BILL NUMBER: AB 1506 CHAPTERED
BILL TEXT
CHAPTER 868
FILED WITH SECRETARY OF STATE SEPTEMBER 26, 2002
APPROVED BY GOVERNOR SEPTEMBER 25, 2002
PASSED THE ASSEMBLY AUGUST 31, 2002
PASSED THE SENATE AUGUST 30, 2002
AMENDED IN SENATE AUGUST 29, 2002
AMENDED IN SENATE AUGUST 21, 2002
AMENDED IN SENATE MAY 15, 2002
AMENDED IN SENATE MAY 1, 2002
AMENDED IN SENATE AUGUST 20, 2001
AMENDED IN ASSEMBLY MAY 16, 2001
AMENDED IN ASSEMBLY MAY 9, 2001
AMENDED IN ASSEMBLY MAY 1, 2001
INTRODUCED BY Assembly Members Wesson and Negrete McLeod
(Principal coauthor: Assembly Member Firebaugh)
(Principal coauthor: Senator Burton)
(Coauthors: Assembly Members Aroner, Briggs, Chan, Chavez, Diaz,
Frommer, Goldberg, Keeley, Maddox, Oropeza, Strickland, and
Strom-Martin)
(Coauthors: Senators O'Connell, Perata, and Romero)
FEBRUARY 23, 2001
An act to add Section 1771.7 to the Labor Code, relating to public
works.
LEGISLATIVE COUNSEL'S DIGEST
AB 1506, Wesson. Public works.
Existing law generally requires the payment of the general
prevailing rate of per diem wages for public works projects costing
over $1,000, unless the awarding body elects to initiate and enforce
a labor compliance program, as defined, for every public works
project under the authority of that awarding body.
This bill would require an awarding body that chooses to use funds
from either the Kindergarten-University Public Education Facilities
Bond Act of 2002 or the Kindergarten-University Public Education
Facilities Bond Act of 2004 for a public works project to initiate
and enforce, or contract with a 3rd party to initiate and enforce, a
labor compliance program for that public works project. The bill
would provide that the labor compliance law applies to a public works
project that commences, as provided, on or after April 1, 2003.
This bill would also provide that, if any campus of the California
State University chooses to use these funds and is required to
implement a labor compliance program as provided, the "awarding body"
for the purposes of this bill is the Chancellor of the California
State University, in which case the Chancellor of the California
State University would be required to review certain payroll records
on at least a monthly basis, as provided. This bill would also
require the review of similar payroll records on at least a monthly
basis if any campus of the University of California is required to
implement a labor compliance program under the bill. This bill would
also require awarding bodies to make a written finding that the body
has compiled with this bill, and require the State Allocation Board
or the Director of the Department of Industrial Relations, as
applicable, to verify that this written finding has been made.
This bill would not become operative unless either the
Kindergarten-University Public Education Facilities Bond Act of 2002
or the Kindergarten-University Public Education Facilities Bond Act
of 2004 is approved by the voters.
This bill would also state legislative findings and declarations
regarding the bill's intent.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. In enacting this act, the Legislature finds and
declares all of the following:
(a) Payment of the prevailing rate of per diem wages to workers
employed on public works is necessary to attract the most skilled
workers for the project and to ensure that work of the highest
quality is performed on these projects.
(b) Public works projects should never undermine the wage base in
a community and requiring that workers on public works projects be
paid the prevailing rate of per diem wages ensures that the wage base
is not lowered.
(c) It is a matter of statewide concern that every school district
in California pay the prevailing rate of per diem wages to workers
employed on public works undertaken by those school districts.
(d) Therefore, it is the intent of the Legislature in enacting
this act that every school district in California pay the prevailing
rate of per diem wages to workers employed on public works undertaken
by these school districts.
(e) It is the further intent of the Legislature to preserve the
constitutional autonomy of the University of California, as described
in Section 9 of Article IX of the California Constitution, by
providing that this act apply to that university only to the extent
that the university chooses to use the funds described in this act.
SEC. 2. Section 1771.7 is added to the Labor Code, to read:
1771.7. (a) An awarding body that chooses to use funds derived
from either the Kindergarten-University Public Education Facilities
Bond Act of 2002 or the Kindergarten-University Public Education
Facilities Bond Act of 2004 for a public works project, shall
initiate and enforce, or contract with a third party to initiate and
enforce, a labor compliance program, as described in subdivision (b)
of Section 1771.5, with respect to that public works project.
(b) This section shall apply to public works that commence on or
after April 1, 2003. For purposes of this subdivision, work
performed during the design and preconstruction phases of
construction, including, but not limited to, inspection and land
surveying work, does not constitute the commencement of a public
work.
(c) (1) For purposes of this section, if any campus of the
California State University chooses to use the funds described in
subdivision (a), then the "awarding body" is the Chancellor of the
California State University. For purposes of this subdivision, if
the chancellor is required by subdivision (a) to initiate and
enforce, or to contract with a third party to initiate and enforce,
the labor compliance program described in that subdivision, then in
addition to the requirements imposed upon an awarding body by
subdivision (b) of Section 1771.5, the Chancellor of the California
State University shall review the payroll records described in
paragraphs (3) and (4) of subdivision (b) of Section 1771.5 on at
least a monthly basis to ensure the awarding body's compliance with
the labor compliance program.
(2) For purposes of this subdivision, if an awarding body
described in subdivision (a) is the University of California or any
campus of that university, and that awarding body is required by
subdivision (a) to initiate and enforce, or to contract with a third
party to initiate and enforce, the labor compliance program described
in that subdivision, then in addition to the requirements imposed
upon an awarding body by subdivision (b) of Section 1771.5, the
payroll records described in paragraphs (3) and (4) of subdivision
(b) of Section 1771.5 shall be reviewed on at least a monthly basis
to ensure the awarding body's compliance with the labor compliance
program.
(d) (1) An awarding body described in subdivision (a) shall make a
written finding that the awarding body has initiated and enforced,
or has contracted with a third party to initiate and enforce, the
labor compliance program described in subdivision (a).
(2) (A) If an awarding body described in subdivision (a) is a
school district, the governing body of that district shall transmit
to the State Allocation Board, in the manner determined by that
board, a copy of the finding described in paragraph (1).
(B) The State Allocation Board may not release the funds described
in subdivision (a) to an awarding body that is a school district
until the State Allocation Board has received the written finding
described in paragraph (1).
(C) If the State Allocation Board conducts a postaward audit
procedure with respect to an award of the funds described in
subdivision (a) to an awarding body that is a school district, the
State Allocation Board shall verify, in the manner determined by that
board, that the school district has complied with the requirements
of this subdivision.
(3) If an awarding body described in subdivision (a) is a
community college district, the Chancellor of the California State
University, or the office of the President of the University of
California or any campus of the University of California, that
awarding body shall transmit, in the manner determined by the
Director of the Department of Industrial Relations, a copy of the
finding described in paragraph (1) to the director of that
department, or the director of any successor agency that is
responsible for the oversight of employee wage and employee work
hours laws.
(e) Notwithstanding Section 17070.63 of the Education Code, for
purposes of this act, the State Allocation Board shall increase as
soon as feasible, but no later than July 1, 2003, the per pupil grant
amounts as described in Sections 17072.10 and 17074.10 of the
Education Code to accommodate the state's share of the increased
costs of a new construction or modernization project due to the
initiation and enforcement of the labor compliance program.
SEC. 3. This act shall not become operative unless at least one of
the following conditions is met:
(a) The Kindergarten-University Public Education Facilities Bond
Act of 2002 is approved by the voters at the November 5, 2002,
statewide general election.
(b) The Kindergarten-University Public Education Facilities Bond
Act of 2004 is approved by the voters at the March 2004, statewide
direct primary election.
(c) The Kindergarten-University Public Education Facilities Bond
Act of 2004 is approved by the voters at the November 2004, statewide
general election.