BILL ANALYSIS Ó
AB 2744
Page 1
Date of Hearing: April 23, 2014
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 2744 (Labor Committee) - As Introduced: February 27, 2014
SUBJECT : Public works: apprenticeship programs.
SUMMARY : Makes necessary conforming changes to reflect a
recent merger of duties within the Division of Labor Standards
Enforcement (DLSE) and more fully integrate enforcement of
apprenticeship standards within the enforcement mechanisms
already available to address other violations of the
requirements for contractors and subcontractors on public works
projects under existing law.
FISCAL EFFECT : Unknown
COMMENTS : Effective June 27, 2012, the Division of
Apprenticeship Standards Public Works Unit and the Electrician
Certification Unit were merged with the Division of Labor
Standards Enforcement (DLSE) Public Works Unit. This merger
allows DLSE to enforce all aspects of public works law
effectively and comprehensively and makes DLSE responsible for
enforcing public works laws involving the payment of wages for
journey workers and apprentices and for apprenticeship ratio
complaints. However, some code sections were not properly
amended to reflect the changes made by this reorganization.
This bill would make the necessary clean-up changes to reflect
this merger of duties within DLSE and more fully integrate
enforcement of apprenticeship standards within the enforcement
mechanisms already available to address other violations of the
requirements for contractors and subcontractors on public works
projects under existing law.
Recent Merger of Duties Within the DLSE Public Works Unit
Effective June 27, 2012, the law was amended (SB 1038) to
transfer enforcement of apprenticeship standards from the Chief
of the Division of Apprenticeship Standards (DAS) to the Labor
Commissioner, who is the Chief of the Division of Labor
Standards Enforcement.
These apprenticeship standards require contractors and
subcontractors on "public works" (as defined in sections
AB 2744
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1720-1720.6) to comply with four basic requirements listed in
section 1777.5: (1) Timely submit contract award information
to applicable DAS-approved apprenticeship programs that can
supply apprentices to the site of a public work; (2) Timely
request dispatch of DAS-registered apprentices from those
programs to the site; (3) Employ apprentices dispatched within
specified ratios of work performed by apprentices to journeymen;
(4) Make contributions to either the California Apprenticeship
Council (CAC) or to an approved apprenticeship program in
amounts determined by the Director of Industrial Relations to be
prevailing in the area of the public works site.
The transfer of authority neglected to specify that the Labor
Commissioner would follow the same enforcement procedures
already required whenever determining "after an investigation
that there has been a violation of" the Public Works Chapter
(section 1741), and whenever finding that "a contractor or
subcontractor performing a public works project pursuant to this
chapter" is subject to debarment (ineligibility to bid on, be
awarded, or perform work on a public works project under section
1777.1). This bill would require the Labor Commissioner to
follow these same enforcement procedures in addressing
violations of the apprenticeship standards listed in section
1777.5, just as is the case when addressing any other violations
of the prevailing wage laws.
The transfer of authority requires the Labor Commissioner to
determine that a contractor or subcontractor "knowingly
violated" the requirements of the apprenticeship standards found
in section 1777.5 in order to enforce penalty assessments
(section 1777.7(a)(1)). This bill would import to the statutory
text the language only currently found in a regulation duly
adopted by the CAC which already defines this statutory term.
Specific Changes Proposed by This Bill :
(1)Amends current section 1777.1 to require the Labor
Commissioner to use the same procedures specified in section
1777.1 to seek the penalty of debarment against public works
contractors and subcontractors found to be in violation of the
apprenticeship standards identified in section 1777.5. The
bill therefore proposes to delete the phrase "except Section
1777.5" which currently is found in section 1777.1(a) and (b).
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(2)Repeals current section 1777.7 to add amendments revising
section 1777.7 in order to: (1) Require the Labor
Commissioner to use the same procedures specified in section
1741 to enforce monetary penalty assessments against public
works contractors and subcontractors in addressing violations
of the apprenticeship standards identified in section 1777.5;
(2) Make uniform the respective burdens of proof applicable
to contractors, subcontractors and the Labor Commissioner
under section 1742 when hearings are held before the Director
to review assessments for violations of the apprenticeship
standards identified in section 1777.5; (3) Make uniform the
requirement in section 1742 that the amount of penalty
assessments against contractors and subcontractors addressing
apprenticeship violations are only reviewable for abuse of
discretion; and (4)Make more transparent to contractors and
subcontractors the presumption currently found in CAC
regulations that a contractor or subcontractor "knew or should
have known" of the apprenticeship requirements of section
1777.5 under specified circumstances.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
Opposition
None on file.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091