BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1370|
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THIRD READING
Bill No: SB 1370
Author: Berryhill (R), et al.
Amended: As introduced
Vote: 21
SENATE LABOR & INDUST. RELATIONS COMMITTEE : 4-1, 4/11/12
AYES: Lieu, Wyland, Leno, Yee
NOES: DeSaulnier
NO VOTE RECORDED: Padilla, Runner
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Prevailing wages: public works: director:
code list
SOURCE : Associated Builders and Contractors of
California
DIGEST : This bill requires the Director of the
Department of Industrial Relations to post a list on their
Web site of every California code section, and the language
of those sections, that relates to prevailing wage rate
requirements for workers employed on a public works
project.
ANALYSIS :
Existing law:
1. Requires that not less than the general prevailing wage
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rate be paid to all workers employed on a "public works"
project costing over $1,000 dollars and imposes
misdemeanor penalties for a violation of this
requirement.
2. Defines "public work" to include, among other things,
construction, alteration, demolition, installation or
repair work done under contract and paid for in whole or
in part out of public funds.
3. Defines "paid for in whole or in part out of public
funds" as used in public works as the following:
A. Payment of money or the equivalent of money by a
state or political subdivision directly to or on
behalf of the public works contractor, subcontractor,
or developer.
B. Construction work performed by a state or
political subdivision in execution of a project.
C. Transfer of an asset for less than fair market
value.
D. Fees, costs, rents, insurance or bond premiums,
loans, interest rates, or other obligations normally
required in the execution of a contract that are
paid, reduced, charged at less than fair market
value, waived or forgiven.
E. Money loaned that is to be repaid on a contingent
basis.
F. Credits applied against repayment obligations.
4. Exempts from the definition of "paid for in whole or in
part out of public funds" specified types of affordable
housing, private residential housing, private
development projects, qualified residential projects,
low income housing projects, state manufacturing tax
credits, and single family residential projects.
Under existing law, the Director of the Department of
Industrial Relations (DIR) is charged with the
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responsibility of determining the prevailing wage rate for
public works projects. Among other things, the
determination of the prevailing wage rate includes the
basic hourly rate being paid to a majority of workers
engaged in the particular craft, classification or type of
work within the locality and in the nearest labor market
area, as specified.
This bill requires the Director of DIR to post a list on
their Web site of every California code section, and the
language of those sections, that relates to prevailing wage
rate requirements for workers employed on a public works
project.
Comments
DIR manages a public Web site where they provide
information on labor related issues and questions. Their
Web site provides links to various recourses including a
section entitled "Labor law" in which an entire section is
devoted to public works/prevailing wage questions. Under
the public works/prevailing wage tab, you can also find
links for information on prevailing wage regulations,
prevailing wage determinations, how to file a public works
complaint, prevailing wage frequently asked questions and
links to the actual labor code sections dealing with
prevailing wage. More importantly, the Web site also
provides a link to the Public Works manual which delves
into a deeper discussion on who the law protects, what
contractors must do to comply with the law, along with all
definitions pertaining to public works.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 4/30/12)
Associated Builders and Contractors of California (source)
ARGUMENTS IN SUPPORT : The author and sponsor of the bill
argue that there is no one specific location where all
projects subject to state mandated prevailing wage are
listed. Proponents believe this one-stop web-based listing
would increase government transparency and improve
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compliance with both project owners and contractors alike.
PQ:mw 4/30/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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