Amended in Senate March 18, 2014

Amended in Senate June 25, 2013

Amended in Assembly May 28, 2013

Amended in Assembly April 22, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 26

Introduced by Assembly Member Bonilla

December 3, 2012

An act to begin delete add Section 39714 to the Health and Safety Code end delete begin insert amend Section 8050 of the Civil Code, and to amend Section 1720 of, and to add Section 1720.7 to, the Labor Code end insert , relating to begin delete greenhouse gases end delete begin insert construction end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 26, as amended, Bonilla. begin delete California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction Fund. end delete begin insert Construction: prevailing wage and mechanics liens. end insert

begin insert

(1) Existing law defines the term “public works” for purposes of requirements regarding the payment of prevailing wages. Existing law generally defines “public works” to include construction, alteration, demolition, installation, or repair work done under contract and paid in whole or in part out of public funds. Existing law defines “construction” for these purposes to include work performed during the design and preconstruction phases of construction. Existing law makes a willful violation of laws relating to payment of prevailing wages on public works a misdemeanor.

end insert begin insert

This bill would revise the definition of “construction” to also include work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. The bill would also expand the definition of “public works,” for the purposes of requirements regarding the payment of prevailing wages, to also include any task relating to the collecting or sorting, or both, of refuse or recyclable metals, such as copper, steel, and aluminum, performed at a public works jobsite. By expanding the definition of a crime, this bill would impose a state-mandated local program.

end insert begin insert

(2) The California Constitution grants mechanics, persons furnishing materials, artisans, and laborers of every class the right to a lien upon the property upon which he or she has bestowed labor or furnished material for the value of that labor done and material furnished. The California Constitution also requires the Legislature to provide, by law, for the speedy and efficient enforcement of those liens.

end insert begin insert

Existing statutory law governs works of improvement, including mechanics liens. Existing law grants specified persons who provide work authorized for a work of improvement the right to a mechanics lien. Existing law defines “work of improvement” to include, among other things, construction, alteration, repair, demolition, or removal, in whole or in part, of, or addition to, specified infrastructure and generally defines “work of improvement” to mean the entire structure or scheme of improvement as a whole, and includes site improvement.

end insert begin insert

This bill would expand the definition of “work of improvement” to also include all cleanup work performed at the site.

end insert begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin delete

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature. Existing law requires the Department of Finance, in consultation with the state board and any other relevant state agency, to develop, as specified, a 3-year investment plan for the moneys deposited in the Greenhouse Gas Reduction Fund.

end delete begin delete

This bill would specify that moneys from the Greenhouse Gas Reduction Fund are public funds, as defined. The bill would require that, if moneys from the Greenhouse Gas Reduction Fund are made available to the owner or operator of a refinery to perform work to reduce greenhouse gas emissions, then all work at the refinery related to reducing greenhouse gas emissions that is not performed by the owner’s or operator’s own employees and that falls within an apprenticeable occupation, as defined, shall be performed by skilled journeypersons, as defined, and registered apprentices, as defined. The bill would require that moneys from the Greenhouse Gas Reduction Fund only be made available for work at a refinery if the work is related to complying with a market-based compliance mechanism to reduce greenhouse gas emissions, as specified.

end delete begin delete

This bill would require the Chief of the Division of Apprenticeship Standards to approve, no later than January 1, 2016, a curriculum for an apprenticeship program in advanced safety training in performing work processes specific to technology related to the reduction of greenhouse gas emissions, as defined, and would require the chief, in consultation with the California Emergency Management Agency and the Division of Occupational Safety and Health, to periodically revise the curriculum to reflect current best practices. The bill would require an approved apprenticeship program or community college to issue a certificate to a worker who completes the approved curriculum. The bill would prohibit employers from being required to pay for the costs of the training or to pay wages to workers for the time spent in the training unless the employer has agreed to do so.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 8050 of the end insert begin insert Civil Code end insert begin insert is amended to
read: end insert

8050.  

(a) “Work of improvement” includes, but is not limited
to:

(1) Construction, alteration, repair, demolition, or removal, in
whole or in part, of, or addition to, a building, wharf, bridge, ditch,
flume, aqueduct, well, tunnel, fence, machinery, railroad, or road.

(2) Seeding, sodding, or planting of real property for landscaping
purposes.

(3) Filling, leveling, or grading of real property.

(b) Except as otherwise provided in this part, “work of
improvement” means the entire structure or scheme of
improvement as a whole, and includes site improvement begin insert and all
cleanup work performed at the site end insert .

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1720 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

1720.  

(a) As used in this chapter, “public works” means:

(1) Construction, alteration, demolition, installation, or repair
work done under contract and paid for in whole or in part out of
public funds, except work done directly by any public utility
company pursuant to order of the Public Utilities Commission or
other public authority. For purposes of this paragraph,
“construction” includes work performed during the design and
preconstruction phases of construction, including, but not limited
to, inspection and land surveying work begin insert , and work performed during
the postconstruction phases of construction, including, but not
limited to, all cleanup work at the jobsite end insert . For purposes of this
paragraph, “installation” includes, but is not limited to, the
assembly and disassembly of freestanding and affixed modular
office systems.

(2) Work done for irrigation, utility, reclamation, and
improvement districts, and other districts of this type. “Public
work” does not include the operation of the irrigation or drainage
system of any irrigation or reclamation district, except as used in
Section 1778 relating to retaining wages.

(3) Street, sewer, or other improvement work done under the
direction and supervision or by the authority of any officer or
public body of the state, or of any political subdivision or district
thereof, whether the political subdivision or district operates under
a freeholder’s charter or not.

(4) The laying of carpet done under a building lease-maintenance
contract and paid for out of public funds.

(5) The laying of carpet in a public building done under contract
and paid for in whole or in part out of public funds.

(6) Public transportation demonstration projects authorized
pursuant to Section 143 of the Streets and Highways Code.

(b) For purposes of this section, “paid for in whole or in part
out of public funds” means all of the following:

(1) The payment of money or the equivalent of money by the
state or political subdivision directly to or on behalf of the public
works contractor, subcontractor, or developer.

(2) Performance of construction work by the state or political
subdivision in execution of the project.

(3) Transfer by the state or political subdivision of an asset of
value for less than fair market price.

(4) Fees, costs, rents, insurance or bond premiums, loans, interest
rates, or other obligations that would normally be required in the
execution of the contract, that are paid, reduced, charged at less
than fair market value, waived, or forgiven by the state or political
subdivision.

(5) Money loaned by the state or political subdivision that is to
be repaid on a contingent basis.

(6) Credits that are applied by the state or political subdivision
against repayment obligations to the state or political subdivision.

(c) Notwithstanding subdivision (b):

(1) Private residential projects built on private property are not
subject to the requirements of this chapter unless the projects are
built pursuant to an agreement with a state agency, redevelopment
agency, or local public housing authority.

(2) If the state or a political subdivision requires a private
developer to perform construction, alteration, demolition,
installation, or repair work on a public work of improvement as a
condition of regulatory approval of an otherwise private
development project, and the state or political subdivision
contributes no more money, or the equivalent of money, to the
overall project than is required to perform this public improvement
work, and the state or political subdivision maintains no proprietary
interest in the overall project, then only the public improvement
work shall thereby become subject to this chapter.

(3) If the state or a political subdivision reimburses a private
developer for costs that would normally be borne by the public,
or provides directly or indirectly a public subsidy to a private
development project that is de minimis in the context of the project,
an otherwise private development project shall not thereby become
subject to the requirements of this chapter.

(4) The construction or rehabilitation of affordable housing units
for low- or moderate-income persons pursuant to paragraph (5) or
(7) of subdivision (e) of Section 33334.2 of the Health and Safety
Code that are paid for solely with moneys from the Low and
Moderate Income Housing Fund established pursuant to Section
33334.3 of the Health and Safety Code or that are paid for by a
combination of private funds and funds available pursuant to
Section 33334.2 or 33334.3 of the Health and Safety Code do not
constitute a project that is paid for in whole or in part out of public
funds.

(5) “Paid for in whole or in part out of public funds” does not
include tax credits provided pursuant to Section 17053.49 or 23649
of the Revenue and Taxation Code.

(6) Unless otherwise required by a public funding program, the
construction or rehabilitation of privately owned residential projects
is not subject to the requirements of this chapter if one or more of
the following conditions are met:

(A) The project is a self-help housing project in which no fewer
than 500 hours of construction work associated with the homes
are to be performed by the home buyers.

(B) The project consists of rehabilitation or expansion work
associated with a facility operated on a not-for-profit basis as
temporary or transitional housing for homeless persons with a total
project cost of less than twenty-five thousand dollars ($25,000).

(C) Assistance is provided to a household as either mortgage
assistance, downpayment assistance, or for the rehabilitation of a
single-family home.

(D) The project consists of new construction, expansion, or
rehabilitation work associated with a facility developed by a
nonprofit organization to be operated on a not-for-profit basis to
provide emergency or transitional shelter and ancillary services
and assistance to homeless adults and children. The nonprofit
organization operating the project shall provide, at no profit, not
less than 50 percent of the total project cost from nonpublic
sources, excluding real property that is transferred or leased. Total
project cost includes the value of donated labor, materials,
architectural, and engineering services.

(E) The public participation in the project that would otherwise
meet the criteria of subdivision (b) is public funding in the form
of below-market interest rate loans for a project in which
occupancy of at least 40 percent of the units is restricted for at
least 20 years, by deed or regulatory agreement, to individuals or
families earning no more than 80 percent of the area median
income.

(d) Notwithstanding any provision of this section to the contrary,
the following projects shall not, solely by reason of this section,
be subject to the requirements of this chapter:

(1) Qualified residential rental projects, as defined by Section
142(d) of the Internal Revenue Code, financed in whole or in part
through the issuance of bonds that receive allocation of a portion
of the state ceiling pursuant to Chapter 11.8 of Division 1
(commencing with Section 8869.80) of the Government Code on
or before December 31, 2003.

(2) Single-family residential projects financed in whole or in
part through the issuance of qualified mortgage revenue bonds or
qualified veterans’ mortgage bonds, as defined by Section 143 of
the Internal Revenue Code, or with mortgage credit certificates
under a Qualified Mortgage Credit Certificate Program, as defined
by Section 25 of the Internal Revenue Code, that receive allocation
of a portion of the state ceiling pursuant to Chapter 11.8 of Division
1 (commencing with Section 8869.80) of the Government Code
on or before December 31, 2003.

(3) Low-income housing projects that are allocated federal or
state low-income housing tax credits pursuant to Section 42 of the
Internal Revenue Code, Chapter 3.6 of Division 31 (commencing
with Section 50199.4) of the Health and Safety Code, or Section
12206, 17058, or 23610.5 of the Revenue and Taxation Code, on
or before December 31, 2003.

(e) If a statute, other than this section, or a regulation, other than
a regulation adopted pursuant to this section, or an ordinance or a
contract applies this chapter to a project, the exclusions set forth
in subdivision (d) do not apply to that project.

(f) For purposes of this section, references to the Internal
Revenue Code mean the Internal Revenue Code of 1986, as
amended, and include the corresponding predecessor sections of
the Internal Revenue Code of 1954, as amended.

(g) The amendments made to this section by either Chapter 938
of the Statutes of 2001 or the act adding this subdivision shall not
be construed to preempt local ordinances requiring the payment
of prevailing wages on housing projects.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1720.7 is added to the end insert begin insert Labor Code end insert begin insert , to read: end insert

begin insert

begin insert 1720.7. end insert   

For the limited purposes of Article 2 (commencing
with Section 1770), “public works” also means any task relating
to the collecting or sorting, or both, of refuse or recyclable metals,
such as copper, steel, and aluminum, performed at a public works
jobsite.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert

begin delete

SECTION 1.  

Section 39714 is added to the Health and Safety
Code, to read:

39714.  

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Apprenticeable occupation” means an occupation for which
the Chief of the Division of Apprenticeship Standards has approved
an apprenticeship program pursuant to Section 3075 of the Labor
Code.

(2) “Approved advanced safety training in performing work
processes to reduce greenhouse gas emissions” means a curriculum
of in-person classroom and laboratory instruction approved by the
Chief of the Division of Apprenticeship Standards in consultation
with the California Emergency Management Agency and the
Division of Occupational Safety and Health.

(3) “Registered apprentice” means an apprentice registered in
an apprenticeship program approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code who is performing work covered by the standards of that
apprenticeship program and receiving the supervision required by
the standards of that apprenticeship program.

(4) “Skilled journeyperson” means a worker who meets all of
the following:

(A) The worker accomplished either of the following:

(i) Graduated from an apprenticeship program for the applicable
occupation that was approved by the Chief of the Division of
Apprenticeship Standards or by the federal Office of
Apprenticeship, or by its predecessor agency.

(ii) Has at least as many hours of on-the-job experience in the
applicable occupation that would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the Chief of the Division of Apprenticeship Standards.

(B) The worker is being paid at least the prevailing hourly wage
rate for a journeyperson in the applicable occupation and
geographic area.

(C) The worker has completed within the prior two calendar
years at least 20 hours of approved advanced safety training in
performing work processes to reduce greenhouse gas emissions.
This requirement shall apply only to work performed on or after
January 1, 2018.

(b) Moneys from the fund shall be public funds as that term is
used in Article 2 (commencing with Section 1770) of Chapter 1
of Part 7 of Division 2 of the Labor Code.

(c) Insofar as moneys from the fund may be made available to
the owner or operator of a refinery pursuant to Section 39716 to
perform work to reduce greenhouse gas emissions, then all work
at the refinery related to reducing greenhouse gas emissions that
is not performed by the owner’s or operator’s own employees and
that falls within an apprenticeable occupation shall be performed
by skilled journeypersons and registered apprentices.

(d) For purposes of subdivision (c), moneys from the fund shall
be made available only for work at a refinery if the work is related
to complying with a market-based compliance mechanism
established pursuant to the California Global Warming Solutions
Act of 2006 (Division 25.5 (commencing with Section 38500)),
and is not required by any other law, regulation, or court order.

(e) Approved advanced safety training in performing work
processes specific to the reduction of greenhouse gas emissions
may be provided by an apprenticeship program approved by the
Chief of the Division of Apprenticeship Standards or by the
California Community Colleges. No later than January 1, 2016,
the Chief of the Division of Apprenticeship Standards shall approve
a curriculum, and, in consultation with the California Emergency
Management Agency and the Division of Occupational Safety and
Health, shall periodically revise the curriculum to reflect current
best practices. An apprenticeship program or community college
shall issue a certificate to a worker who completes the approved
curriculum. Notwithstanding any other law, employers shall not
be required to pay for the costs of the training or to pay wages to
workers for the time spent in the training unless the employer has
agreed to do so.

end delete