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New California Laws Authorize More Design-Build, Allow Public Contracting Innovations, Tighten Licensing Requirements, Extend Solar Incentives, Expand Tire Recycling
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March 5, 2007
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Edited by Clark T. Thiel Thelen Reid Brown Raysman & Steiner LLP
DESIGN-BUILD
Transit Districts Authorized to Enter into Design-Build Contracts
The Public Contract Code was amended to extend until January 1, 2011, the authority of transit districts to enter into design-build contracts and to select the contractor on a best value basis. The amendments also expand the definition of a transit operator and require a transit operator to establish a labor compliance program for design-build contracts when the transit operator does not already have a labor compliance program. The amendments permit design-build to be used on non-rail projects that cost more than $2,500,000 and on rail projects that cost more the $25 million.
AB 372, amending Public Contract Code §§20209.5, 20209.7, 20209.14
- Laura Kent
Los Angeles County Permitted to Enter into Design-Build Contract for Construction of HOV Lane
Newly enacted Public Contract Code §20209.20, et seq. permit the Los Angeles County Metropolitan Transportation Authority to use the design-build method of contracting for construction of a high-occupancy vehicle lane in Los Angeles County. All bidders are required to submit pre-qualification questionnaires and verify their contents under penalty of perjury. Final selection of the contractor must be based on a competitive bidding process, with the contract awarded to the lowest responsible bidder. Within three years after the contract is awarded, the Los Angeles County Metropolitan Transit Authority must submit a progress report to the Senate Committee on Transportation and Housing and the Assembly Committee on Transportation.
SB 1026, adding Public Contract Code §20209.20, et seq.
- Laura Kent
City of Victorville Permitted to Enter into Design-Build Contracts
Public Contract Code §20175.2 was amended to permit the City of Victorville until January 1, 2011, to enter into design-build contracts with the approval of the city council. The city may enter into design-build contracts when it is anticipated that the method will reduce project cost, expedite project completion or provide design features not achievable though the design-bid-build method. The amendment also requires the city council to establish a labor compliance program for design-build contracts and requires selection of the design-build contractor based on the lowest responsible bidder or the best value.
SB 535, amending Public Contract Code §20175.2
- Laura Kent
UCSF May Use Best Value Procurement
Existing law requires the Regents of the University of California to award construction contracts to the lowest responsible bidder. A new law, codified at Public Contract Code §§10502 and 10506.4, et seq., allows the University of California San Francisco campus to use the best value contracting process.
SB 667, amending Public Contract Code §§10502, 10506.4, et seq.
CONTRACTING
Transportation Agencies Authorized to Enter into Leases for Toll Projects
Streets and Highways Code §143 authorizes the Department of Transportation and regional transportation agencies to enter into four comprehensive development lease agreements with public and private entities for toll projects. The Legislature has 60 legislative days after submittal of the negotiated lease agreement to pass a resolution rejecting the agreement. If the Legislature fails to act timely, then the agreement is approved. The lease agreement may not be negotiated by the Legislature.
Developers of the projects may charge tolls and user fees to certain commercial users of those projects, with the leased facility and the right to collect tolls reverting to CalTrans or the regional transportation agency upon expiration of the lease.
AB 521, adding Street and Highways Code §§143, 149.7
- Peter Zweighaft
Type 1 Indemnity Between Public Entities and Design Professionals Barred
Civil Code §2782.8 was enacted and effectively eliminates "Type I" indemnity clauses from all contracts or contract amendments entered into by agencies with design professionals after January 1, 2007. The new statute permits indemnity clauses to apply only to claims arising out of the negligence, recklessness or willful misconduct of the design professional. Agreements entered into after January 1, 2007, purporting to provide broader indemnity will not be enforced.
AB 573, adding Civil Code §2782.8
Scope of CSU Contract Law Broadened
The scope of the California State University Contract Law, which requires the University Trustees to abide by bidding and other requirements for all contracts above a specified sum, is expanded. The amendments preclude the trustees from circumventing the requirements of the CSU Contract Law by operating through "auxiliary organizations." Any construction project located on CSU property and funded in whole or in part with public funds, including those projects for which an auxiliary organization of CSU is the contracting party, now is subject to the CSU Contract Law.
AB 1986, adding Education Code §89911 and amending Public Contract Code §§10701, 10704
Santa Clara Valley Transportation Authority May Make Certain Purchases by Competitive Negotiation
Previously, contracts for all supplies, equipment and materials costing more than $25,000 procured by the Santa Clara Valley Transportation Authority had to be awarded to the lowest responsible bidder. Public Contracts Code §20306 was amended to allow VTA's board of directors to directly purchase computers, telecommunications equipment, fare collection equipment, radio and microwave equipment, and other electronic equipment by competitive negotiation. Specialized rail transit equipment, including such items as railcars and tunnel boring machines, now can be purchased by competitive negotiation if two-thirds of the board of directors approve. Public Contracts Code §20306 defines and specifies the procedures for competitive negotiation. The section, however, does not apply to contracts for construction or for the procurement of any product available in substantial quantities to the general public.
ABA 2520, amending Public Contracts Code §20306
- Brienne Wesolek
Authorization for L.A. Unified School District to Use Job Order Contracting Extended
The Los Angeles Unified School District previously was authorized to use a job order contracting as a pilot program. JOC allows the school district to award contracts based on construction tasks and unit prices. Contractors bid an adjustment factor to the published unit prices, with the lowest pre-qualified bidder awarded the contract. The program is extended for five years through December 1, 2012. A report on each job order contract must be forwarded to an additional legislative entity, the Joint Legislative Budget Committee.
AB 2362, amending Public Contract Code §§20919.12, 20919.15
Public Agencies May Be Sanctioned for Violating Public Project Accounting Laws
The California Uniform Public Construction Cost Accounting Act establishes bidding procedures for public projects. Public agencies may elect to be subject to the act. Under existing law, a party may request that the California Uniform Construction Cost Accounting Commission review the bidding practices of a participating public agency to determine if the agency has violated the act.
The new law, codified at Public Contract Code §22044.5, establishes penalties for any participating public agency that violates the act. When the commission has, on three occasions in a 10-year period, determined that a participating agency has not complied with the bidding procedures authorized by the act, the agency is prohibited from using those bidding procedures for five years.
AB 2372, adding Public Contract Code §22044.5
LICENSING
Architect, Landscape Architect Reporting Obligations Modified
Business and Professions Code §5588 was amended to provide civil penalties of $100 to $1,000 for violations of reporting obligations as additional intermediate sanctions in lieu of revoking an architect's license. Intermediate sanctions, also in lieu of license revocation, now can include monetary sanctions up to $20,000 if the violation was committed "knowingly and intentionally." Section 5588 requires architects to self-report a civil judgment, settlement, arbitration award or administrative ruling resulting in an award of $5,000 or more against the architect arising out of fraud, deceit, negligence, incompetence or recklessness.
Section 5678 was added to the Business and Professions Code. It imposes the same self-reporting standards on landscape architects as Business and Professions Code §5588 imposes on architects. The penalties are the same as in §5588.
Business and Professions Code §5615 was modified to include in the definition of landscape architect a person who "offers" to perform landscape architecture services. The definition of practice of landscape architecture has been expanded to include the "analyses of environmental physical and social characteristics."
AB 2256, amending and adding Business and Professions Code §§5588, 5615, 5678
- Aaron Gruber
Licensee Who Fails to Satisfy Outstanding Liabilities Barred from Acting as Qualifier
Business and Professions Code §7145.5 has been amended. Any qualifying person or personnel of record of a licensee, which failed to resolve outstanding final liabilities and suffered a license suspension, is expressly prohibited from serving in any capacity subject to licensure under the Contractors' State License Law (except a non-supervising bona fide employee) until the debts are satisfied. A licensee that employs any personnel of record with an outstanding liability will be suspended until the debt is satisfied or the person disassociates himself from the licensee.
In addition, provisions on discharge of debt have been tightened. Licensees may not be required to satisfy a monetary obligation or debt "to the extent it was discharged in a bankruptcy proceeding" as opposed to merely being "adjudicated in a bankruptcy proceeding." In addition, a contractor previously could settle a debt by composition, arrangement or reorganization with creditors for less than the full amount. Now, the contractor must satisfy the obligation to the extent it is not discharged under federal law.
AB 2456, amending Business and Professions Code §7145.5
- Clark Thiel
Qualifier for Permanently Revoked License Cannot Perform Work Requiring a License
Sections 7121.6, 7121.65, 7121.7 and 7121.8 have been added to the Business and Professions Code providing that a person who furnished the qualifications for licensure and was serving as the qualifier when acts were committed that resulted in the permanent revocation of a license can perform work requiring a license only as a bona fide non-supervising employee of a licensee. The same rule applies to any member, officer, director, owner or partner of an entity that suffered permanent revocation of its license.
Such persons now must provide a prospective employer with written notice of the license revocation. Any qualifier, officer, partner or other person named on a license who nevertheless hires such a person as other than a bona fide non-supervising employee would be guilty of a misdemeanor and subject to fines and/or imprisonment.
AB 2897, adding Business and Professions Code §§7121.6, 7121.65, 7121.7, 7121.8
- Clark Thiel
C-39 Roofing Contractors Must File Worker's Comp Certificates
Starting January 1, 2007, all contractors with a C-39 roofing contractor license must have a valid Certificate of Worker's Compensation Insurance or Certificate of Self-Insurance on file with the Contractors State License Board or the registrar will automatically remove the C-39 classification from the license. Any reinstatement, reactivation, renewal or continued maintenance of a C-39 license after January 1, 2007, will require the applicant to file a Certificate of Worker's Compensation Insurance or Certificate of Self-Insurance. There is no exemption for C-39 license holders who have no employees.
Any insurer who issues worker's compensation insurance to C-39 licensees must annually audit the contractor's payroll. The insurance commissioner must prepare a report of the total annual payroll and loss data reported for those holding C-39 licenses.
The laws are effective through January 1, 2011.
AB 881, amending and adding Business and Professions Code §7125 and Insurance Code §11665
Authority of Civil Engineers, Land Surveyors Expanded
Business and Professions Code §§6731.1 and 8726 have been amended to expressly permit, respectively, a registered civil engineer and a registered land surveyor to determine the earth's contours or the position of a fixed object "above, on, or below the surface of the earth" through trigonometry or photogrammetry. They now may provide a statement regarding the accuracy of maps or measured survey data relating to the alignment or elevations of completed civil engineering projects and the earth's contours or the position of a fixed object.
SB 1849, amending Business and Professions Code §§6731.1, 8726
- Aaron Gruber
Alarm Installation and Maintenance Gets Limited Exemption from Home Improvement Act
Business and Professions Code §7159 (a) has been amended to include references to fire alarm systems and services provided in conjunction with alarm systems. The amendments exclude from the provisions of §7159 the sale, installation and/or servicing of a fire alarm system provided that all of the costs attributable to "making the fire alarm system operable, including sale and installation costs," are $500 or less. The cost limit does not include costs of monitoring the alarm system.
AB 2073, amending and adding Business and Professions Code §§7159, 7159.9
- Aaron Gruber
EXCAVATION
New Requirements for Working Around Underground Utilities Enacted
The Legislature enacted five significant changes to the requirements for working near an underground utility:
|  | Before excavation within 10 feet of a high-pressure utility line, the owner of the utility must notify the excavator of the existence of the high-pressure utility. The utility owner and excavator are required to meet onsite to determine any actions or activities necessary to verify the location of the high-pressure line before excavation. Government Code §§4216.2
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|  | New Government Code §4216.3 (a) (4) requires the owners of high-pressure underground utility lines to maintain and preserve all plans and records of the installation of such utilities.
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|  | Only a person who has completed a training program that is in accordance with the requirements of 8 California Code of Regulations §1509 and that meets the minimum training guidelines and practices of Common Ground Alliance current best practices may locate underground utilities. That person is required, at a minimum, to use a single-frequency utility locating device and should have access to other devices for verification if necessary. Government Code §4216.3
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|  | Under revised Government Code §4216.4 (a), a person who performs excavation around underground utilities may use vacuum excavation or power-operated or power-driven excavating and boring equipment to locate the underground utilities. To do so, however, the excavator must give the utility owner documented notice of intent to use this equipment, and the utility owner must agree to the use of that equipment.
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|  | If an excavator discovers or causes damage to an underground utility, including any breaks, leaks, nicks, dents, gouges, grooves or other damage to subsurface lines, conduits, coatings or cathodic protection, it must immediately notify the utility owner or call 911 emergency services. Government Code §4216.4.
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AB 463, amending Government Code §4216.4, and SB 1359, amending Government Code §§4216, 4216.2, 4216.3, 4216.4, 4216.7
HEALTH-CARE FACILITIES
Electronic Submission of Plans to OSHPD Permitted
Health and Safety Code §129765, which requires applications for approval of plans for hospital construction projects to be accompanied by full, complete and accurate specifications, was amended to allow the Office of Statewide Health Planning and Development (OSHPD) to permit the electronic submission of plans.
Health and Safety Code §130021.5 was added to require OSHPD to propose emergency regulations amending the California Mechanical Code to facilitate construction of toilet rooms accessible to disabled persons in hospitals and skilled nursing facilities. This section will be repealed on January 1, 2008, unless extended.
SB 1659, amending Health and Safety Code §§129765, 130021.5
- E. Todd Chayet
OSHPD May Further Extend Deadline for Meeting Seismic Safety Retrofit Requirements
Health and Safety Code §130060, which allows extensions of time to meet the deadline for compliance with seismic safety building standards for acute care hospitals constructed after March 7, 1973, was amended to authorize OSHPD to grant an additional extension if certain conditions are met. In addition to the previously-authorized five-year extension of the January 1, 2008 deadline, hospitals may receive an additional two-year extension if: (1) the building is under construction at the time of the request, (2) the building plans were submitted and ready for review at least four years before the deadline, (3) the hospital received a building permit at least two years before the deadline, (4) the hospital submitted a construction timeline at least two years before the deadline, and (5) the hospital has made reasonable progress in meeting the deadline, but for reasons beyond its control, it is impossible for it to meet the deadline. Under certain circumstances, the office may revoke an extension on the basis of abandonment or suspension of the construction.
Health and Safety Code §130061 was amended to require nonconforming acute care hospitals to submit a report identifying: (1) the status of each building subject to §130060 (a); (2) the projected construction start and completion dates; and (3) buildings to be removed from acute care service. Hospitals that have not requested an extension under §130060 must submit such a report by April 15, 2007, and hospitals that have requested an extension must submit such a report by June 30, 2009.
SB 1661, amending Health and Safety Code §§130060, 130061
- E. Todd Chayet
OSHPD Required to Train Fire, Life Safety Officers
Health and Safety Code §129856 requires OSHPD to establish a program for training fire and life safety officers in reviewing plans and specifications for hospital buildings and to prepare a comprehensive report on the training program.
Health and Safety Code §129880 allows the office to exempt from its review process projects with estimated construction costs of $50,000 or less. Projects that have been split into a series of smaller projects in order to avoid the qualifying dollar limits will not be approved. A pre-submittal meeting between OSHPD and the design professionals is required for projects with estimated construction costs of $20 million or more.
Health and Safety Code §129881 requires OSHPD to assess processing time for plan review and to provide an annual update to the Legislature by February 1, 2007, and each year thereafter. This section will be repealed on January 1, 2012, unless extended.
AB 1808 and SB 1838, adding Health and Safety Code §§129856, 129880, 129881
- E. Todd Chayet
EDUCATIONAL FACILITIES
Voluntary Collaborative Plan Review Option Enacted for School Construction
New statutes and amendments to existing statutes in the Education Code revise the Department of General Services' oversight and supervision of design and construction of community colleges and school buildings serving kindergarten through Grade 12. In an effort to expedite project development and review, the Department of General Services is required to establish procedures for a voluntary collaborative process using pre-qualified plan review firms. Applicants now may choose between the pre-existing plan review process or the new collaborative process. The new statutes include pre-qualification requirements, procedures and requirements; set out filing fees for plan review and approval; and set project valuation guidelines that dictate what review procedures must be followed.
AB 162, amending Education Code §§17303, 17305, 81133, 81134, 81135 and adding §§81133.1, 81133.1, 81133.2, Article 3.3
Surplus Technical Education Equipment Must Be Listed
Education Code §52499.65 requires the Department of Education to develop and maintain a registry of career technical education equipment (e.g., table saws, drafting equipment, auto diagnostic equipment) that is listed for sale. The registry must be accessible via the Internet, and the listed equipment first must be offered for sale to other school districts.
AB 368, adding Education Code §52499.65
New Vocational Facility Certification Required
Before a school district can build or modernize school facilities, it must confirm as part of its funding application that it considered whether the need for vocational and career technical facilities in the district was being adequately met.
AB 2419, adding Education Code §17070.995
ENVIRONMENT
State Air Resources Board Required to Address Greenhouse Gases
New laws require the Air Resources Board to: (1) formulate and adopt regulations for reporting and verifying statewide greenhouse gas emissions in order to monitor compliance and enforce any rule, order, emission limitation or compliance mechanism adopted by the board; (2) implement a statewide limit on greenhouse gas emissions to be achieved by 2020 that is equivalent to statewide greenhouse gas emissions levels in 1990; (3) formulate and adopt the regulations in an open process that includes public hearings, utilizes market-based compliance mechanisms and employs the maximum technologically feasible and cost-effective greenhouse gas reduction methods; and (4) adopt a schedule of fees to be paid by regulated sources of greenhouse gas emissions to be deposited into a fund for implementing the new law.
Violation of any rule adopted by the Air Resources Board will be considered an infraction or crime punishable by a fine and/or imprisonment as set forth in the new law. There will be no reimbursement for local agencies and school districts in connection with the new law.
AB 32, amending Health and Safety Code §§38500, et seq.
New Incentives Added for Use of Solar Energy
To foster use of solar energy, the Public Utility Commission will provide monetary incentives through 2016 for up to the first megawatt of alternating current generated by eligible solar systems. PUC already has a similar program, the California Solar Initiative, in place, but the new legislation empowers the Energy Commission to redefine the criteria for eligible systems and expands the program and the incentives available. Under the new legislation, all local publicly-owned electric utilities will be required to adopt a solar-incentive program before January 1, 2008, thus imposing a state-mandated local program.
The new legislation has the possibility to affect contractors and developers in the future. Under the bill, the Energy Commission is required to study whether solar energy systems should be required on new residential and non-residential buildings. The Contractors State Licensing Board must review and potentially revise its licensing classifications for contractors authorized to perform work on solar energy systems.
The most far-reaching provision of the bill will not take effect until January 1, 2011. At that time, developers of "production homes" (projects with 50 or more single-family homes) will be required, under certain conditions, to offer the option of a solar energy system to all customers negotiating to purchase a new home constructed.
SB 1, amending Public Resources Code §§25405.5, 25405.6, 25780 and Public Utilities Code §§387.5, 2827, 2851
State Must Provide Additional Tools to Encourage Energy Efficiency
The Government Code has been amended to encourage the implementation of energy efficiency measures in all new construction. Under existing law, this encouragement is limited to requiring new public construction and certain public renovations and remodels to serving as models of energy efficiency. Under new Government Code §15814.40, the Department of General Services and the State Energy Resources Conservation and Development Commission must develop tools for facilitating private industry's implementation of energy efficiency measures. The statute requires the agencies to identify the following:
|  | A life cycle cost analysis model to be used in certain state building design and construction decisions.
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|  | Appropriate financing and project delivery mechanisms to facilitate state building energy and resource efficiency projects.
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|  | Obstacles to adoption of energy efficiency measures by private industry.
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|  | Financial and other incentives to encourage private sector adoption of energy efficiency measures.
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AB 2160, adding Government Code §15814.40
Waste Tire Recycling Program Requirements Redefined
Public Resources Code §42872.5 authorizes the California Integrated Waste Management Board to award grants to cities and other government agencies to fund public works projects that use certain levels of rubberized asphalt concrete. SB 369 reduces the amount of rubberized asphalt concrete that is needed to qualify for the grants from a minimum of 2,500 tons to 1,250 tons while increasing the amount of the grants from $50,000 to $250,000. The board is to annually determine the amount of the grants based on the per ton amount of rubberized asphalt concrete to be used on projects. The grants are to be funded by an appropriation in the annual budget act from the California Tire Recycling Management Fund.
To provide for outreach to local agencies regarding the use of rubberized asphalt concrete in public works projects, Public Resources Code §42872.5 now requires the California Integrated Waste Management Board and the Department of Transportation to post on their respective Web sites descriptions of and data about the public works projects that include rubberized asphalt concrete.
Public Resources Code §42873, which defines the activities eligible for funding under the Tire Recycling Program, was amended to increase the types of activities eligible for funding. Activities that are designed to reduce landfill disposal of used whole tires may include the manufacture of products made from used tires, including rubberized asphalt, asphalt rubber, modified binders, chip seals and tire-derived aggregate applications, including lightweight fill and vibration mitigation.
The time that the Integrated Waste Management Board has to submit its five-year plan to establish goals and priorities for the waste tire program was extended from June 30, 2006, to June 30, 2010.
SB 369, amending Public Resources Code §§42872.5, 42873, 42885.5
- Peter Zweighaft
Lead Abatement Penalties Increased for Subsequent Violations
Under current law, when an enforcement agency determines that certain activity is creating or has created a lead hazard at that location, the agency may order the owner to abate the lead hazard and order the person whose activity is creating the hazard to cease and desist. A violation of the law is an infraction punishable by a fine of up to $1,000. Under the new law, a second or subsequent violation shall be a misdemeanor punishable by a fine of up to $5,000 or imprisonment of up to six months in county jail or both. Any penalties under the new law are in addition to any other penalty or remedy provided by law.
AB 2861, amending Heath and Safety Code §105256
Specified Highway and Bridge Seismic Retrofit, Levee Projects Exempted from CEQA
The California Environmental Quality Act (Public Resources Code §§21080, et seq.) requires a lead agency to prepare an environmental impact report or a negative declaration for projects that may have a significant effect on the environment. CEQA includes many exemptions. Sections 21080.12, 21080.14 and 21080.16 have been added to the Public Resources Code to provide exemptions for specified levee and highway and bridge seismic retrofit projects. The amendments, however, require the lead agencies to satisfy additional requirements: (1) to conduct outreach efforts to ensure public awareness of the proposed repair work; (2) to comply with, to the extent feasible, standard construction practices and to use equipment powered by emulsified diesel fuel, electricity or natural gas; and (3) to comply with measures for control of particulate matter emissions recommended by the applicable air district.
Public Resources Code §21157.7 provides for a master environmental impact report for a U.S. Department of Transportation program to improve segments of Highway 99.
Federal law requires the U.S. Secretary of Transportation to carry out a surface transportation project delivery pilot program. California has agreed to participate in the program. New Streets and Highways Code §820.1 provides that until January 1, 2009, California consents to the jurisdiction of the federal courts with regard to compliance, discharge or enforcement of responsibilities assumed pursuant to the project delivery pilot program.
AB 1039, adding and amending Public Resources Code §§21157.7, 21080.12, 21080.14, 21080.16; amending Streets and Highways Code §820.1; and amending Article 3.5 of the Water Code
- Brienne Wesolek
EMPLOYMENT
More Employees Allowed to Pre-Designate Personal Physician for Work-Related Injury
Previously, there was a percentage limit on the number of employees at a business who could predesignate a personal physician from whom they would like treatment in the event of a work-related injury. Now, any employee may predesignate, and the employee is entitled to all medically appropriate referrals by the predesignated personal physician. The term "personal physician" is defined and includes not only the employee's actual physician but also the physician's medical group if the group meets certain defined requirements.
The predesignation provision is in effect until December 31, 2009.
AB 2068, amending Labor Code §4600
Employment Training Panel Authorized to Allocate Funds to Major Seasonal Industries
The Employment Training Panel is part of the California Employment Department and is responsible for contracting for training in job-related vocational skills. Existing law permits the panel to allocate a specified percentage of annual training funds to special employment training projects that improve the skills of frontline workers.
The new law, codified at Unemployment Insurance Code §§2655 and 10214.5, authorizes the panel to allocate funds for vocational skills training to increase the productivity and extended retention of workers in the state's major seasonal industries. "Major seasonal industries" refers to eligible employers who satisfy all of the following requirements: (1) Have a workforce comprised of at least 50 percent of workers whose employment period is necessarily cyclical, including businesses directly involved in the harvesting, packing, or processing of goods or products; (2) Have retained at least 50 percent of the same seasonal employees for at least one season of not less than 500 hours for the preceding 12-month period; and (3) Pay wages and provide benefits that exceed industry averages.
SB 1690 amending Unemployment Insurance Code §§2655, 10214.5
GENERAL
Bond Issue Vote on High-Speed Train System Moved to November 2008 Election
Streets and Highways Code §2704.13 was amended to move submission of the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century to the voters for approval from the November 7, 2006, general election to the November 4, 2008, general election. If approved, the act would authorize issuance of $9.95 billion of general obligation bonds, $9 billion of which would be available in conjunction with any available federal funds for planning and construction of a high-speed train system and $950 million of which would be available for capital projects on other passenger rail lines to provide connectivity to the high-speed train system and for capacity enhancements and safety improvements to those lines.
Ballots for the November 4, 2008, general election are to include: "This act provides for the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century. For the purpose of reducing traffic on the state's highways and roadways, upgrading commuter transportation, improving people's ability to get safely from city to city, alleviating congestion at airports, reducing air pollution, and providing for California's growing population, shall the state build a high-speed train system and improve existing passenger rail lines serving the state's major population centers by creating a rail trust fund that will issue bonds totaling $9.95 billion, paid from existing state funds at an average cost of ___ dollars ($___) per year over the 30-year life of the bonds, with all expenditures subject to an independent audit."
AB 713, amending Streets and Highways Code §§2704.13, 2704.16 and §§3, 4 of Chapter 697 of the Statutes of 2002
- Brienne Wesolek
Commencing Civil Action Tolls Period for Demanding Arbitration
Commencing a civil action within the time period set in an arbitration agreement for demanding or initiating arbitration will toll certain time limitations contained in the arbitration agreement. The time in which arbitration may be demanded in such circumstances is extended until 30 days after a final determination by the court that the controversy must be arbitrated or 30 days after the final termination of the civil action, whichever occurs first.
AB 1553, adding Code of Civil Procedure §1281.12
- Clark Thiel
New Playground Safety Standards to Be Developed
The laws governing playground safety standards were repealed effective January 1, 2008, and the Department of Social Services will convene a working group to make recommendations to the Legislature for minimum safety requirements for playgrounds. All public playgrounds installed between December 31, 1999, and January 1, 2004, must conform to the playground standards set by the American Society for Testing and Materials and the United States Consumer Product Safety Commission.
AB 1144, adding Health and Safety Code §115755
Descendents May Make Recommendations Regarding Treatment of Native American Human Remains
Under existing law, the Native American Heritage Commission is authorized to bring an action to prevent damage to Native American burial grounds or places of worship. Once the commission receives notification of Native American human remains, it must notify the most likely descendents and, with the permission of the landowner, the descendents may inspect the site and recommend the appropriate dignified disposition of human remains and grave goods but must do so within 24 hours of notification by the commission. If the commission is unable to identify the descendents, if the descendents fail to make a recommendation or under other specified circumstances (e.g., parties are unable to reach an agreement), the landowner must re-inter the human remains as specified.
Under the new law: (1) decedents must make recommendations or preferences for treatment of the remains within 48 hours of being granted access to the site; (2) upon discovery of Native American human remains, the landowner must ensure that the immediate vicinity, as defined, is not damaged or disturbed by further development activity until the landowner has conferred in a meaningful and timely manner with the most likely descendents regarding their preferences for culturally appropriate treatment; (3) the parties may mutually agree to extend discussions regarding treatment measures taking into account that additional remains may be located in the project area; (4) each party shall recognize the need for confidentiality of any information provided; (5) any items associated with the human remains that are placed or buried with the remains shall be treated in the same manner as the remains; (6) if the commission is unable to identify a descendent or the descendent fails to make a recommendation or if the dispute resolution process set forth in the law does not resolve the dispute, the landowner shall re-inter the human remains and associated items with dignity on the property in a location not subject to further and future subsurface disturbance and designate or otherwise provide notice as specifically set forth in the new law; and (7) upon the discovery of multiple Native American human remains during a ground disturbing land development activity, the landowner shall confer with the descendents regarding the treatment measures and if there is no agreement, the landowner shall re-inter the remains and any items buried with the remains with dignity following the cultural considerations and notice provisions previously discussed.
AB 2641, amending Public Resources Code §§5097.91, 5097.98
Office of Small Business to Study Cost of State Regulations
One-time legislation appropriates $85,000 to the Office of the Small Business Advocate to commission a study on the costs of state regulations for small businesses, to examine models from other states and to develop alternatives.
AB 232, appropriating general funds
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©2007 Thelen Reid Brown Raysman & Steiner LLP
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