Bill Text: CA SB377 | 2013-2014 | Regular Session | Chaptered
Bill Title: Public works: project determinations: wage and penalty assessments.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2013-10-12 - Chaptered by Secretary of State. Chapter 780, Statutes of 2013. [SB377 Detail]
Download: California-2013-SB377-Chaptered.html
BILL NUMBER: SB 377 CHAPTERED
BILL TEXT
CHAPTER 780
FILED WITH SECRETARY OF STATE OCTOBER 12, 2013
APPROVED BY GOVERNOR OCTOBER 12, 2013
PASSED THE SENATE SEPTEMBER 10, 2013
PASSED THE ASSEMBLY SEPTEMBER 9, 2013
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN SENATE MAY 9, 2013
AMENDED IN SENATE MAY 1, 2013
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Lieu
FEBRUARY 20, 2013
An act to amend Section 1773.5 of, and to add Section 1741.1 to,
the Labor Code, relating to public works.
LEGISLATIVE COUNSEL'S DIGEST
SB 377, Lieu. Public works: project determinations: wage and
penalty assessments.
Existing law defines the term "public works" for purposes of
requirements regarding the payment of prevailing wages, the
regulation of working hours, and the securing of workers'
compensation for public works projects.
Existing law authorizes the Director of Industrial Relations to
establish rules and regulations for the purpose of carrying out
public works requirements, including, but not limited to, the
responsibilities and duties of awarding bodies relating to public
works projects.
This bill would require, when a request is made to the director
for a determination of whether a specific project or type of work
awarded or undertaken by a political subdivision is a public work,
the director to make that determination within 60 days of receipt of
the last support or opposition letter relating to that project or
type of work, and for projects or types of work that are otherwise
private development projects receiving public funds, within 120 days
of receipt, except as specified. The bill would require an
administrative appeal of that determination to be made within 30 days
of the date of the determination, and would require the director to
issue a determination on an appeal within 120 days after the receipt
of the appeal, except as specified. The bill would grant to the
director quasi-legislative authority to determine coverage of
projects or types of work under prevailing wage requirements, and
provide that a final determination on any appeal is subject to
judicial review. The bill would exempt those determinations, and
determinations relating to the general prevailing rate of per diem
wages and for holiday, shift, and overtime work, from the
Administrative Procedure Act.
Existing law requires the Labor Commissioner to issue a civil wage
and penalty assessment to a contractor or subcontractor, or both,
if, after an investigation, the commissioner determines there has
been a violation of the laws regulating public works projects,
including the payment of prevailing wages. The assessment is required
to be served within 180 days after the filing of a valid notice of
completion in the county where the public work was performed or
within 180 days after the acceptance of the public work, except as
specified. Existing law authorizes a joint labor-management
committee, established pursuant to a specified provision of federal
law, to bring an action against any employer who fails to pay
prevailing wages as required by state law. Under existing law, each
contractor and subcontractor is required to keep accurate payroll
records, as prescribed, that are certified and available for
inspection, as specified.
This bill would toll the period for service of assessments and for
commencing an action brought by a joint labor-management committee
for the period of time required by the Director of Industrial
Relations to make a determination of whether the project is a public
work, as specified. The bill would also toll those periods for the
period of time that a contractor or subcontractor fails to provide
certified payroll records pursuant to a request from the Labor
Commissioner, a joint labor-management committee, or an approved
labor compliance program. The bill would require the person filing
the notice of completion to also provide notice to the Labor
Commissioner, as specified, and would require the awarding body or
political subdivision accepting a public work to provide to the Labor
Commissioner notice of that acceptance, as specified. The bill would
toll the period for service of assessments and for commencing an
action brought by a joint labor-management committee for the length
of time notice is not provided to the Labor Commissioner.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that the process for
the Director of Industrial Relations to determine the existence of a
public work and to decide administrative appeals from those
determinations has created unacceptable delays and prejudice to the
enforcement of the public works law, often resulting in the
expiration of the statute of limitation for the identification and
collection of wage and penalty assessments. As a result, wage theft
has occurred because workers are not paid prevailing wage rates and
the time for assessment has expired. Further, there has been an
incentive to some developers, contractors, and public bodies to
engage in expensive and time-consuming litigation in efforts to
extend the time for determining the existence of a public work. This
litigation is often a needless expense to the state. In addition,
public bodies, developers, contractors, and others are entitled to a
determination of whether a project is a public work as early as
possible so that the costs of the project and the duties of the
parties under the law may be known as early as possible. Thus, this
act is necessary to ensure the actual receipt of proper wages, to
reduce administrative and litigation costs to the state and others,
and to provide early guidance to all interested parties.
SEC. 2. Section 1741.1 is added to the Labor Code, to read:
1741.1. (a) The period for service of assessments shall be tolled
for the period of time required by the Director of Industrial
Relations to determine whether a project is a public work, including
a determination on administrative appeal, if applicable, pursuant to
subdivisions (b) and (c) of Section 1773.5. The period for service of
assessments shall also be tolled for the period of time that a
contractor or subcontractor fails to provide in a timely manner
certified payroll records pursuant to a request from the Labor
Commissioner or a joint labor-management committee under Section
1776, or an approved labor compliance program under Section 1771.5 or
1771.7.
(b) The person filing a notice of completion in the office of a
county recorder pursuant to subdivision (a) of Section 1741 shall at
the same time also provide notice to the Labor Commissioner, in a
manner determined by the Labor Commissioner. The awarding body or
political subdivision accepting a public work under subdivision (a)
of Section 1741 shall provide notice of that acceptance to the Labor
Commissioner within five days of the acceptance, in a manner
determined by the Labor Commissioner. The 180-day period for service
of assessments shall be tolled for the length of time notice is not
given in a timely manner to the Labor Commissioner pursuant to this
subdivision.
(c) The tolling provisions in this section shall also apply to the
period of time for commencing an action brought by a joint
labor-management committee pursuant to Section 1771.2.
SEC. 3. Section 1773.5 of the Labor Code is amended to read:
1773.5. (a) The Director of Industrial Relations may establish
rules and regulations for the purpose of carrying out this chapter,
including, but not limited to, the responsibilities and duties of
awarding bodies under this chapter.
(b) When a request is made to the director for a determination of
whether a specific project or type of work awarded or undertaken by a
political subdivision is a public work, he or she shall make that
determination within 60 days receipt of the last notice of support or
opposition from any interested party relating to that project or
type of work that was not unreasonably delayed, as determined by the
director. If the director deems that the complexity of the request
requires additional time to make that determination, the director may
have up to an additional 60 days if he or she certifies in writing
to the requestor, and any interested party, the reasons for the
extension. If the requestor is not a political subdivision, the
requester shall, within 15 days of the request, serve a copy of the
request upon the political subdivision, in which event the political
subdivision shall, within 30 days of its receipt, advise the director
of its position regarding the request. For projects or types of work
that are otherwise private development projects receiving public
funds, as specified in subdivision (b) of Section 1720, the director
shall determine whether a specific project or type of work is a
public work within 120 days of receipt of the last notice of support
or opposition relating to that project or type of work from any
interested party that was not unreasonably delayed, as determined by
the director.
(c) If an administrative appeal of the director's determination is
made, it shall be made within 30 days of the date of the
determination. The director shall issue a determination on the
administrative appeal within 120 days after receipt of the last
notice of support or opposition relating to that appeal from any
interested party that was not unreasonably delayed, as determined by
the director. The director may have up to an additional 60 days if he
or she certifies in writing to the party requesting the appeal the
reason for the extension.
(d) The director shall have quasi-legislative authority to
determine coverage of projects or types of work under the prevailing
wage laws of this chapter. A final determination on any
administrative appeal is subject to judicial review pursuant to
Section 1085 of the Code of Civil Procedure. These determinations,
and any determinations relating to the general prevailing rate of per
diem wages and the general prevailing rate for holiday, shift rate,
and overtime work, shall be exempt from the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code).
