BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2021
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2021 (Gordon) - As Amended:  March 17, 2014 

          Policy Committee:                               
          TransportationVote:15-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill provides the San Mateo County Transit District  
          (SMCTD)-for compliance with prevailing wage requirements  
          associated with using an alternative contract method of  
          construction manager/general contractor (CM/GC)-the option to  
          continue using an existing labor compliance program, upon  
          receiving approval from the Department of Industrial Relations  
          (DIR).

           FISCAL EFFECT  

          Negligible fiscal impact.

           COMMENTS  

           1)Background  . AB 797 (Gordon)/Statutes of 2013, authorized SMCTD  
            to use CM/GC as an alternative contracting method, whereby a  
            construction manager is procured to provide preconstruction  
            services during a project's design phase and construction  
            services during the construction phase. AB 797 required SMCTD,  
            on projects using CM/GC, to comply with existing prevailing  
            wage monitoring and enforcement requirements, including  
            providing reimbursement to the Department of Industrial  
            Relations, or alternatively to enter into a project labor  
            agreement that includes a mechanism for resolving disputes  
            regarding payment of wages.

           2)Purpose  . AB 2021 is intended to allow SMCTD to use its own  
            DIR-approved labor compliance program for CM/GC contracts, as  
            an alternative means of ensuring compliance with the state's  
            prevailing wage laws.








                                                                  AB 2021
                                                                  Page  2


           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081