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.