BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 219 (Daly) - Public works: concrete delivery. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 1, 2015 |Policy Vote: L. & I.R. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 27, 2015 Bill Summary: AB 219 would expand the definition of public works to include the hauling and delivery of ready-mixed concrete to carry out a public works contract. Fiscal Impact: The California Department of Transportation (CalTrans) estimates that this bill would result in increased costs of $21 million to $42 million (special funds), which include impacts to materials costs, compliance and administration. The Department of Industrial Relations (DIR) would incur first-year costs of $127,000 and $119,000 in the out-years (special funds) monitor and enforce the bill's prevailing wage requirements for non-CalTrans projects. To the extent that DIR issues additional fines, special funds revenues would AB 219 (Daly) Page 1 of ? increase. The magnitude is unknown. While the bill would impact CalTrans disproportionately at the state level, it could also potentially result in increased administrative, materials and compliance costs to other departments that use ready-mix concrete, including the High Speed Rail Authority, the Department of Water Resources, the Department of Corrections and Rehabilitation, the Department of General Services, and the three segments of higher education (the University of California, California State University, and the California Community Colleges). The magnitudes are unknown. Author Amendments: Specify (1) that entities hauling ready-mix concrete shall be considered subcontractors, and (2) that the bill is effective for contracts awarded after July 1, 2016. -- END --