BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 514|
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THIRD READING
Bill No: AB 514
Author: Roger Hernández (D)
Amended: 8/23/11 in Senate
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 specifies what materials from the work
site are included in the definition of hauling of refuse,"
for purposes of clarifying if the employee is required to
be paid prevailing wages.
Senate Amendments of 8/23/11 specify that the "hauling of
refuse" does not include the hauling of recyclable metals
such as copper, steel and aluminum that have been separated
from other materials at the jobsite prior to transportation
and that are to be sold at fair market value to a bona fide
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purchaser.
ANALYSIS : Existing law requires that not less than the
general prevailing wage rate of per diem wages, as
determined by the director of the Department of Industrial
Relations (DIR), be paid to all workers employed on a
public works projects. The prevailing wage rate is the
basic hourly rate paid on public works projects to a
majority of workers engaged in a particular craft,
classification or type of work within the locality and in
the nearest labor market area.
Under existing law, "public works" also means the hauling
of refuse from a public works site to an outside
disposal-location, with respect to contracts involving any
state agency?or any political subdivision of the state."
This bill specifies what materials from the work site are
included in the definition of "hauling of refuse," for
purposes of clarifying if the employee is required to be
paid prevailing wages.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/23/11)
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
California Labor Federation
California State Pipe Trades Council
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
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Western States Council of Sheet Metal Workers
OPPOSITION : (Verified 8/23/11)
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
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.
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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 8/23/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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