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7 LONG TITLE
8 General Description:
9 This bill enacts provisions relating to a prevailing wage on state construction projects.
10 Highlighted Provisions:
11 This bill:
12 ▸ requires workers on a state construction project to be paid a prevailing wage;
13 ▸ provides for the determination of a prevailing wage;
14 ▸ authorizes the Labor Commission to investigate an alleged violation of the
15 prevailing wage provisions;
16 ▸ creates a criminal penalty and provides for a civil action for a violation of the
17 prevailing wage requirements; and
18 ▸ requires a bid issued by a procurement unit and a contract resulting from a bid to
19 comply with the prevailing wage requirements.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 63G-6a-602, as last amended by Laws of Utah 2020, Chapter 257
27 63G-6a-603, as last amended by Laws of Utah 2020, Chapter 257
28 ENACTS:
29 34-56-101, Utah Code Annotated 1953
30 34-56-201, Utah Code Annotated 1953
31 34-56-202, Utah Code Annotated 1953
32 34-56-203, Utah Code Annotated 1953
33 34-56-204, Utah Code Annotated 1953
34 34-56-301, Utah Code Annotated 1953
35 34-56-302, Utah Code Annotated 1953
36 34-56-303, Utah Code Annotated 1953
37 34-56-401, Utah Code Annotated 1953
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39 Be it enacted by the Legislature of the state of Utah:
40 Section 1. Section 34-56-101 is enacted to read:
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43 34-56-101. Definitions.
44 As used in this chapter:
45 (1) "Commission" means the Labor Commission created in Section 34A-1-103.
46 (2) "Construction project" means a project:
47 (a) undertaken by or for a state entity;
48 (b) for construction, reconstruction, improvement, enlargement, alteration, or repair of
49 a public improvement; and
50 (c) estimated to cost $100,000 or more.
51 (3) "Labor commissioner" means the commission's chief administrative officer
52 appointed under Section 34A-1-201, or the chief administrative officer's designee.
53 (4) (a) "Prevailing wage" means the wage that is:
54 (i) determined by the United States Department of Labor; and
55 (ii) generally paid to a worker engaged in similar work.
56 (b) "Prevailing wage" includes a benefit that is:
57 (i) determined by the United States Department of Labor; and
58 (ii) customarily provided to or paid on behalf of a worker engaged in similar work.
59 (5) "State entity" means the state or any department, division, agency, board,
60 commission, or other instrumentality of the state.
61 (6) "Worker" means an individual who:
62 (a) is employed by:
63 (i) a state entity; or
64 (ii) a contractor or subcontractor on a construction project for the state entity; and
65 (b) is employed to perform actual construction project work on the site of a
66 construction project.
67 Section 2. Section 34-56-201 is enacted to read:
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69 34-56-201. Payment of prevailing wage required -- Exception.
70 (1) (a) Except as provided in Subsection (2), a state entity shall:
71 (i) pay a worker no less than the prevailing wage for work of a similar character in the
72 locality in which the work is performed; and
73 (ii) ensure that a contract for a construction project requires:
74 (A) each worker to be paid the prevailing wage for work of a similar character in the
75 locality in which the work is performed; and
76 (B) each contractor and subcontractor on the construction project to comply with the
77 requirements of this chapter.
78 (b) For purposes of this chapter, an individual who transports material or equipment to
79 a construction project site is considered to be a worker if:
80 (i) the transporting of material or equipment is included in a phase of the construction
81 project; and
82 (ii) the actual work that the individual performs on the construction project site is more
83 than incidental to the individual's duties of transporting material or equipment.
84 (2) (a) Subsection (1)(a) does not apply with respect to an individual who is employed
85 pursuant to and is registered in a training or apprenticeship program approved by the United
86 States Department of Labor Office of Apprenticeship.
87 (b) Notwithstanding Subsection (2)(a), a state entity shall:
88 (i) pay an individual described in Subsection (2)(a) according to the applicable
89 apprenticeship standards and guidelines, but no less than 60% of a journeyperson's wage and
90 benefits; and
91 (ii) ensure that a contract for a construction project requires each individual described
92 in Subsection (2)(a) to be paid according to the applicable apprenticeship standards and
93 guidelines, but no less than 60% of a journeyperson's wage and benefits.
94 Section 3. Section 34-56-202 is enacted to read:
95 34-56-202. Prevailing wage determination.
96 (1) Before awarding a contract for a construction project, a state entity shall:
97 (a) obtain from the United States Department of Labor the prevailing wage for each
98 craft or type of work:
99 (i) needed to perform the contract; and
100 (ii) within the locality in which the construction project will take place; and
101 (b) make a determination of the prevailing wage for each craft or type of work
102 described in Subsection (1)(a) based on the prevailing wage information obtained under
103 Subsection (1)(a).
104 (2) A state entity's determination under Subsection (1) is final for all purposes of the
105 contract for which the determination is made.
106 Section 4. Section 34-56-203 is enacted to read:
107 34-56-203. Commission to determine prevailing wages.
108 Using the most recent United States Department of Labor wage determinations, the
109 commission shall annually determine the prevailing wage within the state for all occupations,
110 crafts, and types of work expected to be required for construction projects.
111 Section 5. Section 34-56-204 is enacted to read:
112 34-56-204. Records.
113 (1) Each contractor and subcontractor on a construction project shall:
114 (a) maintain an accurate record with respect to each worker employed by the contractor
115 or subcontractor for the construction project, including:
116 (i) the worker's name and occupation or classification; and
117 (ii) the actual wages paid to the worker; and
118 (b) make the record described in Subsection (1)(a) available for inspection at all
119 reasonable hours by the commission or the state entity.
120 (2) A record under Subsection (1) is a public record subject to Title 63G, Chapter 2,
121 Government Records Access and Management Act.
122 Section 6. Section 34-56-301 is enacted to read:
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124 34-56-301. Commission investigation of alleged violation -- Adjudicative
125 proceedings -- Civil penalty.
126 (1) The commission shall investigate a contractor or subcontractor's alleged violation
127 of a provision of this chapter if the commission:
128 (a) receives a complaint alleging a violation of this chapter; or
129 (b) has reason to believe that a violation of this chapter has occurred.
130 (2) If a commission investigation under Subsection (1) indicates a probable violation of
131 a provision of this chapter, the commission may conduct an adjudicative proceeding under
132 Title 34A, Chapter 1, Part 3, Adjudicative Proceedings, to determine whether a violation
133 occurred.
134 (3) The commission may impose a civil penalty on a contractor or subcontractor found
135 in an adjudicative proceeding to have violated a provision of this chapter in the amount of $500
136 for each violation.
137 Section 7. Section 34-56-302 is enacted to read:
138 34-56-302. Criminal penalty.
139 A person found by a court of competent jurisdiction to have willfully violated or failed
140 to comply with a provision of this chapter is guilty of a class B misdemeanor.
141 Section 8. Section 34-56-303 is enacted to read:
142 34-56-303. Civil action.
143 (1) A worker who is paid less than the prevailing wage for work performed on a
144 construction project may bring a civil action to recover the difference between the prevailing
145 wage and what the worker was actually paid.
146 (2) A court shall award attorney fees and costs to a worker who prevails in an action
147 brought under Subsection (1).
148 Section 9. Section 34-56-401 is enacted to read:
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150 34-56-401. Limits on applicability of chapter.
151 A requirement of this chapter does not apply:
152 (1) to the extent the requirement conflicts with a federal law, rule, or regulation; or
153 (2) to work performed by an inmate at a correctional facility.
154 Section 10. Section 63G-6a-602 is amended to read:
155 63G-6a-602. Contracts awarded by bidding.
156 (1) A procurement unit may award a contract for a procurement item by the bidding
157 process, in accordance with the rules of the rulemaking authority.
158 (2) Before awarding a contract under this part, a procurement unit shall comply with
159 Section 34-56-202.
160 (3) A contract awarded using the bidding process shall:
161 (a) be in compliance with the requirements of Title 34, Chapter 56, Prevailing Wages
162 on State Construction Projects; and
163 (b) require each contractor and subcontractor under the contract to comply with the
164 requirements of Title 34, Chapter 56, Prevailing Wages on State Construction Projects.
165 Section 11. Section 63G-6a-603 is amended to read:
166 63G-6a-603. Invitation for bids -- Requirements -- Publication.
167 (1) A procurement unit that intends to award a contract for a procurement item using
168 the bidding process shall issue an invitation for bids.
169 (2) A procurement unit shall include in an invitation for bids:
170 (a) a description of the procurement item that the procurement unit seeks;
171 (b) instructions for submitting a bid, including the deadline for submitting a bid;
172 (c) the objective criteria that the procurement unit will use to evaluate bids;
173 (d) information about the time and manner of opening bids; [
174 (e) terms and conditions that the procurement unit intends to include in a contract
175 resulting from the bidding process, including the requirement to comply with Title 34, Chapter
176 56, Prevailing Wages on State Construction Projects; and
177 (f) the prevailing wage, as defined in Section 34-56-101, in the locality where the
178 construction project will take place for each craft and type of work needed to execute the
179 contract.
180 (3) A procurement unit shall publish an invitation for bids in accordance with the
181 requirements of Section 63G-6a-112.