NEW LAWS FOR 2002, ARE YOU PREPARED?

Below is a list a bills that the RCAC Governmental Affairs Committee advocated for or against this past year.  The status of each bill is listed at the end of the description.  Those bills with chapter numbers were signed by Governor Davis and will become law on January 1, 2002.  The second half of the 2001-2002 legislative session will begin on January 7, 2002.  There is expected to be another 4,000 plus new bills introduced by the end of February.  We will keep you informed of these newly introduced bills in future newsletters and legislative alerts.

AB 202, Corbett - This bill will include representatives from the Department of Finance as part of the Joint Enforcement Strike Force on the Underground Economy.  Support - Chapter 180.

AB 263, Correa - This bill will require that any bond on a public works contract is executed by an admitted surety insurer.  Public agencies would be required to approve the bond on a public works contract by either obtaining specific information from the Department of Insurance website or the county clerk.  Support - Chapter 181.

AB 326, Dutra - This bill will prohibit the sale or application of wood roof covering materials in the state unless the materials have been approved and listed by the State Fire Marshal as complying with state law and have passed at least 5 years of the 10-year natural weathering test.  Support - Chapter 244.

AB 348, Wright - This bill would require that academic standards be adopted for career technical education courses with the goal of allowing such courses to be used to satisfy admission requirements to the California State University and the University of California systems.  Support, Vetoed.

AB 543, Vargas and AB 568, Dutra  - As originally drafted, both bills dealt with the problem of double payment by homeowners for work completed.  These bills are now possible vehicles for the California Law Revision Commission's recommendations to reform the mechanics' lien law (see page 4 for CLRC Executive Report).  Watch - Both bills are in the Senate Rules Committee.

AB 600, Dutra - This bill would create the California Homebuyer Protection and Quality Construction Act of 2002, a voluntary new home warranty program designed to promote quality construction and a fast, fair and efficient means of getting problems fixed when they occur without need for litigation.  Support - Assembly Judiciary Committee. 

AB 737, Oropeza - This bill will allow state agencies to award contracts for goods, services, or information technology with a value between $5,000 - $100,000 to a certified disabled veteran small business without complying with specific competitive bidding requirements.  Oppose - Chapter 183.

AB 800, Wesson - This bill will make it an unlawful employment practice for an employer to adopt or enforce a policy that prohibits the use of any language in the workplace unless the policy is justified by an overriding business necessity.  A violation of this bill would allow the employee to bring a civil action for equitable relief and allow the Fair Employment and Housing Commission to award $5,000 in penal damages to any aggrieved employee wrongly subjected to a policy in violation of this bill.  Oppose - Chapter 295.

AB 822, Shelley - This bill would permit a contractor to be suspended for up to 90 days or debarred up to 3-years by the Department of General Services for unsatisfactory contract performance, unwillingness to honor a binding bid or contract, or multiple strikes.  Additionally, this bill would establish procedures to be considered in making suspension and debarment decisions.  Watch - Senate Judiciary Committee.

AB 1018, Liu - This bill would establish annual funding for the Industry-Based Certification Incentive Program for the purpose of awarding grants to selected school districts for programs with their career technical programs.  Support - Vetoed.

AB 1069, Koretz - This bill would allow employment claims previously dismissed by the Labor Commissioner to be reopened by filing a request with a new investigation by the Federal Department of Labor.  Oppose - Chapter 134.  

AB 1309, Goldberg - This bill would require employers bidding, soliciting or who have been awarded a contract of $50,000 or more with a state or local public agency to file prescribed reports breaking down the composition of their workforce by gender and ethnicity and disclosing recruitment plans and sources.  Additionally, this bill would require both employers and labor organizations with 100 or more employees and specified apprenticeship programs with 5 or more apprentices to file reports showing gender and ethnicity of the employees and apprentices.  Failure to file a report in good faith is a misdemeanor punishable by a $2,500 fine.  Oppose - Senate Judiciary Committee.

AB 1534, Longville - This bill would authorize a pilot program consisting of two projects each with a cost of less than $10 million to be implemented as design-build projects for the Los Angeles Unified School District.  Oppose - Senate Education Committee.  

AB 1679, Shelley - This bill would prohibit all licensed contractors working on any private contract from using anyone except their own direct exclusive employees to perform work on that contract.  Oppose - Vetoed.

SB 25, Alarcon - This bill would create the Labor and Civil Rights Agency by consolidating different departments under a new cabinet position.  Oppose - Vetoed.

SB 40, Alarcon  - This bill will increase employment insurance benefits by 95 % or $4.6 billion over the next four years without any system reforms to offset the increased cost. According to the California Chamber of Commerce this "is the single largest UI employer tax increase in the state's history, the equivalent of an 18% rise in the bank and corporation tax."  Under this bill, the maximum weekly benefit will step up from $230 to $450 by 2005. Oppose - Chapter 409.

SB 71, Burton - This bill would have increased workers' compensation benefits by $3.6 billion over the next few years. Oppose - Vetoed.  While this was the Governor's third consecutive veto of a workers' compensation benefit increase bill, the Governor again signaled his willingness to support a compromise bill. In his veto message, he indicated that such a compromise must include four goals:

"1) Providing a significant benefit increase for injured workers; 2) Promoting early and sustained return to work within the person's medical and work restrictions; 3) Implementing effective medical cost containment measures while assuring the quality of care provided; and 4) Targeting benefit dollars to achieve the best outcomes for injured workers."

The Governor also indicated that he believes that such a compromise deal can be achieved when the Legislature reconvenes for the 2002 session in January.  

SB 135, Figueroa - This bill will require that by July 1, 2002, the Registrar make available to the public the date, nature, and status of all complaints on file that have been "referred for accusation," which has the same effect as "referred for legal action," the term used in current law.  An accusation is the charging document used in an administrative proceeding seeking suspension or revocation of a contractor's license.  The term "accusation" in Government Code Section 11503 is "A hearing to determine whether a right, authority, license or privilege should be revoked, suspended, limited or conditioned shall be initiated by filing an accusation.  The accusation shall be a written statement of charges which shall set forth in ordinary and concise language the acts or omissions with which the respondent is charged, to the end that the respondent will be able to prepare his defense.  It shall specify the statutes and rules, which the respondent is alleged to have violated, but shall not consist merely of charges phrased in the language of such statutes and rules.  The accusation shall be verified, unless made by a public officer acting in his official capacity or by an employee of the agency before which the proceeding is to be held.  The verification may be on information and belief." Support - Chapter 494.

SB 523, Alpert - This bill would provide cost-saving reforms to the unemployment insurance system that would help offset the increases created by SB 40.  Support - Assembly Floor.

SB 588, Burton - This bill will allow joint labor-management health and safety committees to sue public works contractors for failure to pay correct prevailing wages.  Oppose - Chapter 804.

SB 929, Machado - This bill would authorize the Contractors State License Board to fund Construction Education Programs at California State University campuses upon appropriations by the Legislature.  Oppose - Vetoed.

SB 938, Margett - This bill would require the owner of a private work of improvement to provide a notice of completion by registered mail to all subcontractors/material suppliers who have properly provided the owner with a preliminary 20-day notice.  Failure to provide such notice within 10 days of completing the project will extend the period of time the subcontractor/material supplier has to file a mechanics' lien from 30-90 days.  This provision does not apply to owner-occupied residences that have been improved. 

While this bill passed out of the Senate on a vote of 38-0, it has been caught up in the Assembly.  As I indicated previously, because SB 938 deals with mechanics' liens, this bill was held in committee without a hearing.  Support -Assembly Judiciary Committee.

SB 974, Torlakson - This bill reaffirms that charter cities be subject to the Public Contract Code and that, in absence of specific exemption, the Public Contract Code applies.  Support - Chapter 832.

SB 1033, Knight - This bill would create an additional 3% bid preference for small businesses that are also certified as disabled veteran business enterprises.  Additionally, this bill would raise the limit for small business preferences and disabled veteran business enterprises to $80,000 each.   Oppose - Assembly Governmental Organization Committee.

SB 1045, Polanco - This bill would require each state department or agency awarding a contract or procuring goods or services to collect information and report annually to the Governor and the Legislature on the participation level of minority, women, and disabled veteran-owned business enterprises in these contract and procurement activities.  Oppose - Assembly Appropriations Committee.