Today's Law As Amended

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AB-842 Contractors: trust or custodial benefits plans: essential health benefits.(2015-2016)


 Chapter 2.5 (commencing with Section 325) is added to Part 1 of Division 2 of the Labor Code, to read:

CHAPTER  2.5. Contractors: employee health benefits.
 For purposes of this chapter, the following definitions apply:
(a) A “project labor agreement” refers to a prehire collective bargaining agreement that establishes the terms and conditions of employment for a specific construction project and is an agreement described in Section 158(f) of Title 29 of the United States Code.
(b) The “PPACA” refers to the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public law 111-152), and any rules, regulations, or guidance issued thereunder.
 A contractor that bids on or has been awarded work covered by a project labor agreement that provides health care coverage to workers on the project that is the subject of the agreement, that includes essential health benefits, as described in the PPACA in Section 18022 of Title 42 of the United States Code, and that provides evidence of that coverage to the entity awarding the contract, is exempt from a requirement to pay into a trust or custodial benefit plan, designated by the project labor agreement to provide health and welfare or similar benefits for those workers, an amount equal to the amount that the contractor would have been required to pay into that trust or custodial benefit plan for health care costs for those workers.