Assembly Standing Committee on Transportation

We will allow two minutes each for two primary witnesses in support and opposition, and these witnesses must testify in person in the hearing room. Additional witness comments will be limited to your name, organization and position, and they can be either in person or on the telephone. We will start with those Members of the public who are here in the room, then move to a blended phone line to use our telephone service. The number to call is 877-692-8957 and the access code is 1850 1100.

Finally, the Assembly has experienced a number of disruptions to Committee and floor proceedings in the last few years. If you do anything to disrupt the meeting, speak on items that are not on the agenda, talk loud, be rude or threatening. We will warn you and then ask you to leave the building. Thanks for your cooperation. With that, we're going to begin our hearing. Do we have a quorum?

Okay, so when we have a quorum present, we will call the roll at that point and take votes at that time. First bill to be heard is SB 145. Mr. Newman. Oh, but I think we now have a quorum, so if we could call roll, that would be great.

Friedman? Here. Friedman, here. Fong? Fong, here. Berman? Carrillo? Carrillo? Here. Carrillo, here. Davies? Gibson? Here. Gibson, here. Hart? Jackson? Jackson, here. Kalra? Lowenthal? Lowenthal, here. Nguyen? Sanchez? Sanchez, here. Wallace? Wallace, here. Ward? Wicks?

And I will note for Members that we have a representative from the Administration, Danny Yost is at the table to answer any technical questions. Senator, you may proceed when you're ready.

And thank you. Good morning, Madam Chair and Members. Thank you for the opportunity to present SB 145. This bill includes two proposals from the Governor's infrastructure package impacting the Department of Transportation, also known as Caltrans. First, SB 145 implements several recommendations of the AB 1282 Transportation Permitting Task Force Report to accelerate environmental mitigation for transportation projects, which can often be a time intensive process laden with many administrative barriers.

As you know, delays in procuring mitigation tools may not only increase project costs, but delay construction, which can lead to negative economic, environmental and community impacts while leaving the underlying transportation needs unresolved. This bill will streamline the implementation of environmental mitigation measures for the efficient delivery of Caltrans projects, while at the same time maintaining the kinds of strong protections for habitat mitigation for which California is renowned and about which we should be justifiably proud.

Second, SB 145 will authorize Caltrans to enter into an enforceable contract with Brightline West for the construction of three wildlife crossings across Interstate 15 as part of the Brightline West high speed rail project, which will move passengers between Southern California and Nevada. In February 2023, Caltrans, the California Department of Fish and Wildlife and Brightline West announced an agreement to design and construct three priority wildlife overcrossings across I 15 and the future Brightline West high speed rail system, which, when constructed, will run along its median.

These dedicated overcrossings will provide a safe and sustainable route for indigenous wildlife, including bighorn sheep, to safely transit the existing highway and the future high speed rail system running within the I 15 median. The Department of Fish and Wildlife has identified these wildlife crossings as priority projects. Brightline west has applied for federal rail funding under the Infrastructure Investment and Jobs Act, also known as the IIJA.

In a typical transportation project, Caltrans could enter into a cooperative agreement with another public agency to partner on project delivery and funding. In the case of this project, however, Caltrans lacks sufficient statutory authority to enter into a direct agreement with a private entity, in this case Brightline West, to complete the wildlife crossings using state funds. Caltrans is understandably concerned that the Brightline West and Wildlife Crossing projects, if done separately and concurrently, are likely to create conflicts and trigger delays, claims and increased costs for both projects.

Alternatively, if the construction of the wildlife crossings winds up being done after the Brightline West project, this would create significant challenges and likely stoppages in passenger rail service during the construction. SB 145, when passed, will provide for mutually beneficial collaboration between the state and this vital high speed rail project. SB 145 will also save time and create substantial savings to taxpayers by allowing one entity to manage the construction and delivery of these wildlife crossings concurrently with the construction and delivery of the railway.

Altogether, SB 145 offers two important streamlining proposals for state transportation projects, which will allow California to be competitive for federal dollars, while also making clear the state remains committed to the highest standards of environmental protection. With me today to answer any questions the committee may have is Mr. Danny Yost, Assistant Deputy Director at Caltrans. I am respectfully asking for your aye vote today.

Okay, we have a motion and a second. Do we have any witnesses in support?

Danny Yost, your legislative Director for Caltrans. And just want to note this is very meaningful for transportation and environmental conservation related to transportation projects. Thank you.

Madam Chair. Member Scott Wetch on behalf of the State Association of Electrical Workers and the Metropolitan Transportation Commission. In support.

Madam Chair Neal Desai with the National Parks Conservation Association and also the Defenders of Wildlife and don't have a support position, but support if certain changes are made to ensure that the intent that the author has stated is effectuated, which is these crossings actually happen when the rail construction is occurring. And that currently doesn't exist in the language. I think all parties agree. And so we would ask for your requesting the Administration commit to cleaning up this language so we can just permanently resolve this issue. So if you could do that today, that'd be very helpful. Thank you very much.

Thank you. I'd like to ask the Administration to respond because we have heard that as a concern.

Absolutely. Certainly Caltrans is committed to building these wildlife crossings and this language is really needed in order for us to enter into a contract with Brightline West so that they can actually have a binding commitment to provide these crossings. And so with that, we have funding lined up for these crossings and we're committed to delivering them.

Right. So will there be an assurance in the Brightline contract then, rather than the bill that guarantees that the crossings will be built? Absolutely.

Absolutely. Once we are able to enter into an agreement with Brightline West, we will have an enforceable commitment for them to deliver these wildlife crossings as part of their railway project, which will really save the state taxpayer and save from any conflicts, as the senators mentioned.

Okay, thank you. Is there anyone else in the room wishing to testify in support? Is there anyone in the room wishing to testify in opposition? Okay, then we'll go to the phone lines. Operator, if you could please open up the phone lines for SB 145 for support and opposition.

Madam Chair. As she stated, if you're in support or opposition to SB 145, please press one followed by zero. One followed by zero. And one moment. We have a couple queuing up, should be with us momentarily when they get their line number. Anybody else, please go ahead and hit one followed by zero. And line twelve, please go ahead. Good morning, Madam Chair.

Good morning, Madam Chair. Chris Wilson with the Los Angeles County Business Federation, also with the Bay Area Council and New California Coalition in support of SB 145. Thank you.

Let's give one more reminder. One followed by zero. If you're in support or opposition to SB 145, line 13, please go ahead.

Chair, and represent Transportation California. We strongly support this measure. We think the language is appropriate and allows the Administration to ensure the wildlife thank you very much.

Yeah, and just for witnesses, we're just taking name and whether you support or don't support.

And Madam Chair, we have one more queuing up. Give us a moment. While they get their line number, please. And we're going to go to line 15. Please go ahead.

Chair Members, Adam Harper with the California Construction and Industrial Materials Association in support.

And we have cleared the queue. Thank you.

Thank you. Let's go back to the committee for any comments, questions. Carrillo?

Thank you. Madam Chair, I just want to express one more time how excited I am about this project. I think that it will really benefit the entire state. I'm excited about the private investment coming into the state and the system that is going to be phenomenal, in my personal experience. I know that there was language that made it a little bit confusing, and you addressed that. Thank you for doing that. The witness in support.

I believe that the bill will help pave the way for the project to become a reality by addressing the need for wildlife crossing along the Interstate 15. And you address that. Can you explain or is there a process in place at this time as to how that is going to work as far as building those wildlife crossings? Or is that something that you will still be working on? Is it part of the design build process that is part of the build package?

Thank you for that question. So the process is that we will enter into an agreement with Brightline West, per the MOU we already have with the California Department of Fish and Wildlife and Brightline West and Caltrans. Per that agreement, we will be building the wildlife crossings with Brightline West. Brightline west will actually be designing and delivering the project, and so they will use their ability to contract out and incorporate the wildlife crossings as part of their railway project.

So it wouldn't necessarily use our progressive design build authority and the pilot that's before you in another build today, but it would certainly accelerate the delivery of those projects along with the railway.

Okay. Do you think there is a reason why the crossing wouldn't be built at the same time as a rail project?

No, absolutely not. That's actually part of the agreement. The MOU that we've already signed and the agreement that you would be authorizing today for us to enter into would make an enforceable commitment for Brightland West to deliver the wildlife crossings as part of their railway project.

Okay, so just to be clear, it will be built at the same time?

Exactly.

Appreciate that. Thank you. Thank you, Madam Chair.

Thank you. Anyone else? Well, I am very happy to see this bill come forward. Very proud to have my name on it. Very supportive of the Brightline West project. Looking forward to taking that train at some point. It's going to be a huge benefit for traffic congestion relief. It's a huge benefit for public safety and certainly will create a lot of really good jobs and the wildlife connectivity piece of it.

And adding these crossings will solve what's already a problem, which is the lack of ability for animals to go across the highway. One thing that I would add, and we'll be writing a letter probably to the journal, is expressing our very strong desire that the crossings be built as part of the project and not after the project is completed and making sure that we make sure that that is done.

Because if you're really going to mitigate the impacts, you want to do it at the same time. So certainly I'm looking forward to seeing this go forward. I appreciate the Administration bringing this forward and helping move this project. I appreciate the author. We have a motion and a second. Can we have a roll call, please?

SB 145. It's due pass. Friedman? Aye. Friedman aye. Fong? Aye. Fong aye. Berman? Aye. Berman aye. Carrillo? Aye. Carrillo aye. Davies? Gibson? Aye. Gibson aye. Hart? Jackson? Aye. Jackson aye. Kalra? Lowenthal? Aye. Lowenthal aye. Nguyen? Aye. Nguyen aye. Sanchez? Aye. Sanchez aye. Wallace? Aye. Wallace aye. Ward? Wicks?

Okay, ten to zero. We'll leave the roll open. That bill is out.

Thank you, members.

Thank you. Do I see Senator Gonzalez? Yes.

Okay, then we're going to hear SB 146 next. You may proceed when you are ready. Welcome, Madam Chair.

Thank you, Madam Chair and Members. I'm here to present SB 146, which will expedite and streamline the delivery of critical infrastructure projects across the state, which will allow California to leverage billions of federal dollars. SB 146 has three main components. It first authorizes Caltrans and Department of Water Resources to use progressive design build for certain public works projects until 2033. Two, it authorizes Caltrans to utilize job order contracting for routine highway maintenance and safety projects.

And thirdly, it extends the Secretary of Transportation's Preexisting Authority to assume NEPA responsibilities for rail, public transportation, or multimodal projects to January 2034 and expands the authorization to include local projects. So what does this all mean? So, SB 146 JOC provisions will expedite short duration repetitive maintenance projects, such as repairing and renovating existing facilities by streamlining their procurement process, which will help improve the state's roads and highways.

SB 146 will also authorize Caltrans and DWR to utilize a progressive design build for eight projects greater than 25 million in value and provide certain standards and conditions. It also requires a report back to the Legislature by 2034 to assess the effectiveness of the progressive design build project delivery method relative to project cost and time savings. As well as it is important to note that DWR's progressive design build authority does not apply to the Delta Tunnel project or seawater desal projects.

Lastly, SB 146 extends the state's responsibility to enforce NEPA on behalf of the federal government to expedite environmental review while not compromising the safety of our environmental standards and values. California has assumed NEPA responsibilities before, and it has proven effective in the planning of our roads, rail and public transit projects. And it will allow California, as we all know, to rapidly and efficiently deliver projects that we need to meet our climate and mobility goals and improve the conditions of our statewide infrastructure.

Here with me today is Danny Yost, Assistant Deputy Director of Caltrans. And I respectfully ask for an aye vote, Madam Chair.

You can speak if you like.

Yes, Caltrans. Danny Yost here. And just really important for accelerating transportation projects. These proposals will allow us to certainly deliver much faster and be able to fix things much more quickly as they come up.

Thank you. Anyone in the room wishing to express their support, please come to the mic.

Good morning, Madam Chair and Members. Richard Markuson for the American Society of Civil Engineers. While we haven't had an opportunity to comprehensively review the legislation, ASCE strongly supports alternative delivery mechanisms like a Progressive Design build, we support the alternatives and believe that additional state agencies should have access to that authority. Thank you.

Thank you, Madam Chair. Matt Robinson on behalf of the California Transit Association. A number of our member agencies, a couple of provisions in this bill we're very supportive of, including the NEPA assignment that was mentioned by the author, as well as the Progressive Design Build elements. We do see some work there with the state and we are also co-sponsoring our own local Progressive Design bill, build bill, sorry, it's a mouthful, that would provide a similar authority for local transportation and transit projects. Thank you.

Thank you. Madam Chair Jason Ikerd on behalf of the California Municipal Utilities Association, also in support of the bill.

Thank you. Is there anyone in the room wishing to express opposition to the bill? Okay, seeing none, we'll go to the phone lines. Operator, could you please open the phone lines for SB 146?

If you are in support or opposition to SB 146, please press one followed by zero. One followed by zero. And let's go to line 12. Please go ahead. Line twelve, you are open.

Hello?

Please go ahead.

Hi, this is Chris Wilson with the Los Angeles County Business Federation, also in jointly support with the Bay Area Council and New California Coalition in support of SB 146. Thank you.

There are additional people that would like to queue up for public comment one followed by zero for SB 146. Line 13, you are open.

Mark Watts representing Transportation California. We support this measure and in particular the NEPA delegation, which needed to be and we thank the author carrying this bill. Thank you.

Madam Chair. There are no other participants queued up.

Thank you very much. We'll go back to the committee for any comments.

Vice Chair Fong, thank you for carrying this bill. Certainly supportive. I know there was conversation the last hearing about trying to get more details on what those eight projects would be that would use this design build procurement. Is there any more information you could provide?

Thank you, Assembly Member, for that question. We are looking at potential projects. One of the lists that we look at is our long lead State Highway Operation and Protection Program project list. And what we would do with this authority is look at each one of those projects and see if this is a good tool to use to accelerate the delivery of those projects. It really comes down to is it technically complex? Are there complex delivery parameters? And then we would then apply this to the appropriate projects.

So just if I could follow up with the eight projects. Is that just within Caltrans, or is that in combination with DWR and Caltrans?

No. Eight projects per Department.

Eight projects per Department, that's right. Thank you.

Thank you. I am going to go and vote on the bills and the other committees and come right back. So I'm going to pass the gavel to my vice chair.

Are there any other questions from the committee with that? I offer you the opportunity to close.

Thank you very much. I respectfully ask for an aye vote.

All right. Madam Secretary. Oh, we have a motion second? We have a motion second. Madam Secretary, please call the roll.

The Bill is SB 146. The motion is Do Pass. Friedman Fong. Fong. Aye. Berman. Aye. Berman. Aye. Carrillo. Carrillo. Aye. Davies. Gipson. Aye. Gipson. Aye. Hart. Aye. Jackson. Jackson. Aye. Kalra. Kalra. Aye. Lowenthal. Aye. Lowenthal. Aye. Nguyen. Nguyen. Aye. Sanchez. Sanchez. Aye. Wallace. Wallace. Aye. Ward. Wicks.

Eleven votes. We'll leave the roll open for any absent Members. We'll now move to file item three, SB 150. Senator Durazo, please proceed. Whenever you're ready, Senator.

Great. Thank you, Mr. Chair. And thank you to all the Members of the committee. Good morning. I want to also introduce my co-author for SB 150, Senator Smallwood-Cuevas. Our key witnesses will be Esteban Nunez, chief strategy officer for ARC, Sarah Flocks, the Ledge Director for the California Federation of labor and available for questions in addition to Mr. Yost is Cesar Diaz from the Pro TEM policy consultant.

We are in the midst of an industry changing moment in the infrastructure, manufacturing and sustainability sectors. While public's works construction requires the payment of prevailing wage and employment apprentices, we need a similar or comparable framework for taxpayer funded financial assistance programs in the manufacturing sector. We know that in California, most people work often full time and more than one job. About a third of California's 40 million people live in poverty or near poverty.

The problem isn't that people don't have jobs, or that our historic investments in climate and transportation won't create jobs. It's that more people need access to good jobs. And our state has proven that there's ways of doing this. We're aggressive at combating climate change, using all the levers of government to shape markets, to reduce carbon. We will be doing the same thing, the same intentionality to fighting poverty.

The Federal IIJA IRA and Chips Act are estimated to invest over $752 billion in infrastructure investments to rebuild roads, bridges, rail, improve access to clean drinking water, expand access to reliable and affordable high speed internet, address climate change, and bolster U. S. Leadership in semiconductor research, development and manufacturing. What an opportunity.

California's share of federal funds provides an opportunity to promote equity and access to construction and manufacturing careers through procurement and contractual requirements, so we get the maximum benefits to our communities, especially those who have been historically marginalized in the economy. SB 150 states the intent of the Legislature is to develop procurement models to enhance the state's training pipeline for quality jobs and community benefits on infrastructure manufacturing using these federal funds.

This bill requires the inclusion of community benefits in project labor agreements entered into by a state agency for projects of $35 million and above in construction costs. Community benefits could include local hire provisions, construction careers programs, the hiring of veterans, formerly incarcerated or youth from economically disadvantaged areas. SB 150 requires the Labor and Workforce Development, Government Operations Agency, and Transportation Agency in consultation with labor, business, manufacturing, women in construction, reentry programs to develop the procurement model, recommendations to the Governor and to our Legislature

This bill is focused on strengthening California's commitment to worker centered equitable economy by setting up a group of experts to make recommendations on embedding incentives in contracts and procurement. Lastly, the bill requires the Department of Transportation to reserve $50 million from the IIJA funds to support high road construction careers, programs that provide a range of supportive services and career placement assistance to underserved and underrepresented populations and I asked my joint author, Senator Smallwood-Cuevas to speak.

And I want to thank co author Senator Derasso for those comprehensive explanation of this important bill. I want to thank the Chair for giving us an opportunity to present today and all of you Assembly Members for your consideration. 150 really is our bill. This is a bill that began in both the Senate and the Assembly, really interrogating what is the way that we ensure that these infrastructure dollars come down into the communities that we know across the state need it the most.

And this package of infrastructure bills that we are considering as part of this year's budget has presented all of us with an incredible opportunity. There are, of course, the opportunities for new projects, as the good Senator from Los Angeles mentioned, to improve infrastructure in our communities and to decrease our reliance on fossil fuels. But we also have an opportunity to create equitable jobs, career programs for our state's working families, especially those most disadvantaged and Low income communities of color.

In my district and in yours, I represent South Central Los Angeles. South Central Los Angeles was the crown jewel of California, one of the crown jewels of California's industrial centers. It was the second largest producers of automobiles behind Detroit. Those good industrial jobs in the 1970s created the reality that heavy manufacturing and light manufacturing were the number one employers of black folks in South Central in the 1970s. And those jobs disappeared. The unions went along with them.

And what we were left with was a shift into a service sector. A service sector that many of us have worked to improve for workers and for our communities. 40 and 50 years later, after that industrial transition, by the early 2000s, customer service and retail would become the number one employer of black workers in South Central. The impact of this shift, this invisible shift, created economic devastation in all of our communities, and we still have not recovered from that today.

We cannot make similar mistakes as we move from a service into a green economy without centering these communities and folks that we have left behind and that we as legislators are trying to build safety nets to support every day. The Biden and Harris Administration has already identified this problem and is doing and taking steps to really ensure that our government works for everyone by including metrics for gender and racial equity and economic equity and good jobs.

They have spelled out in executive orders to ensure that core elements of what the Administration is looking for in terms of a competitive edge is that we apply these measures to our application process for these infrastructure dollars. And that is what we have done in the Senate and the Assembly in crafting this important legislation to both serve our workers and to keep California competitive for federal funding, we need to prioritize equitable hiring with our infrastructure dollars.

SB 150 is the next step in our long journey toward economic justice for all Californians. And by requiring projects over 35 million in value to focus on helping the communities where they are located. Where we have deep disparity, we can help historically marginalized communities, communities that have been traditionally underrepresented in the infrastructure sector and ensure we're building a green sector that represents and includes us all.

By engaging with stakeholders representing labor and business California marginalized communities, environmental groups, SB 150 will provide us with the policies that we can use to shape the future of work in California. And I am so proud to be here before you today with my colleagues and with these great subject matter experts to answer any questions you might have as we move forward in this journey together. And with that, I'll pass it on to our witnesses.

Two minutes.

Mr. Chair Member Sara Flocks, California Labor Federation and as the author said, the federal and state government is pouring billions into creating a new climate economy. And there are going to be jobs created opportunities in construction, in building infrastructure, but also in manufacturing. So workers are going to be building batteries, semiconductors, laying broadband, working with lithium, and building things that we don't even know what they are yet.

And we have incredible potential for these jobs to be good jobs, to create a new path to the middle class. But good jobs just don't happen. The reason that we had good union jobs in auto manufacturing is because workers unionized and had sit down strikes in Flint, and they formed unions and they fought for these to be good jobs. Jobs in manufacturing jobs anywhere are not just good because we create them.

And California has set standards in many other industries to make sure that all of these investments are both good for the climate and create environmental justice, but also create economic and climate justice. And just the same, these jobs are not going to be equitable and diverse and open to all Californians unless we also ensure that those standards are there.

And so SB 150 is an important first step towards figuring out and creating the standards that we need to have to make sure that these are good jobs. It's a first step, but we really need to have had these standards out there already with the billions of dollars that are going out. And we also know that this is just going to be a floor. I'm sure that the recommendations that come out will be excellent, but there is always room to build more into it.

And at the same time, we also need to have the infrastructure available so that the agencies that are implementing these standards have the expertise and resources that they need. And I know Senator Durazo is moving a Bill in this area to make sure that the state of California is able to go out to all of these agencies that are distributing the funds from the PUC to CARB to energy.

I hate to interrupt at the age of two minutes

Of course. And so it is incredibly important that that moves at the same time. So California has a comprehensive approach to creating good union equitable jobs. Thank you.

Thank you. If you go under two minutes, that'd be good.

Yeah. Good morning, Chair and Members of the committee. My name is Esteban Nunez. I'm with the Anti Recidivism Coalition. Just in short, ARC is a community based nonprofit that provides currently and formally incarcerated youth and adults with a comprehensive support network, re entry services and opportunities to promote rehabilitation, therefore reduce recidivism. ARC has a key vocational training initiative in our Los Angeles office. It's an eleven week program.

It's a partnership between LA USD, Los Angeles Federation of labor, and the Los Angeles and Orange County Building Trades. All our program participants are paid livable wages during the cohort training prior to even being placed directly in union apprenticeships. We have served over 446 participants thus far, with a 75% graduation rate and 71% placement rate. In the coming years, we will have the opportunity to determine how billions of dollars are spent in this state.

Thus, it is incredibly important that California remain focused on strengthening our commitment to a worker centered equitable economy by empowering this group of experts to make these recommendations on embedding standards and contracts and procurements. ARC Members have benefited greatly from the Legislature's prior investments and inclusions of community benefits, and project labor agreements entered into by state agencies for projects. These community benefits promote the employment of people like myself coming in and from disadvantaged communities, including individuals who have been impacted by our criminal justice system.

When I first came home, I recognized the disconnect and the need for these partnerships. In my working with the State Building Trades and Cesar Diaz, we have been able to create and strengthen these partnerships initially, starting with SB 1 which truly solidified the relationships between labor, the state and those directly impacted by the criminal justice system. These partnerships have been primarily through the High Road Construction Careers model and have instilled hope, a sense of belonging and a sense of purpose to our members.

HRCC model has helped employ 241 ARC Members. That's 241 people that have gainful employment and may never recidivate.

And your time is up. If you can finish up, please.

Okay. It is important that we look to create a similar framework tied to manufacturing with the same pipeline, ensuring that we are prioritizing opportunities for those with the greatest need. It is for those reasons that I ask your support on SB 150. Thank you.

Great. Thank you. Is there anyone else in the room wishing to voice their support for the Bill?

Danny Yost here, legislative Director for Caltrans. We are very excited about this Bill and the opportunity to invest in workforce development for disadvantaged workers and to convene stakeholders and academia and the State Civil Rights Department to develop best practices and recommendations for delivering these infrastructure projects equitably.

Thank you, madam. Chair Scott Wetch. On behalf of the State Association of Electrical Workers, the California State Pipe Trades Council, the Western States Council of Sheet Metal Workers, and the California Coalition of Utility Employees and the Elevator Constructors Union. Very proud support of this Bill. Thank you.

Good morning, Madam Chair. Chris Micheli. On behalf of the Los Angeles Area Chamber of Commerce in support of the Bill. Thank you.

Ok, seeing no one else, is there anyone here to speak in opposition?

Good morning, Madam Chair, and Members. Richard Markuson on behalf of the Western Electrical Contractors Association. We have narrow opposition it's to Section two of the Bill. We're unsure why, well, first of all, WECA finds that project labor agreements are extremely discriminatory. They discriminate against apprentices, journey workers and contractors who are unaffiliated with construction unions. They exclude up to 80% of the construction industry from competing for public works projects under a project labor agreement.

Furthermore, we're a little bit confused on Section two and the delayed implementation date and why these community benefits that are supposedly going to be attached to project labor agreements are delayed for three years and to projects that are $35 million or more. It would seem logical from a purely political perspective, that if project delivery, project labor agreements deliver these community benefits, why not have them applied to all projects and why not have them applied immediately? We are opposed to Section two, but have those observations. Thank you very much.

Anybody else? All right, let's open the phone lines for testimony in support and opposition to SB 150.

Thank you, Madam Chair, if you're in support or opposition to Senate Bill 150, please press 10 at this time, one followed by zero. And we'll go to line 15. Please go ahead. Line 15, you're open, please? Unmute. Yeah. All right, Madam Chair, are you hearing line 15?

No, we are not.

I'm not either. Okay, let's try line 18. Please go ahead, 18.

Hello?

You're on. Please go ahead.

Line 18, you're open? Go ahead.

Hello, this is Elder Solomon. Can you hear me? Yes, this is Elder Solomon from the Southern California Black Worker Hub in support of SB 150.

And let's go to line 16. Please go ahead.

Good morning. Trina Traylor Los Angeles Black Workers Center in Support of SB 150.

Line twelve, you are open.

Good morning, Madam Chair. Chris Wilson on behalf of BizFed, the Bay Area Council and New California Coalition in support of SB 150. Thank you.

You are open. Line 17.

Hi, yes, good morning. Khalil Edwards. I'm calling in support of SB 150 is long overdue and it's just a start, but equitable hiring needs to be a strong priority all across California. So thank you in support of SB 150.

Please go ahead. Line 19. Good morning.

My name is Tristan Shaw, Inglewood resident, and I support SB 150.

We'll give one more reminder. If you're in support or opposition to SB 150, please press 10. Please go ahead. Line 22.

Line 20, you are open.

This is Julius Young. Good morning. I'm in Inglewood, California, and I support SB 150.

Morning. My name is Taylor Jackson. I'm calling on behalf of Southern California Black Worker Hub and I support SB 150. Thank you.

Line 13, you are open.

Madam Chair Members, Mark Watts representing Transportation California, speaking in support of SB 150. Thank you.

And one moment, Madam Chair. Got a couple more with an operator. Line ten. Please go ahead.

Hi, my name is Simone Frank. I'm with the Southern California Black Worker Hub for Racial Organizing and I support SB 150. Thank you.

Line 25. Please go ahead.

Hi. My name is Deja Thomas. I'm calling into support for SB 150. I think it's really important that we really think about equity as these dollars come down. Thank you.

Line 24, you are open.

Christopher Sanchez with the Western Center on Law and Poverty and strong support.

And Madam Chair. We cleared the queue.

Thank you very much. Any questions or comments from the committee? Vice chair. Fong.

Just a quick question. There's a concern that this Bill will increase the cost of completing infrastructure projects in California. In effect, nullifying kind of the savings that we would have achieved with SB 145 and 146, which you just voted on. I see that this Bill requires three agencies to come together to bring about new terms to add to contracts. Can you tell me give me some examples of what those new terms would be?

Well, I could say that in the community benefits agreements, I gave some examples of the kinds of things that could be included, from targeted populations to outreach for work, women in industry is one example, formerly incarcerated. There are even examples of housing that could be provided to workers who get recruited into the apprenticeship program. So there's a myriad of examples that across the country have been used and included in community benefits agreements. Did you want to add?

Yeah. And I will also just add also the opportunity to come together around this in terms of these different agencies is that we can also put in language such as those at risk of homelessness, for example. So the community benefit is really, what are the needs of the state, and how can we use these dollars to help address those needs?

I've had the opportunity of working on projects before coming to the state Legislature, where we built in this language, and those projects were built under budget and on time. This is a common practice. It's used throughout the state, particularly on large scale infrastructure projects. And we aren't starting this from scratch. This is sort of the standard that we think it's time for the state of California to also enact.

So, in essence, these are measures that help to multiply the investment in terms of addressing our most stubborn conditions and needs using a model that has been tested in different parts of the state and that is proven to work. I personally have watched workers who have built rail lines, for example, in Los Angeles, when we met them, were sleeping in their cars, and at the end of the project, they were buying homes. And so this is what this model has the potential to do.

It does not slow down the process. It actually helps us accelerate on the conditions that we're trying to eradicate here at the state. And that's the best opportunity, I think, that we have and why this Bill is so important.

Mr. Diaz, if you could speak on the issue of the timing.

Yes, Senator. In terms of there's two pieces of the Bill and the enactment of the actual community benefit allows for contractor associations and working with labor unions and local building trades councils and the state to understand that community benefits are a priority. It's a signal that the Legislature has made about community benefits being a requirement and that the Governor has agreed to, as well as part of the state agency procurement.

That does not mean that they can't utilize community benefits today, but it gives them the opportunity to prepare for before that becomes a mandate of all project labor agreements. And then with regards to the other procurement models and contractual requirements, those are to be developed in consultation and recommended by the state agencies themselves that actually deliver these projects and are going to be administering a lot of these funds.

So they would be recommending something that would not delay any projects and would actually achieve the equity and diversity goals of this legislation.

Mr. Gipson.

Thank you very much, madam Chair. Want to thank the authors for bringing this Bill, SB 150, before us. This packet of infrastructure bills presented a very historic opportunity to create new, exciting jobs in California, especially for low income residents and especially underscore those communities of color. When we look at what just transpired this morning with the United States Supreme Court and affirmative action, we need opportunities to be opened up, even though that our Supreme Court was derelict in their responsibility.

But I'm glad to say that California is alive and well and moving forward. This Bill also positioned our leaders to, one, tackle the issues of poverty. Poverty in which I represent in my district, being able to lift families out of those poverty conditions and place them into a place where they can get a piece of American Dream moving forward. This is a game changer for communities in which I represent, especially Watts, Willowbrook, where I was born and raised, Compton and also Wilmington.

And those individuals and those people who I'm proudly represent deserve to have a fighting chance and knowing that California policymakers are thoughtful in thinking about them. With this thoughtful piece of legislation moving forward, Senator Cuevas made mention about South Los Angeles and about Central avenue about the industrial I remember and maybe I'm dating myself, maybe I was a little child, then I saw my daddy. But nonetheless I saw thriving industries, automotive industries, thriving and growing in Los Angeles.

We had Goodyear tires and things of that nature, good paying jobs and those jobs left, which left also these communities that I grew up and surrounding communities devastating. And when you talk about manufacturing jobs and light and heavy industrial jobs, we can do better here in California. And I believe that this placed us in the right track to one, attract new companies, new businesses to California, brand new businesses and also those who left, giving them a second chance to come back and add to our family.

So I believe the SB 150 is a win-win situation for California. It's a win-win situation for the poverty changing and writing new narrative moving forward. It's a win-win situation for underserved communities. It's a win-win situation for California. And so I would love to be added as a coauthor, maybe a principal co, you know I want my name high on the list. So thank you very much. I think I moved the Bill already. No shame. Thank you.

Mr. Carrillo.

I also want to thank the authors for bringing this up. It is exciting. Again, the opportunities that you talked about, all of those projects coming into those communities. However, I do have a concern because it seems like every time we have these kind of opportunities, they tend to go to heavy urbanized areas like Los Angeles, San Francisco and all of those that are heavily urbanized. I understand that's where the population is.

But remember that there are communities that travel to work in those areas like the ones that I represent, the Antelope Valley and the Vicar Valley. It takes us 2 hours to get there. I heard things like this will provide an opportunity for those to move up to the middle class, preserve the middle class. Those are great things. I heard that there are workers sleeping in their cars, they're getting ready to go to work.

Those may come from those communities like the ones that I represent that are oftentimes forgotten. 60% to 70% of our residents travel down to LA, down below, as we say, because that's where those jobs are. That's where these opportunities come to. So that's one concern I wanted to express. Don't forget that when you say equity and opportunities for all Californians communities that are outside of those urbanized areas are the ones that need to have those opportunities as well.

Not only the high desert, also the Central Valley, all of those that commute to get to work because that's where the jobs are. Please don't forget about that. And I want to thank Senator Durazo for coming to visit my district this weekend. And again, I just want to remind you that those opportunities should be equally distributed, including those outside of those urbanized areas. Thank you.

Assemblymember Kalra.

Thank you, Madam Chair. And I want to second some of the comments from our colleague from Los Angeles. And you can slide my name, my name alphabetically, call what comes after Gibson anyway. You can slide my name right after his in support.

You know, I'm so grateful for the leadership from both you as well as not just now, but over the years. I served on the Governor's Future Work Commission and we've talked about that along with our colleagues, Senator Stern, and a lot was talked about during that commission. A lot of conclusions were made about how we have to support high road employment, equity, apprenticeships. And I think we talk a lot in this state, a lot talk a lot in this building and the building down the street.

And when we can put that talk into action, it really makes it feel like we're making an impact, we're making a difference. And that's the harder part. It's much easier to talk than to actually do the work. And I'm so grateful to both of you, as well know, both Senator Durazo and Cuevas-Smallwood, as well as the leadership in both houses and our Administration for recognizing that this is not something we can wait on anymore. Especially when we're talking about how much funding is coming in.

Appropriately so from the federal government, as well as how much we invest in infrastructure. And we need to make sure that we're not just creating high quality jobs today, but we're creating careers for following generations in jobs that have traditionally allowed an individual to send, to buy a house and send their kids to college. That is in the past. We want to bring that back. And I think it is this kind of work, it's this kind of legislation that puts us on that path.

And for that I'm very grateful.

Anybody else? Okay. I'm very happy to see the Bill come forward today and certainly we'll be supporting it. Would you like to close?

Thank you, Madam Chair. I just want to again thank the Governor, thank the Administration, the leadership of both houses, everyone who played a role in this. We are really taking a big step forward. And yes, these jobs will be all across the state. BYD and Kinki Sharyo were both done as a result of similar policies at LA Metro where electric buses were being built.

So that's an example of what will happen across the state of California. Thank you all and I urge an aye vote.

Thank you. We have a motion and a second. Can we have a roll call please?

The Bill is SB 150 and the motion is Do Pass. Friedman? Aye. Friedman? Aye. Fong. Fong? No. Berman? Berman? Aye. Carrillo. Carrillo? Aye. Davies. Davies. Not voting. Gipson. Gipson? Aye. Hart. Hart. Aye. Jackson. Jackson Aye. Kalra. Kalra. Aye. Lowenthal. Lowenthal. Aye. Nguyen. Nguyen. Aye. Sanchez. Sanchez? No. Wallace. Wallace? Aye. Ward. Ward. Aye. Wicks. Wicks Aye.

We have twelve to two. That Bill is out and we'll leave the roll open for absent Members. Thank you.

Thank you, Chair, thank you Assembly Members.

Thank you.

Can we go back and take roll on the other bills? We have SB 146. The motion is due pass Friedman aye Friedman aye already voted. aye voted on everything. Maya, 146. You did not vote. Okay. SB 146. Friedman is an aye Davies davies is an aye. Ward Ward is aye Wix Wix is aye? That's 15. Forgot aye And the last is SB 145. The motion. Do pass, Davies. Davies is aye Cholra Cholra here. Ward.

Ward aye Wix Wix aye. That is Hart is aye. We're at 14. On that, I apologize. Okay, thank you. We are adjourned.