1.1 	A bill for an act
1.2 	relating to employment; requiring the commissioner of
1.3 	labor and industry to employ investigators of
1.4 	prevailing wage violations; clarifying the procedures
1.5 	for investigations of prevailing wage violations;
1.6 	requiring notice of prevailing wage violations and
1.7 	action upon prevailing wage violations; amending
1.8 	Minnesota Statutes 2004, section 177.43, subdivision
1.9 	6, by adding a subdivision.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2004, section 177.43,
1.12 	subdivision 6, is amended to read:
1.13 		Subd. 6.Examination of records  The Department of Labor
1.14 	and Industry shall enforce this section. The department shall
1.15 	employ at least two investigators to perform on-site project
1.16 	reviews and to receive and investigate complaints of violations
1.17 	of this section.  The department has the right to stop and
1.18 	interview employees working on a public works project subject to
1.19 	this section during work hours.  Each complaint received by the
1.20 	department shall be assigned to an investigator and investigated
1.21 	in a timely manner.The department may demand, and the
1.22 	contractor and subcontractor shall furnish to the department,
1.23 	copies of any or all payrolls. The department may also demand,
1.24 	and the contracting agency shall furnish to the department,
1.25 	information about the project.The department may examine all
1.26 	records relating to wages paid laborers or mechanics on work to
1.27 	which sections 177.41 to 177.44 apply. After gathering the
2.1 	information necessary to evaluate a complaint of a violation of
2.2 	this section, the investigator shall determine whether a
2.3 	violation has occurred.  If the investigator determines that no
2.4 	violation has occurred, the investigation shall be terminated.
2.5 	However, if the investigator determines that a violation has
2.6 	occurred, the investigator shall determine the amount owed and
2.7 	assess the contractor accordingly.  The department shall notify
2.8 	the contracting agency or agencies of the assessment and the
2.9 	contracting agency or agencies shall require adherence to the
2.10 	department assessment.  The investigator shall report to the
2.11 	commissioner any contractor who does not pay the amount assessed
2.12 	within 60 days of the assessment.  The commissioner shall deem
2.13 	any unpaid department assessment as an unresolved violation of
2.14 	this section and handle as required under subdivision 6a.

2.15 	Sec. 2. Minnesota Statutes 2004, section 177.43, is
2.16 	amended by adding a subdivision to read:
2.17 		Subd. 6a.Prevailing wage rate violations. (a) All state
2.18 	contracting agencies shall require adherence to this section on
2.19 	their projects and their political subdivision projects.  State
2.20 	contracting agencies or their political subdivisions shall not
2.21 	finalize a contract with any unresolved violations of this
2.22 	section.  They shall report any unresolved violations of this
2.23 	section to the commissioner of labor and industry.
2.24 	The commissioner of labor and industry shall investigate
2.25 	the reported violations and the contracting agencies shall
2.26 	require adherence on their projects with the commissioner's
2.27 	investigative findings and report back to the commissioner when
2.28 	there is compliance with the findings.  The commissioner of
2.29 	labor and industry is required to report any unresolved
2.30 	violations within 60 days of notification to the contracting
2.31 	agency or any willful violations of this section to both the
2.32 	county attorney for the county where the alleged violation
2.33 	occurred and to the state attorney general.
2.34 	(b) A county attorney shall notify the commissioner of
2.35 	labor and industry and the state attorney general upon
2.36 	commencing an action for a violation of this section.  The
3.1 	county attorney shall also give notice to the commissioner and
3.2 	the state attorney general of the outcome of the action,
3.3 	including detailed reasons for the dismissal or settlement of an
3.4 	action pursuant to a plea agreement that awards less than the
3.5 	maximum penalties for a violation of this section.  The
3.6 	commissioner shall notify the contracting agency.
3.7 	(c) If the state attorney general does not receive notice
3.8 	of the commencement of an action by a county attorney, as
3.9 	required by paragraph (b), within six months of receiving a
3.10 	report from the commissioner of labor and industry as provided
3.11 	by paragraph (a), the state attorney general shall pursue the
3.12 	suspected violation.