<a id="pl.1.3"></a><var>1.3</var>modifying prevailing wage provisions; providing penalties;amending Minnesota <br/>
<a id="pl.1.4"></a><var>1.4</var>Statutes 2006, sections 16C.03, subdivision 2; 161.315, subdivisions 1, 2; <br/>
<a id="pl.1.5"></a><var>1.5</var>177.27, subdivisions 1, 4, 8, 9, 10; 177.42; 177.43; 177.44; 471.345, by adding a <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivision; proposing coding for new law in Minnesota Statutes, chapter 177.<br/>
<a id="pl.1.7"></a><var>1.7</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.8"></a><var>1.8</var>    Section 1. Minnesota Statutes 2006, section 16C.03, subdivision 2, is amended to read:<br/>
<a id="pl.1.9"></a><var>1.9</var>    Subd. 2. <b>Rulemaking authority.</b> Subject to chapter 14, the commissioner may <br/>
<a id="pl.1.10"></a><var>1.10</var>adopt rules, consistent with this chapter and chapter 16B, relating to the following topics:<br/>
<a id="pl.1.11"></a><var>1.11</var>    (1) solicitations and responses to solicitations, bid security, vendor errors, opening <br/>
<a id="pl.1.12"></a><var>1.12</var>of responses, award of contracts, tied bids, and award protest process;<br/>
<a id="pl.1.13"></a><var>1.13</var>    (2) contract performance and failure to perform;<br/>
<a id="pl.1.14"></a><var>1.14</var>    (3) authority to debar or suspend vendors from performing any work under a contract <br/>
<a id="pl.1.15"></a><var>1.15</var>as a prime contractor, subcontractor, agent, or material supplier on any contracts funded in <br/>
<a id="pl.1.16"></a><var>1.16</var>whole or in part with state funds, and reinstatement of vendors;<br/>
<a id="pl.1.17"></a><var>1.17</var>    (4) contract cancellation;<br/>
<a id="pl.1.18"></a><var>1.18</var>    (5) procurement from rehabilitation facilities; and<br/>
<a id="pl.1.19"></a><var>1.19</var>    (6) organizational conflicts of interest.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.20"></a><var>1.20</var>    Sec. 2. Minnesota Statutes 2006, section 161.315, subdivision 1, is amended to read:<br/>
<a id="pl.1.21"></a><var>1.21</var>    Subdivision 1. <b>Legislative intent.</b> Recognizing that the preservation of the integrity <br/>
<a id="pl.1.22"></a><var>1.22</var>of the public contracting process of the Department of Transportation is vital to the <br/>
<a id="pl.1.23"></a><var>1.23</var>development of a balanced and efficient transportation system and a matter of interest to <br/>
<a id="pl.1.24"></a><var>1.24</var>the people of the state, the legislature hereby determines and declares that:<br/>
<a id="pl.2.1"></a><var>2.1</var>    (1) the procedures of the department for bidding and awarding department contracts <br/>
<a id="pl.2.2"></a><var>2.2</var>exist to secure the public benefits of free and open competition and to secure the quality of <br/>
<a id="pl.2.3"></a><var>2.3</var>public works;<br/>
<a id="pl.2.4"></a><var>2.4</var>    (2) the opportunity to be awarded department contracts or to supply goods or <br/>
<a id="pl.2.5"></a><var>2.5</var>services to the department is a privilege, not a right; and<br/>
<a id="pl.2.6"></a><var>2.6</var>    (3) the privilege of transacting business with the department or local road authority <br/>
<a id="pl.2.7"></a><var>2.7</var>should be denied to persons convicted of a contract crime, or that have committed a serious <br/>
<a id="pl.2.8"></a><var>2.8</var>contract violation,  in order to preserve the integrity of the public contracting process.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.9"></a><var>2.9</var>    Sec. 3. Minnesota Statutes 2006, section 161.315, subdivision 2, is amended to read:<br/>
<a id="pl.2.10"></a><var>2.10</var>    Subd. 2. <b>Definitions.</b> The terms used in this section have the meanings given them <br/>
<a id="pl.2.11"></a><var>2.11</var>in this subdivision.<br/>
<a id="pl.2.12"></a><var>2.12</var>    (a) "Affiliate" means a predecessor or successor of a person by merger, <br/>
<a id="pl.2.13"></a><var>2.13</var>reorganization, or otherwise, who is, or that has as an officer or director an individual <br/>
<a id="pl.2.14"></a><var>2.14</var>who is, a relative of the person or an individual over whose actions the person exercises <br/>
<a id="pl.2.15"></a><var>2.15</var>substantial influence or control, or a group of entities so connected or associated that one <br/>
<a id="pl.2.16"></a><var>2.16</var>entity controls or has the power to control each of the other entities. "Affiliate" includes <br/>
<a id="pl.2.17"></a><var>2.17</var>the affiliate's principals. One person's ownership of a controlling interest in another entity <br/>
<a id="pl.2.18"></a><var>2.18</var>or a pooling of equipment or income among entities is prima facie evidence that one <br/>
<a id="pl.2.19"></a><var>2.19</var>entity is an affiliate of another.<br/>
<a id="pl.2.20"></a><var>2.20</var>    (b) "Contract crime" means a violation of state or federal antitrust law, fraud, theft, <br/>
<a id="pl.2.21"></a><var>2.21</var>embezzlement, bribery, forgery, misrepresentation, making false statements, falsification <br/>
<a id="pl.2.22"></a><var>2.22</var>or destruction of records, collusion, or other criminal offense in connection with obtaining, <br/>
<a id="pl.2.23"></a><var>2.23</var>attempting to obtain, or performing a public or private contract or subcontract, or other <br/>
<a id="pl.2.24"></a><var>2.24</var>offense indicating a lack of business integrity.<br/>
<a id="pl.2.25"></a><var>2.25</var>    (c) "Conviction" has the meaning given it in section 
         <statute_ref>609.02, subdivision 5</statute_ref>. <br/>
<a id="pl.2.26"></a><var>2.26</var>    (d) "Debar" means to disqualify from receiving a contract or from serving as a <br/>
<a id="pl.2.27"></a><var>2.27</var>subcontractor or material supplier as provided by Laws 1984, chapter 654, article 2, <br/>
<a id="pl.2.28"></a><var>2.28</var>section 8.<br/>
<a id="pl.2.29"></a><var>2.29</var>    (e) "Person" means a natural person or a business, corporation, association, <br/>
<a id="pl.2.30"></a><var>2.30</var>partnership, sole proprietorship, or other entity formed to do business as a contractor, <br/>
<a id="pl.2.31"></a><var>2.31</var>subcontractor, or material supplier and includes an affiliate of a person.<br/>
<a id="pl.2.32"></a><var>2.32</var>    (f) "Pooling" means a combination of persons engaged in the same business or <br/>
<a id="pl.2.33"></a><var>2.33</var>combined for the purpose of engaging in a particular business or commercial venture and <br/>
<a id="pl.2.34"></a><var>2.34</var>who all contribute to a common fund or place their holdings of a given stock or other <br/>
<a id="pl.2.35"></a><var>2.35</var>security in the hand and control of a managing member or committee of the combination.<br/>
<a id="pl.3.1"></a><var>3.1</var>    (g) "Suspend" means to temporarily disqualify from receiving a contract or from <br/>
<a id="pl.3.2"></a><var>3.2</var>serving as a subcontractor or material supplier as provided by Laws 1984, chapter 654, <br/>
<a id="pl.3.3"></a><var>3.3</var>article 2, section 8.<br/>
<a id="pl.3.4"></a><var>3.4</var>    (h) "Relative" means an individual related by consanguinity within the second <br/>
<a id="pl.3.5"></a><var>3.5</var>degree as determined by the common law, a spouse, or an individual related to a spouse <br/>
<a id="pl.3.6"></a><var>3.6</var>within the second degree as determined by the common law, and includes an individual in <br/>
<a id="pl.3.7"></a><var>3.7</var>an adoptive relationship within the second degree as determined by the common law.<br/>
<a id="pl.3.8"></a><var>3.8</var>    (i) "Serious contract violation" means failure without good cause to perform <br/>
<a id="pl.3.9"></a><var>3.9</var>according to the specifications, time limits, or any terms or conditions in a contract; a <br/>
<a id="pl.3.10"></a><var>3.10</var>record of failure to perform or unsatisfactory performance, according to the terms, of more <br/>
<a id="pl.3.11"></a><var>3.11</var>than one contract as measured by standard commercial practices, not caused by acts <br/>
<a id="pl.3.12"></a><var>3.12</var>beyond the control of the contractor; or any other cause the commissioner determines to <br/>
<a id="pl.3.13"></a><var>3.13</var>be serious and compelling including, but not limited to, threatening or abusive behavior, <br/>
<a id="pl.3.14"></a><var>3.14</var>collusion with other vendors to restrain competition, giving false information on a vendor's <br/>
<a id="pl.3.15"></a><var>3.15</var>registration application or response to a solicitation, or violating terms of a suspension.<br/>
<a id="pl.3.16"></a><var>3.16</var>    (j) "Governmental entity" means the federal government, the state of Minnesota, <br/>
<a id="pl.3.17"></a><var>3.17</var>or any of its departments, commissions, councils, agencies, political subdivisions, <br/>
<a id="pl.3.18"></a><var>3.18</var>municipalities, local government bodies, or an agent of any of those entities.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.19"></a><var>3.19</var>    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:<br/>
<a id="pl.3.20"></a><var>3.20</var>    Subdivision 1. <b>Examination of records.</b> The commissioner may enter during <br/>
<a id="pl.3.21"></a><var>3.21</var>reasonable office hours or upon request and inspect the place of business or employment of <br/>
<a id="pl.3.22"></a><var>3.22</var>any employer of employees working in the state, to examine and inspect books, registers, <br/>
<a id="pl.3.23"></a><var>3.23</var>payrolls, and other records of any employer that in any way relate to wages, hours, and <br/>
<a id="pl.3.24"></a><var>3.24</var>other conditions of employment of any employees. The commissioner may transcribe any <br/>
<a id="pl.3.25"></a><var>3.25</var>or all of the books, registers, payrolls, and other records as the commissioner deems <br/>
<a id="pl.3.26"></a><var>3.26</var>necessary or appropriate and may question the employees to ascertain compliance with <br/>
<a id="pl.3.27"></a><var>3.27</var>sections 
         <statute_ref>177.21</statute_ref> to 
         <statute_ref>177.35</statute_ref> 177.46. The commissioner may investigate wage claims or <br/>
<a id="pl.3.28"></a><var>3.28</var>complaints by an employee against an employer if the failure to pay a wage may violate <br/>
<a id="pl.3.29"></a><var>3.29</var>Minnesota law or an order or rule of the department. <br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.30"></a><var>3.30</var>    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:<br/>
<a id="pl.3.31"></a><var>3.31</var>    Subd. 4. <b>Compliance orders.</b> The commissioner may issue an order requiring an <br/>
<a id="pl.3.32"></a><var>3.32</var>employer to comply with sections 
         <statute_ref>177.21</statute_ref> to 
         <statute_ref>177.35</statute_ref> 177.46, 
         <statute_ref>181.02</statute_ref>, 
         <statute_ref>181.03</statute_ref>, 
         <statute_ref>181.031</statute_ref>, <br/>
<statute_ref><a id="pl.3.33"></a><var>3.33</var>181.032
         </statute_ref>, 
         <statute_ref>181.101</statute_ref>, 
         <statute_ref>181.11</statute_ref>, 
         <statute_ref>181.12</statute_ref>, 
         <statute_ref>181.13</statute_ref>, 
         <statute_ref>181.14</statute_ref>, 
         <statute_ref>181.145</statute_ref>, 
         <statute_ref>181.15</statute_ref>, and 
         <statute_ref>181.79</statute_ref>, or with <br/>
<a id="pl.3.34"></a><var>3.34</var>any rule promulgated under section 
         <statute_ref>177.28</statute_ref>. The department shall serve the order upon <br/>
<a id="pl.4.1"></a><var>4.1</var>the employer or the employer's authorized representative in person or by certified mail <br/>
<a id="pl.4.2"></a><var>4.2</var>at the employer's place of business. An employer who wishes to contest the order must <br/>
<a id="pl.4.3"></a><var>4.3</var>file written notice of objection to the order with the commissioner within 15 calendar <br/>
<a id="pl.4.4"></a><var>4.4</var>days after being served with the order. A contested case proceeding must then be held <br/>
<a id="pl.4.5"></a><var>4.5</var>in accordance with sections 
         <statute_ref>14.57</statute_ref> to 
         <statute_ref>14.69</statute_ref>. If, within 15 calendar days after being <br/>
<a id="pl.4.6"></a><var>4.6</var>served with the order, the employer fails to file a written notice of objection with the <br/>
<a id="pl.4.7"></a><var>4.7</var>commissioner, the order becomes a final order of the commissioner. <br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.4.8"></a><var>4.8</var>    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:<br/>
<a id="pl.4.9"></a><var>4.9</var>    Subd. 8. <b>Court actions; suits brought by private parties.</b> An employee may bring <br/>
<a id="pl.4.10"></a><var>4.10</var>a civil action seeking redress for a violation or violations of sections 
         <statute_ref>177.21</statute_ref> to 
         <statute_ref>177.35 <br/>
<a id="pl.4.11"></a><var>4.11</var>177.46
</statute_ref> directly to district court. An employer who pays an employee less than the wages <br/>
<a id="pl.4.12"></a><var>4.12</var>and overtime compensation to which the employee is entitled under sections 
         <statute_ref>177.21</statute_ref> to <br/>
<statute_ref><a id="pl.4.13"></a><var>4.13</var>177.35
</statute_ref> 177.46 is liable to the employee for the full amount of the wages, gratuities, and <br/>
<a id="pl.4.14"></a><var>4.14</var>overtime compensation, less any amount the employer is able to establish was actually <br/>
<a id="pl.4.15"></a><var>4.15</var>paid to the employee and for an additional equal amount as liquidated damages. In <br/>
<a id="pl.4.16"></a><var>4.16</var>addition, in an action under this subdivision the employee may seek damages and other <br/>
<a id="pl.4.17"></a><var>4.17</var>appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement <br/>
<a id="pl.4.18"></a><var>4.18</var>between the employee and the employer to work for less than the applicable wage is not <br/>
<a id="pl.4.19"></a><var>4.19</var>a defense to the action. <br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.4.20"></a><var>4.20</var>    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:<br/>
<a id="pl.4.21"></a><var>4.21</var>    Subd. 9. <b>District court jurisdiction.</b> Any action brought under subdivision 8 may <br/>
<a id="pl.4.22"></a><var>4.22</var>be filed in the district court of the county wherein a violation or violations of sections <br/>
<statute_ref><a id="pl.4.23"></a><var>4.23</var>177.21
         </statute_ref> to 
         <statute_ref>177.35 177.46</statute_ref> are alleged to have been committed, where the respondent resides <br/>
<a id="pl.4.24"></a><var>4.24</var>or has a principal place of business, or any other court of competent jurisdiction. The <br/>
<a id="pl.4.25"></a><var>4.25</var>action may be brought by one or more employees. <br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.4.26"></a><var>4.26</var>    Sec. 8. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:<br/>
<a id="pl.4.27"></a><var>4.27</var>    Subd. 10. <b>Attorney fees and costs.</b> In any action brought pursuant to subdivision 8, <br/>
<a id="pl.4.28"></a><var>4.28</var>the court shall order an employer who is found to have committed a violation or violations <br/>
<a id="pl.4.29"></a><var>4.29</var>of sections 
         <statute_ref>177.21</statute_ref> to 
         <statute_ref>177.35 177.46</statute_ref> to pay to the employee or employees reasonable costs, <br/>
<a id="pl.4.30"></a><var>4.30</var>disbursements, witness fees, and attorney fees. <br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.4.31"></a><var>4.31</var>    Sec. 9. Minnesota Statutes 2006, section 177.42, is amended to read:<br/>
<a id="pl.4.32"></a><var>4.32</var><b>177.42 DEFINITIONS.</b><br/>
<a id="pl.5.1"></a><var>5.1</var>    Subdivision 1. <b>Scope.</b> As used in sections 
         <statute_ref>177.41</statute_ref> to 
         <statute_ref>177.44 177.46</statute_ref> the terms defined <br/>
<a id="pl.5.2"></a><var>5.2</var>in this section have the meanings given them except where the context indicates otherwise. <br/>
<a id="pl.5.3"></a><var>5.3</var>    Subd. 2. <b>Project.</b> "Project" means erection, construction, remodeling, or repairing <br/>
<a id="pl.5.4"></a><var>5.4</var>of a public building or other public work financed in whole or part by state funds.<br/>
<a id="pl.5.5"></a><var>5.5</var>    Subd. 3. <b>Area.</b> "Area" means the county or other locality from which labor for <br/>
<a id="pl.5.6"></a><var>5.6</var>any project is normally secured.<br/>
<a id="pl.5.7"></a><var>5.7</var>    Subd. 4. <b>Prevailing hours of labor.</b> "Prevailing hours of labor" means the hours <br/>
<a id="pl.5.8"></a><var>5.8</var>of labor per day and per week worked within the area by a larger number of workers of <br/>
<a id="pl.5.9"></a><var>5.9</var>the same class than are employed within the area for any other number of hours per day <br/>
<a id="pl.5.10"></a><var>5.10</var>and per week. The prevailing hours of labor may not be more than eight hours per day <br/>
<a id="pl.5.11"></a><var>5.11</var>or more than 40 hours per week.<br/>
<a id="pl.5.12"></a><var>5.12</var>    Subd. 5. <b>Hourly basic rate.</b> "Hourly basic rate" means the taxable hourly wage <br/>
<a id="pl.5.13"></a><var>5.13</var>paid to any employee.<br/>
<a id="pl.5.14"></a><var>5.14</var>    Subd. 6. <b>Prevailing wage rate.</b> "Prevailing wage rate" means the hourly basic rate <br/>
<a id="pl.5.15"></a><var>5.15</var>of pay plus the contribution for health and welfare benefits, vacation benefits, pension <br/>
<a id="pl.5.16"></a><var>5.16</var>benefits, and any other economic benefit considered by the commissioner to be a direct <br/>
<a id="pl.5.17"></a><var>5.17</var>benefit to the employee and paid to the largest number of workers engaged in the same <br/>
<a id="pl.5.18"></a><var>5.18</var>class of labor within the area and includes, for the purposes of section 
         <statute_ref>177.44</statute_ref>, rental <br/>
<a id="pl.5.19"></a><var>5.19</var>rates for truck hire paid to those who own and operate the truck. The prevailing wage <br/>
<a id="pl.5.20"></a><var>5.20</var>rate may not be less than a reasonable and living wage, that must be at least two times <br/>
<a id="pl.5.21"></a><var>5.21</var>the established state minimum wage rate. <br/>
<a id="pl.5.22"></a><var>5.22</var>    Subd. 7. <b>Laborer or mechanic.</b> "Laborer or mechanic" includes all workers <br/>
<a id="pl.5.23"></a><var>5.23</var>performing manual and physical work on the project for the time spent performing the <br/>
<a id="pl.5.24"></a><var>5.24</var>duties of classifications of labor.<br/>
<a id="pl.5.25"></a><var>5.25</var>    Subd. 8. <b>Contracting authority.</b> "Contracting authority" means the state of <br/>
<a id="pl.5.26"></a><var>5.26</var>Minnesota, a state agency, political subdivision of the state, commission, council, or any <br/>
<a id="pl.5.27"></a><var>5.27</var>other entity with authority to enter into public works projects, or an agent of any of those <br/>
<a id="pl.5.28"></a><var>5.28</var>entities, that enters into a contract for a project.<br/>
<a id="pl.5.29"></a><var>5.29</var>    Subd. 9. <b>Contractor.</b> "Contractor" means the individual, firm, corporation, or <br/>
<a id="pl.5.30"></a><var>5.30</var>other business entity entering into a contract with a contracting authority to complete a <br/>
<a id="pl.5.31"></a><var>5.31</var>project, either directly or through an authorized representative, and who undertakes the <br/>
<a id="pl.5.32"></a><var>5.32</var>prosecution of the work prescribed in the contract.<br/>
<a id="pl.5.33"></a><var>5.33</var>    Subd. 10. <b>Contract.</b> "Contract" means the written agreement between the <br/>
<a id="pl.5.34"></a><var>5.34</var>contracting authority and the contractor setting forth each party's rights and obligations, <br/>
<a id="pl.5.35"></a><var>5.35</var>including, but not limited to, the performance of the work, type of work, furnishing <br/>
<a id="pl.6.1"></a><var>6.1</var>of labor and materials, basis of payment, work specifications, and other requirements <br/>
<a id="pl.6.2"></a><var>6.2</var>contained in the project documents.<br/>
<a id="pl.6.3"></a><var>6.3</var>    Subd. 11. <b>Certified payroll.</b> "Certified payroll" is a form that contains:<br/>
<a id="pl.6.4"></a><var>6.4</var>    (1) Payroll form. A form that contains information on all laborers and mechanics <br/>
<a id="pl.6.5"></a><var>6.5</var>that performed work under the contract, including the following payroll information: <br/>
<a id="pl.6.6"></a><var>6.6</var>full name, address, Social Security number, each classification of labor worked, daily <br/>
<a id="pl.6.7"></a><var>6.7</var>and weekly hours worked on the project, rates of pay, overtime hours and rates, taxes <br/>
<a id="pl.6.8"></a><var>6.8</var>withheld and other deductions, the project gross amount and net amounts earned, the total <br/>
<a id="pl.6.9"></a><var>6.9</var>gross amount and net amounts earned, in addition, the hourly costs of, and the provider <br/>
<a id="pl.6.10"></a><var>6.10</var>names and contact information of, the company's fringe benefits program, along with <br/>
<a id="pl.6.11"></a><var>6.11</var>project identification information, and any additional information determined by the <br/>
<a id="pl.6.12"></a><var>6.12</var>commissioner to be necessary to ensure compliance with this section.<br/>
<a id="pl.6.13"></a><var>6.13</var>    (2) Certification form. A form that contains certification language approved by the <br/>
<a id="pl.6.14"></a><var>6.14</var>commissioner and a signature block. Certified payroll must be submitted to a contracting <br/>
<a id="pl.6.15"></a><var>6.15</var>authority on forms approved by the commissioner.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.6.16"></a><var>6.16</var>    Sec. 10. Minnesota Statutes 2006, section 177.43, is amended to read:<br/>
<a id="pl.6.17"></a><var>6.17</var><b>177.43 CONTRACTS FOR STATE PROJECTS; PENALTY.</b><br/>
<a id="pl.6.18"></a><var>6.18</var>    Subdivision 1. <b>Hours of labor.</b> Any contract which provides for a project must <br/>
<a id="pl.6.19"></a><var>6.19</var>state that:<br/>
<a id="pl.6.20"></a><var>6.20</var>    (1) no laborer or mechanic employed directly on the project work site by the <br/>
<a id="pl.6.21"></a><var>6.21</var>contractor or any subcontractor, agent, or other person doing or contracting to do all <br/>
<a id="pl.6.22"></a><var>6.22</var>or a part of the work of the project, is permitted or required to work more hours than <br/>
<a id="pl.6.23"></a><var>6.23</var>the prevailing hours of labor unless paid for all hours in excess of the prevailing hours <br/>
<a id="pl.6.24"></a><var>6.24</var>at a rate of at least 1-1/2 times the taxable hourly basic rate of pay paid to the laborer or <br/>
<a id="pl.6.25"></a><var>6.25</var>mechanic for the work performed under a contract; and<br/>
<a id="pl.6.26"></a><var>6.26</var>    (2) a laborer or mechanic may must be paid unconditionally and not less often than <br/>
<a id="pl.6.27"></a><var>6.27</var>on a weekly basis and shall not be paid a lesser rate of wages than the prevailing wage rate <br/>
<a id="pl.6.28"></a><var>6.28</var>in the same or most similar trade or occupation in the area. Actual costs for providing <br/>
<a id="pl.6.29"></a><var>6.29</var>bona fide fringe benefit programs as defined in subdivision 8 to a laborer or mechanic <br/>
<a id="pl.6.30"></a><var>6.30</var>performing work under the contract may be deducted from the total prevailing wage rate <br/>
<a id="pl.6.31"></a><var>6.31</var>to obtain the taxable hourly basic rate to be paid to the laborer or mechanic; and<br/>
<a id="pl.6.32"></a><var>6.32</var>    (3) the contractor, subcontractor, or agent shall not exceed their company <br/>
<a id="pl.6.33"></a><var>6.33</var>apprenticeship ratio established by a certified or registered program on any project subject <br/>
<a id="pl.6.34"></a><var>6.34</var>to this section.<br/>
<a id="pl.7.1"></a><var>7.1</var>    Subd. 2. <b>Exceptions.</b> This section does not apply to wage rates and hours of <br/>
<a id="pl.7.2"></a><var>7.2</var>employment of laborers or mechanics who process or manufacture materials or products <br/>
<a id="pl.7.3"></a><var>7.3</var>or to the delivery of materials or products by or for commercial establishments which have <br/>
<a id="pl.7.4"></a><var>7.4</var>a fixed place of business from which they regularly supply processed or manufactured <br/>
<a id="pl.7.5"></a><var>7.5</var>materials or products. This section applies to laborers or mechanics who deliver mineral <br/>
<a id="pl.7.6"></a><var>7.6</var>aggregate such as sand, gravel, or stone which is incorporated into the work under the <br/>
<a id="pl.7.7"></a><var>7.7</var>contract by depositing the material substantially in place, directly or through spreaders, <br/>
<a id="pl.7.8"></a><var>7.8</var>from the transporting vehicle.<br/>
<a id="pl.7.9"></a><var>7.9</var>    Subd. 3. <b>Contract requirements.</b> The contract must specifically state the <br/>
<a id="pl.7.10"></a><var>7.10</var>prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay. The <br/>
<a id="pl.7.11"></a><var>7.11</var>contracting authority shall incorporate into its proposals and contracts the appropriate <br/>
<a id="pl.7.12"></a><var>7.12</var>wage determinations for the contract along with contract language provided by the <br/>
<a id="pl.7.13"></a><var>7.13</var>commissioner of labor and industry to notify the contractor of the applicability of <br/>
<a id="pl.7.14"></a><var>7.14</var>sections 177.41 to 177.46. Failure to incorporate the determination or provided contract <br/>
<a id="pl.7.15"></a><var>7.15</var>language into the contracts shall make the contracting authority liable for making <br/>
<a id="pl.7.16"></a><var>7.16</var>whole the contractor for any increases in the wages paid, including employment taxes <br/>
<a id="pl.7.17"></a><var>7.17</var>and reasonable administrative costs based on the increase in wages, to the laborers or <br/>
<a id="pl.7.18"></a><var>7.18</var>mechanics working on the project. The contracting authority is authorized to incorporate <br/>
<a id="pl.7.19"></a><var>7.19</var>into the bid documents for each project a compliance monitoring surcharge provision. The <br/>
<a id="pl.7.20"></a><var>7.20</var>surcharge shall be a percentage of the engineers estimate of the project. The surcharge <br/>
<a id="pl.7.21"></a><var>7.21</var>percentage shall be either an amount set annually by the commissioner for all projects after <br/>
<a id="pl.7.22"></a><var>7.22</var>investigation to determine the expected costs of monitoring compliance, or an amount <br/>
<a id="pl.7.23"></a><var>7.23</var>requested by the contracting authority and authorized by the commissioner, and will be a <br/>
<a id="pl.7.24"></a><var>7.24</var>percentage sufficient to pay the estimated cost to the contracting authority of monitoring <br/>
<a id="pl.7.25"></a><var>7.25</var>compliance with sections 177.41 to 177.46. The surcharge shall be incorporated into the <br/>
<a id="pl.7.26"></a><var>7.26</var>contract for the project and paid by the contractor to the contracting authority within <br/>
<a id="pl.7.27"></a><var>7.27</var>two weeks of the payment by the contracting authority of the mobilization cost for the <br/>
<a id="pl.7.28"></a><var>7.28</var>project as specified in the successful bid. The contracting authority shall use this surcharge <br/>
<a id="pl.7.29"></a><var>7.29</var>exclusively to defray costs of monitoring compliance with sections 177.41 to 177.46.<br/>
<a id="pl.7.30"></a><var>7.30</var>    These hours, rates, and classifications, along with contracting authority name, <br/>
<a id="pl.7.31"></a><var>7.31</var>project engineer or agency contact person, telephone number, and project identification <br/>
<a id="pl.7.32"></a><var>7.32</var>numbers, together with a summary of provisions of subdivision 5 and a summary of <br/>
<a id="pl.7.33"></a><var>7.33</var>provisions under section 177.46, shall be and remain posted directly on the project site <br/>
<a id="pl.7.34"></a><var>7.34</var>by the contractor in at least one conspicuous and accessible location acceptable to the <br/>
<a id="pl.7.35"></a><var>7.35</var>contracting authority for the information of all employees working on the project. The <br/>
<a id="pl.8.1"></a><var>8.1</var>contracting authority shall ensure the contractor keeps the required information on the <br/>
<a id="pl.8.2"></a><var>8.2</var>project from the start of work until all work is completed on the project.<br/>
<a id="pl.8.3"></a><var>8.3</var>    All contracting authorities shall require weekly submittal of certified payrolls from <br/>
<a id="pl.8.4"></a><var>8.4</var>each contractor, subcontractor, or agent working on the project. The contractor shall <br/>
<a id="pl.8.5"></a><var>8.5</var>submit certified payrolls from the contractor's own workforce along with payrolls from <br/>
<a id="pl.8.6"></a><var>8.6</var>all subcontractors and agents working on the project. The contracting authority shall <br/>
<a id="pl.8.7"></a><var>8.7</var>maintain the payrolls under the contracting agency's normal record retention schedules for <br/>
<a id="pl.8.8"></a><var>8.8</var>a minimum of two years past the closing of the contract.<br/>
<a id="pl.8.9"></a><var>8.9</var>    Each contracting authority shall redact the Social Security number and address of <br/>
<a id="pl.8.10"></a><var>8.10</var>each laborer or mechanic from each certified payroll before any person other than an <br/>
<a id="pl.8.11"></a><var>8.11</var>employee of the contracting authority or the department is allowed to review the certified <br/>
<a id="pl.8.12"></a><var>8.12</var>payroll.<br/>
<a id="pl.8.13"></a><var>8.13</var>    Certified payrolls shall be submitted within one week after the week ending date of <br/>
<a id="pl.8.14"></a><var>8.14</var>the week in which the work was performed. Each subcontractor or agent shall furnish to <br/>
<a id="pl.8.15"></a><var>8.15</var>the contractor weekly certified payrolls to demonstrate compliance with this section. The <br/>
<a id="pl.8.16"></a><var>8.16</var>contractor may interview all laborers or mechanics on the project and review subcontractor <br/>
<a id="pl.8.17"></a><var>8.17</var>or agents' payroll information to ensure compliance with this section.<br/>
<a id="pl.8.18"></a><var>8.18</var>    The contractor shall incorporate into all subcontract agreements, purchase orders, <br/>
<a id="pl.8.19"></a><var>8.19</var>or other written agreements that provide for work covered by this section, the contract <br/>
<a id="pl.8.20"></a><var>8.20</var>wage determinations and the contract language provided by the commissioner contained <br/>
<a id="pl.8.21"></a><var>8.21</var>in the contract. The contractor shall also ensure that all secondary subcontract agreements, <br/>
<a id="pl.8.22"></a><var>8.22</var>purchase orders, or other written agreements that provide for work covered by this section <br/>
<a id="pl.8.23"></a><var>8.23</var>contain the same language. The contractor shall provide a written certified confirmation <br/>
<a id="pl.8.24"></a><var>8.24</var>on a form provided by the contracting authority that all subcontractors and agents have <br/>
<a id="pl.8.25"></a><var>8.25</var>received the required contract wage determinations and contract language. The form shall <br/>
<a id="pl.8.26"></a><var>8.26</var>be provided to the contracting authority prior to any subcontractor or agent working on the <br/>
<a id="pl.8.27"></a><var>8.27</var>project. If the contractor does not provide the information required to the subcontractor <br/>
<a id="pl.8.28"></a><var>8.28</var>or agents, or the form to the contracting authority, the contractor shall be the sole entity <br/>
<a id="pl.8.29"></a><var>8.29</var>responsible for any contracting authority or commissioner's assessment.<br/>
<a id="pl.8.30"></a><var>8.30</var>    Subd. 4. <b>Determination by commissioner.</b> The prevailing wage rates, prevailing <br/>
<a id="pl.8.31"></a><var>8.31</var>hours of labor, and hourly basic rates of pay for all trades and occupations required in any <br/>
<a id="pl.8.32"></a><var>8.32</var>project under each contract must be ascertained obtained before the state any contracting <br/>
<a id="pl.8.33"></a><var>8.33</var>authority asks for bids. The wage determinations must also include future hours and rates <br/>
<a id="pl.8.34"></a><var>8.34</var>when they can be determined for classes of laborers or mechanics in an area. The wage <br/>
<a id="pl.8.35"></a><var>8.35</var>determination must specifically state the effective dates of future hours and rates when <br/>
<a id="pl.8.36"></a><var>8.36</var>they are certified. The commissioner of labor and industry shall investigate as necessary <br/>
<a id="pl.9.1"></a><var>9.1</var>to ascertain the information and shall develop and maintain classification definitions. <br/>
<a id="pl.9.2"></a><var>9.2</var>The contractor and contracting authority shall apply the classification definitions to the <br/>
<a id="pl.9.3"></a><var>9.3</var>laborers or mechanics performing work under the contract. Missing classifications, <br/>
<a id="pl.9.4"></a><var>9.4</var>classification disputes, and disputes arising from interpretations of this section shall be <br/>
<a id="pl.9.5"></a><var>9.5</var>resolved by the commissioner of labor and industry. The commissioner shall keep the <br/>
<a id="pl.9.6"></a><var>9.6</var>information posted on the project in at least one conspicuous place for the information of <br/>
<a id="pl.9.7"></a><var>9.7</var>the employees working on the project. A person aggrieved by a final determination of the <br/>
<a id="pl.9.8"></a><var>9.8</var>commissioner may petition the commissioner for reconsideration of findings within 20 <br/>
<a id="pl.9.9"></a><var>9.9</var>days of the publication or decision. A person aggrieved by a decision of the commissioner <br/>
<a id="pl.9.10"></a><var>9.10</var>after reconsideration may, within 20 days after the decision, petition the commissioner <br/>
<a id="pl.9.11"></a><var>9.11</var>for a public hearing in the manner of a contested case under sections 
         <statute_ref>14.57</statute_ref> to 
         <statute_ref>14.61</statute_ref>. If <br/>
<a id="pl.9.12"></a><var>9.12</var>the commissioner finds that a change in the certified prevailing hours of labor, prevailing <br/>
<a id="pl.9.13"></a><var>9.13</var>wage rate, and the hourly basic rate of pay for a class of laborers or mechanics in any area <br/>
<a id="pl.9.14"></a><var>9.14</var>is required, the commissioner may at any time certify that change, and the certified change <br/>
<a id="pl.9.15"></a><var>9.15</var>will be effective on a project advertised for bid on or after the date of certification.<br/>
<a id="pl.9.16"></a><var>9.16</var>    Subd. 5. <b>Penalty</b><b> Penalties: criminal, civil, and debarment</b><b>.</b> (a) It is a <br/>
<a id="pl.9.17"></a><var>9.17</var>misdemeanor violation for an officer or employee of the state to or contracting authority <br/>
<a id="pl.9.18"></a><var>9.18</var>to knowingly execute a contract for a project without complying with this section, or for <br/>
<a id="pl.9.19"></a><var>9.19</var>the wage determination or contract language provided by the commissioner of labor <br/>
<a id="pl.9.20"></a><var>9.20</var>and industry, or knowingly close a contract on a project with violations or assessments. <br/>
<a id="pl.9.21"></a><var>9.21</var>A willful violation may be subject to the penalties assigned under section 609.43. A <br/>
<a id="pl.9.22"></a><var>9.22</var>contractor, subcontractor, or agent to pay any laborer, worker, or mechanic employed <br/>
<a id="pl.9.23"></a><var>9.23</var>directly on the project site a lesser wage for work done under the contract than the <br/>
<a id="pl.9.24"></a><var>9.24</var>prevailing wage rate as stated in the contract. This misdemeanor is punishable by a fine <br/>
<a id="pl.9.25"></a><var>9.25</var>of who violates this section is guilty of a gross misdemeanor for the first conviction of <br/>
<a id="pl.9.26"></a><var>9.26</var>a criminal offense under this section and shall be fined for the violation not more than <br/>
<a id="pl.9.27"></a><var>9.27</var>$700 $3,000, or imprisonment imprisoned for not more than 90 days one year, or both. <br/>
<a id="pl.9.28"></a><var>9.28</var>Each agent or subcontractor shall furnish to the contractor evidence of compliance with <br/>
<a id="pl.9.29"></a><var>9.29</var>this section.<br/>
<a id="pl.9.30"></a><var>9.30</var>     Each day a violation of this section continues is a separate offense violation. It will <br/>
<a id="pl.9.31"></a><var>9.31</var>be considered a felony for the second conviction of a contractor, subcontractor, or agent <br/>
<a id="pl.9.32"></a><var>9.32</var>for violations of this section, or for the conviction of a total unpaid back wage assessment <br/>
<a id="pl.9.33"></a><var>9.33</var>by the commissioner of labor and industry against a violating contractor, subcontractor, or <br/>
<a id="pl.9.34"></a><var>9.34</var>agent in excess of $100,000, and shall be fined for the violation not more that $10,000, or <br/>
<a id="pl.9.35"></a><var>9.35</var>imprisoned for not more than five years, or both. Each day that the violation continues is a <br/>
<a id="pl.9.36"></a><var>9.36</var>separate violation.<br/>
<a id="pl.10.1"></a><var>10.1</var>    Whoever induces a job applicant or employee on any project subject to this section <br/>
<a id="pl.10.2"></a><var>10.2</var>to give up or forego any part of the wages to which the job applicant or employee is <br/>
<a id="pl.10.3"></a><var>10.3</var>entitled under the contract governing the project by threat not to employ, by threat of <br/>
<a id="pl.10.4"></a><var>10.4</var>dismissal from employment, or by any other means, or knowingly alters official company <br/>
<a id="pl.10.5"></a><var>10.5</var>employment or time records to falsely report the laborer's or mechanic's pay is guilty of a <br/>
<a id="pl.10.6"></a><var>10.6</var>gross misdemeanor and may by fined for the violation not exceeding $3,000 or imprisoned <br/>
<a id="pl.10.7"></a><var>10.7</var>for not more than one year, or both. Each day that the violation continues is a separate <br/>
<a id="pl.10.8"></a><var>10.8</var>violation.<br/>
<a id="pl.10.9"></a><var>10.9</var>    Any employee under this section who knowingly permits the contractor or <br/>
<a id="pl.10.10"></a><var>10.10</var>subcontractor to pay less than the prevailing wage rate set forth in the contract, or who <br/>
<a id="pl.10.11"></a><var>10.11</var>gives up any part of the compensation to which entitled under the contract, is guilty of a <br/>
<a id="pl.10.12"></a><var>10.12</var>misdemeanor and may be fined no more than $40 or imprisoned not more than 30 days or <br/>
<a id="pl.10.13"></a><var>10.13</var>both. Each day any violation of this paragraph continues is a separate violation.<br/>
<a id="pl.10.14"></a><var>10.14</var>    In addition to or instead of criminal prosecution under this subdivision, the <br/>
<a id="pl.10.15"></a><var>10.15</var>commissioner may engage in any civil enforcement actions authorized by this section <br/>
<a id="pl.10.16"></a><var>10.16</var>or section 177.45.<br/>
<a id="pl.10.17"></a><var>10.17</var>    (b) Penalties to be assessed by the contracting authorities. The contracting authority <br/>
<a id="pl.10.18"></a><var>10.18</var>may deduct from what is owed the contractor on the project for civil penalties and <br/>
<a id="pl.10.19"></a><var>10.19</var>assessments as defined by this section and provisions of section 177.43.<br/>
<a id="pl.10.20"></a><var>10.20</var>    (1) After written notification by the contracting authority, a civil penalty of $100 <br/>
<a id="pl.10.21"></a><var>10.21</var>per day shall be assessed against the contractor for each day work is performed on the <br/>
<a id="pl.10.22"></a><var>10.22</var>project and the poster board is not placed or maintained on the project work site at a <br/>
<a id="pl.10.23"></a><var>10.23</var>location acceptable to the contracting authority.<br/>
<a id="pl.10.24"></a><var>10.24</var>    (2) After written notification by the contracting authority, a civil penalty of $100 per <br/>
<a id="pl.10.25"></a><var>10.25</var>week against the contractor for each week the contractor's certified payrolls or any of the <br/>
<a id="pl.10.26"></a><var>10.26</var>individual subcontractor or agent-certified payrolls are not submitted.<br/>
<a id="pl.10.27"></a><var>10.27</var>    (3) After written notification by the contracting authority, a civil penalty of $50 per <br/>
<a id="pl.10.28"></a><var>10.28</var>week shall be assessed against the contractor for each week that the subcontractor or agent <br/>
<a id="pl.10.29"></a><var>10.29</var>forms as defined in section 177.43, subdivision 3, are not submitted.<br/>
<a id="pl.10.30"></a><var>10.30</var>    (c) A contractor, subcontractor, or agent that is convicted criminally or held liable <br/>
<a id="pl.10.31"></a><var>10.31</var>civilly under this section shall be deemed to have a lack of business integrity and shall be <br/>
<a id="pl.10.32"></a><var>10.32</var>debarred by the commissioner from working on any contract funded in whole or in part <br/>
<a id="pl.10.33"></a><var>10.33</var>with state funds as a contractor, subcontractor, agent, or material supplier for a period of at <br/>
<a id="pl.10.34"></a><var>10.34</var>least one year and not to exceed three years. The commissioner shall maintain and publish <br/>
<a id="pl.10.35"></a><var>10.35</var>a current list of the debarred entities. If any contracting authority has debarred an entity <br/>
<a id="pl.10.36"></a><var>10.36</var>for prevailing wage violations, the contracting authority shall report the debarment to the <br/>
<a id="pl.11.1"></a><var>11.1</var>commissioner, who will then include the contractor on the list of debarred entities. All <br/>
<a id="pl.11.2"></a><var>11.2</var>contracting authorities may not contract with a debarred entity or allow a debarred entity <br/>
<a id="pl.11.3"></a><var>11.3</var>to work on any project as a subcontractor, material supplier, or in any other capacity.<br/>
<a id="pl.11.4"></a><var>11.4</var>    Subd. 6. <b>Examination of records</b><b> and investigation by the department</b><b>.</b> The <br/>
<a id="pl.11.5"></a><var>11.5</var>Department of Labor and Industry shall enforce this section. The department may demand, <br/>
<a id="pl.11.6"></a><var>11.6</var>and the contractor and subcontractor shall furnish to the department, copies of any or all <br/>
<a id="pl.11.7"></a><var>11.7</var>payrolls. All the contracting authorities that award a contract funded in whole or in part <br/>
<a id="pl.11.8"></a><var>11.8</var>with state funds shall notify the commissioner in writing of the project location, contractor, <br/>
<a id="pl.11.9"></a><var>11.9</var>and any other project information deemed necessary by the commissioner. All contracting <br/>
<a id="pl.11.10"></a><var>11.10</var>authorities shall notify the commissioner in writing when they finalize the project contract. <br/>
<a id="pl.11.11"></a><var>11.11</var>The department shall employ at least five investigators to perform on-site project reviews <br/>
<a id="pl.11.12"></a><var>11.12</var>and to receive and investigate complaints of violations of this section, and to conduct <br/>
<a id="pl.11.13"></a><var>11.13</var>training and outreach to contractors and contracting authorities. These investigators shall <br/>
<a id="pl.11.14"></a><var>11.14</var>be in addition to any investigators employed to conduct prevailing wage surveys. The <br/>
<a id="pl.11.15"></a><var>11.15</var>department may demand, and the contractor or subcontractor or agent shall furnish to <br/>
<a id="pl.11.16"></a><var>11.16</var>the department, copies of any or all payroll documentation deemed necessary by the <br/>
<a id="pl.11.17"></a><var>11.17</var>department. The department may also demand, and the contracting authority shall furnish <br/>
<a id="pl.11.18"></a><var>11.18</var>to the department, any or all project information. The department may examine all records <br/>
<a id="pl.11.19"></a><var>11.19</var>relating to wages paid or fringe benefits provided to laborers or mechanics on work to <br/>
<a id="pl.11.20"></a><var>11.20</var>which to ensure compliance with sections 
         <statute_ref>177.41</statute_ref> to 
         <statute_ref>177.44</statute_ref> apply 177.46. <br/>
<a id="pl.11.21"></a><var>11.21</var>    The commissioner shall determine the amount of back wages owed to the affected <br/>
<a id="pl.11.22"></a><var>11.22</var>laborer or mechanic, shall assess a 100 percent penalty based on the amount of back <br/>
<a id="pl.11.23"></a><var>11.23</var>wages owed to be paid to the affected laborer or mechanic, and an additional civil penalty <br/>
<a id="pl.11.24"></a><var>11.24</var>equal to 100 percent of the back wages owed to be paid to the department and deposited <br/>
<a id="pl.11.25"></a><var>11.25</var>into a dedicated fund for future prevailing wage enforcement efforts and assess the total <br/>
<a id="pl.11.26"></a><var>11.26</var>amount of back wages owed and penalties against the violating contractor, subcontractor, <br/>
<a id="pl.11.27"></a><var>11.27</var>or agent accordingly. If it is determined that a violation has occurred, the commissioner <br/>
<a id="pl.11.28"></a><var>11.28</var>may investigate all other open or closed contracts requiring payment of prevailing wages <br/>
<a id="pl.11.29"></a><var>11.29</var>on which that contractor, subcontractor, or agent performed any work within the previous <br/>
<a id="pl.11.30"></a><var>11.30</var>two years. The department shall notify both the contractor and the contracting authority of <br/>
<a id="pl.11.31"></a><var>11.31</var>its findings and assessment. If the violating contractor, subcontractor, or agent does not <br/>
<a id="pl.11.32"></a><var>11.32</var>comply with the department's assessment within 20 days of receipt of written notification, <br/>
<a id="pl.11.33"></a><var>11.33</var>the department shall notify the contracting authority to withhold from any payment due to <br/>
<a id="pl.11.34"></a><var>11.34</var>the contractor a reasonable amount to ensure compliance with the department's assessment. <br/>
<a id="pl.11.35"></a><var>11.35</var>The contracting authority shall require adherence to the department's assessments by the <br/>
<a id="pl.11.36"></a><var>11.36</var>contractor. The contracting authority shall report back to the commissioner when the <br/>
<a id="pl.12.1"></a><var>12.1</var>contractor complies with the commissioner's findings and assessment. After 60 days of <br/>
<a id="pl.12.2"></a><var>12.2</var>written notification, the commissioner shall deem any unpaid department assessment as an <br/>
<a id="pl.12.3"></a><var>12.3</var>unresolved violation of this section and handle as required under subdivision 6a.<br/>
<a id="pl.12.4"></a><var>12.4</var>    If a contractor is deemed to be insolvent by the commissioner, the contracting <br/>
<a id="pl.12.5"></a><var>12.5</var>authority shall deduct the department's assessed amount from funds owed the contractor or <br/>
<a id="pl.12.6"></a><var>12.6</var>assess the bonding company for department's assessment.<br/>
<a id="pl.12.7"></a><var>12.7</var>    Subd. 6a. <b>Prevailing wage rate violations.</b> (a) All contracting authorities shall <br/>
<a id="pl.12.8"></a><var>12.8</var>monitor compliance with sections 177.41 to 177.46 on all contracts funded in whole or in <br/>
<a id="pl.12.9"></a><var>12.9</var>part with state funds. The contracting authority shall interview employees working on <br/>
<a id="pl.12.10"></a><var>12.10</var>the project during working hours. The contracting authority shall randomly review the <br/>
<a id="pl.12.11"></a><var>12.11</var>weekly certified payrolls, subcontract agreements, project documentation, and employee <br/>
<a id="pl.12.12"></a><var>12.12</var>interviews to determine if the contractor has demonstrated compliance with this section. <br/>
<a id="pl.12.13"></a><var>12.13</var>The contracting authority has authority to request all records relating to the hours of work, <br/>
<a id="pl.12.14"></a><var>12.14</var>wages paid, or cost of providing fringe benefits, to laborers and mechanics performing <br/>
<a id="pl.12.15"></a><var>12.15</var>work under a contract to determine compliance with sections 177.41 to 177.46. The <br/>
<a id="pl.12.16"></a><var>12.16</var>contracting authority shall hold confidential any written or verbal complaint of violation of <br/>
<a id="pl.12.17"></a><var>12.17</var>this section filed by a laborer or mechanic or filed on behalf of a laborer or mechanic. The <br/>
<a id="pl.12.18"></a><var>12.18</var>contracting authority shall notify the contractor in writing of any violations of this section. <br/>
<a id="pl.12.19"></a><var>12.19</var>The contracting authority shall report any unresolved violations of this section to the <br/>
<a id="pl.12.20"></a><var>12.20</var>commissioner of labor and industry after 20 days of a written notification to the contractor <br/>
<a id="pl.12.21"></a><var>12.21</var>to resolve the violations, or the contracting authority has knowledge that it is the violating <br/>
<a id="pl.12.22"></a><var>12.22</var>contractor's, subcontractor's, or agent's second offense of a similar nature. The contracting <br/>
<a id="pl.12.23"></a><var>12.23</var>authority shall not close a contract with any unresolved violations of this section.<br/>
<a id="pl.12.24"></a><var>12.24</var>    The commissioner of labor and industry is required to report any unresolved <br/>
<a id="pl.12.25"></a><var>12.25</var>violations within 60 days of written notification to the contractor, any willful violations of <br/>
<a id="pl.12.26"></a><var>12.26</var>this section, or second offense violations of a similar nature, to both the county attorney <br/>
<a id="pl.12.27"></a><var>12.27</var>where the alleged violation occurred and to the attorney general for criminal prosecution.<br/>
<a id="pl.12.28"></a><var>12.28</var>    (b) A county attorney shall notify the commissioner of labor and industry and the <br/>
<a id="pl.12.29"></a><var>12.29</var>attorney general upon commencing an action for a violation of this section. The county <br/>
<a id="pl.12.30"></a><var>12.30</var>attorney shall also give notice to the commissioner and the attorney general of the outcome <br/>
<a id="pl.12.31"></a><var>12.31</var>of the action, including detailed reasons for the dismissal or settlement of an action <br/>
<a id="pl.12.32"></a><var>12.32</var>pursuant to a plea agreement that awards less than the maximum penalties for a violation <br/>
<a id="pl.12.33"></a><var>12.33</var>of this section. The commissioner shall notify the contracting authority.<br/>
<a id="pl.12.34"></a><var>12.34</var>    (c) If the attorney general does not receive notice of the commencement of an action <br/>
<a id="pl.12.35"></a><var>12.35</var>by a county attorney, as required by paragraph (b), within six months of receiving a report <br/>
<a id="pl.12.36"></a><var>12.36</var>under paragraph (a) from the commissioner of labor and industry, the attorney general shall <br/>
<a id="pl.13.1"></a><var>13.1</var>pursue the suspected violation, unless the attorney general and commissioner agree that <br/>
<a id="pl.13.2"></a><var>13.2</var>civil enforcement will be sufficient to effectuate the policies of sections 177.41 to 177.46.<br/>
<a id="pl.13.3"></a><var>13.3</var>    Subd. 7. <b>Applicability.</b> This section does not apply to a contract, or work under <br/>
<a id="pl.13.4"></a><var>13.4</var>a contract, under which:<br/>
<a id="pl.13.5"></a><var>13.5</var>    (1) the estimated total cost of completing the project is less than $2,500 and only one <br/>
<a id="pl.13.6"></a><var>13.6</var>trade or occupation is required to complete it, or<br/>
<a id="pl.13.7"></a><var>13.7</var>    (2) the estimated total cost of completing the project is less than $25,000 and more <br/>
<a id="pl.13.8"></a><var>13.8</var>than one trade or occupation is required to complete it.<br/>
<a id="pl.13.9"></a><var>13.9</var>    Subd. 8. <b>Fringe benefit programs.</b> The prevailing wage rate shall be paid for all <br/>
<a id="pl.13.10"></a><var>13.10</var>hours worked on the project. The contractor, subcontractor, or agent may take credit <br/>
<a id="pl.13.11"></a><var>13.11</var>toward the prevailing wage rate for the recovery of the costs of providing bona fide <br/>
<a id="pl.13.12"></a><var>13.12</var>fringe benefits that have been approved by the commissioner prior to working on a <br/>
<a id="pl.13.13"></a><var>13.13</var>contract subject to this section and deemed a direct benefit to the laborer or mechanic. <br/>
<a id="pl.13.14"></a><var>13.14</var>The contractor, subcontractor, or agent shall not take credit for the company's incurred <br/>
<a id="pl.13.15"></a><var>13.15</var>administrative costs of providing a bona fide fringe benefits program or the costs of legally <br/>
<a id="pl.13.16"></a><var>13.16</var>required plans or insurance including but not limited to workers' compensation and <br/>
<a id="pl.13.17"></a><var>13.17</var>unemployment insurance, as well as program or plan costs deemed by the commissioner <br/>
<a id="pl.13.18"></a><var>13.18</var>to be incurred for the benefit of the contractor, subcontractor, or agent.<br/>
<a id="pl.13.19"></a><var>13.19</var>    The contributions irrevocably made by the employer to a trustee or third party <br/>
<a id="pl.13.20"></a><var>13.20</var>pursuant to bona fide fringe benefit fund, plan, or program may be deducted from the <br/>
<a id="pl.13.21"></a><var>13.21</var>prevailing wage rate, including the reasonable anticipated costs made to a legally <br/>
<a id="pl.13.22"></a><var>13.22</var>enforceable financially responsible employer plan or program. All programs shall be <br/>
<a id="pl.13.23"></a><var>13.23</var>communicated in writing to the employee prior to working on the project.<br/>
<a id="pl.13.24"></a><var>13.24</var>    Contributions to plans or programs must be made on a regular basis, not less often <br/>
<a id="pl.13.25"></a><var>13.25</var>than quarterly. The costs of providing the benefit plan or program must be annualized. <br/>
<a id="pl.13.26"></a><var>13.26</var>Contributions made to a plan or program for government work cannot fund the plan for <br/>
<a id="pl.13.27"></a><var>13.27</var>periods of nongovernment work.<br/>
<a id="pl.13.28"></a><var>13.28</var>    The laborer or mechanic must have an opportunity to receive the benefit; credit will <br/>
<a id="pl.13.29"></a><var>13.29</var>not be given costs deducted from laborers or mechanics that are not eligible to receive <br/>
<a id="pl.13.30"></a><var>13.30</var>the benefit. A laborer or mechanic cannot pay the costs of providing a fringe benefit <br/>
<a id="pl.13.31"></a><var>13.31</var>for another laborer or mechanic.<br/>
<a id="pl.13.32"></a><var>13.32</var>    Bonuses are not considered a fringe benefit as they are paid in the future and the <br/>
<a id="pl.13.33"></a><var>13.33</var>laborer or mechanic must be paid unconditionally weekly the full amount owed without <br/>
<a id="pl.13.34"></a><var>13.34</var>any rebate. Transportation, board, and lodging are not considered a fringe benefit as <br/>
<a id="pl.13.35"></a><var>13.35</var>it is a properly reimbursable expense of the employer and incurred for the employer's <br/>
<a id="pl.14.1"></a><var>14.1</var>benefit. Company vehicles are not considered a fringe benefit as it is to the advantage of <br/>
<a id="pl.14.2"></a><var>14.2</var>the contractor.<br/>
<a id="pl.14.3"></a><var>14.3</var>    The remainder of the prevailing wage rate after the costs for bona fide fringe benefits <br/>
<a id="pl.14.4"></a><var>14.4</var>have been deducted shall be the taxable hourly wage rate paid to the employee for regular <br/>
<a id="pl.14.5"></a><var>14.5</var>hours worked and used as the basis for calculating overtime rates of pay. The amount <br/>
<a id="pl.14.6"></a><var>14.6</var>deducted for fringe benefit costs on a project may not reduce the taxable hourly wage rate <br/>
<a id="pl.14.7"></a><var>14.7</var>below the laborer's or mechanic's regular rate of pay. A contractor may not reduce the rate <br/>
<a id="pl.14.8"></a><var>14.8</var>of pay of the laborer or mechanic on nonprevailing wage work as a result of the laborer or <br/>
<a id="pl.14.9"></a><var>14.9</var>mechanic having performed work for which payment of prevailing wage is required.<br/>
<a id="pl.14.10"></a><var>14.10</var>    Nothing in this section shall supersede provisions of any collective bargaining <br/>
<a id="pl.14.11"></a><var>14.11</var>agreement or the provisions of the Employment Retirement Income Security Act.<br/>
<a id="pl.14.12"></a><var>14.12</var>    Subd. 9. <b>Keeping records, penalty.</b> Every employer subject to sections 177.41 to <br/>
<a id="pl.14.13"></a><var>14.13</var>177.46 must make and keep a record of:<br/>
<a id="pl.14.14"></a><var>14.14</var>    (1) the name, address, Social Security number, and classification of each laborer <br/>
<a id="pl.14.15"></a><var>14.15</var>or mechanic;<br/>
<a id="pl.14.16"></a><var>14.16</var>    (2) the hourly rate of pay, and the amount paid each pay period on both public and <br/>
<a id="pl.14.17"></a><var>14.17</var>private work to each laborer or mechanic;<br/>
<a id="pl.14.18"></a><var>14.18</var>    (3) the hours and classifications worked each day and each work week on both <br/>
<a id="pl.14.19"></a><var>14.19</var>public and private work by the laborer or mechanic;<br/>
<a id="pl.14.20"></a><var>14.20</var>    (4) fringe benefit program information, costs, and disbursements made on behalf of a <br/>
<a id="pl.14.21"></a><var>14.21</var>laborer or mechanic; and<br/>
<a id="pl.14.22"></a><var>14.22</var>    (5) other information the commissioner finds necessary and appropriate to enforce <br/>
<a id="pl.14.23"></a><var>14.23</var>sections 177.41 to 177.46.<br/>
<a id="pl.14.24"></a><var>14.24</var>    The records shall be kept in or near the employer's main business location for three <br/>
<a id="pl.14.25"></a><var>14.25</var>years after the contract is closed on the project worked. The commissioner may fine <br/>
<a id="pl.14.26"></a><var>14.26</var>a contractor, subcontractor, or agent up to $1,000 for each failure to maintain records <br/>
<a id="pl.14.27"></a><var>14.27</var>as required by this section. This penalty is in addition to any penalties provided under <br/>
<a id="pl.14.28"></a><var>14.28</var>section 177.43 or 177.46.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.14.29"></a><var>14.29</var>    Sec. 11. Minnesota Statutes 2006, section 177.44, is amended to read:<br/>
<a id="pl.14.30"></a><var>14.30</var><b>177.44 </b><b>HIGHWAY</b><b> </b><b>TRANSPORTATION </b><b>CONTRACTS; HOURS OF LABOR; </b><br/>
<a id="pl.14.31"></a><var>14.31</var><b>WAGE RATES; PENALTY.</b><br/>
<a id="pl.14.32"></a><var>14.32</var>    Subdivision 1. <b>Hours, wages permitted.</b> A laborer or mechanic employed by a <br/>
<a id="pl.14.33"></a><var>14.33</var>contractor, subcontractor, agent, or other person doing or contracting to do all or part <br/>
<a id="pl.14.34"></a><var>14.34</var>of the work under a contract based on bids as provided in Minnesota Statutes 1971, <br/>
<a id="pl.14.35"></a><var>14.35</var>section 
         <statute_ref>161.32</statute_ref>, to which the state is a party, or for contracts for which the Department <br/>
<a id="pl.15.1"></a><var>15.1</var>of Transportation has a delegation of authority to be the contracting authority, or for <br/>
<a id="pl.15.2"></a><var>15.2</var>contracts that the Department of Transportation oversees under its authority to oversee <br/>
<a id="pl.15.3"></a><var>15.3</var>constitutionally mandated state funding to other local governmental bodies, or units of <br/>
<a id="pl.15.4"></a><var>15.4</var>government, or political subdivisions that are the contracting authority, for the construction <br/>
<a id="pl.15.5"></a><var>15.5</var>or maintenance of a highway or other public work projects, may not be permitted or <br/>
<a id="pl.15.6"></a><var>15.6</var>required to work longer than the prevailing hours of labor unless the laborer or mechanic <br/>
<a id="pl.15.7"></a><var>15.7</var>is paid for all hours in excess of the prevailing hours at a rate of at least 1-1/2 times the <br/>
<a id="pl.15.8"></a><var>15.8</var>taxable hourly basic rate of pay of paid to the laborer or mechanic for the work performed <br/>
<a id="pl.15.9"></a><var>15.9</var>on the project. The laborer or mechanic must be paid at least unconditionally and not <br/>
<a id="pl.15.10"></a><var>15.10</var>less often than on a weekly basis and shall not be paid a lesser rate of wages than the <br/>
<a id="pl.15.11"></a><var>15.11</var>prevailing wage rate in the same or most similar trade or occupation in the area. The costs <br/>
<a id="pl.15.12"></a><var>15.12</var>of providing fringe benefit programs as defined in section 177.43, subdivision 8, to the <br/>
<a id="pl.15.13"></a><var>15.13</var>laborers or mechanics working on the project may be deducted from the total prevailing <br/>
<a id="pl.15.14"></a><var>15.14</var>wage rate. Contractors, subcontractors, agents, or other persons performing work under <br/>
<a id="pl.15.15"></a><var>15.15</var>the contract must maintain records as defined in section 177.43, subdivision 9. <br/>
<a id="pl.15.16"></a><var>15.16</var>    The contractor, subcontractor, or agent shall not exceed their company apprenticeship <br/>
<a id="pl.15.17"></a><var>15.17</var>ratio established by a certified or registered program on any project subject to this section.<br/>
<a id="pl.15.18"></a><var>15.18</var>    Subd. 2. <b>Applicability</b><b> Exceptions</b><b>.</b> This section does not apply to wage rates and <br/>
<a id="pl.15.19"></a><var>15.19</var>hours of employment of laborers or mechanics engaged in the processing or manufacture <br/>
<a id="pl.15.20"></a><var>15.20</var>of materials or products, or to the delivery of materials or products by or for commercial <br/>
<a id="pl.15.21"></a><var>15.21</var>establishments which have a fixed place of business from which they regularly supply <br/>
<a id="pl.15.22"></a><var>15.22</var>the processed or manufactured materials or products. This section applies to laborers <br/>
<a id="pl.15.23"></a><var>15.23</var>or mechanics who deliver mineral aggregate such as sand, gravel, or stone which is <br/>
<a id="pl.15.24"></a><var>15.24</var>incorporated into the work under the contract by depositing the material substantially in <br/>
<a id="pl.15.25"></a><var>15.25</var>place, directly or through spreaders, from the transporting vehicle.<br/>
<a id="pl.15.26"></a><var>15.26</var>    Subd. 3. <b>Investigations by Department of Labor and Industry.</b> The Department <br/>
<a id="pl.15.27"></a><var>15.27</var>of Labor and Industry shall conduct investigations and hold public hearings necessary <br/>
<a id="pl.15.28"></a><var>15.28</var>to define classes of laborers and or mechanics and to determine the hours of labor and <br/>
<a id="pl.15.29"></a><var>15.29</var>wage rates prevailing in all areas of the state for all classes of labor and laborers or <br/>
<a id="pl.15.30"></a><var>15.30</var>mechanics commonly employed in highway, heavy, or building construction work, so as <br/>
<a id="pl.15.31"></a><var>15.31</var>to determine prevailing hours of labor, prevailing wage rates, and hourly basic rates of <br/>
<a id="pl.15.32"></a><var>15.32</var>pay. If a contract contains multiple types of construction work, the contract must contain <br/>
<a id="pl.15.33"></a><var>15.33</var>all appropriate wage determinations and the laborer or mechanic must be paid at a rate <br/>
<a id="pl.15.34"></a><var>15.34</var>for all hours worked under the type of work performed on the project. The contractors, <br/>
<a id="pl.15.35"></a><var>15.35</var>subcontractors, and agents and Department of Transportation and other contracting <br/>
<a id="pl.15.36"></a><var>15.36</var>authorities must apply the classification definitions certified by the commissioner of labor <br/>
<a id="pl.16.1"></a><var>16.1</var>and industry to the laborers or mechanics working on the project. Missing classifications, <br/>
<a id="pl.16.2"></a><var>16.2</var>classification disputes, and other questions arising from the interpretations of this section <br/>
<a id="pl.16.3"></a><var>16.3</var>must be resolved by the commissioner of labor and industry as specified in section 177.43, <br/>
<a id="pl.16.4"></a><var>16.4</var>subdivision 4.<br/>
<a id="pl.16.5"></a><var>16.5</var>    The Department commissioner of labor and industry shall determine the nature of <br/>
<a id="pl.16.6"></a><var>16.6</var>the equipment furnished by truck drivers who own and operate trucks on contract work to <br/>
<a id="pl.16.7"></a><var>16.7</var>determine minimum rates for the equipment, and shall establish by rule minimum rates <br/>
<a id="pl.16.8"></a><var>16.8</var>to be computed into the prevailing wage rate. The contracting agency must incorporate <br/>
<a id="pl.16.9"></a><var>16.9</var>the minimum rates into its contracts for bid. The contractor, subcontractor, or agent must <br/>
<a id="pl.16.10"></a><var>16.10</var>pay the minimum rate established by the commissioner of labor and industry directly <br/>
<a id="pl.16.11"></a><var>16.11</var>to the person who owns and operates the truck without any deductions or rebates. The <br/>
<a id="pl.16.12"></a><var>16.12</var>contracting authority must receive evidence from the contractor, subcontractor, or agent <br/>
<a id="pl.16.13"></a><var>16.13</var>that the proper minimum rate has been paid to the person who owns and operates the truck <br/>
<a id="pl.16.14"></a><var>16.14</var>in a form approved by the Department of Transportation.<br/>
<a id="pl.16.15"></a><var>16.15</var>    Subd. 4. <b>Certification of hours and rate.</b> The commissioner of labor and industry <br/>
<a id="pl.16.16"></a><var>16.16</var>shall at least once a year certify the prevailing hours of labor, the prevailing wage rate, <br/>
<a id="pl.16.17"></a><var>16.17</var>and the hourly basic rate of pay for all classes of laborers and or mechanics referred to <br/>
<a id="pl.16.18"></a><var>16.18</var>in subdivision 3 in each area. The certification must also include future hours and rates <br/>
<a id="pl.16.19"></a><var>16.19</var>when they can be determined for classes of laborers and or mechanics in an area. The <br/>
<a id="pl.16.20"></a><var>16.20</var>certification must specifically state the effective dates of future hours and rates when they <br/>
<a id="pl.16.21"></a><var>16.21</var>are certified. If a construction project extends into more than one area there shall be only <br/>
<a id="pl.16.22"></a><var>16.22</var>one standard of hours of labor and wage rates for the entire project, all applicable area <br/>
<a id="pl.16.23"></a><var>16.23</var>wage determinations must be contained in the contract and the hours of labor and wage <br/>
<a id="pl.16.24"></a><var>16.24</var>rates paid the laborer or mechanic must be specific to the areas in which the work is <br/>
<a id="pl.16.25"></a><var>16.25</var>performed. A person aggrieved by a final determination of the commissioner may petition <br/>
<a id="pl.16.26"></a><var>16.26</var>the commissioner for reconsideration of findings within 20 days of the publication or <br/>
<a id="pl.16.27"></a><var>16.27</var>decision. A person aggrieved by a decision of the commissioner after reconsideration may <br/>
<a id="pl.16.28"></a><var>16.28</var>within 20 days after the decision petition the commissioner for a public hearing as in a <br/>
<a id="pl.16.29"></a><var>16.29</var>contested case under sections 
         <statute_ref>14.57</statute_ref> to 
         <statute_ref>14.61</statute_ref>. If the commissioner finds that a change in <br/>
<a id="pl.16.30"></a><var>16.30</var>the certified prevailing hours of labor, prevailing wage rate, and the hourly basic rate of <br/>
<a id="pl.16.31"></a><var>16.31</var>pay for a class of laborers or mechanics in any area is required, the commissioner may at <br/>
<a id="pl.16.32"></a><var>16.32</var>any time certify that change and the certified change is effective on a project advertised <br/>
<a id="pl.16.33"></a><var>16.33</var>for bid on or after the date of certification. <br/>
<a id="pl.16.34"></a><var>16.34</var>    Subd. 5. <b>Hours and rates to be posted.</b> The prevailing hours of labor, the <br/>
<a id="pl.16.35"></a><var>16.35</var>prevailing wage rates, the hourly basic rates of pay, and classifications for all labor as <br/>
<a id="pl.16.36"></a><var>16.36</var>certified by the commissioner must be specifically stated in the proposals and contracts <br/>
<a id="pl.17.1"></a><var>17.1</var>for each highway construction contract to which the state is a party. transportation <br/>
<a id="pl.17.2"></a><var>17.2</var>contract which is funded in whole or in part with state funds. In addition to the wage <br/>
<a id="pl.17.3"></a><var>17.3</var>determinations issued by the Department of Labor and Industry, the contracting authority <br/>
<a id="pl.17.4"></a><var>17.4</var>must incorporate into its proposals and contracts the contract language provided by the <br/>
<a id="pl.17.5"></a><var>17.5</var>commissioner of transportation to notify the contractor of the application of sections <br/>
<a id="pl.17.6"></a><var>17.6</var>177.41 to 177.46. Failure to incorporate the proper determination into the contracts makes <br/>
<a id="pl.17.7"></a><var>17.7</var>the contracting authority liable for making the contractor whole for the increases in the <br/>
<a id="pl.17.8"></a><var>17.8</var>wages paid, including employment taxes and reasonable administrative costs based on the <br/>
<a id="pl.17.9"></a><var>17.9</var>increased wages, to the laborers or mechanics working on the project. The contracting <br/>
<a id="pl.17.10"></a><var>17.10</var>authority is authorized to incorporate into the bid documents for each project a compliance <br/>
<a id="pl.17.11"></a><var>17.11</var>monitoring surcharge provision. The surcharge shall be a percentage of the engineer's <br/>
<a id="pl.17.12"></a><var>17.12</var>estimate of the project. The surcharge percentage shall be either an amount set annually <br/>
<a id="pl.17.13"></a><var>17.13</var>by the commissioner for all projects after investigation to determine the expected costs <br/>
<a id="pl.17.14"></a><var>17.14</var>of monitoring compliance, or an amount requested by the contracting authority and <br/>
<a id="pl.17.15"></a><var>17.15</var>authorized by the commissioner, and will be a percentage sufficient, to pay the estimated <br/>
<a id="pl.17.16"></a><var>17.16</var>cost to the contracting authority of monitoring compliance with sections 177.41 to 177.46. <br/>
<a id="pl.17.17"></a><var>17.17</var>The surcharge shall be incorporated into the contract for the project and paid by the <br/>
<a id="pl.17.18"></a><var>17.18</var>contractor to the contracting authority within two weeks of the payment by the contracting <br/>
<a id="pl.17.19"></a><var>17.19</var>authority of the mobilization cost for the project as specified in the successful bid. The <br/>
<a id="pl.17.20"></a><var>17.20</var>contracting authority shall use this surcharge exclusively to defray costs of monitoring <br/>
<a id="pl.17.21"></a><var>17.21</var>compliance with sections 177.41 to 177.46.<br/>
<a id="pl.17.22"></a><var>17.22</var>    These hours, rates, and classifications, together with the name of the project engineer <br/>
<a id="pl.17.23"></a><var>17.23</var>or agency contact person, telephone number, project identification numbers, and a <br/>
<a id="pl.17.24"></a><var>17.24</var>summary of the provisions of subdivision 6, and a summary of section 177.46, must be <br/>
<a id="pl.17.25"></a><var>17.25</var>kept posted directly on the project by the employer contractor in at least one conspicuous <br/>
<a id="pl.17.26"></a><var>17.26</var>place and accessible location for the information of employees all laborers or mechanics <br/>
<a id="pl.17.27"></a><var>17.27</var>working on the project. The contracting authority must ensure the contractor keeps the <br/>
<a id="pl.17.28"></a><var>17.28</var>required information on the project from the start of work until all work is completed <br/>
<a id="pl.17.29"></a><var>17.29</var>on the project.<br/>
<a id="pl.17.30"></a><var>17.30</var>    Subd. 6. <b>Penalties</b><b> Penalties: criminal, civil, and debarment</b><b>.</b> (a) It is a violation <br/>
<a id="pl.17.31"></a><var>17.31</var>for an officer or employee of the state or contracting authority to knowingly execute <br/>
<a id="pl.17.32"></a><var>17.32</var>a contract for a project without the wage determination or contract language provided <br/>
<a id="pl.17.33"></a><var>17.33</var>by the commissioner of transportation on the application of this section, or knowingly <br/>
<a id="pl.17.34"></a><var>17.34</var>close a contract with violations of this section or assessments by the commissioner of <br/>
<a id="pl.17.35"></a><var>17.35</var>transportation. A violation may be subject to the penalties under section 609.43.<br/>
<a id="pl.18.1"></a><var>18.1</var>    A contractor, subcontractor, or agent who violates this section is guilty of a gross <br/>
<a id="pl.18.2"></a><var>18.2</var>misdemeanor for the first conviction of a criminal offense under this section and may <br/>
<a id="pl.18.3"></a><var>18.3</var>must be fined for each violation not more than $300 $3,000 or imprisoned not more than <br/>
<a id="pl.18.4"></a><var>18.4</var>90 days one year or both, and required to reimburse the county attorney or attorney <br/>
<a id="pl.18.5"></a><var>18.5</var>general for the cost of prosecution. Each day that the violation continues is a separate <br/>
<a id="pl.18.6"></a><var>18.6</var>offense. It is a felony for the second criminal conviction of a contractor, subcontractor, <br/>
<a id="pl.18.7"></a><var>18.7</var>or agent for violations of this section, or for a criminal conviction of a total unpaid back <br/>
<a id="pl.18.8"></a><var>18.8</var>wage assessment by the commissioner of transportation against the violating contractor, <br/>
<a id="pl.18.9"></a><var>18.9</var>subcontractor, or agent in excess of $100,000, and must be fined for the violation not more <br/>
<a id="pl.18.10"></a><var>18.10</var>than $10,000, or imprisoned no more than five years, or both, and required to reimburse <br/>
<a id="pl.18.11"></a><var>18.11</var>the county attorney or the attorney general for the cost of prosecution. Each day that the <br/>
<a id="pl.18.12"></a><var>18.12</var>violation continues is a separate offense.<br/>
<a id="pl.18.13"></a><var>18.13</var>    Whoever induces a job applicant or employee on any project subject to this section <br/>
<a id="pl.18.14"></a><var>18.14</var>to give up or forego any part of the wages to which entitled under the contract governing <br/>
<a id="pl.18.15"></a><var>18.15</var>the project by threat not to employ, by threat of dismissal from employment, or by any <br/>
<a id="pl.18.16"></a><var>18.16</var>other means, or knowingly alters official company employment or time records to falsely <br/>
<a id="pl.18.17"></a><var>18.17</var>report the employee's pay, may be fined not exceeding $1,000 $3,000 or imprisoned not <br/>
<a id="pl.18.18"></a><var>18.18</var>more than one year, or both. Each day that the violation continues is a separate offense.<br/>
<a id="pl.18.19"></a><var>18.19</var>    Any employee under this section who knowingly permits the contractor or, <br/>
<a id="pl.18.20"></a><var>18.20</var>subcontractor, or agent to pay less than the prevailing wage rate set forth in the contract, <br/>
<a id="pl.18.21"></a><var>18.21</var>or who gives up any part of the compensation to which entitled under the contract, may <br/>
<a id="pl.18.22"></a><var>18.22</var>be fined not exceeding $40 or imprisoned not more than 30 days, or both. Each day any <br/>
<a id="pl.18.23"></a><var>18.23</var>violation of this paragraph continues is a separate offense.<br/>
<a id="pl.18.24"></a><var>18.24</var>    In addition to or instead of criminal prosecution under this subdivision, the <br/>
<a id="pl.18.25"></a><var>18.25</var>commissioner of transportation may engage in any civil enforcement actions authorized <br/>
<a id="pl.18.26"></a><var>18.26</var>by this section or section 177.45.<br/>
<a id="pl.18.27"></a><var>18.27</var>    (b) Penalties to be assessed by the contracting authorities. The contracting authority <br/>
<a id="pl.18.28"></a><var>18.28</var>may deduct from what is owed the contractor on the project for civil penalties and <br/>
<a id="pl.18.29"></a><var>18.29</var>assessments as defined by this section and provisions of section 177.44.<br/>
<a id="pl.18.30"></a><var>18.30</var>    (1) After written notification by the contracting authority, a civil penalty of $100 <br/>
<a id="pl.18.31"></a><var>18.31</var>per day shall be assessed against the contractor for each day work is performed on the <br/>
<a id="pl.18.32"></a><var>18.32</var>project and the poster board is not placed or maintained on the project work site at a <br/>
<a id="pl.18.33"></a><var>18.33</var>location acceptable to the contracting authority.<br/>
<a id="pl.18.34"></a><var>18.34</var>    (2) After written notification by the contracting authority, a civil penalty of $100 per <br/>
<a id="pl.18.35"></a><var>18.35</var>week against the contractor for each week the contractor's certified payrolls or any of the <br/>
<a id="pl.18.36"></a><var>18.36</var>individual subcontractor or agent-certified payrolls are not submitted.<br/>
<a id="pl.19.1"></a><var>19.1</var>    (3) After written notification by the contracting authority, a civil penalty of $50 per <br/>
<a id="pl.19.2"></a><var>19.2</var>week shall be assessed against the contractor for each week that the subcontractor or agent <br/>
<a id="pl.19.3"></a><var>19.3</var>forms as defined in section 177.44, subdivision 7, are not submitted.<br/>
<a id="pl.19.4"></a><var>19.4</var>    (4) After written notification by the contracting authority, a civil penalty of $100 <br/>
<a id="pl.19.5"></a><var>19.5</var>may be assessed against the contractor for each week the approved trucking form as <br/>
<a id="pl.19.6"></a><var>19.6</var>described in section 177.44, subdivision 3, is not submitted.<br/>
<a id="pl.19.7"></a><var>19.7</var>    (c) A contractor, subcontractor, or agent that is convicted criminally or held liable <br/>
<a id="pl.19.8"></a><var>19.8</var>civilly under this section must be debarred by the commissioner of transportation under <br/>
<a id="pl.19.9"></a><var>19.9</var>section 161.315 from working on any contracts funded in whole or in part with state funds <br/>
<a id="pl.19.10"></a><var>19.10</var>as a contractor, subcontractor, agent, or material supplier for a period of at least one year <br/>
<a id="pl.19.11"></a><var>19.11</var>and not more than three years. The commissioner of transportation shall report a debarred <br/>
<a id="pl.19.12"></a><var>19.12</var>entity to the commissioner of labor and industry for publication. If any contracting <br/>
<a id="pl.19.13"></a><var>19.13</var>authority has debarred an entity for prevailing wage violations, the contracting authority <br/>
<a id="pl.19.14"></a><var>19.14</var>must report the debarment to the commissioner of labor and industry. All contracting <br/>
<a id="pl.19.15"></a><var>19.15</var>authorities are required to review the list of debarred entities and may not contact with a <br/>
<a id="pl.19.16"></a><var>19.16</var>debarred entity or allow a debarred entity to work on any project as a subcontractor, <br/>
<a id="pl.19.17"></a><var>19.17</var>material supplier, or in any other capacity.<br/>
<a id="pl.19.18"></a><var>19.18</var>    Subd. 7. <b>Department of Transportation to enforce.</b> The Department of <br/>
<a id="pl.19.19"></a><var>19.19</var>Transportation shall require adherence to this section. The commissioner of transportation <br/>
<a id="pl.19.20"></a><var>19.20</var>may demand and every contractor and subcontractor shall furnish copies of payrolls. all <br/>
<a id="pl.19.21"></a><var>19.21</var>sections relating to sections 177.41 to 177.46 on active project contracts for which the <br/>
<a id="pl.19.22"></a><var>19.22</var>Department of Transportation is the contracting authority, or on active contracts that <br/>
<a id="pl.19.23"></a><var>19.23</var>the commissioner of transportation has been delegated authority to be the contracting <br/>
<a id="pl.19.24"></a><var>19.24</var>authority, or on active contracts that the commissioner of transportation has been delegated <br/>
<a id="pl.19.25"></a><var>19.25</var>authority to be the contracting authority, or on active contracts that the commissioner <br/>
<a id="pl.19.26"></a><var>19.26</var>of transportation has authority to oversee the distribution of constitutional mandated <br/>
<a id="pl.19.27"></a><var>19.27</var>state funding to other local governmental bodies, or units of government, or political <br/>
<a id="pl.19.28"></a><var>19.28</var>subdivisions who act as the contracting authority. The Department of Transportation <br/>
<a id="pl.19.29"></a><var>19.29</var>shall maintain a staff of at least five investigators to ensure compliance on the projects. <br/>
<a id="pl.19.30"></a><var>19.30</var>The commissioner of transportation or contracting authority shall hold confidential any <br/>
<a id="pl.19.31"></a><var>19.31</var>complaint filed by a laborer or mechanic or filed on behalf of a laborer or mechanic.<br/>
<a id="pl.19.32"></a><var>19.32</var>    The contracting authority must require weekly submittal of certified payrolls from <br/>
<a id="pl.19.33"></a><var>19.33</var>every contractor and subcontractor or agent performing work under the contract. The <br/>
<a id="pl.19.34"></a><var>19.34</var>contractor must submit certified payrolls for the contractor's own workforce along with <br/>
<a id="pl.19.35"></a><var>19.35</var>payrolls from all subcontractors and agents working on the project. The contracting <br/>
<a id="pl.19.36"></a><var>19.36</var>authority must maintain the payrolls under the contracting agency's normal record <br/>
<a id="pl.20.1"></a><var>20.1</var>retention schedules for a minimum of two years past the closing of the contract. Each <br/>
<a id="pl.20.2"></a><var>20.2</var>contracting authority must redact the Social Security number and address of each laborer <br/>
<a id="pl.20.3"></a><var>20.3</var>or mechanic from each certified payroll before any person other than an employee of the <br/>
<a id="pl.20.4"></a><var>20.4</var>contracting authority, the Department of Transportation, or the Department of Labor and <br/>
<a id="pl.20.5"></a><var>20.5</var>Industry is allowed to review the certified payroll. Certified payrolls must be submitted <br/>
<a id="pl.20.6"></a><var>20.6</var>within one week after the week ending date of the week in which the work was performed. <br/>
<a id="pl.20.7"></a><var>20.7</var>Each subcontractor or agent must furnish to the contractor weekly certified payrolls that <br/>
<a id="pl.20.8"></a><var>20.8</var>demonstrate compliance with this section. The commissioner of transportation may <br/>
<a id="pl.20.9"></a><var>20.9</var>deduct from what is owed the contractor on the project or after written notification, any <br/>
<a id="pl.20.10"></a><var>20.10</var>other state-funded projects under the commissioner of transportation's authority that the <br/>
<a id="pl.20.11"></a><var>20.11</var>contractor is working on, any penalties or back wage assessments. The contracting <br/>
<a id="pl.20.12"></a><var>20.12</var>authority may deduct from what is owed the contractor on the project for civil penalties <br/>
<a id="pl.20.13"></a><var>20.13</var>and assessments for violations on the project. The contracting authority shall interview <br/>
<a id="pl.20.14"></a><var>20.14</var>laborers or mechanics on the project site and shall randomly review the weekly certified <br/>
<a id="pl.20.15"></a><var>20.15</var>payrolls, subcontract agreements, project documentation, and employee interviews if the <br/>
<a id="pl.20.16"></a><var>20.16</var>contractor has demonstrated compliance with this section. The contracting authority <br/>
<a id="pl.20.17"></a><var>20.17</var>has authority to request all records relating to the hours of work, wages paid, or cost of <br/>
<a id="pl.20.18"></a><var>20.18</var>providing fringe benefits, to laborers and mechanics performing work under a contract <br/>
<a id="pl.20.19"></a><var>20.19</var>to determine compliance with sections 177.41 to 177.46. In addition, the contractor <br/>
<a id="pl.20.20"></a><var>20.20</var>may interview all laborers or mechanics on the project and review subcontractor or <br/>
<a id="pl.20.21"></a><var>20.21</var>agents' payroll information to ensure compliance with this section. If a contracting <br/>
<a id="pl.20.22"></a><var>20.22</var>authority is unable to achieve or determine compliance on a project, the commissioner of <br/>
<a id="pl.20.23"></a><var>20.23</var>transportation must be notified in writing of the problems or violations.<br/>
<a id="pl.20.24"></a><var>20.24</var>    The contractor must incorporate into all subcontract agreements, purchase orders, or <br/>
<a id="pl.20.25"></a><var>20.25</var>other written agreements which provide for work covered by this section the contract wage <br/>
<a id="pl.20.26"></a><var>20.26</var>determination and the contract language provided by the commissioner of transportation <br/>
<a id="pl.20.27"></a><var>20.27</var>contained in the contract. The contractor must also ensure that all secondary subcontract <br/>
<a id="pl.20.28"></a><var>20.28</var>agreements, purchase orders, or other written agreements which provide for work covered <br/>
<a id="pl.20.29"></a><var>20.29</var>by this section contain the same language. The contractor must provide a written certified <br/>
<a id="pl.20.30"></a><var>20.30</var>confirmation on a form provided by the contracting authority that all subcontractors and <br/>
<a id="pl.20.31"></a><var>20.31</var>agents have received the required contract wage determinations and contract language. <br/>
<a id="pl.20.32"></a><var>20.32</var>The form must be provided to the contracting authority prior to any subcontractor or agent <br/>
<a id="pl.20.33"></a><var>20.33</var>working on the project. If the contractor does not provide the information required to the <br/>
<a id="pl.20.34"></a><var>20.34</var>subcontractor or agents, or the form to the contracting authority, the contractor must be the <br/>
<a id="pl.20.35"></a><var>20.35</var>sole entity responsible for any contracting authority or commissioner's assessment.<br/>
<a id="pl.21.1"></a><var>21.1</var>    The commissioner of transportation may examine all business, employment, <br/>
<a id="pl.21.2"></a><var>21.2</var>and time records and other documents relating to hours of work and the wages paid <br/>
<a id="pl.21.3"></a><var>21.3</var>laborers and or mechanics on work to which considered necessary by the commissioner <br/>
<a id="pl.21.4"></a><var>21.4</var>of transportation to ensure compliance with this section applies. Upon request of the <br/>
<a id="pl.21.5"></a><var>21.5</var>Department of Transportation or upon complaint of alleged violation, the county attorney <br/>
<a id="pl.21.6"></a><var>21.6</var>of the county in which the work is located shall investigate and prosecute violations in a <br/>
<a id="pl.21.7"></a><var>21.7</var>court of competent jurisdiction.<br/>
<a id="pl.21.8"></a><var>21.8</var>    If the commissioner of transportation determines that a violation has occurred, the <br/>
<a id="pl.21.9"></a><var>21.9</var>commissioner of transportation shall determine the amount of back wages owed to the <br/>
<a id="pl.21.10"></a><var>21.10</var>affected laborer or mechanic, plus a civil penalty equal to 100 percent of the back wages <br/>
<a id="pl.21.11"></a><var>21.11</var>owed, to be paid to the affected laborer or mechanic, and an additional civil penalty equal <br/>
<a id="pl.21.12"></a><var>21.12</var>to 100 percent of the back wages owed to be paid to the commissioner of transportation <br/>
<a id="pl.21.13"></a><var>21.13</var>and to be deposited into a dedicated fund to be used by the Department of Transportation <br/>
<a id="pl.21.14"></a><var>21.14</var>for future prevailing wage enforcement, educational, and outreach programs and assess <br/>
<a id="pl.21.15"></a><var>21.15</var>the total amount of back wages owed and penalties against the violating contractor, <br/>
<a id="pl.21.16"></a><var>21.16</var>subcontractor, or agent accordingly. If there is a determination that a violation has <br/>
<a id="pl.21.17"></a><var>21.17</var>occurred, the commissioner of transportation may investigate all other open and closed <br/>
<a id="pl.21.18"></a><var>21.18</var>contracts, requiring payment of prevailing wages, on which that contractor, subcontractor, <br/>
<a id="pl.21.19"></a><var>21.19</var>or agent performed any work within the previous two years.<br/>
<a id="pl.21.20"></a><var>21.20</var>    (1) For investigations on projects where the contracting authority is the Department <br/>
<a id="pl.21.21"></a><var>21.21</var>of Transportation, the project engineer and contractor must be notified in writing of the <br/>
<a id="pl.21.22"></a><var>21.22</var>violations and determination of assessments. If the violating contractor, subcontractor, or <br/>
<a id="pl.21.23"></a><var>21.23</var>agent does not comply with the commissioner of transportation's assessment within 20 <br/>
<a id="pl.21.24"></a><var>21.24</var>days of written notification, the commissioner of transportation must cause to be withheld <br/>
<a id="pl.21.25"></a><var>21.25</var>from any money owed the contractor by the Department of Transportation a reasonable <br/>
<a id="pl.21.26"></a><var>21.26</var>amount to ensure compliance with the assessments.<br/>
<a id="pl.21.27"></a><var>21.27</var>    (2) For investigations where the contracting authority is a local governmental body <br/>
<a id="pl.21.28"></a><var>21.28</var>or political subdivision of the state, the commissioner of transportation shall notify in <br/>
<a id="pl.21.29"></a><var>21.29</var>writing the contracting authority and the contractor of the violations and determination of <br/>
<a id="pl.21.30"></a><var>21.30</var>assessments and the contracting authority shall withhold a reasonable amount to ensure <br/>
<a id="pl.21.31"></a><var>21.31</var>compliance with the commissioner of transportation's determination. The contracting <br/>
<a id="pl.21.32"></a><var>21.32</var>authority must require adherence to the commissioner of transportation's assessment.<br/>
<a id="pl.21.33"></a><var>21.33</var>    After 60 days of written notification, the commissioner of transportation shall <br/>
<a id="pl.21.34"></a><var>21.34</var>consider the unpaid assessment as an unresolved violation of this section. The <br/>
<a id="pl.21.35"></a><var>21.35</var>commissioner of transportation shall report any unresolved violations, willful violations, <br/>
<a id="pl.21.36"></a><var>21.36</var>or second offense violations of a similar nature, of this section to both the county attorney <br/>
<a id="pl.22.1"></a><var>22.1</var>where the alleged violation occurred and to the attorney general. A county attorney shall <br/>
<a id="pl.22.2"></a><var>22.2</var>notify the commissioner of transportation and the attorney general upon commencing an <br/>
<a id="pl.22.3"></a><var>22.3</var>action for a violation of this section. The county attorney shall also give notice to the <br/>
<a id="pl.22.4"></a><var>22.4</var>commissioner of transportation and the attorney general of the outcome of the action, <br/>
<a id="pl.22.5"></a><var>22.5</var>including detailed reasons for the dismissal or settlement of an action pursuant to a plea <br/>
<a id="pl.22.6"></a><var>22.6</var>agreement that awards less than the maximum penalties for a violation of this section. The <br/>
<a id="pl.22.7"></a><var>22.7</var>commissioner of transportation shall notify the contracting authority.<br/>
<a id="pl.22.8"></a><var>22.8</var>    If the attorney general does not receive notice of the commencement of an action <br/>
<a id="pl.22.9"></a><var>22.9</var>by a county attorney, as required by this subdivision, within six months of receiving <br/>
<a id="pl.22.10"></a><var>22.10</var>an unresolved violation report from the commissioner of transportation, the attorney <br/>
<a id="pl.22.11"></a><var>22.11</var>general shall pursue the suspected violation in a court of competent jurisdiction, unless the <br/>
<a id="pl.22.12"></a><var>22.12</var>attorney general and commissioner of transportation agree that civil enforcement will be <br/>
<a id="pl.22.13"></a><var>22.13</var>sufficient to effectuate the policies of sections 177.41 to 177.46.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.22.14"></a><var>22.14</var>    Sec. 12. <b>[177.45] INVESTIGATIONS AND SUBPOENAS.</b><br/>
<a id="pl.22.15"></a><var>22.15</var>    Subdivision 1. <b>General powers.</b> For the purposes of this section, "commissioner" <br/>
<a id="pl.22.16"></a><var>22.16</var>means the commissioner of labor and industry with respect to duties and responsibilities <br/>
<a id="pl.22.17"></a><var>22.17</var>entrusted to the commissioner of labor and industry by sections 177.41 to 177.46, and <br/>
<a id="pl.22.18"></a><var>22.18</var>the commissioner of transportation with respect to duties and responsibilities entrusted to <br/>
<a id="pl.22.19"></a><var>22.19</var>the commissioner of transportation by sections 177.41 to 177.46. In connection with the <br/>
<a id="pl.22.20"></a><var>22.20</var>duties and responsibilities entrusted to each commissioner pursuant to sections 177.41 to <br/>
<a id="pl.22.21"></a><var>22.21</var>177.46, each commissioner may:<br/>
<a id="pl.22.22"></a><var>22.22</var>    (1) conduct investigations necessary to determine whether any person has violated <br/>
<a id="pl.22.23"></a><var>22.23</var>or is about to violate this section;<br/>
<a id="pl.22.24"></a><var>22.24</var>    (2) require or permit any person to file a statement in writing, under oath, or <br/>
<a id="pl.22.25"></a><var>22.25</var>otherwise as the commissioner determines, as to all the facts and circumstances concerning <br/>
<a id="pl.22.26"></a><var>22.26</var>the matter being investigated;<br/>
<a id="pl.22.27"></a><var>22.27</var>    (3) hold hearings, upon reasonable notice, in respect to any matter arising out of the <br/>
<a id="pl.22.28"></a><var>22.28</var>duties and responsibilities entrusted to the commissioner;<br/>
<a id="pl.22.29"></a><var>22.29</var>    (4) conduct investigations and hold hearings for the purpose of compiling <br/>
<a id="pl.22.30"></a><var>22.30</var>information related to the duties and responsibilities entrusted to the commissioner;<br/>
<a id="pl.22.31"></a><var>22.31</var>    (5) examine the books, accounts, records, and files of every contractor, subcontractor, <br/>
<a id="pl.22.32"></a><var>22.32</var>or agent and of every person who is engaged in work under a contract subject to sections <br/>
<a id="pl.22.33"></a><var>22.33</var>177.41 to 177.46; the commissioner or a designated representative must have free access <br/>
<a id="pl.22.34"></a><var>22.34</var>during normal business hours to the offices and places of business of the person, and to <br/>
<a id="pl.23.1"></a><var>23.1</var>all books, accounts, papers, records, files, safes, and vaults maintained in the place of <br/>
<a id="pl.23.2"></a><var>23.2</var>business; and<br/>
<a id="pl.23.3"></a><var>23.3</var>    (6) publish information that is contained in any order issued by the commissioner.<br/>
<a id="pl.23.4"></a><var>23.4</var>    Subd. 2. <b>Response to department requests.</b> A contractor, subcontractor, <br/>
<a id="pl.23.5"></a><var>23.5</var>agent, or other person performing work under a contract subject to the jurisdiction of <br/>
<a id="pl.23.6"></a><var>23.6</var>the commissioner must comply with requests for information, documents, or other <br/>
<a id="pl.23.7"></a><var>23.7</var>requests from the department within the time specified in the request, or, if no time is <br/>
<a id="pl.23.8"></a><var>23.8</var>specified, within 30 days of the mailing of the request by the department. A contractor, <br/>
<a id="pl.23.9"></a><var>23.9</var>subcontractor, agent, or other person subject to the jurisdiction of the commissioner must <br/>
<a id="pl.23.10"></a><var>23.10</var>appear before the commissioner or the commissioner's representative when requested to <br/>
<a id="pl.23.11"></a><var>23.11</var>do so and bring all documents or materials that the commissioner or the commissioner's <br/>
<a id="pl.23.12"></a><var>23.12</var>representative has requested.<br/>
<a id="pl.23.13"></a><var>23.13</var>    Subd. 3. <b>Power to compel production of evidence.</b> For the purpose of any <br/>
<a id="pl.23.14"></a><var>23.14</var>investigation, hearing, proceeding, or inquiry related to the duties and responsibilities <br/>
<a id="pl.23.15"></a><var>23.15</var>entrusted to the commissioner, the commissioner or a designated representative may <br/>
<a id="pl.23.16"></a><var>23.16</var>administer oaths and affirmations, subpoena witnesses, compel attendance, take evidence, <br/>
<a id="pl.23.17"></a><var>23.17</var>and require the production of books, papers, correspondence, memoranda, agreements, <br/>
<a id="pl.23.18"></a><var>23.18</var>or other documents or records that the commissioner considers relevant or material <br/>
<a id="pl.23.19"></a><var>23.19</var>to the inquiry.<br/>
<a id="pl.23.20"></a><var>23.20</var>    Subd. 4. <b>Court orders.</b> In case of a refusal to appear or a refusal to obey a subpoena <br/>
<a id="pl.23.21"></a><var>23.21</var>issued to any person, the district court, upon application by the commissioner, may issue <br/>
<a id="pl.23.22"></a><var>23.22</var>to any person an order directing that person to appear before the commissioner or the <br/>
<a id="pl.23.23"></a><var>23.23</var>officer designated by the commissioner and produce documentary evidence if so ordered <br/>
<a id="pl.23.24"></a><var>23.24</var>or give evidence relating to the matter under investigation or in question. Failure to obey <br/>
<a id="pl.23.25"></a><var>23.25</var>the order of the court may be punished by the court as a contempt of court.<br/>
<a id="pl.23.26"></a><var>23.26</var>    Subd. 5. <b>Scope of privilege.</b> No person is excused from attending and testifying <br/>
<a id="pl.23.27"></a><var>23.27</var>or from producing any document or record before the commissioner or from obedience <br/>
<a id="pl.23.28"></a><var>23.28</var>to the subpoena of the commissioner or any officer designated by the commissioner or <br/>
<a id="pl.23.29"></a><var>23.29</var>in a proceeding instituted by the commissioner, on the ground that the testimony or <br/>
<a id="pl.23.30"></a><var>23.30</var>evidence required may tend to incriminate that person or subject that person to a penalty <br/>
<a id="pl.23.31"></a><var>23.31</var>of forfeiture. No person may be prosecuted or subjected to a penalty or forfeiture for or <br/>
<a id="pl.23.32"></a><var>23.32</var>on account of a transaction, matter, or thing concerning which the person is compelled, <br/>
<a id="pl.23.33"></a><var>23.33</var>after claiming the privilege against self-incrimination, to testify or produce evidence, <br/>
<a id="pl.23.34"></a><var>23.34</var>documentary or otherwise, except that the individual is not exempt from prosecution and <br/>
<a id="pl.23.35"></a><var>23.35</var>punishment for perjury or contempt committed in testifying.<br/>
<a id="pl.24.1"></a><var>24.1</var>    Subd. 6. <b>Compliance orders.</b> The commissioner may issue an order requiring a <br/>
<a id="pl.24.2"></a><var>24.2</var>contractor, subcontractor, or agent to comply with an assessment issued by an investigator <br/>
<a id="pl.24.3"></a><var>24.3</var>pursuant to section 177.43 or 177.44. The department shall serve the order upon the <br/>
<a id="pl.24.4"></a><var>24.4</var>contractor, subcontractor, or agent, or the party's authorized representative, in person <br/>
<a id="pl.24.5"></a><var>24.5</var>or by certified mail at the contractor's, subcontractor's, or agent's place of business. A <br/>
<a id="pl.24.6"></a><var>24.6</var>contractor, subcontractor, or agent who wishes to contest the order must file written notice <br/>
<a id="pl.24.7"></a><var>24.7</var>of objection to the order with the commissioner within 15 calendar days after being served <br/>
<a id="pl.24.8"></a><var>24.8</var>with the order. A contested case proceeding must then be held according to sections 14.57 <br/>
<a id="pl.24.9"></a><var>24.9</var>to 14.69. If, within 15 calendar days after being served with the order, the contractor, <br/>
<a id="pl.24.10"></a><var>24.10</var>subcontractor, or agent fails to file a written notice of objection with the commissioner, the <br/>
<a id="pl.24.11"></a><var>24.11</var>order becomes a final order of the commissioner.<br/>
<a id="pl.24.12"></a><var>24.12</var>    Subd. 7. <b>Contractor, subcontractor, or agent liability.</b> If the commissioner issues <br/>
<a id="pl.24.13"></a><var>24.13</var>a compliance order under subdivision 6, the commissioner shall order the contractor, <br/>
<a id="pl.24.14"></a><var>24.14</var>subcontractor, or agent to cease and desist from engaging in the violative practice and <br/>
<a id="pl.24.15"></a><var>24.15</var>to take such affirmative steps that in the judgment of the commissioner will effectuate <br/>
<a id="pl.24.16"></a><var>24.16</var>the purposes of the section violated. The commissioner shall order the contractor, <br/>
<a id="pl.24.17"></a><var>24.17</var>subcontractor, or agent to pay the assessed amounts to the department and the department <br/>
<a id="pl.24.18"></a><var>24.18</var>shall distribute to the affected laborers or mechanics the portions of the assessment <br/>
<a id="pl.24.19"></a><var>24.19</var>designated for the laborer or mechanic. Any contractor, subcontractor, or agent that is <br/>
<a id="pl.24.20"></a><var>24.20</var>found by the commissioner to have repeatedly or willfully violated a section or sections <br/>
<a id="pl.24.21"></a><var>24.21</var>identified in subdivision 6 shall be subject to a civil penalty of up to $1,000 for each <br/>
<a id="pl.24.22"></a><var>24.22</var>violation for each laborer or mechanic. In determining the amount of a civil penalty <br/>
<a id="pl.24.23"></a><var>24.23</var>under this subdivision, the appropriateness of the penalty to the size of the contractor's, <br/>
<a id="pl.24.24"></a><var>24.24</var>subcontractor's, or agent's business and the gravity of the violation shall be considered. <br/>
<a id="pl.24.25"></a><var>24.25</var>In addition, the commissioner may order the contractor, subcontractor, or agent to <br/>
<a id="pl.24.26"></a><var>24.26</var>reimburse the department and the attorney general for all appropriate litigation and hearing <br/>
<a id="pl.24.27"></a><var>24.27</var>costs expended in preparation for and in conducting the contested case proceeding, <br/>
<a id="pl.24.28"></a><var>24.28</var>unless payment of costs would impose extreme financial hardship on the contractor, <br/>
<a id="pl.24.29"></a><var>24.29</var>subcontractor, or agent. If the contractor, subcontractor, or agent is able to establish <br/>
<a id="pl.24.30"></a><var>24.30</var>extreme financial hardship, then the commissioner may order the contractor, subcontractor, <br/>
<a id="pl.24.31"></a><var>24.31</var>or agent to pay a percentage of the total costs that will not cause extreme financial <br/>
<a id="pl.24.32"></a><var>24.32</var>hardship. Costs include but are not limited to the costs of services rendered by the attorney <br/>
<a id="pl.24.33"></a><var>24.33</var>general, attorneys for the department, private attorneys if engaged by the department, <br/>
<a id="pl.24.34"></a><var>24.34</var>administrative law judges, court reporters, expert witnesses, and the cost of transcripts. <br/>
<a id="pl.24.35"></a><var>24.35</var>Interest shall accrue on and be added to the unpaid balance of a commissioner's order from <br/>
<a id="pl.24.36"></a><var>24.36</var>the date the order is signed by the commissioner until it is paid, at an annual rate provided <br/>
<a id="pl.25.1"></a><var>25.1</var>in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow <br/>
<a id="pl.25.2"></a><var>25.2</var>accounts for purposes of distributing damages.<br/>
<a id="pl.25.3"></a><var>25.3</var>    Subd. 8. <b>Civil actions.</b> The commissioner may bring an action in the district court <br/>
<a id="pl.25.4"></a><var>25.4</var>where a contractor, subcontractor, or agent resides or where the commissioner maintains <br/>
<a id="pl.25.5"></a><var>25.5</var>an office to enforce or require compliance with orders issued under subdivision 6 or 7.<br/>
<a id="pl.25.6"></a><var>25.6</var>    Subd. 9. <b>Legal actions; injunctions.</b> Whenever it appears to the commissioner that <br/>
<a id="pl.25.7"></a><var>25.7</var>a person has engaged or is about to engage in any act or practice constituting a violation of <br/>
<a id="pl.25.8"></a><var>25.8</var>this section or order related to the duties and responsibilities entrusted to the commissioner, <br/>
<a id="pl.25.9"></a><var>25.9</var>the commissioner may bring an action in the name of the state in Ramsey County District <br/>
<a id="pl.25.10"></a><var>25.10</var>Court or the district court of an appropriate county to enjoin the acts or practices and to <br/>
<a id="pl.25.11"></a><var>25.11</var>enforce compliance, or the commissioner may refer the matter to the attorney general or <br/>
<a id="pl.25.12"></a><var>25.12</var>the county attorney of the appropriate county. A permanent injunction or other appropriate <br/>
<a id="pl.25.13"></a><var>25.13</var>relief must be granted based solely upon a showing that the person has engaged or is about <br/>
<a id="pl.25.14"></a><var>25.14</var>to engage in an act or practice constituting a violation of a law, rule, or order related to the <br/>
<a id="pl.25.15"></a><var>25.15</var>duties and responsibilities entrusted to the commissioner. The terms of this subdivision <br/>
<a id="pl.25.16"></a><var>25.16</var>govern an action brought under this subdivision, including an action against a person who, <br/>
<a id="pl.25.17"></a><var>25.17</var>for whatever reason, claims that the subject law, rule, or order does not apply to the person.<br/>
<a id="pl.25.18"></a><var>25.18</var>    Subd. 10. <b>Powers additional.</b> The powers contained in sections 177.41 to 177.46 <br/>
<a id="pl.25.19"></a><var>25.19</var>are in addition to all other powers of the commissioner of labor and industry, commissioner <br/>
<a id="pl.25.20"></a><var>25.20</var>of transportation, and any contracting authority.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.25.21"></a><var>25.21</var>    Sec. 13. <b>[177.46] COURT ACTIONS; PRIVATE PARTY CIVIL ACTIONS.</b><br/>
<a id="pl.25.22"></a><var>25.22</var>    Subdivision 1. <b>Civil action; damages.</b> A laborer or mechanic may bring a civil <br/>
<a id="pl.25.23"></a><var>25.23</var>action seeking redress for violations of sections 177.41 to 177.46 directly to district court. <br/>
<a id="pl.25.24"></a><var>25.24</var>A contractor, subcontractor, or agent who is found to have violated sections 177.41 to <br/>
<a id="pl.25.25"></a><var>25.25</var>177.46 is liable to the aggrieved party for all unpaid wages. A contractor, subcontractor, <br/>
<a id="pl.25.26"></a><var>25.26</var>or agent who is found to have violated sections 177.41 to 177.46 is also liable for <br/>
<a id="pl.25.27"></a><var>25.27</var>compensatory damages, interest on the unpaid wages at the statutory rate, liquidated <br/>
<a id="pl.25.28"></a><var>25.28</var>damages equal to three times the wages owed, punitive damages for repeated or willful <br/>
<a id="pl.25.29"></a><var>25.29</var>violations, and any other appropriate relief including, but not limited to, injunctive relief. <br/>
<a id="pl.25.30"></a><var>25.30</var>The contracting authority must provide the laborer or mechanic bringing the action any <br/>
<a id="pl.25.31"></a><var>25.31</var>and all requested project records, including certified payrolls with Social Security numbers <br/>
<a id="pl.25.32"></a><var>25.32</var>and employee addresses redacted, after written notice, and that has been deemed to be a <br/>
<a id="pl.25.33"></a><var>25.33</var>public record, at a reasonable cost.<br/>
<a id="pl.25.34"></a><var>25.34</var>    Subd. 2. <b>District court jurisdiction.</b> An action brought under subdivision 1 may be <br/>
<a id="pl.25.35"></a><var>25.35</var>filed in the district court of the county where a violation is alleged to have been committed, <br/>
<a id="pl.26.1"></a><var>26.1</var>where the respondent resides or has a principal place of business, where the contracting <br/>
<a id="pl.26.2"></a><var>26.2</var>authority has its main office, or any other court of competent jurisdiction.<br/>
<a id="pl.26.3"></a><var>26.3</var>    Subd. 3. <b>Persons who may sue.</b> An action authorized by this section may be <br/>
<a id="pl.26.4"></a><var>26.4</var>maintained against any contractor, subcontractor, or agent by any one or more laborers <br/>
<a id="pl.26.5"></a><var>26.5</var>or mechanics for and on behalf of themselves and other laborers or mechanics similarly <br/>
<a id="pl.26.6"></a><var>26.6</var>situated. No laborer or mechanic must be a party plaintiff to any action authorized by this <br/>
<a id="pl.26.7"></a><var>26.7</var>section unless the laborer or mechanic gives consent in writing to become a party and the <br/>
<a id="pl.26.8"></a><var>26.8</var>consent is filed in the court in which the action is brought.<br/>
<a id="pl.26.9"></a><var>26.9</var>    Subd. 4. <b>Discovery allowed.</b> Upon request, a contractor, subcontractor, or agent <br/>
<a id="pl.26.10"></a><var>26.10</var>against whom an action authorized by this section is brought, must provide to any plaintiff <br/>
<a id="pl.26.11"></a><var>26.11</var>records kept in the normal course of its business that show all laborers or mechanics <br/>
<a id="pl.26.12"></a><var>26.12</var>working on the project including the last known address, hours worked, classifications <br/>
<a id="pl.26.13"></a><var>26.13</var>worked, and wages and benefits paid for the work performed, with Social Security <br/>
<a id="pl.26.14"></a><var>26.14</var>numbers redacted from those records. The records must be provided without court <br/>
<a id="pl.26.15"></a><var>26.15</var>order. If a contractor, subcontractor, or agent refuses to provide this information without <br/>
<a id="pl.26.16"></a><var>26.16</var>court order, the court must include in the order a provision requiring the contractor, <br/>
<a id="pl.26.17"></a><var>26.17</var>subcontractor, or agent to pay the reasonable attorney fees and costs incurred by the <br/>
<a id="pl.26.18"></a><var>26.18</var>laborer or mechanic in bringing a motion for the court order.<br/>
<a id="pl.26.19"></a><var>26.19</var>    Subd. 5. <b>Attorney fees and costs.</b> In an action brought under subdivision 1, the <br/>
<a id="pl.26.20"></a><var>26.20</var>court shall order any entity who is found to have committed a violation to pay to the <br/>
<a id="pl.26.21"></a><var>26.21</var>aggrieved party reasonable costs, disbursements, witness fees, and attorney fees.<br/>
<a id="pl.26.22"></a><var>26.22</var>    Subd. 6. <b>Civil penalty.</b> In an action brought under subdivision 1, the court shall <br/>
<a id="pl.26.23"></a><var>26.23</var>order any entity who is found to have committed a violation to pay a civil penalty equal <br/>
<a id="pl.26.24"></a><var>26.24</var>to 100 percent of the total damages awarded to all plaintiffs in the action, including the <br/>
<a id="pl.26.25"></a><var>26.25</var>fees and costs awarded under subdivision 5, to the commissioner of labor and industry <br/>
<a id="pl.26.26"></a><var>26.26</var>or the commissioner of transportation whichever agency is responsible for enforcement <br/>
<a id="pl.26.27"></a><var>26.27</var>with respect to the project to be deposited into a dedicated fund to be used in future <br/>
<a id="pl.26.28"></a><var>26.28</var>enforcement efforts of sections 177.43 and 177.44.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.26.29"></a><var>26.29</var>    Sec. 14. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision <br/>
<a id="pl.26.30"></a><var>26.30</var>to read:<br/>
<a id="pl.26.31"></a><var>26.31</var>    Subd. 20. <b>Debarred entities.</b> Notwithstanding any other provision of this section, <br/>
<a id="pl.26.32"></a><var>26.32</var>municipalities must comply with sections 177.43 and 177.44 with respect to awarding any <br/>
<a id="pl.26.33"></a><var>26.33</var>contracts subject to sections 177.41 to 177.46.<br/>