Bill Text: CA SB136 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public contracts: prevailing wages.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2011-10-09 - Chaptered by Secretary of State. Chapter 698, Statutes of 2011. [SB136 Detail]

Download: California-2011-SB136-Amended.html

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BILL NUMBER: SB 136	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 15, 2011
	AMENDED IN ASSEMBLY  JUNE 22, 2011
	AMENDED IN SENATE  MAY 19, 2011
	AMENDED IN SENATE  APRIL 28, 2011

INTRODUCED BY   Senator Yee

                        JANUARY 31, 2011

    An act to amend Section 4217.12 of the Government Code,
relating to public contracts.   An act to add Section
1720.5 to the Labor Code, relating to public contracts. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 136, as amended, Yee.  Emergency services 
 Public  contracts: prevailing wages.
   Existing law defines "public works," for purposes of regulating
public works 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 further 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
violation of this requirement. Existing law provides that for the
purposes of provisions of law relating to the payment of prevailing
wages, "public works" includes specified types of construction,
alteration, demolition, installation, and repair work. 
   Existing law authorizes public agencies to enter into energy
service contracts and any necessarily related facility ground lease
on terms that its governing body determines are in the best interests
of the public agency, as specified. 
   This bill would  provide that energy services contracts
entered into under the above provisions are public works for purposes
of the prevailing wage requirements, as specified.  
expand the definition of "public works," for the purposes of
provisions relating to the prevailing rate of per diem wages, to also
include any construction, alteration, demolition, installation, or
repair work done under private contract that satisfies specified
conditions related to energy, as prescribed. 
   Because the violation of prevailing wage requirements by local
public entities when engaged in these public works projects would
result in the imposition of misdemeanor penalties, 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1720.6 is added to the 
 Labor Code   , to read:  
   1720.6.  For the limited purposes of Article 2 (commencing with
Section 1770) of this chapter, "public work" also means any
construction, alteration, demolition, installation, or repair work
done under private contract when all of the following conditions
exist:
   (a) The work is performed in connection with the construction or
maintenance of renewable energy generating capacity or energy
efficiency improvements.
   (b) The work is performed on the property of the state or a
political subdivision of the state.
   (c) Either of the following conditions exists:
   (1) More than 50 percent of the energy generated is purchased or
will be purchased by the state or a political subdivision of the
state.
   (2) The energy efficiency improvements are primarily intended to
reduce energy costs that would otherwise be incurred by the state or
a political subdivision of the state.  
  SECTION 1.    Section 4217.12 of the Government
Code is amended to read:
   4217.12.  (a) Notwithstanding any other law, a public agency may
enter into an energy service contract and any necessarily related
facility ground lease on terms that its governing body determines are
in the best interests of the public agency if the determination is
made at a regularly scheduled public hearing, public notice of which
is given at least two weeks in advance, and if the governing body
finds:
   (1) That the anticipated cost to the public agency for thermal or
electrical energy or conservation services provided by the energy
conservation facility under the contract will be less than the
anticipated marginal cost to the public agency of thermal,
electrical, or other energy that would have been consumed by the
public agency in the absence of those purchases.
   (2) That the difference, if any, between the fair rental value for
the real property subject to the facility ground lease and the
agreed rent, is anticipated to be offset by below-market energy
purchases or other benefits provided under the energy service
contract.
   (b) State agency heads may make these findings without holding a
public hearing.
   (c) Energy service contracts entered into pursuant to this section
shall constitute public works projects and comply with Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code. 
  SEC. 2.  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.