BILL ANALYSIS Ó
SB 693
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SENATE THIRD READING
SB
693 (Hueso)
As Amended June 27, 2016
Majority vote
SENATE VOTE: 31-1
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Labor |6-1 |Roger Hernández, Chu, |Patterson |
| | |Linder, McCarty, | |
| | |O'Donnell, Thurmond | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |16-4 |Gonzalez, Bloom, |Bigelow, Jones, |
| | |Bonilla, Bonta, |Obernolte, Wagner |
| | |Calderon, Chang, | |
| | |Daly, Eggman, | |
| | |Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Holden, Quirk, | |
| | |Santiago, Weber, | |
| | |Wood, Chau | |
| | | | |
SB 693
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| | | | |
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SUMMARY: Consolidates "skilled and trained workforce"
requirements of various provisions of existing law related to
alternative construction delivery methods, and makes other
changes. Specifically, this bill:
1)Authorizes a public entity to require a bidder, contractor or
other entity to use a "skilled and trained workforce" to
complete a contract or project regardless of whether the
public entity is required to do so by a statute or regulation.
2)Deletes various provisions of exiting law and instead
establishes a new comprehensive section of the Public Contract
Code applicable whenever a public entity is required by
statute or regulation to obtain an enforceable commitment that
a bidder, contractor, or other entity will use a "skilled and
trained workforce" to complete a contract or project, with the
following provisions:
a) Defines a "skilled and trained workforce" to mean a
workforce that meets all of the following conditions:
i) All the workers performing work in an apprenticeable
occupation in the building and construction trades are
either skilled journeypersons or apprentices registered
in a state-approved apprenticeship program.
ii) For work performed on or after January 1, 2017, at
least 30% of the skilled journeypersons are graduates of
an apprenticeship program, as specified.
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iii) For work performed on or after January 1, 2018, at
least 40% of the skilled journeypersons are graduates of
an apprenticeship program, as specified.
iv) For work performed on or after January 1, 2019, at
least 50% of the skilled journeypersons are graduates of
an apprenticeship program, as specified.
v) For work performed on or after January 1, 2020, at
least 60% of the skilled journeypersons are graduates of
an apprenticeship program, as specified.
b) Defines "graduate of an apprenticeship program" to mean
either of the following:
i) The individual has been issued a certificate of
completion under the authority of the California
Apprenticeship Council for completing an approved
apprenticeship program.
ii) The individual completed an apprenticeship program
located outside California and approved for federal
purposes, as specified.
c) Provides that the apprenticeship graduation requirements
are satisfied if, in a particular calendar month, either of
the following is true:
i) At least the required of skilled journeypersons
employed by the contractor or subcontractor meet the
graduation percentage requirement.
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ii) For the hours of work performed by skilled
journeypersons employed by the contractor or
subcontractor, the percentage of hours performed by
skilled journeypersons who met the graduation requirement
is at least equal to the required graduation percentage.
d) Provides that the contractor or subcontractor need not
meet the apprenticeship graduation requirements if, during
the calendar month the contractor or subcontractor employs
skilled journeypersons to perform fewer than 10 hours of
work on the contract or project.
e) Provides that a subcontractor need not meet the
apprenticeship graduation requirements if both of the
following are true:
i) The subcontractor was not listed as a subcontractor
or a substitute for a listed subcontractor.
ii) The subcontract does not exceed one-half of 1% of
the price of the prime contract.
f) Provides that when a contractor, bidder, or other entity
is required to provide an enforceable commitment that a
skilled and trained workforce will be used, the commitment
shall be made in an enforceable agreement that provides
specified provisions, including a monthly report
demonstrating compliance with these requirements, which
shall be a public record.
g) Provides that if the entity fails to provide the monthly
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report, the public agency or other awarding body shall
withhold further payment until a complete report is
provided.
h) Provides that if a monthly report does not demonstrate
compliance with these requirements, the public agency or
other awarding body shall withhold further payments until
the entity provides a plan to achieve substantial
compliance prior to completion of the contract or project.
i) Provides that these requirements shall not apply if any
of the following is true:
i) The entity has entered into a project labor
agreement that will bind all contractors and
subcontractors performing work on the project or contract
to use a skilled and trained workforce and the entity
agrees to be bound by that project labor agreement.
ii) The project or contract is being performed under the
extension or renewal of a project labor agreement that
was entered into by the entity prior to January 1, 2017.
iii) The entity has entered into a project labor
agreement that will bind the entity and all its
subcontractors at every tier to use a skilled and trained
workforce.
3)Amends provisions of existing law related to construction and
related work performed by contract at specified stationary
sources (petroleum refineries and petrochemical manufacturing
facilities) to do the following:
a) Specify that those provisions to not preclude the use of
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an alternative workweek schedule adopted pursuant to
existing law.
b) Incorporate the same definition of "graduate of an
apprenticeship program" described above.
c) Make other technical changes.
4)Provides that the amendments made by this bill shall not apply
to contracts that were advertised for bid or awarded before
January 1, 2017.
5)Provides that for contracts advertised for bid or awarded
before January 1, 2017, for which an entity or contractor
provided an enforceable commitment regarding the use of a
skilled and trained workforce, the entity may grant a request
by the entity or contractor to instead comply with the
requirements of this bill.
6)Makes related legislative findings and declarations.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, this bill would result in administrative costs to the
Division of Apprenticeship Standards (DAS) of approximately
$123,000 in the first year and $116,000 ongoing (special funds),
to respond to skilled workforce requirement inquires.
COMMENTS: This bill is sponsored by the State Building and
Construction Trades Council, who states that it is intended to
unify the state statutes regarding a "skilled and trained
workforce" for public construction contracts using certain
alternative delivery methods. They contend that this bill will
consolidate the statutes, ease compliance and implementation
issues, such as establishing streamlined reporting requirements
and clarifications to enforcement provisions. They argue that
consolidation of the statutes will provide uniformity and will
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ensure the statute can be appropriately amended in the future
should there be any changes needed.
Similarly, the Coalition for Adequate School Housing (CASH)
supports this bill, stating that it will clarify the
relationship between project labor agreements and the skilled
workforce requirements for design-build, best-value, and
lease-leaseback school facility projects. The bill also makes
these provisions consistent for all three of the project
methods. They argue that these changes will assist school
districts with clarification to appropriately implement these
school construction methods.
Opponents contend that provisions of the bill related to project
labor agreements create "loopholes" for evading the skilled and
trained workforce requirements of prior legislation. They
contend that if the use of a skilled and trained workforce is
truly a value to contracting, then it should apply to all
construction of a particular type and not exempt certain
projects simply because of the existence of a project labor
agreement.
Analysis Prepared by:
Ben Ebbink / L. & E. / (916) 319-2091 FN:
0003704
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