News & Press

New Laws for 2014

Governor Jerry Brown signed over 800 new laws that will take effect in 2014. Following is a list of selected new laws AGC was following with a brief description of each bill signed into law. Please contact Dave Ackerman or Jamie Khan in AGC’s Legislative Office in Sacramento for additional information on any specific bill. For a complete list of all major legislation, please go to the AGC website.

Prevailing Wage

Prevailing Wages: Payroll Records. AB 1336 (Frazier) – Extends the deadline for the Department of Industrial Relations to make a prevailing wage determination from 180 days to 1 ½ years after a valid notice of completion is filed on a public works project.

Prevailing Wage – Charter Cities. SB 7 (Steinberg) – Withholds state funding from charter cities that adopt an ordinance authorizing contractors not to comply with prevailing wage law on any public works contract.

Refineries: Skilled and Trained Workforce/Prevailing Wage. SB 54 (Hancock) - Requires an owner of a petrochemical plant to require that its contractors and any subcontractors use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades and pay prevailing wages.

Prevailing Wage Determinations. SB 377 (Lieu) - Requires the Director of Industrial Relations to make a prevailing wage determination within 60 days of receipt of the last support or opposition letter relating to that project or type of work and for projects or types of work that are otherwise private development projects receiving public funds, DIR must make a determination within 120 days of receipt.

Public works: prevailing wage rates: employer payment credits. SB 776 (Corbett) - Provides that an employer may take credit for specified employer payments, even if those payments are not made during the same pay period for which credit is taken, if the employer regularly makes those payments on no less than a quarterly basis.

Public Works/Public Contracts

Public Contracts - Subletting and Subcontracting bidding practices . AB 44 (Buchanan) - Requires subcontractors license numbers to be listed on all bids made to public agencies and gives the general contractor the ability to correct a mistake in the license number without risking a bid protest or non-responsive bid. The bill also includes a delay in implementation until July 1, 2014.

CM at Risk authorization for Counties. SB 328 (Knight) - Authorizes until January 1, 2018 and sets out conditions under which counties can utilize CM at Risk procurement for projects in excess of $1,000,000.

Building Construction

Counties: Design-Build. AB 195 (Hall) - Authorizes counties to use Design-Build for bidding on construction projects in excess of $2,500,000 until July 1, 2016. Their authority would have ended December 31 of this year.

Green building standards. AB 341 (Dickinson) - Requires the California Building Standards Commission and state agencies that propose green building standards to allow for input by other state agencies that have expertise in green building subject areas.

OSHPD: hospital construction. SB 563 (Galgiani) - Requires a person or entity requesting a copy of construction documents maintained by the Office of Statewide Health Planning and Development to bear the cost of producing the copy of those documents and also requires the office to provide an estimate of those costs to the requester before beginning to make those copies.

Transactions and use taxes: Alameda and Contra Costa County. AB 210 (Wieckowski) - Extends the authority of the County of Alameda, and would authorize the County of Contra Costa, to impose the transactions and use tax for countywide transportation programs until December 31, 2020, subject to voter approval.

Design-build: highways. AB 401 (Daly) - For the next 10 years, authorizes the Department of Transportation to utilize design-build procurement for up to 10 projects on the state highway system and authorizes regional transportation agencies to utilize design-build procurement for an unlimited number of projects on or adjacent to the state highway system. Caltrans is required to perform inspection services on all of these projects.

General Construction

Carl Moyer Program – Funding. AB 8 (Perea) - Extends to 2024 the sunset on various permit fees which fund the Carl Moyer Program to provide continued financing for the retrofitting of diesel construction equipment.

Contractors: limited liability companies. AB 1236 (Hagman) - (AGC sponsored legislation) - Permits liability insurance policies required for construction LLC’s may also be written by an eligible surplus lines insurer.

Employee/Employer Issues

Compensation: Heat illness recovery periods. SB 435 (Padilla) - Makes the prohibition for an employee to work during any mandated meal or rest period applicable to heat illness or recovery periods mandated by applicable statute or applicable state regulation.

Employment: retaliation. SB 666 (Steinberg) - Subjects business licenses to suspension or revocation if the licensee has been determined by the Labor Commissioner or the court to have violated certain law relating to immigration retaliation.

Contractor License Law

Contractors: fraudulent use of license. SB 261 (Monning) - Provides that any licensed or unlicensed person who willfully and intentionally uses, with intent to defraud, a contractor's license number that does not correspond to the number on a currently valid contractor's license held by that person, is guilty of a crime and is subject to the administrative remedies authorized by the Contractors' State License Law.

Contractors. SB 262 (Monning) - Establishes specific criteria that a qualifier for a construction company must meet and creates a misdemeanor penalty for those not meeting the definition.