SB1241 - Skilled and trained workforce requirements.

Amended IN Senate May 14, 2026 Amended IN Senate March 26, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 1241 Introduced by Senator Smallwood-Cuevas February 19, 2026 An act to amend Sections 2600, 2600.5, 2601, and 2603, of 2603 of, and to add Sections 2600.6, 2603.2, and 2603.3 to, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST SB 1241, as amended, Smallwood-Cuevas. Skilled and trained workforce requirements. Existing law establishes requirements with respect to public contracts that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project, as specified. Existing law requires a public entity subject to skilled and trained workforce requirements to include a specified notice in all bid documents. Existing law specifies that a failure of a public entity to include the required notice that a project is subject to the skilled and trained workforce requirement does not excuse a public entity from those requirements. This bill would expand the circumstances under which those requirements apply to specified instruments and laws, including development agreements and resolutions, as provided. The bill would make various technical and conforming changes. The bill would, in addition to the specified notice in bid documents, require a public entity to post, or require a prime contractor to post, a job site notice specifying that the project is subject to the skilled and trained workforce requirement. The bill would also extend the same posting and notice requirement to private developers. The bill would impose a penalty of no more than $10,000 per month on a private developer who failed to comply with the above-described posting or notice requirement, following an investigation by the Labor Commissioner or its designee. The bill would authorize the Labor Commissioner to reduce or waive the penalty under specified circumstances. The bill would further require the Labor Commissioner or its designee to issue a civil wage and penalty assessment to the developer, as specified, for a violation of the posting and notice requirement, and would authorize a request for review of the assessment under certain statutory processes. The bill would make a willful violation of the posting or notice requirement by a developer, its agent, or representative, to be a misdemeanor. By creating a new crime, this bill would impose a state-mandated local program. Existing law requires a contractor or bidder, among others, to submit a monthly report to the public entity while the project or contract is being performed demonstrating compliance with skilled and trained workforce requirements, as specified. Existing law authorizes the Labor Commissioner to assess specified civil penalties against a contractor or subcontractor for a violation of the skilled and workforce requirements, and authorizes reduction or waiver of a penalty for specified conditions. Among these conditions is whether a contractor or subcontractor submitted and followed a plan to achieve substantial compliance with the skilled and trained workforce requirements. This bill would prohibit the Labor Commissioner from waiving penalties for an incomplete or absent monthly compliance report and a material misrepresentation. The bill would impose the highest penalty for violations of skilled and trained workforce requirements committed after a noncompliance notice, as specified. The bill would expand the conditions that the Labor Commissioner should consider when setting a monetary penalty for failure to use a skilled and trained workforce, including, for the first violation in the prior 3 years, whether a contractor or subcontractor submitted and followed a substantial compliance plan to remedy noncompliance. The bill would define various terms for these purposes, including “substantial compliance plan” and “material misrepresentation.” Existing law provides that if the Labor Commissioner finds a contractor or subcontractor to be in violation of the skilled and trained workforce requirements with the intent to defraud, the contractor or subcontractor, among others, is ineligible to bid on or be awarded a public works contract, as specified. This bill would, instead, provide that whenever a contractor or subcontractor is found by the Labor Commissioner to have committed a material representation under the skilled and trained workforce requirements, the contractor or subcontractor, among others, is ineligible to bid on or be awarded a public works contract, as specified. The bill would require the Labor Commissioner to accept complaints from a labor-management committee, as provided, alleging a skilled and trained workforce violation by a contractor or subcontractor. The bill would make various technical and conforming changes. 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. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 2600 of the Public Contract Code is amended to read: 2600. (a) This chapter applies when a public entity is required by statute, regulation, rule, resolution, ordinance, permit condition, permit streamlining condition, public funding condition, development agreement, or public contract to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. (b) A public entity may require a bidder, contractor, or other entity to use a skilled and trained workforce to complete a contract or project regardless of whether the public entity is required to do so by a statute or regulation. (c) When the use of a skilled and trained workforce to complete a contract or project is required pursuant to subdivision (a) or (b), the public entity shall include in do both of the following: (1) Provide a notice in all bid documents and construction contracts for such work a notice that the project is subject to the skilled and trained workforce requirement. (2) Post or require the prime contractor to post a job site notice that the project is subject to the skilled and trained workforce requirement. SEC. 2. Section 2600.5 of the Public Contract Code is amended to read: 2600.5. The failure of a public entity to provide a notice notice, or post or require the posting of a job site notice, pursuant to subdivision (c) of Section 2600 shall not excuse either of the following: (a) The public entity from the requirement to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. (b) A bidder, contractor, or other entity from the obligation to use a skilled or trained workforce if such a requirement is imposed by a statute, regulation, rule, resolution, ordinance, permit condition, permit streamlining condition, public funding condition, development agreement, or public contract. SEC. 3. Section 2600.6 is added to the Public Contract Code, to read: 2600.6. (a) A private developer required to comply with the skilled and trained workforce requirement of this chapter for a project shall do both of the following: (1) Provide a notice in all bid documents and construction contracts for such work a notice that the project is subject to the skilled and trained workforce requirement. (2) Post or require the prime contractor to post a job site notice that the project is subject to the skilled and trained workforce requirement (b) The failure of a private developer to provide a notice, or to post or require the posting of a job site notice, pursuant to subdivision (a) shall not excuse a contractor or subcontractor from the obligation to use a skilled or trained workforce if such a requirement is imposed by a statute, regulation, rule, resolution, ordinance, permit condition, permit streamlining condition, public funding condition, development agreement, or contract. SEC. 3. SEC. 4. Section 2601 of the Public Contract Code is amended to read: 2601. For purposes of this chapter: (a) “Apprenticeable occupation” means an occupation for which the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations had approved an apprenticeship program pursuant to Section 3075 of the Labor Code before January 1, 2014. (b) “Chief” means the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations. (c) “Graduate of an apprenticeship program” means either of the following: (1) An individual that has been issued a certificate of completion under the authority of the California Apprenticeship Council for completing an apprenticeship program approved by the chief pursuant to Section 3075 of the Labor Code. (2) An individual that has completed an apprenticeship program located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor. (d) “Skilled and trained workforce” means a workforce that meets all of the following conditions: (1) All the workers performing work in an apprenticeable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the chief. (2) (A) For work performed on or after January 1, 2017, at least 30 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation. This requirement shall not apply to work performed in the occupation of teamster. (B) For work performed on or after January 1, 2018, at least 40 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except that the requirements of subparagraph (A) shall continue to apply to work performed in the following occupations: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher. (C) For work performed on or after January 1, 2019, at least 50 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except that the requirements of subparagraph (A) shall continue to apply to work performed in the following occupations: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher. (D) For work performed on or after January 1, 2020, at least 60 percent of the skilled journeypersons employed to perform work on the contract or project by every contractor and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation, except that the requirements of subparagraph (A) shall continue to apply to work performed in the following occupations: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terrazzo worker or finisher, and tile layer, setter, or finisher. (3) For an apprenticeable occupation in which no apprenticeship program had been approved by the chief before January 1, 1995, up to one-half of the graduation percentage requirements of paragraph (2) may be satisfied by skilled journeypersons who commenced working in the apprenticeable occupation before the chief’s approval of an apprenticeship program for that occupation in the county in which the project is located. (4) The apprenticeship graduation percentage requirements of paragraph (2) are satisfied if, in a particular calendar month, either of the following is true: (A) At least the required percentage of the skilled journeypersons employed by the contractor or subcontractor to perform work on the contract or project meet the graduation percentage requirement. (B) For the hours of work performed by skilled journeypersons employed by the contractor or subcontractor on the contract or project, the percentage of hours performed by skilled journeypersons who met the graduation requirement is at least equal to the required graduation percentage. (5) The contractor or subcontractor need not meet the apprenticeship graduation requirements of paragraph (2) if, during the calendar month, the contractor or subcontractor employs skilled journeypersons to perform fewer than 10 hours of work on the contract or project. (6) A subcontractor need not meet the apprenticeship graduation requirements of paragraph (2) if both of the following requirements are met: (A) The subcontractor was not a listed subcontractor under Section 4104 or a substitute for a listed subcontractor. (B) The subcontract does not exceed one-half of 1 percent of the price of the prime contract. (e) “Skilled journeyperson” means a worker who either: (1) Graduated from an apprenticeship program for the applicable occupation that was approved by the chief or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor. (2) Has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the chief. (f) “Substantial compliance plan” means a written plan that does both of the following: (1) Ensures full compliance with the apprenticeship graduate workforce percentage requirements and skilled journeyperson requirements set forth in this chapter on all work performed after acceptance of the plan. (2) Substantially remedies prior violations of skilled and trained workforce requirements through exceeding the minimum apprenticeship graduate r [Text truncated for display. 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