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Office of the Revisor of Statutes

HF 1443

1st Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:38 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act 1.2relating to employment; modifying requirements concerning contractors; 1.3modifying prevailing wage provisions; providing penalties;amending Minnesota 1.4Statutes 2006, sections 16C.03, subdivision 2; 161.315, subdivisions 1, 2; 1.5177.27, subdivisions 1, 4, 8, 9, 10; 177.42; 177.43; 177.44; 471.345, by adding a 1.6subdivision; proposing coding for new law in Minnesota Statutes, chapter 177. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8    Section 1. Minnesota Statutes 2006, section 16C.03, subdivision 2, is amended to read: 1.9    Subd. 2. Rulemaking authority. Subject to chapter 14, the commissioner may 1.10adopt rules, consistent with this chapter and chapter 16B, relating to the following topics: 1.11    (1) solicitations and responses to solicitations, bid security, vendor errors, opening 1.12of responses, award of contracts, tied bids, and award protest process; 1.13    (2) contract performance and failure to perform; 1.14    (3) authority to debar or suspend vendorsnew text begin from performing any work under a contract new text end 1.15new text begin as a prime contractor, subcontractor, agent, or material supplier on any contracts funded in new text end 1.16new text begin whole or in part with state fundsnew text end , and reinstatement of vendors; 1.17    (4) contract cancellation; 1.18    (5) procurement from rehabilitation facilities; and 1.19    (6) organizational conflicts of interest. 1.20    Sec. 2. Minnesota Statutes 2006, section 161.315, subdivision 1, is amended to read: 1.21    Subdivision 1. Legislative intent. Recognizing that the preservation of the integrity 1.22of the public contracting process of the Department of Transportation is vital to the 1.23development of a balanced and efficient transportation system and a matter of interest to 1.24the people of the state, the legislature hereby determines and declares that: 2.1    (1) the procedures of the department for bidding and awarding department contracts 2.2exist to secure the public benefits of free and open competition and to secure the quality of 2.3public works; 2.4    (2) the opportunity to be awarded department contracts or to supply goods or 2.5services to the department is a privilege, not a right; and 2.6    (3) the privilege of transacting business with the department or local road authority 2.7should be denied to persons convicted of a contract crimenew text begin , or that have committed a serious new text end 2.8new text begin contract violation, new text end in order to preserve the integrity of the public contracting process. 2.9    Sec. 3. Minnesota Statutes 2006, section 161.315, subdivision 2, is amended to read: 2.10    Subd. 2. Definitions. The terms used in this section have the meanings given them 2.11in this subdivision. 2.12    (a) "Affiliate" means a predecessor or successor of a person by merger, 2.13reorganization, or otherwise, who is, or that has as an officer or director an individual 2.14who is, a relative of the person or an individual over whose actions the person exercises 2.15substantial influence or control, or a group of entities so connected or associated that one 2.16entity controls or has the power to control each of the other entities. "Affiliate" includes 2.17the affiliate's principals. One person's ownership of a controlling interest in another entity 2.18or a pooling of equipment or income among entities is prima facie evidence that one 2.19entity is an affiliate of another. 2.20    (b) "Contract crime" means a violation of state or federal antitrust law, fraud, theft, 2.21embezzlement, bribery, forgery, misrepresentation, making false statements, falsification 2.22or destruction of records, new text begin collusion, new text end or other criminal offense in connection with obtaining, 2.23attempting to obtain, or performing a public or private contract or subcontractnew text begin , or other new text end 2.24new text begin offense indicating a lack of business integritynew text end . 2.25    (c) "Conviction" has the meaning given it in section 609.02, subdivision 5. 2.26    (d) "Debar" means to disqualify from receiving a contract or from serving as a 2.27subcontractor or material supplier as provided by Laws 1984, chapter 654, article 2, 2.28section 8. 2.29    (e) "Person" means a natural person or a business, corporation, association, 2.30partnership, sole proprietorship, or other entity formed to do business as a contractor, 2.31subcontractor, or material supplier and includes an affiliate of a person. 2.32    (f) "Pooling" means a combination of persons engaged in the same business or 2.33combined for the purpose of engaging in a particular business or commercial venture and 2.34who all contribute to a common fund or place their holdings of a given stock or other 2.35security in the hand and control of a managing member or committee of the combination. 3.1    (g) "Suspend" means to temporarily disqualify from receiving a contract or from 3.2serving as a subcontractor or material supplier as provided by Laws 1984, chapter 654, 3.3article 2, section 8. 3.4    (h) "Relative" means an individual related by consanguinity within the second 3.5degree as determined by the common law, a spouse, or an individual related to a spouse 3.6within the second degree as determined by the common law, and includes an individual in 3.7an adoptive relationship within the second degree as determined by the common law. 3.8    new text begin (i) "Serious contract violation" means failure without good cause to perform new text end 3.9new text begin according to the specifications, time limits, or any terms or conditions in a contract; a new text end 3.10new text begin record of failure to perform or unsatisfactory performance, according to the terms, of more new text end 3.11new text begin than one contract as measured by standard commercial practices, not caused by acts new text end 3.12new text begin beyond the control of the contractor; or any other cause the commissioner determines to new text end 3.13new text begin be serious and compelling including, but not limited to, threatening or abusive behavior, new text end 3.14new text begin collusion with other vendors to restrain competition, giving false information on a vendor's new text end 3.15new text begin registration application or response to a solicitation, or violating terms of a suspension.new text end 3.16    new text begin (j) "Governmental entity" means the federal government, the state of Minnesota, new text end 3.17new text begin or any of its departments, commissions, councils, agencies, political subdivisions, new text end 3.18new text begin municipalities, local government bodies, or an agent of any of those entities.new text end 3.19    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read: 3.20    Subdivision 1. Examination of records. The commissioner may enter during 3.21reasonable office hours or upon request and inspect the place of business or employment of 3.22any employer of employees working in the state, to examine and inspect books, registers, 3.23payrolls, and other records of any employer that in any way relate to wages, hours, and 3.24other conditions of employment of any employees. The commissioner may transcribe any 3.25or all of the books, registers, payrolls, and other records as the commissioner deems 3.26necessary or appropriate and may question the employees to ascertain compliance with 3.27sections 177.21 to new text begin 177.46new text end . The commissioner may investigate wage claims or 3.28complaints by an employee against an employer if the failure to pay a wage may violate 3.29Minnesota law or an order or rule of the department. 3.30    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read: 3.31    Subd. 4. Compliance orders. The commissioner may issue an order requiring an 3.32employer to comply with sections 177.21 to new text begin 177.46new text end , 181.02, 181.03, 181.031, 3.33181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, or with 3.34any rule promulgated under section 177.28. The department shall serve the order upon 4.1the employer or the employer's authorized representative in person or by certified mail 4.2at the employer's place of business. An employer who wishes to contest the order must 4.3file written notice of objection to the order with the commissioner within 15 calendar 4.4days after being served with the order. A contested case proceeding must then be held 4.5in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being 4.6served with the order, the employer fails to file a written notice of objection with the 4.7commissioner, the order becomes a final order of the commissioner. 4.8    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read: 4.9    Subd. 8. Court actions; suits brought by private parties. An employee may bring 4.10a civil action seeking redress for a violation or violations of sections 177.21 to 177.35new text begin new text end 4.11new text begin 177.46new text end directly to district court. An employer who pays an employee less than the wages 4.12and overtime compensation to which the employee is entitled under sections 177.21 to 4.13177.35 new text begin 177.46new text end is liable to the employee for the full amount of the wages, gratuities, and 4.14overtime compensation, less any amount the employer is able to establish was actually 4.15paid to the employee and for an additional equal amount as liquidated damages. In 4.16addition, in an action under this subdivision the employee may seek damages and other 4.17appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement 4.18between the employee and the employer to work for less than the applicable wage is not 4.19a defense to the action. 4.20    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read: 4.21    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may 4.22be filed in the district court of the county wherein a violation or violations of sections 4.23177.21 to are alleged to have been committed, where the respondent resides 4.24or has a principal place of business, or any other court of competent jurisdiction. The 4.25action may be brought by one or more employees. 4.26    Sec. 8. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read: 4.27    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8, 4.28the court shall order an employer who is found to have committed a violation or violations 4.29of sections 177.21 to to pay to the employee or employees reasonable costs, 4.30disbursements, witness fees, and attorney fees. 4.31    Sec. 9. Minnesota Statutes 2006, section 177.42, is amended to read: 4.32177.42 DEFINITIONS. 5.1    Subdivision 1. Scope. As used in sections 177.41 to the terms defined 5.2in this section have the meanings given them except where the context indicates otherwise. 5.3    Subd. 2. Project. "Project" means erection, construction, remodeling, or repairing 5.4of a public building or other public work financed in whole or part by state funds. 5.5    Subd. 3. Area. "Area" means the county or other locality from which labor for 5.6any project is normally secured. 5.7    Subd. 4. Prevailing hours of labor. "Prevailing hours of labor" means the hours 5.8of labor per day and per week worked within the area by a larger number of workers of 5.9the same class than are employed within the area for any other number of hours per day 5.10and per week. The prevailing hours of labor may not be more than eight hours per day 5.11or more than 40 hours per week. 5.12    Subd. 5. Hourly basic rate. "Hourly basic rate" means thenew text begin taxablenew text end hourly wage 5.13paid to any employee. 5.14    Subd. 6. Prevailing wage rate. "Prevailing wage rate" means the hourly basic rate 5.15of pay plus the contribution for health and welfare benefits, vacation benefits, pension 5.16benefits, and any other economic benefit new text begin considered by the commissioner to be a direct new text end 5.17new text begin benefit to the employee and new text end paid to the largest number of workers engaged in the same 5.18class of labor within the area and includes, for the purposes of section 177.44, rental 5.19rates for truck hire paid to those who own and operate the truck. The prevailing wage 5.20rate may not be less than a reasonable and living wagenew text begin , that must be at least two times new text end 5.21new text begin the established state minimum wage ratenew text end . 5.22    new text begin Subd. 7.new text end new text begin Laborer or mechanic.new text end new text begin "Laborer or mechanic" includes all workers new text end 5.23new text begin performing manual and physical work on the project for the time spent performing the new text end 5.24new text begin duties of classifications of labor.new text end 5.25    new text begin Subd. 8.new text end new text begin Contracting authority.new text end new text begin "Contracting authority" means the state of new text end 5.26new text begin Minnesota, a state agency, political subdivision of the state, commission, council, or any new text end 5.27new text begin other entity with authority to enter into public works projects, or an agent of any of those new text end 5.28new text begin entities, that enters into a contract for a project.new text end 5.29    new text begin Subd. 9.new text end new text begin Contractor.new text end new text begin "Contractor" means the individual, firm, corporation, or new text end 5.30new text begin other business entity entering into a contract with a contracting authority to complete a new text end 5.31new text begin project, either directly or through an authorized representative, and who undertakes the new text end 5.32new text begin prosecution of the work prescribed in the contract.new text end 5.33    new text begin Subd. 10.new text end new text begin Contract.new text end new text begin "Contract" means the written agreement between the new text end 5.34new text begin contracting authority and the contractor setting forth each party's rights and obligations, new text end 5.35new text begin including, but not limited to, the performance of the work, type of work, furnishing new text end 6.1new text begin of labor and materials, basis of payment, work specifications, and other requirements new text end 6.2new text begin contained in the project documents.new text end 6.3    new text begin Subd. 11.new text end new text begin Certified payroll.new text end new text begin "Certified payroll" is a form that contains:new text end 6.4    new text begin (1) Payroll form. A form that contains information on all laborers and mechanics new text end 6.5new text begin that performed work under the contract, including the following payroll information: new text end 6.6new text begin full name, address, Social Security number, each classification of labor worked, daily new text end 6.7new text begin and weekly hours worked on the project, rates of pay, overtime hours and rates, taxes new text end 6.8new text begin withheld and other deductions, the project gross amount and net amounts earned, the total new text end 6.9new text begin gross amount and net amounts earned, in addition, the hourly costs of, and the provider new text end 6.10new text begin names and contact information of, the company's fringe benefits program, along with new text end 6.11new text begin project identification information, and any additional information determined by the new text end 6.12new text begin commissioner to be necessary to ensure compliance with this section.new text end 6.13    new text begin (2) Certification form. A form that contains certification language approved by the new text end 6.14new text begin commissioner and a signature block. Certified payroll must be submitted to a contracting new text end 6.15new text begin authority on forms approved by the commissioner.new text end 6.16    Sec. 10. Minnesota Statutes 2006, section 177.43, is amended to read: 6.17177.43 CONTRACTS FOR STATE PROJECTS; PENALTY. 6.18    Subdivision 1. Hours of labor. Any contract which provides for a project must 6.19state that: 6.20    (1) no laborer or mechanic employed directly on the project work site by the 6.21contractor or any subcontractor, agent, or other person doing or contracting to do all 6.22or a part of the work of the project, is permitted or required to work more hours than 6.23the prevailing hours of labor unless paid for all hours in excess of the prevailing hours 6.24at a rate of at least 1-1/2 times the new text begin taxable new text end hourly basic rate of paynew text begin paid to the laborer or new text end 6.25new text begin mechanic for the work performed under a contractnew text end ; and 6.26    (2) a laborer or mechanic may new text begin must be paid unconditionally and not less often than new text end 6.27new text begin on a weekly basis and shall new text end not be paid a lesser rate of wages than the prevailing wage rate 6.28in the same or most similar trade or occupation in the area.new text begin Actual costs for providing new text end 6.29new text begin bona fide fringe benefit programs as defined in subdivision 8 to a laborer or mechanic new text end 6.30new text begin performing work under the contract may be deducted from the total prevailing wage rate new text end 6.31new text begin to obtain the taxable hourly basic rate to be paid to the laborer or mechanic; andnew text end 6.32    new text begin (3) the contractor, subcontractor, or agent shall not exceed their company new text end 6.33new text begin apprenticeship ratio established by a certified or registered program on any project subject new text end 6.34new text begin to this section.new text end 7.1    Subd. 2. Exceptions. This section does not apply to wage rates and hours of 7.2employment of laborers or mechanics who process or manufacture materials or products 7.3or to the delivery of materials or products by or for commercial establishments which have 7.4a fixed place of business from which they regularly supply processed or manufactured 7.5materials or products. This section applies to laborers or mechanics who deliver mineral 7.6aggregate such as sand, gravel, or stone which is incorporated into the work under the 7.7contract by depositing the material substantially in place, directly or through spreaders, 7.8from the transporting vehicle. 7.9    Subd. 3. Contract requirements. The contract must specifically state the 7.10prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay.new text begin The new text end 7.11new text begin contracting authority shall incorporate into its proposals and contracts the appropriate new text end 7.12new text begin wage determinations for the contract along with contract language provided by the new text end 7.13new text begin commissioner of labor and industry to notify the contractor of the applicability of new text end 7.14new text begin sections 177.41 to 177.46. Failure to incorporate the determination or provided contract new text end 7.15new text begin language into the contracts shall make the contracting authority liable for making new text end 7.16new text begin whole the contractor for any increases in the wages paid, including employment taxes new text end 7.17new text begin and reasonable administrative costs based on the increase in wages, to the laborers or new text end 7.18new text begin mechanics working on the project. The contracting authority is authorized to incorporate new text end 7.19new text begin into the bid documents for each project a compliance monitoring surcharge provision. The new text end 7.20new text begin surcharge shall be a percentage of the engineers estimate of the project. The surcharge new text end 7.21new text begin percentage shall be either an amount set annually by the commissioner for all projects after new text end 7.22new text begin investigation to determine the expected costs of monitoring compliance, or an amount new text end 7.23new text begin requested by the contracting authority and authorized by the commissioner, and will be a new text end 7.24new text begin percentage sufficient to pay the estimated cost to the contracting authority of monitoring new text end 7.25new text begin compliance with sections 177.41 to 177.46. The surcharge shall be incorporated into the new text end 7.26new text begin contract for the project and paid by the contractor to the contracting authority within new text end 7.27new text begin two weeks of the payment by the contracting authority of the mobilization cost for the new text end 7.28new text begin project as specified in the successful bid. The contracting authority shall use this surcharge new text end 7.29new text begin exclusively to defray costs of monitoring compliance with sections 177.41 to 177.46.new text end 7.30    new text begin These hours, rates, and classifications, along with contracting authority name, new text end 7.31new text begin project engineer or agency contact person, telephone number, and project identification new text end 7.32new text begin numbers, together with a summary of provisions of subdivision 5 and a summary of new text end 7.33new text begin provisions under section 177.46, shall be and remain posted directly on the project site new text end 7.34new text begin by the contractor in at least one conspicuous and accessible location acceptable to the new text end 7.35new text begin contracting authority for the information of all employees working on the project. The new text end 8.1new text begin contracting authority shall ensure the contractor keeps the required information on the new text end 8.2new text begin project from the start of work until all work is completed on the project.new text end 8.3    new text begin All contracting authorities shall require weekly submittal of certified payrolls from new text end 8.4new text begin each contractor, subcontractor, or agent working on the project. The contractor shall new text end 8.5new text begin submit certified payrolls from the contractor's own workforce along with payrolls from new text end 8.6new text begin all subcontractors and agents working on the project. The contracting authority shall new text end 8.7new text begin maintain the payrolls under the contracting agency's normal record retention schedules for new text end 8.8new text begin a minimum of two years past the closing of the contract.new text end 8.9    new text begin Each contracting authority shall redact the Social Security number and address of new text end 8.10new text begin each laborer or mechanic from each certified payroll before any person other than an new text end 8.11new text begin employee of the contracting authority or the department is allowed to review the certified new text end 8.12new text begin payroll.new text end 8.13    new text begin Certified payrolls shall be submitted within one week after the week ending date of new text end 8.14new text begin the week in which the work was performed. Each subcontractor or agent shall furnish to new text end 8.15new text begin the contractor weekly certified payrolls to demonstrate compliance with this section. The new text end 8.16new text begin contractor may interview all laborers or mechanics on the project and review subcontractor new text end 8.17new text begin or agents' payroll information to ensure compliance with this section.new text end 8.18    new text begin The contractor shall incorporate into all subcontract agreements, purchase orders, new text end 8.19new text begin or other written agreements that provide for work covered by this section, the contract new text end 8.20new text begin wage determinations and the contract language provided by the commissioner contained new text end 8.21new text begin in the contract. The contractor shall also ensure that all secondary subcontract agreements, new text end 8.22new text begin purchase orders, or other written agreements that provide for work covered by this section new text end 8.23new text begin contain the same language. The contractor shall provide a written certified confirmation new text end 8.24new text begin on a form provided by the contracting authority that all subcontractors and agents have new text end 8.25new text begin received the required contract wage determinations and contract language. The form shall new text end 8.26new text begin be provided to the contracting authority prior to any subcontractor or agent working on the new text end 8.27new text begin project. If the contractor does not provide the information required to the subcontractor new text end 8.28new text begin or agents, or the form to the contracting authority, the contractor shall be the sole entity new text end 8.29new text begin responsible for any contracting authority or commissioner's assessment.new text end 8.30    Subd. 4. Determination by commissioner. The prevailing wage rates, prevailing 8.31hours of labor, and hourly basic rates of pay for all trades and occupations required in any 8.32project new text begin under each contract new text end must be ascertained new text begin obtained new text end before the state new text begin any contracting new text end 8.33new text begin authority new text end asks for bids. new text begin The wage determinations must also include future hours and rates new text end 8.34new text begin when they can be determined for classes of laborers or mechanics in an area. The wage new text end 8.35new text begin determination must specifically state the effective dates of future hours and rates when new text end 8.36new text begin they are certified. new text end The commissioner of labor and industry shall investigate as necessary 9.1to ascertain the informationnew text begin and shall develop and maintain classification definitions. new text end 9.2new text begin The contractor and contracting authority shall apply the classification definitions to the new text end 9.3new text begin laborers or mechanics performing work under the contract. Missing classifications, new text end 9.4new text begin classification disputes, and disputes arising from interpretations of this section shall be new text end 9.5new text begin resolved by the commissioner of labor and industrynew text end . The commissioner shall keep the 9.6information posted on the project in at least one conspicuous place for the information of 9.7the employees working on the project. A person aggrieved by a final determination of the 9.8commissioner may petition the commissioner for reconsideration of findingsnew text begin within 20 new text end 9.9new text begin days of the publication or decisionnew text end . A person aggrieved by a decision of the commissioner 9.10after reconsideration may, within 20 days after the decision, petition the commissioner 9.11for a public hearing in the manner of a contested case under sections 14.57 to 14.61. new text begin If new text end 9.12new text begin the commissioner finds that a change in the certified prevailing hours of labor, prevailing new text end 9.13new text begin wage rate, and the hourly basic rate of pay for a class of laborers or mechanics in any area new text end 9.14new text begin is required, the commissioner may at any time certify that change, and the certified change new text end 9.15new text begin will be effective on a project advertised for bid on or after the date of certification.new text end 9.16    Subd. 5. Penaltynew text begin Penalties: criminal, civil, and debarmentnew text end . new text begin (a) new text end It is a 9.17misdemeanor new text begin violation new text end for an officer or employee of the state to new text begin or contracting authority new text end 9.18new text begin to knowingly new text end execute a contract for a project without complying with this section, or for 9.19new text begin the wage determination or contract language provided by the commissioner of labor new text end 9.20new text begin and industry, or knowingly close a contract on a project with violations or assessments. new text end 9.21new text begin A willful violation may be subject to the penalties assigned under section 609.43. new text end A 9.22contractor, subcontractor, or agent to pay any laborer, worker, or mechanic employed 9.23directly on the project site a lesser wage for work done under the contract than the 9.24prevailing wage rate as stated in the contract. This misdemeanor is punishable by a fine 9.25of new text begin who violates this section is guilty of a gross misdemeanor for the first conviction of new text end 9.26new text begin a criminal offense under this section and shall be fined for the violation new text end not more than 9.27$700new text begin $3,000new text end , or imprisonment new text begin imprisoned new text end for not more than 90 days new text begin one yearnew text end , or both. 9.28Each agent or subcontractor shall furnish to the contractor evidence of compliance with 9.29this section. 9.30     Each day a violation of this section continues is a separate offensenew text begin violationnew text end .new text begin It will new text end 9.31new text begin be considered a felony for the second conviction of a contractor, subcontractor, or agent new text end 9.32new text begin for violations of this section, or for the conviction of a total unpaid back wage assessment new text end 9.33new text begin by the commissioner of labor and industry against a violating contractor, subcontractor, or new text end 9.34new text begin agent in excess of $100,000, and shall be fined for the violation not more that $10,000, or new text end 9.35new text begin imprisoned for not more than five years, or both. Each day that the violation continues is a new text end 9.36new text begin separate violation.new text end 10.1    new text begin Whoever induces a job applicant or employee on any project subject to this section new text end 10.2new text begin to give up or forego any part of the wages to which the job applicant or employee is new text end 10.3new text begin entitled under the contract governing the project by threat not to employ, by threat of new text end 10.4new text begin dismissal from employment, or by any other means, or knowingly alters official company new text end 10.5new text begin employment or time records to falsely report the laborer's or mechanic's pay is guilty of a new text end 10.6new text begin gross misdemeanor and may by fined for the violation not exceeding $3,000 or imprisoned new text end 10.7new text begin for not more than one year, or both. Each day that the violation continues is a separate new text end 10.8new text begin violation.new text end 10.9    new text begin Any employee under this section who knowingly permits the contractor or new text end 10.10new text begin subcontractor to pay less than the prevailing wage rate set forth in the contract, or who new text end 10.11new text begin gives up any part of the compensation to which entitled under the contract, is guilty of a new text end 10.12new text begin misdemeanor and may be fined no more than $40 or imprisoned not more than 30 days or new text end 10.13new text begin both. Each day any violation of this paragraph continues is a separate violation.new text end 10.14    new text begin In addition to or instead of criminal prosecution under this subdivision, the new text end 10.15new text begin commissioner may engage in any civil enforcement actions authorized by this section new text end 10.16new text begin or section 177.45.new text end 10.17    new text begin (b) Penalties to be assessed by the contracting authorities. The contracting authority new text end 10.18new text begin may deduct from what is owed the contractor on the project for civil penalties and new text end 10.19new text begin assessments as defined by this section and provisions of section 177.43.new text end 10.20    new text begin (1) After written notification by the contracting authority, a civil penalty of $100 new text end 10.21new text begin per day shall be assessed against the contractor for each day work is performed on the new text end 10.22new text begin project and the poster board is not placed or maintained on the project work site at a new text end 10.23new text begin location acceptable to the contracting authority.new text end 10.24    new text begin (2) After written notification by the contracting authority, a civil penalty of $100 per new text end 10.25new text begin week against the contractor for each week the contractor's certified payrolls or any of the new text end 10.26new text begin individual subcontractor or agent-certified payrolls are not submitted.new text end 10.27    new text begin (3) After written notification by the contracting authority, a civil penalty of $50 per new text end 10.28new text begin week shall be assessed against the contractor for each week that the subcontractor or agent new text end 10.29new text begin forms as defined in section 177.43, subdivision 3, are not submitted.new text end 10.30    new text begin (c) A contractor, subcontractor, or agent that is convicted criminally or held liable new text end 10.31new text begin civilly under this section shall be deemed to have a lack of business integrity and shall be new text end 10.32new text begin debarred by the commissioner from working on any contract funded in whole or in part new text end 10.33new text begin with state funds as a contractor, subcontractor, agent, or material supplier for a period of at new text end 10.34new text begin least one year and not to exceed three years. The commissioner shall maintain and publish new text end 10.35new text begin a current list of the debarred entities. If any contracting authority has debarred an entity new text end 10.36new text begin for prevailing wage violations, the contracting authority shall report the debarment to the new text end 11.1new text begin commissioner, who will then include the contractor on the list of debarred entities. All new text end 11.2new text begin contracting authorities may not contract with a debarred entity or allow a debarred entity new text end 11.3new text begin to work on any project as a subcontractor, material supplier, or in any other capacity.new text end 11.4    Subd. 6. Examination of recordsnew text begin and investigation by the departmentnew text end . The 11.5Department of Labor and Industry shall enforce this section. The department may demand, 11.6and the contractor and subcontractor shall furnish to the department, copies of any or all 11.7payrolls. new text begin All the contracting authorities that award a contract funded in whole or in part new text end 11.8new text begin with state funds shall notify the commissioner in writing of the project location, contractor, new text end 11.9new text begin and any other project information deemed necessary by the commissioner. All contracting new text end 11.10new text begin authorities shall notify the commissioner in writing when they finalize the project contract. new text end 11.11new text begin The department shall employ at least five investigators to perform on-site project reviews new text end 11.12new text begin and to receive and investigate complaints of violations of this section, and to conduct new text end 11.13new text begin training and outreach to contractors and contracting authorities. These investigators shall new text end 11.14new text begin be in addition to any investigators employed to conduct prevailing wage surveys. The new text end 11.15new text begin department may demand, and the contractor or subcontractor or agent shall furnish to new text end 11.16new text begin the department, copies of any or all payroll documentation deemed necessary by the new text end 11.17new text begin department. The department may also demand, and the contracting authority shall furnish new text end 11.18new text begin to the department, any or all project information. new text end The department may examine all records 11.19relating to wages paid new text begin or fringe benefits provided to new text end laborers or mechanics on work to 11.20which new text begin to ensure compliance with new text end sections 177.41 to applynew text begin 177.46new text end . 11.21    new text begin The commissioner shall determine the amount of back wages owed to the affected new text end 11.22new text begin laborer or mechanic, shall assess a 100 percent penalty based on the amount of back new text end 11.23new text begin wages owed to be paid to the affected laborer or mechanic, and an additional civil penalty new text end 11.24new text begin equal to 100 percent of the back wages owed to be paid to the department and deposited new text end 11.25new text begin into a dedicated fund for future prevailing wage enforcement efforts and assess the total new text end 11.26new text begin amount of back wages owed and penalties against the violating contractor, subcontractor, new text end 11.27new text begin or agent accordingly. If it is determined that a violation has occurred, the commissioner new text end 11.28new text begin may investigate all other open or closed contracts requiring payment of prevailing wages new text end 11.29new text begin on which that contractor, subcontractor, or agent performed any work within the previous new text end 11.30new text begin two years. The department shall notify both the contractor and the contracting authority of new text end 11.31new text begin its findings and assessment. If the violating contractor, subcontractor, or agent does not new text end 11.32new text begin comply with the department's assessment within 20 days of receipt of written notification, new text end 11.33new text begin the department shall notify the contracting authority to withhold from any payment due to new text end 11.34new text begin the contractor a reasonable amount to ensure compliance with the department's assessment. new text end 11.35new text begin The contracting authority shall require adherence to the department's assessments by the new text end 11.36new text begin contractor. The contracting authority shall report back to the commissioner when the new text end 12.1new text begin contractor complies with the commissioner's findings and assessment. After 60 days of new text end 12.2new text begin written notification, the commissioner shall deem any unpaid department assessment as an new text end 12.3new text begin unresolved violation of this section and handle as required under subdivision 6a.new text end 12.4    new text begin If a contractor is deemed to be insolvent by the commissioner, the contracting new text end 12.5new text begin authority shall deduct the department's assessed amount from funds owed the contractor or new text end 12.6new text begin assess the bonding company for department's assessment.new text end 12.7    new text begin Subd. 6a.new text end new text begin Prevailing wage rate violations.new text end new text begin (a) All contracting authorities shall new text end 12.8new text begin monitor compliance with sections 177.41 to 177.46 on all contracts funded in whole or in new text end 12.9new text begin part with state funds. The contracting authority shall interview employees working on new text end 12.10new text begin the project during working hours. The contracting authority shall randomly review the new text end 12.11new text begin weekly certified payrolls, subcontract agreements, project documentation, and employee new text end 12.12new text begin interviews to determine if the contractor has demonstrated compliance with this section. new text end 12.13new text begin The contracting authority has authority to request all records relating to the hours of work, new text end 12.14new text begin wages paid, or cost of providing fringe benefits, to laborers and mechanics performing new text end 12.15new text begin work under a contract to determine compliance with sections 177.41 to 177.46. The new text end 12.16new text begin contracting authority shall hold confidential any written or verbal complaint of violation of new text end 12.17new text begin this section filed by a laborer or mechanic or filed on behalf of a laborer or mechanic. The new text end 12.18new text begin contracting authority shall notify the contractor in writing of any violations of this section. new text end 12.19new text begin The contracting authority shall report any unresolved violations of this section to the new text end 12.20new text begin commissioner of labor and industry after 20 days of a written notification to the contractor new text end 12.21new text begin to resolve the violations, or the contracting authority has knowledge that it is the violating new text end 12.22new text begin contractor's, subcontractor's, or agent's second offense of a similar nature. The contracting new text end 12.23new text begin authority shall not close a contract with any unresolved violations of this section.new text end 12.24    new text begin The commissioner of labor and industry is required to report any unresolved new text end 12.25new text begin violations within 60 days of written notification to the contractor, any willful violations of new text end 12.26new text begin this section, or second offense violations of a similar nature, to both the county attorney new text end 12.27new text begin where the alleged violation occurred and to the attorney general for criminal prosecution.new text end 12.28    new text begin (b) A county attorney shall notify the commissioner of labor and industry and the new text end 12.29new text begin attorney general upon commencing an action for a violation of this section. The county new text end 12.30new text begin attorney shall also give notice to the commissioner and the attorney general of the outcome new text end 12.31new text begin of the action, including detailed reasons for the dismissal or settlement of an action new text end 12.32new text begin pursuant to a plea agreement that awards less than the maximum penalties for a violation new text end 12.33new text begin of this section. The commissioner shall notify the contracting authority.new text end 12.34    new text begin (c) If the attorney general does not receive notice of the commencement of an action new text end 12.35new text begin by a county attorney, as required by paragraph (b), within six months of receiving a report new text end 12.36new text begin under paragraph (a) from the commissioner of labor and industry, the attorney general shall new text end 13.1new text begin pursue the suspected violation, unless the attorney general and commissioner agree that new text end 13.2new text begin civil enforcement will be sufficient to effectuate the policies of sections 177.41 to 177.46.new text end 13.3    Subd. 7. Applicability. This section does not apply to a contract, or work under 13.4a contract, under which: 13.5    (1) the estimated total cost of completing the project is less than $2,500 and only one 13.6trade or occupation is required to complete it, or 13.7    (2) the estimated total cost of completing the project is less than $25,000 and more 13.8than one trade or occupation is required to complete it. 13.9    new text begin Subd. 8.new text end new text begin Fringe benefit programs.new text end new text begin The prevailing wage rate shall be paid for all new text end 13.10new text begin hours worked on the project. The contractor, subcontractor, or agent may take credit new text end 13.11new text begin toward the prevailing wage rate for the recovery of the costs of providing bona fide new text end 13.12new text begin fringe benefits that have been approved by the commissioner prior to working on a new text end 13.13new text begin contract subject to this section and deemed a direct benefit to the laborer or mechanic. new text end 13.14new text begin The contractor, subcontractor, or agent shall not take credit for the company's incurred new text end 13.15new text begin administrative costs of providing a bona fide fringe benefits program or the costs of legally new text end 13.16new text begin required plans or insurance including but not limited to workers' compensation and new text end 13.17new text begin unemployment insurance, as well as program or plan costs deemed by the commissioner new text end 13.18new text begin to be incurred for the benefit of the contractor, subcontractor, or agent.new text end 13.19    new text begin The contributions irrevocably made by the employer to a trustee or third party new text end 13.20new text begin pursuant to bona fide fringe benefit fund, plan, or program may be deducted from the new text end 13.21new text begin prevailing wage rate, including the reasonable anticipated costs made to a legally new text end 13.22new text begin enforceable financially responsible employer plan or program. All programs shall be new text end 13.23new text begin communicated in writing to the employee prior to working on the project.new text end 13.24    new text begin Contributions to plans or programs must be made on a regular basis, not less often new text end 13.25new text begin than quarterly. The costs of providing the benefit plan or program must be annualized. new text end 13.26new text begin Contributions made to a plan or program for government work cannot fund the plan for new text end 13.27new text begin periods of nongovernment work.new text end 13.28    new text begin The laborer or mechanic must have an opportunity to receive the benefit; credit will new text end 13.29new text begin not be given costs deducted from laborers or mechanics that are not eligible to receive new text end 13.30new text begin the benefit. A laborer or mechanic cannot pay the costs of providing a fringe benefit new text end 13.31new text begin for another laborer or mechanic.new text end 13.32    new text begin Bonuses are not considered a fringe benefit as they are paid in the future and the new text end 13.33new text begin laborer or mechanic must be paid unconditionally weekly the full amount owed without new text end 13.34new text begin any rebate. Transportation, board, and lodging are not considered a fringe benefit as new text end 13.35new text begin it is a properly reimbursable expense of the employer and incurred for the employer's new text end 14.1new text begin benefit. Company vehicles are not considered a fringe benefit as it is to the advantage of new text end 14.2new text begin the contractor.new text end 14.3    new text begin The remainder of the prevailing wage rate after the costs for bona fide fringe benefits new text end 14.4new text begin have been deducted shall be the taxable hourly wage rate paid to the employee for regular new text end 14.5new text begin hours worked and used as the basis for calculating overtime rates of pay. The amount new text end 14.6new text begin deducted for fringe benefit costs on a project may not reduce the taxable hourly wage rate new text end 14.7new text begin below the laborer's or mechanic's regular rate of pay. A contractor may not reduce the rate new text end 14.8new text begin of pay of the laborer or mechanic on nonprevailing wage work as a result of the laborer or new text end 14.9new text begin mechanic having performed work for which payment of prevailing wage is required.new text end 14.10    new text begin Nothing in this section shall supersede provisions of any collective bargaining new text end 14.11new text begin agreement or the provisions of the Employment Retirement Income Security Act.new text end 14.12    new text begin Subd. 9.new text end new text begin Keeping records, penalty.new text end new text begin Every employer subject to sections 177.41 to new text end 14.13new text begin 177.46 must make and keep a record of:new text end 14.14    new text begin (1) the name, address, Social Security number, and classification of each laborer new text end 14.15new text begin or mechanic;new text end 14.16    new text begin (2) the hourly rate of pay, and the amount paid each pay period on both public and new text end 14.17new text begin private work to each laborer or mechanic;new text end 14.18    new text begin (3) the hours and classifications worked each day and each work week on both new text end 14.19new text begin public and private work by the laborer or mechanic;new text end 14.20    new text begin (4) fringe benefit program information, costs, and disbursements made on behalf of a new text end 14.21new text begin laborer or mechanic; andnew text end 14.22    new text begin (5) other information the commissioner finds necessary and appropriate to enforce new text end 14.23new text begin sections 177.41 to 177.46.new text end 14.24    new text begin The records shall be kept in or near the employer's main business location for three new text end 14.25new text begin years after the contract is closed on the project worked. The commissioner may fine new text end 14.26new text begin a contractor, subcontractor, or agent up to $1,000 for each failure to maintain records new text end 14.27new text begin as required by this section. This penalty is in addition to any penalties provided under new text end 14.28new text begin section 177.43 or 177.46.new text end 14.29    Sec. 11. Minnesota Statutes 2006, section 177.44, is amended to read: 14.30177.44 HIGHWAY new text begin TRANSPORTATION new text end CONTRACTS; HOURS OF LABOR; 14.31WAGE RATES; PENALTY. 14.32    Subdivision 1. Hours, wages permitted. A laborer or mechanic employed by a 14.33contractor, subcontractor, agent, or other person doing or contracting to do all or part 14.34of the work under a contract based on bids as provided in Minnesota Statutes 1971, 14.35section 161.32, to which the state is a party,new text begin or for contracts for which the Department new text end 15.1new text begin of Transportation has a delegation of authority to be the contracting authority, or for new text end 15.2new text begin contracts that the Department of Transportation oversees under its authority to oversee new text end 15.3new text begin constitutionally mandated state funding to other local governmental bodies, or units of new text end 15.4new text begin government, or political subdivisions that are the contracting authority,new text end for the construction 15.5or maintenance of a highwaynew text begin or other public work projectsnew text end , may not be permitted or 15.6required to work longer than the prevailing hours of labor unless the laborer or mechanic 15.7is paid for all hours in excess of the prevailing hours at a rate of at least 1-1/2 times thenew text begin new text end 15.8new text begin taxablenew text end hourly basic rate of pay ofnew text begin paid tonew text end the laborer or mechanicnew text begin for the work performed new text end 15.9new text begin on the projectnew text end . The laborer or mechanic must be paid at leastnew text begin unconditionally and not new text end 15.10new text begin less often than on a weekly basis and shall not be paid a lesser rate of wages thannew text end the 15.11prevailing wage rate in the same or most similar trade or occupation in the area.new text begin The costs new text end 15.12new text begin of providing fringe benefit programs as defined in section 177.43, subdivision 8, to the new text end 15.13new text begin laborers or mechanics working on the project may be deducted from the total prevailing new text end 15.14new text begin wage rate. Contractors, subcontractors, agents, or other persons performing work under new text end 15.15new text begin the contract must maintain records as defined in section 177.43, subdivision 9.new text end 15.16    new text begin The contractor, subcontractor, or agent shall not exceed their company apprenticeship new text end 15.17new text begin ratio established by a certified or registered program on any project subject to this section.new text end 15.18    Subd. 2. Applicabilitynew text begin Exceptionsnew text end . This section does not apply to wage rates and 15.19hours of employment of laborers or mechanics engaged in the processing or manufacture 15.20of materials or products, or to the delivery of materials or products by or for commercial 15.21establishments which have a fixed place of business from which they regularly supply 15.22the processed or manufactured materials or products. This section applies to laborers 15.23or mechanics who deliver mineral aggregate such as sand, gravel, or stone which is 15.24incorporated into the work under the contract by depositing the material substantially in 15.25place, directly or through spreaders, from the transporting vehicle. 15.26    Subd. 3. Investigations by Department of Labor and Industry. The Department 15.27of Labor and Industry shall conduct investigations and hold public hearings necessary 15.28to define classes of laborers andnew text begin ornew text end mechanics and to determine the hours of labor and 15.29wage rates prevailing in all areas of the state for all classes of labor andnew text begin laborers ornew text end 15.30mechanics commonly employed in highwaynew text begin , heavy, or buildingnew text end construction work, so as 15.31to determine prevailing hours of labor, prevailing wage rates, and hourly basic rates of 15.32pay.new text begin If a contract contains multiple types of construction work, the contract must contain new text end 15.33new text begin all appropriate wage determinations and the laborer or mechanic must be paid at a rate new text end 15.34new text begin for all hours worked under the type of work performed on the project. The contractors, new text end 15.35new text begin subcontractors, and agents and Department of Transportation and other contracting new text end 15.36new text begin authorities must apply the classification definitions certified by the commissioner of labor new text end 16.1new text begin and industry to the laborers or mechanics working on the project. Missing classifications, new text end 16.2new text begin classification disputes, and other questions arising from the interpretations of this section new text end 16.3new text begin must be resolved by the commissioner of labor and industry as specified in section 177.43, new text end 16.4new text begin subdivision 4.new text end 16.5    The Departmentnew text begin commissioner of labor and industrynew text end shall determine the nature of 16.6the equipment furnished by truck drivers who own and operate trucks on contract work to 16.7determine minimum rates for the equipment, and shall establish by rule minimum rates 16.8to be computed into the prevailing wage rate.new text begin The contracting agency must incorporate new text end 16.9new text begin the minimum rates into its contracts for bid. The contractor, subcontractor, or agent must new text end 16.10new text begin pay the minimum rate established by the commissioner of labor and industry directly new text end 16.11new text begin to the person who owns and operates the truck without any deductions or rebates. The new text end 16.12new text begin contracting authority must receive evidence from the contractor, subcontractor, or agent new text end 16.13new text begin that the proper minimum rate has been paid to the person who owns and operates the truck new text end 16.14new text begin in a form approved by the Department of Transportation.new text end 16.15    Subd. 4. Certification of hours and rate. The commissioner of labor and industry 16.16shall at least once a year certify the prevailing hours of labor, the prevailing wage rate, 16.17and the hourly basic rate of pay for all classes of laborers andnew text begin ornew text end mechanics referred to 16.18in subdivision 3 in each area. The certification must also include future hours and rates 16.19when they can be determined for classes of laborers andnew text begin ornew text end mechanics in an area. The 16.20certification must specifically state the effective dates of future hours and rates when they 16.21are certified. If a construction project extends into more than one area there shall be only 16.22one standard of hours of labor and wage rates for the entire projectnew text begin , all applicable area new text end 16.23new text begin wage determinations must be contained in the contract and the hours of labor and wage new text end 16.24new text begin rates paid the laborer or mechanic must be specific to the areas in which the work is new text end 16.25new text begin performednew text end . A person aggrieved by a final determination of the commissioner may petition 16.26the commissioner for reconsideration of findingsnew text begin within 20 days of the publication or new text end 16.27new text begin decisionnew text end . A person aggrieved by a decision of the commissioner after reconsideration may 16.28within 20 days after the decision petition the commissioner for a public hearing as in a 16.29contested case under sections 14.57 to 14.61. If the commissioner finds that a change in 16.30the certified prevailing hours of labor, prevailing wage rate, and the hourly basic rate of 16.31pay for a class of laborers or mechanics in any area is required, the commissioner may at 16.32any time certify that changenew text begin and the certified change is effective on a project advertised new text end 16.33new text begin for bid on or after the date of certificationnew text end . 16.34    Subd. 5. Hours and rates to be posted. The prevailing hours of labor, the 16.35prevailing wage rates, the hourly basic rates of pay, and classifications for all labor as 16.36certified by the commissioner must be specifically stated in the proposals and contracts 17.1for each highway construction contract to which the state is a party.new text begin transportation new text end 17.2new text begin contract which is funded in whole or in part with state funds. In addition to the wage new text end 17.3new text begin determinations issued by the Department of Labor and Industry, the contracting authority new text end 17.4new text begin must incorporate into its proposals and contracts the contract language provided by the new text end 17.5new text begin commissioner of transportation to notify the contractor of the application of sections new text end 17.6new text begin 177.41 to 177.46. Failure to incorporate the proper determination into the contracts makes new text end 17.7new text begin the contracting authority liable for making the contractor whole for the increases in the new text end 17.8new text begin wages paid, including employment taxes and reasonable administrative costs based on the new text end 17.9new text begin increased wages, to the laborers or mechanics working on the project. The contracting new text end 17.10new text begin authority is authorized to incorporate into the bid documents for each project a compliance new text end 17.11new text begin monitoring surcharge provision. The surcharge shall be a percentage of the engineer's new text end 17.12new text begin estimate of the project. The surcharge percentage shall be either an amount set annually new text end 17.13new text begin by the commissioner for all projects after investigation to determine the expected costs new text end 17.14new text begin of monitoring compliance, or an amount requested by the contracting authority and new text end 17.15new text begin authorized by the commissioner, and will be a percentage sufficient, to pay the estimated new text end 17.16new text begin cost to the contracting authority of monitoring compliance with sections 177.41 to 177.46. new text end 17.17new text begin The surcharge shall be incorporated into the contract for the project and paid by the new text end 17.18new text begin contractor to the contracting authority within two weeks of the payment by the contracting new text end 17.19new text begin authority of the mobilization cost for the project as specified in the successful bid. The new text end 17.20new text begin contracting authority shall use this surcharge exclusively to defray costs of monitoring new text end 17.21new text begin compliance with sections 177.41 to 177.46.new text end 17.22    These hours, rates, and classifications, together with thenew text begin name of the project engineer new text end 17.23new text begin or agency contact person, telephone number, project identification numbers, and a new text end 17.24new text begin summary of thenew text end provisions of subdivision 6, new text begin and a summary of section 177.46, new text end must be 17.25kept postednew text begin directlynew text end on the project by the employernew text begin contractornew text end in at least one conspicuous 17.26placenew text begin and accessible locationnew text end for the information of employeesnew text begin all laborers or mechanicsnew text end 17.27working on the project.new text begin The contracting authority must ensure the contractor keeps the new text end 17.28new text begin required information on the project from the start of work until all work is completed new text end 17.29new text begin on the project.new text end 17.30    Subd. 6. Penaltiesnew text begin Penalties: criminal, civil, and debarmentnew text end . new text begin (a) It is a violation new text end 17.31new text begin for an officer or employee of the state or contracting authority to knowingly execute new text end 17.32new text begin a contract for a project without the wage determination or contract language provided new text end 17.33new text begin by the commissioner of transportation on the application of this section, or knowingly new text end 17.34new text begin close a contract with violations of this section or assessments by the commissioner of new text end 17.35new text begin transportation. A violation may be subject to the penalties under section 609.43.new text end 18.1    A contractor, subcontractor, or agent who violates this section is guilty of anew text begin grossnew text end 18.2misdemeanornew text begin for the first conviction of a criminal offense under this sectionnew text end and maynew text begin new text end 18.3new text begin mustnew text end be finednew text begin for each violationnew text end not more than $300new text begin $3,000new text end or imprisoned not more than 18.490 daysnew text begin one yearnew text end or bothnew text begin , and required to reimburse the county attorney or attorney new text end 18.5new text begin general for the cost of prosecutionnew text end . Each day that the violation continues is a separate 18.6offense.new text begin It is a felony for the second criminal conviction of a contractor, subcontractor, new text end 18.7new text begin or agent for violations of this section, or for a criminal conviction of a total unpaid back new text end 18.8new text begin wage assessment by the commissioner of transportation against the violating contractor, new text end 18.9new text begin subcontractor, or agent in excess of $100,000, and must be fined for the violation not more new text end 18.10new text begin than $10,000, or imprisoned no more than five years, or both, and required to reimburse new text end 18.11new text begin the county attorney or the attorney general for the cost of prosecution. Each day that the new text end 18.12new text begin violation continues is a separate offense.new text end 18.13    Whoever induces a job applicant or employee on any project subject to this section 18.14to give up or forego any part of the wages to which entitled under the contract governing 18.15the project by threat not to employ, by threat of dismissal from employment, or by any 18.16other meansnew text begin , or knowingly alters official company employment or time records to falsely new text end 18.17new text begin report the employee's pay,new text end may be fined not exceeding $1,000new text begin $3,000new text end or imprisoned not 18.18more than one yearnew text begin ,new text end or both.new text begin Each day that the violation continues is a separate offense.new text end 18.19    Any employee under this section who knowingly permits the contractor ornew text begin ,new text end 18.20subcontractornew text begin , or agentnew text end to pay less than the prevailing wage rate set forth in the contract, 18.21or who gives up any part of the compensation to which entitled under the contract, may 18.22be fined not exceeding $40 or imprisoned not more than 30 daysnew text begin ,new text end or both. Each day any 18.23violation of this paragraph continues is a separate offense. 18.24    new text begin In addition to or instead of criminal prosecution under this subdivision, the new text end 18.25new text begin commissioner of transportation may engage in any civil enforcement actions authorized new text end 18.26new text begin by this section or section 177.45.new text end 18.27    new text begin (b) Penalties to be assessed by the contracting authorities. The contracting authority new text end 18.28new text begin may deduct from what is owed the contractor on the project for civil penalties and new text end 18.29new text begin assessments as defined by this section and provisions of section 177.44.new text end 18.30    new text begin (1) After written notification by the contracting authority, a civil penalty of $100 new text end 18.31new text begin per day shall be assessed against the contractor for each day work is performed on the new text end 18.32new text begin project and the poster board is not placed or maintained on the project work site at a new text end 18.33new text begin location acceptable to the contracting authority.new text end 18.34    new text begin (2) After written notification by the contracting authority, a civil penalty of $100 per new text end 18.35new text begin week against the contractor for each week the contractor's certified payrolls or any of the new text end 18.36new text begin individual subcontractor or agent-certified payrolls are not submitted.new text end 19.1    new text begin (3) After written notification by the contracting authority, a civil penalty of $50 per new text end 19.2new text begin week shall be assessed against the contractor for each week that the subcontractor or agent new text end 19.3new text begin forms as defined in section 177.44, subdivision 7, are not submitted.new text end 19.4    new text begin (4) After written notification by the contracting authority, a civil penalty of $100 new text end 19.5new text begin may be assessed against the contractor for each week the approved trucking form as new text end 19.6new text begin described in section 177.44, subdivision 3, is not submitted.new text end 19.7    new text begin (c) A contractor, subcontractor, or agent that is convicted criminally or held liable new text end 19.8new text begin civilly under this section must be debarred by the commissioner of transportation under new text end 19.9new text begin section 161.315 from working on any contracts funded in whole or in part with state funds new text end 19.10new text begin as a contractor, subcontractor, agent, or material supplier for a period of at least one year new text end 19.11new text begin and not more than three years. The commissioner of transportation shall report a debarred new text end 19.12new text begin entity to the commissioner of labor and industry for publication. If any contracting new text end 19.13new text begin authority has debarred an entity for prevailing wage violations, the contracting authority new text end 19.14new text begin must report the debarment to the commissioner of labor and industry. All contracting new text end 19.15new text begin authorities are required to review the list of debarred entities and may not contact with a new text end 19.16new text begin debarred entity or allow a debarred entity to work on any project as a subcontractor, new text end 19.17new text begin material supplier, or in any other capacity.new text end 19.18    Subd. 7. Department of Transportation to enforce. The Department of 19.19Transportation shall require adherence to this section. The commissioner of transportation 19.20may demand and every contractor and subcontractor shall furnish copies of payrolls.new text begin all new text end 19.21new text begin sections relating to sections 177.41 to 177.46 on active project contracts for which the new text end 19.22new text begin Department of Transportation is the contracting authority, or on active contracts that new text end 19.23new text begin the commissioner of transportation has been delegated authority to be the contracting new text end 19.24new text begin authority, or on active contracts that the commissioner of transportation has been delegated new text end 19.25new text begin authority to be the contracting authority, or on active contracts that the commissioner new text end 19.26new text begin of transportation has authority to oversee the distribution of constitutional mandated new text end 19.27new text begin state funding to other local governmental bodies, or units of government, or political new text end 19.28new text begin subdivisions who act as the contracting authority. The Department of Transportation new text end 19.29new text begin shall maintain a staff of at least five investigators to ensure compliance on the projects. new text end 19.30new text begin The commissioner of transportation or contracting authority shall hold confidential any new text end 19.31new text begin complaint filed by a laborer or mechanic or filed on behalf of a laborer or mechanic.new text end 19.32    new text begin The contracting authority must require weekly submittal of certified payrolls from new text end 19.33new text begin every contractor and subcontractor or agent performing work under the contract. The new text end 19.34new text begin contractor must submit certified payrolls for the contractor's own workforce along with new text end 19.35new text begin payrolls from all subcontractors and agents working on the project. The contracting new text end 19.36new text begin authority must maintain the payrolls under the contracting agency's normal record new text end 20.1new text begin retention schedules for a minimum of two years past the closing of the contract. Each new text end 20.2new text begin contracting authority must redact the Social Security number and address of each laborer new text end 20.3new text begin or mechanic from each certified payroll before any person other than an employee of the new text end 20.4new text begin contracting authority, the Department of Transportation, or the Department of Labor and new text end 20.5new text begin Industry is allowed to review the certified payroll. Certified payrolls must be submitted new text end 20.6new text begin within one week after the week ending date of the week in which the work was performed. new text end 20.7new text begin Each subcontractor or agent must furnish to the contractor weekly certified payrolls that new text end 20.8new text begin demonstrate compliance with this section. The commissioner of transportation may new text end 20.9new text begin deduct from what is owed the contractor on the project or after written notification, any new text end 20.10new text begin other state-funded projects under the commissioner of transportation's authority that the new text end 20.11new text begin contractor is working on, any penalties or back wage assessments. The contracting new text end 20.12new text begin authority may deduct from what is owed the contractor on the project for civil penalties new text end 20.13new text begin and assessments for violations on the project. The contracting authority shall interview new text end 20.14new text begin laborers or mechanics on the project site and shall randomly review the weekly certified new text end 20.15new text begin payrolls, subcontract agreements, project documentation, and employee interviews if the new text end 20.16new text begin contractor has demonstrated compliance with this section. The contracting authority new text end 20.17new text begin has authority to request all records relating to the hours of work, wages paid, or cost of new text end 20.18new text begin providing fringe benefits, to laborers and mechanics performing work under a contract new text end 20.19new text begin to determine compliance with sections 177.41 to 177.46. In addition, the contractor new text end 20.20new text begin may interview all laborers or mechanics on the project and review subcontractor or new text end 20.21new text begin agents' payroll information to ensure compliance with this section. If a contracting new text end 20.22new text begin authority is unable to achieve or determine compliance on a project, the commissioner of new text end 20.23new text begin transportation must be notified in writing of the problems or violations.new text end 20.24    new text begin The contractor must incorporate into all subcontract agreements, purchase orders, or new text end 20.25new text begin other written agreements which provide for work covered by this section the contract wage new text end 20.26new text begin determination and the contract language provided by the commissioner of transportation new text end 20.27new text begin contained in the contract. The contractor must also ensure that all secondary subcontract new text end 20.28new text begin agreements, purchase orders, or other written agreements which provide for work covered new text end 20.29new text begin by this section contain the same language. The contractor must provide a written certified new text end 20.30new text begin confirmation on a form provided by the contracting authority that all subcontractors and new text end 20.31new text begin agents have received the required contract wage determinations and contract language. new text end 20.32new text begin The form must be provided to the contracting authority prior to any subcontractor or agent new text end 20.33new text begin working on the project. If the contractor does not provide the information required to the new text end 20.34new text begin subcontractor or agents, or the form to the contracting authority, the contractor must be the new text end 20.35new text begin sole entity responsible for any contracting authority or commissioner's assessment.new text end 21.1    The commissioner of transportation may examine allnew text begin business, employment, new text end 21.2new text begin and timenew text end recordsnew text begin and other documentsnew text end relating to hours of work and the wages paid 21.3laborers andnew text begin ornew text end mechanics on work to whichnew text begin considered necessary by the commissioner new text end 21.4new text begin of transportation to ensure compliance withnew text end this section applies. Upon request of the 21.5Department of Transportation or upon complaint of alleged violation, the county attorney 21.6of the county in which the work is located shall investigate and prosecute violations in a 21.7court of competent jurisdiction. 21.8    new text begin If the commissioner of transportation determines that a violation has occurred, the new text end 21.9new text begin commissioner of transportation shall determine the amount of back wages owed to the new text end 21.10new text begin affected laborer or mechanic, plus a civil penalty equal to 100 percent of the back wages new text end 21.11new text begin owed, to be paid to the affected laborer or mechanic, and an additional civil penalty equal new text end 21.12new text begin to 100 percent of the back wages owed to be paid to the commissioner of transportation new text end 21.13new text begin and to be deposited into a dedicated fund to be used by the Department of Transportation new text end 21.14new text begin for future prevailing wage enforcement, educational, and outreach programs and assess new text end 21.15new text begin the total amount of back wages owed and penalties against the violating contractor, new text end 21.16new text begin subcontractor, or agent accordingly. If there is a determination that a violation has new text end 21.17new text begin occurred, the commissioner of transportation may investigate all other open and closed new text end 21.18new text begin contracts, requiring payment of prevailing wages, on which that contractor, subcontractor, new text end 21.19new text begin or agent performed any work within the previous two years.new text end 21.20    new text begin (1) For investigations on projects where the contracting authority is the Department new text end 21.21new text begin of Transportation, the project engineer and contractor must be notified in writing of the new text end 21.22new text begin violations and determination of assessments. If the violating contractor, subcontractor, or new text end 21.23new text begin agent does not comply with the commissioner of transportation's assessment within 20 new text end 21.24new text begin days of written notification, the commissioner of transportation must cause to be withheld new text end 21.25new text begin from any money owed the contractor by the Department of Transportation a reasonable new text end 21.26new text begin amount to ensure compliance with the assessments.new text end 21.27    new text begin (2) For investigations where the contracting authority is a local governmental body new text end 21.28new text begin or political subdivision of the state, the commissioner of transportation shall notify in new text end 21.29new text begin writing the contracting authority and the contractor of the violations and determination of new text end 21.30new text begin assessments and the contracting authority shall withhold a reasonable amount to ensure new text end 21.31new text begin compliance with the commissioner of transportation's determination. The contracting new text end 21.32new text begin authority must require adherence to the commissioner of transportation's assessment.new text end 21.33    new text begin After 60 days of written notification, the commissioner of transportation shall new text end 21.34new text begin consider the unpaid assessment as an unresolved violation of this section. The new text end 21.35new text begin commissioner of transportation shall report any unresolved violations, willful violations, new text end 21.36new text begin or second offense violations of a similar nature, of this section to both the county attorney new text end 22.1new text begin where the alleged violation occurred and to the attorney general. A county attorney shall new text end 22.2new text begin notify the commissioner of transportation and the attorney general upon commencing an new text end 22.3new text begin action for a violation of this section. The county attorney shall also give notice to the new text end 22.4new text begin commissioner of transportation and the attorney general of the outcome of the action, new text end 22.5new text begin including detailed reasons for the dismissal or settlement of an action pursuant to a plea new text end 22.6new text begin agreement that awards less than the maximum penalties for a violation of this section. The new text end 22.7new text begin commissioner of transportation shall notify the contracting authority.new text end 22.8    new text begin If the attorney general does not receive notice of the commencement of an action new text end 22.9new text begin by a county attorney, as required by this subdivision, within six months of receiving new text end 22.10new text begin an unresolved violation report from the commissioner of transportation, the attorney new text end 22.11new text begin general shall pursue the suspected violation in a court of competent jurisdiction, unless the new text end 22.12new text begin attorney general and commissioner of transportation agree that civil enforcement will be new text end 22.13new text begin sufficient to effectuate the policies of sections 177.41 to 177.46.new text end 22.14    Sec. 12. new text begin [177.45] INVESTIGATIONS AND SUBPOENAS.new text end 22.15    new text begin Subdivision 1.new text end new text begin General powers.new text end new text begin For the purposes of this section, "commissioner" new text end 22.16new text begin means the commissioner of labor and industry with respect to duties and responsibilities new text end 22.17new text begin entrusted to the commissioner of labor and industry by sections 177.41 to 177.46, and new text end 22.18new text begin the commissioner of transportation with respect to duties and responsibilities entrusted to new text end 22.19new text begin the commissioner of transportation by sections 177.41 to 177.46. In connection with the new text end 22.20new text begin duties and responsibilities entrusted to each commissioner pursuant to sections 177.41 to new text end 22.21new text begin 177.46, each commissioner may:new text end 22.22    new text begin (1) conduct investigations necessary to determine whether any person has violated new text end 22.23new text begin or is about to violate this section;new text end 22.24    new text begin (2) require or permit any person to file a statement in writing, under oath, or new text end 22.25new text begin otherwise as the commissioner determines, as to all the facts and circumstances concerning new text end 22.26new text begin the matter being investigated;new text end 22.27    new text begin (3) hold hearings, upon reasonable notice, in respect to any matter arising out of the new text end 22.28new text begin duties and responsibilities entrusted to the commissioner;new text end 22.29    new text begin (4) conduct investigations and hold hearings for the purpose of compiling new text end 22.30new text begin information related to the duties and responsibilities entrusted to the commissioner;new text end 22.31    new text begin (5) examine the books, accounts, records, and files of every contractor, subcontractor, new text end 22.32new text begin or agent and of every person who is engaged in work under a contract subject to sections new text end 22.33new text begin 177.41 to 177.46; the commissioner or a designated representative must have free access new text end 22.34new text begin during normal business hours to the offices and places of business of the person, and to new text end 23.1new text begin all books, accounts, papers, records, files, safes, and vaults maintained in the place of new text end 23.2new text begin business; andnew text end 23.3    new text begin (6) publish information that is contained in any order issued by the commissioner.new text end 23.4    new text begin Subd. 2.new text end new text begin Response to department requests.new text end new text begin A contractor, subcontractor, new text end 23.5new text begin agent, or other person performing work under a contract subject to the jurisdiction of new text end 23.6new text begin the commissioner must comply with requests for information, documents, or other new text end 23.7new text begin requests from the department within the time specified in the request, or, if no time is new text end 23.8new text begin specified, within 30 days of the mailing of the request by the department. A contractor, new text end 23.9new text begin subcontractor, agent, or other person subject to the jurisdiction of the commissioner must new text end 23.10new text begin appear before the commissioner or the commissioner's representative when requested to new text end 23.11new text begin do so and bring all documents or materials that the commissioner or the commissioner's new text end 23.12new text begin representative has requested.new text end 23.13    new text begin Subd. 3.new text end new text begin Power to compel production of evidence.new text end new text begin For the purpose of any new text end 23.14new text begin investigation, hearing, proceeding, or inquiry related to the duties and responsibilities new text end 23.15new text begin entrusted to the commissioner, the commissioner or a designated representative may new text end 23.16new text begin administer oaths and affirmations, subpoena witnesses, compel attendance, take evidence, new text end 23.17new text begin and require the production of books, papers, correspondence, memoranda, agreements, new text end 23.18new text begin or other documents or records that the commissioner considers relevant or material new text end 23.19new text begin to the inquiry.new text end 23.20    new text begin Subd. 4.new text end new text begin Court orders.new text end new text begin In case of a refusal to appear or a refusal to obey a subpoena new text end 23.21new text begin issued to any person, the district court, upon application by the commissioner, may issue new text end 23.22new text begin to any person an order directing that person to appear before the commissioner or the new text end 23.23new text begin officer designated by the commissioner and produce documentary evidence if so ordered new text end 23.24new text begin or give evidence relating to the matter under investigation or in question. Failure to obey new text end 23.25new text begin the order of the court may be punished by the court as a contempt of court.new text end 23.26    new text begin Subd. 5.new text end new text begin Scope of privilege.new text end new text begin No person is excused from attending and testifying new text end 23.27new text begin or from producing any document or record before the commissioner or from obedience new text end 23.28new text begin to the subpoena of the commissioner or any officer designated by the commissioner or new text end 23.29new text begin in a proceeding instituted by the commissioner, on the ground that the testimony or new text end 23.30new text begin evidence required may tend to incriminate that person or subject that person to a penalty new text end 23.31new text begin of forfeiture. No person may be prosecuted or subjected to a penalty or forfeiture for or new text end 23.32new text begin on account of a transaction, matter, or thing concerning which the person is compelled, new text end 23.33new text begin after claiming the privilege against self-incrimination, to testify or produce evidence, new text end 23.34new text begin documentary or otherwise, except that the individual is not exempt from prosecution and new text end 23.35new text begin punishment for perjury or contempt committed in testifying.new text end 24.1    new text begin Subd. 6.new text end new text begin Compliance orders.new text end new text begin The commissioner may issue an order requiring a new text end 24.2new text begin contractor, subcontractor, or agent to comply with an assessment issued by an investigator new text end 24.3new text begin pursuant to section 177.43 or 177.44. The department shall serve the order upon the new text end 24.4new text begin contractor, subcontractor, or agent, or the party's authorized representative, in person new text end 24.5new text begin or by certified mail at the contractor's, subcontractor's, or agent's place of business. A new text end 24.6new text begin contractor, subcontractor, or agent who wishes to contest the order must file written notice new text end 24.7new text begin of objection to the order with the commissioner within 15 calendar days after being served new text end 24.8new text begin with the order. A contested case proceeding must then be held according to sections 14.57 new text end 24.9new text begin to 14.69. If, within 15 calendar days after being served with the order, the contractor, new text end 24.10new text begin subcontractor, or agent fails to file a written notice of objection with the commissioner, the new text end 24.11new text begin order becomes a final order of the commissioner.new text end 24.12    new text begin Subd. 7.new text end new text begin Contractor, subcontractor, or agent liability.new text end new text begin If the commissioner issues new text end 24.13new text begin a compliance order under subdivision 6, the commissioner shall order the contractor, new text end 24.14new text begin subcontractor, or agent to cease and desist from engaging in the violative practice and new text end 24.15new text begin to take such affirmative steps that in the judgment of the commissioner will effectuate new text end 24.16new text begin the purposes of the section violated. The commissioner shall order the contractor, new text end 24.17new text begin subcontractor, or agent to pay the assessed amounts to the department and the department new text end 24.18new text begin shall distribute to the affected laborers or mechanics the portions of the assessment new text end 24.19new text begin designated for the laborer or mechanic. Any contractor, subcontractor, or agent that is new text end 24.20new text begin found by the commissioner to have repeatedly or willfully violated a section or sections new text end 24.21new text begin identified in subdivision 6 shall be subject to a civil penalty of up to $1,000 for each new text end 24.22new text begin violation for each laborer or mechanic. In determining the amount of a civil penalty new text end 24.23new text begin under this subdivision, the appropriateness of the penalty to the size of the contractor's, new text end 24.24new text begin subcontractor's, or agent's business and the gravity of the violation shall be considered. new text end 24.25new text begin In addition, the commissioner may order the contractor, subcontractor, or agent to new text end 24.26new text begin reimburse the department and the attorney general for all appropriate litigation and hearing new text end 24.27new text begin costs expended in preparation for and in conducting the contested case proceeding, new text end 24.28new text begin unless payment of costs would impose extreme financial hardship on the contractor, new text end 24.29new text begin subcontractor, or agent. If the contractor, subcontractor, or agent is able to establish new text end 24.30new text begin extreme financial hardship, then the commissioner may order the contractor, subcontractor, new text end 24.31new text begin or agent to pay a percentage of the total costs that will not cause extreme financial new text end 24.32new text begin hardship. Costs include but are not limited to the costs of services rendered by the attorney new text end 24.33new text begin general, attorneys for the department, private attorneys if engaged by the department, new text end 24.34new text begin administrative law judges, court reporters, expert witnesses, and the cost of transcripts. new text end 24.35new text begin Interest shall accrue on and be added to the unpaid balance of a commissioner's order from new text end 24.36new text begin the date the order is signed by the commissioner until it is paid, at an annual rate provided new text end 25.1new text begin in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow new text end 25.2new text begin accounts for purposes of distributing damages.new text end 25.3    new text begin Subd. 8.new text end new text begin Civil actions.new text end new text begin The commissioner may bring an action in the district court new text end 25.4new text begin where a contractor, subcontractor, or agent resides or where the commissioner maintains new text end 25.5new text begin an office to enforce or require compliance with orders issued under subdivision 6 or 7.new text end 25.6    new text begin Subd. 9.new text end new text begin Legal actions; injunctions.new text end new text begin Whenever it appears to the commissioner that new text end 25.7new text begin a person has engaged or is about to engage in any act or practice constituting a violation of new text end 25.8new text begin this section or order related to the duties and responsibilities entrusted to the commissioner, new text end 25.9new text begin the commissioner may bring an action in the name of the state in Ramsey County District new text end 25.10new text begin Court or the district court of an appropriate county to enjoin the acts or practices and to new text end 25.11new text begin enforce compliance, or the commissioner may refer the matter to the attorney general or new text end 25.12new text begin the county attorney of the appropriate county. A permanent injunction or other appropriate new text end 25.13new text begin relief must be granted based solely upon a showing that the person has engaged or is about new text end 25.14new text begin to engage in an act or practice constituting a violation of a law, rule, or order related to the new text end 25.15new text begin duties and responsibilities entrusted to the commissioner. The terms of this subdivision new text end 25.16new text begin govern an action brought under this subdivision, including an action against a person who, new text end 25.17new text begin for whatever reason, claims that the subject law, rule, or order does not apply to the person.new text end 25.18    new text begin Subd. 10.new text end new text begin Powers additional.new text end new text begin The powers contained in sections 177.41 to 177.46 new text end 25.19new text begin are in addition to all other powers of the commissioner of labor and industry, commissioner new text end 25.20new text begin of transportation, and any contracting authority.new text end 25.21    Sec. 13. new text begin [177.46] COURT ACTIONS; PRIVATE PARTY CIVIL ACTIONS.new text end 25.22    new text begin Subdivision 1.new text end new text begin Civil action; damages.new text end new text begin A laborer or mechanic may bring a civil new text end 25.23new text begin action seeking redress for violations of sections 177.41 to 177.46 directly to district court. new text end 25.24new text begin A contractor, subcontractor, or agent who is found to have violated sections 177.41 to new text end 25.25new text begin 177.46 is liable to the aggrieved party for all unpaid wages. A contractor, subcontractor, new text end 25.26new text begin or agent who is found to have violated sections 177.41 to 177.46 is also liable for new text end 25.27new text begin compensatory damages, interest on the unpaid wages at the statutory rate, liquidated new text end 25.28new text begin damages equal to three times the wages owed, punitive damages for repeated or willful new text end 25.29new text begin violations, and any other appropriate relief including, but not limited to, injunctive relief. new text end 25.30new text begin The contracting authority must provide the laborer or mechanic bringing the action any new text end 25.31new text begin and all requested project records, including certified payrolls with Social Security numbers new text end 25.32new text begin and employee addresses redacted, after written notice, and that has been deemed to be a new text end 25.33new text begin public record, at a reasonable cost.new text end 25.34    new text begin Subd. 2.new text end new text begin District court jurisdiction.new text end new text begin An action brought under subdivision 1 may be new text end 25.35new text begin filed in the district court of the county where a violation is alleged to have been committed, new text end 26.1new text begin where the respondent resides or has a principal place of business, where the contracting new text end 26.2new text begin authority has its main office, or any other court of competent jurisdiction.new text end 26.3    new text begin Subd. 3.new text end new text begin Persons who may sue.new text end new text begin An action authorized by this section may be new text end 26.4new text begin maintained against any contractor, subcontractor, or agent by any one or more laborers new text end 26.5new text begin or mechanics for and on behalf of themselves and other laborers or mechanics similarly new text end 26.6new text begin situated. No laborer or mechanic must be a party plaintiff to any action authorized by this new text end 26.7new text begin section unless the laborer or mechanic gives consent in writing to become a party and the new text end 26.8new text begin consent is filed in the court in which the action is brought.new text end 26.9    new text begin Subd. 4.new text end new text begin Discovery allowed.new text end new text begin Upon request, a contractor, subcontractor, or agent new text end 26.10new text begin against whom an action authorized by this section is brought, must provide to any plaintiff new text end 26.11new text begin records kept in the normal course of its business that show all laborers or mechanics new text end 26.12new text begin working on the project including the last known address, hours worked, classifications new text end 26.13new text begin worked, and wages and benefits paid for the work performed, with Social Security new text end 26.14new text begin numbers redacted from those records. The records must be provided without court new text end 26.15new text begin order. If a contractor, subcontractor, or agent refuses to provide this information without new text end 26.16new text begin court order, the court must include in the order a provision requiring the contractor, new text end 26.17new text begin subcontractor, or agent to pay the reasonable attorney fees and costs incurred by the new text end 26.18new text begin laborer or mechanic in bringing a motion for the court order.new text end 26.19    new text begin Subd. 5.new text end new text begin Attorney fees and costs.new text end new text begin In an action brought under subdivision 1, the new text end 26.20new text begin court shall order any entity who is found to have committed a violation to pay to the new text end 26.21new text begin aggrieved party reasonable costs, disbursements, witness fees, and attorney fees.new text end 26.22    new text begin Subd. 6.new text end new text begin Civil penalty.new text end new text begin In an action brought under subdivision 1, the court shall new text end 26.23new text begin order any entity who is found to have committed a violation to pay a civil penalty equal new text end 26.24new text begin to 100 percent of the total damages awarded to all plaintiffs in the action, including the new text end 26.25new text begin fees and costs awarded under subdivision 5, to the commissioner of labor and industry new text end 26.26new text begin or the commissioner of transportation whichever agency is responsible for enforcement new text end 26.27new text begin with respect to the project to be deposited into a dedicated fund to be used in future new text end 26.28new text begin enforcement efforts of sections 177.43 and 177.44.new text end 26.29    Sec. 14. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision 26.30to read: 26.31    new text begin Subd. 20.new text end new text begin Debarred entities.new text end new text begin Notwithstanding any other provision of this section, new text end 26.32new text begin municipalities must comply with sections 177.43 and 177.44 with respect to awarding any new text end 26.33new text begin contracts subject to sections 177.41 to 177.46.new text end