AB 1158: Jobs and Economic Improvement Through Environmental Leadership Act of 2011: prevailing wage.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-04-16
Existing law establishes the Division of Labor Standards Enforcement in the Department of Industrial Relations for the enforcement of labor laws, including wage claims. Existing law assesses specified civil penalties on employers who fail to pay their employees minimum wages. 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. Existing law requires a contractor or subcontractor to forfeit to the state or political subdivision on whose behalf a public work is being performed a penalty, as provided and determined by the Labor Commissioner, for violations of these prevailing wage provisions.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor, until January 1, 2016, to certify projects for certain CEQA streamlining benefits if the project meets certain conditions, including a condition that the project creates high-wage, highly skilled jobs that pay prevailing wages. Existing law requires the applicant of a project that is so certified to include this wage condition in all contracts for the performance of work for the project.
This bill would specify that the above wage condition is subject to enforcement by the Division of Labor Standards Enforcement. The bill would make a project applicant who fails to pay, or fails to ensure the payment of, prevailing wages subject to the civil penalties for failure to pay minimum prevailing wages on a public work.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law establishes the Division of Labor Standards Enforcement in the Department of Industrial Relations for the enforcement of labor laws, including wage claims. Existing law assesses specified civil penalties on employers who fail to pay their employees minimum wages.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor, until January 1, 2016, to certify projects for certain CEQA streamlining benefits if the project meets certain conditions, including a condition that the project creates high-wage, highly skilled jobs that pay prevailing wages. Existing law requires the applicant of a project that is so certified to include this wage condition in all contracts for the performance of work for the project.
This bill would specify that the above wage condition is subject to enforcement by the Division of Labor Standards Enforcement. The bill would make a project applicant who fails to pay, or fails to ensure the payment of, prevailing wages subject to the civil penalties for failure to pay minimum wages.
This bill would declare that it is to take effect immediately as an urgency statute.
The Governor may certify a leadership project for streamlining pursuant to this chapter if all the following conditions are met:
(a)The project will result in a minimum investment of one hundred million dollars ($100,000,000) in California upon completion of construction.
(b)(1)The project creates high-wage, highly skilled jobs that pay prevailing wages and living wages and provide construction jobs and permanent jobs for Californians, and helps reduce unemployment. For purposes of this subdivision, jobs that pay prevailing wages means that all construction workers employed in the execution of the project will receive at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code. If the project is certified for streamlining, the project applicant shall include this requirement in all contracts for the performance of the work.
(2)The condition set forth in paragraph (1) is a labor standard subject to enforcement pursuant to Chapter 4 (commencing with Section 79) of Division 1 of the Labor Code.
(3)A project applicant who fails to pay prevailing wages or fails to ensure that prevailing wages are paid, as required pursuant to paragraph (1), is subject to the civil penalties set forth in Section 1197.1 1775 of the Labor Code.
(c)The project does not result in any net additional emission of greenhouse gases, including greenhouse gas emissions from employee transportation, as determined by the State Air Resources Board pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.
(d)The project applicant has entered into a binding and enforceable agreement that all mitigation measures required pursuant to this division to certify the project under this chapter shall be conditions of approval of the project, and those conditions will be fully enforceable by the lead agency or another agency designated by the lead agency. In the case of environmental mitigation measures, the applicant agrees, as an ongoing obligation, that those measures will be monitored and enforced by the lead agency for the life of the obligation.
(e)The project applicant agrees to pay the costs of the Court court of Appeal appeal in hearing and deciding any case, including payment of the costs for the appointment of a special master if deemed appropriate by the court, in a form and manner specified by the Judicial Council, as provided in the Rules of Court adopted by the Judicial Council pursuant to subdivision (f) of Section 21185.
(f)The project applicant agrees to pay the costs of preparing the administrative record for the project concurrent with review and consideration of the project pursuant to this division, in a form and manner specified by the lead agency for the project.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
To ensure that workers on a project certified by the Governor as an environmental leadership development project receive the prevailing wage appropriate for the type of work performed, as required pursuant to Chapter 6.5 (commencing with Section 21178) of Division 13 of the Public Resources Code, it is necessary for this measure to take effect immediately.
The Governor may certify a leadership project for streamlining pursuant to this chapter if all the following conditions are met:
(a)The project will result in a minimum investment of one hundred million dollars ($100,000,000) in California upon completion of construction.
(b)(1)The project creates high-wage, highly skilled jobs that pay prevailing wages and living wages and provide construction jobs and permanent jobs for Californians, and helps reduce unemployment. For purposes of this subdivision, jobs that pay prevailing wages means that all construction workers employed in the execution of the project will receive at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code. If the project is certified for streamlining, the project applicant shall include this requirement in all contracts for the performance of the work.
(2)The condition set forth in paragraph (1) is a labor standard subject to enforcement pursuant to Chapter 4 (commencing with Section 79) of Division 1 of the Labor Code.
(3)A project applicant who fails to pay prevailing wages or fails to ensure that prevailing wages are paid, as required pursuant to paragraph (1), is subject to the civil penalties set forth in Section 1197.1 of the Labor Code.
(c)The project does not result in any net additional emission of greenhouse gases, including greenhouse gas emissions from employee transportation, as determined by the State Air Resources Board pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.
(d)The project applicant has entered into a binding and enforceable agreement that all mitigation measures required pursuant to this division to certify the project under this chapter shall be conditions of approval of the project, and those conditions will be fully enforceable by the lead agency or another agency designated by the lead agency. In the case of environmental mitigation measures, the applicant agrees, as an ongoing obligation, that those measures will be monitored and enforced by the lead agency for the life of the obligation.
(e)The project applicant agrees to pay the costs of the Court of Appeal in hearing and deciding any case, including payment of the costs for the appointment of a special master if deemed appropriate by the court, in a form and manner specified by the Judicial Council, as provided in the Rules of Court adopted by the Judicial Council pursuant to subdivision (f) of Section 21185.
(f)The project applicant agrees to pay the costs of preparing the administrative record for the project concurrent with review and consideration of the project pursuant to this division, in a form and manner specified by the lead agency for the project.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
To ensure that workers on a project certified by the Governor as an environmental leadership development project receive the prevailing wage appropriate for the type of work performed, as required pursuant to Chapter 6.5 (commencing with Section 21178) of Division 13 of the Public Resources Code, it is necessary for this measure to take effect immediately.
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Date
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Status
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|---|---|
| Feb 27, 2015 | Introduced. To print. |
| Mar 1, 2015 | From printer. May be heard in committee March 31. |
| Mar 2, 2015 | Read first time. |
| Mar 23, 2015 | Referred to Coms. on NAT. RES. and L. & E. |
| Apr 6, 2015 | In committee: Set, first hearing. Further hearing to be set. |
| Apr 6, 2015 | Re-referred to Com. on L. & E. pursuant to Assembly Rule 96. |
| Apr 16, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended. |
| Apr 20, 2015 | Re-referred to Com. on L. & E. |
| Apr 22, 2015 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jan 31, 2016 | Died pursuant to Article IV, Sec. 10(c) of the Constitution. |
| Feb 1, 2016 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
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AB 1158
Page 3
Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 1158
(Campos) – As Amended April 16, 2015
SUBJECT: Jobs and Economic Improvement Through Environmental Leadership Act of 2011: prevailing wage
SUMMARY: Amends provisions of the Jobs and Economic Improvement Through Environmental Leadership Act of 2011 related to the payment of "prevailing wages." Specifically, this bill:
Specifies that existing requirements related to the payment of "prevailing wages" are labor standards subject to enforcement by the Division of Labor Standards Enforcement under existing law.
Provides that a project applicant who fails to pay prevailing wages or fails to ensure that prevailing wages are paid, is subject to specified civil penalties set forth under existing law.
Contains an urgency clause.
EXISTING LAW:
Enacts the Jobs and Economic Improvement Through Environmental Leadership Act of 2011, which authorizes the Governor, until January 1, 2016, to certify certain projects for specified streamlining under the California Environmental Quality Act (CEQA) if the project meets certain conditions.
Specifies, among other conditions, that the project must result in a minimum investment of $100 million in California upon completion of construction.
Specifies, among other conditions, that the project must create high-wage, highly-skilled jobs that pay prevailing wages and living wages and provide construction jobs and permanent jobs for Californians, and help reduce unemployment.
Provides that, for purposes of this requirement, "jobs that pay prevailing wages" means that all construction workers employed in the execution of the project will receive at least the general prevailing rate of per diem wages, as determined by the Director of Industrial Relations under existing law.
Specifies that if such a project is certified for streamlining, the project applicant shall include these prevailing wage requirements in all contracts for the performance of the work.
FISCAL EFFECT:
Unknown
COMMENTS: AB 900 (Buchanan and Gordon), Chapter 354, Statutes of 2011, enacted the Jobs and Economic Improvement Through Environmental Leadership Act of 2011. Among other things, AB 900 created an expedited judicial review procedure under CEQA for various types of LEED silver-certified infill projects, clean renewable energy projects, and clean energy manufacturing projects.
Among other things, AB 900 specified that the project must create high-wage, highly-skilled "jobs that pay prevailing wages" and living wages and provide construction jobs and permanent jobs for Californians, and help reduce unemployment
These provisions were revised by SB 743 (Steinberg), Chapter 386, Statutes of 2013, which generally addressed issues related to the Sacramento Kings arena construction project. However, SB 743 also revised certain provisions of AB 900, including those related to the payment of "prevailing wages" on covered projects.
Specifically, SB 743 added language that provided that, for purposes of this requirement, "jobs that pay prevailing wages" means that all construction workers employed in the execution of the project will receive at least the general prevailing rate of per diem wages, as determined by the Director of Industrial Relations under existing law. SB 743 also added language that specified that if such a project was certified for streamlining, the project applicant would be required to include these prevailing wage requirements in all contracts for the performance of the work.
This analysis only addresses the "prevailing wage" requirements of AB 900 and SB 743. For a more detailed discussion of the other policy issues raised by those bills, please refer to the respective policy committee analyses of those prior pieces of legislation.
ARGUMENTS IN SUPPORT
According to the author:
The term 'prevailing and living wages' in AB 900 was not defined in its original language. It was defined two years later, in SB 743 (Steinberg, 2013), as either the hourly wage rate of workers engaged in the same type of work within the nearest labor market area, or a calculation using the collective bargaining agreement rates from the nearest labor market area.
Although SB 743 helped in the calculation of prevailing wages, it did not establish an enforcement mechanism to make sure that project developers pay them. Because of this, there are reported cases of project developers obtaining CEQA streamlining benefits from the Governor, but not following through with the payment of prevailing wages to their workers.
Environmentally friendly projects with CEQA exemptions have been crucial in putting more people to work. However, if they fail to pay their workers fair wages, state and private agencies must be held responsible for not following their commitment to the Legislature, to the Governor, and to their workers."
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
Opposition
None on file.
Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091
Bill Author
Bill Co-Author(s):