NEW LAWS FOR 2003, 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, 2003. 

AB 264, Correa - The Contractors State License Law provides for the licensing and regulation of contractors by the Contractors' State License Board, including specialty contractors. This bill would provide that a trade examination shall not be required for the limited specialty license classification. This bill contains other related provisions and other existing laws. Support - Chapter 311

AB 267, Steinberg - The bill would instead require that, before an association files a complaint for damages against a respondent, as defined, based upon a claim for defects in design, or construction, the association must serve upon the respondent, a 'Notice of Commencement of Legal Proceeding,' that the respondent take specified action within 60 days of receipt of that notice, and that the parties meet and confer in an effort to select a dispute resolution facilitator prior to the commencement of an action for damages. This bill contains other related provisions and other existing laws. Watch – Held at the Desk.

AB 269, Correa - This bill would state that the highest priority for licensing boards, commissions, and bureaus, in performing their licensing, regulatory, and disciplinary functions, is the protection of the public. Oppose – Chapter 107.

AB 568, Dutra - The California Constitution gives workmen the right to a mechanics' lien for the value of labor and materials provided for the improvement of real property. This bill would enact the Home Improvement Consumer Protection Act of 2002 which would provide that if a home improvement contract, as defined, is executed in an amount not exceeding $25,000, regardless of later increases in the contract price, the homeowner may setoff the amount of good-faith payments to the original contractor against the aggregate amount of enforceable mechanics' liens and stop notice claims, in an amount not exceeding $25,000, as specified. This bill contains other related provisions and other existing laws. Oppose – Died in Senate Judiciary Committee.

AB 728, Correa - The bill would delete the requirement that a licensee be in good standing at the time of a referral in order to qualify for referral to arbitration. The bill would provide that the disassociation of any qualifying partner, responsible managing officer, or responsible managing employee from a license that has been referred to arbitration does not relieve the qualifying partner, responsible managing officer, or responsible managing employee from responsibility for complying with an award rendered as a result of an arbitration referral. This bill contains other existing laws. Watch - Chapter 312.

AB 1000, Simitian -The bill, among other things, would require each contract to prohibit construction or alteration of any community college facility without the prior written approval of the plans by the Department of General Services. The bill would require a community college district that elects to use the design-build process to submit a report to the Legislative Analyst, and would require the Legislative Analyst to submit an interim report and a final report to the Legislature. This bill contains other existing laws. Watch – Chapter 637.

AB 1412, Wright - This bill would provide that the term 'vocational-technical education' shall have the same meaning as 'career technical education.' This bill contains other related provisions and other existing laws. Support – Chapter 988.

AB 1506, Wesson - This bill would require an awarding body that chooses to use funds from either the Kindergarten-University Public Education Facilities Bond Act of 2002 or the Kindergarten-University Public Education Facilities Bond Act of 2004 for a public works project to initiate and enforce, or contract with a 3rd party to initiate and enforce, a labor compliance program for that public works project. The bill would provide that the labor compliance law applies to a public works project that commences, as provided, on or after April 1, 2003. This bill contains other related provisions. Watch – Chapter 868.

AB 1701, Steinberg - This bill would define 'construction defect' for these purposes. This bill contains other related provisions and other existing laws. Watch – Died in the Senate Judiciary Committee.

AB 1729, Committee on Insurance - The strike force on the Underground Economy is required to make annual reports to the Governor and the Legislature. This bill would require the annual reports to be made by June 30 of each year. This bill contains other related provisions and other existing laws. Watch - Chapter 29

AB 1884, Pacheco, Robert - This bill would authorize a representative civil action, as defined, to be brought and maintained as an action for relief with respect to those laws subject to certain conditions and requirements. This bill contains other related provisions and other existing laws. Support – Died in the Assembly Judiciary Committee.

AB 1932, Horton - Existing unemployment insurance law allows the Employment Development Department for good cause to reconsider any determination with respect to a disability benefit claim prior to filing an appeal therefrom. This bill would also allow the reconsideration within 30 days after an appeal to an administrative law judge is filed. Oppose – Chapter 403.

AB 1985, Calderon - This bill would revise the definition of property and casualty insurer to include, among other things, workers' compensation insurance. This bill contains other related provisions and other existing laws. Oppose – Chapter 873.

AB 2007, Calderon - This bill would revise the membership of the board of governors to include 4 additional members. The bill would revise the provisions establishing the premium charged to member insurers at a limit of 1% after September 12, 2002, and would instead establish the premium limit at 2% per year until December 31, 2007. The bill would establish the premium limit at 1% per year after December 31, 2007. This bill contains other related provisions. Oppose – Chapter 431.

AB 2037, Diaz - Existing law authorizes a public entity to compromise or otherwise settle any third-party claim relating to a public works contract. This bill would impose a state-mandated local program by requiring a public entity to include provisions in the contract for timely notification of the contractor of a third-party claim. This bill would also provide that a public entity is entitled to recover reasonable costs incurred by the public entity in providing the notice. This bill contains other related provisions and other existing laws. Support - Chapter 315.

AB 2070, Jackson - This bill would require prospective bidders, as defined, on a prequalification conducted by the Department of General Services, to certify under penalty of perjury whether the prospective bidder has been convicted, or been subject to an adverse civil judgment or administrative ruling, arising out of any violation of a tax, labor, employment, antitrust, consumer protection, or environmental protection law. By requiring prospective bidders to make these certifications under penalty of perjury, this bill would expand the circumstances under which a person may be convicted of the crime of perjury and thereby impose a state-mandated local program. This bill contains other related provisions and other existing laws. Oppose – Died in the Senate.

AB 2192, Chavez - This bill would provide that a licensed rating organization may not enter into a contract or agreement that prohibits information services companies in the business of publishing or providing experience rating information prior to a specified date from continuing to receive and provide that information. Watch – Chapter 879.

AB 2242, Koretz - This bill would adjust the hourly minimum wage on January 1, 2003, and annually thereafter, to maintain employee purchasing power. The automatically adjusted minimum wage would be calculated using the California Consumer Price Index, as specified. The Industrial Welfare Commission would be required to publicize the automatically adjusted minimum wage. This bill contains other related provisions. Oppose – Died in the Senate.

AB 2323, Wyman - This bill would create an additional 5% bid preference for certified disabled veteran business enterprises , not to exceed $50,000 per bid, or $100,000 per bid in combination with any other bid preferences . Oppose – Died in the Senate Appropriations Committee.

AB 2412, Diaz - This bill would require employers to comply with requests from current or former employees to inspect or copy these records within 21 calendar days from the date of the request. The bill would make a violation of this requirement an infraction, thereby imposing a state-mandated local program. This bill contains other related provisions and other existing laws. Oppose - Chapter 933

AB 2418, Dutra - This bill would express the intent of the Legislature to protect the interests of homeowners and subsequent purchasers against construction defects. Support – Died in Senate Rules Committee.

AB 2509, Goldberg - This bill would define a local jurisdiction as a city, county, district, or agency, or any subdivision or combination thereof. It would provide that where a local jurisdiction expends funds provided to it by a state agency, as defined, or operates a program or engages in an activity that has received assistance from a state agency and the local jurisdiction has established, under its police powers, its own labor standards, as defined, those standards apply with regard to the expenditure, program, or activity, so long as the local standards do not conflict with and are not preempted by state law. This bill contains other related provisions. Watch – Chapter 298.

AB 2541, Negrete McLeod - This bill would, in addition to other requirements, require a grant applicant to demonstrate its ability to offer instruction on the topic of employees' and employers' rights and obligations in the workplace. Support – Chapter 166.

AB 2544, Campbell, Bill - This bill would require the board to post specified information on its Web site each week regarding home improvement salesperson registration applications. This bill contains other existing laws. Watch – Chapter 372.

AB 2610, Mountjoy - This bill would provide that the term 'lowest responsible bidder,' 'lowest responsive, responsible bidder,' 'lowest regular responsible bidder,' 'lowest and best responsible bidder,' 'lowest qualified bidder,' or 'lowest and best bidder,' as used in that code, means the responsible bidder who submitted the lowest responsive bid. Watch – Died in the Assembly.

AB 2666, Mountjoy - This bill would also authorize a bid specification of a certain product if the awarding authority makes a finding that a particular material or service is designated by a brand name under any of certain specified circumstances . This bill contains other related provisions. Oppose – Died in the Senate Governmental Organization Committee.

AB 2693, Wyman - The bill would additionally authorize a court to determine that there has been substantial compliance with licensure requirements if the person who engaged in the business of a contractor or acted as a contractor was previously licensed as a contractor, has applied for a continuance of license, and is awaiting board action on the application . Oppose – Died in the Senate Judiciary Committee.

AB 2752, Alquist - This bill would provide that it is an unlawful employment practice for an employer to subject an employee to adverse employment action, as defined, if the employee participates in protected activities including those in existing law, and also including refusal to perform unsafe work, as specified. This bill also would modify existing law regarding the protected activity of making oral or written complaints in that it adds that one may not be subjected to adverse employment action for making a complaint to any agent of his or her employer, or to his or her labor, legal, or medical representative, or if the employer had knowledge of the employee's intent to make such a complaint. This bill contains other related provisions and other existing laws. Oppose – Vetoed.

AB 2771, Migden - This bill would require that no additional work-search or suitable employment requirements be placed upon an individual because he or she has worked for a temporary services or leasing employer. Support – Vetoed.

AB 2816, Shelley - This bill, for purposes of the workers' compensation law, would provide that when a contractor enters an agreement with a temporary employment agency, employment referral service, labor contractor, or other similar entity for the entity to supply the contractor with an individual to perform acts or contracts under the contractor's license and the contractor is responsible for supervising the individual, the temporary employment agency, employment referral service, labor contractor, or other similar entity shall pay workers' compensation premiums, in accordance with specified criteria, and shall be solely responsible for the individual's workers' compensation. This bill would also require these entities to report to insurers certain information pertaining to these workers and the licensed contractors to whom these workers are provided, and allow these entities to pass through costs incurred as a result of this bill to licensed contractors. This bill contains other related provisions and other existing laws. Support - Chapter 1098.

AB 2827, Diaz - This bill would also require the Department of Industrial Relations to conduct a 5-year graduation study of all construction-related apprenticeship programs, report the results to the Legislature by December 1, 2003, and post the results on the department's Internet Web site. Watch - Vetoed.

AB 2837, Koretz - This bill would require the division to make all efforts to ensure that limited-English-proficient persons can communicate effectively with the division. The division would further be required to prepare a progress report containing specified information, by July 30, 2004, on the provision of information and services to non-English-speaking persons. This bill contains other related provisions and other existing laws. Oppose – Chapter 885.

AB 2841, Horton - The bill would require the district to report to the Legislature regarding implementation of the job order contracting process. This bill contains other related provisions. Oppose – Vetoed.

AB 2845, Goldberg - Existing law requires the Occupational Safety and Health Standards Board to, among other things, adopt ergonomic standards designed to reduce repetitive motion injuries in the workplace. Existing law required adoption of these standards on or before July 1, 1995. This bill would require the board to revise those standards on or before July 1, 2004. Oppose – Vetoed.

AB 2895, Shelley - Existing law provides that an employer may not require that an employee refrain from disclosing the amount of his or her wages, require an employee to sign a waiver denying him or her the right to disclose the amount of his or her wages, or discharge, formally discipline, or otherwise discriminate against an employee, for job advancement, who discloses the amount of his or her wages. This bill would eliminate the requirement that the discharge, formal discipline, or discrimination must be for job advancement. This bill contains other related provisions. Oppose – Chapter 934.

AB 2942, Koretz - This bill would require the Labor Commissioner to develop and implement a set of standards that, if met by an employer, will trigger recommendation for an audit by appropriate state tax authorities of employers in violation of statutes relating to employee wages and working hours. After July 1, 2003, this bill would require the Labor Commissioner to notify appropriate state tax authorities each time the set of standards are met by an employer, to recommend that employers who meet the set of standards be audited, and to create a list of employers who have met the set of standards, with certain information concerning those employers. Watch – Died in the Senate Labor and Industrial Relations Committee.

AB 2957, Koretz - An employer would not be required to comply with the 60-day notice requirement established by this bill if the employer is actively seeking capital or business that would enable the employer to avoid or postpone a relocation or termination, and the employer reasonably and in good faith believed that giving the 60 days' notice would preclude the employer from obtaining the capital or business. This bill contains other related provisions and other existing laws. Oppose - Chapter 780.

AB 2985, Committee on Labor and Employment - This bill would direct the Labor and Workforce Development Agency to contract with a research organization with certain characteristics, to study the enforcement of wage and hour laws, including the identification of federal and state resources that may be utilized to enforce wage and hour laws. This bill contains other related provisions. Watch – Chapter 662.

AB 2986, Committee on Labor and Employment - This bill would provide that the division's research shall include, but not be limited to, research toward the improvement of the occupational safety and health of employees in the construction industry , with a focus on fall-related injuries and deaths and programs to prevent them . Watch – Died in the Assembly Appropriations Committee.

AB 2987, Committee on Labor and Employment - This bill would increase the amount of the authorized fine for specified misdemeanors where an amount is not specifically prescribed. This bill contains other related provisions. Oppose – Vetoed.

AB 2988, Committee on Labor and Employment - This bill would require the Director of Industrial Relations to enter into an agreement with the Franchise Tax Board Relations for the collection of delinquent assessments. All assessments collected by the Franchise Tax Board would be deposited in the Cal-OSHA Targeted Inspection and Consultation Fund. No interest would be charged on any assessment and, upon appropriation, the board would be reimbursed from the fund for costs of collection. This bill contains other related provisions. Oppose – Vetoed.

AB 2989, Committee on Labor and Employment - This bill, in addition, would grant a severance pay entitlement to the employees of an employer who relocates or terminates a qualifying industrial or commercial facility, under specified conditions, or who lays off employees of such a facility. The amount of the severance pay would be one week's pay for each 12 months of employment by the employee in that establishment. This bill contains other related provisions and other existing laws. Oppose – Vetoed.

AB 2990, Committee on Labor and Employment - This bill would, except where there is a bona fide seasonal layoff or reduction in force affecting the majority of employees, create a rebuttable presumption affecting the specified burden of proof that the provisions of existing law were violated if a person discharges, demotes, suspends, or reduces the hours of work or pay of an employee within 90 days after the employee has exercised his or her rights under the Labor Code. The bill would provide that these provisions shall not be construed to give the Labor Commissioner concurrent jurisdiction with the Workers' Compensation Appeals Board with regard to discrimination complaints. This bill contains other related provisions. Oppose – Vetoed.

SB 355, Escutia - Existing law provides for stipulated judgments in construction defect actions, as defined. This bill would define 'construction defect' for these purposes. Oppose – Died in the Assembly Judiciary Committee.

SB 800, Burton - The bill would specify the rights and requirements of a homeowner to bring an action for construction defects, including applicable standards for home construction, the statute of limitations, the burden of proof, the damages recoverable, a detailed prelitigation procedure, and the obligations of the homeowner. This bill contains other related provisions. Support – Chapter 722.

SB 937, Margett - This bill would recast the provisions governing notice of bid submittal deadlines, and would also apply to state agencies the requirement that postdeadline bids be returned unopened. Watch – Chapter 204.

SB 938, Margett - The bill would provide that failure to give notice shall extend the period of time in which the contractor or claimant may file a mechanic's lien or stop notice to 90 days, as specified, and would provide that this extension would be the sole liability incurred for failure to give notice. The bill would define an owner for these purposes, but would exclude from that definition a person who occupies the real property as a personal residence, as specified, among others. Support – Died in the Assembly Judiciary Committee.

SB 1236, Alarcon - The bill would specify that funding for the new agency be achieved from reallocation of existing resources currently allocated to the various entities that would form the agency, but would provide that no funds may be provided by the Agricultural Labor Relations Board. It would also specify that no appropriation of new General Fund moneys would be permitted to implement the bill. This bill contains other related provisions and other existing laws. Watch – Chapter 859.

SB 1244, Figueroa - This bill would authorize the Director of Consumer Affairs to appoint an interim executive officer if a new board replaces an existing or previous board. The bill would provide that the interim executive officer would serve temporarily until the new board appoints a permanent executive officer. This bill contains other related provisions and other existing laws. Watch – Chapter 1079.

SB 1355, Alarcon - This bill would exclude from the requirements of public works and prevailing wage laws self-help housing projects financed pursuant to a specified statute, and would specify that this provision and amendments made by a prior statute do not preempt local ordinances requiring the payment of prevailing wages on housing projects. This bill contains other related provisions. Oppose – Died in the Senate Labor and Industrial Relations Committee.

SB 1374, Kuehl - This bill would additionally require that the report include a summary of progress made in diversion of construction and demolition waste materials, including information on programs and ordinances implemented by the local government and quantitative data, where available. By imposing new requirements on local agencies with respect to reporting requirements under the act, the bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws. Watch - Chapter 501.

SB 1466, Alarcon - This bill would provide that any person or entity who enters into a labor contract for construction, farm labor, garment, janitorial, or security guard services when the person or entity knows or should know that the contract does not provide funds sufficient to allow the labor contractor to comply with all applicable laws or regulations governing the labor or services to be provided under the contract, is subject to liability and specified civil penalties. This bill contains other related provisions. Oppose – Vetoed.

SB 1572, Sher - This bill would additionally require any private person settling any violation of the act to submit to the Attorney General the reporting form that includes the results of that settlement and the final disposition of the case. The bill would also make technical nonsubstantive changes and correct erroneous references. This bill contains other related provisions. Watch – Chapter 323.

SB 1591, Burton - This bill would also require that standards be developed to ensure that no participant in these job preparation and training programs fills a job when any other individual is on layoff from the same or any substantially equivalent job, or when the employer has terminated the employment of any regular employee or otherwise reduced its workforce with the intention of filling the resulting vacancy with a program participant, or, with respect to the construction industry, when the employer has not rehired a seasonal employee with a history of regular seasonal employment. This bill contains other related provisions and other existing laws. Oppose – Chapter 1142.

SB 1759, Johannessen - This bill would authorize, until January 1, 2006, certain cities to enter into design-build contracts with a cost of at least $5,000,000, according to specified bidding and contracting procedures. This bill contains other related provisions. Oppose – Chapter 976.

SB 1763, Ortiz - The bill would define mold for the purposes of these provisions. The bill would also require an insurer or its claims representative, claims handler, expert, or adjustor to disclose immediately all relevant information to an insured if mold is implicated , likely to be present , or to result from a claim and to inform an insured when mold is reasonably believed to have ensued from a covered peril . Watch – Assembly Insurance Committee.

SB 1904,Vasconcellos - This bill would authorize applicant school districts selected by the State Department of Education to use a selection process based upon qualifications, experience, and expertise, as prescribed, as a 3rd option upon which the school districts may base their selection. Watch – Assembly Business and Professions Committee.

SB 1919, Figueroa - The bill would require, on and after January 1, 2004, that all classifications of contractors provide a $10,000 bond. The bill would increase the bond to $12,500 on and after January 1, 2007. Watch – Chapter 1123.

SB 1933, Costa - This bill would make technical nonsubstantive changes and correct erroneous references in those provisions. Watch – Died in the Rules Committee.

SB 1934, McPherson - This bill would instead require the adoption of those standards for career technical education by June 1, 2005, and would require the Superintendent of Public Instruction, upon adoption of the model curriculum standards by the State Board of Education, to develop a model curriculum framework for implementation of career and technical education no later than June 1, 2006, as specified. The bill would require the superintendent to develop the curriculum framework in consultation and coordination with an advisory group, as specified, and would prescribe related matters, including that adoption of the model curriculum framework by local educational agencies would be voluntary. This bill contains other related provisions and other existing laws. Support – Chapter 989.

SB 1953, Figueroa - This bill would extend these provisions to January 1, 2008. This bill would state that the highest priority for the board, in performing its licensing, regulatory, and disciplinary functions, is the protection of the public. This bill contains other related provisions and other existing laws. Support – Chapter 744.

SB 2018, Figueroa - This bill, notwithstanding any other provision of law, would provide that the money in certain funds that is attributable to fines, penalties, or other enforcement actions is not continuously appropriated. The bill would provide that these moneys shall only be available for expenditure upon appropriation by the Legislature. The bill would also authorize the annual Budget Act to appropriate, in a single budget item for each individual fund, the entire amount available for expenditure in the budget year from that individual fund. That appropriation could include the portion of a fund that is continuously appropriated and the portion that is not continuously appropriated. Support – Chapter 682.

SB 2053, Sher - This bill would require the state board to include on the list certain substances designated by the state board as toxic air contaminants pursuant to the federal Clean Air Act. The bill would make other technical changes. Oppose – Chapter 572.