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

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Date Published: 03/22/2023 10:30 AM
SB574:v98#DOCUMENT

Amended  IN  Senate  March 22, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 574

Introduced by Senator Wahab

February 15, 2023

An act to amend Section 22000 of add Section 2504 to the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


SB 574, as amended, Wahab. Public agencies: cost accounting standards. project labor agreements.
Existing law establishes procedures for state agencies to enter into contracts for goods and services, including generally requiring that certain contracts by a state agency, including, but not limited to, contracts for the construction, alteration, improvement, repair, or maintenance of property, be approved by the Department of General Services.
Existing law authorizes a public entity to use, enter into, or require contractors to enter into, a project labor agreement, as defined, for a construction project, if the agreement includes specified taxpayer protection provisions.
This bill would permit a state agency to undertake a major state construction project only if that project is governed by a project labor agreement and if that project labor agreement includes community benefit goals, as specified, and would define various terms for these purposes. The bill would authorize the Governor to waive this requirement if the state agency has attempted to comply with this requirement and the Governor makes a written determination that the application of this requirement would be impracticable. The bill would require the Department of General Services, commencing January 1, 2029, to report to the Legislature about the use of project labor agreements, the advancement of community benefit goals, and apprenticeships, as specified. The bill would also make a related statement of legislative findings and declarations.

Existing law, the Uniform Public Construction Cost Accounting Act, authorizes a public agency to elect to become subject to uniform construction cost accounting procedures. Existing law provides for the development of cost accounting standards and an alternative method for the bidding of public works projects by public entities.

This bill would make a nonsubstantive change to that law.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


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.

SECTION 1.Section 22000 of the Public Contract Code is amended to read:
22000.

This chapter shall be known, and may be cited, as the “Uniform Public Construction Cost Accounting Act.”