BILL NUMBER: SB 45 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 16, 2009
INTRODUCED BY Senator Padilla
JANUARY 7, 2009
An act to add Sections 1771.3 and 1771.44 to
amend Section 1777.1 of the Labor Code, relating to
public works prevailing wage .
LEGISLATIVE COUNSEL'S DIGEST
SB 45, as amended, Padilla. Public works: State Public
Works Enforcement Fund. payment of prevailing wage:
violations.
Existing law generally requires the payment of the general
prevailing rate of per diem wages to workers employed on public works
projects. Under existing law, whenever a contractor or
subcontractor performing a public works project is found by the Labor
Commissioner to be either in violation of certain provisions of law,
with intent to defraud, or in willful violation of those provisions
of law, the contractor or subcontractor or a firm, corporation,
partnership, or association in which the contractor or subcontractor
has a substantial interest is ineligible to bid on or to receive a
public works contract for specified periods of time.
This bill would require the Director of Industrial
Relations, with the approval of the Director of Finance, to assess a
fee, not to exceed a specified rate, on all bonds issued by the state
to fund public works projects, to cover administrative expenses for
the enforcement of prevailing wage and apprenticeship requirements on
public works projects funded by the bonds instead
provide that a contractor or subcontractor performing a public works
project who is found by the Labor Commissioner to be in willful
violation of the public works law, or to be in violation of this law
with intent to defraud, with a prescribed exception related to
apprenticeship requirements, shall be ineligible to bid on or to
receive a public works contract .
This bill would require all fees collected to be deposited into
the State Public Works Enforcement Fund, a special fund this bill
would create, and from which moneys would, upon appropriation by the
Legislature, be used by the department for those specified purposes.
This bill would become operative on January 1, 2010.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1777.1 of the Labor
Code is amended to read:
1777.1. (a) Whenever a contractor or subcontractor performing a
public works project pursuant to this chapter is found by the Labor
Commissioner to be in violation of this chapter with intent to
defraud, except Section 1777.5, the contractor or subcontractor or a
firm, corporation, partnership, or association in which the
contractor or subcontractor has any interest is ineligible
for a period of not less than one year or more than three years
to do either of the following:
(1) Bid on or be awarded a contract for a public works project.
(2) Perform work as a subcontractor on a public works project.
(b) Whenever a contractor or subcontractor performing a public
works project pursuant to this chapter is found by the Labor
Commissioner to be in willful violation of this chapter, except
Section 1777.5, the contractor or subcontractor or a firm,
corporation, partnership, or association in which the contractor or
subcontractor has any interest is ineligible for a period up
to three years for each second and subsequent violation occurring
within three years of a separate and previous willful violation of
this chapter to do either of the following:
(1) Bid on or be awarded a contract for a public works project.
(2) Perform work as a subcontractor on a public works project.
(c) A willful violation occurs when the contractor or
subcontractor knew or reasonably should have known of his or her
obligations under the public works law and deliberately fails or
refuses to comply with its provisions.
(d) Not less than semiannually, the Labor Commissioner shall
publish and distribute to awarding bodies a list of contractors who
are ineligible to bid on or be awarded a public works contract, or to
perform work as a subcontractor on a public works project pursuant
to this chapter. The list shall contain the name of the contractor
, and the Contractor's State License
Board license number of the contractor, and the effective
period of debarment of the contractor. The commissioner
shall also place advertisements in construction industry publications
targeted to the contractors and subcontractors, chosen by the
commissioner, that state the effective period of the
debarment and the reason for debarment. The advertisements
shall appear one time for each debarment of a contractor in each
publication chosen by the commissioner. The debarred contractor or
subcontractor shall be liable to the commissioner for the reasonable
cost of the advertisements, not to exceed five thousand dollars
($5,000). The amount paid to the commissioner for the advertisements
shall be credited against the contractor's or subcontractor's
obligation to pay civil fines or penalties for the same willful
violation of this chapter.
(e) For purposes of this section, "contractor or subcontractor"
means a firm, corporation, partnership, or association and its
responsible managing officer, as well as any supervisors, managers,
and officers found by the Labor Commissioner to be personally and
substantially responsible for the willful violation of this chapter.
(f) For the purposes of this section, the term "any interest"
means an interest in the entity bidding or performing work on the
public works project, whether as an owner, partner, officer, manager,
employee, agent, consultant, or representative. "Any interest"
includes, but is not limited to, all instances where the debarred
contractor or subcontractor receives payments, whether cash or any
other form of compensation, from any entity bidding or performing
work on the public works project, or enters into any contracts or
agreements with the entity bidding or performing work on the public
works project for services performed or to be performed for contracts
that have been or will be assigned or sublet, or for vehicles,
tools, equipment, or supplies that have been or will be sold, rented,
or leased during the period from the initiation of the debarment
proceedings until the end of the term of the debarment period. "Any
interest" does not include shares held in a publicly traded
corporation if the shares were not received as compensation after the
initiation of debarment from an entity bidding or performing work on
a public works project.
(g) For the purposes of this section, the term "entity" is defined
as a company, limited liability company, association, partnership,
sole proprietorship, limited liability partnership, corporation,
business trust, or other organization.
(h) The Labor Commissioner shall adopt rules and regulations for
the administration and enforcement of this section.
SECTION 1. Section 1771.3 is added to the Labor
Code, to read:
1771.3. The State Public Works Enforcement Fund is hereby created
as a special fund in the State Treasury. Moneys in the fund shall,
upon appropriation by the Legislature, be used by the Department of
Industrial Relations for the purposes of administering and enforcing
the prevailing wage and apprenticeship requirements applicable to
public works pursuant to this chapter and Chapter 4 (commencing with
Section 3070) of Division 3, and may not be used or borrowed for any
other purpose.
SEC. 2. Section 1771.44 is added to the Labor
Code, to read:
1771.44. (a) The Director of Industrial Relations, with the
approval of the Director of Finance, shall determine and assess a fee
on all bonds issued by the state to fund public works projects, in
an amount not to exceed one-quarter of 1 percent of the bond
proceeds. The fee shall be set to cover the expenses of the
Department of Industrial Relations for administering the prevailing
wage and apprenticeship requirements on public works projects using
those bond funds. All fees collected pursuant to this subdivision
shall be deposited in the State Public Works Enforcement Fund created
by Section 1771.3, and shall be used only for enforcement of
prevailing wage and apprenticeship requirements on projects using
bond funds.
(b) The administration and enforcement of prevailing wages and
apprenticeship requirements is an administrative expense associated
with public works construction.
SEC. 3. This act shall become operative on
January 1, 2010.