BILL ANALYSIS
AB 2537
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2537 (Furutani)
As Amended August 29, 2008
Majority vote
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|ASSEMBLY: |75-0 |(May 19, 2008) |SENATE: |34-3 |(August 31, |
| | | | | |2008) |
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Original Committee Reference: L. & E.
SUMMARY : Extends a public works exemption for specified
"volunteers" and other related individuals until 2012.
The Senate amendments :
1 Require the Department of Industrial Relations (DIR) to submit
a written report to the Legislature by January 1, 2011, that
does both of the following:
a) Describes the number and nature of complaints received
and investigations conducted involving the use of
volunteers on public works projects; and,
b) Provides an estimate of each of the following as they
relate to specified public works projects:
i) The number of hours per year that volunteers work on
public works projects;
ii) The cost per year of the public works projects and
the percentage of work performed by volunteers; and,
iii) The types of work done by volunteers on the public
works projects.
2)Appropriate $100,000 from the Environmental License Plate Fund
for the purposes of funding the report described above.
3)Add related legislative findings and declarations.
EXISTING LAW :
1)Requires the prevailing wage rate to be paid to all workers on
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public works projects over $1,000.
2)Defines "public work" to include, among other things,
construction, alteration, demolition, installation or repair
work done under contract and paid for in whole or in part out
of public funds.
3)Provides that the provisions of existing law dealing with the
payment of prevailing wages on public works projects do not
apply to work performed by a volunteer or volunteer
coordinator, as defined:
a) "Volunteer" as an individual who performs work for
civic, charitable, or humanitarian reasons for a public
agency or 501 (c)(3) tax-exempt organization without
promise, expectation, or receipt of any compensation for
work performed; and,
b) "Volunteer coordinator" as an individual paid by a
corporation or 501(c)(3) tax-exempt organization to oversee
or supervise volunteers.
4)Clarifies that an individual may be considered a volunteer
coordinator even if the individual performs some
non-supervisory work on a project alongside the volunteers, so
long as the individual's primary responsibility is to
supervise.
5)Specifies that an individual shall be considered a volunteer
only when his or her services are offered freely and without
pressure and coercion, direct or implied, from an employer.
6)Authorizes a volunteer to receive reasonable meals, lodging,
transportation, and incidental expenses or nominal
non-monetary awards if those benefits and payments are not a
substitute form of compensation.
7)Excludes from the definition of volunteer an individual, if
that person is otherwise employed for compensation at any
time: a) in the construction, alteration, demolition,
installation, repair, or maintenance work on the same project;
or, b) by a contractor, other than a 501(c)(3) tax-exempt
organization, that is receiving payment to perform
construction, alteration, demolition, installation, repair or
maintenance work on the same project.
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8)Provides that the provisions of existing law dealing with the
payment of prevailing wages on public works projects do not
apply to work performed by members of the California
Conservation Corps or a certified Community Conservation
Corps.
9)Provides a January 1, 2009, sunset date to these provisions.
AS PASSED BY THE ASSEMBLY , this bill extended the public works
exemption for specified "volunteers" and other related
individuals until 2012.
FISCAL EFFECT : According to the Senate Appropriations
Committee, the cost of the DIR study is unknown.
COMMENTS : This bill revisits an issue that arose in 2004
concerning the use of volunteer labor on certain public works
projects. Much of the attention that arose at that time was a
result of an enforcement action taken by DIR in July 2003 in
relation to a stream restoration project in Shasta County.
In fiscal year 2000-01, the Department of Water Resources (DWR)
provided grant funding to the Sacramento Watersheds Action Group
for a stream restoration project on Sulphur Creek in the City of
Redding. According to media reports, students from nearby
Shasta College were used for various activities including
planting seeds, clearing brush, repairing culverts, installing
rock beds to prevent erosion, and trash removal. The students
reportedly earned course credit for classes in watershed
restoration.
Responding to a complaint from a local labor organization, DIR
investigated and determined that, based on the submitted job
descriptions of the work performed by students and volunteers,
prevailing wages were required for the following work: willow
staking, spreading seeds and mulch, planting shrubs, operating
heavy equipment, site cleanup, off-hauling garbage, and planting
vegetation. The subsequent DIR enforcement action assessed back
wages and civil penalties.
In September 2003, DWR issued a memorandum that stated, "Due to
the serious implications to our programs that would arise from
being unable to support volunteerism, DWR is taking a
conservative approach until these issues can be clarified? We
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will not enter into any new contracts possibly affected by these
issues until we have a clearer picture of the obligations of DWR
and the grantees under the Labor Code."
Following the July 2003 enforcement action, there was an outcry
among many in the environmental community that the prior Labor
Code Section 1720.4, as interpreted by DIR, effectively
prohibited the mixed use of volunteer and paid labor on public
works projects.
After lengthy negotiations between the environmental community
and representatives of organized labor, the Legislature enacted
AB 2690 (Hancock), Chapter 330, Statutes of 2004. AB 2690
amended Labor Code Section 1720.4 into its current form.
In order to address concerns that there may be abuses of any
"volunteer" exemption to California's prevailing wage laws, AB
2690 contained a January 1, 2009, sunset date.
Supporters argue that that ability to volunteer is a cornerstone
for many important projects in California, including land and
water conservation projects. It provides any citizen the
opportunity to donate his or her time for projects that benefit
their local community. Volunteerism is a crucial component to
the health and vitality of California, and the system works.
Supporters state that, at a time when the state is addressing
very serious fiscal deficits, extending this sunset provision
will allow California to tap into one of our greatest and most
economical resources - the generosity of human spirit.
Supporters also state that, since the revised volunteer
exemption was enacted in 2004, there have been no reported
complaints of abuse of the exemption reported to DIR or the
Division of Labor Standards Enforcement.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0007698