Thursday, September 26, 2024
C-46 Contractors: Big Solar Savings Available for Customers Owning Multifamily Properties in PacifiCorp and PG&E Service Areas
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If you do business in PacifiCorp and PG&E service areas, customers that own multifamily properties now have access to over $180 million for SOMAH projects.
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ADUs Are Causing Problems According to press accounts, Sacramento-based general building contractor Anchored Tiny Homes has “ceased operations amid a wave of angry customers and subcontractors; the company's reputation and ability to operate are facing new challenges. The California Attorney General's office filed a petition before the California Contractors State License Board to revoke or suspend two licenses associated with the company earlier this month. This month, the local chapter of the Better Business Bureau revoked the company's accreditation after receiving several customer complaints and no company response.
In response, the CSLB held a committee meeting to consider how the state should address deficiencies in State law, which has four potential elements:
· Including "Accessory Dwelling Units" in the definition of "home improvement" which would thus restrict the amount of up-front payments that could be accepted on ADUs
· Raising the $25,000 Bond Requirement for Licensure
· Requiring a Performance and Payment Bond for ADU Projects
· Establishing a Home Improvement Business Consumer Recovery Fund
No action can occur on this until the legislature returns in December.
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Semi-final Legislative Update The Governor has until September 30 to sign or veto legislation passed in August. Here is where we stand as of 10:29 a.m. Thursday.
PLAs
SB 984 (D) SB 984 requires the courts and CSU to identify and select at least three major construction projects by January 1, 2027, that must be governed by a project labor agreement (PLA). DTSC was removed after they reported that "utilizing a PLA for a project increased the cost of the cleanup by approximately 25 percent." WECA Position: Oppose Status: 9/9/2024 -Enrolled and presented to the Governor at 3 p.m.
APM/DB/CMaR
SB 739 (D) If the City of Elk Grove council approves this new bill, it would expand this authorization for the city to use CMaR. It requires using a Skilled and Trained Workforce unless covered by a PLA. WECA Position: OUA Status: 9/25/2024 - Chaptered by Secretary of State - Chapter 593, Statutes of 2024
Business Issues
AB 2677 (R) This bill specifies that attorney’s fees that may be assessed as costs, when authorized by contract, statute, or law, are included under existing provisions of law that limit the aggregate liability of a surety to the amount of a surety bond issued by that surety. WECA Position: Support Status: 9/23/2024 -Vetoed by the Governor
To the Members of the California State Assembly: I am returning Assembly Bill 2677 without my signature. This bill would cap the aggregate liability of an insurer that issues a surety bond to the amount of the bond. While I appreciate the author's attempt to reduce the cost of bonds for licensees, California law offers numerous avenues for insurers to limit their liability for attorney fees when faced with meritorious claims. I am concerned that this bill's limitation of attorney fees could have the unintended consequence of preventing all but the most affluent consumers from being able to seek redress if they are harmed. For this reason, I cannot sign this bill. Sincerely, Gavin Newsom
Business Issues
SB 1022 (D) SB 1022 significantly expands existing statutes of limitations for any complaint brought by the Civil Rights Department or its “authorized representative” to ten years. It also gives a court discretion to extend that statute of limitations back even further if it determines that it is “reasonable” to do so. WECA Position: Oppose Status: 9/3/2024 - Enrolled and presented to the Governor at 3 p.m.
Business Issues
SB 1243 (D) SB 1243 makes various changes to a state law commonly referred to as the "Levine Act" that restricts campaign contributions to agency elected officials from entities with business before the agency involving a license, permit, or other entitlement for use, including raising the threshold for campaign contributions regulated by the Act from $250 to $1,000. It amends the Levine Act to provide a workable, transparent process for addressing perceived conflicts of interest. The existing law has presented implementation problems, has had a chilling effect on political participation, and unintentionally promotes dark money independent expenditures, which are less transparent to the public. WECA Position: Support Status: 9/12/2024 - Enrolled and presented to the Governor at 3 p.m.
CEQA
AB 3265 (D) This bill establishes procedures for an environmental leadership media campus, in the County of Los Angeles. The project must pay prevailing wages unless covered by a PLA. WECA Position: Oppose Status: 9/14/2024 - Chaptered by Secretary of State - Chapter 255, Statutes of 2024
Energy
AB 2235 (D) Allows the City of Long Beach and its Board of Harbor Commissioners to use specified procurement methods and processes for the Pier Wind project. Requires a skilled and trained workforce to perform all project work unless a PLA exists. WECA Position: OUA Status: 9/11/2024 - Enrolled and presented to the Governor at 4 p.m.
SB 1298 (D) This bill authorizes the California Energy Commission (CEC) to exempt a thermal power plant with a generation capacity up to 150 megawatts (MW) from the CEC’s powerplant siting review if it is solely used as emergency backup power for a data center and certain conditions are met. It requires a STWF unless there is a PLA. WECA Position: Oppose Status: 8/31/2024 - Failed Deadline pursuant to Rule 61(b)(17). (Last location was RLS on 8/27/2024)
Housing
AB 1038 (D) This bill specifies the terms and conditions for acquiring surplus property from the California Department of Transportation (Caltrans) in the City of South Pasadena. It requires that the proceeds from the subsequent sale of those properties be used for affordable housing. Exempts PLA projects from CPRs and Labor Code enforcement. WECA Position: Oppose Status: 9/22/2024 - Chaptered by Secretary of State - Chapter 347, Statutes of 2024
AB 3068 (D) This bill enacts the Office to Housing Conversion Act, which creates a streamlined, ministerial approval process for adaptive reuse projects and provides certain financial incentives for the adaptive reuse of existing buildings. Aspects of the project requirements do not apply to portions of the project that are subject to a bona fide collective bargaining agreement or project labor agreement that meets specified requirements. WECA Position: OUA Status: 9/13/2024 -Enrolled and presented to the Governor at 4 p.m.
AB 3093 (D) Creates two new income categories, Acutely Low Income (ALI) and Extremely Low Income (ELI), in the Regional Housing Needs Determination (RHND), Regional Housing Needs Allocation (RHNA), and Housing Element Law. Includes usual SBCTC language WECA Position: SIA Status: 9/19/2024 - Chaptered by Secretary of State - Chapter 282, Statutes of 2024
SB 312 (D) The bill would prohibit a public university that has exempted a university housing development project from being eligible to exempt a subsequent university housing development project until the public university has obtained LEED Platinum certification for each building within the prior exempted university housing development project. Existing law requires these projects to use a Skilled and Trained Workforce unless a PLA exists. WECA Position: SIA Status: 9/19/2024 - Chaptered by Secretary of State - Chapter 284, Statutes of 2024
SB 584 (D) SB 584 requires a PLA to build “laborforce housing, " defined as public housing with a mixture of household income ranges at or below moderate income. It would be paid for by a new 15% fee that would be collected from transient occupancy residential property owners - like Airbnb owners. The housing would be built by public agencies. WECA Position: Oppose Status: 8/31/2024 - Failed Deadline pursuant to Rule 61(b)(17). (Last location was H. & C.D. on 6/15/2023)
Labor Law
AB 2499 (D) Entitles an employee who has a family member who is a victim of crime to job-protected leave to attend to the family member’s needs and ensure their safety. Additionally, it permits both the employee victim and the employee who has a family member who is a victim to use sick leave for time off to obtain victim services. AB 2499 is creating new, uncapped leave for scenarios already covered under existing law. And it applies to small businesses with just five employees. WECA Position: Oppose Status: 9/9/2024 - Enrolled and presented to the Governor at 3:30 p.m.
AB 2705 (D) This union-supported bill provides that, for a violation of public works law, the statute of limitations (SOL) for the Labor Commissioner (LC) to sue a bonding company shall be the same as the 18-month SOL for the LC to issue a civil wage and penalty assessment to the contractor or subcontractor on that project or both. WECA Position: Oppose Status: 9/14/2024 -Chaptered by Secretary of State - Chapter 242, Statutes of 2024
AB 2738 (D) This bill establishes that a public prosecutor may alternatively enforce the training certification requirements of entertainment events employees and adds a public events venue or a contracting entity to the entities that may be assessed a penalty for violating these requirements. WECA Position: Oppose Status: 9/5/2024 - Enrolled and presented to the Governor at 4 p.m.
SB 399 (D) This bill effectively prohibits any discussion of political matters in the workplace and is unnecessary in light of existing California and federal laws that protect employees from any coercion related to their political beliefs or activities. Further, the bill both violates the First Amendment and is preempted by the National Labor Relations Act (NLRA). WECA Position: Oppose Status: 9/11/2024 - Enrolled and presented to the Governor at 3 p.m.
Land Use
AB 98 (D) AB 98 prohibits, commencing 1/1/2026, cities and counties from approving new or expanded logistics uses unless they meet specified standards; requires cities and counties to update their circulation elements to include truck routes, and imposes study requirements on the South Coast Air Quality Management District (AQMD). The buffer zones and mandatory truck route provisions would severely limit the availability of land suitable for logistics uses. This could push logistics uses further from population centers, increasing the distance trucks must travel. This could increase the cost of transportation and the emissions from truck traffic. The bill could hinder efforts to redevelop blighted areas and reduce economic opportunities, particularly in the Inland Empire, where logistics uses are a significant driver of economic growth. WECA Position: Oppose Status: 9/12/2024 - Enrolled and presented to the Governor at 4 p.m.
Licensure
AB 2622 (D) AB 2622 increases the value of a construction project that triggers required licensure by the Contractors State License Board (CSLB) from $500 to $1,000 for labor and materials. It specifies that projects for which the threshold is $1,000 do not require a permit to undertake and to be completed without employees. However, the bill leaves in place the current threshold of $750 for licensed contractors to comply with strict disclosure and the right to rescind requirements. WECA Position: SIA Status: 9/14/2024 - Chaptered by Secretary of State - Chapter 240, Statutes of 2024
SB 1455 (D) Extends the sunset date of the contractor's state license board (CSLB) by four years, until January 1, 2029, ensures federally recognized tribes can obtain a contractors license; extends the implementation of the workers compensation coverage requirements for licensure, for all contractors until January 1, 2028; and, makes other technical, clarifying and conforming changes stemming from the CSLB’s joint sunset review hearing. WECA Position: Support Status: 9/22/2024 - Chaptered by Secretary of State - Chapter 485, Statutes of 2024
Public Works
AB 2182 (D) Modifies state public works law by 1) granting joint labor-management committees (JLMCs) reasonable access to public works job sites and 2) requiring a change in a prevailing wage rate as determined by the DIR Director to apply to specific contracts from July 1, 2026, to January 1, 2031. WECA Position: Oppose Status: 9/11/2024 - Enrolled and presented to the Governor at 4 p.m.
SB 830 (D) This bill would overturn the Russ Will decision and expand the definition of “public works” to include an offsite, custom fabrication of sheet metal ducts or similar sheet metal products for heating, ventilation, and air conditioning systems produced as a nonstandard item solely and specifically designed and engineered for installation in a project. It would eventually expand to other off-site work in a commercial setting. WECA Position: Oppose Status: 8/31/2024 - Failed Deadline pursuant to Rule 61(b)(17). (Last location was INACTIVE FILE on 8/28/2024)
STWF
SB 1162 (D) This bill requires a contractor, bidder, or other entity to include the full name of and identify the apprenticeship program name, location, and graduation date of all workers in existing monthly compliance reports made to the public entity or other awarding body for projects with a skilled and trained workforce requirement. This bill also requires the DAS to, on or before July 1, 2025, create and maintain a public online database to verify that a worker graduated from a California apprenticeship program. WECA Position: Oppose Status: 9/11/2024 - Enrolled and presented to the Governor at 3 p.m.
UI
SB 1434 (D) This bill would raise the UI Fund’s taxable wage base in two stages (2025 and 2027) and then implement a permanent increase to the taxable wage base that increases at the same rate as California’s minimum wage. SB 1434 would accrue the revenue to implement a parallel unemployment insurance program for workers excluded by federal barriers on California’s existing UI program. WECA Position: Oppose Status: 8/31/2024 -Failed Deadline pursuant to Rule 61(b)(17). (Last location was L., P.E. & R. on 2/29/2024)
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Election Guide CalMatters launched the latest feature of their Voter Guide: the tool lets voters look up nearly every race up and down their November ballot. You can type in your address and get the list of races you’ll decide (except for school and special district elections). From that list, you can go to their full Voter Guide information on the U.S. Senate, U.S. House, state Legislature and the ten ballot propositions, the candidates for county supervisor and city council, and information on local ballot measures. The CalMatters data team collected nearly 1,000 races and more than 700 measures.
Try it here.
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I’ve Got a Secret The California Legislature has been using non-disclosure agreements to keep secret most information about the planning and construction of a $1.2 billion taxpayer-funded building that will house the offices of state lawmakers, the governor, and the lieutenant governor. Following a three-month investigation and a series of Legislative Open Records Act requests, KCRA 3 learned that project leaders required more than 2,000 people to sign the NDAs, including several current and former state lawmakers, government officials, dozens of state employees, and hundreds of other consultants, contractors, architects, construction, and utility workers. Story
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Nathan Fletcher, a former state Assembly member and San Diego County supervisor, is under investigation for allegedly using campaign funds to cover legal expenses for a sexual harassment case, according to press reports. Campaign finance reports show Fletcher paid over $500,000 in cash from a failed state Senate campaign to the law firm defending him in the case brought by former TV journalist Grecia Figueroa. Fletcher's attorney, Jim Sutton, argues his client can use campaign funds because the case is related to his status as a former candidate.
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DOD Imposes New Requirements for Employers Participating in SkillBridge Military Internship Program To support personnel transitioning from the military to the civilian workforce, the U.S. Department of Defense (DOD) in 2011 instituted the SkillBridge internship program, which provides service members with valuable civilian work experience through unpaid internships during their last 180 days of service, while the military continues to pay their wages and full benefits. For service members, SkillBridge allows obtaining civilian work experience and new skills to improve their marketability and job prospects when searching for post-service civilian employment. For employers, the primary advantage of SkillBridge is access to free talent with few strings attached. Perhaps most notably, the program is not subject to wage and hour laws, and employer participation does not create federal contracting obligations. The newest change to the program came in August when the DOD imposed noteworthy new mandates on participating employers. Learn More
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How Labor Unions Are Aiming for a Big Harris Win President Joe Biden has taken credit for being one of the most pro-union presidents in U.S. history—and many construction sector employer and labor sources say Democratic presidential nominee Kamala Harris would take a similar approach if she wins in November. The vice president "always has been a pro-labor and a pro-building trades elected official,” says Jim Brewer, director of government affairs for the North America’s Building Trades Unions (NABTU). Story
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New Biden Executive Order Gives Unions Leg Up on Federally Funded Projects, Imposes New Disclosure Requirements On September 6, 2024, President Biden announced his new Executive Order on Investing in America and Investing in Americans (“EO” or “Order”), which requires certain federal agencies to consider criteria related to labor standards when prioritizing which projects will receive federal financial assistance. The criteria include traditional labor standards, such as wages, paid leave, and workplace safety, and controversial provisions that favor unions, such as project labor agreements and neutrality and card check agreements. The EO will also require agencies to collect information related to labor practices from companies that work on or bid on federally funded projects. The administration claims the Order “supports the creation of well-paying jobs, especially union jobs.” Business groups and Republicans, however, claim the EO is less about setting standards and more about using federal funds to favor unions at the expense of nonunion companies and employees. Story
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WECA Government Relation Voters Guide. The WECA Government Relations Committee released a guide for the November election as pertains to California. It is available here for WECA CA members.
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