BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           2537 (Furutani)
          
          Hearing Date:  8/4/08           Amended: 6/19/08
          Consultant:  Bob Franzoia       Policy Vote: Labor 3-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 2537 would extend from January 1, 2009 to  
          January 1, 2012, the sunset date on the exemption from the  
          definition of "public works" for any work performed by  
          volunteers or by members of the California Conservation Corps or  
          of local conservation corps.  The bill would require the  
          Director of Industrial Relations (DIR) to conduct a study to  
          evaluate the impact of allowing volunteers to work on public  
          works projects and to submit its findings to the Legislature by  
          June 30, 2011.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2008-09      2009-10       2010-11     Fund
          Sunset extension of limited       No new costs through  
          1/1/2011Various
          exemption from public works
          definition                                              

          DIR study                         Unknown, potentially  
          significant through         General
                                            6/30/2011    
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Chapter 330/2004 (AB 2690, Hancock) was the result of  
          negotiations arising out of an enforcement action taken by the  
          Department of Industrial Relations on a stream restoration  
          project funded by a Department of Water Resources (DWR) grant  
          that utilized volunteer labor (students at a nearby college).   
          After responding to a complaint, the Department of Industrial  
          Relations determined that, based on the submitted job  
          descriptions of the work, prevailing wages were required.  The  
          enforcement action and a subsequent DWR memorandum effectively  










          prohibited the mixed use of volunteer and paid labor on public  
          works projects until the above chapter amended Labor Code 1720.4  
          into its current form.

          By exempting work performed by volunteers, volunteer  
          coordinators and conservation corps members from the definition  
          of public works, the work these persons perform is not  
          compensated at the prevailing wage.

          At this time, the cost of the DIR study is unknown.  The cost  
          would not be absorbable and may require some potentially  
          significant level of General Fund support.  It is possible the  
          study will not be completed as preliminary information indicates  
          no one is maintaining data on volunteer participation in public  
          works projects.