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Chapter 8. Office of the Director
Subchapter 4. Awarding Body Labor Compliance Programs
Article 2. Approval and Revocation of Approval of Labor Compliance Programs
§16426. Approval of Third Party Labor Compliance Program.
(a) Any entity seeking approval to operate a Labor Compliance Program pursuant to a contract with one or more Awarding Bodies or Joint Powers Authorities shall submit evidence of its capacity and ability to operate an effective Labor Compliance Program consistent with applicable legal requirements, based on the following factors:
(1) Experience and training of the entity's personnel on public works labor
compliance issues, including private sector experience on behalf of unions or contractors or on a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (section 175a of Title 29 of the United States Code) and participation in any public works enforcement training provided by the Division of Labor Standards Enforcement;
(2) The geographical area in which the entity intends to operate its Labor Compliance Program and the identity of the Awarding Bodies and Joint Powers Authorities, if any, with whom the entity intends to contract for operation of a Labor Compliance Program;
(3) Whether the entity shares personnel, management, ownership or other close affiliation with (A) any contractor or subcontractor that within the preceding five years has been awarded a public works contract within the geographical area with any Awarding Body or Joint Powers Authority identified in subpart (2) above, (B) any person or entity who has been the surety on such a contract, (C) any joint labor-management committee established pursuant to the Federal Labor Management Cooperation Act of 1978 (section 175a of Title 29 of the United States Code), or (D) any person or entity who has represented workers employed in the same or similar classifications as those employed for such a contract and who has been engaged in (i) an organizational campaign under the National
Labor Relations Act with contractors competing for such contracts or (ii) a jurisdictional dispute with another collective bargaining representative of workers utilized for such contracts;
(4) The record of any contractor, subcontractor, surety, or worker representative referred to in subpart (3) above with respect to compliance and enforcement or aiding in the compliance and enforcement of prevailing wage requirements under the Labor Code in the preceding five years;
(5) The availability of competent legal support for the Labor Compliance Program and whether the persons or firms providing that support also represent any contractor, subcontractor, surety, or worker representative referred to in subpart (3) above;
(6) The availability and quality of a manual outlining the responsibilities and procedures of the Labor Compliance Program to any Awarding Body or Joint Powers Authority with which it contracts;
(7) The method by which the Labor Compliance Program will transmit notice to the Labor Commissioner of violations which may lead to debarment under Labor Code Section 1777.1;
(8) Awareness of the rights and responsibilities imposed on the Labor Compliance Program as an agent of a governmental agency under section 16421(c) above and the existence of procedures designed to inform personnel of the Labor Compliance Program of these rights and responsibilities and to insure the compliance of employees and consultants who participate in making governmental decisions with conflict of interest reporting requirements, such as through participation in internet-based or live training programs provided by the Fair Political Practices Commission; and
(9) The identity by job title and number of program employees who will participate in making governmental decisions within the meaning of Title 2 California Code of Regulations sections 18700 through 18702.4 or any successor regulations, and whether required statements of economic interest (FPPC Form 700) will be filed with local awarding bodies with which the program contracts, with the Director, or with some other specified entity.
(b) The Director shall notify the applicant within 60 days of receipt of the request for approval that approval is granted and the effective date of approval, or that the request is incomplete and of the materials necessary to complete the request or that the request is disapproved for other reasons.
(c) The Director may grant approval on an interim or temporary basis and may impose specific restrictions on a Program's approval based on factors limiting its capacity and ability to operate an effective Labor Compliance Program or conflict of interest concerns, subject to reasonable conditions for removing an interim or temporary designation or other specified restrictions.
(d) The Director will maintain a list of all approved third party Labor Compliance Programs, including programs approved on an interim, temporary or restricted basis, for distribution to interested parties upon request.
(e) When the Director has approved a third party entity to operate a Labor Compliance Program pursuant to Article 2 of this subchapter, that approval shall extend to any Awarding Body or Joint Powers Authority that has contracted with the approved entity for operation of its Labor Compliance Program, subject to the following:
(1) No such approval shall apply unless the Awarding Body or Joint Powers Authority has first provided written notice to the Director of its contractual relationship with the approved entity together with such further information as the Director may reasonably require to document that relationship, as well as
notice of whether or not the Awarding Body intends to initiate and enforce its Labor Compliance Program for all public works projects in which the Awarding Body participates;
(2) The parties shall provide immediate written notice to the Director and the Labor Commissioner upon the termination or proposed termination of such contractual relationship; and
(3) For good cause, the Director may disallow or withdraw approval for the operation of a Labor Compliance Program as to any particular Awarding Body or Joint Powers Authority, whether or not the third party entity remains approved to operate a Labor Compliance Program on behalf of one or more other Awarding Bodies or Joint Powers Authorities.
(f) A third party Labor Compliance Program with an initial approval or extended initial approval that is set to expire on or after January 30, 2009, shall be entitled to convert to approved status without a prescribed expiration date and subject to revocation only in accordance with section 16428 below, upon providing satisfactory evidence to the Director of all of the following:
(1) the program has submitted timely, accurate, and complete annual reports in
accordance with section 16431 below;
(2) the program continues to employ personnel with experience and training on public works labor compliance issues;
(3) competent legal support remains available to the program;
(4) the program's manual of policies and procedures has been updated to accurately reflect any amendments to the public works laws and regulations (including the laws and regulations governing Labor Compliance Programs) between the time of the program's approval and the effective date of this subpart (f); and
(5) the program is in compliance with any specific conditions placed by the Director on its approval, and there is no written decision, order, or directive that requires the program to cease or limit its operations as of a specified date.
Note: Authority cited: Section 1773.5, Labor Code. Reference: Sections 1771.5 and 1777.1, Labor Code; and Section 175a, Title 29, United States
1. New section filed 2-20-92; operative 3-23-92 (Register 92, No. 13).
2. Renumbering of former section 16426 to section 16425 and new section 16426 filed 10-19-2004; operative 11-18-2004 (Register 2004, No. 43).
3. Amendment of section heading, section and Note filed 12-22-2008; operative 1-21-2009 (Register 2008, No. 52).
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