Bill Text: CA AB2182 | 2023-2024 | Regular Session | Enrolled


Bill Title: Public works.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2024-09-27 - Vetoed by Governor. [AB2182 Detail]

Download: California-2023-AB2182-Enrolled.html

Enrolled  September 04, 2024
Passed  IN  Senate  August 29, 2024
Passed  IN  Assembly  August 30, 2024
Amended  IN  Senate  August 23, 2024
Amended  IN  Senate  August 15, 2024
Amended  IN  Senate  June 13, 2024
Amended  IN  Assembly  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2182


Introduced by Assembly Member Haney

February 07, 2024


An act to amend, repeal, and add Section 1773.6 of, and to add Sections 1771.2.1 and 1776.2 to, the Labor Code, relating to public works.


LEGISLATIVE COUNSEL'S DIGEST


AB 2182, Haney. Public works.
Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law requires the body awarding a contract for a public work to obtain from the director the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is to be performed, and the general prevailing rate of per diem wages for holiday and overtime work, for each craft, classification, or type of worker needed to execute the contract. Under existing law, if the director determines during any quarterly period that there has been a change in any prevailing rate of per diem wages in a locality, the director is required to make that change available to the awarding body and their determination is final.
Commencing July 1, 2026, this bill would, until January 1, 2031, instead require the director, if the director determines during any semiannual period that there has been a change in any prevailing rate of per diem wages in a locality, to make that change available to the awarding body and that decision would have exceptions to its finality, including authorizing a contractor, awarding body, or representative to file a petition to review the director’s determination. The bill would provide that the director’s determination would apply to any public works contract for which notice to bidders is published, after July 1, 2026, that meets certain requirements.
Existing law requires the Labor Commissioner to investigate allegations that a contractor or subcontractor violated the law regulating public works projects, including the payment of prevailing wages. Existing law requires each contractor and subcontractor on a public works project to keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by the contractor or subcontractor in connection with the public work. Existing law requires any copy of records made available for inspection as copies and furnished upon request to the public or any public agency to be marked or obliterated to prevent disclosure of an individual’s name, address, and social security number but specifies that any copy of records made available to a Taft-Hartley trust fund for the purposes of allocating contributions to participants be marked or obliterated only to prevent disclosure of an individual’s full social security number, as specified. Existing law makes any contractor, subcontractor, agent, or representative who neglects to comply with the requirements to keep accurate payroll records guilty of a misdemeanor.
Commencing July 1, 2026, this bill would require jobsites to give reasonable access, as defined, to representatives of a joint labor-management committee in order to monitor compliance with the prevailing wage and apprenticeship requirements. The bill would exempt an awarding body, owner, contractor, or subcontractor from liability for any violations of safety guidelines caused by a committee’s representative. The bill would authorize the committee to bring an action against an awarding body, contractor, or subcontractor that willfully denies the committee’s representative reasonable access.
This bill would authorize, if a contractor or subcontractor fails to make payroll records available for inspection by the Labor Commissioner within a specified period, the imposition of certain penalties.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 1771.2.1 is added to the Labor Code, to read:

1771.2.1.
 (a) (1) Representatives of a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be permitted reasonable access to active public works jobsites to monitor compliance with the prevailing wage and apprenticeship requirements of this chapter.
(2) For purposes of this section, “reasonable access” means access that is consistent with jobsite safety and security requirements, including the use of personal protective equipment, that does not disrupt performance of work. Reasonable access includes access to workers during nonwork time.
(3) An awarding body, owner, contractor, or subcontractor shall not be liable for any violations of safety standards caused by a representative of a joint labor-management committee.
(4) If a representative of a joint labor-management committee is injured on a jobsite while performing duties pursuant to this section, the committee’s workers’ compensation or liability insurance policy, or both, shall be the exclusive remedy of the representative, and the awarding body, owner, contractor, or subcontractor shall not have any liability.
(b) (1) (A) A joint labor-management committee described in subdivision (a) may bring an action in any court of competent jurisdiction against an awarding body, contractor, or subcontractor that willfully denies the committee’s representative reasonable access in violation of this section.
(B) The action described in paragraph (1) shall be brought within six months after the denial of access.
(2) (A) A court in the action described in paragraph (1) shall award a prevailing joint labor-management committee a civil penalty of one thousand dollars ($1,000) for each occasion that reasonable access was denied.
(B) A court in the action described in paragraph (1) shall award a prevailing joint labor-management committee its reasonable attorney’s fees and costs incurred in maintaining the action, including expert witness fees.
(c) Notwithstanding subdivisions (a) and (b), this section shall not apply to public works jobsites for entities that are required to comply with Sections 45122.1, 45125, and 45125.1 of the Education Code.
(d) This section shall become operative on July 1, 2026.

SEC. 2.

 Section 1773.6 of the Labor Code is amended to read:

1773.6.
 (a) If during any semiannual period the Director of Industrial Relations shall determine that there has been a change in any prevailing rate of per diem wages in any locality they shall make such change available to the awarding body and their determination shall be final. Such determination by the Director of Industrial Relations shall not be effective as to any contract for which the notice to bidders has been published.
(b) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 3.

 Section 1773.6 is added to the Labor Code, to read:

1773.6.
 (a) If during any semiannual period the Director of Industrial Relations determines that there has been a change in any prevailing rate of per diem wages in any locality, they shall make such change available to the awarding body and the director’s determination shall be final, except as specified in this section. Such determination by the director shall not be effective as to any contract for which the notice to bidders has been published, except as provided in subdivision (b).
(b) Notwithstanding subdivision (a) and paragraph (1) of subdivision (c) of Section 1773.9, a change in the prevailing rate of per diem wages determined pursuant to subdivision (a) shall apply on its effective date to any contract for which notice to bidders is published after July 1, 2026, that meets all of the following requirements:
(1) The contract is not for the development of housing.
(2) The contract is subject to this chapter.
(3) The awarded value of the prime contract is thirty-five million dollars ($35,000,000) or greater.
(4) (A) The contract is not awarded by the state or a state agency, nor is the contract awarded in furtherance of a project undertaken by the state.
(B) As used in this section, the term “state” is inclusive of the Legislature, the Judicial Council, the California State University, and the University of California.
(c) (1) Any contractor, awarding body, or representative of any craft, classification, or type of work affected by a change in rates on a particular contract may, within 20 days after publication of the new determination, file with the director a verified petition to review the determination of that rate upon the ground that it has not been determined in accordance with Section 1773. Within two days after the filing of the petition, a copy of that petition shall be filed with the awarding body. The petition shall set forth the facts upon which it is based.
(2) The director, or the director’s authorized representative, shall, upon notice to the petitioner, the awarding body, and other persons the director deems proper, including the recognized collective bargaining representatives for the particular crafts, classifications, or types of work involved, initiate an investigation or hold a hearing. Within 20 days after the filing of that petition, or within a longer period as agreed upon by the director, awarding body, and all interested parties, the director shall make a determination and transmit that determination in writing to the awarding body and to the interested parties. This determination is final.
(d) A determination issued by the director is effective 10 days after its issuance. The director shall include an issue date on the determination. The determination shall remain in effect until it is modified, rescinded, or superseded by the director.
(e) This section shall become operative on July 1, 2026.
(f) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.

SEC. 4.

 Section 1773.6 is added to the Labor Code, to read:

1773.6.
 (a) If during any semiannual period the Director of Industrial Relations shall determine that there has been a change in any prevailing rate of per diem wages in any locality, the director shall make such change available to the awarding body and the director’s determination shall be final. Such determination by the director shall not be effective as to any contract for which the notice to bidders has been published.
(b) This section shall become operative on January 1, 2031.

SEC. 5.

 Section 1776.2 is added to the Labor Code, to read:

1776.2.
 (a) Upon request of the Labor Commissioner, a contractor or subcontractor shall make available for inspection by the Labor Commissioner any payroll records requested, or portion thereof, by the Labor Commissioner to verify the accuracy or completeness of certified payroll records required to be produced pursuant to Section 1776. The contractor or subcontractor has 10 days in which to comply following receipt of a written notice from the Labor Commissioner requesting records. In the event the contractor or subcontractor fails to comply with the 10-day period or any additional time period granted by the Labor Commissioner at the request of the contractor or subcontractor, the contractor or subcontractor shall be liable for the penalties provided in subdivision (h) of Section 1776.
(b) For purposes of this section, the term “payroll records” shall have the same meaning as in Section 16000 of Title 8 of the California Code of Regulations.

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