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New law cuts state funding in cities that restrict PLAs

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in Employment Law,Human Resources

On April 26, Gov. Jerry Brown signed a bill denying state construction funds to cities that have ordinances that restrict the use of project labor agreements (PLAs).

PLAs are agreements between labor unions and municipalities that generally require construction jobs to be filled by local workers. They often include diversity requirements and set rules governing pay, overtime, working hours and procedures for resolving labor disputes.

S.B. 829 applies to Fresno, Ocean­­side and Chula Vista, all charter cities that have adopted ordinances restricting use of PLAs on city construction projects.

The new law was supported by the State Building & Con­­struc­­tion Trades Council (SBCTC), a coalition of construction trade unions. The Asso­­ciated Builders and Contractors, a construction-industry trade group, opposed it.

The law, which takes effect Jan. 1, 2013, clarifies earlier legislation that denied state funding only to city projects for which PLAs were rejected. S.B. 829 cuts off state funding for all municipal construction projects in those cities.

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