The Labor Code specifies what types of construction projects are considered “Public Works” and subject to wage requirements and what projects are exempt. Public Works for purposes of requirements regarding the payment of prevailing wages is defined to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds.
Assembly Bill 3190 (AB 3190) expands the definition of “paid for in whole or in part 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. AB 3190 adds to the definition of “paid for in whole or in part of public funds” to include projects paid using credits that the state or political subdivision agrees to apply against tax liabilities to the state or political subdivision.
AB 3190 also exempts 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.
(AB 3190 amends section 1720 of the Labor Code)