SBE News

GSBE Weekly Update 10/24/2018

AB 2031 Public contracts: school facility projects: bidding requirements

GSBE Golden State Builders ExchangesExisting law requires a prospective bidder for a construction contract for certain school facility

projects to submit a pre-qualification questionnaire and financial statement, under oath, as part of the bidding process and requires each prospective bidder to submit a bid by completing and executing a standardized proposal form. Existing law requires the Director of Industrial Relations to submit a report to the Legislature, by January 1, 2018, on whether violations of the Labor Code on school district projects have decreased during the years these provisions are applicable to contracts. Existing law makes all of the above-specified provisions inoperative on January 1, 2019 and repeals them on July 1, 2019.

This bill extends the operation of the bill’s provisions indefinitely and would eliminate the reporting requirement. By extending the operation of the crime of perjury, the bill imposes a state-mandated local program.


AB 2762 Public contracts: disabled veteran business: local small business

Existing law authorizes a local agency in facilitating contract awards to small businesses to provide for a small business preference of 5% in construction, the procurement of goods, or the delivery of services, and establishes a subcontracting participation goal for small businesses on contracts with a 5% preference for those bidders who meet the goal. Existing law authorizes each local agency to define a small business for the purposes of these preferences and goals.

This bill increases the above-described preference for small business to 7%. The bill, until January 1, 2024, would also establish preferences, in specified counties, for disabled veteran businesses and social enterprises, as defined, and would provide for the preferences to be a maximum of 7% for an individual preference and up to 15% for a single bid having 2 or more preferences. The bill would limit the value of a preference to a maximum of $150,000 under these provisions. The bill authorizes a prime contractor, with the approval of the local agency, and subject to meeting specified conditions, to substitute another subcontractor for the purpose of meeting specified goals. The bill requires that the policy under which a prime contractor may substitute a subcontractor contain, among other things, a requirement that construction subcontractors awarded construction subcontracts be afforded all the protections of the Subletting and Subcontracting Fair Practices Act and a requirement that the condition qualifying the substitution be verified with the subcontractor.

The bill requires each local agency within specified counties that chooses to grant a preference under these provisions to define a small business, disabled veteran business, and social enterprise and to define their eligibility for the purposes of these preferences and goals and to establish a certification process for social enterprises using specified criteria. The bill also authorizes each local agency to define a disabled veteran business and social enterprise and to define their eligibility for the purposes of these preferences and goals.

AB 3231 Employment: public works

Existing law 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 authorizes 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.