AGC CONSTRUCTION EDUCATION FOUNDATION Busy Legislative Session Ahead for AGC
By Dave Ackerman The Legislature is now a little over two
months into the 2015 legislative session, and the year is already stacking up to be a very busy one for the construction indus- try.
AGC Sponsored Legislation AGC is the primary sponsor on two
bills this year. The first bill will allow the use of a sure-
ty bond to meet the contractor’s obligation to deposit required amounts with the De- partment of Industrial Relations (DIR) in the event of a prevailing wage claim. Cur- rently DIR requires a cash deposit, which creates a hardship for most contractors. The second bill will require public
agencies to develop stormwater plans (SWPPP) prior to issuing bids requests on public works projects. This bill prohibits owners from delegating SWPPP design to contractors or forcing contractors to as- sume responsibility for SWPPP design. It will clarify Public Contract Code Section 1104 and conform to the Business and Professions Code, which requires licensed design professionals to create engineering and architectural plans.
Public Works Registration Fee AGC is monitoring the implementation
of the new $300 annual fee to be charged to all contractors before they can perform work on public works projects in Califor- nia. Contractor registrations began on July 1 of last year, and registration will be nec- essary to bid on public works as of March 1 of this year. Contractors who perform public works must be sure they are regis- tered with the DIR.
Corrosion Prevention SB 792, vetoed last year by the Gover-
nor, would have required that public proj- ects involving corrosion prevention and mitigation work to use trained and certi- fied personnel for surface preparation and application of protective coatings and lin- ings to steel and concrete surfaces. AGC will be working with DIR in response to the Governor’s veto message directing the Department to incorporate industry ac-
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cepted standards into the appropriate ap- prenticeship programs and work with the Standards Board to assess the adequacy of safety standards for workers engaged in corrosion prevention work and make nec- essary changes.
Gross Receipts Tax on Equipment Rentals (United Rentals Sponsor) AGC is working with the equipment
rental industry on legislation to establish a gross receipts tax in lieu of the personal property tax on equipment rentals. Legis- lative language has been agreed upon that will make the proposal revenue neutral and impact neutral on the construction industry.
Transportation Financing As a member of Transportation Cali-
fornia, AGC is supporting several strate- gies to generate sustainable financing for California’s
transportation system. The
options include: Redirecting nearly $1 billion a year in Truck Weight Fee revenues back to the State Highway Account to be used for maintenance and rehabilitation of highways, streets and roads.
Repayment of all outstanding loans made from transportation accounts to offset General Fund deficits during the years of the state’s budget problems.
Extending P3 authority for Caltrans which “sunsets” in 2017.
Supporting Administration efforts to move toward replacement of the Gas Tax with a Road User Charge.
Additional Cap and Trade funding for transportation related program.
A temporary increase in the Vehicle Registration Fee or Vehicle License Fee dedicated to street and highway main- tenance and rehabilitation.
Indexing the existing gas tax to the construction cost index.
Lowering the threshold for voter ap- proval of local transportation sales tax programs from 2/3rds to 55 percent.
Highway Work-Zone Safety Monitor implementation of CHP maxi-
mum enforcement of reduced speed limits in construction zones and support con-
tinued use of Highway Patrol presence in construction zones. Utilize the AGC Cal- trans Liaison Committee to continue dis- cussions concerning bidding and payment procedures concerning work zone safety.
Workers’ Compensation This year is the beginning of discussions
with the Legislature on the 2012 workers’ comp reforms to determine what changes have been effective and which ones have not worked. Organized labor once again will likely be pushing for increased ben- efits, and the workers’ compensation at- torneys will be looking for ways to expand benefits. AGC will be engaged in those dis- cussions to ensure that workers’ compen- sation costs are controlled.
Type I Indemnity SB 474 enacted in 2012 eliminated the
use of Type I Indemnity Agreements be- tween general contractors and their sub- contractors effective January, 2013. The bill contained several fundamental draft- ing errors that need correction, and AGC will be working with the subcontractor in- dustry this year on remaining issues con- cerning SB 474.
Other Legislative Issues In addition to the issues above, AGC
will be working with other construc- tion associations and construction labor unions concerning the following issues: Prompt payment on change orders Prequalification on public works projects
Owner controlled insurance programs Lease-leaseback procurement “Best Value” public works bidding Prevailing wage requirements for material delivery and hospital construction
“Force Account” compliance on water projects
“Underground economy” issues Apprenticeship programs Career Technical Education Sales tax on construction contracts Excavation liability
tive year. 2015 indeed is becoming a busy legisla- Associated General Contractors of California 5
GOVERNMENT RELATIONS
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