BILL NUMBER: SB 45	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 27, 2009
	AMENDED IN ASSEMBLY  JUNE 3, 2009
	AMENDED IN SENATE  MARCH 16, 2009

INTRODUCED BY   Senator Padilla
    (   Coauthor:   Senator  
Strickland   ) 

                        JANUARY 7, 2009

   An act to amend Section 1777.1 of the Labor Code, relating to
prevailing wage.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 45, as amended, Padilla. Public works: 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 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  a second and subsequent time, or to be in
violation of this law with intent to defraud a second and subsequent
time  , with intent to defraud, for the first time, is
ineligible to bid on or be awarded a contract for a public works
project for specified periods of time, with a prescribed exception
related to apprenticeship requirements,  but would provide that
for a 2nd violation of the public works law, with intent to defraud,
the contractor or subcontractor  shall be ineligible to bid on
or  to receive   be awarded  a public works
contract.
   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) (1) 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,  for the first time,  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:
   (A) Bid on or be awarded a contract for a public works project.
   (B) Perform work as a subcontractor on a public works project.
   (2) 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, for a second  and subsequent
 time, the contractor or subcontractor or a firm,
corporation, partnership, or association in which the contractor or
subcontractor has any interest is ineligible to do either of the
following:
   (A) Bid on or be awarded a contract for a public works project.
   (B) Perform work as a subcontractor on a public works project.

   (b) (1) 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 of not less
than one year or more than three years to do either of the
following:  
   (A) Bid on or be awarded a contract for a public works project.
 
   (B) Perform work as a subcontractor on a public works project.
 
   (2) 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, for a second and subsequent violation, the contractor
or subcontractor or a firm, corporation, partnership, or association
in which the contractor or subcontractor has any interest is
ineligible to do either of the following:  
   (A) Bid on or be awarded a contract for a public works project.
 
   (B) 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,
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.
                                            ____ CORRECTIONS
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