BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1647
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1647 (Wiggins)
          As Introduced February 21, 2003
          Majority vote 

           EDUCATION           11-0        APPROPRIATIONS      24-0        
           
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          |Ayes:|Goldberg, Plescia, Cohn,  |     |                          |
          |     |Diaz, Garcia, Hancock,    |     |                          |
          |     |Liu, Mullin, Pavley,      |     |                          |
          |     |Reyes, Wyland             |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Requires the Department of General Services (DGS) to  
          study the use, and its approval, of prefabricated materials in  
          the construction of public schools and report its findings,  
          including but not limited to, an inventory of all types of  
          prefabricated materials submitted to DGS for approval, to the  
          Legislature by January 1, 2005. 

           EXISTING LAW  :

          1)Establishes various school construction health and safety  
            requirements, including, but not limited to, certain  
            requirements that DGS approve construction plans for  
            compliance with prescribed seismic safety and fitness-for-use  
            requirements.

          2)Authorizes DGS to adopt regulations for safety and design of  
            factory-built buildings for use as school buildings, and to  
            approve or reject plans and specifications submitted by  
            manufacturers of factory-built buildings.

          3)Requires that prevailing wage be paid to employees of public  
            works projects and allows the Director of the Department of  
            Industrial Relations (DIR) to determine what constitutes a  
            public works project. 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, unknown General Fund costs to DGS of approximately  
          $100,000 to comply with the provisions of this bill.

           COMMENTS  :  On April 10, 2003, the director of DIR determined  








                                                                  AB 1647
                                                                  Page  2

          that prevailing wages must be paid to the employees of  
          contractors or subcontractors engaged in the off-site  
          fabrication or prefabrication of items specifically produced for  
          public works projects.  

          Existing state law requires that prevailing wage be paid to  
          employees of public works projects and provides the Director of  
          DIR with the ability to determine what constitutes a public  
          works project.  Therefore, by determining that the construction  
          of certain off-site fabricated or prefabricated materials as  
          public works projects, employees involved in the fabrication or  
          prefabrication of these materials must be paid prevailing wages.

          According to the author, the Director of DIR made the  
          determination that prevailing wages must be paid to the  
          employees of contractors and subcontractors engaged in the  
          off-site of items produced for public works projects based on a  
          situation at Cuesta College in San Luis Obispo.  At Cuesta  
          College the a contractor responsible for the heating,  
          ventilation, and air-conditioning systems on a project did not  
          pay the employees prevailing wage even though the workers  
          fabricated the items specifically for the public works project.   


          The author believes that, with the passage of the school bond,  
          many public works projects similar to the project at Cuesta  
          College will soon go out to bid with the likelihood that the  
          plans submitted and approved by DGS, contain off-site fabricated  
          or prefabricated items designed especially for the project.   
          Without knowledge of materials approved by DGS, some school  
          construction projects may be in violation of prevailing wage  
          requirements.  Therefore, this measure requires DGS to create a  
          list of all approved fabricated and prefabricated materials used  
          in school construction sites so that all participatory and  
          regulatory parties better understand the scope and impact of the  
          recent determination. 

           
          Analysis Prepared by  :  Mavonne Garrity / ED. / (916) 319-2087


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