BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 644|
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                                 THIRD READING


          Bill No:  SB 644
          Author:   Hancock (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE LABOR & INDUST. RELATIONS COMMITTEE  :  4-0, 3/23/11
          AYES:  Lieu, Wyland, Padilla, Yee
          NO VOTE RECORDED:  DeSaulnier, Leno, Runner


           SUBJECT  :    Public works:  volunteers

           SOURCE  :     Author


           DIGEST  :    This bill extends the sunset on the exemption 
          for volunteers on public works project out five years, from 
          January 1, 2012 to January 1, 2017.

           ANALYSIS  :    Existing law 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 surveying.

          Existing law requires, with certain exceptions, 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 License 
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          Board, and has not been in barred from bidding on, 
          accepting, or performing public contracts.

          Existing law requires all 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.

          Existing law exempts from public work requirements any 
          project where the Department of Fish and Game (DFG) 
          contracts with public agencies, Indian tribes, or nonprofit 
          organizations for fish and wildlife habitat preservation, 
          restoration, and enhancement.  Existing law also allows the 
          DFG to contract with public and private entities for fish 
          and wildlife habitat preservation, restoration, and 
          enhancement, but these contracts are only exempt from 
          public work requirements if they are less than $50,000.

          Existing law 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, 2012.

          Under existing law, "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 or the 
          Community Conservation Corps are also exempt.  

          Existing law 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 
            public works project for construction, alteration, 
            demolition, installation, repair, or maintenance work on 

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            the same project.  

          This bill extends the sunset on the exemption for 
          volunteers on public works project out five years, from 
          January 1, 2012 to January 1, 2017.
           
          Prior/Related Legislation
           
          AB 587 (Gordon), which is currently before the Assembly 
          Labor and Employment Committee, is nearly identical to this 
          bill.  

          AB 987 (Grove), which is currently before the Assembly 
          Labor and Employment Committee, makes significant changes 
          to public works requirements, including the removal of the 
          sunset on the volunteer exemption. 

          AB 2690 (Hancock), Chapter 330, Statutes of 2004, created 
          the initial public work exemption for volunteers, and a 
          sunset date of January 1, 2009.

          AB 2537 (Furutani), Statutes of 2008, Chapter 678, extended 
          the sunset until January 1, 2012.
          
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  3/23/11)

          Association of California Water Agencies
          California Association of School Business Officials
          California Park and Recreation Society 
          California Watershed Network
          Newport Bay Conservancy
          Regional Council of Rural Counties
          Sacramento County Board of Supervisors


           ARGUMENTS IN SUPPORT  :    Proponents argue that during these 
          difficult fiscal times, local government needs to be able 
          to call upon volunteers to complete important projects and 
          maintain local park infrastructure.  Proponents also note 
          that hundreds of restoration projects are taken up by local 
          governments in partnership with non-profits and local 

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          business, and that project managers work hard to ensure 
          that there is a clear delineation between tasks for 
          volunteers and tasks for paid employees and contractors.  
          Proponents also note that there have been no reported labor 
          law violations on environmental and restoration projects 
          since the public works exemption was put in law in 2004.


          PQ:mw  3/24/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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