Public works.

(1) 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 the term "public works" for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law defines "paid for in whole or in part out of public funds" to include, among others, projects that involved transfer by the state or political subdivision of an asset of value for less than fair market price or projects where the money loaned by the state or political subdivision will be repaid on a contingent basis. Existing law makes a willful violation of laws relating to the payment of prevailing wages in public works a misdemeanor. Commencing January 1, 2026, this bill would expand the definition of paid for in whole or in part out of public funds to include projects paid using credits against a tax, including certain low-income housing tax credits. The bill would also exempt from public works provisions, private residential projects built on private property when the public funds are less than $3,000,000 for a project that is the acquisition or rehabilitation of a specified residential project. By expanding the scope of a crime, the bill would impose a state-mandated local program. The bill would make the bill's provisions operative only if AB 3160 of the 2023–24 Regular Session is enacted and takes effect on or before January 1, 2025, and would repeal those provisions on January 1, 2031. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.