inflation based on the California Consumer Price Index. A copy of the bill is attached for review.
AB 433 (Gordon -D) is sponsored by BIA and authorizes licensed plumbing contractors to install residential fire protection systems for single- and two-family homes. Attached is the committee analysis that details the rational for the bill.
Lastly, the CSLB is sponsoring three bills: SB 261, SB 262 and SB 263 all by Senator Monning (D). The three bills are intended to address unlicensed and unauthorized contractor activity. GSBE is on record in support of SB 261 and SB 262. We are waiting on amendments to SB 263. The committee analysis for each of the three bills is included.
In addition, unlawful construction activity is costly. Included is a press released from the Labor Commissioner outlining recent fines for contractors attempting to circumvent the law.
We are also engaged in coalition efforts on regulatory reform. We keep an eye on budget issues that could impact construction (remember fixed priced contacts?) and are deeply engaged in healthcare reform, the health exchange, and other work place employer mandates.
In addition to legislation we can assist you and your membership with any CSLB licensing issues, wage and workplace questions at the DIR and issues at all other departments and agencies of state government.
J. Kevin Pedrotti
JK Pedrotti., Inc.
925 L Street, Suite 1450
Sacramento, CA 95814
916|441|3111 – o
916|708|5293 – m
www.jkpedrotti.com