BILL NUMBER: AB 1939	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Daly

                        FEBRUARY 19, 2014

   An act to add Section 1784 to the Labor Code, relating to public
works.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1939, as introduced, Daly. Public works: prevailing wages:
contractor's costs.
   Existing law generally requires the payment of not less than the
prevailing rate of per diem wages for work of a similar character in
the locality in which the public work, as defined, is performed, and
not less than the prevailing rate for holiday and overtime work, to
workers employed on public works projects of greater than $1,000.
Existing law requires an awarding body, as defined, to obtain the
general prevailing rate of per diem wages, as determined by the
Department of Industrial Relations.
   Existing law authorizes a contractor to bring an action in a court
of competent jurisdiction to recover from an awarding body specified
labor costs, penalties, and legal fees if either the awarding body
previously affirmatively represented to the contractor that the work
to be covered by the bid or contract was not a "public work" or the
awarding body received actual written notice from the Department of
Industrial Relations that the work to be covered by the bid or
contract is a "public work" and failed to disclose that information
to the contractor. Existing law also authorizes a contractor to bring
an action to recover from the body awarding a contract for a public
work, or otherwise undertaking any public work, any increased costs
incurred by the contractor as a result of a decision of the awarding
body, the Department of Industrial Relations, or a court that
classifies the work as a "public work," if that body, before the bid
opening or awarding of the contract, failed to identify as a "public
work" in the bid specification or in the contract documents that
portion of the work that the decision classifies as a "public work."
   This bill would authorize a contractor to bring an action in a
court of competent jurisdiction to recover from the party it directly
contracts with, any increased costs, including labor costs,
penalties, and legal fees incurred as a result of any decision by the
Department of Industrial Relations, the Labor and Workforce
Development Agency, or a court that classifies, after the time at
which the contracting party accepts the contractor's bid, awards the
contractor a contract when no bid is solicited, or otherwise allows
construction to proceed, the work covered by the project, or any
portion thereof, as a public work, except under the circumstances
specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 1784 is added to the Labor Code, to read:
   1784.  (a) Notwithstanding any other law, a contractor may bring
an action in a court of competent jurisdiction to recover from the
party it directly contracts with, any increased costs attributable
solely to the provisions of this chapter, including, but not limited
to, the difference between the wages actually paid to an employee and
the wages that were required to be paid to an employee under this
chapter, any penalties or other sums required to be paid under this
chapter, and costs and attorney's fees related to this action
incurred by the contractor as a result of any decision by the
Department of Industrial Relations, the Labor and Workforce
Development Agency, or a court that classifies, after the time at
which the contracting party accepts the contractor's bid, awards the
contractor a contract under circumstances where no bid is solicited,
or otherwise allows construction by the contractor to proceed, the
work covered by the project, or any portion thereof, as a "public
work," as defined in this chapter, unless either of the following is
true:
   (1) The developer of a construction project or its agent expressly
advised the contractor with whom it has a direct contract pursuant
to this chapter that the work to be covered by the contract would be
a "public work," as defined in this chapter.
   (2) A contractor on the developer's construction project expressly
advised the other contractors with whom it has a direct contract
that the work subject to the contract would be a "public work," as
defined in this chapter.
   (b) To be entitled to the recovery of increased costs described in
subdivision (a), the contractor who has a direct contract with the
developer shall notify the developer within 30 days after receipt of
the notice of a decision by the Department of Industrial Relations or
the Labor and Workforce Development Agency, or the initiation of any
action in a court alleging, that the work covered by the project, or
any portion thereof, is a "public work," as defined in this chapter.

   (c) A contractor is not required to list any prevailing wages or
apprenticeship standard violations on a prequalification
questionnaire that are the direct result of the failure of the
developer of a construction project or its agent, or a contractor, to
notify contractors that the project, or any portion thereof, should
have been a "public work," as defined in this chapter.
   (d) This section does not apply to private residential projects
built on private property unless the project is built pursuant to an
agreement with a state agency, redevelopment agency, or local public
housing authority.
   (e) This section does not apply if the conduct of the contractor
caused the project to be a "public work," as defined in this chapter,
or if the contractor has actual knowledge that the work is a "public
work," as defined in this chapter.