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2021 Session

Budget Amendments - HB1800 (Member Request)

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Chief Patron: Carr
Worker Misclassification on Capital Outlay Construction Contracts (language only)

Item 111 #1h

Item 111 #1h

Commerce and Trade
Secretary of Commerce and Trade

Language

Page 104, after line 47, insert:

"2. In making recommendations for its final September 2021 report, the workgroup shall examine the state's current competitive bid process, and offer potential recommendations for legislation in the 2022 General Assembly Session, that incentivizes positive business behavior by general contractors while at the same time ensuring the procurement process remains competitive for small and minority owned businesses. Additionally, the workgroup shall explore the model currently used by the Virginia Military Institute that requires subcontractors to get authorization prior to outsourcing any work on state contracts, and determine if this model can be deployed on all state capital construction contracts. The workgroup shall provide state fiscal impact estimates by fiscal year and fund source for any recommendation it makes to improve the state's public works contracting process for capital projects, including the concepts identified in this paragraph for further research."

Page 104, line 48, strike "2" and insert "3".

Page 105, line 8, strike "3" and insert "4".

Page 105, line 12, strike "April 15, 2021" and insert "September 1, 2021".

Page 105, after line 12, insert:

"F.1. The Secretary of Commerce and Trade, Secretary of Administration and the Chief Workforce Development Advisor shall work the Department of General Services and the Department of Taxation to establish a state government infrastructure to identify and investigate potential worker misclassification issues on large capital outlay construction contracts, as defined by the parties listed in this paragraph. The infrastructure shall include an initial resolution process for state procurement officers to work  with the primary contractor, sub contractor, and employee to resolve any disputes. If the matter cannot be resolved with the initial step, it shall be  referred to the Department of Taxation for formal investigation. Any state contractor found in violation of the state's worker misclassification law by the Department of Taxation shall be debarred from contracting with all public bodies under the provisions of § 58.1-1902  and § 2.2-4321, Code of Virginia.

2. The Secretary of Commerce and Trade, Secretary of Administration, the Chief Workforce Development Advisor, and the Department of General Services shall ensure any state employee who oversees large capital outlay construction projects, as defined by the parties listed in this paragraph, take an online or face to face course on national and state labor laws related to construction projects by July 1, 2023. The Secretary of Administration, the Chief Workforce Development Advisor, and the Department of General Services shall report to the Governor, Chairs of the House Appropriations Committee, and Senate Finance and Appropriations Committee ongoing costs to support this professional development training on or before September 1, 2021.

G.1. The Secretary of Commerce and Trade, Secretary of Administration, and the Chief Workforce Development Advisor shall convene an interagency taskforce to meet regularly to share data and examine enforcement strategies  on worker misclassification and wage theft issues. The taskforce shall include representatives from the Department of Labor and Industry, the Department of Professional and Occupational Regulation, the Virginia Employment Commission, and the Virginia Worker's Compensation Commission. The taskforce may consider signing a data sharing agreement or Memorandum of Understanding to share information on employers who are currently being investigated or found guilty of unlawful business practices, such as wage theft and worker misclassification.

2. The taskforce shall advise the public works process workgroup in paragraph E.1. of this item on topics including the implementation status of Virginia's new labor laws on worker misclassification and wage theft, and other relevant ideas to preventing and enforcing wage theft and worker misclassification on state capital construction projects."



Explanation

(This amendment extends the report deadline for the public works process workgroup from April 15, 2021 to September 1, 2021. It also establishes a process for the state to identify and resolve issues of worker misclassification on large capital outlay construction projects; an idea originating from the initial work of the public works process workgroup. It further establishes an interagency taskforce to coordinate on the state's new worker misclassification and wage theft laws by sharing data and examining current enforcement strategies. The taskforce has the responsibility to examine worker misclassification and wage theft globally in the state, but it may inform the work of the public works process workgroup, whose scope remains more narrowly focused on remedies to address these issues in the state's capital construction process.)