from J. Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
September 13, 2013
This report is being completed on the last day of the first year of the two-year legislative session. The Governor now has 30 days (October 13) to act on legislation that has reached his desk. A future update will highlight new laws that go into effect on January 1, 2014.
The year began with strong indications that major CEQA reform was a possibility this year. However, faced with pressure from business groups and the Brown administration on one side and environmental groups on the other, the author of SB 731, Senator Darrel Steinberg, announced he was putting the bill over until next year. Steinberg had sought legislation that would speed up the state’s unruly environmental review process for infill development projects. This is the second consecutive year that Steinberg has pulled back on CEQA legislation in the closing hours of the legislative year. The good news is that while not pursuing a more expansive CEQA reform measure, Steinberg pushed SB 743 that is intended to speed the construction of a new basketball arena for the Sacramento Kings to meet an NBA deadline.
The legislature sent to the Governor a minimum wage increase bill that the Governor has stated he will sign. AB 10 (Alejo) increases the minimum wage as follows: $1.00 by July 2014; another $1.00 increase by January 2016 – thereby raising the minimum wage from $8.00 to $10.00 by 2016 – a 25% increase. “The minimum wage has not kept pace with rising costs,” said Governor Brown. “This legislation is overdue and will help families that are struggling in this harsh economy.”
California’s health benefit exchange, Covered California, goes on-line on October for coverage beginning in 2014. Covered California will operate a specific program, the Small Business Health Options Program (SHOP) that will offer new health insurance choices to small businesses and their employees. The program is designed for employers with one to 50 eligible employees to give them opportunities to offer a variety of choices to their employees. Information is available at www.coveredca.com.
Listed below is a snap shot of the bills that have been sent to the Governor:
AB 10 - Minimum wage increase (see above). At Governor’s office.
SB 7 - 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. At Governor’s office.
AB 44 - Requires a prime contractor, when submitting bids for any state or local government public works project, to list the contractor license number for each subcontractor to perform work on that project. This requirement will apply to bids received on and after July 1, 2014. Signed by Governor.
AB 433 - Authorizes licensed plumbing contractors to install residential fire protection systems for single- and two-family homes through January 1, 2017. Authorize the State Fire Marshal to propose regulations that are deemed necessary in order to ensure fire safety in buildings and structures including regulations related to construction. At Governor’s office.
AB 1140 - Provides that changes made to prevailing wage rates apply on their effective date to any contract that is awarded or for which notice to bidders is published on or after January 1, 2014. According to author of bill, sometimes there is a long lag between when a project is advertised for bid and when construction starts - which leads to situations in which the prevailing wage determination does not reflect the actual prevailing wage for the craft and locality. At Governor’s office.
AB 1165 - Requires that the Occupational Safety and Health Appeals Board (OSHAB) may only stay the abatement of a serious, willful or repeat violation if the employer has a high likelihood of successfully contesting the violation and that staying the abatement does not adversely impact the health or safety of employees. At Governor’s office.
AB 1336 - This bill extends the deadline from 180 days to 18 months for the Labor Commissioner to serve a civil wage and penalty assessment against a public work contractor or subcontractor, or both for under payment of wages. This bill also extends the deadline from 180 days to 18 months for a joint labor-management committee to bring an action against an employer that fails to pay the prevailing wage to its employees. This bill revises and recasts remedies that may be awarded by a court in these joint labor-management committee actions. The bill authorizes the court to award interest, liquidated damages, and injunctive relief in these actions. At Governor’s office.
J. Kevin Pedrotti
JK Pedrotti., Inc.
925 L Street, Suite 1450
Sacramento, CA 95814
916|441|3111 – o
916|708|5293 – m