Bill Text: CA AB3073 | 2017-2018 | Regular Session | Amended
Bill Title: Investor-owned utilities: contracting.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-04-09 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB3073 Detail]
Download: California-2017-AB3073-Amended.html
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Amended
IN
Assembly
March 22, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 3073 |
| Introduced by Assembly Member Low |
February 16, 2018 |
An act to amend Section 90.5 of the Labor Code, relating to employment. 9100 of, and to add Sections 9301 and 9551 to, the Civil Code, to amend Sections 1720, 1721, 1722, and 1773.2 of the Labor Code, and to amend Sections 4103, 4104, and 4104.5 of, to add Sections 2504, 4102, 4115, 4116, and 4117 to, and to repeal and add Section 4113 of, the Public Contract Code, relating to investor-owned utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 3073, as amended, Low.
Labor standards enforcement. Investor-owned utilities: contracting.
(1) Existing law requires a direct contractor that is awarded a public works contract involving an expenditure greater than $25,000 to give a payment bond to, and approved by, the officer or public entity by whom the contract was awarded, and authorizes specified persons that have not been paid in full to assert a claim against a payment bond, subject to specified procedures.
This bill would also require a direct contractor that is awarded a contract for a project of an investor-owned utility that is subject to the Subletting and Subcontracting Fair Practices Act provisions described below to give a payment bond to, and approved by,
the investor-owned public utility, and would make other conforming changes to that effect.
(2) Existing law defines the term “public works” for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except for specified exceptions, including for work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. Existing law makes a willful violation of laws relating to the payment of prevailing wages on public works a misdemeanor.
This bill would expand the term
“public work” to include a project of an investor-owned utility that is subject to the Subletting and Subcontracting Fair Practices Act provisions described below, and would make conforming changes to that effect. The bill would require an investor-owned utility awarding a contract of that nature to specify, in the call for bids of that contract and in the bid specifications, certain information related to the prevailing rate of wages applicable to the project. By expanding the definition of “public works,” the bill would expand the scope of an existing crime, and would thereby impose a state-mandated local program.
(3) Existing law, the Subletting and Subcontracting Fair Practices Act, among other things, requires an entity taking bids for the construction of any public work or improvement to specify that any person making a bid or offer
to perform the work shall, in his or her bid or offer, include specified information, including the name, contractor license number, and location of the place of business of each subcontractor who will perform work or labor or render service to the prime contractor in or about the work or improvement.
The Subletting and Subcontracting Fair Practices Act imposes related requirements on contracts subject to its provisions, including prohibiting a prime contractor whose bid is accepted by an awarding authority from substituting a person as subcontractor in place of the subcontractor listed in the original bid, except as provided. The Subletting and Subcontracting Fair Practices Act requires specified declarations related to objections to substitutions of a subcontractor, in the case of an inadvertent clerical error, to be submitted under penalty of perjury.
Existing law defines a “skilled and trained workforce” to mean a workforce that meets certain conditions, including specified apprenticeship graduation requirements, for when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or
other entity will use a skilled and trained workforce to complete a contract or project.
This bill would require a project of an investor-owned utility that exceeds $100,000 to comply with the requirements of the Subletting and Subcontracting Fair Practices Act. By requiring subcontractors on projects of an investor-owned utility subject to this act to submit the declarations described above under penalty of perjury, this bill would impose a state-mandated local program. The bill would require specified notices, bids, subcontractor lists, or other written documents that are required to be submitted to an investor-owned utility to also be submitted to the Public Utilities Commission. The bill would require an investor-owned utility for a project that is subject to these provisions to solicit bids in writing and to award the work to the lowest responsible bidder or reject all bids. The bill would require the investor-owned utility to include specified information in
the bid solicitation. The bill would require an investor-owned utility to provide an enforceable commitment to the investor-owned utility that the contractor and subcontractors at every tier will use a skilled and trained workforce to perform all work on the public works contract subject to this chapter that falls within an apprenticeship occupation in the building and construction trades, subject to certain requirements and procedures that are similar to existing skilled and trained workforce requirements, including that the investor-owned utility enter into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce. The bill would require the Public Utilities Commission to require all investor-owned utilities to report compliance with the skilled and trained workforce requirements, and would authorize the commission to grant exceptions or delays from compliance only if 2 requirements are met.
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.
Existing law requires the Labor Commissioner to establish and maintain a field enforcement unit in order to ensure that minimum labor standards are met.
This bill would make nonsubstantive changes to this provision.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares that:(a) The practices of bid shopping and bid peddling in connection with certain projects, as defined in this act, of investor-owned utilities regulated by the Public Utilities Commission often result in poor quality of material and workmanship to the detriment of the ratepaying public, deprive the public of the full benefits of fair competition among prime contractors and subcontractors, and lead to
insolvencies, loss of wages to employees, and other evils. Therefore, the same requirements for dealing with these problems on public works under the Subletting and Subcontracting Fair Practices Act should be imposed on certain investor-owned utilities, as defined in this act.
(b) To ensure a fair and open bidding process and to eliminate favoritism, fraud, and corruption in the award of contracts and to protect ratepayers from unnecessary costs, certain investor-owned utilities should be required to award construction projects to the lowest responsible bidder.
(c) The requirements of competitive bidding imposed by this act will make it necessary to also impose the
same protections for employees and the public as currently afforded on public works. Specifically, this act would protect employees on those projects from substandard wages that might be paid if contractors could recruit labor from distant cheap-labor areas, permit union contractors to compete with nonunion contractors, benefit the public through the superior efficiency of well-paid employees, require certain investor-owned utilities to participate in state-certified apprenticeship programs in order to secure a trained construction workforce to meet California’s infrastructure needs, and compensate nonpublic employees with higher wages for the absence of job security and employment benefits enjoyed by public employees. The prevailing wage is a minimum wage, which the Legislature finds should be extended to workers employed on certain projects of investor-owned utilities regulated by the Public Utilities Commission, which heretofore have been excluded from that protection.
SEC. 2.
Section 9100 of the Civil Code is amended to read:9100.
(a) Except as provided in subdivision(1) A person that provides work for a public works contract, if the work is authorized by a direct contractor, subcontractor, architect, project manager, or other person having charge of all or part of the public works contract.
(2) A laborer.
(3) A person described in Section 4107.7 of the Public Contract Code.
(b) Except as provided in subdivision (c), both of the following persons that have not been paid in full may assert a claim against a payment bond that was made in connection with a project of an investor-owned utility that is subject to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code:
(1) A person that provides work for a contract for a project of an investor-owned utility subject to this subdivision, if the work is authorized by a direct contractor, subcontractor, architect, project manager, or other person having charge of all or part of the contract for a project
of an investor-owned utility subject to this subdivision.
(2) A laborer.
(b)
(c) A direct contractor may not give a stop payment notice or assert a claim against a payment bond under this title.
SEC. 3.
Section 9301 is added to the Civil Code, to read:9301.
For purposes of this chapter, the term “public entity” when used in reference to a payment bond includes an investor-owned utility, and any construction project or work contracted by that utility that is subject to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code shall be considered a “public work.”SEC. 4.
Section 9551 is added to the Civil Code, to read:9551.
For purposes of this chapter, the term “public entity” includes an investor-owned utility, and any construction project or work contracted by that utility that is subject to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code shall be considered a “public work.”SEC. 5.
Section 1720 of the Labor Code is amended to read:1720.
(a) As used in this chapter, “public works” means:(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds, except work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, “construction” includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and
disassembly of freestanding and affixed modular office systems.
(2) Work done for irrigation, utility, reclamation, and improvement districts, and other districts of this type. “Public work” does not include the operation of the irrigation or drainage system of any irrigation or reclamation district, except as used in Section 1778 relating to retaining wages.
(3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of any officer or public body of the state, or of any political subdivision or district thereof, whether the political subdivision or district operates under a freeholder’s charter or not.
(4) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.
(5) The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.
(6) Public transportation demonstration projects authorized pursuant to Section 143 of the Streets and Highways Code.
(7) (A) Infrastructure project grants from the California Advanced Services Fund pursuant to Section 281 of the Public Utilities Code.
(8) Tree removal work done in the execution of a project under paragraph (1).
(B) For purposes of this paragraph, the Public Utilities Commission is not the awarding body or the body awarding the contract, as defined in Section 1722.
(9) Any project of an investor-owned utility that is subject to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code.
(b) For purposes of this section, “paid for in whole or in part out of public funds” means all of the following:
(1) The payment of money or the equivalent of money by the state or political subdivision directly to or on behalf of the public works contractor, subcontractor, or developer.
(2) Performance of construction work by the state or political subdivision in execution of the project.
(3) Transfer by the state or political subdivision of an asset of value for less than fair market price.
(4) Fees, costs, rents, insurance or bond premiums, loans, interest rates, or other obligations that would normally be required in the execution of the contract, that are paid, reduced, charged at less than fair market value, waived, or forgiven by the state or political subdivision.
(5) Money loaned by the state or political subdivision that is to be repaid on a contingent basis.
(6) Credits that are applied by the state or political subdivision against repayment obligations to the state or political subdivision.
(c) Notwithstanding subdivision (b):
(1) Private residential projects built on private property are not subject to the requirements of this chapter unless the projects are built
pursuant to an agreement with a state agency, a redevelopment agency, a successor agency to a redevelopment agency when acting in that capacity, or a local public housing authority.
(2) If the state or a political subdivision requires a private developer to perform construction, alteration, demolition, installation, or repair work on a public work of improvement as a condition of regulatory approval of an otherwise private development project, and the state or political subdivision contributes no more money, or the equivalent of money, to the overall project than is required to perform this public improvement work, and the state or political subdivision maintains no proprietary interest in the overall project, then only the public improvement work shall thereby become subject to this chapter.
(3) If the state or a political subdivision reimburses a private developer for costs that
would normally be borne by the public, or provides directly or indirectly a public subsidy to a private development project that is de minimis in the context of the project, an otherwise private development project shall not thereby become subject to the requirements of this chapter.
(4) The construction or rehabilitation of affordable housing units for low- or moderate-income persons pursuant to paragraph (5) or (7) of subdivision (e) of Section 33334.2 of the Health and Safety Code that are paid for solely with moneys from the Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the Health and Safety Code or that are paid for by a combination of private funds and funds available pursuant to Section 33334.2 or 33334.3 of the Health and Safety Code do not constitute a project that is paid for in whole or in part out of public funds.
(5) Unless otherwise
required by a public funding program, the construction or rehabilitation of privately owned residential projects is not subject to the requirements of this chapter if one or more of the following conditions are met:
(A) The project is a self-help housing project in which no fewer than 500 hours of construction work associated with the homes are to be performed by the home buyers.
(B) The project consists of rehabilitation or expansion work associated with a facility operated on a not-for-profit basis as temporary or transitional housing for homeless persons with a total project cost of less than twenty-five thousand dollars ($25,000).
(C) Assistance is provided to a household as either mortgage assistance, downpayment assistance, or for the rehabilitation of a single-family home.
(D) The project consists of new construction, expansion, or rehabilitation work associated with a facility developed by a nonprofit organization to be operated on a not-for-profit basis to provide emergency or transitional shelter and ancillary services and assistance to homeless adults and children. The nonprofit organization operating the project shall provide, at no profit, not less than 50 percent of the total project cost from nonpublic sources, excluding real property that is transferred or leased. Total project cost includes the value of donated labor, materials, and architectural and engineering services.
(E) The public participation in the project that would otherwise meet the criteria of subdivision (b) is public funding in the form of below-market interest rate loans for a project in which occupancy of at least 40 percent of the units is restricted for at least 20 years,
by deed or regulatory agreement, to individuals or families earning no more than 80 percent of the area median income.
(d) Notwithstanding any provision of this section to the contrary, the following projects shall not, solely by reason of this section, be subject to the requirements of this chapter:
(1) Qualified residential rental projects, as defined by Section 142(d) of the Internal Revenue Code, financed in whole or in part through the issuance of bonds that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.
(2) Single-family residential projects financed in whole or in part through the issuance of qualified mortgage revenue bonds or qualified veterans’ mortgage bonds, as
defined by Section 143 of the Internal Revenue Code, or with mortgage credit certificates under a Qualified Mortgage Credit Certificate Program, as defined by Section 25 of the Internal Revenue Code, that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.
(3) Low-income housing projects that are allocated federal or state low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code, on or before December 31, 2003.
(e) Notwithstanding paragraph (1) of subdivision (a), construction, alteration, demolition, installation, or repair work on the electric
transmission system located in California constitutes a public works project for the purposes of this chapter.
(f) If a statute, other than this section, or a regulation, other than a regulation adopted pursuant to this section, or an ordinance or a contract applies this chapter to a project, the exclusions set forth in subdivision (d) do not apply to that project.
(g) For purposes of this section, references to the Internal Revenue Code mean the Internal Revenue Code of 1986, as amended, and include the corresponding predecessor sections of the Internal Revenue Code of 1954, as amended.
(h) The amendments made to this section by either Chapter 938 of the Statutes of 2001 or the act adding this subdivision shall not be construed to preempt local ordinances requiring the payment of prevailing wages on housing
projects.
SEC. 6.
Section 1721 of the Labor Code is amended to read:1721.
“Political subdivision” includes any county, city, district, public housing authority, or public agency of the state, and assessment or improvement districts. “Political subdivision” also includes an investor-owned utility solely with respect to a project that is subject to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code.SEC. 7.
Section 1722 of the Labor Code is amended to read:1722.
“Awarding body” or “body awarding the contract” means department, board, authority, officer or agent awarding a contract for publicSEC. 8.
Section 1773.2 of the Labor Code is amended to read:1773.2.
The body awarding any contract for public work, or otherwise undertaking any public work, shall specify in the call for bids for the contract, and in the bid specifications and in the contract itself, what the general rate of per diem wages is for each craft, classification, or type of worker needed to execute the contract.In lieu of specifying the rate of wages in the call for bids, and in the bid specifications and in the contract itself, the awarding body may, in the call for bids, bid specifications, and contract, include a statement that copies of the prevailing rate of per diem wages are on file at its principal office, which shall be made available to any interested party on request. The awarding body shall also cause a copy of the determination of the
director of the prevailing rate of per diem wages to be posted at each job site.
Notwithstanding any other provision of this section, an investor-owned utility awarding a contract for a public work described in paragraph (9) of subdivision (a) of Section 1720, or otherwise undertaking a public work described in paragraph (9) of subdivision (a) of Section 1720, shall specify in the call for bids for the contract, and in the bid specifications and in the contract itself, the prevailing rate of per diem wages applicable to each craft, classification, or type of worker needed to execute the contract that is available from the director, and shall include a link to the current Internet Web site where the director maintains those determinations. The body awarding any contract for public work shall also keep copies of the prevailing rate of per diem wages, as determined by the director, on
file at its principal office, which shall be made available to any interested party on request. The awarding body shall also cause a copy of the determinations of the director of the prevailing rate of per diem wages to be posted at each job site.
SEC. 9.
Section 2504 is added to the Public Contract Code, to read:2504.
(a) An investor-owned utility may use, enter into, or require contractors to enter into, a project labor agreement for a construction project that is subject to Chapter 4 (commencing with Section 4100) only if the agreement includes all of the following ratepayer and public protection provisions:(1) The agreement prohibits discrimination based on race, national origin, religion, sex, sexual orientation, political affiliation, or membership in a labor organization in hiring and dispatching workers for the project.
(2) The agreement permits all qualified
contractors and subcontractors to bid for and be awarded work on the project without regard to whether they are otherwise parties to collective bargaining agreements.
(3) The agreement contains an agreed-upon protocol concerning drug testing for workers who will be employed on the project.
(4) The agreement contains guarantees against work stoppages, strikes, lockouts, and similar disruptions of the project.
(5) The agreement provides that disputes arising from the agreement shall be resolved by a neutral arbitrator.
(b) An investor-owned utility shall not enter into any agreement in contravention of the provisions of this chapter.
(c) An investor-owned utility shall file any project labor agreement described in this section with the Public Utilities Commission, and shall make those agreements available to the public before the date that the agreements may be enforced.
(d) For purposes of this section, “investor-owned utility” has the same meaning as defined in subdivision (b) of Section 4113.
SEC. 10.
Section 4102 is added to the Public Contract Code, to read:4102.
Any person or entity who is required to submit a notice, bid, subcontractor list, or other written document to an investor-owned utility pursuant to this chapter shall promptly transmit that document to the Public Utilities Commission. Any document submitted to the Public Utilities Commission pursuant to this chapter shall be considered a writing within the meaning of subdivision (g) of Section 6252 of the Government Code, and shall be subject to disclosure under the California Public Records Act, subject to all existing terms and limitations relating to documents held by the Public Utilities Commission.SEC. 11.
Section 4103 of the Public Contract Code is amended to read:4103.
Nothing in this chapter limits or diminishes any rights or remedies, either legal or equitable, which:(a) An original or substituted subcontractor may have against the prime contractor, his or her successors or assigns.
(b) The state or any county, city, body politic, or public agency agency, or investor-owned utility may have against the prime contractor,
or his or her successors or assigns, including the right to take over and complete the contract.
SEC. 12.
Section 4104 of the Public Contract Code is amended to read:4104.
Any officer, department, board,(a) (1) The name, the location of the place of business, the California contractor license number, and public works
contractor registration number issued pursuant to Section 1725.5 of the Labor Code of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the work or improvement, or a subcontractor licensed by the State of California who, under subcontract to the prime contractor, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of 1 percent of the prime contractor’s total bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the prime contractor’s total bid or ten thousand dollars ($10,000), whichever is greater.
(2) An inadvertent error in listing the California contractor license number or public works contractor registration number provided pursuant to paragraph (1) shall
not be grounds for filing a bid protest or grounds for considering the bid nonresponsive if the corrected contractor’s license number is submitted to the public entity by the prime contractor within 24 hours after the bid opening and provided the corrected contractor’s license number corresponds to the submitted name and location for that subcontractor.
(3) (A) Subject to subparagraph (B), any information requested by the officer, department, board, or commission commission, or investor-owned utility concerning any subcontractor who the prime contractor is required to list under this subdivision, other than the subcontractor’s name, location of business, the California contractor license number, and the public works contractor
registration number, may be submitted by the prime contractor up to 24 hours after the deadline established by the officer, department, board, or commission
commission, or investor-owned utility for receipt of bids by prime contractors.
(B) A state or local agency agency, local agency, or investor-owned utility may implement subparagraph (A) at its option.
(b) The portion of the work that will be done by each subcontractor under this act. The prime contractor shall list only one subcontractor for each portion as is defined by the prime contractor in his or her bid.
SEC. 13.
Section 4104.5 of the Public Contract Code is amended to read:4104.5.
(a) The officer, department, board,(b) As used in this section, the term “material change” means a change with a substantial cost impact on the total bid as determined by the awarding agency.
(c) As used in this section, the term “bid invitation” shall include any documents issued to prime contractors that contain descriptions of the work to be bid or the content, form, or manner of submission of bids by bidders.
(d) An investor-owned utility shall submit any bid invitation and public notice described in subdivision (a) to the Public Utilities Commission for filing.
SEC. 14.
Section 4113 of the Public Contract Code is repealed.As used in this chapter, the word “subcontractor” shall mean a contractor, within the meaning of the provisions of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, who contracts directly with the prime contractor.
“Prime contractor” shall mean the contractor who contracts directly with the awarding authority.
SEC. 15.
Section 4113 is added to the Public Contract Code, to read:4113.
For purposes of this chapter:(a) “Awarding authority” or “awarding agency” means a public entity subject to this chapter, or an investor-owned utility with respect to a contract for a project of an investor-owned utility in which the total expenditures required for that project exceeds one hundred thousand dollars ($100,000).
(b) “Investor-owned utility” means an electrical corporation, as defined in Section 218 of the Public Utilities Code, or a gas corporation, as defined in Section 222 of the Public Utilities Code, that is within the jurisdiction of the Public Utilities Commission and is not otherwise subject to the provisions of this chapter.
(c) “Prime contractor” means the contractor who contracts directly with the awarding authority.
(d) “Project of an investor-owned utility” or “project” includes, in addition to any public works contract, as defined in Section 1101, any construction, reconstruction, alteration, enlargement, renewal, demolition, installation, repair, or replacement of any structure, building, road, or other improvement of any kind. For purposes of this paragraph, “construction” includes alteration, demolition, repair, installation, and work performed during the design, preconstruction, and postconstruction phases of construction, including, but not limited to, inspection, land surveying work, and all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office
systems.
(e) “Subcontractor” means a contractor, within the meaning of the provisions of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, who contracts directly with the prime contractor.
SEC. 16.
Section 4115 is added to the Public Contract Code, to read:4115.
(a) On any project of an investor-owned utility that is subject to this chapter, the investor-owned utility shall solicit bids in writing and shall award the work to the lowest responsible bidder or reject all bids.(b) On any project of an investor-owned utility that is subject to this chapter, the investor-owned utility shall specify in the call for bids for the contract, and in the bid specifications and in the contract itself, all of the following:
(1) That prevailing wages are required of all contractors and their subcontractors of every tier.
(2) That apprentices shall be employed and trained pursuant to
Section 1777.5 of the Labor Code.
(3) That certified payroll records pursuant to Section 1776 of the Labor Code shall be submitted to the investor-owned utility.
(4) That the other provisions of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code shall apply to work on the project of the investor-owned utility.
(5) That a payment bond, shall be required of the prime contractor for any project, consistent with the requirements in Chapter 5 (commencing with Section 9550) of Title 3 of Part 6 of Division 4 of the Civil Code.
(6) That the investor-owned utility has adopted a bid protest procedure which shall be available to any unsuccessful bidder. This procedure shall, at a minimum, be available to any bidder, and any person,
firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, before the letting of the bids on the project in question, entered into a contract with the bidders who have submitted bids, to protest on the basis that the low bidder is not responsible or the bid is not responsive.
SEC. 17.
Section 4116 is added to the Public Contract Code, to read:4116.
(a) An investor-owned utility shall require that its contractors and any subcontractors provide an enforceable commitment to the investor-owned utility that the contractor and subcontractors at every tier will use a skilled and trained workforce to perform all work on the public works contract subject to this chapter that falls within an apprenticeship occupation in the building and construction trades. In order to satisfy this subdivision, an investor-owned utility shall enter into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce.(b) If an investor-owned utility is required to provide an enforceable commitment that a skilled and
trained workforce pursuant to subdivision (a) will be used to complete a contract or project, the commitment shall be made in an enforceable agreement with the investor-owned utility that provides both of the following:
(1) The contractor, bidder, or other entity, and its contractors and subcontractors at every tier, will comply with this section.
(2) The contractor, bidder, or other entity will 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 this section.
(c) If the contractor, bidder, or other entity fails to provide the
monthly report required by this section, or provides a report that is incomplete, the investor-owned utility shall withhold further payments until a complete report is provided.
(d) If a monthly report does not demonstrate compliance with this chapter, the investor-owned utility shall withhold further payments until the contractor, bidder, or other entity provides a plan to achieve substantial compliance with this section, with respect to the relevant apprenticeable occupation, before completion of the contract or project.
(e) The Public Utilities Commission shall require all investor-owned utilities to report compliance with this section, and shall take all actions necessary to assure full compliance. The Public Utilities Commission shall not grant exceptions
or delays for compliance with this section, unless the investor-owned utility can demonstrate to the commission that it has made diligent and good-faith efforts to comply with this section and that the granting of the exception or delay is necessary in order to prevent immediate harm to the public health or safety or to the environment. Any exception or delay granted by the Public Utilities Commission shall cease as soon as the emergency requiring that exception or delay is over.
(f) For purposes of this section:
(1) “Apprenticeable occupation” means an occupation for which the chief has approved an apprenticeship program pursuant to Section 3075 of the Labor Code.
(2) “Building and construction trades” has the same meaning as in Section 3075.5 of the
Labor Code.
(3) “Chief” means the Chief of the Division of the Apprenticeship Standards of the Department of Industrial Relations.
(4) “Graduate of an apprenticeship program” means either of the following:
(A) An individual that has been issued a certificate of completion under the authority of the California Apprenticeship Council for completing an apprenticeship program approved by the chief pursuant to Section 3075 of the Labor Code.
(B) An individual that has completed an apprenticeship
program located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of Labor.
(5) “Registered apprentice” means an apprentice registered in an apprenticeship program approved by the chief pursuant to Section 3075 of the Labor Code who is performing work covered by the standards of that apprenticeship program and receiving the supervision required by the standards of that apprenticeship program.
(6) “Skilled journeyperson” means a worker who either graduated from an apprenticeship program for the applicable occupation that was approved by the chief, or has at least as many hours of on-the-job experience in the applicable occupation that would be required to graduate
from an apprenticeship program for the applicable occupation that is approved by the chief.
(7) “Skilled and trained workforce” means a workforce that meets both of the following criteria:
(A) All the workers are either registered apprentices or skilled journeypersons.
(B) (i) For work performed on or after January 1, 2019, at least 40 percent of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation that was either approved by the chief pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to
the apprenticeship regulations adopted by the United States Secretary of Labor.
(ii) For work performed on or after January 1, 2020, at least 50 percent of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation that was either approved by the chief pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the Unites States Secretary of Labor.
(iii) For work performed January 1, 2021, at least 60 percent of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation that was either approved by the chief pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of
Labor.
SEC. 18.
Section 4117 is added to the Public Contract Code, to read:4117.
An investor-owned utility shall not enter into any agreement in contravention of the provisions of this chapter.SEC. 19.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.(a)It is the policy of this state to vigorously enforce minimum labor standards in order to ensure employees are not required or permitted to work under substandard unlawful conditions or for employers that have not secured the payment of compensation, and to protect employers who comply with the law from those who attempt to gain a competitive advantage at the expense of their workers by failing to comply with minimum labor standards.
(b)In order to ensure that minimum labor standards are adequately enforced, the Labor Commissioner shall establish and maintain a field enforcement unit, which shall be administratively and physically separate
from offices of the division that accept and determine individual employee complaints. The unit shall have offices in Los Angeles, San Francisco, San Jose, San Diego, Sacramento, and any other locations that the Labor Commissioner deems appropriate. The unit shall have primary responsibility for administering and enforcing those statutes and regulations most effectively enforced through field investigations, including Sections 226, 1021, 1021.5, 1193.5, 1193.6, 1194.5, 1197, 1198, 1771, 1776, 1777.5, 2651, 2673, 2675, and 3700, in accordance with the plan adopted by the Labor Commissioner pursuant to subdivision (c). Nothing in this section shall be construed to limit the authority of this unit in enforcing any statute or regulation in the course of its investigations.
(c)The Labor Commissioner shall adopt an enforcement plan for the
field enforcement unit. The plan shall identify priorities for investigations to be undertaken by the unit to ensure that the available resources will be concentrated in industries, occupations, and areas in which employees are relatively low paid and unskilled, and those in which there has been a history of violations of the statutes cited in subdivision (b), and those with high rates of noncompliance with Section 3700.
(d)The Labor Commissioner shall annually report to the Legislature, not later than March 1, concerning the effectiveness of the field enforcement unit. The report shall include, but not be limited to, all of the following:
(1)The enforcement plan adopted by the Labor Commissioner pursuant to subdivision (c), and the rationale for the priorities identified in
the plan.
(2)The number of establishments investigated by the unit, and the number of types of violations found.
(3)The amount of wages found to be unlawfully withheld from workers, and the amount of unpaid wages recovered for workers.
(4)The amount of penalties and unpaid wages transferred to the General Fund as a result of the efforts of the unit.
