Bill Text: CA SB615 | 2013-2014 | Regular Session | Amended

California Senate Bill 615 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Public works: prevailing wages.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2014-02-27 - Consideration of Governor's veto stricken from file. [SB615 Detail]

Download: California-2013-SB615-Amended.html

BILL NUMBER: SB 615	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 7, 2013
	AMENDED IN ASSEMBLY  AUGUST 5, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Galgiani

                        FEBRUARY 22, 2013

   An act to  amend Section 15438.7 of the Government Code, and
to  add Section 1720.7 to the Labor Code, relating to public
works  , and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 615, as amended, Galgiani. Public works: prevailing 
wages.   wages: California Health Facilities Financing
Authority Act. 
   Existing law defines "public works," for purposes of regulating
public works contracts, as, among other things, construction,
alteration, demolition, installation, or repair work done under
contract and paid for, in whole or in part, out of public funds.
Existing law further requires that, except as specified, not less
than the general prevailing rate of per diem wages be paid to workers
employed on public works and imposes misdemeanor penalties for a
violation of this requirement.
   This bill would expand the definition of "public works," for the
purposes of provisions relating to the prevailing rate of per diem
wages, to also include any construction, alteration, demolition,
installation, or repair work done under private contract on a
hospital or health care facility project when the project is paid for
in whole or in part with the proceeds of conduit revenue bonds, as
defined, that were issued on or after January 1, 2014.
   Because the violation of prevailing wage requirements when engaged
in these public works projects would result in the imposition of
misdemeanor penalties, this bill would impose a state-mandated local
program. 
   The California Health Facilities Financing Authority Act
authorizes the California Health Facilities Financing Authority
(authority) to make loans from the continuously appropriated
California Health Facilities Financing Authority Fund to
participating health institutions for financing or refinancing the
acquisition, construction, or remodeling of health facilities.
Existing law authorizes the authority to award grants, which are
funded by the California Health Facilities Financing Authority Fund,
to any eligible health facility for purposes of financing projects.
 
   This bill would authorize the authority to award grants to
nonpublic offices providing health care services that are operated by
either a medical group, independent practice association, physician
office, or clinic with more than 10 physicians that has a Medi-Cal or
medically indigent encounter rate of at least 50% of total patients
served in a calendar year, or by a medical practice of 10 or fewer
physicians in which at least 30% of patients served in a calendar
year are enrolled in Medi-Cal.  
   Because the bill would authorize the expenditure of continuously
appropriated funds for new purposes, the bill would make an
appropriation. 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee: yes. State-mandated local program: yes.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 15438.7 of the  
Government Code   is amended to read: 
   15438.7.  (a) The Legislature finds and declares all of the
following:
   (1) There are small health care facilities throughout the state
that are in critical need of capital improvements to continue to
provide quality health care services.
   (2) Some of these facilities currently lack the ability to take on
debt and have little access to capital.
   (3) This lack of access to capital threatens the quality and
accessibility of the services provided by health care facilities and
hampers their ability to gain the financial strength to better access
the capital markets.
   (4) The state's health care system is reliant upon those health
care facilities that treat low-income, uninsured, or vulnerable
populations, such as the developmentally disabled, the elderly, the
mentally ill, emotionally disturbed children, and the chemically
dependent.
   (5) The grant program provided in this section is in the public
interest, serves a public purpose, and will promote the health,
welfare, and safety of the citizens of the state.
   (b)  (1)    The authority may award grants to
any eligible health facility, as defined in subdivision (d) of
Section 15432 for purposes of financing projects, as defined in
subdivision (f) of Section 15432. 
   (2) For purposes of paragraph (1), an "eligible health facility"
also includes a nonpublic office providing health care services that
is operated by either of the following:  
   (A) A medical group, independent practice association, physician
office, or clinic with more than 10 physicians that has a Medi-Cal or
medically indigent encounter rate of at least 50 percent of total
patients served in a calendar year, based on claims or encounter
data.  
   (B) A medical practice of 10 or fewer physicians in which at least
30 percent of patients served in a calendar year are enrolled in
Medi-Cal. 
   (c) The authority shall develop selection criteria and a process
for awarding grants under this section. When developing the selection
criteria for the awarding of grants under this section, the
authority shall take into consideration all of the following factors:

   (1) The need for the grant based on the applicant's total net
assets.
   (2) Whether the grant will leverage additional dollars to complete
the project.
   (3) The importance and level of services to vulnerable populations
that will be generated.
   (4) The level of access to capital by the applicant.
   (5) Demonstration by the applicant of project readiness and
feasibility.
   (6) Total dollars available for purposes of this section.
   (d) It is the intent of the Legislature to assist those small
health facilities that have demonstrated superior management but
little to no access to capital and whose services are threatened by a
critical need for capital improvements.
   (e) In no event shall a grant to finance a project exceed the
total cost of the project, as determined by the health facility and
approved by the authority. Grants shall be awarded only to facilities
that have certified to the authority that all requirements
established by the authority for grantees have been met.
   (f) All projects that are awarded grants shall be completed within
a reasonable period of time, to be determined by the authority. No
funds shall be released by the authority until the applicant
demonstrates project readiness to the authority's satisfaction. If
the authority determines that the health facility has failed to
complete the project under the terms specified in awarding the grant,
the authority may require remedies, including the return of all or a
portion of the grant. Certification of project completion shall be
submitted to the authority by any health facility receiving a grant
under this section.
   (g) Subject to subdivision (h), grants to be awarded under this
section shall be financed by funds from the California Health
Facilities Authority Fund.
   (h) Grants shall only be available pursuant to this section if the
authority determines that it has sufficient moneys available in the
California Health Facilities Authority Fund. Nothing in this section
shall require the authority to award grants if the authority
determines that it has insufficient moneys available in the
California Health Facilities Authority Fund to award grants.
   (i) The authority may annually determine the amount available for
purposes of this section.
   SECTION 1.   SEC. 2.   Section 1720.7 is
added to the Labor Code, to read:
   1720.7.  For the limited purposes of Article 2 (commencing with
Section 1770) of this chapter, "public work" also means any
construction, alteration, demolition, installation, or repair work
done under private contract on a hospital or health care facility
project when the project is paid for in whole or in part with the
proceeds of conduit revenue bonds, as defined in Section 5870 of the
Government Code, issued on or after January 1, 2014, by a public
agency.
   SEC. 2.   SEC. 3.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.