GSBE Weekly Update 06/20/2018
AB-3018 State contracts: skilled and trained workforce
Existing law authorizes a public entity to require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project and requires that the commitment to use a skilled and trained workforce be made in an enforceable agreement that meets specified requirements. Existing law defines a “skilled and trained workforce” to mean a workforce that meets certain conditions, including specified apprenticeship graduation requirements. Existing law requires a contractor, bidder, or other entity to provide to the public entity or other awarding bodies, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with skilled and trained workforce requirements.
This bill would require the public agency or other awarding bodies to forward a copy of the monthly report to the Labor Commissioner for the issuance of a civil wage and penalty assessment, as prescribed, if the monthly report does not demonstrate compliance with skilled and trained workforce requirements.
The bill would require a contractor or subcontractor to pay a civil penalty to the state of not more than $5,000 per month of work performed in violation of the skilled and trained workforce requirements if the Labor Commissioner or his or her designee determines that the contractor or subcontractor failed to use a skilled and trained workforce.
The bill would require a contractor or subcontractor that commits a second or subsequent violation within a 3-year period to pay a civil penalty to the state of not more than $10,000 per month of work performed in violation of the skilled and trained workforce requirements.
The bill would require a contractor to obtain a declaration signed under penalty of perjury from the subcontractor that he or she has met the skilled and trained workforce requirements before making the final payment to the subcontractor.
The bill would make a contractor or subcontractor who, with the intent to defraud, violates the above-described requirements ineligible to bid on, be awarded, or perform work on a contract for a public works project, as specified.
The bill would require the Labor Commissioner to publish on the commissioner’s Internet Web site a list of contractors who are ineligible under these provisions. By expanding the crime of perjury, this bill would impose a state-mandated local program.
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.