BILL NUMBER: SB 792	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 30, 2014
	PASSED THE ASSEMBLY  AUGUST 30, 2014
	AMENDED IN ASSEMBLY  AUGUST 30, 2014
	AMENDED IN ASSEMBLY  AUGUST 22, 2014
	AMENDED IN ASSEMBLY  JUNE 30, 2014
	AMENDED IN ASSEMBLY  MAY 19, 2014
	AMENDED IN SENATE  JANUARY 27, 2014
	AMENDED IN SENATE  JANUARY 13, 2014
	AMENDED IN SENATE  MAY 14, 2013
	AMENDED IN SENATE  APRIL 22, 2013
	AMENDED IN SENATE  APRIL 10, 2013

INTRODUCED BY   Senator Padilla
   (Principal coauthor: Assembly Member John A. Pérez)

                        FEBRUARY 22, 2013

   An act to add Section 7109.5 to the Public Contract Code, relating
to administrative regulations.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 792, Padilla. Administrative regulations: corrosion prevention
and mitigation projects.
   (1) Existing law contains various provisions relating to contracts
by a public entity for the performance of public works of
improvement, including provisions for the payment of progress
payments and the disbursing and withholding of retention proceeds.
   This bill would require a public entity that awards a contract for
construction, alteration, demolition, installation, repair, or
maintenance work after January 1, 2017, that is paid for in whole or
in part with state funds, to require contractors and subcontractors
performing corrosion prevention and mitigation work to comply with
specified standards to be adopted by the Director of the Department
of Industrial Relations in consultation with the Department of Toxic
Substances Control. The bill would also exempt work on sheet metal
and ventilation systems and plumbing and piping systems, and precast
concrete work that is performed offsite, when the work is performed
by specified persons, from the standards adopted under these
provisions.
   (2) Because this bill would require local entities to comply with
additional contracting regulations for these projects, it would
impose a state-mandated local program.
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California's water and transportation infrastructure needs
will continue to increase dramatically. The cost of maintaining the
health and well-being of California and Californians is directly
linked to the safety of its water pipelines and storage tanks,
bridges, roads, and industry. Ensuring this depends primarily on two
factors: (1) the performance of proper, timely preventive maintenance
by certified workers and (2) the extent and severity of structural
corrosion or other deterioration.
   (b) According to a 2012 American Society of Civil Engineers study,
in the "1950s and 1960s, California spent 20 cents of every dollar
on capital projects. By the 1980s, that figure dropped to less than
five cents on the dollar. Current estimates put infrastructure
investment at around a penny on the dollar." Currently, 2,978 of the
24,812 bridges in California (12 percent) are considered structurally
deficient and roughly 8,000 of them are older than the recommended
50-year lifespan. Additionally, corrosion was found to be at a
critical level on the suspension span of the new $6.5 billion San
Francisco-Oakland Bay Bridge.
   (c) As California prepares for more than $7 billion in investments
in the state's water infrastructure, preventative measures like
corrosion prevention applications should be a part of all new
construction, retrofitting, and maintenance work. This protects
against deterioration of the infrastructure itself, as well as
environmental degradation from leakage, breaks, or release of toxic
materials. When steel corrodes, heavy metals are released into
storage tanks, pipelines, or other structures, which is hazardous in
the case of drinking water.
   (d) Corrosion prevention work is necessary for long-term
environmental protection. When a coating is properly applied, it can
last 10 to 20 years, depending on the product. When applied
incorrectly, repairs are necessary within 1 to 3 years, requiring
untold costs. Each time the structure surfacing needs to be repaired,
the existing coating must be removed. When this removal is not
conducted by a competent workforce, the surrounding environment can
be exposed to lead or hazardous materials contamination.
   (e) The Society for Protective Coatings (SSPC) states that 80
percent of coating failures are due to human error. Whether it be
from improper surface preparation, improper coating selection,
improper applications, improper drying, curing, or overcoating, a
certified professional can help prevent these failures. When
certified by an independent third party, such as NACE or SSPC, there
is assurance that experienced professionals will complete the project
on time and according to the industry specifications.
  SEC. 2.  Section 7109.5 is added to the Public Contract Code, to
read:
   7109.5.  (a) A public entity, as defined in Section 7200, that
awards a contract for construction, alteration, demolition,
installation, repair, or maintenance work after January 1, 2017, that
is paid for in whole or in part with state funds shall require all
contractors and subcontractors performing corrosion prevention and
mitigation work to comply with the standards adopted pursuant to this
section.
   (b) Contractors and subcontractors performing contracts for
construction, alteration, demolition, installation, repair, or
maintenance work awarded after January 1, 2017, that are paid for in
whole or in part with state funds shall, when performing corrosion
prevention and mitigation work, comply with the standards adopted
pursuant to this section.
   (c) On or before January 1, 2016, the Director of the Department
of Industrial Relations in consultation with the Department of Toxic
Substances Control, shall adopt regulations establishing standards
for the performance of corrosion prevention and mitigation work on
public projects that reflect industry best practices. Such industry
best practices shall include, but are not limited to, all of the
following:
   (1) Use of trained and certified personnel for surface preparation
and application of protective coatings and linings to steel and
concrete surfaces.
   (2) Use of inspectors to ensure best practices and standards are
met.
   (3) A plan to prevent environmental degradation, including, but
not limited to, careful handling and containment of hazardous
materials such as lead paint.
   (d) For purposes of this section:
   (1) "Trained and certified personnel" means both of the following:

   (A) To the maximum extent feasible, workers performing surface
preparation and application of protective coatings and linings to
steel and concrete surfaces who are classified as journey-level
workers shall be certified by an organization generally accepted in
the industry as meeting the NACE 13/ACS 1 standard or a similar
standard that is generally accepted in the industry.
   (B) Workers performing surface preparation and application of
protective coatings and linings to steel and concrete surfaces who
are classified as apprentices shall be registered in an industrial
apprenticeship program approved by the Division of Apprenticeship
Standards that provides training to meet the NACE 13/ACS 1 standard
or a similar standard that is generally accepted by the industry.
   (2) "NACE 13/ACS 1 standard" means the Society for Protective
Coatings/NACE International standard for an industrial coating and
lining application specialist.
   (e) The standards adopted pursuant to this chapter shall not apply
to work on sheet metal and ventilation systems or on plumbing and
piping systems or to precast concrete work that is performed offsite
when the work on these systems or precast concrete work is performed
by either:
   (1) Skilled journeypersons who are graduates of an apprenticeship
program for the applicable occupation that was either approved by the
Chief of the Division of Apprenticeship Standards pursuant to
Section 3075 of the Labor Code or located outside California and
approved for federal purposes pursuant to the apprenticeship
regulations adopted by the federal Secretary of Labor.
   (2) Apprentices registered in an apprenticeship program for the
applicable occupation that was approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code.
  SEC. 3.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.