GSBE Weekly Update 10/10/2018
AB 3018: State contracts: skilled and trained workforce – Approved
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 at least 30% of the skilled journeypersons employed to perform work on these contracts or projects, on or after January 1, 2017, to be graduates of an apprenticeship program. Existing law increases that percentage for work performed on or after January 1, 2018, and increases that percentage again for work performed on or after January 1, 2019, but excludes the same set of specified occupations from both of these increased percentage requirements. Existing law requires a contractor, bidder, or other entity to provide to the public entity or other awarding body, 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, for work performed on or after January 1, 2018, clarify that the same set of specified occupations continues to be subject to the current requirement that only 30% of skilled journeypersons employed to perform work on those contracts or projects be graduates of an apprenticeship program. The bill would require the public agency or other awarding body to forward a copy of the monthly report to the Labor Commissioner for issuance of a civil wage and penalty assessment and a copy of the plan, if any, to achieve substantial compliance with skilled and trained workforce requirements and the response to that plan, as prescribed, if the monthly report does not demonstrate compliance with skilled and trained workforce requirements.
The bill would limit the public agency or awarding body to withholding 150% of the value of the monthly billing for a subcontractor that failed to timely submit the required information or did not demonstrate compliance, and would allow the contractor, bidder, or other entity to withhold the same amount from the subcontractor. 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.
SB 1465: Contractors: civil actions: reporting – Approved
The Contractors’ State License Law, provides for the licensure, regulation, and discipline of contractors by the Contractors’ State License Board. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board. Under existing law, protection of the public is required to be the highest priority for the Contractors’ State License Board in exercising its licensing, regulatory, and disciplinary functions. Existing law requires a licensee to report to the registrar within 90 days of the date that the licensee has knowledge of the conviction of the licensee for any felony or any other crime substantially related to the qualifications, functions, and duties of a licensed contractor. Existing law also exempts from disclosure to the public a complaint resolved in favor of the contractor, as specified.
This bill would require a licensee to report to the registrar within 90 days of the date that the licensee has knowledge of any civil action resulting in a final judgment, executed settlement agreement, or final arbitration award in an action in which the licensee is named as a defendant or cross-defendant, that meets specified criteria, including that the amount or value of the judgment, settlement payment, or award is $1,000,000 or greater and that the action is the result of a claim for damages to a property or person allegedly caused by specified construction activities of a licensee on any part of a multifamily rental residential structure, as specified. The bill would require the registrar or a designee to review these reports, return them to the licensee, and take no further action if, upon review, the registrar or a designee makes any one of specified findings.
The bill would deem a returned report to be a complaint resolved in favor of the licensee. The bill would further require, within 30 days of all or a portion of the insurer’s payment of the judgment, settlement payment, or award, an insurer providing a specified type of insurance to that licensee to report listed information relating to the judgment, settlement payment, or award to the registrar.
AB 3231: Employment: public works: apprenticeship – Approved
Requires each contractor and subcontractor 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 him or her in connection with the public work. Existing law provides that a joint labor-management committee, established pursuant to a specified provision of federal law, is authorized to bring an action against any employer who fails to pay prevailing wages as required by state law. Existing law requires that copies of payroll records on public works projects be made available for inspection as specified, including a limit on redactions if made available for inspection by, or furnished to, a joint labor management committee.
This bill would authorize a joint labor-management committee to also bring an action against an employer who fails to provide payroll records under the same provisions for bringing an action against an employer for failure to pay prevailing wage.