Legislative Update - June 8, 2018

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CEA Article June
Finally, after the cancellation of multiple session dates, Rep. Ryan Smith (R- Bidwell) was elected to serve as Speaker of the House through the end 2018.  Smith was challenged by three other House members for the position.  The contentious election of a new Speaker was needed because the former Speaker resigned amid a possible FBI investigation. Speaker Smith stated after the vote, ”It's certainly been a long journey. I'm looking forward, not looking back. I want to get to working on bills again, and I think that will help bring this divide back together.”  The House now will return to a regular committee and session schedule to address a backlog of pending bills.
 
HB 492 (Gonzales) State Procurement
The bill has had four hearings in the House State and Local Government Committee.  The last hearing was on May 31st. At a prior meeting , a substitute bill was accepted.  The changes eliminated a requirement that each agency set goals for procurement utilizing certified women-owned businesses. HB 492 now creates a program similar to one used in Kentucky in which a certification process would be created by rules promulgated by (the Department of Administrative Services). The goal of the legislation is to get a web-based certification process in place and allow DAS to enter into reciprocal agreements related to the women-owned businesses with other states.
 
HB 554 (Seitz) Design Contracts - To regulate the use of indemnity provisions in professional design contracts related to public improvements – The bill had its third hearing in the House Civil Justice Committee on May 23rd.   The sponsor of the legislation stated.  The intent is “to clarify the indemnity provisions in contracts entered into by professional consulting engineers.”
The bill:
  • Authorizes a public authority to include, in a public improvement contract, a requirement that a professional design firm providing professional design services indemnify the public authority and its officers and employees with regard to liability to a third party stemming from those services.
  • Authorizes a public authority and professional design firm to include, in a public improvement subcontract, a requirement that a professional design subcontractor providing professional design services indemnify the public authority and professional design firm with regard to liability stemming from those services.
  • Stipulates that such a requirement of indemnity is to take no form other than what is prescribed in the bill.
  • Authorizes a public improvement contract to require an insurance policy as a form of indemnification. 
  • Stipulates that the inclusion of such a requirement to indemnify is not to be construed as a waiver of immunity from liability under the Workers' Compensation Law.
  • Stipulates that such indemnification does not extend to liabilities that would otherwise be barred for timeliness. 
Oswald Companies and the American Council of Engineering Companies have testified for the bill.   The chairman has indicated, when someone is voted Speaker and regular meeting schedules take place, this will be a bill that may pass out of committee sooner than later.
 
HB 459 (Henne) Self Insured Employer Groups
On May 23rd, the bill had its third hearing in the House Insurance Committee.  There was opposition testimony. Opponents had questions on the qualification process of self insured employer groups, BWC Administrator controls, and possible state fund concerns - which seem to accompany any BWC modification legislation.  This provided a clearer idea where groups stand. CEA and its lobbying team will be meeting with these groups over the coming the months to discuss possible changes that could be made to the legislation while keeping the intent of the bill.