BILL NUMBER: SB 136ENROLLED BILL TEXT PASSED THE SENATE SEPTEMBER 9, 2011 PASSED THE ASSEMBLY AUGUST 29, 2011 AMENDED IN ASSEMBLY AUGUST 22, 2011 AMENDED IN ASSEMBLY AUGUST 15, 2011 AMENDED IN ASSEMBLY JUNE 22, 2011 AMENDED IN SENATE MAY 19, 2011 AMENDED IN SENATE APRIL 28, 2011 INTRODUCED BY Senator Yee (Principal coauthor: Assembly Member Solorio) JANUARY 31, 2011 An act to add Section 1720.6 to the Labor Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST SB 136, Yee. Public contracts: prevailing wages. Existing law defines "public works," for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a violation of this requirement. Existing law provides that for the purposes of provisions of law relating to the payment of prevailing wages, "public works" includes specified types of construction, alteration, demolition, installation, and repair work. This bill would expand the definition of "public works," for the purposes of provisions relating to the prevailing rate of per diem wages, to also include any construction, alteration, demolition, installation, or repair work done under private contract that satisfies specified conditions related to energy, as prescribed. Because the violation of prevailing wage requirements by local public entities when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program. 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. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1720.6 is added to the Labor Code, to read: 1720.6. For the limited purposes of Article 2 (commencing with Section 1770) of this chapter, "public work" also means any construction, alteration, demolition, installation, or repair work done under private contract when the following conditions exist: (a) The work is performed in connection with the construction or maintenance of renewable energy generating capacity or energy efficiency improvements. (b) The work is performed on the property of the state or a political subdivision of the state. (c) Either of the following conditions exists: (1) More than 50 percent of the energy generated is purchased or will be purchased by the state or a political subdivision of the state. (2) The energy efficiency improvements are primarily intended to reduce energy costs that would otherwise be incurred by the state or a political subdivision of the state. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.