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California Senate Bill 854

Senate Bill 854, signed into law June 20, 2014, became effectively immediately.  It established a new public works contractor registration program which will collect fees to fund compliance monitoring and enforcement, determine prevailing wage and public works coverage, and hear enforcement appeals.

All contractors and subcontractors intending to bid or perform work on public works projects will be required to register, and annually renew, online for the program.  Registration costs $400 and covers one fiscal year (July 1-June 30), regardless of the date on which a contractor registers. Registration is renewable annually.

Contractors or subcontractors submitting bids must be registered by March 1, 2015.  The requirement to use only registered contractors and subcontractors on public works projects, greater than $1,000, applies to all projects awarded on or after April 1, 2015. No bid can be accepted nor any contract or subcontract entered into nor purchase order issued without proof that the contractor or subcontractor is registered.

Public works refers to construction, alteration, demolition, installation, or repair work (including maintenance) done under contract and paid by public funds.  For a more detailed explanation of public works projects, refer to California Labor Code 1720 -1720.6. 

This memo is being posted to any vendors currently contracted with the District’s Fiscal Services Department.  What are we asking you to do?  If the services you are providing the District, or may provide the District in the future, fall under the definition of “public works”, please ensure you are registered with the DIR prior to March 1, 2015.  Effective immediately, the District will be required to fill out a form alerting the DIR of the services you are providing the District.   Detailed information is required to complete this form.  If the services you are currently providing the District fall under “public works” you may be asked to provide information needed to complete the DIR form.  We ask that you complete this in a timely manner to avoid interruption in the services you are providing. 

Note: Contractors who work exclusively on small public works projects are not required to register as a public works contractor or file electronic certified payroll reports for those projects. Contractors are still required to maintain certified payroll records on a continuous basis, and provide them to the Labor Commissioner’s Office upon request. Additionally, awarding agencies are not required to submit the notice of contract award through DIR’s PWC-100 system on projects that fall within the small project exemption. The small project exemption applies for all public works projects that do not exceed:

*  $25,000 for new construction, alteration, installation, demolition or repair  

*  $15,000 for maintenance

More information can be found at The Department of Industrial Relations website.