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AB-1045 Public works: prevailing wages.(2019-2020)

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Date Published: 03/19/2019 09:00 PM
AB1045:v98#DOCUMENT

Amended  IN  Assembly  March 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1045


Introduced by Assembly Member Chen

February 21, 2019


An act to amend Section 1782 1771 of the Labor Code, relating to public works.


LEGISLATIVE COUNSEL'S DIGEST


AB 1045, as amended, Chen. Public works: charter cities. prevailing wages.
Existing law generally requires that not less than the general prevailing rate of per diem wages, as specified, be paid to workers employed on a public work, as defined. works project that exceeds $1,000. Existing law sets forth the penalties for a violation of this requirement. Existing law prohibits a charter city from receiving or using state funding or financial assistance for a construction project if the charter city has a charter that does not require, or the charter city has not required within the last 2 years, compliance with these provisions on a public works contract, as specified.

This bill would make technical, nonsubstantive changes to this provision.

This bill would increase the threshold to require the payment of a prevailing rate of per diem wages to $100,000.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1771 of the Labor Code is amended to read:

1771.
 (a) Except for public works projects of one thousand dollars ($1,000) one hundred thousand dollars ($100,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.

This

(b) This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work.

SECTION 1.Section 1782 of the Labor Code is amended to read:
1782.

(a)A charter city shall not receive or use state funding or financial assistance for a construction project if the charter city has a charter provision or ordinance that authorizes a contractor to not comply with the provisions of this article on any public works contract.

(b)A charter city shall not receive or use state funding or financial assistance for a construction project if the charter city has awarded, within the prior two years, a public works contract without requiring the contractor to comply with all of the provisions of this article. This subdivision shall not apply if the charter city’s failure to include the prevailing wage or apprenticeship requirement in a particular contract was inadvertent and contrary to a city charter provision or ordinance that otherwise requires compliance with this article.

(c)A charter city is not disqualified by subdivision (a) from receiving or using state funding or financial assistance for its construction projects if the charter city has a local prevailing wage ordinance for all its public works contracts that includes requirements that in all respects are equal to or greater than the requirements imposed by the provisions of this article and that do not authorize a contractor to not comply with this article.

(d)For purposes of this section, the following shall apply:

(1)A public works contract does not include contracts for projects of twenty-five thousand dollars ($25,000) or less when the project is for construction work, or projects of fifteen thousand dollars ($15,000) or less when the project is for alteration, demolition, repair, or maintenance work.

(2)A charter city includes any agency of a charter city and any entity controlled by a charter city whose contracts would be subject to this article.

(3)A “construction project” means a project that involves the award of a public works contract.

(4)State funding or financial assistance includes direct state funding, state loans and loan guarantees, state tax credits, and any other type of state financial support for a construction project. State funding or financial assistance does not include revenues that charter cities are entitled to receive without conditions under the California Constitution.

(e)The Director of Industrial Relations shall maintain a list of charter cities that may receive and use state funding or financial assistance for their construction projects.

(f)(1)This section does not restrict a charter city from receiving or using state funding or financial assistance that was awarded to the charter city prior to January 1, 2015, or from receiving or using state funding or financial assistance to complete a contract that was awarded prior to January 1, 2015.

(2)A charter city is not disqualified by subdivision (b) from receiving or using state funding or financial assistance for its construction projects based on the charter city’s failure to require a contractor to comply with this article in performing a contract the charter city advertised for bid or awarded prior to January 1, 2015.