ARTICLE
By Felipe Fuentes, AGC Legislative Advocate - Published in Monday Morning Quarterback - January 8, 2024 The legislature wrapped up the first year of the 2023-24 legislative session on September 14, sending the Governor 1,046 bills for his consideration. With a deadline of October 14, the Governor signed 890 bills and vetoed 156 bills. Averaging a veto rate of 15% over the past couple of years, those bills signed by Governor Newsom went into effect on January 1, 2024. For the most part, the contractor community was largely spared of increases to liability other than those larger overarching bills that struck against the employer community as a whole. The list below highlights a few of the laws that have a positive effect on our industry in the area of housing, progressive design-build, and road safety. HOUSING AB 1490 (Lee) Under this bill, a housing development that is, among other requirements, an extremely affordable adaptive reuse project on an infill parcel that is not located on or adjoined to a site where more than 1/3 of the square footage on the site is dedicated to industrial use would be an allowable use. Chapter 764, Statutes of 2023 SB 4 (Wiener) This bill will require that a housing development project be a use by right upon the request of an applicant who submits an application for streamlined approval, on any land owned by an independent institution of higher education or religious institution on or before January 1, 2024. The development must satisfy specified affordability criteria, including that the development is not adjoined to any site where more than 1/3 of the square footage on the site is dedicated to industrial use. Prevailing wages would be required, and certain exceptions are provided if a project labor agreement is in place. Chapter 771, Statutes of 2023 SB 423 (Wiener) The bill would extend the operation of the streamlined, ministerial approval process for affordable multifamily housing development (i.e. Planning and Zoning Law ) to January 1, 2036. The bill would provide that the approval process does not apply to applications for developments proposed on sites that are located within an equine or equestrian district. The bill would require a development proponent to certify to the local government that certain wage and labor standards will be met, including a requirement that all construction workers be paid at least the general prevailing rate of wages. For any project over 85 feet in height above grade, skilled and trained workforce provisions would apply. Chapter 778, Statutes of 2023 DESIGN-BUILD AB 334 (Rubio) This bill would establish that an independent contractor is not an officer for purposes of being subject to the prohibition of being financially interested in a contract. The bill would authorize a public agency to enter a contract with an independent contractor who is an officer for a later phase of the same project if the independent contractor did not engage in or advise on, as specified, the making of the subsequent contract. Chapter 263, Statutes of 2023 AB 400 (Rubio) Existing law authorizes a local agency, as defined, with approval of its governing body, to procure design-build contracts for public works projects in excess of $1,000,000, awarding the contract either to the lowest bid or the best value. This bill will expand the definition of “local agency” to include any joint powers authority responsible for the construction of transit projects, thereby authorizing additional joint powers authorities to use the design-build procurement process. Chapter 201, Statutes of 2023 SB 617 (Newman) This bill, until January 1, 2029, would authorize a transit district, municipal operator, consolidated agency, joint powers authority, regional transportation agency, or local or regional agency, as described, to use the progressive design-build process for up to 10 public works projects of more than $5,000,000 for each project. Chapter 310, Statutes of 2023 SB 706 (Caballero) This bill would, until January 1, 2030, provide additional authority for cities, counties, cities, and counties, or special districts to use the progressive design-build process for up to 10 public works more than $5,000,000, not limited to water-related projects, excluding projects on state-owned or state-operated facilities. Chapter 500, Statutes of 2023 ROAD SAFETY AB 645 (Friedman) This bill will authorize, until January 1, 2032, the Cities of Los Angeles, San Jose, Oakland, Glendale, and Long Beach, and the City and County of San Francisco to establish a Speed Safety System Pilot Program. Chapter 808, Statutes of 2023 AB 752 (Rubio) Existing law requires the Department of Transportation (DOT) to provide compensation to contractors for the use of a safety device where the updated guidance allows. Current law does not require the optional safety device when requested by a contractor on a public works project. This bill would specify that the department is only required to compensate for an optional safety device requested for use on a public works project of the department. The bill would further require the department to prescribe standards and specifications to require the appropriate use of positive protection on all covered activities on the state highway system, as specified. Chapter 813, Statutes of 2023.
By Felipe Fuentes, AGC Legislative Advocate - Published in Monday Morning Quarterback - January 8, 2024
The legislature wrapped up the first year of the 2023-24 legislative session on September 14, sending the Governor 1,046 bills for his consideration. With a deadline of October 14, the Governor signed 890 bills and vetoed 156 bills. Averaging a veto rate of 15% over the past couple of years, those bills signed by Governor Newsom went into effect on January 1, 2024.
For the most part, the contractor community was largely spared of increases to liability other than those larger overarching bills that struck against the employer community as a whole. The list below highlights a few of the laws that have a positive effect on our industry in the area of housing, progressive design-build, and road safety. HOUSING AB 1490 (Lee) Under this bill, a housing development that is, among other requirements, an extremely affordable adaptive reuse project on an infill parcel that is not located on or adjoined to a site where more than 1/3 of the square footage on the site is dedicated to industrial use would be an allowable use. Chapter 764, Statutes of 2023 SB 4 (Wiener) This bill will require that a housing development project be a use by right upon the request of an applicant who submits an application for streamlined approval, on any land owned by an independent institution of higher education or religious institution on or before January 1, 2024. The development must satisfy specified affordability criteria, including that the development is not adjoined to any site where more than 1/3 of the square footage on the site is dedicated to industrial use. Prevailing wages would be required, and certain exceptions are provided if a project labor agreement is in place. Chapter 771, Statutes of 2023
SB 423 (Wiener) The bill would extend the operation of the streamlined, ministerial approval process for affordable multifamily housing development (i.e. Planning and Zoning Law ) to January 1, 2036. The bill would provide that the approval process does not apply to applications for developments proposed on sites that are located within an equine or equestrian district. The bill would require a development proponent to certify to the local government that certain wage and labor standards will be met, including a requirement that all construction workers be paid at least the general prevailing rate of wages. For any project over 85 feet in height above grade, skilled and trained workforce provisions would apply. Chapter 778, Statutes of 2023
DESIGN-BUILD AB 334 (Rubio) This bill would establish that an independent contractor is not an officer for purposes of being subject to the prohibition of being financially interested in a contract. The bill would authorize a public agency to enter a contract with an independent contractor who is an officer for a later phase of the same project if the independent contractor did not engage in or advise on, as specified, the making of the subsequent contract. Chapter 263, Statutes of 2023 AB 400 (Rubio) Existing law authorizes a local agency, as defined, with approval of its governing body, to procure design-build contracts for public works projects in excess of $1,000,000, awarding the contract either to the lowest bid or the best value. This bill will expand the definition of “local agency” to include any joint powers authority responsible for the construction of transit projects, thereby authorizing additional joint powers authorities to use the design-build procurement process. Chapter 201, Statutes of 2023
SB 617 (Newman) This bill, until January 1, 2029, would authorize a transit district, municipal operator, consolidated agency, joint powers authority, regional transportation agency, or local or regional agency, as described, to use the progressive design-build process for up to 10 public works projects of more than $5,000,000 for each project. Chapter 310, Statutes of 2023 SB 706 (Caballero) This bill would, until January 1, 2030, provide additional authority for cities, counties, cities, and counties, or special districts to use the progressive design-build process for up to 10 public works more than $5,000,000, not limited to water-related projects, excluding projects on state-owned or state-operated facilities. Chapter 500, Statutes of 2023
ROAD SAFETY AB 645 (Friedman) This bill will authorize, until January 1, 2032, the Cities of Los Angeles, San Jose, Oakland, Glendale, and Long Beach, and the City and County of San Francisco to establish a Speed Safety System Pilot Program. Chapter 808, Statutes of 2023 AB 752 (Rubio) Existing law requires the Department of Transportation (DOT) to provide compensation to contractors for the use of a safety device where the updated guidance allows. Current law does not require the optional safety device when requested by a contractor on a public works project. This bill would specify that the department is only required to compensate for an optional safety device requested for use on a public works project of the department. The bill would further require the department to prescribe standards and specifications to require the appropriate use of positive protection on all covered activities on the state highway system, as specified. Chapter 813, Statutes of 2023.