BILL ANALYSIS Ó AB 2272 Page 1 ASSEMBLY THIRD READING AB 2272 (Gray) As Introduced February 21, 2014 Majority vote LABOR & EMPLOYMENT 5-1 APPROPRIATIONS 13-4 ----------------------------------------------------------------- |Ayes:|Roger Hernández, Alejo, |Ayes:|Gatto, Bocanegra, | | |Chau, Holden, | |Bradford, | | |Ridley-Thomas | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Holden, | | | | |Linder, Pan, Quirk, | | | | |Ridley-Thomas, Weber | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Morrell |Nays:|Bigelow, Donnelly, Jones, | | | | |Wagner | ----------------------------------------------------------------- SUMMARY : Specifies that "public work" for purposes of prevailing wage law also means projects funded by the California Advanced Services Fund (CASF) pursuant to existing law. FISCAL EFFECT : According to the Assembly Appropriations Committee, this bill will result in estimated costs of $280,000 to the Division of Labor Standards Enforcement for increased enforcement and investigations. COMMENTS : The CASF program was established to encourage deployment of high-quality advanced communications services to all Californians that will promote economic growth, job creation, and the substantial social benefits of advanced information and communications technologies. Existing law establishes the goal of the program as, by no later than December 31, 2015, to approve funding for infrastructure projects that will provide broadband access to no less than 98% of California households. The Central Valley Next Generation Broadband Infrastructure Project is a 1,371 mile fiber-optic infrastructure project through 18 counties that will reportedly serve a population of 4 million people when completed. The goal of the project is to provide direct fiber connectivity to 63 anchor institutions, access by another 40 anchor sites, and access to hundreds of AB 2272 Page 2 thousands of other businesses and residences. The $66.6 million project is funded through federal, state and local funds, with about 10% of its total funding coming from the CASF discussed above. On November 22, 2013, Department of Industrial Relations (DIR) Director Christine Baker issued a determination letter which found that the project, because it is partially funded with state funds, is a public work subject to California's prevailing wage requirements. This bill is sponsored by the California-Nevada Conference of Operating Engineers, who argues that this simply codifies the recent DIR determination in statute to avoid confusion and legal questions in the future. They believe this will give clarity to contractors who are bidding on CASF-funded projects, and to labor standards officers who are responsible for enforcing labor laws on the projects. There is no opposition on file. Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091 FN: 0003608