Amended in Senate June 16, 2014

Amended in Senate June 3, 2014

Amended in Senate March 18, 2014

Amended in Senate June 25, 2013

Amended in Assembly May 28, 2013

Amended in Assembly April 22, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 26


Introduced by Assembly Member Bonilla

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(Coauthor: Senator Hueso)

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December 3, 2012


An act to amend Section 1720 ofbegin delete, and to add Section 1720.7 to,end delete the Labor Code, relating to prevailing wage.

LEGISLATIVE COUNSEL’S DIGEST

AB 26, as amended, Bonilla. Construction: prevailing wage.

Existing law defines the term “public works” for purposes of requirements regarding the payment of prevailing wages. Existing law generally defines “public works” to include construction, alteration, demolition, installation, or repair work done under contract and paid in whole or in part out of public funds. Existing law defines “construction” for these purposes to include work performed during the design and preconstruction phases of construction. Existing law makes a willful violation of laws relating to payment of prevailing wages on public works a misdemeanor.

This bill would revise the definition of “construction” to also include work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite.begin delete The bill would also expand the definition of “public works,” for the purposes of requirements regarding the payment of prevailing wages, to also include any task relating to the collecting or sorting, or both, of refuse or recyclable metals, such as copper, steel, and aluminum, performed at a public works jobsite.end delete By expanding the definition of a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1720 of the Labor Code is amended to
2read:

3

1720.  

(a) As used in this chapter, “public works” means:

4(1) Construction, alteration, demolition, installation, or repair
5work done under contract and paid for in whole or in part out of
6public funds, except work done directly by any public utility
7company pursuant to order of the Public Utilities Commission or
8other public authority. For purposes of this paragraph,
9“construction” includes work performed during the design and
10preconstruction phases of construction, including, but not limited
11to, inspection and land surveying work, and work performed during
12the postconstruction phases of construction, including, but not
13limited to, all cleanup work at the jobsite. For purposes of this
14paragraph, “installation” includes, but is not limited to, the
15assembly and disassembly of freestanding and affixed modular
16office systems.

17(2) Work done for irrigation, utility, reclamation, and
18improvement districts, and other districts of this type. “Public
19work” does not include the operation of the irrigation or drainage
P3    1system of any irrigation or reclamation district, except as used in
2Section 1778 relating to retaining wages.

3(3) Street, sewer, or other improvement work done under the
4direction and supervision or by the authority of any officer or
5public body of the state, or of any political subdivision or district
6thereof, whether the political subdivision or district operates under
7a freeholder’s charter or not.

8(4) The laying of carpet done under a building lease-maintenance
9contract and paid for out of public funds.

10(5) The laying of carpet in a public building done under contract
11and paid for in whole or in part out of public funds.

12(6) Public transportation demonstration projects authorized
13pursuant to Section 143 of the Streets and Highways Code.

14(b) For purposes of this section, “paid for in whole or in part
15out of public funds” means all of the following:

16(1) The payment of money or the equivalent of money by the
17state or political subdivision directly to or on behalf of the public
18works contractor, subcontractor, or developer.

19(2) Performance of construction work by the state or political
20subdivision in execution of the project.

21(3) Transfer by the state or political subdivision of an asset of
22value for less than fair market price.

23(4) Fees, costs, rents, insurance or bond premiums, loans, interest
24rates, or other obligations that would normally be required in the
25execution of the contract, that are paid, reduced, charged at less
26than fair market value, waived, or forgiven by the state or political
27subdivision.

28(5) Money loaned by the state or political subdivision that is to
29be repaid on a contingent basis.

30(6) Credits that are applied by the state or political subdivision
31against repayment obligations to the state or political subdivision.

32(c) Notwithstanding subdivision (b):

33(1) Private residential projects built on private property are not
34subject to the requirements of this chapter unless the projects are
35built pursuant to an agreement with a state agency, redevelopment
36agency, or local public housing authority.

37(2) If the state or a political subdivision requires a private
38developer to perform construction, alteration, demolition,
39installation, or repair work on a public work of improvement as a
40condition of regulatory approval of an otherwise private
P4    1development project, and the state or political subdivision
2contributes no more money, or the equivalent of money, to the
3overall project than is required to perform this public improvement
4work, and the state or political subdivision maintains no proprietary
5interest in the overall project, then only the public improvement
6work shall thereby become subject to this chapter.

7(3) If the state or a political subdivision reimburses a private
8developer for costs that would normally be borne by the public,
9or provides directly or indirectly a public subsidy to a private
10development project that is de minimis in the context of the project,
11an otherwise private development project shall not thereby become
12subject to the requirements of this chapter.

13(4) The construction or rehabilitation of affordable housing units
14for low- or moderate-income persons pursuant to paragraph (5) or
15(7) of subdivision (e) of Section 33334.2 of the Health and Safety
16Code that are paid for solely with moneys from the Low and
17Moderate Income Housing Fund established pursuant to Section
1833334.3 of the Health and Safety Code or that are paid for by a
19combination of private funds and funds available pursuant to
20Section 33334.2 or 33334.3 of the Health and Safety Code do not
21constitute a project that is paid for in whole or in part out of public
22funds.

23(5) “Paid for in whole or in part out of public funds” does not
24include tax credits provided pursuant to Section 17053.49 or 23649
25of the Revenue and Taxation Code.

26(6) Unless otherwise required by a public funding program, the
27construction or rehabilitation of privately owned residential projects
28is not subject to the requirements of this chapter if one or more of
29the following conditions are met:

30(A) The project is a self-help housing project in which no fewer
31than 500 hours of construction work associated with the homes
32are to be performed by the home buyers.

33(B) The project consists of rehabilitation or expansion work
34associated with a facility operated on a not-for-profit basis as
35 temporary or transitional housing for homeless persons with a total
36project cost of less than twenty-five thousand dollars ($25,000).

37(C) Assistance is provided to a household as either mortgage
38assistance, downpayment assistance, or for the rehabilitation of a
39single-family home.

P5    1(D) The project consists of new construction, expansion, or
2rehabilitation work associated with a facility developed by a
3nonprofit organization to be operated on a not-for-profit basis to
4provide emergency or transitional shelter and ancillary services
5and assistance to homeless adults and children. The nonprofit
6organization operating the project shall provide, at no profit, not
7less than 50 percent of the total project cost from nonpublic
8sources, excluding real property that is transferred or leased. Total
9project cost includes the value of donated labor, materials,
10architectural, and engineering services.

11(E) The public participation in the project that would otherwise
12meet the criteria of subdivision (b) is public funding in the form
13of below-market interest rate loans for a project in which
14occupancy of at least 40 percent of the units is restricted for at
15least 20 years, by deed or regulatory agreement, to individuals or
16families earning no more than 80 percent of the area median
17income.

18(d) Notwithstanding any provision of this section to the contrary,
19the following projects shall not, solely by reason of this section,
20be subject to the requirements of this chapter:

21(1) Qualified residential rental projects, as defined by Section
22142(d) of the Internal Revenue Code, financed in whole or in part
23through the issuance of bonds that receive allocation of a portion
24of the state ceiling pursuant to Chapter 11.8 of Division 1
25(commencing with Section 8869.80) of the Government Code on
26or before December 31, 2003.

27(2) Single-family residential projects financed in whole or in
28part through the issuance of qualified mortgage revenue bonds or
29qualified veterans’ mortgage bonds, as defined by Section 143 of
30the Internal Revenue Code, or with mortgage credit certificates
31under a Qualified Mortgage Credit Certificate Program, as defined
32 by Section 25 of the Internal Revenue Code, that receive allocation
33of a portion of the state ceiling pursuant to Chapter 11.8 of Division
341 (commencing with Section 8869.80) of the Government Code
35on or before December 31, 2003.

36(3) Low-income housing projects that are allocated federal or
37state low-income housing tax credits pursuant to Section 42 of the
38Internal Revenue Code, Chapter 3.6 of Division 31 (commencing
39with Section 50199.4) of the Health and Safety Code, or Section
P6    112206, 17058, or 23610.5 of the Revenue and Taxation Code, on
2or before December 31, 2003.

3(e) If a statute, other than this section, or a regulation, other than
4a regulation adopted pursuant to this section, or an ordinance or a
5contract applies this chapter to a project, the exclusions set forth
6in subdivision (d) do not apply to that project.

7(f) For purposes of this section, references to the Internal
8Revenue Code mean the Internal Revenue Code of 1986, as
9amended, and include the corresponding predecessor sections of
10the Internal Revenue Code of 1954, as amended.

11(g) The amendments made to this section by either Chapter 938
12of the Statutes of 2001 or the act adding this subdivision shall not
13be construed to preempt local ordinances requiring the payment
14of prevailing wages on housing projects.

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SEC. 2.  

Section 1720.7 is added to the Labor Code, to read:

16

1720.7.  

For the limited purposes of Article 2 (commencing
17with Section 1770), “public works” also means any task relating
18to the collecting or sorting, or both, of refuse or recyclable metals,
19such as copper, steel, and aluminum, performed at a public works
20jobsite.

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21

begin deleteSEC. 3.end delete
22begin insertSEC. 2.end insert  

No reimbursement is required by this act pursuant to
23Section 6 of Article XIII B of the California Constitution because
24the only costs that may be incurred by a local agency or school
25district will be incurred because this act creates a new crime or
26infraction, eliminates a crime or infraction, or changes the penalty
27for a crime or infraction, within the meaning of Section 17556 of
28the Government Code, or changes the definition of a crime within
29the meaning of Section 6 of Article XIII B of the California
30Constitution.



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