BILL ANALYSIS
AB 395
Page 1
ASSEMBLY THIRD READING
AB 395 (Fuentes)
As Introduced February 23, 2009
Majority vote
LABOR AND EMPLOYMENT 6-1 APPROPRIATIONS 12-5
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|Ayes:|Monning, Bill Berryhill, |Ayes:|De Leon, Ammiano, Charles |
| |Eng, Furutani, Ma, | |Calderon, Davis, Fuentes, |
| |Portantino | |Hall, John A. Perez, Price, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+----------------------------|
|Nays:|Gaines |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller, |
| | | |Audra Strickland |
| | | | |
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SUMMARY : Authorizes an awarding body to assist the Director of
the Department of Industrial Relations (DIR) in the enforcement
of prevailing wage laws that apply to apprenticeships, through
the operation of the awarding body's approved labor compliance
program (LCP). Specifically, this bill :
1 Provides that an awarding body that implements a LCP may, with
the approval of the Chief of the Division of Apprenticeship
Standards (DAS), assist the Director of DIR in the enforcement
of specified provisions of law related to the employment of
apprentices on public works projects.
2)Specifies that a contractor may appeal the result of any
subsequent enforcement action through the appellate process
set forth under existing law.
3)States that where the involvement of the Chief of DAS has been
limited to a review of the assessment and the matter has been
resolved without litigation by or against DAS, the awarding
body shall deposit any penalties and forfeitures recovered
into its general fund.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, DIR indicates that it will result in additional costs
AB 395
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totaling $200,000 in 2009-10 and $370,000 in 2010-11 and
subsequent years (special funds).
COMMENTS : This bill is sponsored by the City of Los Angeles.
The Labor Compliance Section of the Bureau of Contract
Administration's Office of Contract Compliance is part of the
City of Los Angeles' Department of Public Works. The Section
operates the City's State-Certified LCP and is tasked with the
enforcement of the sections of the California Labor Code
pertaining to the payment of the prevailing wage on the City's
public works projects. According to the sponsor, the Labor
Compliance Section is very effective in its enforcement efforts;
over the past eight years, it has collected $4.3 million in
restitution for 4,216 workers employed on the City's public
works projects.
According to the sponsor, while the City's Labor Compliance
Section has the authority to enforce provisions of the
California Labor Code relating to prevailing wage issues, the
enforcement of apprenticeship labor issues is under the
jurisdiction of the State's Division of Apprenticeship Standards
(DAS). As part of its routine enforcement activities, the Labor
Compliance Section occasionally encounters violations relating
to the payment of the prevailing wage to apprentices on public
works projects of the City. However, it does not currently have
the statutory authority to enforce those sections of the Labor
Code.
Therefore, the sponsor argues that this bill will allow it to
partner with DAS (which neither has the budget nor staff to
adequately address apprenticeship standards violations
statewide) to enforce the sections of the Labor Code dealing
with apprenticeship issues, similar to what it currently enjoys
with the DLSE. This bill will allow certified LCPs (such as the
City of Los Angeles' Labor Compliance Section), with the
approval of DAS, to enforce specified laws pertaining to
apprenticeships. According to the sponsor, this authority would
not only benefit the apprentices, but the honest contractors
with whom they are working together to build new public works
projects, which ultimately benefit all Californians.
Other supporters similarly argue that LCPs often discover
violations of the laws pertaining to the employment of
apprentices, yet they have no jurisdiction in such matters.
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Instead, they are required to forward their discoveries to DAS,
who has neither the staff nor the budget to adequately address
the vast majority of such violations. While trained and
experienced LCPs have the staff and knowledge to address these
violations, there is currently no provision in existing law to
allow them to do so. This bill provides that necessary legal
authority.
This bill is similar to AB 2369 (Fuentes) of 2008 which was
vetoed by Governor Schwarzenegger.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0001089