BILL ANALYSIS �
AB 2021
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Date of Hearing: March 24, 2014
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 2021 (Gordon) - As Amended: March 17, 2014
SUBJECT : San Mateo County Transit District: construction
manager/general contractor
SUMMARY : Authorizes the San Mateo County Transit District
(SMCTD) to elect to use its own approved labor compliance
program to enforce prevailing wage requirements on construction
manager/general contractor (CMGC) contracts.
EXISTING LAW :
1)Authorizes SMCTD to use CMGC (an alternative procurement
method) for public transit projects within its jurisdictions.
2)Defines "construction manager/general contractor" by reference
to existing law to mean a project delivery method using a best
value procurement process in which a construction manager is
procured to provide preconstruction services during the design
phase of the project and construction services during the
construction phase of the project.
3)Requires SMCTD to reimburse the Department of Industrial
Relations (DIR) for its reasonable and directly related costs
of performing prevailing wage monitoring and enforcement on
CMGC contracts; provides, however, that in lieu of this, SMCTD
may elect to enter into a project labor agreement binding all
of the contractors performing work on the CMGC project.
FISCAL EFFECT : Unknown
COMMENTS : SMCTD has one of only a handful of state-approved
labor compliance programs. Labor compliance programs ensure
that work being performed on public works projects is in full
compliance with applicable federal and state labor laws and
regulations. DIR-approved labor compliance programs within
agencies that award public works projects are responsible for:
AB 2021
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1)Verifying payment of applicable general prevailing wage rates
in approved job classifications;
2)Verifying employment of apprentices;
3)Reviewing weekly certified payroll records;
4)Monitoring construction sites, including interviews with trade
workers for the verification of proper payments of prevailing
wage rates and work classification;
5)Conducting pre-construction conferences with contractors and
subcontractors;
6)Withholding contract payments and imposing penalties for
noncompliance; and,
7)Requiring contractors to submit weekly certified payroll
records.
Legislation enacted last year, AB 797 (Gordon) Chapter 320,
Statutes of 2013, authorized SMCTD to use CMGC on its transit
projects, subject to certain conditions. Among those conditions
is the requirement that the district complies with labor
compliance requirements and reimburses DIR for its prevailing
wage monitoring costs associated with CMGC projects. In lieu of
this requirement, SMCTD has the option of entering into project
labor agreements that bind all of the contractors on a
particular project and otherwise ensure prevailing wage
requirements are being met.
The author has introduced AB 2021 to allow SMCTD to use its own
DIR-approved labor compliance program for CMGC contracts, as an
alternative means of ensuring compliance with the state's
prevailing wage laws.
Previous legislation : AB 797 (Gordon) Chapter 320, Statutes of
2013, authorized SMCTD to use CMGC and included requirements
related to prevailing wage monitoring.
AB 2021
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Double referral: This bill has also been referred to the
Assembly Local Government Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093