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HomeMy WebLinkAboutSweeney 7-26 agenda itemO ~ - O O G 0 0 - :. _ ~ ~- o NTEROFFICE EMORANDU °- -~ ° couN~~t ADMINISTRATIVE OFFICE To: Board of Supervisors; Paul Hahn, Tim Snellings f PHONE: 530-53$-7631 Fes: 530-538-7120 From: Kathleen Maghannam, Assistant Cleric of the Board ~' Subject: Correspondence from Kevin J. Sweeney re: "Undergr nd Economy Coalition" Da#e: July 14, 2x11 Attached is correspondence from Kevin J. Sweeney reciuesting an item on the July 26 Board agenda. This item will be on the 7126 agenda. It is scheduled as a timed item at 9:30. ff~ min ~ envy 2t! 1na~~pe~c8erace Cire9e ®Cl~ieo, CA 95973 ®(53i~) 893- 1515 ®~'ax: (53ED) 893-8231 July 6, 2011 SOARD OF'S~~'ERVlSOF2S 1U~ ~ ~ 2~~1 Maureen Kirk, Supervisor BUTTE COUNTY BOARD OF SUPERVISORS ~OVfLLE, CRLIF~RNlA 196 Memorial Way Chico, CA 95926 Re: Our Clients: PoolBuildcrs, Inc. and Northwest Pools Subject: Pilot Program far C~39 and G53 Contractors Dear Supervisor Kirk: My clients hereby request that they, as members of the "Underground Economy Coalition", be placed on the agenda for the July 26, 2011 meeting of the Butte County Board of Supervisors to request of the Board consideration of a Pilot program which would establish the following: 1. Any Owner/Builder engaging in construction which involves a work of improvement normally associated with the C-39 (Roofing) and/or C-53 (Swimming Pool Construction) disciplines pursuant to which the Owner/Builder wi1I hire employees would be required to have a valid Worker's Compensation insurance policy in force and effect and provide proof of said coverage to the Butte County Departrrient of Development prior to and as a prerequisite for said department issuing a permit for the construction. The proof of coverage shall also be placed with the permit card to be displayed as required by Butte County Ordinance. 2. That a permit fee of$100 be instituted for awork ofimprovement to re-plaster or otherwise renovate or remodel any existing swimming pool so as to allow for an inspection of said work prior to the plaster being applied. Thank you for your consideration o£ these matters. Very SLAW O~'IC OF KEVIN J. SWEENEY ~'~~. Enclosures .. We Support the Propositions of Construction Enforcement - To Level the Playing Field January 14, 2011 The Honorable Edmund G, (Jerry) Brown Governor of California State Capitol, Suite 1173 Sacramento, CA 95814 Subject: Construction enforcement -level the playing field Dear Governor Brown: This is a fallow-up to a Fetter we sent you, dated December 17, 2010, We are a growing coalition of businesses, associations, and labor representatives, focused on effective but fair enforcement of key California Paws and regulations regarding construction. The goal is to provide public protection and level the playing field for law-abiding construction contractors. We respectfully request a summit meeting with you and your affected cabinet members, agency heads and key staff to discuss this matter at your earliest convenience. According to the Department of Labor and Workforce Development (DLWD), since early 2006 the construction industry has lost over 415,000 jobs in Califomia. We are currently researching how much the California state general fund loses in revenue annually due to construction contractors not adequately paying the required wages, taxes, and other fees to operate in the state; but we are certain the amount is significant. Estimates are in the billions of dollars. Law-abiding construction contractors (signatory and non-signatory) are losing bids to companies cheating the system. We look forward to the leadership of Secretary Marty Morgenstern (DLWD} and we appreciate the efforts of Undersecretary Doug Hoffner (DLWD}, and staff who have championed this issue and we believe a sincere and concentrated effort must be maintained to address this problem. Every day that we wait, qualifed construction contractors go out of business, their employees lose decent paying jobs, worksite safety worsens and the public is at greater risk due to shoddy construction, leaving the cheaters to rule. Our coalition is appreciative of the attention that California State agencies have provided and we look forward to a continued partnership with them to further address the problem. The following propositions are a foundation of our enforcement viewpoints: 1. Flagrant Violators operate in many areas of construction in California, and it will take a variety of comprehensive strategies to effectively enforce all these areas. 2. Consideration should be given to appoint someone to oversee construction enforcement between the various state agencies. Someone such as the Deputy Secretary for Labor Standards and Wages could have appropriate authority to coordinate between the various enforcing agencies. With more interagency cooperation, there would be much mare efF~ciency utilizing state resources to track down contractors who are typically in violation of laws that encompass more than one agency. By all agencies making a claim against a flagrant violator, we would hope for results that either bring that violator into compliance, or force them out of business. 3. There are specific regulations and laws that protect employees, which must be effectively enforced. These include complying with wage and hour laws, providing workers' compensation coverage and paying the appropriate amount for that coverage, being properly licensed and/or utilizing legitimate subcontractors, complying with prevailing wage provisions; and providing Cal/4SHA mandated safety protections. Contact: Brad Diede; CAi.pASC, (916) 973-2925; ixliedeCa~calpasc.orc~ page 1 of 4 We Support the Propositions of Construction Enforcement - To Level the Playing Field 4. Enforcement agencies in California need to focus on those employers who aonsistentiy and flagrantly violate these important regulations and laws. 5. There are two types of flagrant violators. a. One is in the so called "underground economy". These employers are often unlicensed, do not provide workers' compensation coverage, pay cash to employees, and fail to follow Cal/OSHA safety regulations. b. The other type is in the "semi-underground economy". These employers in construction disguise themselves by being licensed, and have a certificate of workers' compensation coverage. They violate important laws by utilizing unlicensed subcontractors, or subcontractors who may be licensed but have no workers' compensation coverage for their employees. They also often pay half cash, avoid Cal/OSHA safety regulations such as fall protection or trench protection, commit workers' compensation premium and payroll fraud; and misclassify employees or otherwise falsify records on prevailing wage jobs. 6. The Economic Employment Enforcement Coalition (EEEC) has made strong inroads into the "underground eanomy". We believe these efforts should continue. We also believe, however, that, the Joint Enforcement Strike Force (JEST as defrned by Unemployment Insurance Code Section 3~9 needs a more focused approach by participating state agencies to a) impact the "semi-underground ewnomy,"and, b) pay more attention towards the construction industry. 7. In order to maximize the efficiency of California enforcement agencies, they should focus on flagrant violators, whether they are part of the "underground" or "semi-underground" economy. In instances where good employers are working hard to be incompliance with regulations and laws, the inspecting agency should spend little time and resources. 8. It would be more cost effective to have the resources of these agencies focus an inspections and follow through of flagrant violators. The Cal/O5HA Consultation Services is one example of an appropriate use of consultation efforts versus enforcement; but major efforts still need to be made in enforcing against the flagrant violators. 9. Construction should receive a commensurate amount of enforcement resources. 10. Focused enforcement efforts are needed to enforce current laws, rather than automatically creating additional regulations and laws in California. 11. Underground contractors have become safe haven far many unscrupulous people to work, e.g. "deadbeat parents" and those who prey on unsuspecting victims like the elderly, and others trying to escape the law. Focused enforcement will expose and catch criminals. In summary, the urgency of this issue cannot be overstated. The recession in construction has created much greater incentive for cheating in Construction and legitimate construction employers are on the ropes. The state must continue to try and make a dramatic impact in construction enforcement right now. Please help us level the playing field. We respectfully look forward to faintly conducting this construction summit as soon as possible. We recognize the strains an your time; however, our mutual needs are so urgent that time is of the essence. Thank you for your consideration. Sincerely, Please see tfre aftached list of coalition partners: Contact: Brad i]iede; CALPASC, (416) 973-2925; bdiede cal asc.or Page 2 of 4 We Support the Propositions of Construction Enforcement _ To Level the Playing Field Our sectors and industries represent thousands of cr~mpanies and employees making up the California economy who will 6e irrepara6/y harmed if contractors who flagrantly violate the laws are not stopped. L' of Coalitio Panne s 1F 4 12 11 California Professional Association of Specialty Contractors California Spa and Pool Industry Education Council California Association of Shit Metal and Air Conditioning Contractors Western Electrical Contractors Association California Fire Training Alliance Northern California Contractors Association Roofing Contractors Association of California California Painting and Decorating Contractors Association of California California Framing Carttractors Association Plumbing Heating and Coaling Contractors of California Engineering Contractors' Association Morin Builders' Association California Fence Contractors Association Flasher/Barricade Association California Chapter of the American Fence Association Associated Roofing Contractors of Bay Area Counties union Roofing Contractors Association Air Conditioning Trade Association National Association of the Remodeling Industry of Greater Sacramento American Subcontractors Association of California California Landscape Contractors Association Roofing Contractors Association of Southern California Institute of Heating & Air Conditioning Industries, Inc. California Conference of Mason Contractor Associations, Inc. Associated Tile Contractors of Northern California Northern California Electrical Construction Industry - LMCT Sacramento Regional Builders Exchange Northern California Painting and Finishing Contractors Association Northern California Glass Management Association National Association of the Remodeling Industry of San Diego Pacific Rim Drywall Association California Landscape & Irrigation Council, Tnc. Northern California Carpenters Regional Council Desert Contractors' Association California Sign Association Valley Contractors Exchange Golden State Builders Exchanges National Plasterers Council Most Wanted Deadbeats National Electrical Contractors Association Northern California Chapter Northern California Tle Industry Labor Management Cooperation Committee (NCTI LMCC) National Association of the Remodeling Industry Silicon Valley Chapter Associated Builders and Contractors of California Independent Roofing Contractors of California, Inc. California American Fire Sprinkler Association Contact: Brad Diede; G4LPASC, (916) 973-2925; Exiiede cal asc.or Page 3 of 4 We Support the Propositions of Construction Enforcement - To Level the Playing Field CA L PAS C ~ ~ ~ T z ~ ~,o, CAl SMACNA CFTC ~~ dNF11HMillreFhAOi ilhaAtq~ r~ FWSHER BARRICADE ASSOCIATION CFCA "~' (~_,[n...,[. Feaee eoul[aclonewoeEaN~ .~ NARK 1Ali[S`µ MSf,CIA{IUV,II TI I[ fJ a501[3S{h'~.Iti EKlyl 6Y GAFATCR SACRAhtE.NTO C H A P T E (~ r~ 4s AFA ~rli URCA Unian Roofing ConElxciors Assoclaiian ~o~AZ„~ opt Cd ~~.~~~, (~ r^ aovocATa_ ~. 2~ (""'7.i\~~y~ LEGISLATE. :n ~pp//*J jjjJtJJ //~ EDUCATE. OItGANErED ~ CaFifomia Spa and Poo! Intluslry Education CounciS 6. ]904 ,~o Pme .I[IR P~1 O,.nen and rrornurxul. saxes tsr~ o ~ „ ~~1~,pERS ,ggspC s ',~ ,~~ , ~- ~~; ,rte ''~: ~ ~ -~. ~, ,' 'can: _~ Piu1116ing-heating-Caotillg Cwlit~acttlrs association of Califnraia ~_f': ~~ ~Heel.elar er G~womta . +~ IHACN'~~~ ''"ti .a. { ~ i:~ xt ~ ~~ oY 1110 GAY .,HC4 COUHT~CG.I S `~~~a~FQ ROUFiNG Gp~~' ~[ ~ California °" ~ " ~~ ~~~, ~-~ Landscape C C G A ~ m~ Contractors ALiFORN1ACONit=~RENCE ~ ' Association . oFt~caa~TRACroR ~~ ~~ ~~d~d~~['Tl~ ,,. ~ A^~,SpCEAT1dNS, [NG. ~ I °4xs [° ~ ppy~~} ~ xax:uetwcu~°wctA D®sYll ~~~~ CAnPEIiTEnS COn~aet valley ~ N A R I- AECIU7IAI.C~°17ii47L h.l{b.`'N w51OC1ATlOSi OF Ass©c~adnn contractors n¢wsAOO[un+clnnusl><v NlrelOCa[1NttYtOCA1 ~a~Oflli~$~tIp1550Ga1P1}El exchange SAN p I ti G 0 [wtilnz ..afnxu+nsnurux C N_A.__C....T.. ~ R ... -. . CSU[~ISR\fi Fj~i EN STAB gatioeal llasterers ~ ~ ;~' _ ~~, NAR~~ ~~~ **** ~ ~ rr ., Y s~ ~I .{ r~rr~ NEC ~ s . a~ u.~~~,K~~.,,~ ~1 C c u~`'/~ '~ S 51 [I~uX Vnt ~lY s4~ GRiIXCAMIr\i~ C V 0 N C 1 L ,w:ox.atun.rc.cw.,.+ca.,.,[oo.swi. Z~. .~` f. ti._A..f'.T....E R N°RTNEHN WLtF°RNIA CNAPiER ~a,~,.l [. ~~~ ~~~ -- At,aeel,tsd ewm..a _ ataa Contr.ete.~ of --_ Call~omia ~nfketcdto ym+tmu+g Zile irtGae fs of union frumin~ cant[vrtara.. ' Contact: Brad Diede; CALPASC, (916) 973-2925; bdiedeCacalQasc_org Page4of4 -~ , e' F .a1^-~' .i i ~~av~na T~e~c ., ~~=~wL "'"~ ~---~ Cakifornia Professional Associations of Specialty Contractors ~ ~ ~, ~~ ~ 3636 American River t7rive, Second Floor :~~e ~` ~ __. - - - Sacramento, CA 95864 ai %~aL;G,~j~~ 916-609-8407 I caipasc.org