SBCTC Bills Encouraging PLAs & Protecting Prevailing Wage Reach Governor
September 17, 2015 - In the closing days of the 2015 legislative session, several important bills sponsored by the State Building and Construction Trades Council of California won final legislative approval and reached Governor Jerry Brown’s desk, where they now await his signature. Among them are:
Assembly Bill 852 (Burke)
This bill requires that workers earn prevailing wage on the construction of hospitals financed by “conduit bonds,” in which the state or local government issues the bonds to render them tax-exempt and create savings for the developer. The government is providing a public subsidy for the project through its lost tax revenue, often amounting to millions of dollars, and workers on those projects should therefore earn the prevailing wage. AB 852 would ensure they receive it.
Assembly Bill 1358 (Dababneh)
This bill extends design-build authority for school districts, and requires contractors on those projects to employ a skilled and trained workforce from state-approved apprenticeship programs. It also establishes reporting requirements, which alternatively may be satisfied by a Project Labor Agreement that contains the skilled workforce requirements.
Assembly Bill 1431 (Gomez)
This bill allows school districts to use an alternative bidding procedure known as Job Order Contracting to reduce costs and accelerate completion on some projects, provided the contractors are prequalified and enter into a Project Labor Agreement. It is modeled after a successful process developed by the Los Angeles Unified School District and the Los Angeles/Orange Counties Building and Construction Trades Council.
SBCTC President Robbie Hunter commented: “All of these bills share the same basic goal, providing a level playing field for fair contractors, and ensuring that public works projects in California are built by a streamlined, highly skilled and trained work force who get the job done once, done right, on time and on budget, under the lowest bid. We thank the authors of these important bills and urge Governor Jerry Brown to sign them.”
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