CA SB 1241

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Description

Existing law establishes requirements with respect to public contracts that apply 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, as specified. Existing law requires a public entity subject to skilled and trained workforce requirements to include a specified notice in all bid documents. Existing law specifies that a failure of a public entity to include the required notice that a project is subject to the skilled and trained workforce requirement does not excuse a public entity from those requirements. This bill would expand the circumstances under which those requirements apply to specified instruments and laws, including development agreements and resolutions, as provided. The bill would, in addition to the specified notice in bid documents, require a public entity to post, or require a prime contractor to post, a job site notice specifying that the project is subject to the skilled and trained workforce requirement. The bill would also extend the same posting and notice requirement to private developers. The bill would impose a penalty of no more than $10,000 per month on a private developer who failed to comply with the above-described posting or notice requirement, following an investigation by the Labor Commissioner or its designee. The bill would authorize the Labor Commissioner to reduce or waive the penalty under specified circumstances. The bill would further require the Labor Commissioner or its designee to issue a civil wage and penalty assessment to the developer, as specified, for a violation of the posting and notice requirement, and would authorize a request for review of the assessment under certain statutory processes. The bill would make a willful violation of the posting or notice requirement by a developer, its agent, or representative, to be a misdemeanor. By creating a new crime, this bill would impose a state-mandated local program. Existing law requires a contractor or bidder, among others, to submit a monthly report to the public entity while the project or contract is being performed demonstrating compliance with skilled and trained workforce requirements, as specified. Existing law authorizes the Labor Commissioner to assess specified civil penalties against a contractor or subcontractor for a violation of the skilled and workforce requirements, and authorizes reduction or waiver of a penalty for specified conditions. Among these conditions is whether a contractor or subcontractor submitted and followed a plan to achieve substantial compliance with the skilled and trained workforce requirements. This bill would prohibit the Labor Commissioner from waiving penalties for an incomplete or absent monthly compliance report and a material misrepresentation. The bill would impose the highest penalty for violations of skilled and trained workforce requirements committed after a noncompliance notice, as specified. The bill would expand the conditions that the Labor Commissioner should consider when setting a monetary penalty for failure to use a skilled and trained workforce, including, for the first violation in the prior 3 years, whether a contractor or subcontractor submitted and followed a substantial compliance plan to remedy noncompliance. The bill would define various terms for these purposes, including "substantial compliance plan" and "material misrepresentation." This bill would require the Labor Commissioner to accept complaints from a labor-management committee, as provided, alleging a skilled and trained workforce violation by a contractor or subcontractor. The bill would make various technical and conforming changes. 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.