BILL NUMBER: AB 1939	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 24, 2014

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 amended, 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
  for the  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   when  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
  The party with whom the contractor has a direct
contract  expressly advised the  other contractors with
whom it has a direct contract   contractor  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   shall
notify the party with whom the contractor  has a direct contract
 with the developer shall notify   and 
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.