BILL ANALYSIS
SB 569
Page 1
Date of Hearing: July 2, 2008
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mark Leno, Chair
SB 569 (Steinberg) - As Amended: June 4, 2008
Policy Committee: Labor and
Employment Vote: 6-2
Judiciary 7-3
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill makes numerous changes to provisions of law related to
the enforcement of prevailing wage payments on public works
projects. Specifically, this bill:
1)Requires parties awarding public works contracts in excess of
$100,000 to report to the Contractor's State Licensing Board
the name and license number of each contractor and
subcontractor performing work within 30 days after the
information becomes available to the awarding body.
2)Specifies that a contractor and subcontractor shall be jointly
and severally liable for all amounts due pursuant to a final
order or judgment, regardless of the party bringing the
action.
3)Specifies that a contractor shall not be liable for penalties
incurred as a result of a subcontractor's failure to pay
prevailing wages, except under specific circumstances.
4)Extends the statute of limitations for a joint
labor-management committee to bring a civil action against a
contractor or subcontractor failing to pay prevailing wages
from 180 days after the completion of the project to up to
four years after the violation occurs. However, the contractor
is not liable for actions of subcontractors related to actions
brought more than 180 days after completion of the project.
5)Authorizes a member of the public to request copies of
certified payroll records directly from the contractor or
SB 569
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subcontractor.
FISCAL EFFECT
Special fund costs to the Contractor's Licensing Board of
$70,000 in 2008-09, $200,000 in 2009-10, and $130,000 per year
thereafter to include additional contractor information on their
website.
COMMENTS
1)Background . California generally requires the payment of
prevailing wages on public works contracts over $1,000.
Current law requires contractor and subcontractors on public
projects to keep accurate payroll records showing the name,
address, social security number, work classification, hours
worked and wages paid to all employees. These records are
required to be made available for inspection upon request of
the employee, the awarding body, the Division of Labor
Standards Enforcement, or the Division of Apprenticeship. The
information is also required to be made available to a member
of the public, but only when requested through the Division of
Labor Standards Enforcement or the Division of Apprenticeship
Standards.
2)Rationale . According to the sponsor, the California State Pipe
Trades Council, this bill addresses inadequate enforcement of
current laws by lengthening the statutes of limitations for
filing wage actions, ensuring that contractors and
subcontractors are jointly liable for underpayments, and by
providing greater access to contractor and wage payment
information.
3)Opponents contend the provisions requiring new reporting, and
allowing the public to request payroll records directly from
contractors, will place unnecessary administrative burdens on
contractors and awarding agencies.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081