BILL NUMBER: AB 414 CHAPTERED
BILL TEXT
CHAPTER 606
FILED WITH SECRETARY OF STATE OCTOBER 6, 2005
APPROVED BY GOVERNOR OCTOBER 6, 2005
PASSED THE ASSEMBLY SEPTEMBER 7, 2005
PASSED THE SENATE SEPTEMBER 6, 2005
AMENDED IN SENATE AUGUST 29, 2005
AMENDED IN SENATE JUNE 16, 2005
INTRODUCED BY Assembly Member Klehs
FEBRUARY 15, 2005
An act to amend Section 1771.7 of the Labor Code, relating to
labor compliance programs.
LEGISLATIVE COUNSEL'S DIGEST
AB 414, Klehs Labor compliance programs: third-party providers.
Existing law requires an awarding body, as defined, 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, as defined, for that public
works project.
This bill would specify that a 3rd party that contracts with an
awarding body to initiate and enforce a labor compliance program, for
purposes of these provisions, may not review the payroll records of
its own employees or the employees of its subcontractors, and the
awarding body or an independent third party must review these payroll
records for purposes of the labor compliance program.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1771.7 of the Labor Code is amended to read:
1771.7. (a) (1) 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.
(2) If an awarding body described in paragraph (1) chooses to
contract with a third party to initiate and enforce a labor
compliance program for a project described in paragraph (1), that
third party shall not review the payroll records of its own employees
or the employees of its subcontractors, and the awarding body or an
independent third party shall review these payroll records for
purposes of the labor compliance program.
(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.