BILL NUMBER: AB 408	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Levine

                        FEBRUARY 16, 2007

   An act to amend Sections 465 and 466 of the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 408, as introduced, Levine. Public utility contracts:
prevailing wages.
   (1) Existing law requires that if a public utility contracts out
the performance of custodial or janitorial services for the utility,
the contract for those services specify that the contractor pay
"prevailing wages," as defined. Existing law requires the contractor
to pay its employees the prevailing wage and to include a provision
in the contract making the contractor's failure to do so cause for
termination of the contract. Existing law requires every contractor
to whom a contract is awarded by a public utility and every
subcontractor under that contractor to pay not less than the
prevailing wage to those employees and requires the Division of Labor
Standards Enforcement to enforce the foregoing requirement.
   This bill would, in addition, include security services as
services subject to the prevailing wage and contract security
provisions applicable to contractors and subcontractors providing
those services to a public utility.
   Existing law makes any public utility that violates the Public
Utilities Act, or that fails to comply with any part of any order,
decision, rule, direction, demand, or requirement of the Public
Utilities Commission guilty of a crime. Because a violation of these
provisions would be a crime under existing law, this bill would
impose a state-mandated local program.
   (2) 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 465 of the Public Utilities Code is amended to
read:
   465.  (a) Except as provided in subdivision (c), whenever any
labor of a  security,  custodial  ,  or janitorial
nature is not performed by the employees of a public utility,
 such   the  labor shall be let out under
contract to the lowest responsible bidder with the  provision
  requirement  that prevailing wages be a
condition of  any such   the  contract. For
the purposes of this section, "prevailing wages" shall be deemed to
include employer payments for health and welfare, pension, holidays,
sick leave, vacation, apprenticeship or other training programs.
   (b) A public utility shall implement the provisions of subdivision
(a) by requiring the entity with which it contracts to pay its 
security,  custodial  ,  or janitorial employees the
prevailing wage. The public utility awarding the contract shall cause
to be inserted in the contract a stipulation that the failure to pay
prevailing wages shall be cause for the termination of the contract.

   (c)  Nothing in this   This  section
 shall   does not  prevent a public utility
from employing a  security,  custodial  ,  or
janitorial service for a period of 90 days or less without a contract
meeting the requirements of subdivision (a)  of this section
 .
   (d) The Director of the Department of Industrial Relations shall
determine the prevailing wage for  security,  custodial 
,  or janitorial employees in accordance with the standards set
forth in Section 1773 of the Labor Code.
  SEC. 2.  Section 466 of the Public Utilities Code is amended to
read:
   466.  Pursuant to Section 465, the contractor to whom the contract
is awarded and any subcontractor  under him  
of the contractor  shall pay not less than the specified
prevailing wage to all  workmen   workers 
performing  security,  custodial  ,  or janitorial
labor in the  excecution   execution  of
the contract.
   Each contractor and subcontractor shall keep an accurate payroll
record, showing the name, address, social security number, work
classification, straight time and overtime hours worked each day and
week, and the actual per diem wages paid to each  security, 
janitorial  ,  and custodial worker employed by 
him   the contractor and subcontractor  in
connection with the contract. The contractor's and subcontractor's
payroll records shall be available for inspection at all reasonable
hours, and a copy shall be made available upon request to the
employee, or his  or her  authorized representative, and the
Division of Labor Standards Enforcement. After a complaint has been
filed with the Division of Labor Standards Enforcement alleging that
the contractor or the subcontractor has paid less than the prevailing
wage, the contractor or subcontractor shall upon receipt of a
written notice from the Division of Labor Standards Enforcement
within 10 days file with the public utility and the Division of Labor
Standards Enforcement a certified copy of the payroll records.
  SEC. 3.  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.