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First Substitute S.B. 139

Representative Michael T. Morley proposes the following substitute bill:


             1     
WAGE PROVISIONS

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Howard A. Stephenson

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill modifies the Utah Minimum Wage Act to prohibit certain actions by a county,
             9      city, or town.
             10      Highlighted Provisions:
             11          This bill:
             12          .    prohibits a county, city, or town when contracting for the direct purchase of goods
             13      and services from giving a preference to a person who pays that person's employees
             14      a wage that exceeds the federal minimum wage;
             15          .    clarifies language related to federally funded projects;
             16          .    clarifies that the restrictions apply to any entity created by a city, town, or county;
             17          .    repeals a provision that addresses civil liability of a person for the wage obligations
             18      of another person with whom the person has contracted; and
             19          .    makes technical changes.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:


             26          34-40-106, as enacted by Chapter 248, Laws of Utah 2001
             27      REPEALS:
             28          34-28-8, as enacted by Chapter 85, Laws of Utah 1969
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 34-40-106 is amended to read:
             32           34-40-106. Limitations on minimum wage imposed by cities, towns, or counties.
             33          (1) A city, town, or county may not establish, mandate, or require a minimum wage
             34      that exceeds the federal minimum wage as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor
             35      Standards Act of 1938.
             36          (2) (a) A city, town, or county may not require that a person who contracts with the
             37      city, town, or county pay that person's employees a wage that exceeds the federal minimum
             38      wage as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
             39          (b) Subsection (2)(a) does not apply when federal law requires the payment of a
             40      [prevailing or minimum] specified wage to persons working on projects funded in whole or in
             41      part by federal funds.
             42          (c) Subsection (2)(a) applies to contracts executed on or after April 30, 2001.
             43          (3) (a) If a city, town, or county contracts with a person for the direct purchase of goods
             44      or services, in awarding or otherwise executing that contract, the city, town, or county may not
             45      give any preferential treatment to a person on the basis that the person pays that person's
             46      employees a wage that exceeds the minimum wage as provided in 29 U.S.C. 201 et seq., Fair
             47      Labor Standards Act of 1938.
             48          (b) This Subsection (3) does not apply when federal law requires the consideration of
             49      whether a person pays the person's employees a specified wage to persons working on projects
             50      funded in whole or in part by federal funds.
             51          (c) This Subsection (3) applies to contracts executed on or after May 2, 2005.
             52          (4) (a) The restrictions of this section on a city, town, or county apply to any entity
             53      created by the city, town, or county.
             54          (b) This Subsection (4) applies to contracts executed on or after May 2, 2005.
             55          Section 2. Repealer.
             56          This bill repeals:


             57          Section 34-28-8, Subcontractors -- Compliance with act.


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