BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 829|
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UNFINISHED BUSINESS
Bill No: SB 829
Author: Rubio (D), et al.
Amended: 4/9/12
Vote: 21
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Public contracts: public entities: project
labor agreements
SOURCE : State Building and Construction Trades Council
of California
DIGEST : This bill prohibits the use of state funds for
any charter city construction projects if the charter city
has banned the consideration of the use of project labor
agreements (PLAs).
Assembly Amendments delete the Senate version of the bill
dealing with Occupational Safety and Health Appeals Board.
This bill now deals with PLAs.
ANALYSIS : Existing law sets forth the requirements for
the solicitation and evaluation of bids and the awarding of
contracts by public entities and authorizes a public entity
to use, enter into, or require contractors to enter into, a
project labor agreement for a construction project, if the
agreement includes specified taxpayer protection
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provisions. Existing law also provides that if a charter
provision, initiative, or ordinance of a charter city
prohibits the governing board's consideration of a project
labor agreement for a project to be awarded by the city, or
prohibits the governing board from considering whether to
allocate funds to a city-funded project covered by such an
agreement, then state funding or financial assistance may
not be used to support that project, as specified.
This bill prohibits the use of state funds for any charter
city construction projects if the charter city has banned
the consideration of the use of PLAs. Specifically, this
bill:
1. Provides that, if a charter provision, initiative, or
ordinance of a charter city prohibits, limits, or
constrains in any way the governing board's authority or
discretion to adopt, require, or utilize a PLA that
includes current-law taxpayer protection provisions for
some or all of the construction projects to be awarded
by the city, then state funding or financial assistance
shall not be used to support any construction projects
awarded by the city.
2. Provides that the above provision shall not be
applicable until January 1, 2015, for charter cities in
which a charter provision, initiative, or ordinance in
effect prior to November 1, 2011, would disqualify a
construction project from receiving state funding or
financial assistance.
Comments
A PLA is a pre-hire agreement that establishes the terms
and conditions of employment for a specific construction
project. They are completed before any workers are hired
to determine the wage rates and benefits of all employees
working on the project and to agree to prevent any strikes,
lockouts, or other work stoppages for the length of the
project. The terms of the agreement apply to all
contractors and subcontractors who successfully bid on the
project, union or non-union, and supersede any existing
collective bargaining agreements.
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PLAs are not mandated under California law. However, if a
state or local agency chooses to use a PLA for a public
construction project, the PLA must include minimum
taxpayer-protection criteria. Governing boards of local
agencies can choose by majority vote whether or not to use
a PLA that includes these taxpayer-protection criteria.
Governing boards of local agencies can also decide by
majority vote whether or not to fund a project that
includes such a PLA. Because of the home-rule provision of
the California Constitution, this provision does not apply
to charter cities. Local agencies, except charter cities,
are also prohibited from adopting blanket prohibitions
against using PLAs. Local governing boards have the
authority to decide on a case-by-case basis whether to use
PLAs.
If a charter city has banned PLAs for a project to be
awarded by the city, state financial assistance must not be
used for that project. This provision becomes operable
January 1, 2015, for charter cities that had ordinances in
effect before November 1, 2011, that would disqualify a
project from receiving state funding.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee, this
bill could result in a reallocation of state infrastructure
funding, such as annual transportation funding for local
streets and roads, to the extent a charter city has an
ordinance banning PLAs in general and thus is no longer
eligible for state funding after January 1, 2015.
Charter cities that ban PLAs, in order to remain eligible
for state funding after January 1, 2015, could incur costs
to amend their charters to overturn such bans. For PLA
bans adopted by ordinance, these costs will be minor. For
PLA bans adopted by charter amendment or initiative, a city
seeking to overturn the ban will incur the one-time costs
of submitting the proposal to the voters for approval.
These costs will not be state reimbursable.
SUPPORT : (Verified 4/12/12)
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State Building and Construction Trades Council of
California (source)
Bay Area Chapter of the Sheet Metal and Air Conditioning
Contractors National Association
Bragg Crane and Rigging Co.
Brice Mechanical, Inc.
Building Trades Council of Kern, Inyo, & Mono Counties of
California, AFL-CIO
California BlueGreen Alliance
California Chapters of the National Electrical Contractors
Association
California Labor Federation
California Landscape and Irrigation Council
California League of Conservation Voters
California Legislative Conference of the Plumbing, Heating
and
Piping Industry
California Nevada Conference of Operating Engineers
California Professional Firefighters
California Sheet Metal and Air Conditioning Contractors'
National Assoc.
California State Pipe Trades Council
California Teamsters Public Affairs Council
Cement Masons Local 300
Center for Sustainable Neighborhoods
City of Oceanside
Contra Costa Building and Construction Trades Council
Councilmember Kevin McCarty, City of Sacramento
Councilmember Xavier E. Campos, City of San Jose
Councilmember Ash Kalra, City of San Jose
Ella Baker Center on Human Rights
Fresno, Madera, Kings and Tulare Counties Building and
Construction Trades Council
Imperial County Building and Construction Trades Council
International Association of Heat and Frost Insulators
Local 5
International Brotherhood of Boilermakers Local 92
International Brotherhood of Electrical Workers Local 11,
40, 180, 234, 413,
440, 441, 551, 569, 595, 617, 639, 952
International Brotherhood of Electrical Workers Ninth
District
International Union of Elevator Constructors Local 18
Iron Workers Local 155, 229, 416, 433
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Jerry Thompson and Sons Painting, Inc.
KBI Painting, Inc.
Kern County Fire Fighters Union, Inc.
L&H Airco
Los Angeles Unified School District
Los Angeles/Orange Counties Building and Construction
Trades Council
Mayor Antonio R. Villaraigosa, City of Los Angeles
Metalclad Insulation Corporation
Mid Valley Building and Construction Trades Council
Napa-Solano Counties Building and Construction Trades
Council
North Bay Labor Council, AFL-CIO
Northeastern California Building and Construction Trades
Council
Northern California Glass Management Association
Northern California Painting and Finishing Contractors
Association
Painters and Allied Trades District Council 16-Local 741
Painters and Allied Trades District Council 36
Painters and Allied Trades Local 272
Painters and Allied Trades Local 3
Painters, Tapers, Floorcoverers and Glaziers District
Council 16 Local 294
Plumbers and Pipefitters Local 447
Plumbers, Steamfitters and Refrigeration Fitters Local 467
Road Sprinkler Fitters Local 669
Sacramento-Sierra's Building and Construction Trades
Council
San Bernardino and Riverside Counties Building and
Construction Trades Council
San Diego and Imperial Counties Labor Council
San Diego County Building and Construction Trades Council
San Diego Unified School District
San Joaquin, Calaveras, Amador and Alpine Counties Building
and
Construction Trades Council
San Mateo County Building and Construction Trades Council
Santa Clara and San Benito Counties Building and
Construction Trades Council
Sheet Metal Workers' Local Union No. 104
Sonoma, Mendocino and Lake Counties Building and
Construction Trades Council
Southern California Pipe Trades District Council 16
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Sprinkler Fitters U.A. Local 709
United Association of Journeymen and Apprentices of the
Plumbing and
Pipe Fitting Industry of the United States and Canada
United Association of Plumbers and Steamfitters Local 230,
355, 398, 582
United Union of Roofers, Waterproofers, and Allied Workers
Local 36,
81, 220
Ventura County Plumbers and Pipe Fitters Local 484
Western States Council Sheet Metal Workers' International
Association
OPPOSITION : (Verified 4/12/12)
Associated Builders and Contractors of California
California Chamber of Commerce
City of Ventura
League of California Cities
Mayor of San Diego, Jerry Sanders
ARGUMENTS IN SUPPORT : According to the author:
This bill is necessary because anti-union
groups/associations continue their campaign to
eliminate the option for local governments to utilize
PLAs...These are mainly political attacks because
PLAs are negotiated on a project-by-project or
funding source (i.e., bond) basis and PLAs are not
mandated under any state laws. Anti-PLA/union
lobbyists, mainly the Associated Builders and
Contractors, pushed bans in a few counties
(Stanislaus, Orange, San Diego) and Charter Cities
(Chula Vista and Oceanside) based on intense lobbying
and campaigns waged by non-union contractor
organizations that voluntarily choose not to bid on
projects governed by a PLA.
SB 922, which the California Legislature passed and
the Governor signed, effectively eliminated the PLA
bans imposed by general law cities, counties and
special districts. SB 922 also authorized all public
entities to utilize a PLA if they meet the criteria
of Public Code Section 2500. SB 922 provided, in
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Public Contract Code Section 2502, that charter
cities that have ordinances that prevent the city
council from considering the use of a PLA for a
project cannot receive state funding for that
specific project. SB 829 would extend the law by
providing that charter cities that have ordinances
that prevent the city council from considering the
use of PLAs cannot receive state funding for any of
their construction projects.
ARGUMENTS IN OPPOSITION : The opponents argue that this
bill prohibits state funding or financial assistance to be
used on any project awarded by a charter city that has a
provision, initiative, or ordinance that prohibits, limits,
or constrains the authority or discretion to adopt,
require, or utilize a PLA.
A Dangerous Precedent . There is no need for the state to
reach into local charter provisions, initiatives, and
ordinances to dictate specific provisions, including
PLAs.
An Unnecessary State Law For A Local Issue . The use of a
project labor agreement has become controversial in some
areas of the state. Across California, cities are
weighing both sides of the issue and making a decision on
if and how to use PLAs based on what is best for their
city. This is the most appropriate course for
contracting for local public works projects.
Thwarts the Will of the Voters . In each of the cities
that this bill could impact (there are only three), the
charter amendments and ordinances are a result of action
by the voters. Therefore, this bill will thwart the will
of the voters, and withhold funding in parts of the state
in great need of economic growth supplied by
infrastructure projects.
PQ:do 4/12/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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