Today's Law As Amended


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SB-574 Public agencies: project labor agreements.(2023-2024)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares all of the following:
(a) Project labor agreements have proven to be a successful construction management tool for the efficient completion of public projects.
(b) Project labor agreements also can provide contractors on state projects with access to registered apprentices and protect employees on public construction projects without burdening the resources of the Division of Labor Standards Enforcement.
(c) State agencies should, to the greatest extent feasible, make use of project labor agreements for major state construction projects and consider the use of project labor agreements for other state projects.

SEC. 2.

 Section 2504 is added to the Public Contract Code, immediately following Section 2503, to read:

2504.
 (a) (1) For purposes of this section, a “major state construction project” includes the erection, construction, alteration, repair, or improvement of any state structure, building, or other state improvement of any kind that will exceed a total cost of thirty-five million dollars ($35,000,000).
(2) “State agency,” as used in this section, means every state office, department, division, bureau, board, or commission.
(b) (1) A state agency may undertake a major state construction project only if that project is governed by a project labor agreement, as defined in paragraph (1) of subdivision (b) of Section 2500, and if that project labor agreement includes community benefit goals, including, but not limited to, hiring locals, women, underrepresented groups, and disadvantaged groups.
(2) Paragraph (1) shall apply to any construction contract for a major state construction project if that contract is advertised for bid or awarded on or after July 1, 2024.
(3) Paragraph (1) shall apply to a major state construction project undertaken by or for any state agency and paid for, in whole or in part, with state funds, including a major state construction project undertaken by or for any superior court, court of appeal, or the California Supreme Court.
(4) Paragraph (1) shall not apply to a major state construction project undertaken by or for the University of California, the California State University, or the California Community Colleges, unless that project is funded by state bonds.
(5) A state agency shall not divide or phase a major state construction project to avoid the application of paragraph (1).
(c) The Governor may waive the application of this section to a specific project if the state agency has attempted to comply with this section and the Governor makes a written determination that the application of this section to that project would be impracticable.
(d) Paragraph (1) of subdivision (b) shall not apply to the extent that the application of this section would result in a loss of federal funding.
(e) This section does not preclude the use of project labor agreements on any project not covered by this section.
(f) (1) Commencing January 1, 2029, the Department of General Services shall report to the Legislature every four years about the use of project labor agreements, the advancement of community benefit goals, and apprenticeships.
(2) The requirement for submitting a report imposed under paragraph (1) is inoperative on January 1, 2033, pursuant to Section 10231.5 of the Government Code.
(3) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.