In his first term, Daly continues to make a strong impact.
Sacramento – Governor Brown recently signed a pair of bills by Assemblymember Tom Daly (D – Anaheim) into law. Daly has now successfully championed eight new laws in his first term.
Assembly Bill 1939 upholds important “prevailing wage” protections for workers. Specifically, the new law allows a contractor to recover wages for its workers when a developer fails to disclose that the project is subject to prevailing wage requirements.
Assembly Bill 2136 modernizes state law to reflect the growing use of technology (especially social media) in real estate transactions. The law exempts short-lived electronic messages from the requirement imposed on real estate brokers to retain specified records for three years from the date of the closing of a transaction.
Both bills will go into effect on January 1, 2015.
The 2013-14 legislative session concludes on August 31, 2014. All bills must be approved and sent to the Governor by that date for signature.
Assembly Bill 1939 – Prevailing Wage
Daly introduced Assembly Bill 1939 in response to a situation in which a private developer took a public subsidy and failed to inform the contractor that the project was thus subject to prevailing wage requirements. As a result, the contractor was unfairly hit with an $8 million penalty by the California Department of Industrial Relations.
Under existing law, contractors are generally required to pay prevailing wages to workers on "public works" projects. In government contracting, a prevailing wage is defined as the hourly wage, benefits and overtime paid to the majority of workers, laborers, and mechanics within a particular area.
Situations sometimes arise in which the contractor was not informed that the project would be a public works project, or a subsequent administrative or court decision classifies the project, as a public work. In such a situation, the contractor may be forced to make up the payment of the difference between the prevailing wages and the wages actually paid, and associated penalties.
“Because developers have no legal obligation to inform contractors of public subsidies, contractors have no way of knowing if prevailing wages are required,” Daly said. “This means that workers may not receive the correct wages until an enforcement action or legal action is taken.
“My bill simply states that if a developer fails to inform a contractor that prevailing wages are required, the developer must reimburse the contractor for unpaid wages and attorney's fees.”
Assembly Bill 2136 – Real Estate Transactions
Assembly Bill 2136 requires that a real estate transaction via electronic communication be reduced to a permanent written format before it is considered an official document by the California Real Estate Bureau.
Existing law requires licensed real estate brokers to retain sales transaction documents for three years. Required documents include copies of all listings, deposit receipts, canceled checks, trust records, and other forms executed by or obtained by a broker.
“Current law pertaining to the retention of documents is out of date and thus problematic for real estate brokers,” Daly said. “Current law fails to reflect modern technology and does not include real estate conversations or transactions taking place via social media. Absent an updating of the law, real estate brokers would be required to preserve printouts of entire conversations via social media as official records.”
“My bill addresses that problem by requiring brokers to reduce such electronic communications to writing, as per practice with other, long-standing types of real estate transactions,” Daly said.
Earlier this year, Governor Brown also signed AB 759 authored by Assemblyman Daly. This bill streamlines state law by exempting alarm companies from locksmith licensing requirements.
“Assembly Bill 759 eliminates the need for dual licensure or the use of an outside professional to install their own technology, which in turn reduces the cost of providing the service to an alarm company’s customers,” Daly said.
Governor Brown signed five Daly bills into law in 2013.
- AB 401: Authorizes regional transportation agencies, as well as the California Department of Transportation (Caltrans), to the use design-build procurements for construction projects on highways and expressways;
- AB 464: Updated and clarified state law regarding vital records (including birth, death, or marriage records);
- AB 493: Permits toll facility operators to implement technologies or business practices that provide for nationwide interoperability of electronic toll collection programs;
- AB 541: Establishes a pilot program for the University of California at Irvine, allowing UCI’s transit buses to advertise on side-mounted, illuminated signs until January 1, 2019;
- AB 1169: Requires escrow agent rating services to comply with portions of the Consumer Credit Reporting Agencies Act.