Governor Brown Signs Building Trades Legislation AB 436

September 30, 2011 - Today, Governor Jerry Brown signed AB 436 by Assemblymember Solorio (Santa Ana) and Senator Padilla (Pacoima), legislation sponsored by the State Building Trades to provide resources to the Department of Industrial Relations (DIR) for prevailing wage enforcement on state funded public works projects and design-build projects.  

This is the first bill in California’s history that provides a dedicated source of funds towards prevailing wage enforcement. 

AB 436 revised statues of SB X 2-9 of 2009 which created the Public Works Enforcement Fund and Compliance Monitoring Unit at the DIR.  The revisions include technical changes requested by the Attorney General’s Bond Counsel. 

The new law, which  goes into effect January 2012, allows the DIR to assess a fee of up to a quarter of one percent on awarding bodies deriving state bond funds for public works projects for the purpose of enforcement of prevailing wage. 

The fee will be levied on all bond funded projects and design-build projects, except those that are under a Project Labor Agreement. 

Building Trades leaders and affiliates are encouraged to discuss the many benefits of using a PLA to deliver a construction project, including exemption from the fee to the DIR. 

Additionally, the DIR is currently seeking public input to proposed modifications of the existing regulations to conform to AB 436.  These are currently in the public comment period —  http://www.dir.ca.gov/dlse/cmu/Rulemaking/Rulemaking_SBX2-9-2011.htm.

If you have any questions please contact Cesar Diaz or Jeremy Smith at (916) 443-3302.   

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