AB 2272, as amended, Gray. Public works: prevailing wage.
Existing law defines the term “public works” for purposes of requirements regarding the payment of prevailing wages. Existing law generally defines “public works” to include construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds. Existing law makes a willful violation of laws relating to the payment of prevailing wages on public works a misdemeanor.
Existing law establishes the California Advanced Services Fund (CASF) and requires the Public Utilities Commission to administer a program using moneys in the fund to encourage deployment of high-quality advanced communication services to all Californians by providing funding for infrastructure projects to provide broadband access to households that are unserved or underserved, as specified.
This bill would revise the definition of “public works” to also include infrastructure project grants from the California Advanced Services Fund. The bill would specify that for purposes of this provision, the Public Utilities Commission is not the awarding body or body awarding the contract. By expanding the definition of a crime, this bill would impose a state-mandated local program.
begin insertThis bill would incorporate additional changes in Section 1720 of the Labor Code, proposed by AB 26, to be operative only if AB 26 and this bill are both enacted and become effective on or before January 1, 2015, and this bill is chaptered last.
end insertThe California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 1720 of the Labor Code is amended to
2read:
(a) As used in this chapter, “public works” means:
4(1) Construction, alteration, demolition, installation, or repair
5work done under contract and paid for in whole or in part out of
6public funds, except work done directly by any public utility
7company pursuant to order of the Public Utilities Commission or
8other public authority. For purposes of this paragraph,
9“construction” includes work performed during the design and
10preconstruction phases of construction, including, but not limited
11to, inspection and land surveying work. For purposes of this
12paragraph, “installation” includes, but is not limited to, the
13assembly and disassembly of freestanding and affixed modular
14office systems.
15(2) Work done for irrigation, utility, reclamation, and
16improvement districts, and other districts of this type. “Public
17work” does not include the operation of the irrigation or drainage
18system of any irrigation or reclamation district, except as used in
19Section 1778 relating to retaining wages.
20(3) Street, sewer, or other improvement work done under the
21direction and supervision or by the authority of any officer or
22public body of the state, or of any political subdivision or district
P3 1thereof, whether the political subdivision or district operates under
2a freeholder’s charter or not.
3(4) The laying of carpet done under a building lease-maintenance
4contract and paid for out of public funds.
5(5) The laying of carpet in a public building done under contract
6and paid for in whole or in part out of public funds.
7(6) Public transportation demonstration projects authorized
8pursuant to Section 143 of the Streets and Highways Code.
9(7) (A) Infrastructure project grants from the California
10Advanced Services Fund pursuant to Section 281 of the Public
11Utilities Code.
12(B) For purposes of this paragraph, the Public Utilities
13Commission is not the awarding body or the body awarding the
14contract, as defined in Section 1722.
15(b) For purposes of this section, “paid for in whole or in part
16out
of public funds” means all of the following:
17(1) The payment of money or the equivalent of money by the
18state or political subdivision directly to or on behalf of the public
19works contractor, subcontractor, or developer.
20(2) Performance of construction work by the state or political
21subdivision in execution of the project.
22(3) Transfer by the state or political subdivision of an asset of
23value for less than fair market price.
24(4) Fees, costs, rents, insurance or bond premiums, loans, interest
25rates, or other obligations that would normally be required in the
26execution of the contract, that are paid, reduced, charged at less
27than fair market value, waived, or forgiven
by the state or political
28subdivision.
29(5) Money loaned by the state or political subdivision that is to
30be repaid on a contingent basis.
31(6) Credits that are applied by the state or political subdivision
32against repayment obligations to the state or political subdivision.
33(c) Notwithstanding subdivision (b):
34(1) Private residential projects built on private property are not
35subject to the requirements of this chapter unless the projects are
36built pursuant to an agreement with a state agency, redevelopment
37agency, or local public housing authority.
38(2) If the state or a political subdivision requires a
private
39developer to perform construction, alteration, demolition,
40installation, or repair work on a public work of improvement as a
P4 1condition of regulatory approval of an otherwise private
2development project, and the state or political subdivision
3contributes no more money, or the equivalent of money, to the
4overall project than is required to perform this public improvement
5work, and the state or political subdivision maintains no proprietary
6interest in the overall project, then only the public improvement
7work shall thereby become subject to this chapter.
8(3) If the state or a political subdivision reimburses a private
9developer for costs that would normally be borne by the public,
10or provides directly or indirectly a public subsidy to a private
11development project that is de minimis in the context of the project,
12an otherwise
private development project shall not thereby become
13subject to the requirements of this chapter.
14(4) The construction or rehabilitation of affordable housing units
15for low- or moderate-income persons pursuant to paragraph (5) or
16(7) of subdivision (e) of Section 33334.2 of the Health and Safety
17Code that are paid for solely with moneys from the Low and
18Moderate Income Housing Fund established pursuant to Section
1933334.3 of the Health and Safety Code or that are paid for by a
20combination of private funds and funds available pursuant to
21Section 33334.2 or 33334.3 of the Health and Safety Code do not
22constitute a project that is paid for in whole or in part out of public
23funds.
24(5) Unless otherwise required by a public funding program, the
25construction or rehabilitation of privately
owned residential projects
26is not subject to the requirements of this chapter if one or more of
27the following conditions are met:
28(A) The project is a self-help housing project in which no fewer
29than 500 hours of construction work associated with the homes
30are to be performed by the home buyers.
31(B) The project consists of rehabilitation or expansion work
32associated with a facility operated on a not-for-profit basis as
33
temporary or transitional housing for homeless persons with a total
34project cost of less than twenty-five thousand dollars ($25,000).
35(C) Assistance is provided to a household as either mortgage
36assistance, downpayment assistance, or for the rehabilitation of a
37single-family home.
38(D) The project consists of new construction, expansion, or
39rehabilitation work associated with a facility developed by a
40nonprofit organization to be operated on a not-for-profit basis to
P5 1provide emergency or transitional shelter and ancillary services
2and assistance to homeless adults and children. The nonprofit
3organization operating the project shall provide, at no profit, not
4less than 50 percent of the total project cost from nonpublic
5sources, excluding real property that is
transferred or leased. Total
6project cost includes the value of donated labor, materials,
7architectural, and engineering services.
8(E) The public participation in the project that would otherwise
9meet the criteria of subdivision (b) is public funding in the form
10of below-market interest rate loans for a project in which
11occupancy of at least 40 percent of the units is restricted for at
12least 20 years, by deed or regulatory agreement, to individuals or
13families earning no more than 80 percent of the area median
14income.
15(d) Notwithstanding any provision of this section to the contrary,
16the following projects shall not, solely by reason of this section,
17be subject to the requirements of this chapter:
18(1) Qualified
residential rental projects, as defined by Section
19142(d) of the Internal Revenue Code, financed in whole or in part
20through the issuance of bonds that receive allocation of a portion
21of the state ceiling pursuant to Chapter 11.8 (commencing with
22Section 8869.80) of Division 1 of Title 2 of the Government Code
23on or before December 31, 2003.
24(2) Single-family residential projects financed in whole or in
25part through the issuance of qualified mortgage revenue bonds or
26qualified veterans’ mortgage bonds, as defined by Section 143 of
27the Internal Revenue Code, or with mortgage credit certificates
28under a Qualified Mortgage Credit Certificate Program, as defined
29by Section 25 of the Internal Revenue Code, that receive allocation
30of a portion of the state ceiling pursuant to Chapter 11.8
31(commencing with Section 8869.80) of Division 1 of Title 2
of
32the Government Code on or before December 31, 2003.
33(3) Low-income housing projects that are allocated federal or
34state low-income housing tax credits pursuant to Section 42 of the
35Internal Revenue Code, Chapter 3.6 (commencing with Section
3650199.4) of Part 1 of Division 31 of the Health and Safety Code,
37or Section 12206, 17058, or 23610.5 of the Revenue and Taxation
38Code, on or before December 31, 2003.
39(e) If a statute, other than this section, or a regulation, other than
40a regulation adopted pursuant to this section, or an ordinance or a
P6 1contract applies this chapter to a project, the exclusions set forth
2in subdivision (d) do not apply to that project.
3(f) For purposes of this section, references to the Internal
4Revenue
Code mean the Internal Revenue Code of 1986, as
5amended, and include the corresponding predecessor sections of
6the Internal Revenue Code of 1954, as amended.
7(g) The amendments made to this section by either Chapter 938
8of the Statutes of 2001 or the act adding this subdivision shall not
9be construed to preempt local ordinances requiring the payment
10of prevailing wages on housing projects.
begin insertSection 1720 of the end insertbegin insertLabor Codeend insertbegin insert is amended to read:end insert
(a) As used in this chapter, “public works” means:
13(1) Construction, alteration, demolition, installation, or repair
14work done under contract and paid for in whole or in part out of
15public funds, except work done directly by any public utility
16company pursuant to order of the Public Utilities Commission or
17other public authority. For purposes of this paragraph,
18“construction” includes work performed during the design and
19preconstruction phases of construction, including, but not limited
20to, inspection and land surveyingbegin delete work.end deletebegin insert work, and work performed
21during the postconstruction phases of
construction, including, but
22not limited to, all cleanup work at the jobsite.end insert
For purposes of this
23paragraph, “installation” includes, but is not limited to, the
24assembly and disassembly of freestanding and affixed modular
25office systems.
26(2) Work done for irrigation, utility, reclamation, and
27improvement districts, and other districts of this type. “Public
28work” does not include the operation of the irrigation or drainage
29system of any irrigation or reclamation district, except as used in
30Section 1778 relating to retaining wages.
31(3) Street, sewer, or other improvement work done under the
32direction and supervision or by the authority of any officer or
33public body of the state, or of any political subdivision or district
34thereof, whether the political subdivision or district operates under
35a freeholder’s charter or not.
36(4) The laying of carpet done under a building
lease-maintenance
37contract and paid for out of public funds.
38(5) The laying of carpet in a public building done under contract
39and paid for in whole or in part out of public funds.
P7 1(6) Public transportation demonstration projects authorized
2pursuant to Section 143 of the Streets and Highways Code.
3(7) (A) Infrastructure project grants from the California
4Advanced Services Fund pursuant to Section 281 of the Public
5Utilities Code.
6(B) For purposes of this paragraph, the Public Utilities
7Commission is not the awarding body or the body awarding
the
8contract, as defined in Section 1722.
9(b) For purposes of this section, “paid for in whole or in part
10out of public funds” means all of the following:
11(1) The payment of money or the equivalent of money by the
12state or political subdivision directly to or on behalf of the public
13works contractor, subcontractor, or developer.
14(2) Performance of construction work by the state or political
15subdivision in execution of the project.
16(3) Transfer by the state or political subdivision of an asset of
17value for less than fair market price.
18(4) Fees, costs, rents, insurance or bond premiums, loans, interest
19rates, or other obligations that would normally be required in
the
20execution of the contract, that are paid, reduced, charged at less
21than fair market value, waived, or forgiven by the state or political
22subdivision.
23(5) Money loaned by the state or political subdivision that is to
24be repaid on a contingent basis.
25(6) Credits that are applied by the state or political subdivision
26against repayment obligations to the state or political subdivision.
27(c) Notwithstanding subdivision (b):
28(1) Private residential projects built on private property are not
29subject to the requirements of this chapter unless the projects are
30built pursuant to an agreement with a state agency, redevelopment
31agency, or local public housing authority.
32(2) If the state or a
political subdivision requires a private
33developer to perform construction, alteration, demolition,
34installation, or repair work on a public work of improvement as a
35condition of regulatory approval of an otherwise private
36development project, and the state or political subdivision
37contributes no more money, or the equivalent of money, to the
38overall project than is required to perform this public improvement
39work, and the state or political subdivision maintains no proprietary
P8 1interest in the overall project, then only the public improvement
2work shall thereby become subject to this chapter.
3(3) If the state or a political subdivision reimburses a private
4developer for costs that would normally be borne by the public,
5or provides directly or indirectly a public subsidy to a private
6development project that is de minimis in the context of the project,
7an otherwise private development project shall not thereby become
8subject to the requirements
of this chapter.
9(4) The construction or rehabilitation of affordable housing units
10for low- or moderate-income persons pursuant to paragraph (5) or
11(7) of subdivision (e) of Section 33334.2 of the Health and Safety
12Code that are paid for solely with moneys from the Low and
13Moderate Income Housing Fund established pursuant to Section
1433334.3 of the Health and Safety Code or that are paid for by a
15combination of private funds and funds available pursuant to
16Section 33334.2 or 33334.3 of the Health and Safety Code do not
17constitute a project that is paid for in whole or in part out of public
18funds.
19(5) “Paid for in whole or in part out of public funds” does not
20include tax credits provided pursuant to Section 17053.49 or 23649
21of the Revenue and Taxation Code.
22(6)
end delete
23begin insert(5)end insert Unless otherwise required by a public funding program, the
24construction or rehabilitation of privately owned residential projects
25is not subject to the requirements of this chapter if one or more of
26the following conditions are met:
27(A) The project is a self-help housing project in which no fewer
28than 500 hours of construction work associated with the homes
29are to be performed by the home buyers.
30(B) The project consists of rehabilitation or expansion work
31associated with a facility operated on a not-for-profit basis as
32temporary or transitional housing for homeless persons with a total
33project cost of less than twenty-five thousand dollars ($25,000).
34(C) Assistance is provided to a household as either mortgage
35assistance, downpayment assistance, or for the rehabilitation of a
36single-family home.
37(D) The project consists of new construction, expansion, or
38rehabilitation work associated with a facility developed by a
39nonprofit organization to be operated on a not-for-profit basis to
40provide emergency or transitional shelter and ancillary services
P9 1and assistance to homeless adults and children. The nonprofit
2organization operating the project shall provide, at no profit, not
3less than 50 percent of the total project cost from nonpublic
4sources, excluding real property that is transferred or leased. Total
5project cost includes the value of donated labor, materials,
6architectural, and engineering services.
7(E) The public participation in the project that would otherwise
8meet the criteria of subdivision (b) is public
funding in the form
9of below-market interest rate loans for a project in which
10occupancy of at least 40 percent of the units is restricted for at
11least 20 years, by deed or regulatory agreement, to individuals or
12families earning no more than 80 percent of the area median
13income.
14(d) Notwithstanding any provision of this section to the contrary,
15the following projects shall not, solely by reason of this section,
16be subject to the requirements of this chapter:
17(1) Qualified residential rental projects, as defined by Section
18142(d) of the Internal Revenue Code, financed in whole or in part
19through the issuance of bonds that receive allocation of a portion
20of the state ceiling pursuant to Chapter 11.8begin delete of Division 1end delete
21
(commencing with Section 8869.80) ofbegin insert Division 1 of Title 2 ofend insert the
22Government Code on or before December 31, 2003.
23(2) Single-family residential projects financed in whole or in
24part through the issuance of qualified mortgage revenue bonds or
25qualified veterans’ mortgage bonds, as defined by Section 143 of
26the Internal Revenue Code, or with mortgage credit certificates
27under a Qualified Mortgage Credit Certificate Program, as defined
28by Section 25 of the Internal Revenue Code, that receive allocation
29of a portion of the state ceiling pursuant to Chapter 11.8begin delete of Division (commencing with Section 8869.80) ofbegin insert Division 1 of Title 2 ofend insert
301end delete
31
the Government Code on or before December 31, 2003.
32(3) Low-income housing projects that are allocated federal or
33state low-income housing tax credits pursuant to Section 42 of the
34Internal Revenue Code, Chapter 3.6begin delete of Division 31end delete
(commencing
35with Section 50199.4) ofbegin insert Part 1 of Division 31 ofend insert the Health and
36Safety Code, or Section 12206, 17058, or 23610.5 of the Revenue
37and Taxation Code, on or before December 31, 2003.
38(e) If a statute, other than this section, or a regulation, other than
39a regulation adopted pursuant to this section, or an ordinance or a
P10 1contract applies this chapter to a project, the exclusions set forth
2in subdivision (d) do not apply to that project.
3(f) For purposes of this section, references to the Internal
4Revenue Code mean the Internal Revenue Code of 1986, as
5amended, and include the corresponding predecessor sections of
6the Internal Revenue Code of 1954, as amended.
7(g) The amendments made to
this section by either Chapter 938
8of the Statutes of 2001 or the act adding this subdivision shall not
9be construed to preempt local ordinances requiring the payment
10of prevailing wages on housing projects.
Section 1.5 of this bill incorporates amendments to
12Section 1720 of the Labor Code proposed by both this bill and
13Assembly Bill 26. It shall only become operative if (1) both bills
14are enacted and become effective on or before January 1, 2015,
15(2) each bill amends Section 1720 of the Labor Code, and (3) this
16bill is enacted after Assembly Bill 26, in which case Section 1 of
17this bill shall not become operative.
No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.
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