SB 150 Promotes Regional Training Partnerships and Requires State Agencies to Incorporate Community Benefits into Project Labor Agreements for Projects over $35M

Senate Bill 150 (“SB 150”) aims to ensure that federal funding received through the federal Infrastructure and Investment Jobs Act (often referred to as the Infrastructure Bill), Inflation Reduction Act, and CHIPS and Science Act is allocated to regional training partnerships and used to promote community benefits.

SB 150 achieves its objectives in a number of ways.

First, if a state agency is building a project with at least $35 million in construction costs and would like to have a project labor agreement, the agency must include certain “community benefits” in the project labor agreement.

“Community benefits” are described as “partnerships with high road construction careers programs, local hire goals, coordination with programs that assist veterans in transitioning to civilian employment, job fairs for construction apprenticeship or preapprenticeship programs, or other methods agreed upon by the parties to promote employment and training opportunities for veterans and individuals who reside in economically disadvantaged areas.” Project labor agreements often contain such terms, but they are now being required for certain state projects. The law defines “high road construction careers programs” as regional training partnerships “comprised of local building trades councils, workforce, community, and education interests that connect to state-approved apprenticeship programs, that utilize the standard Multi-Craft Core preapprenticeship training curriculum and provide a range of supportive services and career placement assistance to women and people from underserved and underrepresented populations.”

Second, SB 150 requires the state Labor and Workforce Development Agency, Government Operations Agency and Transportation Agency to work together to develop model contractual and procurement provisions that will “maximize benefits to marginalized and disadvantaged communities,” which must be delivered to the Governor and Legislature by March 30, 2024. These recommendations must be developed in consultation with certain other state agencies, stakeholders and academics, and designed to improve access to quality jobs connected to the Infrastructure Bill, Inflation Reduction Act, and CHIPS and Science Act.

Third, SB 150 requires the Department of Transportation (aka CalTrans) to reserve $50 million from Infrastructure Bill funds to support the high road construction careers programs discussed above.

If you or your labor organization is interested in how SB 150 could promote construction careers in your industry, contact your local Workforce Development Board or your legal counsel for further information.