BILL ANALYSIS �
AB 2021
Page 1
ASSEMBLY THIRD READING
AB 2021 (Gordon)
As Amended March 17, 2014
Majority vote
TRANSPORTATION 15-0 APPROPRIATIONS 16-0
-----------------------------------------------------------------
|Ayes:|Lowenthal, Linder, |Ayes:|Gatto, Bigelow, Allen, |
| |Achadjian, Ammiano, | |Bocanegra, Bradford, Ian |
| |Bloom, Bonta, Buchanan, | |Calderon, Campos, Eggman, |
| |Daly, Frazier, Gatto, | |Gomez, Holden, Linder, |
| |Holden, Wagner, Nazarian, | |Pan, Quirk, |
| |Patterson, | |Ridley-Thomas, Wagner, |
| |Quirk-Silva | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
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 (CM/GC) contracts.
EXISTING LAW :
1)Authorizes SMCTD to use CM/GC (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
CM/GC 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 CM/GC
project.
AB 2021
Page 2
FISCAL EFFECT : According to the Assembly Appropriations
Committee, negligible fiscal impact.
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:
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 CM/GC 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
AB 2021
Page 3
wage monitoring costs associated with CM/GC 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 this bill 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.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
FN: 0003144