Summary of Selected Skilled and Trained Workforce (STW ...

1 Summary of Selected Skilled and Trained Workforce (STW) Statutes Last Updated 10/3/2019. EDUCATION CODE (EDC) PROVISIONS. EDC Section Affected Summary of STW Requirements Does STW If the project is Can DLSE enforce via Sunset/. Entities and definition at not a public CWPA (1) the use of a Repeal Public work, is there a Skilled and Trained Projects statute outside Date (if Contract Workforce , and (2) applicable). of the PWL that Code (PCC) payment of prevailing requires section payment of wage rate if the project is 2600 et seq. prevailing wage not a public work?2. apply? rate?1. EDC School For a design-build entity to be prequalified or Yes No, but all DLSE Enforce Use of January 1, Districts shortlisted by a school district, it must provide an (EDC prevailing wage Skilled and Trained 2025.)

2 (EDC enforceable commitment to the school district that requirements Workforce : (EDC. et Design-Build the entity and its contractors at every tier will meet (c)(1)) will apply if the Yes (EDC . project is a (c)(1)), PCC 2600(a), seq.) Contracts in the STW requirements of PCC section 2600 et seq. ). public work 2603 (CWPAs and excess of (EDC (c)(1).) This requirements does not under Labor debarments)). 1358 $1,000,000 apply if certain types of project labor agreements Code 1720 et (2015) (EDC are in place. (EDC (c)(2).) DLSE Enforce prevailing seq. ) wage Rate If Not Public Work: EDC School To enter into a lease-leaseback agreement (where Yes. Yes DLSE Enforce Use of Skilled There are two 17406, Districts construction will occur on land owned by the school (EDC (EDC 17424) and Trained Workforce : versions of district) under EDC section 17406 ( permitting a school Yes (EDC (a), PCC EDC section (EDC (a)) 2600(a), 2603 (CWPAs 17406, one of 17400 et Lease- district to lease a site to a contractor for $1 per year so and debarments)) which is the contractor can perform construction on that site of a seq.

3 Leaseback operative building that will be used by the district), the school DLSE Enforce prevailing until July 1, (EDC 17406) district's governing board must enter into an enforceable wage Rate If Not Public 2022, and 566 commitment with the lease-leaseback entity that the STW Work: another (2015) requirements of PCC section 2600 et seq. will be complied No. May be enforced by which is with. (EDC (a).) The STW requirements do not other means, such as a court operative on apply if certain types of project labor agreements are in action. and after July place. (EDC (b).) 1, 2022. 1. For all statutes, all of the prevailing wage Law ( PWL ) requirements apply if the project qualifies as a public work under Labor Code 1720 et seq. 2. CWPA means a Civil wage and Penalty Assessment issued pursuant to Labor Code section 1741.

4 1. EDC Section Affected Summary of STW Requirements Does STW If the project is Can DLSE enforce via Sunset/. Entities and definition at not a public CWPA (1) the use of a Repeal Public work, is there a Skilled and Trained Projects statute outside Date (if Contract Workforce , and (2) applicable). of the PWL that Code (PCC) payment of prevailing requires section payment of wage rate if the project is 2600 et seq. prevailing wage not a public work?2. apply? rate?1. EDC School To enter into a lease-to-own agreement (where Yes Yes DLSE Enforce Use of There are 17407, Districts construction will occur on land not yet owned by the (EDC (EDC 17424) Skilled and Trained two versions (EDC school district) under EDC section 17407 ( where (a)) Workforce : of EDC. 17400 et Lease to Own both the site and facilities to be constructed will be Yes (EDC (a), section PCC 2600(a), 2603 17407, one seq.)))

5 (EDC 17407) leased to the district under a single lease), the (CWPAs and of which is governing board of the school district must enter debarments)) operative 566 into an enforceable commitment with the lease-to- until (2015) own entity that the STW requirements of PCC DLSE Enforce prevailing January 1, section 2600 et seq. will be complied with. (EDC wage Rate If Not Public 2019 and (a).) The STW requirements do not apply Work: another if certain types of project labor agreements are in No. May be enforced by which is place. (EDC (b).) other means, such as a operative on court action. and after January 1, 2019. EDC County: Board If the county board of education, county office of Yes Yes DLSE Enforce Use of See Sunset of Education, education, or county superintendent of schools leases to (EDC (EDC 17424) Skilled and Trained and Repeal (EDC 17400 Office of any person firm or corporation, under what is commonly 1048, Workforce : Dates of et seq.

6 Education, and known as a lease-leaseback or lease-to-own , Yes (EDC 1048, EDC. agreement, any any real property that belongs to the , (a), PCC. Superintendent (a)) sections county office of education or a school district, and 2600(a), 2603 (CWPAs and of Schools 17406 and requires the lessee to construct on the demised premises and debarments)). or provide for the construction of a building for use by the 17407, as EDC 1048 Lease- county office of education or school district, the affected DLSE Enforce prevailing applicable, (EDC 1040 Leaseback entity must comply with all the requirements including wage Rate If Not Public above. et seq.) and the STW requirements of PCC section 2600 et seq. Work: Lease-to- applicable to the governing board of a school district No. May be enforced by 591 Own pursuant to EDC sections 17406, 17407, and other means, such as a (2017) (EDC 1040, (EDC 1048, ) The STW requirements do not court action.

7 Apply if certain types of project labor agreements are in place. (EDC (b).). 2. GOVERNMENT CODE (GOV) PROVISIONS. GOV Section Affected Entities Summary of STW Requirements Does STW If the project is Can DLSE enforce Sunset/Repeal and Projects definition not a public via CWPA (1) the Date at Public work, is there a use of a Skilled and (if applicable). statute outside Contract Trained Workforce , of the PWL that Code (PCC) and (2) payment of requires section payment of prevailing wage 2600 et prevailing wage rate if the project is seq. apply? rate? not a public work? GOV Streamlined To take advantage of 35's streamlined approval Yes Yes DLSE Enforce Use of January 1, 2026. Housing procedures, applicants must certify that a Skilled and (GOV (GOV Skilled and Trained (GOV. (GOV 65913 Development Trained Workforce shall be used to complete the (a) (a)(8) Workforce : (k)).)))

8 Development if the application is approved and the Yes, unless project et seq.) Approvals by a (8)(B)(ii)) (A)(i)) labor agreement . development meets any of the following (GOV . Local meets statutory (a)(8)(B)(i)): 35 Government From 1/1/18 to 12/31/2012: The development consists of 75 or requirements. (GOV . (2017) ( 35) more units that are not 100 percent subsidized affordable (a)(8). housing and will be located within a jurisdiction located in a (B)(iii)(III)-(IV).). coastal or bay county with a population of 225,000 or more. Otherwise, CWPA and (GOV debarment From 1/1/22 to 12/31/25: The development consists of 50 or (a)) procedures for STW. more units that are not 100 percent subsidized affordable violations in PCC . housing and will be located within a jurisdiction located in a 2603 apply.

9 (PCC . coastal or bay county with a population of 225,000 or more. 2603(l).). From 1/1/18 to 12/31/19: The development consists of 75 or more units that are not 100 percent subsidized affordable DLSE Enforce housing and will be located within a jurisdiction with a prevailing wage population of fewer than 550,000 and that is located in a Rate If Not Public coastal or bay county. Work: From 1/1/20 to 12/31/21: The development consists of more than 50 units that are not 100 percent subsidized affordable Yes, unless project housing and will be located within a jurisdiction with a labor agreement . population of fewer than 550,000 and that is not located in a meets statutory coastal or bay county. requirements. (GOV. From 1/1/22 to 12/31/25: The development consists of more (a)(8). than 25 units that are not 100 percent subsidized affordable (A)(ii)(IV)-(V).)

10 Housing and will be located within a jurisdiction with a population of fewer than 550,000 and that is not located in a coastal bay county. No Skilled and Trained Workforce requirement if project has 10 or fewer units as is not a public work per Labor Code 1720 et seq. (GOV (a)(8)(C).). 3. GOV Section Affected Entities Summary of STW Requirements Does STW If the project is Can DLSE enforce Sunset/Repeal and Projects definition not a public via CWPA (1) the Date at Public work, is there a use of a Skilled and (if applicable). statute outside Contract Trained Workforce , of the PWL that Code (PCC) and (2) payment of requires section payment of prevailing wage 2600 et prevailing wage rate if the project is seq. apply? rate? not a public work? GOV 66201 Housing To take advantage of the creation of a Housing Yes Yes Use of Skilled and (GOV 66200 Sustainability Sustainability District, the applicant must certify that (GOV (GOV Trained Workforce : et seq.)))