BILL NUMBER: SB 922	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 9, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 9, 2011
	AMENDED IN ASSEMBLY  SEPTEMBER 8, 2011
	AMENDED IN ASSEMBLY  SEPTEMBER 2, 2011
	AMENDED IN ASSEMBLY  JUNE 16, 2011
	AMENDED IN SENATE  MARCH 22, 2011

INTRODUCED BY   Senator Steinberg
   (Principal coauthor: Senator Rubio)
   (Principal coauthors: Assembly Members John A. Pérez, Hayashi, and
Williams)

                        FEBRUARY 18, 2011

   An act to add Chapter 2.8 (commencing with Section 2500) to Part 1
of Division 2 of the Public Contract Code, relating to public
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 922, Steinberg. Public contracts: public entities: project
labor agreements.
   Existing law sets forth the requirements for the solicitation and
evaluation of bids and the awarding of contracts by public entities.
   This bill would authorize a public entity to use, enter into, or
require contractors to enter into, a project labor agreement for a
construction project, if the agreement includes specified taxpayer
protection provisions.
   This bill would authorize the members of the governing board of a
local public entity to choose by majority vote whether to use, enter
into, or require contractors to enter into a project labor agreement
for a specific project or projects awarded by that entity and whether
to allocate funding to a specific project covered by such an
agreement. This bill would prohibit a charter provision, initiative,
or ordinance from preventing the governing board of a local public
entity, other than a charter city, from exercising this authority on
a project-specific basis.
   This bill would also provide that if a charter provision,
initiative, or ordinance of a charter city prohibits the governing
board's consideration of a project labor agreement for a project to
be awarded by the city, or prohibits the governing board from
considering whether to allocate funds to a city-funded project
covered by such an agreement, then state funding or financial
assistance may not be used to support that project, as specified.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Project labor agreements can provide significant benefits to
taxpayers by insulating construction projects against uncertainties,
promoting transparent competition, and ensuring a reliable supply of
labor.
   (b) Projects differ and project labor agreements differ. All
taxpayers' interests are best served by ensuring that:
   (1) All project labor agreements used for public projects must
contain fundamental taxpayer protections.
   (2) Local governments are free to choose whether to adopt or not
to adopt project labor agreements containing these taxpayer
protections for a particular project or projects.
  SEC. 2.  Chapter 2.8 (commencing with Section 2500) is added to
Part 1 of Division 2 of the Public Contract Code, to read:
      CHAPTER 2.8.  PROJECT LABOR AGREEMENTS


   2500.  (a) A public entity may use, enter into, or require
contractors to enter into, a project labor agreement for a
construction project only if the agreement includes all of the
following taxpayer protection provisions:
   (1) The agreement prohibits discrimination based on race, national
origin, religion, sex, sexual orientation, political affiliation, or
membership in a labor organization in hiring and dispatching workers
for the project.
   (2) The agreement permits all qualified contractors and
subcontractors to bid for and be awarded work on the project without
regard to whether they are otherwise parties to collective bargaining
agreements.
   (3) The agreement contains an agreed-upon protocol concerning drug
testing for workers who will be employed on the project.
   (4) The agreement contains guarantees against work stoppages,
strikes, lockouts, and similar disruptions of the project.
   (5) The agreement provides that disputes arising from the
agreement shall be resolved by a neutral arbitrator.
   (b) For purposes of this chapter, both of the following
definitions apply:
   (1) "Project labor agreement" means a prehire collective
bargaining agreement that establishes terms and conditions of
employment for a specific construction project or projects and is an
agreement described in Section 158(f) of Title 29 of the United
States Code.
   (2) "Public entity" means a public entity as defined in Section
1100.
   2501.  The members of the governing board of a local public entity
may choose by majority vote whether to use, enter into, or require
contractors to enter into a project labor agreement that includes all
the taxpayer protection provisions of Section 2500 for a specific
project or projects awarded by that entity and whether to allocate
funding to a specific project covered by such an agreement. A charter
provision, initiative, or ordinance shall not prevent the governing
board of a local public entity, other than a charter city, from
exercising this authority on a project-specific basis.
   2502.  If a charter provision, initiative, or ordinance of a
charter city prohibits the governing board's consideration of a
project labor agreement that includes all the taxpayer protection
provisions of Section 2500 for a project to be awarded by the city,
or prohibits the governing board from considering whether to allocate
funds to a city-funded project covered by such an agreement, then
state funding or financial assistance shall not be used to support
that project. This section shall not be applicable until January 1,
2015, for charter cities in which a charter provision, initiative, or
ordinance in effect prior to November 1, 2011, would disqualify a
project from receiving state funding or financial assistance.