BILL ANALYSIS Ó
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 514|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 514
Author: Roger Hernández (D)
Amended: 4/27/11 in Assembly
Vote: 21
SENATE LABOR & INDUSTRIAL RELATIONS COMM. : 5-1, 6/29/11
AYES: Lieu, DeSaulnier, Leno, Padilla, Yee
NOES: Wyland
NO VOTE RECORDED: Runner
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 52-26, 5/23/11 - See last page for vote
SUBJECT : Public works: prevailing wage: hauling refuse
SOURCE : CA Teamsters Public Affairs Council
State Building and Construction Trades Council
of CA
DIGEST : This bill clarifies the definition of hauling of
refuse for purposes of the prevailing wage law.
Specifically, this bill (1) provides that "hauling of
refuse" includes the hauling of materials other than bona
fide commodities sold at fair market value from a public
works site, and (2) clarifies that a "bona fide commodity"
is a commodity for which there exists a publicly-trades
commodity market, such as copper, steel or aluminum.
ANALYSIS :
CONTINUED
AB 514
Page
2
Existing law:
1. Requires that not less than the general prevailing wage
rate be paid to all workers employed on a "public works"
project costing over $1,000 dollars and imposes
misdemeanor penalties for a violation of this
requirement.
2. Defines "public work" to include, among other things,
construction, alteration, demolition, installation or
repair work done under contract and paid for in whole or
in part out of public funds.
3. Defines "public works," as the hauling of refuse from a
public works site to an outside disposal location, with
respect to contracts involving any state agency,
including the California State University and the
University of California, or any political subdivision
of the state.
This bill clarifies the definition of "hauling of refuse"
for purposes of the prevailing wage law. Specifically,
this bill:
1. Provides that "hauling of refuse" includes the hauling
of materials other than bona fide commodities sold at
fair market value from a public works site.
2. Specifies that a "bona fide commodity" is a commodity
for which there exists a publicly-traded commodity
market, such as copper, steel or aluminum.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/11/11)
California Teamsters Public Affairs Council (co-source)
State Building and Construction Trades Council of
California (co-source)
California Conference Board of the Amalgamated Transit
Union
California Conference of Machinists
AB 514
Page
3
California Labor Federation
Chauffeurs, Teamsters and Helpers, Local No. 150
Engineers and Scientists of California
International Brotherhood of Electrical Workers
International Longshore and Warehouse Union
Professional and Technical Engineers, Local 21
Teamsters Local 853
UNITE HERE!
United Food and Commercial Workers Union, Western States
Council
Western States Council of Sheet Metal Workers
OPPOSITION : (Verified 8/11/11)
Associated Builders and Contractors of California
CR&R Incorporated (recycling and waste management firm)
ARGUMENTS IN SUPPORT : According to the author's office
and proponents, existing law requires that workers employed
at public works sites be subject to prevailing wage for
transporting refuse from the worksite to an offsite
location. Unfortunately, proponents contend, some
unscrupulous employers have rendered this provision
meaningless by selling refuse hauled from public works
sites for a nominal fee, a whole load for one dollar for
instance, and then refusing to pay the prevailing wage.
According to proponents, the rationale behind this practice
is that since the material hauled away had "some value," it
was no longer refuse.
Proponents argue that these loopholes are often exploited
to cut corners and deny workers their just compensation.
In order for existing statute to have a real effect, the
act of hauling refuse needs to be defined. This bill
addresses this fraudulent practice by clarifying that
refuse will be characterized as such unless the material is
legitimately worth something and is sold for fair market
value.
ARGUMENTS IN OPPOSITION : Opponents contend this bill
expands the prevailing wage requirement for public
contracts to the hauling of municipal solid waste. They
argue that this bill could substantially increase the cost
of services provided to schools and other public facilities
AB 514
Page
4
that have not been factored into contractual agreements and
would increase the costs of services to public agencies.
Opponents also argue that this bill unnecessarily expands
prevailing wage coverage of refuse hauling to the hauling
of waste from a job site that is going to be sold as a
recyclable commodity rather than trashed. According to
opponents, efforts should be focused on encouraging the
recycling of construction debris rather than endorsing
legislation to restrict recycling of these materials.
ASSEMBLY FLOOR : 52-26, 5/23/11
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes,
Furutani, Galgiani, Gatto, Gordon, Hall, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Lara, Bonnie
Lowenthal, Ma, Mendoza, Mitchell, Monning, Pan, Perea, V.
Manuel Pérez, Portantino, Skinner, Solorio, Swanson,
Torres, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Achadjian, Bill Berryhill, Conway, Donnelly,
Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman,
Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller,
Morrell, Nestande, Nielsen, Norby, Olsen, Silva, Smyth,
Valadao, Wagner
NO VOTE RECORDED: Cook, Gorell
PQ:do 8/16/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****