BILL ANALYSIS �
AB 26
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CONCURRENCE IN SENATE AMENDMENTS
AB 26 (Bonilla)
As Amended June 16, 2014
Majority vote
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|ASSEMBLY: | |(May 30, 2013) |SENATE: |26-8 |(August 7, 2014) |
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(vote not relevant)
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|COMMITTEE VOTE: |5-1 |(August 13, 2014) |RECOMMENDATION: |concur |
|(L. & E.) | | | | |
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Original Committee Reference: NAT. RES.
SUMMARY : Clarifies that work performed during the postconstruction
phases of construction on a public works project, including all
cleanup work at the jobsite, is considered part of the project and
should be compensated at the prevailing wage rate.
The Senate amendments delete the Assembly version of this bill and
instead revise the definition of "construction" for purposes of
public works projects to also include work performed during the
postconstruction phases of construction, including, but not limited
to, all cleanup work at the jobsite.
EXISTING LAW defines the term "public works" 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. "Construction" also includes work performed
during the design and preconstruction phases of construction,
including, but not limited to, inspection and land surveying work.
AS PASSED BY THE ASSEMBLY , this bill enacted various provisions
related to projects funded from the Greenhouse Gas Reductions Fund
and related curriculum.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill was substantially amended in the Senate and
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the Assembly-approved provisions of this bill were deleted.
In a 2009 decision by the director of the Department of Industrial
Relations (DIR), who is responsible for making the prevailing wage
determinations, regarding whether or not clean-up work was part of
the construction project and therefore subject to the prevailing
wage payment appears to indicate that the department has deemed
this work as part of the project and therefore subject to
prevailing wage. (Harbor Construction Co., Inc. vs. Antelope
Valley Union High School District, Case No: 09-0095-CPR) In his
decision, the director of DIR stated that, "Contrary to Harbor's
argument, the janitorial exception to maintenance work has no
applicability where the root obligation to pay prevailing wages is
found in Section 1772, and 1774. The janitorial exception only
applies to contracts let solely for maintenance work and not to
cleaning work performed as a requirement of a broader public works
contract."
Although the director's interpretation of the applicability of
prevailing wage requirements on clean-up work at a public works
project seems to address the ambiguity, there needs to be clarity
in the labor code to ensure consistency in its applicability. This
bill would clarify that, for purposes of public works projects,
"construction" work also includes work performed during the
postconstruction phases of construction, including, but not limited
to, all cleanup work at the jobsite.
According to the author, prevailing wage laws were enacted to
ensure skilled construction workers on public works projects are
paid at least the wages and benefits that prevail in their local
communities. Unfortunately, proponents argue, this bill is
necessary to address a problem that has persisted on public works
projects that has allowed dishonest contractors to side-step
prevailing wage law when it comes to the final clean-up work on a
public works project. The author argues that while the general
prevailing wage determination includes "all final cleanup of
debris, grounds, and buildings near the completion of the project,"
state law does not specify that this work is included within the
definition of "public works." According to the author, the lack of
clarity has resulted in some public works employees performing
cleanup work but not receiving a prevailing wage for that work.
Further, the author contends that the discrepancy in pay
compromises the quality of projects and restricts workers' ability
to enter the middle-class. Additionally, proponents argue that the
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lack of conformity makes it difficult for contractors who pay
prevailing wages to submit competitive bids for public works
projects. This bill seeks to remedy this issue by including work
performed during the postconstruction phases of construction,
including, but not limited to, all cleanup work at a jobsite within
the definition of "public works."
There is no opposition on file.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0004632