Bill Text: CA SB984 | 2023-2024 | Regular Session | Amended

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

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Bill Title: Public agencies: project labor agreements.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-05-06 - May 6 hearing: Placed on APPR suspense file. [SB984 Detail]

Download: California-2023-SB984-Amended.html

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Amended  IN  Senate  February 29, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 984

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Introduced by Senator Wahab

January 29, 2024

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An act to add Section 2504 to the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL'S DIGEST

SB 984, as amended, Wahab. Public agencies: project labor agreements.

Existing law establishes procedures for state agencies to enter into contracts for goods and services, including generally requiring that certain contracts by a state agency, including, but not limited to, contracts for the construction, alteration, improvement, repair, or maintenance of property, be approved by the Department of General Services.

Existing law authorizes a public entity to use, enter into, or require contractors to enter into, a project labor agreement, as defined, for a construction project, if the agreement includes specified taxpayer protection provisions.

This bill would authorize a state agency to undertake a major state construction project only if that project is governed by a project labor agreement and if that project labor agreement includes community benefit goals, as specified, and would define various terms for these purposes. The bill would authorize the Governor to waive this requirement if the state agency has attempted to comply with this requirement and the Governor makes a written determination that the application of this requirement would be impracticable. The bill would require the Department of General Services, commencing January 1, 2029, to report to the Legislature about the use of project labor agreements, the advancement of community benefit goals, and apprenticeships, as specified. The bill would also make a related statement of legislative findings and declarations.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 The Legislature finds and declares all of the following:

(a) Project labor agreements have proven to be a successful construction management tool for the efficient completion of certain public projects.

(b) Project labor agreements also can provide contractors on certain state projects with access to registered apprentices and protect employees on public construction projects without burdening the resources of the Division of Labor Standards Enforcement.

(c) State The state agencies described in Section 2504 of the Public Contract Code should, to the greatest extent feasible, make use of project labor agreements for major state construction projects and consider the use of project labor agreements for other state projects.

(d) The University of California and the California Community Colleges should also, to the greatest extent feasible, make use of project labor agreements for major construction projects funded by state bonds.

SEC. 2.

 Section 2504 is added to the Public Contract Code, immediately following Section 2503, to read:

2504.

 (a) (1) For purposes of this section, a “major state construction project” includes all of the following:

(A) The erection, construction, alteration, repair, or improvement of any state structure, building, or other state improvement of any kind that will exceed a total cost of thirty-five million dollars ($35,000,000).

(B) Projects funded by state bonds that are undertaken by or for the University of California or the California Community Colleges.

(2) For purposes of this section, “state agency” means all of the following:

(A) Every The Department of General Services and every state office, department, division, bureau, board, or commission. commission within the Department of Corrections and Rehabilitation, the California Health and Human Services Agency, the Department of Toxic Substances Control, and the Exposition Park.

(B) Any superior court, court of appeal, the California Supreme Court, and the California State University.

(C) The University of California and the California Community Colleges when those entities undertake projects funded by state bonds.

(b) (1) A state agency may undertake a major state construction project only if that project is governed by a project labor agreement, as defined in subdivision (b) of Section 2500, and if that project labor agreement includes community benefit goals, including, but not limited to, hiring locals, women, underrepresented groups, and disadvantaged groups.

(2) Paragraph (1) shall apply to any construction contract for a major state construction project if that contract is advertised for bid or awarded on or after July 1, 2025.

(3) A state agency shall not divide or phase a major state construction project to avoid the application of paragraph (1).

(c) The Governor may waive the application of this section to a specific project if the state agency has attempted to comply with this section and the Governor makes a written determination that the application of this section to that project would be impracticable.

(d) Paragraph (1) of subdivision (b) shall not apply to the extent that the application of this section would result in a loss of federal funding.

(e) This section does not preclude the use of project labor agreements on any project not covered by this section.

(f) (1) Commencing January 1, 2029, the Department of General Services shall report to the Legislature every four years about the use of project labor agreements, the advancement of community benefit goals, and apprenticeships.

(2) The requirement for submitting a report imposed under paragraph (1) is inoperative on January 1, 2033, pursuant to Section 10231.5 of the Government Code.

(3) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.