Bill Text: CA SB1303 | 2023-2024 | Regular Session | Amended

California Senate Bill 1303

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Public works.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-29 - Chaptered by Secretary of State. Chapter 991, Statutes of 2024. [SB1303 Detail]

Download: California-2023-SB1303-Amended.html

Amended IN Senate April 18, 2024

Amended IN Senate April 10, 2024

Amended IN Senate April 04, 2024

Amended IN Senate March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1303

Introduced by Senator Caballero

February 15, 2024

An act to add Section 1771.8 to the Labor Code, relating to public works.

LEGISLATIVE COUNSEL'S DIGEST

SB 1303, as amended, Caballero. 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 defines the term “public works” for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified.

Existing law requires an awarding body, as part of a labor compliance program, to withhold contract payments when, among other things, payroll records are delinquent or inadequate. Existing law requires an awarding body, as specified, to provide notice of withholding of contract payments to the contractor or subcontractor. Existing law requires the notice to be in writing, and describe the nature of the violation and the amount of wages, penalties, and forfeitures withheld.

This bill would require an awarding body or its agent, prior to withholding funds for an alleged violation, to, among other things, notify the Division of Labor Standards Enforcement and confer with the negotiating parties to review relevant public works law. The bill would require the awarding body or its agent to participate in a revised process authorizing the contractor or subcontractor to review and respond to the alleged violations.

This bill would also provide that a violation of the conflict of interest provisions by a private labor compliance entity, as defined, would void a contract between the parties and subject the entity to specified civil fines and fees. The bill would require a private labor compliance entity to submit a signed declaration under penalty of perjury verifying that it has no conflicts of interest, as specified. By requiring private labor compliance entities to declare under penalty of perjury that they have no conflicts of interest, the bill would expand the crime of perjury and impose a state-mandated local program.

Existing law authorizes a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 to bring an action against an employer who fails to pay the prevailing wage, or who fails to provide payroll records, as specified.

This bill would authorize, among others, a joint labor-management committee to initiate a private right of action against certain entities, when the court is required to award reasonable attorney’s fees and costs, as specified.

This bill would exempt certain awarding bodies operating labor compliance programs that are approved and monitored by the Department of Industrial Relations from the above-described provisions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

SECTION 1.

Section 1771.8 is added to the Labor Code, to read:

1771.8.

(a) For the purposes of this section, a “private labor compliance entity” is defined as a third-party company that is hired by an awarding body to perform labor compliance and enforcement activities on public works projects on its behalf.

(b) (1) A private labor compliance entity shall be prohibited from providing labor compliance and enforcement activities on behalf of an awarding body if it has a conflict of interest.

(2) A private labor compliance entity shall disclose a potential conflict of interest to the awarding body and the Division of Labor Standards Enforcement, including whether a client of the private labor compliance entity bids on, or has been awarded, a public works project that the labor compliance program has or will contract.

(3) Prior to entering into a contract for labor compliance and enforcement on a public works project of an awarding body, a private labor compliance entity shall submit to the awarding body and the Division of Labor Standards Enforcement a signed declaration under penalty of perjury verifying that it has no conflicts of interest.

(c) An awarding body or its agent, prior to withholding funds from a public works contractor for an alleged violation, including, but not limited to, worker classification, scope of work, travel and subsistence apprenticeship standards, shall do all of the following:

(1) Confer with the negotiating parties of the applicable agreements to review relevant public works law.

(2) Notify the Division of Labor Standards Enforcement.

(3) Not withhold an amount that exceeds the alleged underpayments and penalty assessments.

(d) An awarding body or its agent withholding funds from a public works contractor or subcontractor shall do both of the following:

(1) Within 20 days of a written request for review by the contractor or subcontractor, provide a venue for a public works contractor or subcontractor to review and respond to evidence of alleged violations.

(2) Forward any unremedied alleged violations to the Division of Labor Standards Enforcement for formal investigation within 45 days of withholding of funds.

(e) A violation of this section shall make a contract between a private labor compliance entity and an awarding agency null and void, and the private labor compliance entity would be subject to a penalty of not less than one thousand dollars ($1,000), including reasonable attorney’s fees, subject matter expert costs, and expenses.

(f) In the event of a violation of this section, an aggrieved party, including a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175(a)), shall have the right to initiate a private right of action. The private right of action may only be filed against a private labor compliance entity as defined in subdivision (a), an awarding entity, or an awarding entity’s agent. The court shall award reasonable attorney’s fees and costs incurred in maintaining the action, including expert witness fees to a prevailing plaintiff.

(g) In addition, the provisions of this section may be enforced by the Labor Commissioner or a public prosecutor as defined in Section 180.

(h) This section does not apply to the following awarding bodies operating labor compliance programs approved and monitored by the Department of Industrial Relations pursuant to Section 1771.5:

(1) The Department of Transportation.

(2) The City of Los Angeles.

(3) The Los Angeles Unified School District.

(4) The County of Sacramento.

SEC. 2.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.