BILL NUMBER: AB 1939	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 2, 2014
	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  , as defined,  to
bring an action in a court of competent jurisdiction to recover from
the  party it   hiring party, as defined, that
the c   ontractor  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
  hiring  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   hiring party that the contractor
 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 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   hiring  party accepts the contractor'
s bid, awards the contractor a contract under circumstances 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
  except to the extent that  either of the
following is true:
   (1) The  owner or  developer  of a construction
project  or its agent expressly advised the contractor that
the work to be covered by the contract would be a "public work," as
defined in this  chapter.   c   hapter,
or is otherwise subject to the payment of prevailing wages. 
   (2) The  hiring  party  with whom the contractor
has a direct contract  expressly advised the contractor that
the work subject to the contract would be a "public work," as
defined in this  chapter.   chapter, or is
otherwise subject to the payment of prevailing wages. 
   (b) To be entitled to the recovery of increased costs described in
subdivision (a), the contractor shall notify the  hiring 
party  with whom the contractor has a direct contract
 and the  owner or  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   owner or developer
or its agent, or a hiring party, to notify the contractor  that
the project, or any portion thereof,  should have been
  was  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. 
   (f) For purposes of this section, "hiring party" means the party
that has a direct contract for services provided by the contractor
who is seeking recovery pursuant to subdivision (a) on a private
works project that was subsequently determined to be a public work by
the Department of Industrial Relations or the Labor and Workforce
Development Agency, or by the initiation of any action in a court
alleging that the work covered by the project, or any portion
thereof, was a public work.  
   (g) A contractor may seek recovery pursuant to this section only
from a hiring party with whom the contractor has a direct contract.
 
   (h) For purposes of this section, "contractor" means a person or
entity licensed by the Contractors' State Licensing Board that has a
direct contract with the hiring party to provide services on private
property or for the benefit of a private owner or developer.