SB 909: Public works.

Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement. Existing law defines public works for the purposes of regulating public contracts as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law generally requires a contractor or subcontractor to be registered with the Department of Industrial Relations to be qualified to bid on, be listed in a bid proposal, or engage in the performance of any public work contract. Existing law requires a contractor or subcontractor to meet specific conditions to qualify for this registration, including that a contractor or subcontractor pay an initial application fee and an annual renewal fee set by the Director of Industrial Relations. Existing law authorizes the department to establish and adjust annual registration and renewal fees up to $800 by publishing the fees on the departments internet website.

This bill would increase the fee limit to $1,000.

Existing law requires the Labor Commissioner to issue civil wage and penalty assessments to a contractor or subcontractor, or both, if, after an investigation, the commissioner determines there has been a violation of the laws regulating public works contractors, including the payment of prevailing wages. Existing law also authorizes the Labor Commissioner to assess specified civil penalties against a contractor or subcontractor for a violation of the skilled and trained workforce requirements, and authorizes reduction or waiver of a penalty for specified conditions. Existing law also sets a penalty schedule for subcontractors and contractors for, among other things, failing to pay the prevailing wage rate or failing to keep accurate payroll records, as specified.

Existing law establishes the State Public Works Enforcement Fund and directs all registration fees and other moneys, such as fines, to be deposited into the fund, to be available upon appropriation, for, among other purposes, the reasonable costs of administering registration with the Department of Industrial Relations. Existing law authorizes the awarding body for a public works project to not require the payment of the general prevailing rate of per diem wages on public works projects of specified sizes and types of work, including construction projects of $25,000 or less, if the awarding body elects to initiate and enforce a labor compliance program containing specified requirements for every public works project under its authority, as specified. Existing law requires a labor compliance program, if the involvement of the Labor Commissioner has been limited to a determination of the actual amount of penalty or the forfeiture or underpayment of wages, and the matter has been resolved without litigation by or against the Labor Commissioner, to deposit penalties and forfeitures with the awarding body.

This bill would increase certain penalties, as specified, and require all penalties received by the Labor Commissioner, as specified, to be deposited into the State Public Works Enforcement Fund. The bill would also add the reasonable costs of ensuring sufficient staffing levels in the Labor Commissioners office for public works project enforcement to the purposes of the fund. The bill would instead require an awarding body, if the involvement of the Labor Commissioner in a labor compliance program enforcement action has been limited and resolved, as specified, to deposit penalties with the awarding body that enforced the above-described provisions.

The bill would make conforming changes and related findings and declarations.