BILL NUMBER: AB 852CHAPTERED BILL TEXT CHAPTER 745 FILED WITH SECRETARY OF STATE OCTOBER 10, 2015 APPROVED BY GOVERNOR OCTOBER 10, 2015 PASSED THE SENATE SEPTEMBER 2, 2015 PASSED THE ASSEMBLY SEPTEMBER 4, 2015 AMENDED IN SENATE JUNE 15, 2015 AMENDED IN ASSEMBLY APRIL 6, 2015 INTRODUCED BY Assembly Member Burke (Coauthors: Assembly Members Dodd, Gonzalez, Roger Hernndez, and McCarty) FEBRUARY 26, 2015 An act to add Section 1720.7 to the Labor Code, relating to public works. LEGISLATIVE COUNSEL'S DIGEST AB 852, Burke. Public works: prevailing wages. Existing law defines "public works," for the 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 willful violation of this requirement. 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 on a project for a general acute care hospital, except on a project for a rural general acute care hospital with a maximum of 76 beds, when the project is paid for, in whole or in part, with the proceeds of conduit revenue bonds, as defined, that were issued on or after January 1, 2016. Because the willful violation of prevailing wage requirements 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 1720.7 is added to the Labor Code, to read: 1720.7. For the limited purposes of Article 2 (commencing with Section 1770) of this chapter, "public works" also means any construction, alteration, demolition, installation, or repair work done under private contract on a project for a general acute care hospital, except on a project for a rural general acute care hospital with a maximum of 76 beds, when the project is paid for, in whole or in part, with the proceeds of conduit revenue bonds, as defined in Section 5870 of the Government Code, issued on or after January 1, 2016, by a public agency. For purposes of this section, "general acute care hospital" and "rural general acute care hospital" have the same meaning as each term is defined in subdivision (a) of Section 1250 of the Health and Safety Code. 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.