BILL ANALYSIS Ó
AB 1158
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Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 1158
(Campos) - As Amended April 16, 2015
SUBJECT: Jobs and Economic Improvement Through Environmental
Leadership Act of 2011: prevailing wage
SUMMARY: Amends provisions of the Jobs and Economic Improvement
Through Environmental Leadership Act of 2011 related to the
payment of "prevailing wages." Specifically, this bill:
1)Specifies that existing requirements related to the payment of
"prevailing wages" are labor standards subject to enforcement
by the Division of Labor Standards Enforcement under existing
law.
2)Provides that a project applicant who fails to pay prevailing
wages or fails to ensure that prevailing wages are paid, is
subject to specified civil penalties set forth under existing
law.
3)Contains an urgency clause.
EXISTING LAW:
AB 1158
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1)Enacts the Jobs and Economic Improvement Through Environmental
Leadership Act of 2011, which authorizes the Governor, until
January 1, 2016, to certify certain projects for specified
streamlining under the California Environmental Quality Act
(CEQA) if the project meets certain conditions.
2)Specifies, among other conditions, that the project must
result in a minimum investment of $100 million in California
upon completion of construction.
3)Specifies, among other conditions, that the project must
create high-wage, highly-skilled jobs that pay prevailing
wages and living wages and provide construction jobs and
permanent jobs for Californians, and help reduce unemployment.
4)Provides that, for purposes of this requirement, "jobs that
pay prevailing wages" means that all construction workers
employed in the execution of the project will receive at least
the general prevailing rate of per diem wages, as determined
by the Director of Industrial Relations under existing law.
5)Specifies that if such a project is certified for
streamlining, the project applicant shall include these
prevailing wage requirements in all contracts for the
performance of the work.
FISCAL EFFECT: Unknown
COMMENTS: AB 900 (Buchanan and Gordon), Chapter 354, Statutes
of 2011, enacted the Jobs and Economic Improvement Through
Environmental Leadership Act of 2011. Among other things, AB
900 created an expedited judicial review procedure under CEQA
for various types of LEED silver-certified infill projects,
clean renewable energy projects, and clean energy manufacturing
AB 1158
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projects.
Among other things, AB 900 specified that the project must
create high-wage, highly-skilled "jobs that pay prevailing
wages" and living wages and provide construction jobs and
permanent jobs for Californians, and help reduce unemployment
These provisions were revised by SB 743 (Steinberg), Chapter
386, Statutes of 2013, which generally addressed issues related
to the Sacramento Kings arena construction project. However, SB
743 also revised certain provisions of AB 900, including those
related to the payment of "prevailing wages" on covered
projects.
Specifically, SB 743 added language that provided that, for
purposes of this requirement, "jobs that pay prevailing wages"
means that all construction workers employed in the execution of
the project will receive at least the general prevailing rate of
per diem wages, as determined by the Director of Industrial
Relations under existing law. SB 743 also added language that
specified that if such a project was certified for streamlining,
the project applicant would be required to include these
prevailing wage requirements in all contracts for the
performance of the work.
This analysis only addresses the "prevailing wage" requirements
of AB 900 and SB 743. For a more detailed discussion of the
other policy issues raised by those bills, please refer to the
respective policy committee analyses of those prior pieces of
legislation.
ARGUMENTS IN SUPPORT
AB 1158
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According to the author:
The term 'prevailing and living wages' in AB 900 was not
defined in its original language. It was defined two years
later, in SB 743 (Steinberg, 2013), as either the hourly wage
rate of workers engaged in the same type of work within the
nearest labor market area, or a calculation using the
collective bargaining agreement rates from the nearest labor
market area.
Although SB 743 helped in the calculation of prevailing wages,
it did not establish an enforcement mechanism to make sure
that project developers pay them. Because of this, there are
reported cases of project developers obtaining CEQA
streamlining benefits from the Governor, but not following
through with the payment of prevailing wages to their workers.
Environmentally friendly projects with CEQA exemptions have
been crucial in putting more people to work. However, if they
fail to pay their workers fair wages, state and private
agencies must be held responsible for not following their
commitment to the Legislature, to the Governor, and to their
workers."
REGISTERED SUPPORT / OPPOSITION:
Support
AB 1158
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None on file.
Opposition
None on file.
Analysis Prepared by:Ben Ebbink / L. & E. / (916) 319-2091