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S.F. No. 1121 - Responsible Contractor Requirements Clarifications and Modifications - the First Engrossment
 
Author: Senator Tom Saxhaug
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: March 16, 2015



 

The bill amends the responsible contractor law, enacted in 2014 (Laws 2014, Chapter 253, section 1).  The responsible contractor law requires those who contract for construction projects over $50,000 with the state or municipalities to verify that they comply with certain state and federal employment laws, such as those governing minimum wage, overtime, comparable wages, prevailing wages, payment of wages and benefits due on termination, misrepresentation of employment relationship, and certain related penalties.

Section 1 [Definitions] specifies that design professionals practicing licensed architecture are not subject to the responsible contractor law.  Provides a definition for “material supplier,” who is also exempted from the responsible contractor law.

Section 2 [Responsible contractor required] excludes the value of tax increment financing for purposes of determining whether the contract reaches the $50,000 threshold and is, therefore, subject to the responsible contractor law.

Section 3 [Minimum criteria] modifies or adds specificity to the minimum criteria that a contractor must verify to be eligible for a construction contract.

Section 4 [Verification of compliance] specifies that a contractor’s verification of compliance with the minimum criteria need not be notarized and that a typed electronic signature is acceptable and is the same as a handwritten signature.

Section 5 [Subcontractor verification] requires an apparent successful prime contractor to submit verifications of compliance by subcontractors prior to execution of a construction contract.

Section 6 [Additional criteria] specifies that the responsible contractor law does not prohibit a contracting authority from imposing additional obligations on contractors under other law or legal authority.

Section 7 [Effective date] makes the changes in sections 1 to 6 effective for contracts for which bids and proposals are required after enactment.

 
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