Public works: labor compliance.

(1) Existing law defines "public works," for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work that is performed under contract and paid for, in whole or in part, out of public funds. Pursuant to existing law, all workers employed on public works shall be paid not less than the general prevailing rate of per diem wages for work, except for public works projects of $1,000 or less. This bill would specify that, for purposes of these provisions, the definition of "public works" includes a capital improvement project undertaken by a charter city to extend that city's water, sewer, or storm drain system or similar system to a disadvantaged community in an unincorporated area, but would provide that it does not include any subsequent project to construct, expand, reconstruct, install, or repair such systems that have been so extended, where that project is conducted within that city's political boundaries. (2) Existing law authorizes the awarding body for a public works project to not require the payment of the general prevailing rate of per diem wages on public works projects of specified sizes and types of work, if the awarding body elects to initiate and enforce a labor compliance program containing specified requirements for every public works project under the authority of the awarding body. This bill would instead authorize the awarding body for a public works project to not require the payment of the general prevailing rate of per diem wages on public works projects of specified sizes and types of work, if the awarding body elects to meet certain requirements with regard to any public works project under its authority, including payment of a fee to the Department of Industrial Relations for the enforcement of prevailing wage obligations, as specified, which would be determined by the department and deposited in the State Public Works Enforcement Fund. This bill would establish the State Public Works Enforcement Fund in the State Treasury, and would continuously appropriate moneys in the fund for the department's enforcement of prevailing wage requirements applicable to public works projects and labor compliance enforcement. The bill would require the department to meet certain requirements with regard to all projects required to pay a fee into the State Public Works Enforcement Fund, including the adoption of regulations setting forth the manner in which the department will ensure compliance with and enforce prevailing wage requirements on the project, and would require the department to report to the Legislature on the fund, as specified. (3) Existing law requires an awarding body that chooses to use funds from the Kindergarten-University Public Education Facilities Bond Act of 2002 for a public works project or an awarding body for any contract for a public works project financed in any part with funds made available by the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 to initiate and enforce, or contract with a 3rd party to initiate and enforce, a labor compliance program for that public works project. This bill would require the Director of Industrial Relations, with the approval of the Director of Finance, to assess a fee on any awarding body using funds derived from any bonds issued by the state to fund public works projects, as specified, which would be deposited in the State Public Works Enforcement Fund. The bill would also require an awarding body that chooses to use funds derived from either the Kindergarten-University Public Education Facilities Bond Act of 2002 or the Kindergarten-University Public Education Facilities Bond Act of 2004, or the body awarding any contract for a public works project financed in any part with funds made available by the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 of the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, to pay a fee to the department sufficient to support the department's costs in ensuring compliance with and enforcing prevailing wage requirements on the project and labor compliance enforcement, as specified. The bill would require all fees collected pursuant to these provisions to be deposited in the State Public Works Enforcement Fund and to be used only for enforcement of prevailing wage requirements on those projects. The bill would authorize the department to waive the fee for an awarding body if specified criteria are met. (4) Existing law gives specified authority for certain school district governing boards, governing boards of community college districts and community college facility construction projects, cities, counties, qualified entities that operate a wastewater facility, solid waste management facility, or water recycling facility, transit operators, and unified school districts to enter into design-build contracts for specified projects if certain requirements are met, including the establishment and enforcement of a labor compliance program or the contracting with a 3rd-party to operate a labor compliance program. Existing law gives specified authority for the San Diego Model School Development Agency to award construction contracts, as specified, and requires it to establish and enforce a labor compliance program or to contract with a 3rd-party to operate a labor compliance program. This bill would instead require entities contracting under the above provisions to pay a fee to the department, established by the department as specified, sufficient to support the department's costs in ensuring compliance with and enforcing prevailing wage requirements on the project and labor compliance. The bill would require all fees collected pursuant to these provisions to be deposited in the State Public Works Enforcement Fund and to be used only for enforcement of prevailing wages requirements on those projects. The bill would authorize the department to waive the fee if specified criteria are met.