Amended in Assembly June 27, 2016

Amended in Assembly April 18, 2016

Senate Bill No. 693

Introduced by Senator Hueso

(Principal coauthor: Assembly Member Ridley-Thomas)

February 27, 2015

An act to amend Sections 17250.25 and 17407.5 of the Education Code, begin insert to amend Section 25536.7 of the Health and Safety Code, end insert and to amend Sections begin insert 10191, end insert 20119.1, 20119.3, begin delete and 20155.4 end delete begin insert 20155.4, and 22164 end insert of, to repeal Section 20155.2 of, and to add Chapter 2.9 (commencing with Section 2600) to Part 1 of Division 2 of, the Public Contract Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

SB 693, as amended, Hueso. Public contracts: skilled and trained workforce.

Existing law establishes specific instances where a public entity is required to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project.

This bill would establish provisions to be generally applicable when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. The bill would also authorize a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce to complete a contract or project.

Existing law relating to school facilities provides for the lease of property and prohibits the governing board of a school district from entering into specific lease agreements for the construction of buildings for the use of the school district with any entity unless the entity provides to the governing board an enforceable commitment that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades.

Existing law relating to school facilities, operative July 1, 2016, and until January 1, 2025, also authorizes a school district, with the approval of the governing board of the school district, to procure design-build contracts for certain public works projects, as provided, and prohibits a design-build entity from being prequalified or shortlisted unless the entity provides a similar enforceable commitment to the school district with respect to the use of a skilled and trained workforce.

begin insert

Existing law relating to the Department of General Services and the Department of Corrections and Rehabilitation authorizes the Director of General Services and the Secretary of the Department of Corrections and Rehabilitation to procure design-build contracts for certain public works projects, as provided, and prohibits a design-build entity from being prequalified or shortlisted unless the entity provides a similar enforceable commitment to the departments with respect to the use of a skilled and trained workforce.

end insert begin insert

Existing law relating to local agencies authorizes a local agency to procure design-build contracts for certain public works projects, as provided, and prohibits a design-build entity from being prequalified or shortlisted unless the entity provides a similar enforceable commitment to a local agency with respect to the use of a skilled and trained workforce.

end insert

Existing law, until January 1, 2021, establishes a pilot program to authorize the Los Angeles Unified School District to use a best value procurement method for bid evaluation and selection for certain public projects (LAUSD pilot program). The LAUSD pilot program precludes the prequalification or shortlisting of a best value entity unless the entity provides a similar enforceable commitment to the governing board of the district with respect to the use of a skilled and trained workforce.

Existing law establishes a pilot program to allow the Counties of Alameda, Los Angeles, Riverside, San Bernardino, San Diego, Solano, and Yuba to select a bidder on the basis of best value, as defined, for specific construction projects (pilot program for counties). The pilot program for counties precludes the prequalification or shortlisting of a best value contractor unless the contractor provides a similar enforceable commitment to the county with respect to the use of a skilled and trained workforce.

This bill would revise those provisions specifically applicable to school facilities, begin insert the Department of General Services, the Department of Corrections and Rehabilitation, and local agency design-build projects, end insert the LAUSD pilot program, and the pilot program for counties to require, instead, an enforceable commitment for the use of a skilled and trained workforce in accordance with the above-described generally applicable provisions for the use of a skilled and trained workforce, unless there is a prescribed project labor agreement.

The bill, except as specified, would not apply to contracts advertised for bid or awarded before January 1, begin delete 2016. end delete begin insert 2017. end insert

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 17250.25 of the Education Code, as added
by Section 2 of Chapter 752 of the Statutes of 2015, is amended
to read:

17250.25.  

The procurement process for design-build projects
shall progress as follows:

(a) (1) The school district shall prepare a set of documents
setting forth the scope and estimated price of the project. The
documents may include, but are not limited to, the size, type, and
desired design character of the project, performance specifications
covering the quality of materials, equipment, workmanship,
preliminary plans or building layouts, or any other information
deemed necessary to describe adequately the school district’s
needs. The performance specifications and any plans shall be
prepared by a design professional who is duly licensed and
registered in California.

(2) The documents shall not include a design-build-operate
contract for a project. The documents, however, may include
operations during a training or transition period, but shall not
include long-term operations for a project.

(b) The school district shall prepare and issue a request for
qualifications in order to prequalify, or develop a short-list of, the
design-build entities whose proposals shall be evaluated for final
selection. The request for qualifications shall include, but is not
limited to, all of the following elements:

(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be
used by the school district to evaluate proposals, the procedure for
final selection of the design-build entity, and any other information
deemed necessary by the school district to inform interested parties
of the contracting opportunity.

(2) Significant factors that the school district reasonably expects
to consider in evaluating qualifications, including technical design
and construction expertise, acceptable safety record, and all other
nonprice-related factors.

(3) A standard template request for statements of qualifications
prepared by the school district. In preparing the standard template,
the school district may consult with the construction industry, the
building trades and surety industry, and other school districts
interested in using the authorization provided by this chapter. The
template shall require the following information:

(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time
of statement of qualification submission who will perform work
on the project.

(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that the proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, and a financial statement
that ensures that the design-build entity has the capacity to
complete the project.

(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to, information
on the revocation or suspension of any license, credential, or
registration.

(D) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience
history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing
to form the organization.

(G) An acceptable safety record. A proposer’s safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury or illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category, or if
the proposer is a party to an alternative dispute resolution system,
as provided for in Section 3201.5 of the Labor Code.

(4) (A) The information required under this subdivision shall
be certified under penalty of perjury by the design-build entity and
its general partners or joint venture members.

(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code) shall not be open to public
inspection.

(c) (1) A design-build entity shall not be prequalified or
shortlisted unless the entity provides an enforceable commitment
to the school district that the entity and its subcontractors at every
tier will use a skilled and trained workforce to perform all work
on the project or contract that falls within an apprenticeable
occupation in the building and construction trades, in accordance
with Chapter 2.9 (commencing with Section 2600) of Part 1 of
Division 2 of the Public Contract Code.

(2) This subdivision shall not apply if begin delete either: end delete begin insert any of the following
requirements are met: end insert

(A) The school district has entered into a project labor agreement
that will bind all contractors and subcontractors performing work
on the project or contract begin insert to use a skilled and trained workforce, end insert
and the entity agrees to be bound by that project labor agreement.

begin insert

(B) The project or contract is being performed under the
extension or renewal of a project labor agreement that was entered
into by the school district prior to January 1, 2017.

end insert begin delete

(B)

end delete

begin insert (C) end insert  The entity has entered into a project labor agreement that
will bind the entity and all its subcontractors at every tier
performing the project or begin delete contract. end delete begin insert contract to use a skilled and
trained workforce. end insert

(3) For purposes of this subdivision, “project labor agreement”
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500 of the Public Contract Code.

(d) Based on the documents prepared as described in subdivision
(a), the school district shall prepare a request for proposals that
invites prequalified or short-listed entities to submit competitive
sealed proposals in the manner prescribed by the school district.
The request for proposals shall include, but need not be limited
to, the following elements:

(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the school district to evaluate proposals, whether
the contract will be awarded on the basis of low bid or best value,
and any other information deemed necessary by the school district
to inform interested parties of the contracting opportunity.

(2) Significant factors that the school district reasonably expects
to consider in evaluating proposals, including, but not limited to,
cost or price and all nonprice-related factors.

(3) The relative importance or the weight assigned to each of
the factors identified in the request for proposals.

(4) Where a best value selection method is used, the school
district may reserve the right to request proposal revisions and
hold discussions and negotiations with responsive proposers, in
which case the school district shall so specify in the request for
proposals and shall publish separately or incorporate into the
request for proposals applicable procedures to be observed by the
school district to ensure that any discussions or negotiations are
conducted in good faith.

(e) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum
bids by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.

(f) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:

(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however,
shall be weighted as deemed appropriate by the school district:

(A) Price, unless a stipulated sum is specified.

(B) Technical design and construction expertise.

(C) Life-cycle costs over 15 or more years.

(2) Pursuant to subdivision (d), the school district may hold
discussions or negotiations with responsive proposers using the
process articulated in the school district’s request for proposals.

(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided,
provided that no more than three proposers are required to be
ranked.

(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the school
district to have offered the best value to the public.

(5) Notwithstanding any other provision of law, upon issuance
of a contract award, the school district shall publicly announce its
award, identifying the design-build entity to which the award is
made, along with a statement regarding the basis of the award.

(6) The statement regarding the school district’s contract award,
described in paragraph (5), and the contract file shall provide
sufficient information to satisfy an external audit.

SEC. 2.  

Section 17407.5 of the Education Code is amended to
read:

17407.5.  

(a) The governing board of a school district shall not
enter into an agreement pursuant to Section 17406 or 17407 with
any entity unless the entity provides to the governing board of the
school district an enforceable commitment that the entity and its
subcontractors at every tier will use a skilled and trained workforce
to perform all work on the project or contract that falls within an
apprenticeable occupation in the building and construction trades,
in accordance with Chapter 2.9 (commencing with Section 2600)
of Part 1 of Division 2 of the Public Contract Code.

(b) Subdivision (a) shall not apply if begin delete either: end delete begin insert any of the following
requirements are met: end insert

(1) The governing board of the school district has entered into
a project labor agreement that will bind all contractors and
subcontractors performing work on the project or contract begin insert to use
a skilled and trained workforce end insert and the entity agrees to be bound
by that project labor agreement.

begin insert

(2) The project or contract is being performed under the
extension or renewal of a project labor agreement that was entered
into by the school district prior to January 1, 2017.

end insert begin delete

(2)

end delete

begin insert (3) end insert  The entity has entered into a project labor agreement that
will bind the entity and all its subcontractors at every tier
performing the project or begin delete contract. end delete begin insert end insert begin insert contract to use a skilled and
trained workforce. end insert

(c) For purposes of this section, “project labor agreement” has
the same meaning as in paragraph (1) of subdivision (b) of Section
2500 of the Public Contract Code.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 25536.7 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

25536.7.  

(a) (1) An owner or operator of a stationary source
that is engaged in activities described in Code 324110 or 325110
of the North American Industry Classification System (NAICS),
as that code read on January 1, 2014, and with one or more covered
processes that is required to prepare and submit an RMP pursuant
to this article, when contracting for the performance of
construction, alteration, demolition, installation, repair, or
maintenance work at the stationary source, shall require that its
contractors and any subcontractors use a skilled and trained
workforce to perform all onsite work within an apprenticeable
occupation in the building and construction trades. This section
shall not apply to oil and gas extraction operations.

(2) The Chief of the Division of Apprenticeship Standards of
the Department of Industrial Relations may approve a curriculum
of in-person classroom and laboratory instruction for approved
advanced safety training for workers at high hazard facilities. That
safety training may be provided by an apprenticeship program
approved by the chief or by instruction provided by the Chancellor
of the California Community Colleges. The chief shall approve a
curriculum in accordance with this paragraph by January 1, 2016,
and shall periodically revise the curriculum to reflect current best
practices. Upon receipt of certification from the apprenticeship
program or community college, the chief shall issue a certificate
to a worker who completes the approved curriculum.

(3) For purposes of paragraph (2) of subdivision (b) of Section
3075 of the Labor Code, a stationary source covered by this section
shall be considered in determining whether existing apprenticeship
programs do not have the capacity, or have neglected or refused,
to dispatch sufficient apprentices to qualified employers who are
willing to abide by the applicable apprenticeship standards.

(4) This section shall not apply to contracts awarded before
January 1, 2014, unless the contract is extended or renewed after
that date.

(5) (A) This section shall not apply to the employees of the
owner or operator of the stationary source or prevent the owner or
operator of the stationary source from using its own employees to
perform any work that has not been assigned to contractors while
the employees of the contractor are present and working.

(B) An apprenticeship program approved by the chief may
enroll, with advanced standing, applicants with relevant prior work
experience at a stationary source that is subject to this section, in
accordance with the approved apprenticeship standards of the
program.

(6) The criteria of subparagraph (A) of paragraph begin delete (9) end delete begin insert (10) end insert of
subdivision (b), subparagraph (C) of paragraph begin delete (9) end delete begin insert (10) end insert of
subdivision (b), and subparagraph (B) of paragraph begin delete (10) end delete begin insert (11) end insert of
subdivision (b) shall not apply to either of the following:

(A) To the extent that the contractor has requested qualified
workers from the local hiring halls that dispatch workers in the
apprenticeable occupation and, due to workforce shortages, the
contractor is unable to obtain sufficient qualified workers within
48 hours of the request, Saturdays, Sundays, and holidays excepted.
This section shall not prevent contractors from obtaining workers
from any source.

(B) To the extent that compliance is impracticable because an
emergency requires immediate action to prevent harm to public
health or safety or to the environment, but the criteria shall apply
as soon as the emergency is over or it becomes practicable for
contractors to obtain a qualified workforce.

(7) The requirement specified in paragraph (1) for a skilled and
trained workforce, as defined in paragraph begin delete (10) end delete begin insert (11) end insert of subdivision
(b), shall apply to each individual contractor’s and subcontractor’s
onsite workforce.

(8) This section does not make the construction, alteration,
demolition, installation, repair, or maintenance work at a stationary
source that is subject to this section a public work, within the
meaning of Chapter 1 (commencing with Section 1720) of Part 7
of Division 2 of the Labor Code. begin insert This section does not preclude
the use of an alternative workweek schedule adopted pursuant to
Section 511 or 514 of the Labor Code. end insert

(b) As used in this section:

(1) “Apprenticeable occupation” means an occupation for which
the chief has approved an apprenticeship program pursuant to
Section 3075 of the Labor Code.

(2) “Approved advanced safety training for workers at high
hazard facilities” means a curriculum approved by the chief
pursuant to paragraph (2) of subdivision (a).

(3) “Building and construction trades” has the same meaning
as in Section 3075.5 of the Labor Code.

(4) “Chief” means the Chief of the Division of the
Apprenticeship Standards of the Department of Industrial Relations.

(5) “Construction,” “alteration,” “demolition,” “installation,”
“repair,” and “maintenance” have the same meanings as in Sections
1720 and 1771 of the Labor Code.

begin insert

(6) “Graduate of an apprenticeship program” means either of
the following:

end insert begin insert

(A) An individual that has been issued a certificate of completion
under the authority of the California Apprenticeship Council for
completing an apprenticeship program approved by the chief
pursuant to Section 3075 of the Labor Code.

end insert begin insert

(B) An individual that has completed an apprenticeship program
located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.

end insert begin delete

(6)

end delete

begin insert (7) end insert  “Onsite work” shall not include catalyst handling and
loading, chemical cleaning, or inspection and testing that was not
within the scope of a prevailing wage determination issued by the
Director of Industrial Relations as of January 1, 2013.

begin delete

(7)

end delete

begin insert (8) end insert  “Prevailing hourly wage rate” means the general prevailing
rate of per diem wages, as determined by the Director of Industrial
Relations pursuant to Sections 1773 and 1773.9 of the Labor Code,
but does not include shift differentials, travel and subsistence, or
holiday pay. Notwithstanding subdivision (c) of Section 1773.1
of the Labor Code, the requirement that employer payments not
reduce the obligation to pay the hourly straight time or overtime
wages found to be prevailing shall not apply if otherwise provided
in a bona fide collective bargaining agreement covering the worker.

begin delete

(8)

end delete

begin insert (9) end insert  “Registered apprentice” means an apprentice registered in
an apprenticeship program approved by the chief pursuant to
Section 3075 of the Labor Code who is performing work covered
by the standards of that apprenticeship program and receiving the
supervision required by the standards of that apprenticeship
program.

begin delete

(9)

end delete

begin insert (10) end insert  “Skilled journeyperson” means a worker who meets all of
the following criteria:

(A) The worker either graduated from an apprenticeship program
for the applicable occupation that was approved by the chief, or
has at least as many hours of on-the-job experience in the
applicable occupation that would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the chief.

(B) The worker is being paid at least a rate equivalent to the
prevailing hourly wage rate for a journeyperson in the applicable
occupation and geographic area.

(C) The worker has completed within the prior two calendar
years at least 20 hours of approved advanced safety training for
workers at high hazard facilities. This requirement applies only to
work performed on or after January 1, 2018.

begin delete

(10)

end delete

begin insert (11) end insert  “Skilled and trained workforce” means a workforce that
meets both of the following criteria:

(A) All the workers are either registered apprentices or skilled
journeypersons.

(B) (i) As of January 1, 2014, at least 30 percent of the skilled
journeypersons are graduates of an apprenticeship program for the
applicable begin delete occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor. end delete begin insert occupation. end insert

(ii) As of January 1, 2015, at least 45 percent of the skilled
journeypersons are graduates of an apprenticeship program for the
applicable begin delete occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor. end delete begin insert occupation. end insert

(iii) As of January 1, 2016, at least 60 percent of the skilled
journeypersons are graduates of an apprenticeship program for the
applicable begin delete occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor. end delete begin insert occupation. end insert

begin delete SEC. 3. end delete

begin insert SEC. 4. end insert   

Chapter 2.9 (commencing with Section 2600) is added
to Part 1 of Division 2 of the Public Contract Code, to read:

 

Chapter  2.9. Skilled and Trained Workforce
Requirements

 

2600.  

(a) This chapter applies when a public entity is required
by statute or regulation to obtain an enforceable commitment that
a bidder, contractor, or other entity will use a skilled and trained
workforce to complete a contract or project.

(b) A public entity may require a bidder, contractor, or other
entity to use a skilled and trained workforce to complete a contract
or project regardless of whether the public entity is required to do
so by a statute or regulation.

2601.  

For purposes of this chapter:

(a) “Apprenticeable occupation” means an occupation for which
the Chief of the Division of Apprenticeship Standards of the
Department of Industrial Relations had approved an apprenticeship
program pursuant to Section 3075 of the Labor Code before
January 1, 2014.

(b) “Chief” means the Chief of the Division of Apprenticeship
Standards of the Department of Industrial Relations.

begin insert

(c) “Graduate of an apprenticeship program” means either of
the following:

end insert begin insert

(1) An individual that has been issued a certificate of completion
under the authority of the California Apprenticeship Council for
completing an apprenticeship program approved by the chief
pursuant to Section 3075 of the Labor Code.

end insert begin insert

(2) An individual that has completed an apprenticeship program
located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.

end insert begin delete

(c)

end delete

begin insert (d) end insert  “Skilled and trained workforce” means a workforce that
meets all of the following conditions:

(1) All the workers performing work in an apprenticeable
occupation in the building and construction trades are either skilled
journeypersons or apprentices registered in an apprenticeship
program approved by the chief.

(2) (A) For work performed on or after January 1, 2017, at least
30 percent of the skilled journeypersons employed to perform work
on the contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable begin delete occupation that was either approved
by the chief pursuant to Section 3075 of the Labor Code or located
outside California and approved for federal purposes pursuant to
the apprenticeship regulations adopted by the federal Secretary of
Labor. end delete begin insert occupation. end insert

(B) For work performed on or after January 1, 2018, at least 40
percent of the skilled journeypersons employed to perform work
on the contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable begin delete occupation that was either approved
by the chief pursuant to Section 3075 of the Labor Code or located
outside California and approved for federal purposes pursuant to
the apprenticeship regulations adopted by the federal Secretary of
Labor. end delete begin insert occupation. end insert

(C) For work performed on or after January 1, 2019, at least 50
percent of the skilled journeypersons employed to perform work
on the contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable begin delete occupation that was either approved
by the chief pursuant to Section 3075 of the Labor Code or located
outside California and approved for federal purposes pursuant to
the apprenticeship regulations adopted by the federal Secretary of
Labor. end delete begin insert occupation. end insert

(D) For work performed on or after January 1, 2020, at least 60
percent of the skilled journeypersons employed to perform work
on the contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable begin delete occupation that was either approved
by the chief pursuant to Section 3075 of the Labor Code or located
outside California and approved for federal purposes pursuant to
the apprenticeship regulations adopted by the federal Secretary of
Labor. end delete begin insert occupation. end insert

(3) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief before January 1, 1995,
up to one-half of the graduation percentage requirements of
paragraph (2) may be satisfied by skilled journeypersons who
commenced working in the apprenticeable occupation before the
chief’s approval of an apprenticeship program for that occupation
in the county in which the project is located.

(4) The apprenticeship graduation percentage requirements of
paragraph (2) are satisfied if, in a particular calendar month, either
of the following is true:

(A) At least the required percentage of the skilled
journeypersons employed by the contractor or subcontractor to
perform work on the contract or project meet the graduation
percentage requirement.

(B) For the hours of work performed by skilled journeypersons
employed by the contractor or subcontractor on the contract or
project, the percentage of hours performed by skilled
journeypersons who met the graduation requirement is at least
equal to the required graduation percentage.

(5) The contractor or subcontractor need not meet the
apprenticeship graduation requirements of paragraph (2) if, during
the calendar month, the contractor or subcontractor employs skilled
journeypersons to perform fewer than 10 hours of work on the
contract or project.

begin insert

(6) A subcontractor need not meet the apprenticeship graduation
requirements of paragraph (2) if both of the following requirements
are met:

end insert begin insert

(A) The subcontractor was not a listed subcontractor under
Section 4104 or a substitute for a listed subcontractor.

end insert begin insert

(B) The subcontract does not exceed one-half of 1 percent of
the price of the prime contract.

end insert begin delete

(d)

end delete

begin insert (e) end insert  “Skilled journeyperson” means a worker who either:

(1) Graduated from an apprenticeship program for the applicable
occupation that was approved by the chief or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor.

(2) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the chief.

2602.  

(a) When a contractor, bidder, or other entity is required
to provide an enforceable commitment that a skilled and trained
workforce will be used to complete a contract or project, the
commitment shall be made in an enforceable agreement with the
public entity or other awarding body that provides both of the
following:

(1) The contractor, bidder, or other entity, and its contractors
and subcontractors at every tier, will comply with this chapter.

(2) The contractor, bidder, or other entity will provide to the
public entity or other awarding body, on a monthly basis while the
project or contract is being performed, a report demonstrating
compliance with this chapter.

(b) If the contractor, bidder, or other entity fails to provide the
monthly report required by this section, or provides a report that
is incomplete, the public agency or other awarding body shall
withhold further payments until a complete report is provided.

(c) If a monthly report does not demonstrate compliance with
this chapter, the public agency or other awarding body shall
withhold further payments until the contractor, bidder, or other
entity provides a plan to achieve substantial compliance with this
chapter, with respect to the relevant apprenticeable occupation,
prior to completion of the contract or project.

(d) A monthly report provided to the public agency or other
awarding body shall be a public record under the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and shall be open
to public inspection.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 10191 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

10191.  

The procurement process for the design-build projects
shall progress as follows:

(a) (1) The director shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents
may include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary
plans or building layouts, or any other information deemed
necessary to describe adequately the department’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(2) The documents shall not include a design-build-operate
contract for any project. The documents, however, may include
operations during a training or transition period but shall not
include long-term operations for any project.

(b) The director shall prepare and issue a request for
qualifications in order to prequalify or short-list the design-build
entities whose proposals shall be evaluated for final selection. The
request for qualifications shall include, but need not be limited to,
the following elements:

(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be
used by the department to evaluate proposals, the procedure for
final selection of the design-build entity, and any other information
deemed necessary by the director to inform interested parties of
the contracting opportunity.

(2) Significant factors that the department reasonably expects
to consider in evaluating qualifications, including technical design
and construction expertise, and all other nonprice-related factors.

(3) A standard template request for statements of qualifications
prepared by the department. In preparing the standard template,
the department may consult with the construction industry, the
building trades and surety industry, and other agencies interested
in using the authorization provided by this article. The template
shall require the following information:

(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time
of statement of qualification submission who will perform work
on the project.

(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, and a financial statement
that ensures that the design-build entity has the capacity to
complete the project.

(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to, information
on the revocation or suspension of any license, credential, or
registration.

(D) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience
history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing
to form the organization.

(G) An acceptable safety record. A proposer’s safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury or illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the proposer is a party to an alternative dispute resolution system
as provided for in Section 3201.5 of the Labor Code.

(4) (A) The information required under this subdivision shall
be certified under penalty of perjury by the design-build entity and
its general partners or joint venture members.

(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code) shall not be open to public
inspection.

(c)  begin insert (1) end insert begin insert   end insert A design-build entity shall not be prequalified or
shortlisted unless the entity provides an enforceable commitment
to the director that the entity and its subcontractors at every tier
will use a skilled and trained workforce to perform all work on the
project or contract that falls within an apprenticeable occupation
in the building and construction begin delete trades. end delete begin insert trades, in accordance with
Chapter 2.9 (commencing with Section 2600) of Part 1 end insert begin insert . end insert

begin delete

(1) For purposes of this subdivision:

(A) “Apprenticeable occupation” means an occupation for which
the chief had approved an apprenticeship program pursuant to
Section 3075 of the Labor Code prior to January 1, 2014.

(B) “Skilled and trained workforce” means a workforce that
meets all of the following conditions:

(i) All the workers are either skilled journeypersons or
apprentices registered in an apprenticeship program approved by
the Chief of the Division of Apprenticeship Standards.

(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(II) As of January 1, 2017, at least 30 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(III) As of January 1, 2018, at least 40 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(IV) As of January 1, 2019, at least 50 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(V) As of January 1, 2020, at least 60 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(iii) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief prior to January 1, 1995,
up to one-half of the graduation percentage requirements of clause
(ii) may be satisfied by skilled journeypersons who commenced
working in the apprenticeable occupation prior to the chief’s
approval of an apprenticeship program for that occupation in the
county in which the project is located.

(C) “Skilled journeyperson” means a worker who either:

(i) Graduated from an apprenticeship program for the applicable
occupation that was approved by the chief or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor.

(ii) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the chief.

(2) An entity’s commitment that a skilled and trained workforce
will be used to perform the project or contract may be established
by any of the following:

(A) The entity’s agreement with the director that the entity and
its subcontractors at every tier will comply with the requirements
of this subdivision and that the entity will provide the director with
evidence, on a monthly basis while the project or contract is being
performed, that the entity and its subcontractors are complying
with the requirements of this subdivision.

(B) If the director has entered into a project labor agreement
that will bind all contractors and subcontractors performing work
on the project or contract and that includes the requirements of
this subdivision, the entity’s agreement that it will become a party
to that project labor agreement.

(C) Evidence that the entity has entered into a project labor
agreement that includes the requirements of this subdivision and
that will bind the entity and all its subcontractors at every tier
performing the project or contract.

end delete begin insert

(2) This subdivision shall not apply if any of the following
requirements are met:

end insert begin insert

(A) The department has entered into a project labor agreement
that will bind all contractors and subcontractors performing work
on the project or contract to use a skilled and trained workforce,
and the entity agrees to be bound by that project labor agreement.

end insert begin insert

(B) The project or contract is being performed under the
extension or renewal of a project labor agreement that was entered
into by the department prior to January 1, 2017.

end insert begin insert

(C) The entity has entered into a project labor agreement that
will bind the entity and all its subcontractors at every tier
performing the project or contract to use a skilled and trained
workforce.

end insert begin insert

(3) For purposes of this subdivision, “project labor agreement”
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500.

end insert

(d) Based on the documents prepared as described in subdivision
(a), the director shall prepare a request for proposals that invites
prequalified or short-listed entities to submit competitive sealed
proposals in the manner prescribed by the department. The request
for proposals shall include, but need not be limited to, the following
elements:

(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the department to evaluate proposals, whether the
contract will be awarded on the basis of low bid or best value, and
any other information deemed necessary by the department to
inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects
to consider in evaluating proposals, including, but not limited to,
cost or price and all nonprice-related factors.

(3) The relative importance or the weight assigned to each of
the factors identified in the request for proposals.

(4) Where a best value selection method is used, the department
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which
case the department shall so specify in the request for proposals
and shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the department
to ensure that any discussions or negotiations are conducted in
good faith.

(e) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum
bids by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.

(f) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:

(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however,
shall be weighted as deemed appropriate by the department:

(A) Price, unless a stipulated sum is specified.

(B) Technical design and construction expertise.

(C) Life-cycle costs over 15 or more years.

(2) Pursuant to subdivision (d), the department may hold
discussions or negotiations with responsive proposers using the
process articulated in the department’s request for proposals.

(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided,
provided that no more than three proposers are required to be
ranked.

(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the director
to have offered the best value to the public.

(5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the director shall publicly announce
its award, identifying the design-build entity to which the award
is made, along with a statement regarding the basis of the award.

(6) The statement regarding the director’s contract award,
described in paragraph (5), and the contract file shall provide
sufficient information to satisfy an external audit.

begin delete SEC. 4. end delete

begin insert SEC. 6. end insert   

Section 20119.1 of the Public Contract Code is
amended to read:

20119.1.  

As used in this article:

(a) “Best value” means a procurement process whereby the
selected bidder may be selected on the basis of objective criteria
for evaluating the qualifications of bidders with the resulting
selection representing the best combination of price and
qualifications.

(b) “Best value contract” means a competitively bid contract
entered into pursuant to this article.

(c) “Best value contractor” means a properly licensed person,
firm, or corporation that submits a bid for and is awarded a best
value contract.

(d) “Best value score” means the resulting score when the school
district divides the bidder’s price by the bidder’s qualification
score.

(e) “Demonstrated management competency” means the
experience, competency, capability, and capacity of the proposed
management staffing to complete projects of similar size, scope,
or complexity.

(f) “Financial condition” means the financial resources needed
to perform the contract. The criteria used to evaluate a bidder’s
financial condition shall include, at a minimum, capacity to obtain
all required payment bonds and required insurance.

(g) “Governing board” or “governing board of the school
district” means the governing board of the Los Angeles Unified
School District.

(h) “Labor compliance” means the ability to comply with, and
past conformance with, contract and statutory requirements for
the payment of wages and qualifications of the workforce. The
criteria used to evaluate a bidder’s labor compliance shall include,
at a minimum, the bidder’s ability to comply with the
apprenticeship requirements of the California Apprenticeship
Council and the Department of Industrial Relations, its past
conformance with such requirements, and its past conformance
with requirements to pay prevailing wages on public works
projects.

(i) “Project” has the same meaning as “public project” as defined
in subdivision (c) of Section 22002.

(j) “Qualifications” means financial condition, relevant
experience, demonstrated management competency, labor
compliance, the safety record of the bidder, and, to the extent
relevant, the preceding qualifications as they pertain to all
subcontractors proposed to be used by the bidder for designated
portions of the work.

(k) “Relevant experience” means the experience, competency,
capability, and capacity to complete projects of similar size, scope,
or complexity.

(l) “Safety record” shall be deemed “acceptable” if a contractor’s
experience modification rate for the most recent three-year period
is an average of 1.00 or less, and its average total recordable injury
or illness rate and average lost work rate for the most recent
three-year period do not exceed the applicable statistical standards
for its business category or if the bidder is a party to an alternative
dispute resolution system as provided for in Section 3201.5 of the
Labor Code.

(m) “School district” means the Los Angeles Unified School
District.

begin delete SEC. 5. end delete

begin insert SEC. 7. end insert   

Section 20119.3 of the Public Contract Code is
amended to read:

20119.3.  

The governing board of the school district shall
proceed in accordance with the following when awarding best
value contracts under this article:

(a) The school district shall prepare a solicitation for bids and
give notice pursuant to Section 20112.

(b) (1) The school district shall establish a procedure to
prequalify bidders as required by this code. Information submitted
by the bidder as part of the evaluation process shall not be open
to public inspection to the extent that information is exempt from
disclosure under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code).

(2) A best value entity shall not be prequalified or shortlisted
unless the entity provides an enforceable commitment to the
governing board that the entity and its subcontractors at every tier
will use a skilled and trained workforce to perform all work on the
project or contract that falls within an apprenticeable occupation
in the building and construction trades, in accordance with Chapter
2.9 (commencing with Section 2600) of Part 1.

(3) Paragraph (2) shall not apply if begin delete either: end delete begin insert any of the follow
requirements are met: end insert

(A) The school district has entered into a project labor agreement
that will bind all contractors and subcontractors performing work
on the project or contract begin insert to use a skilled and trained workforce, end insert
and the entity agrees to be bound by that project labor agreement.

begin insert

(B) The project or contract is being performed under the
extension or renewal of a project labor agreement that was entered
into by the school district prior to January 1, 2017.

end insert begin delete

(B)

end delete

begin insert (C) end insert  The entity has entered into a project labor agreement that
will bind the entity and all its subcontractors at every tier
performing the project or begin delete contract. end delete begin insert contract to use a skilled and
trained workforce. end insert

(4) For purposes of this subdivision, “project labor agreement”
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500.

(c) Each solicitation for bids shall do all of the following:

(1) Invite prequalified bidders to submit sealed bids in the
manner prescribed by this article.

(2) Include a section identifying and describing the following:

(A) Criteria that the school district will consider in evaluating
the qualifications of the bidders.

(B) The methodology and rating or weighting system that will
be used by the school district in evaluating bids.

(C) The relative importance or weight assigned to the criteria
for evaluating the qualifications of bidders identified in the request
for bids.

(d) Final evaluation of the bidders shall be done in a manner
that prevents the identity of the bidders and the cost or price
information from being revealed in evaluating the qualifications
of the bidders prior to completion of qualification scoring.

begin delete SEC. 6. end delete

begin insert SEC. 8. end insert   

Section 20155.2 of the Public Contract Code is
repealed.

begin delete SEC. 7. end delete

begin insert SEC. 9. end insert   

Section 20155.4 of the Public Contract Code is
amended to read:

20155.4.  

(a) A best value contractor shall not be prequalified
or shortlisted unless the contractor provides an enforceable
commitment to the county that the contractor and its subcontractors
at every tier will use a skilled and trained workforce to perform
all work on the project or contract that falls within an
apprenticeable occupation in the building and construction trades,
in accordance with Chapter 2.9 (commencing with Section 2600)
of Part 1.

(b) This section shall not apply if begin delete either: end delete begin insert any of the following
requirements are met: end insert

(1) The county has entered into a project labor agreement that
will bind all contractors and subcontractors performing work on
the project or contract begin insert to use a skilled and trained workforce, end insert and
the contractor agrees to be bound by that project labor agreement.

begin insert

(2) The project or contract is being performed under the
extension or renewal of a project labor agreement that was entered
into by the county prior to January 1, 2017.

end insert begin delete

(2)

end delete

begin insert (3) end insert  The contractor has entered into a project labor agreement
that will bind the contractor and all its subcontractors at every tier
performing the project or begin delete contract. end delete begin insert contract to use a skilled and
trained workforce. end insert

(c) For purposes of this section, “project labor agreement” has
the same meaning as in paragraph (1) of subdivision (b) of Section
2500.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 22164 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

22164.  

The procurement process for the design-build projects
shall progress as follows:

(a) (1) The local agency shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents
may include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary
plans or building layouts, or any other information deemed
necessary to describe adequately the local agency’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(2) The documents shall not include a design-build-operate
contract for any project. The documents, however, may include
operations during a training or transition period but shall not
include long-term operations for any project.

(b) The local agency shall prepare and issue a request for
qualifications in order to prequalify or short-list the design-build
entities whose proposals shall be evaluated for final selection. The
request for qualifications shall include, but need not be limited to,
the following elements:

(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be
used by the local agency to evaluate proposals, the procedure for
final selection of the design-build entity, and any other information
deemed necessary by the local agency to inform interested parties
of the contracting opportunity.

(2) Significant factors that the local agency reasonably expects
to consider in evaluating qualifications, including technical design
and construction expertise, acceptable safety record, and all other
nonprice-related factors.

(3) A standard template request for statements of qualifications
prepared by the local agency. In preparing the standard template,
the local agency may consult with the construction industry, the
building trades and surety industry, and other local agencies
interested in using the authorization provided by this article. The
template shall require the following information:

(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time
of statement of qualification submission who will perform work
on the project.

(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, and a financial statement
that ensures that the design-build entity has the capacity to
complete the project.

(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to, information
on the revocation or suspension of any license, credential, or
registration.

(D) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience
history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing
to form the organization.

(G) An acceptable safety record. A proposer’s safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury or illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the proposer is a party to an alternative dispute resolution system
as provided for in Section 3201.5 of the Labor Code.

(4) (A) The information required under this subdivision shall
be certified under penalty of perjury by the design-build entity and
its general partners or joint venture members.

(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code) shall not be open to public
inspection.

(c)  begin insert (1) end insert begin insert   end insert A design-build entity shall not be prequalified or
shortlisted unless the entity provides an enforceable commitment
to the local agency that the entity and its subcontractors at every
tier will use a skilled and trained workforce to perform all work
on the project or contract that falls within an apprenticeable
occupation in the building and construction begin delete trades. end delete begin insert trades, in
accordance with Chapter 2.9 (commencing with Section 2600) of
Part 1. end insert

begin delete

(1) For purposes of this subdivision:

(A) “Apprenticeable occupation” means an occupation for which
the chief had approved an apprenticeship program pursuant to
Section 3075 of the Labor Code prior to January 1, 2014.

(B) “Skilled and trained workforce” means a workforce that
meets all of the following conditions:

(i) All the workers are either skilled journeypersons or
apprentices registered in an apprenticeship program approved by
the Chief of the Division of Apprenticeship Standards.

(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(II) As of January 1, 2017, at least 30 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(III) As of January 1, 2018, at least 40 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(IV) As of January 1, 2019, at least 50 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(V) As of January 1, 2020, at least 60 percent of the skilled
journeypersons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

(iii) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief prior to January 1, 1995,
up to one-half of the graduation percentage requirements of clause
(ii) may be satisfied by skilled journeypersons who commenced
working in the apprenticeable occupation prior to the chief’s
approval of an apprenticeship program for that occupation in the
county in which the project is located.

(C) “Skilled journeyperson” means a worker who either:

(i) Graduated from an apprenticeship program for the applicable
occupation that was approved by the chief or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor.

(ii) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the chief.

(2) An entity’s commitment that a skilled and trained workforce
will be used to perform the project or contract may be established
by any of the following:

(A) The entity’s agreement with the local agency that the entity
and its subcontractors at every tier will comply with the
requirements of this subdivision and that the entity will provide
the local agency with evidence, on a monthly basis while the
project or contract is being performed, that the entity and its
subcontractors are complying with the requirements of this
subdivision.

(B) If the local agency has entered into a project labor agreement
that will bind all contractors and subcontractors performing work
on the project or contract and that includes the requirements of
this subdivision, the entity’s agreement that it will become a party
to that project labor agreement.

(C) Evidence that the entity has entered into a project labor
agreement that includes the requirements of this subdivision and
that will bind the entity and all its subcontractors at every tier
performing the project or contract.

end delete begin insert

(2) This subdivision shall not apply if any of the following
requirements are met:

end insert begin insert

(A) The local agency has entered into a project labor agreement
that will bind all contractors and subcontractors performing work
on the project or contract to use a skilled and trained workforce,
and the entity agrees to be bound by that project labor agreement.

end insert begin insert

(B) The project or contract is being performed under the
extension or renewal of a project labor agreement that was entered
into by the local agency prior to January 1, 2017.

end insert begin insert

(C) The entity has entered into a project labor agreement that
will bind the entity and all its subcontractors at every tier
performing the project or contract to use a skilled and trained
workforce.

end insert begin insert

(3) For purposes of this subdivision, “project labor agreement”
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500.

end insert

(d) Based on the documents prepared as described in subdivision
(a), the local agency shall prepare a request for proposals that
invites prequalified or short-listed entities to submit competitive
sealed proposals in the manner prescribed by the local agency.
The request for proposals shall include, but need not be limited
to, the following elements:

(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the local agency to evaluate proposals, whether
the contract will be awarded on the basis of low bid or best value,
and any other information deemed necessary by the local agency
to inform interested parties of the contracting opportunity.

(2) Significant factors that the local agency reasonably expects
to consider in evaluating proposals, including, but not limited to,
cost or price and all nonprice-related factors.

(3) The relative importance or the weight assigned to each of
the factors identified in the request for proposals.

(4) Where a best value selection method is used, the local agency
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which
case the local agency shall so specify in the request for proposals
and shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the local agency
to ensure that any discussions or negotiations are conducted in
good faith.

(e) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum
bids by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.

(f) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:

(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however,
shall be weighted as deemed appropriate by the local agency:

(A) Price, unless a stipulated sum is specified.

(B) Technical design and construction expertise.

(C) Life-cycle costs over 15 or more years.

(2) Pursuant to subdivision (d), the local agency may hold
discussions or negotiations with responsive proposers using the
process articulated in the local agency’s request for proposals.

(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided,
provided that no more than three proposers are required to be
ranked.

(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the local
agency to have offered the best value to the public.

(5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the local agency shall publicly
announce its award, identifying the design-build entity to which
the award is made, along with a statement regarding the basis of
the award.

(6) The statement regarding the local agency’s contract award,
described in paragraph (5), and the contract file shall provide
sufficient information to satisfy an external audit.

begin delete SEC. 8. end delete

begin insert SEC. 11. end insert   

(a) The amendments made by this act shall not apply
to contracts that were advertised for bid or awarded before January
1, 2017.

(b) For contracts advertised for bid or awarded before January
1, 2017, for which an entity or contractor provided an enforceable
commitment to a school district or county regarding the use of a
skilled and trained workforce, pursuant to Section 17250.25 or
17407.5 of the Education Code or Section 20119.3 or 20155.4 of
the Public Contract Code, the school district or county may grant
a request by the entity or contractor that made the enforceable
commitment to comply instead with this act.

begin delete SEC. 9. end delete

begin insert SEC. 12. end insert   

The Legislature finds and declares that Section 3 of
this act, which adds Chapter 2.9 (commencing with Section 2600)
to Part 1 of Division 2 of the Public Contract Code, furthers, within
the meaning of paragraph (7) of subdivision (b) of Section 3 of
Article I of the California Constitution, the purposes of that
constitutional section as it relates to the right of public access to
the meetings of local public bodies or the writings of local public
officials and local agencies. Pursuant to paragraph (7) of
subdivision (b) of Section 3 of Article I of the California
Constitution, the Legislature makes the following findings:

Because this act expressly subjects local public entities to the
California Public Records Act begin insert (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code) end insert
for monthly reports to the awarding body on compliance with
skilled and trained workforce requirements for public contracts,
the act furthers the purpose of Section 3 of Article I of the
California Constitution.