BILL ANALYSIS Ó
SB 377
Page 1
SENATE THIRD READING
SB 377 (Lieu)
As Amended September 3, 2013
Majority vote
SENATE VOTE :28-10
LABOR & EMPLOYMENT 5-2 APPROPRIATIONS 12-5
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|Ayes:|Roger Hernández, Alejo, |Ayes:|Gatto, Bocanegra, |
| |Chau, Gomez, Holden | |Bradford, |
| | | |Ian Calderon, Campos, |
| | | |Eggman, Gomez, Hall, |
| | | |Holden, Pan, Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Morrell, Gorell |Nays:|Harkey, Bigelow, |
| | | |Donnelly, Linder, Wagner |
| | | | |
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SUMMARY : Enacts various requirements related to prevailing wage
determinations and related assessments. Specifically, this
bill :
1)Provides that the period of service for assessments for
prevailing wage violations shall be tolled for the period of
time required by the Department of Industrial Relations (DIR)
to determine whether a project is a public work.
2)Provides that the period of service for assessments shall also
be tolled for the period of time that a contractor or
subcontractor fails to provide certified payroll records in a
timely manner, as specified.
3)Provides that these tolling provisions shall also apply to the
period of time for commencing an action brought by a joint
labor-management committee.
4)Provides that when a request is made to DIR for a
determination of whether a specific project or type of work is
a public work, DIR shall make that determination within 60
days of receipt of the last notice of support or opposition
from any interested party.
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5)Specifies that if DIR deems that the complexity of the request
requires additional time, DIR may have up to an additional 60
days, as specified.
6)Provides that for projects or types of work that are otherwise
private development projects receiving public funds as
specified, DIR shall make the determination within 120 days of
receipt of the last notice of support or opposition from any
interested party.
7)Provides that if the requestor of a determination is not a
political subdivision, the requester shall, within 15 days,
serve a copy of the request upon the political subdivision.
In such a case the awarding body shall advise DIR of its
position regarding the request within 30 days of receipt of
the request.
8)Provides for an administrative appeal process, as specified.
9)Provides that DIR shall have quasi-legislative authority to
determine coverage of projects or other types of work under
existing prevailing wage laws and a final determination on any
appeal is subject to judicial review, as specified.
10)Provides that these determinations, and any determinations
relating to the general prevailing wage rate (as specified)
shall be exempt from the Administrative Procedure Act.
11)Makes related findings and declarations.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill will result in annual special fund costs of
$860,000 to DIR.
COMMENTS : The bill enacts various provisions related to
determinations of whether a specific project is a "public works"
project and therefore triggers prevailing wage requirements
under existing law.
Supporters argue that current law lacks a sufficient
notification requirement for public works projects to inform the
public about whether a project is determined to be a public
works. They contend that this allows an awarding body to put
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out a project for bid without a determination - resulting in the
contractor to pay below the prevailing wage, depriving workers
of their lawful wages.
Supporters further argue that current law fails to provide a set
deadline for the Labor Commissioner to serve a civil wage and
penalty assessment to determine a violation. They maintain that
this lack of a streamlined appellate process causes workers to
have to suffer through a long waiting period before learning if
there was in fact a wage violation. Supporters contend when a
decision is finally granted, the long wait time often leaves
workers without any options because the statute of limitations
for legal action has run out - eliminating the worker's
opportunity to collected the owed wages.
According to the Associated Builders and Contractors of
California, this bill extends the date that the Labor
Commissioner can assess non-payment of prevailing wage
penalties.
Opponents believe this bill unreasonably extends contractor
exposure to legal challenges and liability for new fines and
penalties because the date actions can commence is based on when
the Division of Labor Standards Enforcement makes a
determination of whether or not a project is a public works.
They contend that the construction industry is just beginning to
recover. California also has some of the most stringent labor
laws and penalties for violating those requirements. Opponents
do not see a reason to increase contractor liability at this
time.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0002130