Public works: public subsidy.

Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines "public works" to include, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds, but exempts from that definition, among other projects, an otherwise private development project if the state or political subdivision provides, directly or indirectly, a public subsidy to the private development project that is de minimis in the context of the project. This bill would generally provide that a public subsidy is de minimis if it is both less than $500,000 and less than 2% of the total project cost. The bill would specifically provide a public subsidy for a project that consists entirely of single family dwellings is de minimis if it is less than 2% of the total project cost. The bill would specify that these provisions do not apply to a project that was advertised for bid, or a contract that was awarded, before July 1, 2020. This bill would incorporate additional changes to Section 1720 of the Labor Code proposed by AB 1768 to be operative only if this bill and AB 1768 are enacted and this bill is enacted last.