Section 1771.7 Of Article 2. Wages From California Labor Code >> Division 2. >> Part 7. >> Chapter 1. >> Article 2.
1771.7
. (a) (1) For contracts specified in subdivision (f), an
awarding body that chooses to use funds derived from either the
Kindergarten-University Public Education Facilities Bond Act of 2002
or the Kindergarten-University Public Education Facilities Bond Act
of 2004 for a public works project, shall initiate and enforce, or
contract with a third party to initiate and enforce, a labor
compliance program, as described in subdivision (b) of Section
1771.5, with respect to that public works project.
(2) If an awarding body described in paragraph (1) chooses to
contract with a third party to initiate and enforce a labor
compliance program for a project described in paragraph (1), that
third party shall not review the payroll records of its own employees
or the employees of its subcontractors, and the awarding body or an
independent third party shall review these payroll records for
purposes of the labor compliance program.
(b) This section applies to public works that commence on or after
April 1, 2003. For purposes of this subdivision, work performed
during the design and preconstruction phases of construction,
including, but not limited to, inspection and land surveying work,
does not constitute the commencement of a public work.
(c) (1) For purposes of this section, if any campus of the
California State University chooses to use the funds described in
subdivision (a), then the "awarding body" is the Chancellor of the
California State University. For purposes of this subdivision, if the
chancellor is required by subdivision (a) to initiate and enforce,
or to contract with a third party to initiate and enforce, a labor
compliance program, then in addition to the requirements described in
subdivision (b) of Section 1771.5, the Chancellor of the California
State University shall review the payroll records on at least a
monthly basis to ensure the awarding body's compliance with the labor
compliance program.
(2) For purposes of this subdivision, if an awarding body
described in subdivision (a) is the University of California or any
campus of that university, and that awarding body is required by
subdivision (a) to initiate and enforce, or to contract with a third
party to initiate and enforce, a labor compliance program, then in
addition to the requirements described in subdivision (b) of Section
1771.5, the payroll records shall be reviewed on at least a monthly
basis to ensure the awarding body's compliance with the labor
compliance program.
(d) (1) An awarding body described in subdivision (a) shall make a
written finding that the awarding body has initiated and enforced,
or has contracted with a third party to initiate and enforce, the
labor compliance program described in subdivision (a).
(2) (A) If an awarding body described in subdivision (a) is a
school district, the governing body of that district shall transmit
to the State Allocation Board, in the manner determined by that
board, a copy of the finding described in paragraph (1).
(B) The State Allocation Board shall not release the funds
described in subdivision (a) to an awarding body that is a school
district until the State Allocation Board has received the written
finding described in paragraph (1).
(C) If the State Allocation Board conducts a postaward audit
procedure with respect to an award of the funds described in
subdivision (a) to an awarding body that is a school district, the
State Allocation Board shall verify, in the manner determined by that
board, that the school district has complied with the requirements
of this subdivision.
(3) If an awarding body described in subdivision (a) is a
community college district, the Chancellor of the California State
University, or the office of the President of the University of
California or any campus of the University of California, that
awarding body shall transmit, in the manner determined by the
Director of Industrial Relations, a copy of the finding described in
paragraph (1) to the director of that department, or the director of
any successor agency that is responsible for the oversight of
employee wage and employee work hours laws.
(e) Because the reasonable costs directly related to monitoring
and enforcing compliance with the prevailing wage requirements are
necessary oversight activities, integral to the cost of construction
of the public works projects, notwithstanding Section 17070.63 of the
Education Code, the grant amounts as described in Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of Title
1 of the Education Code for the costs of a new construction or
modernization project shall include the state's share of the
reasonable and directly related costs of the labor compliance program
used to monitor and enforce compliance with prevailing wage
requirements.
(f) This section shall only apply to contracts awarded prior to
January 1, 2012.