BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 327| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 327 Author: Gordon (D) Amended: 4/30/15 in Assembly Vote: 21 SENATE LABOR & IND. REL. COMMITTEE: 5-0, 6/10/15 AYES: Mendoza, Stone, Jackson, Leno, Mitchell ASSEMBLY FLOOR: 78-0, 5/14/15 - See last page for vote SUBJECT: Public works: volunteers SOURCE: California State Building & Construction Trades California Council of Land Trusts DIGEST: This bill extends the sunset date on the exemption that allows volunteers to perform work on public works projects and not be paid the prevailing wage, as would otherwise be required. ANALYSIS: Existing law: 1)Defines public works as any construction, alteration, demolition, installation or repair work done under contract and paid for in whole or in part from public funds. This includes work performed during the design and pre-construction phase, including, but not limited to, inspection and land AB 327 Page 2 surveying. (Labor Code §1720) 2)Requires contracted public works projects to be submitted for bids by the public entity requesting the work, and that the contract is awarded to the lowest responsible bidder. The awarding body is required to ensure that the winning contractor is appropriately licensed with the Contractors' State Licensing Board, and has not been in barred from bidding on, accepting, or performing public contracts. (Labor Code §§1725.5 & 1750) 3)Requires employees who work on public works projects with a budget of $1,000 or more to be paid the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work for the specific location where the public work is to be performed. This prevailing wage is determined by the Department of Industrial Relations. (Labor Code §1771) 4)Exempts from public work requirements any project where the Department of Fish and Wildlife (DFW) contracts with public agencies, Indian tribes, or nonprofit organizations for fish and wildlife habitat preservation, restoration, and enhancement. (Fish and Game Code §1501.5) 5)Exempts any work performed by volunteers from the public works requirements, but the exemption allowing volunteers on public works projects is set to expire on January 1, 2017. Volunteers are defined as: Individuals who perform works for civic, charitable, or humanitarian reasons for a public agency or tax-exempt organization, such as a 501(c)(3), without any compensation; Volunteer coordinators. Members of the California Conservation Corps (CCC) or the Community Conservation Corps are also exempt. 1)Excludes from the definition of a volunteer: Anyone who works on the public works project for compensation; or Anyone who received payment from the contractor on the AB 327 Page 3 public works project for construction, alteration, demolition, installation, repair, or maintenance work on the same project. (Labor Code §1720.4) This bill extends the sunset on the exemption for volunteers on public works project out seven years, from January 1, 2017 to January 1, 2024. Background In 2004, AB 2690 (Hancock, Chapter 330, Statutes of 2004), created an exemption for volunteers from public works requirements, but also included the sunset of January 1, 2009. This bill came about from a 2003 Department of Industrial Relations (DIR) decision, which found that a stream restoration project using student volunteers should have paid prevailing wages and assessed back wages and civil penalties. At the time, the proponents argued that a public works exemption for volunteers was needed due to the "importance of volunteers in building community support for local projects", many of which included environmental projects such as stream restoration, beach clean-up, wetlands restoration, and trail building. This exemption has been extended several times, most recently in by AB 587 (Gordon, Chapter 219, Statutes of 2011). The proponents of this bill argue that this exemption has proven successful, and therefore it is important to extend this exemption for an additional 7 years to allow volunteers to continue to participate in preservation activities on public lands, including removing invasive species, river and beach clean-ups, and maintaining walking trails. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified6/10/15) California State Building & Construction Trades (co-source) California Council of Land Trusts (co-source) Amigos de los Rios Arroyos & Foothills Conservancy AB 327 Page 4 Benicia Tree Foundation Big Sur Land Trust Bolsa Chica Land Trust California Association of Local Conservation Corps California Association of School Building Officials California Native Plant Society California Park & Recreation Society California Special Districts Association California State Association of Counties California Urban Forests Council California Urban Streams Partnership Cache Creek Conservancy California League of Conservation Voters California ReLeaf California State Association of Counties California State Parks Foundation California Waterfowl California Watershed Network Cal-Invasive Plants Council CalNonprofits (CA Assoc of Nonprofits) Canopy Catalina Island Conservancy Cayucos Land Conservancy City of Burbank City of Danville City of Indian Wells Common Vision Community Services Employment Training Construction Employers' Association Council for Watershed Health Defenders of Wildlife Ducks Unlimited East Bay Municipal Utility District East Bay Regional Parks District Environment California Fresno Metropolitan Flood Control Friends of Balboa Park Friends of Harbors, Beaches & Parks Friends of the Urban Forest Habitat for Humanity Hollywood Beautification Team Huntington Beach Tree Society Intl. Society of Arboriculture, Western Chapter Just One Tree AB 327 Page 5 Keep Eureka Beautiful Koreatown Youth & Community Center Lake County Land Trust Land Conservancy of San Luis Obispo County Land Trust for Santa Cruz County Lassen Land & Trails Trust League of California Cities League to Save Lake Tahoe Los Angeles Conservation Corps Los Angeles Neighborhood Land Trust Marin Agricultural Land Trust McKinleyville Land Trust Mendocino Land Trust Mountains Recreation & Conservation Authority Mountains Restoration Trust Muir Heritage Land Trust Napa County Regional Park & Open Space District Natural Resources Defense Council North East Trees Ojai Valley Land Conservancy Our City Forest Pacific Forest Trust Palos Verdes Peninsula Land Conservancy Peninsula Open Space Trust Placer Land Trust Planning and Conservation League Richmond Trees Riverside Land Conservancy Roseville Urban Forest Foundation Rural County Representatives of California Sacramento Tree Foundation San Joaquin River Parkway and Conservation Trust Santa Clara Valley Audubon Society Save Mount Diablo Save the Bay Save the Redwoods League Sierra Cascade Land Trust Council Sierra Club California Sierra Foothill Conservancy Solano Advocates Green Environments Solano Land Trust Sonoma County Water Agency Sonoma Land Trust Southern CA Mountains Foundation AB 327 Page 6 State Park Partners Coalition Tahoe Resource Conservation District The City of Thousand Oaks Tree Foundation of Kern Tree Fresno Tree Lodi Tree Musketeers Tree Partners Foundation Tree San Diego TreeDavis TreePeople Trout Unlimited Truckee Donner Land Trust Trust for Public Land Urban Conservation Corps of the Inland Empire Urban ReLeaf Urban Tree Foundation Victoria Avenue Forever Wildlife Heritage Foundation Woodland Tree Foundation Your Children's Trees OPPOSITION: (Verified6/10/15) None received ARGUMENTS IN SUPPORT: According to the author, for more than 10 years, this exemption has proven a vital tool in keeping Californians connected to both their local community and our state's environment and natural resources in a meaningful, productive way - and without any examples of abuse having arisen. This bill would extend that exemption until 2024. The author states that even though California is currently experiencing a period of economic recovery, extending this important provision will allow California to continue to tap into one of our greatest resources for healthy communities and the environment - volunteerism. ASSEMBLY FLOOR: 78-0, 5/14/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, AB 327 Page 7 Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Linder, Medina Prepared by:Gideon Baum / L. & I.R. / (916) 651-1556 6/12/15 14:28:15 **** END ****