SB 830

Bill Subjects

Abstract

(1) Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines the term "public works" for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law makes a willful violation of laws relating to the payment of prevailing wages on public works a misdemeanor. This bill would, for public works contracts advertised for bid or awarded on or after January 1, 2026, expand the definition of "public works" to include an offsite, custom fabrication of sheet metal ducts for heating, ventilation, and air conditioning systems produced as a nonstandard item solely and specifically designed and engineered for installation in a project, as specified. The bill would require a contractor engaging a third-party, offsite fabrication facility to fabricate custom sheet metal ducts for a public works project to enter into a contract with the facility that requires compliance with specified public works laws. The bill would require certified copies of payroll records for the offsite, custom fabrication of sheet metal ducts to be accompanied by a written time record of that work certified by each employee performing the work. By expanding the scope of a crime, the bill would impose a state-mandated local program. (2) Existing law requires the Labor Commissioner, after determining there has been a violation of prevailing wage requirements, to issue a civil wage and penalty assessment to the contractor or subcontractor, or both. Existing law requires that a contractor and subcontractor be jointly and severally liable for amounts due. This bill would require, commencing January 1, 2026, wages or penalties assessed for violations at the above-described offsite facility to be assessed jointly and severally against the contractor and subcontractor installing the ducts. The bill would authorize the contractor or subcontractor to seek indemnity for those penalties from the offsite facility. (3) Existing law generally requires a contractor or subcontractor to be registered with the Department of Industrial Relations to be qualified to bid on, be listed in a bid proposal, or engage in the performance of any public works contract. Existing law requires a contractor or subcontractor to meet specific conditions to qualify for this registration. This bill would, commencing January 1, 2026, exempt the above-described offsite or out-of-state fabrication facilities from the registration requirement if the contractor or subcontractor they fabricate for is registered and qualified. (4) Existing law generally requires that not less than the general prevailing rate of per diem wages in the locality where work for the public work project is performed be paid to workers employed on a public works project that exceeds $1,000. (5) This bill would incorporate additional changes to Section 1743 of the Labor Code proposed by AB 2705 to be operative only if this bill and AB 2705 are enacted and this bill is enacted last. This bill would, commencing January 1, 2026, instead require the general prevailing rate of per diem wages to be based on the locality where the public work project is located. (6) 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.