BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 2744|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 2744
          Author:   Assembly Labor and Employment Committee
          Amended:  6/18/14 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE :  5-0, 6/25/14
          AYES:  Hueso, Wyland, Leno, Padilla, Mitchell

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  73-0, 5/8/14 (Consent) - See last page for vote


           SUBJECT  :    Public works:  apprenticeship program

           SOURCE  :     Author


           DIGEST  :    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.

           ANALYSIS  :    Under existing law, the Division of Apprenticeship  
          Standards (DAS), within the Department of Industrial Relations  
          (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  
                                                                CONTINUED





                                                                    AB 2744
                                                                     Page  
          2

          apprenticeable occupation.  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.

          Existing law states that when a contractor or subcontractor  
          performing a public works project is found by the Labor  
          Commissioner (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. 

          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 Commissioner, and provides for a  
          process to collect the civil penalty.  

          This bill makes conforming changes to reflect a recent 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.

          Specifically, this bill: 

          1.Amends existing Labor Code (LAB) Section 1777.1 to require the  
            Commissioner to use the same procedures specified in LAB  
            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 LAB Section  
            1777.5. 

          2.Amends existing LAB Section 1777.1 to include criteria for how  
            the Commissioner shall consider in determining whether a  
            violation was serious and how long a party should be debarred.  


                                                                CONTINUED





                                                                    AB 2744
                                                                     Page  
          3


          3.Repeals existing LAB Section 1777.7 to add amendments revising  
            LAB Section 1777.7 in order to: 

             A.   Require the Commissioner to use the same procedures  
               specified in LAB Section 1741 to enforce monetary penalty  
               assessments against public works contractors and  
               subcontractors in addressing violations of the  
               apprenticeship standards identified in LAB Section 1777.5.

             B.   Make uniform the respective burdens of proof applicable  
               to contractors, subcontractors and the Commissioner under  
               LAB Section 1742 when hearings are held before the Director  
               of DIR to review assessments for violations of the  
               apprenticeship standards identified in LAB Section 1777.5.

             C.   Make uniform the requirement in LAB Section 1742 that  
               the amount of penalty assessments against contractors and  
               subcontractors addressing apprenticeship violations are  
               only reviewable for abuse of discretion.

           Comments
           
          Effective June 27, 2012, the DAS Public Works Unit and the  
          Electrician Certification Unit were merged with the 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, this bill makes 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  7/31/14)

                                                                CONTINUED





                                                                    AB 2744
                                                                     Page  
          4


          AFSCME

           ASSEMBLY FLOOR  :  73-0, 5/8/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Grove, Hagman, Harkey, Roger Hern�ndez, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande,  
            Olsen, Pan, Patterson, Perea, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.  
            P�rez
          NO VOTE RECORDED:  Eggman, Gorell, Gray, Hall, Mansoor, V.  
            Manuel P�rez, Vacancy


          PQ:k  7/31/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****




















                                                                CONTINUED