BILL ANALYSIS Ó
Senate Committee on Labor and Industrial Relations
Ted W. Lieu, Chair
Date of Hearing: April 11, 2012 20011-2012 Regular
Session
Consultant: Martha Gutierrez Fiscal:Yes
Urgency: No
Bill No: SB 1370
Author: Berryhill
As Introduced/Amended: February 12, 2012
SUBJECT
Prevailing wage: public works: director: code list.
KEY ISSUE
Should the State of California require that every California
code section relating to prevailing wage rate requirements be
posted on line?
PURPOSE
To require the Department of Industrial Relations to post a list
of every California code section that relates to prevailing wage
rate requirements for workers employed on public works projects
on their website.
ANALYSIS
Existing law:
1) Requires that not less than the general prevailing wage
rate be paid to all workers employed on a "public works"
project costing over $1,000 dollars and imposes misdemeanor
penalties for a violation of this requirement.
2) Defines "public work" to include, among other things,
construction, alteration, demolition, installation or
repair work done under contract and paid for in whole or in
part out of public funds. (Labor Code §1720)
3) Defines "paid for in whole or in part out of public
funds" as used in public works as the following:
a) Payment of money or the equivalent of money by a
state or political subdivision directly to or on behalf
of the public works contractor, subcontractor, or
developer;
b) Construction work performed by a state or political
subdivision in execution of a project;
c) Transfer of an asset for less than fair market
value;
d) Fees, costs, rents, insurance or bond premiums,
loans, interest rates, or other obligations normally
required in the execution of a contract that are paid,
reduced, charged at less than fair market value, waived
or forgiven;
e) Money loaned that is to be repaid on a contingent
basis; and
f) Credits applied against repayment obligations.
1) Exempts from the definition of "paid for in whole or in
part out of public funds" specified types of affordable
housing, private residential housing, private development
projects, qualified residential projects, low income
housing projects, state manufacturing tax credits, and
single family residential projects.
Under existing law , the Director of the Department of Industrial
Relations is charged with the responsibility of determining the
prevailing wage rate for public works projects. Among other
things, the determination of the prevailing wage rate includes
the basic hourly rate being paid to a majority of workers
engaged in the particular craft, classification or type of work
within the locality and in the nearest labor market area, as
specified.
Hearing Date: April 11, 2012 SB 1370
Consultant: Martha Gutierrez Page 2
Senate Committee on Labor and Industrial Relations
This Bill would require the Director of the Department of
Industrial Relations to post a list on their website of every
California Code section, and the language of those sections,
that relates to prevailing wage rate requirements for workers
employed on a public works project.
COMMENTS
1. Need for this bill?
The Department of Industrial relations manages a public
website where they provide information on labor related issues
and questions. Their website provides links to various
recourses including a section entitled "Labor law" in which an
entire section is devoted to public works/prevailing wage
questions. Under the public works/prevailing wage tab you can
also find links for information on prevailing wage
regulations, prevailing wage determinations, how to file a
public works complaint, prevailing wage frequently asked
questions and links to the actual labor code sections dealing
with prevailing wage. More importantly, the website also
provides a link to the Public Works manual which delves into a
deeper discussion on who the law protects, what contractors
must do to comply with the law, along with all definitions
pertaining to public works.
This bill would require DIR to create a new section on their
website which would provide a list of all code sections
related to prevailing wage rate requirements for workers
employed on public works projects.
It is unclear to staff weather this bill is necessary given
the information on public works/prevailing wage currently
provided on the Department of Industrial Relations website.
2. Proponent Arguments :
The author and sponsor argue that there is no one specific
location where all projects subject to state mandated
prevailing wage are listed. Proponents believe this one-stop
Hearing Date: April 11, 2012 SB 1370
Consultant: Martha Gutierrez Page 3
Senate Committee on Labor and Industrial Relations
web-based listing would increase government transparency and
improve compliance with both project owners and contractors
alike.
3. Opponent Arguments :
None on file
4. Prior Legislation :
No previous legislation.
SUPPORT
Associated Builders and Contractors of California (Sponsor)
OPPOSITION
None received
Hearing Date: April 11, 2012 SB 1370
Consultant: Martha Gutierrez Page 4
Senate Committee on Labor and Industrial Relations