BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 266|
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THIRD READING
Bill No: SB 266
Author: Lieu (D)
Amended: 1/6/14
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 3-0, 1/15/14
AYES: Hueso, Leno, Yee
NO VOTE RECORDED: Wyland, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate 28.8
SUBJECT : Prevailing wages
SOURCE : California Nevada Conference of Operating Engineers
DIGEST : This bill clarifies the procedure for providing
notice of completion or acceptance of a public work to the Labor
Commissioner.
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.
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
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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.
Existing law defines "awarding body" or "body awarding the
contract" as the department, board, authority, officer or agent
awarding a contract for public work.
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.
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.
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.
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.
This bill:
1. Clarifies the procedure for providing notice of completion or
acceptance of a public work to the Labor Commissioner.
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2. 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.
3. States that if no document has been filed to the office 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.
4. 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.
5. 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.
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 1/17/14)
California - Nevada Conference of Operating Engineers (source)
ARGUMENTS IN SUPPORT : According to the author's office,
despite current law requiring an awarding body to file a notice
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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 this bill
clarifies any ambiguity by outlining the steps for furnishing
the proper documentation to the Labor Commissioner.
PQ:d 1/21/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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