BILL NUMBER: AB 2677	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Swanson

                        MARCH 5, 2012

   An act to amend Section 1773.1 of, and to add Section 1773.8 to,
the Labor Code, relating to prevailing wages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2677, as amended, Swanson. Public works: wages:  fringe
benefit   employer payment  contributions.
   Existing law requires that, except as specified, not less than the
general prevailing rate of per diem wages, determined by the
Director of Industrial Relations, as specified, be paid to workers
employed on public works projects. Existing law deems per diem wages
to include specified employer payments and provides that employer
payments are a credit against the obligation to pay the general
prevailing rate of per diem wages. Existing law, however, provides
that credits for employer payments do not reduce the obligation to
pay the hourly straight time or overtime wages found to be
prevailing.
   This bill would provide that an increased  fringe benefit
  employer payment  contribution that results in a
lower hourly straight time or overtime wage is not considered to be a
violation of the applicable prevailing wage determination so long as
specified conditions are met.
   This bill would provide that an increased  fringe benefit
  employer payment  contribution that results in a
lower taxable wage is not a violation of the applicable prevailing
wage determination if specified conditions are met.
   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 1773.1 of the Labor Code is amended to read:
   1773.1.  (a) Per diem wages, when the term is used in this chapter
or in any other statute applicable to public works, shall be deemed
to include employer payments for the following:
   (1) Health and welfare.
   (2) Pension.
   (3) Vacation.
   (4) Travel.
   (5) Subsistence.
   (6) Apprenticeship or other training programs authorized by
Section 3093, so long as the cost of training is reasonably related
to the amount of the contributions.
   (7) Worker protection and assistance programs or committees
established under the federal Labor Management Cooperation Act of
1978 (Section 175a of Title 29 of the United States Code), to the
extent that the activities of the programs or committees are directed
to the monitoring and enforcement of laws related to public works.
   (8) Industry advancement and collective bargaining agreements
administrative fees, provided that these payments are required under
a collective bargaining agreement pertaining to the particular craft,
classification, or type of work within the locality or the nearest
labor market area at issue.
   (9) Other purposes similar to those specified in paragraphs (1) to
(8), inclusive.
   (b) Employer payments include all of the following:
   (1) The rate of contribution irrevocably made by the employer to a
trustee or third person pursuant to a plan, fund, or program.
   (2) The rate of actual costs to the employer reasonably
anticipated in providing benefits to workers pursuant to an
enforceable commitment to carry out a financially responsible plan or
program communicated in writing to the workers affected.
   (3) Payments to the California Apprenticeship Council pursuant to
Section 1777.5.
   (c) Employer payments are a credit against the obligation to pay
the general prevailing rate of per diem wages. However, no credit
shall be granted for benefits required to be provided by other state
or federal law. Credits for employer payments also shall not reduce
the obligation to pay the hourly straight time or overtime wages
found to be prevailing. However, an increased  fringe benefit
  employer payment  contribution that results in a
lower hourly straight time or overtime wage shall not be considered
a violation of the applicable prevailing wage determination so long
as all of following conditions are met:
   (1) The increased  fringe benefit   employer
payment  is made pursuant to criteria set forth in a collective
bargaining agreement.
   (2) The  basic hourly rate and  increased  fringe
benefit and hourly straight time and overtime wage combined
  employer payment  are no less than the general
prevailing rate of per diem wages  and the general prevailing
rate for holiday and overtime work in the director's general
prevailing wage determination  .
   (3) The  fringe benefit   employer payment
 contribution is irrevocable unless made in error.
   (d) The credit for employer payments shall be computed on an
annualized basis where the employer seeks credit for employer
payments that are higher for public works projects than for private
construction performed by the same employer, except where one or more
of the following occur:
   (1) The employer has an enforceable obligation to make the higher
rate of payments on future private construction performed by the
employer.
   (2) The higher rate of payments is required by a project labor
agreement.
   (3) The payments are made to the California Apprenticeship Council
pursuant to Section 1777.5.
   (4) The director determines that annualization would not serve the
purposes of this chapter.
   (e) (1) For the purpose of determining those per diem wages for
contracts, the representative of any craft, classification, or type
of worker needed to execute contracts shall file with the Department
of Industrial Relations fully executed copies of the collective
bargaining agreements for the particular craft, classification, or
type of work involved. The collective bargaining agreements shall be
filed after their execution and thereafter may be taken into
consideration pursuant to Section 1773 whenever filed 30 days prior
to the call for bids. If the collective bargaining agreement has not
been formalized, a typescript of the final draft may be filed
temporarily, accompanied by a statement under penalty of perjury as
to its effective date.
   (2) Where a copy of the collective bargaining agreement has
previously been filed, fully executed copies of all modifications and
extensions of the agreement that affect per diem wages or holidays
shall be filed.
   (3) The failure to comply with filing requirements of this
subdivision shall not be grounds for setting aside a prevailing wage
determination if the information taken into consideration is correct.

  SEC. 2.  Section 1773.8 is added to the Labor Code, to read:
   1773.8.  An increased  fringe benefit  
employer payment  contribution that results in a lower taxable
wage shall not be considered a violation of the applicable prevailing
wage determination so long as all of the following conditions are
met:
   (a) The increased  fringe benefit   employer
payment  is made pursuant to criteria set forth in a collective
bargaining agreement.
   (b) The increased  fringe benefit   employer
payment  and hourly straight time and overtime wage combined are
no less than the general prevailing rate of per diem wages.
   (c) The  fringe benefit   employer payment
 contribution is irrevocable unless made in error.