Assembly committee advances bill to clarify certified payroll requests for public works

Assemblymember Berman, author of AB 538, told the Assembly Labor and Employment Committee on March 19 that the bill would create a statutory process for awarding agencies to obtain certified payroll records from contractors when members of the public request them.

"I'm proud to present AB 538, a bill to continue the legislature's commitment to prevailing wage and ensuring that workers are paid what they are rightfully owed," Assemblymember Berman said. He said the bill would "establish a process and timeline for awarding bodies to receive certified payroll records from the contractor" and would not impose additional liability on awarding bodies if contractors fail to provide the records.

The bill, sponsored by the California Nevada Conference of Operating Engineers, responds to instances in which awarding agencies have told requesters they could not produce records because the records were not in the agency's possession at the time of the request. Matt Cremins, director of the California Nevada Conference of Operating Engineers, told the committee existing law allows only three entities to obtain certified payrolls directly from a contractor: a project employee, the awarding agency, and the Division of Labor Standards Enforcement (DLSE). Cremins said the bill would require awarding bodies to at minimum attempt to obtain records and to notify DLSE when contractors do not comply.

Supporters who spoke at the hearing included representatives of building and trades unions and labor organizations. Opposition testimony came from local-government and housing-sector groups. Eric Lawyer, appearing for the California State Association of Counties, said his group was "in respectful opposition" because the bill could impose an unnecessary burden on counties, cities and special districts and argued DLSE may be better placed to pursue records and impose penalties. Graciela Casillo Crangs (transcript spelling), speaking for a housing organization, raised privacy concerns about how certified payroll records would continue to be redacted and urged caution so that affordable housing recipients would not be held financially responsible for contractors' misconduct.

Committee members discussed the bill's practical effects. Assemblymember Coe moved the bill and said awarding bodies are often the most accessible point for the public to request records. Assemblymember Ward voiced concerns about potential burdens on affordable housing providers and asked the author to work with stakeholders on tightening language to avoid unintended consequences. Berman said he was open to adjustments and described the bill as "a pretty narrow fix to a pretty narrow problem."

The committee voted to pass AB 538 to the Appropriations Committee. Roll-call statements on the record included "Ortega, aye; Flora, aye; Chen, aye; El Hawari, aye; Cora, aye; Lee, aye; Ward, I."