BILL NUMBER: SB 868	CHAPTERED
	BILL TEXT

	CHAPTER  905
	FILED WITH SECRETARY OF STATE  OCTOBER 12, 2003
	APPROVED BY GOVERNOR  OCTOBER 12, 2003
	PASSED THE SENATE  SEPTEMBER 11, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2003
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2003
	AMENDED IN SENATE  APRIL 30, 2003

INTRODUCED BY   Senator Dunn

                        FEBRUARY 21, 2003

   An act to amend Section  1773.1 of the Labor Code, relating to
public works.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 868, Dunn.  Prevailing wages.
   Existing law governing the obligations of contractors and
subcontractors involved in public works projects requires that
employees be paid the general prevailing rate of per diem wages.
Existing law also provides that per diem wages include employer
payments for health and welfare, pension, vacation, travel, and
subsistence pay, apprenticeship or other training programs, and
similar purposes, and specifies the employer contributions, costs,
and payments that employer payments may include.  That law prohibits
credit from being granted for benefits required to be provided by
other state or federal law, and provides that credits for employer
payments may not reduce the obligation to pay the hourly straight
time or overtime wages found to be prevailing.
   This bill would provide that per diem wages shall additionally be
deemed to include worker protection and assistance programs or
committees, and industry advancement and collective bargaining
agreements administrative fees, as provided.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1773.1 of the Labor Code is amended to read:
   1773.1.  (a) Per diem wages, when the term is used in this chapter
or in any other statute applicable to public works, shall be deemed
to include employer payments for the following:
   (1) Health and welfare.
   (2) Pension.
   (3) Vacation.
   (4) Travel.
   (5) Subsistence.
   (6) Apprenticeship or other training programs authorized by
Section 3093, so long as the cost of training is reasonably related
to the amount of the contributions.
   (7) Worker protection and assistance programs or committees
established under the federal Labor Management Cooperation Act of
1978 (Section 175a of Title 29 of the United States Code), to the
extent that the activities of the programs or committees are directed
to the monitoring and enforcement of laws related to public works.
   (8) Industry advancement and collective bargaining agreements
administrative fees, provided that these payments are required under
a collective bargaining agreement pertaining to the particular craft,
classification, or type of work within the locality or the nearest
labor market area at issue.
   (9) Other purposes similar to those specified in paragraphs (1) to
(8), inclusive.
   (b) Employer payments include all of the following:
   (1) The rate of contribution irrevocably made by the employer to a
trustee or third person pursuant to a plan, fund, or program.
   (2) The rate of actual costs to the employer reasonably
anticipated in providing benefits to workers pursuant to an
enforceable commitment to carry out a financially responsible plan or
program communicated in writing to the workers affected.
   (3) Payments to the California Apprenticeship Council pursuant to
Section 1777.5.
   (c) Employer payments are a credit against the obligation to pay
the general prevailing rate of per diem wages.  However, no credit
shall be granted for benefits required to be provided by other state
or federal law.  Credits for employer payments also shall not reduce
the obligation to pay the hourly straight time or overtime wages
found to be prevailing.
   (d) The credit for employer payments shall be computed on an
annualized basis where the employer seeks credit for employer
payments that are higher for public works projects than for private
construction performed by the same employer, except where one or more
of the following occur:
   (1) The employer has an enforceable obligation to make the higher
rate of payments on future private construction performed by the
employer.
   (2) The higher rate of payments is required by a project labor
agreement.
   (3) The payments are made to the California Apprenticeship Council
pursuant to Section 1777.5.
   (4) The director determines that annualization would not serve the
purposes of this chapter.
   (e) (1) For the purpose of determining those per diem wages for
contracts, the representative of any craft, classification, or type
of worker needed to execute contracts shall file with the Department
of Industrial Relations fully executed copies of the collective
bargaining agreements for the particular craft, classification, or
type of work involved.  The collective bargaining agreements shall be
filed after their execution and thereafter may be taken into
consideration pursuant to Section 1773 whenever filed 30 days prior
to the call for bids.  If the collective bargaining agreement has not
been formalized, a typescript of the final draft may be filed
temporarily, accompanied by a statement under penalty of perjury as
to its effective date.
   (2) Where a copy of the collective bargaining agreement has
previously been filed, fully executed copies of all modifications and
extensions of the agreement that affect per diem wages or holidays
shall be filed.
   (3) The failure to comply with filing requirements of this
subdivision shall not be grounds for setting aside a prevailing wage
determination if the information taken into consideration is correct.