BILL NUMBER: AB 26 AMENDED
BILL TEXT
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
INTRODUCED BY Assembly Member Bonilla
DECEMBER 3, 2012
An act to add Section 39714 to the Health and Safety Code
amend Section 8050 of the Civil Code, and to amend
Section 1720 of, and to add Section 1720.7 to, the Labor Code ,
relating to greenhouse gases construction
.
LEGISLATIVE COUNSEL'S DIGEST
AB 26, as amended, Bonilla. California Global Warming
Solutions Act of 2006: Greenhouse Gas Reduction Fund.
Construction: prevailing wage and mechanics liens.
(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.
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.
(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.
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.
This bill would expand the definition of "work of improvement" to
also include all cleanup work performed at the site.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8050 of the Civil
Code is amended to read:
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 and all cleanup work
performed at the site .
SEC. 2. Section 1720 of the Labor Code
is amended to read:
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 , and work performed during the postconstruction
phases of construction, including, but not limited to, all cleanup
work at the jobsite . 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.
SEC. 3. Section 1720.7 is added to the
Labor Code , to read:
1720.7. 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.
SEC. 4. 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.
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.