BILL ANALYSIS SENATE COMMITTEE ON EDUCATION John Vasconcellos, Chair 2003-2004 Regular Session BILL NO: AB 1647 AUTHOR: Wiggins AS INTRODUCED: February 21, 2003 FISCAL COMM: Yes HEARING DATE: July 2, 2003 URGENCY: No CONSULTANT:Kathleen Chavira SUBJECT School Building Construction - Pre-fabricated Materials SUMMARY This bill requires the Department of General Services to study the use, and its approval, of prefabricated materials in the construction of public schools and to report its findings, as specified, to the Legislature by January 1, 2005. BACKGROUND Current law provides for the safety of design and construction of factory-built buildings for use as school buildings and directs the DGS to prescribe procedures for the plans, specifications, methods of construction, and estimates of costs of a factory-built school building to be submitted to the department for approval. A factory-built building means any building designed or intended for use as a school building which is either wholly manufactured or is in substantial part manufactured at an offsite location in accordance with building standards adopted in specified law. A manufacturer of such buildings is required to submit to the DGS and the SDE, for approval, its plans, specifications, methods of construction, and estimate of cost of such buildings. AB 1506 (Wesson, Chapter 868, Statutes of 2002) required entities using funds from the education facilities bond acts of 2002 and 2004 for public works projects to initiate and enforce, or contract with a third-party to initiate and enforce labor compliance programs. Among other things a labor compliance program requires that the awarding body AB 1647 Page 2 review, and, if appropriate, audit payroll records to verify compliance with prevailing wage law. An awarding body is required to make a written finding that it has initiated and enforced a labor compliance program. If the awarding body is a school district, the governing body of the district must transmit a copy of the written finding to the State Allocation Board (SAB). The SAB is prohibited from releasing funds until the written finding has been received. ANALYSIS This bill : 1) Requires the Department of General (DGS) services to: a) Study the use, and its approval, of prefabricated materials in the construction of public schools. b) Report its findings, to include an inventory of all types of prefabricated materials submitted to DGS for approval, to the Legislature by January 1, 2005. 2) Repeals the provisions of the bill as of January 1, 2006. STAFF COMMENTS According to information provided by the author, the problem which this bill attempts to address is related to Precedential Decision #2002-064, issued by the Director of the Department of Industrial Relations, which required that prevailing wages be paid to the employees of contractors and subcontractors engaged in the off-site fabrication or pre-fabrication of items produced for public works projects. It is unclear to staff how the bill's provisions are related to the author's intent. What content is expected in the study? What action is the Legislature to consider as a result of the study? What action is DGS AB 1647 Page 3 expected to take? Is the study expected to provide information to the Department of Industrial Relations? Why is it necessary to gather this information on all requests submitted, versus only those approved? Staff recommends that the bill be amended to clarify what is to be studied and reported by DGS, and how the Legislature, or other entities are to use the resulting information. SUPPORT None received OPPOSITION None received