It’s that time of year again.
The second half of the 2023-2024 legislative session saw the introduction of 2,124 bills, of which, 1418 were signed into law. Among the bills signed by the governor impacting contractors is an increase in the small work licensing exemption for $500 to $1,000, the licensing of Indian tribes by the CSLB, and a number of project-specific bills, as is typical, related to project-specific alternative project delivery methods.
Wishing you and yours a great 2025!
Licensing
AB 2622 – Increases the small work licensing exemption from $500 to $1,000 provided that the work: (1) does not require a building permit; and (2) does not involve the employment of others to perform or assist in the work.
SB 1455 – Eliminates the requirement that an employment duty statement be included when applying for a contractor’s license. Defines “direct supervision or control” as including, among other things, supervising construction operations. Permits federally recognized Indian tribes and participating tribes to obtain contractor’s licenses and exempts federally recognized Indian tribes and participating tribes from certain requirements. Requires contractors subject to workmanship complaints that result in a letter of admonishment or citation to reimburse the CSLB for industry expert costs. Requires public agencies to verify that contractors hold proper license to perform work on public works projects. Requires the CSLB to establish a process and procedure by January 1, 2027 to verify that contractor’s exempt from workers’ compensation insurance requirements are in fact exempt. Delays implementation of mandatory workers’ compensation insurance for all contractors regardless of whether they have employees from January 1, 2026 to January 1, 2028. Note that C-8, C-20, C-22, C-39 and D-49 licensees are still required to have workers’ compensation insurance even if they have no employees.
Public Works
AB 171 – Requires contractors and subcontractor performing portions of developments undertaken pursuant to the Middle Class Housing Act of 2022, the Affordable Housing and High Road Job Act of 2022, the Affordable Housing on Faith and Higher Education Lands Act of 2023, that are not public works projects to register with the Department of Industrial Relations.
AB 2192 – Defines “public project” to include installations involving any publicly owned, lease, or operated under the Uniform Public Construction Cost Accounting Act. Increases from $60,000 to $75,000 public works projects that may per formed by employees of a public agency by force account, negotiated contract, or purchase order, from $200,000 to $220,000 public works projects let by informal procedures, and from more than $200,000 to more than $220,000 public works projects required to be let by formal procedures. In the event bids for a public works project are in excess of $220,000, permits public agencies to award the contract at $235,000 or less, up from $212,500 or less, to the lowest responsive bidder if it determines the cost estimate of the public entity was reasonable.
AB 2705 – Existing law provides that both contractors and subcontractors are jointly and severally liable for unpaid wages or penalties to workers of subcontractors on public works projects. Provides that the limitations period for the Labor Commissioner to file an action against a payment bond is 18 months, subject to tolling under certain circumstances, after the recording of a notice of completion.
SB 1162 – Requires monthly apprenticeship compliance reports to include the full name of, and identify the apprenticeship program name, location, and graduation date of, all workers relied upon to satisfy the apprenticeship graduation percentage requirement. Requires the Division of Apprenticeship Standards to maintain a public online database to verify that a worker graduated from a California apprenticeship program by July 1, 2025.
SB 1303 – Requires private labor compliance entities, prior to withholding funds for alleged violations of the prevailing wage law, to confer with the negotiating parties to review relevant public works law, prohibits such entities from withholding amounts that exceed the alleged underpayments and penalty assessments, and requires such entities to provide a venue to review and respond to evidence of alleged violations.
Private Works
AB 2696 – Existing law provides that both direct contractors and subcontractors are jointly and severally liable for unpaid wages to workers of subcontractors on private works projects. Authorizes joint labor-management cooperation committees to bring an action against a direct contractor enforce liability for unpaid wage, fringe or other benefit payments or contributions, penalties or liquidated damages, and interest owed.
Construction Standards
AB 2579 – Existing law authorizes enforcement agencies to enter and inspect any buildings or premises when necessary to secure compliance with or prevent a violation of the California Building Standards Code and regulations an requires an inspection by January 1, 2025 and by January 1st every 6 years thereafter, of exterior elevated elements and associated waterproofing elements for buildings with 3 or more multifamily dwelling units. Revises the initial inspection deadline until January 1, 2026 and provides that no new inspection is required until January 1, 2006 if the property was inspected within 3 years prior to January 1, 2019.
SB 778 – Requires excavators to immediately cease excavation should a ticket expire, contact the regional notification center, and get a new ticket. Permits excavators to use vacuum excavation devises to expose subsurface installations provided that the excavator has informed the regional notification center of its intent to use a vacuum excavation device.
Employment
AB 1034 – Extends the Private Attorney General Act (PAGA) exemption sunset date for certain unionized construction employers from January 1, 2025 to January 1, 2038. To qualify, employers must: (1) pay workers at least 30% more than the minimum wage; and (2) operate under a collective bargaining agreement that expressly provides for the wages, hours of work, working conditions of employees, and premium wage rates for overtime hours worked.
Project-Specific
AB 179 – Authorizes the Department of General Services to employ job order contracting for contracts with a maximum initial contract term of 24 months with a maximum contract amount of $10 million in the first term of the contract and up to 4 one-year extensions with a maximum contract amount of $5 million for each extension. Prohibits a single job order from exceeding $1 million. Requires contractors awarded a job order contract to pay prevailing wages and use a skilled and trained workforce.
AB 1957 – Expands the pilot program available to the Counties of Alameda, Los Angeles, Monterey, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Solano and Yuba, to all counties, to select a bidder on the basis of best value for construction projects in excess of $1 million through January 1, 2030.
AB 2235 – Authorizes the City of Long Beach to employ alternative project delivery methods for contracts relating to the terminal development project at the Port of Long Beach also known as Pier Wind.
AB 2293 – Requires joint powers authorities, when undertaking a project for the construction and refurbishment of health care facilities, that any entity undertaking the project to pay prevailing wages and use a skilled and trained workforce.
SB 739 – Authorizes the City of Elk Grove to utilize construction manager at-risk contracts for the city’s zoo project.
