BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Ben Hueso, Chair
Date of Hearing: January 15, 2014 2013-2014 Regular
Session
Consultant: Deanna D. Ping Fiscal: Yes
Urgency: No
Bill No: SB 266
Author: Lieu
As Introduced/Amended: January 6, 2014
SUBJECT
Prevailing wages.
KEY ISSUE
Should the legislature clarify the notification of completion
process for public works projects?
ANALYSIS
Existing law defines "public works" to include, among other
jobs, construction, alteration, demolition, installation, or
repair work done under contract and paid for in whole or in part
out of public funds. (Labor Code �1720)
Under existing law , "paid for in whole or in part out of public
funds" means, among other things, the following:
1. The payment of money or the equivalent of money by the
state or political subdivision directly to or on behalf of
the public works contractor, subcontractor, or developer.
2. The performance of construction work by the state or
political subdivision in execution of the project.
3. Fees, costs, rents, insurance or bond premiums, loans,
interest rates, or other obligations that would normally be
required in the execution of the contract, that are paid,
reduced, charged at less than fair market value, waived, or
forgiven by the state or political subdivision.
4. Money loaned by the state or political subdivision that
is to be repaid on a contingent basis.
(Labor Code �1720)
Existing law defines "awarding body" or "body awarding the
contract" as the department, board, authority, officer or agent
awarding a contract for public work. (Labor Code �1722)
Existing law requires all employees who work on public works
projects costing $1,000 or more to be paid the general
prevailing rate of per diem wages and the general prevailing
rate for holiday and overtime work for the specific location
where the public work is to be performed. (Labor Code �1771)
Existing law states the person filing a notice of completion in
the office of the county recorder shall at the same time also
provide notice to the Labor Commissioner, in a manner determined
by the Labor Commissioner. (Labor Code �1741.1)
Existing law also states that the awarding body or political
subdivision accepting a public work shall provide notice of that
acceptance to the Labor Commissioner within five days of the
acceptance, in a manner determined by the Labor Commissioner.
(Labor Code �1741.1)
Existing law states that the 180 day period for service of
assessments shall be tolled for the length of time notice is not
given in a timely manner to the Labor Commissioner.
(Labor Code �1741.1)
This Bill clarifies the procedure for providing notice of
completion or acceptance of a public work to the Labor
Commissioner.
Specifically, this bill :
Requires, within 10 days after receipt of a written
request from the Labor Commissioner, the awarding body to
furnish a copy of the valid notice of completion or a
document evidencing acceptance of a public work, whichever
occurs later, to the Labor Commissioner by first-class
mail.
States that if no document has been filed to the office
Hearing Date: January 15, 2014 SB 266
Consultant: Deanna D. Ping Page 2
Senate Committee on Labor and Industrial Relations
of the county recorder and there is no document evidencing
the awarding body's acceptance of the public work on a
particular date then the awarding body shall notify the
office of the Labor Commissioner.
Requires that after the notification of no
documentation, the awarding body must supply copies of the
applicable document within 10 days after filing a valid
notice of completion with the county recorder's office or
the awarding body's acceptance of the public work.
States that if the awarding body fails to timely furnish
the Labor Commissioner with the documents identified the
period for service of assessments shall be tolled until the
Labor Commissioner's actual receipt of the valid notice of
completion or a document evidencing the awarding body's
acceptance of the public work.
COMMENTS
1. Need for this bill?
Last year, the author introduced SB 377 a bill that sought to
streamline the determination process for public works projects
to ensure workers receive the legally mandated prevailing
wage. Among other things, SB 377 required that an awarding
body notify the Director of Industrial Relations and Labor
Commissioner if a project is not a public works. Additionally,
SB 377 imposed a time limit on the process for the
determination of a project's public work status and penalty
assessment in order to alleviate the long wait time many
workers experienced.
SB 377 was signed into law by Governor Brown. In his signing
message, Governor Brown asked the legislature to send him a
bill the following year to streamline the notice of completion
process outlined in SB 377. According to the author's office,
SB 266 was drafted to address the Governor's request and
ensure the efficient implementation of the bill. Current law
states that a notice of completion must be provided to the
Labor Commissioner in a manner determined by the Labor
Hearing Date: January 15, 2014 SB 266
Consultant: Deanna D. Ping Page 3
Senate Committee on Labor and Industrial Relations
Commissioner. SB 266 would clarify the notice of completion
process including a 10 day deadline for furnishing the
documents requested by the Labor Commissioner.
2. Proponent Arguments :
According to the author's office, despite current law
requiring an awarding body to file a notice of completion with
both the office of the county recorder and the Labor
Commissioner, the code remains vague on the exact process of
filing a notice of completion to the Labor Commissioner. The
author's office contends that SB 266 clarifies any ambiguity
by outlining the steps for furnishing the proper documentation
to the Labor Commissioner.
3. Opponent Arguments :
None received.
4. Prior Legislation :
SB 377 (Lieu), Chapter 780, Statutes of 2013 - created a
notification requirement for an awarding body when a project
is not a public works, imposed a time limit on public works
determinations and civil wage and penalty assessments, and
tolled the 180 day statue to after the receipt of the public
works determination.
SUPPORT
None received.
OPPOSITION
None received.
Hearing Date: January 15, 2014 SB 266
Consultant: Deanna D. Ping Page 4
Senate Committee on Labor and Industrial Relations
Hearing Date: January 15, 2014 SB 266
Consultant: Deanna D. Ping Page 5
Senate Committee on Labor and Industrial Relations