September 29, 2015
The Honorable Edmund G. Brown Jr.
Governor of California
State Capitol Building, 1st Floor
Sacramento, CA 95814
RE: Veto AB 219 (Daly)
Dear Governor Brown:
This letter is to convey Inland Action’s opposition to AB 219 (Daly) and to urge that you veto this bill. Inland Action is a non-profit organization of business and community leaders formed in 1962 and dedicated to the economic and community betterment of the Southern California region. AB 219 would apply prevailing wage to ready mixed concrete delivery and, consequently, pose profound changes on the industry.
Federal and State law is clear that delivery of materials from independent sources is not subject to prevailing wage. AB 219 does not address an identified problem. Concrete is primarily delivered from local plants that are independent of a construction project. There have been no reports of abuse or significant problems in this industry.
Driving and construction are two different trades. Drivers deliver — construction workers place, finish, and test the concrete. AB 219 will add a significant administrative burden. It will be complex for a business that makes hundreds of deliveries with many drivers, for both public and private projects each day. It could result in as much as 10,000 reports each week. The bill also adds payroll requirements not found elsewhere in law. By making producers “subcontractors,” it will mean a dual classification for public or private work with new legal obligations. Due to the number of projects that are supplied, it adds considerable requirements and significant costs.
Caltrans estimates additional costs of up to $42 million annually, including the need for 28 additional staff, if AB 219 is signed into law. Local governments and schools will have additional costs as well.
Requiring prevailing wage to one specific industry (ready mixed concrete delivery) is inequitable and will result in unknown impacts. For these reasons, we urge that you veto AB 219.