BILL NUMBER: AB 324 CHAPTERED
BILL TEXT
CHAPTER 834
FILED WITH SECRETARY OF STATE OCTOBER 12, 2003
APPROVED BY GOVERNOR OCTOBER 11, 2003
PASSED THE SENATE AUGUST 27, 2003
PASSED THE ASSEMBLY APRIL 21, 2003
AMENDED IN ASSEMBLY MARCH 25, 2003
INTRODUCED BY Assembly Member Diaz
FEBRUARY 7, 2003
An act to amend Sections 1771.5 and 1771.7 of the Labor Code,
relating to public works.
LEGISLATIVE COUNSEL'S DIGEST
AB 324, Diaz. Public works: labor compliance programs.
Existing law generally requires the payment of the general
prevailing rate of per diem wages to workers employed on public works
projects costing over $1,000, unless the awarding body, as defined,
elects to initiate and enforce a labor compliance program, as
defined, for every public works project under the authority of that
awarding body. Existing state regulations provide a process by which
the Director of Industrial Relations approves a labor compliance
program.
This bill would specify that, for purposes of the statutory
provisions, a labor compliance program means a labor compliance
program that is approved by the director as specified in state
regulations.
Existing law requires an awarding body that chooses to use funds
from the Kindergarten-University Public Education Facilities Bond Act
of 2002 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. Existing law requires the
State Allocation Board to increase, as soon as feasible but no later
than July 1, 2003, the per-pupil grant amounts described in 2
specified statutes to accommodate the state's share of any increased
costs in projects due to these labor compliance program provisions.
This bill would instead require the board to increase the grant
amounts described generally in the Leroy F. Greene School Facilities
Act of 1998 and remove the requirement that any increased grant
amounts be made on a per-pupil basis. This bill would also repeal
the requirement that these increased grant amounts occur no later
than July 1, 2003.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1771.5 of the Labor Code is amended to read:
1771.5. (a) Notwithstanding Section 1771, an awarding body may
not require the payment of the general prevailing rate of per diem
wages or the general prevailing rate of per diem wages for holiday
and overtime work for any public works project of twenty-five
thousand dollars ($25,000) or less when the project is for
construction work, or for any public works project of fifteen
thousand dollars ($15,000) or less when the project is for
alteration, demolition, repair, or maintenance work, if the awarding
body elects to initiate and enforce a labor compliance program
pursuant to subdivision (b) for every public works project under the
authority of the awarding body.
(b) For the purposes of this section, a labor compliance program
shall include, but not be limited to, the following requirements:
(1) All bid invitations and public works contracts shall contain
appropriate language concerning the requirements of this chapter.
(2) A prejob conference shall be conducted with the contractor and
subcontractors to discuss federal and state labor law requirements
applicable to the contract.
(3) Project contractors and subcontractors shall maintain and
furnish, at a designated time, a certified copy of each weekly
payroll containing a statement of compliance signed under penalty of
perjury.
(4) The awarding body shall review, and, if appropriate, audit
payroll records to verify compliance with this chapter.
(5) The awarding body shall withhold contract payments when
payroll records are delinquent or inadequate.
(6) The awarding body shall withhold contract payments equal to
the amount of underpayment and applicable penalties when, after
investigation, it is established that underpayment has occurred.
(c) For purposes of this chapter, "labor compliance program" means
a labor compliance program that is approved, as specified in state
regulations, by the Director of the Department of Industrial
Relations.
(d) For purposes of this chapter, the Director of the Department
of Industrial Relations may revoke the approval of a labor compliance
program in the manner specified in state regulations.
SEC. 2. Section 1771.7 of the Labor Code is amended 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 applies 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 the
grant amounts as described in Chapter 12.5 (commencing with Section
17070.10) of Part 10 of Division 1 of Title 1 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.