BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Senator Ben Hueso, Chair
Date of Hearing: June 25, 2014 2013-2014 Regular
Session
Consultant: Deanna D. Ping Fiscal:Yes
Urgency: No
Bill No: AB 2744
Author: Assembly Labor and Employment Committee
As Amended: June 18, 2014
SUBJECT
Public works: apprenticeship program
KEY ISSUE
Should the legislature approve conforming changes to labor code
to reflect a recent merger of duties within the Division of
Labor Standards Enforcement regarding the enforcement of
apprenticeship standards?
ANALYSIS
Under existing law, the Division of Apprenticeship Standards
(DAS), within DIR, is charged with the responsibility of
administering California apprenticeship law and enforces
apprenticeship standards for wages, hours, working conditions
and the specific skills required for state certification as a
journeyperson in an apprenticeable occupation. (Labor Code
�3073) Also within DIR, the Division of Occupational Safety and
Health is tasked with the responsibility of protecting workers
from health and safety hazards on the job (Labor Code �140).
Existing law states that when a contractor or subcontractor
performing a public works project is found by the Labor
Commissioner to be in violation of the requirements relating to
public works contracts, under specific circumstances the
contractor or subcontractor is ineligible to bid on, be awarded,
or perform work as a subcontractor on a public works contract
for between one and three years. (Labor Code �1777.1)
Existing law imposes a civil penalty on contractors or
subcontractors who are determined to have knowingly violated
specific provisions regulating the employment of apprentices on
public workers projects, provides that a contractor or
subcontractor who is determined to have knowingly committed a
serious violation of the apprentice employment provisions may
additionally be denied the right to bid on or be awarded or
perform as a subcontractor on any public works project for
specified periods of time, provides for a review of the civil
penalty or debarment by the Labor Commissioner, and provides for
a process to collect the civil penalty. (Labor Code 1777.7).
This bill makes conforming changes to reflect a recent merger of
duties within the Division of Labor Standards Enforcement (DLSE)
and more fully integrate enforcement of apprenticeship standards
within the enforcement mechanisms already available to address
other violations of the requirements for contractors and
subcontractors on public works projects under existing law.
Specifically, this bill:
(1)Amends current section 1777.1 to require the Labor
Commissioner to use the same procedures specified in section
1777.1 to seek the penalty of debarment against public works
contractors and subcontractors found to be in violation of the
apprenticeship standards identified in section 1777.5.
(2)Amends current section 1777.1 to include criteria for how the
Labor Commissioner shall consider in determining whether a
violation was serious and how long a party should be debarred.
(3)Repeals current section 1777.7 to add amendments revising
section 1777.7 in order to:
a. Require the Labor Commissioner to use the same
procedures specified in section 1741 to enforce monetary
penalty assessments against public works contractors and
subcontractors in addressing violations of the
apprenticeship standards identified in section 1777.5
Hearing Date: June 25, 2014 AB 2744
Consultant: Deanna D. Ping Page 2
Senate Committee on Labor and Industrial Relations
b. Make uniform the respective burdens of proof
applicable to contractors, subcontractors and the Labor
Commissioner under section 1742 when hearings are held
before the Director to review assessments for violations
of the apprenticeship standards identified in section
1777.5
c. Make uniform the requirement in section 1742 that
the amount of penalty assessments against contractors and
subcontractors addressing apprenticeship violations are
only reviewable for abuse of discretion
COMMENTS
1. Recent Merger of Duties Within the DLSE Public Works Unit
Effective June 27, 2012, the law was amended (SB 1038) to
transfer enforcement of apprenticeship standards from the
Chief of the Division of Apprenticeship Standards (DAS) to the
Labor Commissioner, who is the Chief of the Division of Labor
Standards Enforcement.
These apprenticeship standards require contractors and
subcontractors on "public works" (as defined in sections
1720-1720.6) to comply with four basic requirements listed in
section 1777.5:
1. Timely submit contract award information to applicable
DAS-approved apprenticeship programs that can supply
apprentices to the site of a public work
2. Timely request dispatch of DAS-registered apprentices
from those programs to the site
3. Employ apprentices dispatched within specified ratios of
work performed by apprentices to journeymen
4. Make contributions to either the California
Apprenticeship Council (CAC) or to an approved
apprenticeship program in amounts determined by the
Director of Industrial Relations to be prevailing in the
area of the public works site.
The transfer of authority neglected to specify that the Labor
Hearing Date: June 25, 2014 AB 2744
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Senate Committee on Labor and Industrial Relations
Commissioner would follow the same enforcement procedures
already required whenever determining after an investigation
that there has been a violation of the Public Works Chapter,
and whenever finding that a contractor or subcontractor
performing a public works project is subject to debarment
(ineligibility to bid on, be awarded, or perform work on a
public works project). This bill would require the Labor
Commissioner to follow these same enforcement procedures in
addressing violations of the apprenticeship standards listed
in section 1777.5, just as is the case when addressing any
other violations of the prevailing wage laws.
2. Need for this bill?
Effective June 27, 2012, the Division of Apprenticeship
Standards Public Works Unit and the Electrician Certification
Unit were merged with the Division of Labor Standards
Enforcement (DLSE) Public Works Unit. This merger allows DLSE
to enforce all aspects of public works law effectively and
comprehensively and makes DLSE responsible for enforcing
public works laws involving the payment of wages for journey
workers and apprentices and for apprenticeship ratio
complaints. However, some code sections were not properly
amended to reflect the changes made by this reorganization.
According to the author's office, AB 2744 would make the
necessary clean-up changes to reflect this merger of duties
within DLSE and more fully integrate enforcement of
apprenticeship standards within the enforcement mechanisms
already available to address other violations of the
requirements for contractors and subcontractors on public
works projects under existing law.
3. Proponent Arguments :
None on file.
4. Opponent Arguments :
None on file.
5. Prior Legislation :
Hearing Date: June 25, 2014 AB 2744
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Senate Committee on Labor and Industrial Relations
SB 1038 (Committee on Budget and Fiscal Review), Chapter 46,
Statutes of 2012 - eliminated the Division of Labor Statistics
and Research and established consolidated public works
enforcement within the Division of Labor Standards Enforcement
within the Department of Industrial Relations.
SUPPORT
None on file.
OPPOSITION
None on file.
Hearing Date: June 25, 2014 AB 2744
Consultant: Deanna D. Ping Page 5
Senate Committee on Labor and Industrial Relations