1.1    .................... moves to amend H. F. No. 1443 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 16C.03, subdivision 2, is amended to read:
1.4    Subd. 2. Rulemaking authority. Subject to chapter 14, the commissioner may
1.5adopt rules, consistent with this chapter and chapter 16B, relating to the following topics:
1.6    (1) solicitations and responses to solicitations, bid security, vendor errors, opening
1.7of responses, award of contracts, tied bids, and award protest process;
1.8    (2) contract performance and failure to perform;
1.9    (3) authority to debar or suspend vendors from performing any work under a contract
1.10as a prime contractor, subcontractor, agent, or material supplier on any contracts funded in
1.11whole or in part with state funds, and reinstatement of vendors;
1.12    (4) contract cancellation;
1.13    (5) procurement from rehabilitation facilities; and
1.14    (6) organizational conflicts of interest.

1.15    Sec. 2. Minnesota Statutes 2006, section 161.315, subdivision 1, is amended to read:
1.16    Subdivision 1. Legislative intent. Recognizing that the preservation of the integrity
1.17of the public contracting process of the Department of Transportation is vital to the
1.18development of a balanced and efficient transportation system and a matter of interest to
1.19the people of the state, the legislature hereby determines and declares that:
1.20    (1) the procedures of the department for bidding and awarding department contracts
1.21exist to secure the public benefits of free and open competition and to secure the quality of
1.22public works;
1.23    (2) the opportunity to be awarded department contracts or to supply goods or
1.24services to the department is a privilege, not a right; and
2.1    (3) the privilege of transacting business with the department or local road authority
2.2should be denied to persons convicted of a contract crime, or that have committed a serious
2.3contract violation, in order to preserve the integrity of the public contracting process.

2.4    Sec. 3. Minnesota Statutes 2006, section 161.315, subdivision 2, is amended to read:
2.5    Subd. 2. Definitions. The terms used in this section have the meanings given them
2.6in this subdivision.
2.7    (a) "Affiliate" means a predecessor or successor of a person by merger,
2.8reorganization, or otherwise, who is, or that has as an officer or director an individual
2.9who is, a relative of the person or an individual over whose actions the person exercises
2.10substantial influence or control, or a group of entities so connected or associated that one
2.11entity controls or has the power to control each of the other entities. "Affiliate" includes
2.12the affiliate's principals. One person's ownership of a controlling interest in another entity
2.13or a pooling of equipment or income among entities is prima facie evidence that one
2.14entity is an affiliate of another.
2.15    (b) "Contract crime" means a violation of state or federal antitrust law, fraud, theft,
2.16embezzlement, bribery, forgery, misrepresentation, making false statements, falsification
2.17or destruction of records, collusion, or other criminal offense in connection with obtaining,
2.18attempting to obtain, or performing a public or private contract or subcontract, or other
2.19offense indicating a lack of business integrity.
2.20    (c) "Conviction" has the meaning given it in section 609.02, subdivision 5.
2.21    (d) "Debar" means to disqualify from receiving a contract or from serving as a
2.22subcontractor or material supplier as provided by Laws 1984, chapter 654, article 2,
2.23section 8.
2.24    (e) "Person" means a natural person or a business, corporation, association,
2.25partnership, sole proprietorship, or other entity formed to do business as a contractor,
2.26subcontractor, or material supplier and includes an affiliate of a person.
2.27    (f) "Pooling" means a combination of persons engaged in the same business or
2.28combined for the purpose of engaging in a particular business or commercial venture and
2.29who all contribute to a common fund or place their holdings of a given stock or other
2.30security in the hand and control of a managing member or committee of the combination.
2.31    (g) "Suspend" means to temporarily disqualify from receiving a contract or from
2.32serving as a subcontractor or material supplier as provided by Laws 1984, chapter 654,
2.33article 2, section 8.
2.34    (h) "Relative" means an individual related by consanguinity within the second
2.35degree as determined by the common law, a spouse, or an individual related to a spouse
3.1within the second degree as determined by the common law, and includes an individual in
3.2an adoptive relationship within the second degree as determined by the common law.
3.3    (i) "Serious contract violation" means failure without good cause to perform
3.4according to the specifications, time limits, or any terms or conditions in a contract; a
3.5record of failure to perform or unsatisfactory performance, according to the terms, of more
3.6than one contract as measured by standard commercial practices, not caused by acts
3.7beyond the control of the contractor; or any other cause the commissioner determines to
3.8be serious and compelling including, but not limited to, threatening or abusive behavior,
3.9collusion with other vendors to restrain competition, giving false information on a vendor's
3.10registration application or response to a solicitation, or violating terms of a suspension.
3.11    (j) "Governmental entity" means the federal government, the state of Minnesota,
3.12or any of its departments, commissions, councils, agencies, political subdivisions,
3.13municipalities, local government bodies, or an agent of any of those entities.

3.14    Sec. 4. Minnesota Statutes 2006, section 177.27, subdivision 1, is amended to read:
3.15    Subdivision 1. Examination of records. The commissioner may enter during
3.16reasonable office hours or upon request and inspect the place of business or employment of
3.17any employer of employees working in the state, to examine and inspect books, registers,
3.18payrolls, and other records of any employer that in any way relate to wages, hours, and
3.19other conditions of employment of any employees. The commissioner may transcribe any
3.20or all of the books, registers, payrolls, and other records as the commissioner deems
3.21necessary or appropriate and may question the employees to ascertain compliance with
3.22sections 177.21 to 177.35 177.46. The commissioner may investigate wage claims or
3.23complaints by an employee against an employer if the failure to pay a wage may violate
3.24Minnesota law or an order or rule of the department.

3.25    Sec. 5. Minnesota Statutes 2006, section 177.27, subdivision 4, is amended to read:
3.26    Subd. 4. Compliance orders. The commissioner may issue an order requiring an
3.27employer to comply with sections 177.21 to 177.35 177.46, 181.02, 181.03, 181.031,
3.28181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, and 181.79, or with
3.29any rule promulgated under section 177.28. The department shall serve the order upon
3.30the employer or the employer's authorized representative in person or by certified mail
3.31at the employer's place of business. An employer who wishes to contest the order must
3.32file written notice of objection to the order with the commissioner within 15 calendar
3.33days after being served with the order. A contested case proceeding must then be held
3.34in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being
3.35served with the order, the employer fails to file a written notice of objection with the
3.36commissioner, the order becomes a final order of the commissioner.

4.1    Sec. 6. Minnesota Statutes 2006, section 177.27, subdivision 8, is amended to read:
4.2    Subd. 8. Court actions; suits brought by private parties. An employee may bring
4.3a civil action seeking redress for a violation or violations of sections 177.21 to 177.35
4.4177.46 directly to district court. An employer who pays an employee less than the wages
4.5and overtime compensation to which the employee is entitled under sections 177.21 to
4.6177.35 177.46 is liable to the employee for the full amount of the wages, gratuities, and
4.7overtime compensation, less any amount the employer is able to establish was actually
4.8paid to the employee and for an additional equal amount as liquidated damages. In
4.9addition, in an action under this subdivision the employee may seek damages and other
4.10appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement
4.11between the employee and the employer to work for less than the applicable wage is not
4.12a defense to the action.

4.13    Sec. 7. Minnesota Statutes 2006, section 177.27, subdivision 9, is amended to read:
4.14    Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may
4.15be filed in the district court of the county wherein a violation or violations of sections
4.16177.21 to 177.35 177.46 are alleged to have been committed, where the respondent resides
4.17or has a principal place of business, or any other court of competent jurisdiction. The
4.18action may be brought by one or more employees.

4.19    Sec. 8. Minnesota Statutes 2006, section 177.27, subdivision 10, is amended to read:
4.20    Subd. 10. Attorney fees and costs. In any action brought pursuant to subdivision 8,
4.21the court shall order an employer who is found to have committed a violation or violations
4.22of sections 177.21 to 177.35 177.46 to pay to the employee or employees reasonable costs,
4.23disbursements, witness fees, and attorney fees.

4.24    Sec. 9. Minnesota Statutes 2006, section 177.42, is amended to read:
4.25177.42 DEFINITIONS.
4.26    Subdivision 1. Scope. As used in sections 177.41 to 177.44 177.46 the terms defined
4.27in this section have the meanings given them except where the context indicates otherwise.
4.28    Subd. 2. Project. "Project" means erection, construction, remodeling, or repairing
4.29of a public building or other public work financed in whole or part by state funds.
4.30    Subd. 3. Area. "Area" means the county or other locality from which labor for
4.31any project is normally secured.
4.32    Subd. 4. Prevailing hours of labor. "Prevailing hours of labor" means the hours
4.33of labor per day and per week worked within the area by a larger number of workers of
4.34the same class than are employed within the area for any other number of hours per day
5.1and per week. The prevailing hours of labor may not be more than eight hours per day
5.2or more than 40 hours per week.
5.3    Subd. 5. Hourly basic rate. "Hourly basic rate" means the taxable hourly wage
5.4paid to any employee.
5.5    Subd. 6. Prevailing wage rate. "Prevailing wage rate" means the hourly basic rate
5.6of pay plus the contribution for health and welfare benefits, vacation benefits, pension
5.7benefits, and any other economic benefit considered by the commissioner to be a direct
5.8benefit to the employee and paid to the largest number of workers engaged in the same
5.9class of labor within the area and includes, for the purposes of section 177.44, rental
5.10rates for truck hire paid to those who own and operate the truck. The prevailing wage
5.11rate may not be less than a reasonable and living wage, that must be at least two times
5.12the established state minimum wage rate.
5.13    Subd. 7. Laborer or mechanic. "Laborer or mechanic" includes all workers
5.14performing manual and physical work on the project for the time spent performing the
5.15duties of classifications of labor.
5.16    Subd. 8. Contracting authority. "Contracting authority" means the state of
5.17Minnesota, a state agency, political subdivision of the state, commission, council, or any
5.18other entity with authority to enter into public works projects, or an agent of any of those
5.19entities, that enters into a contract for a project.
5.20    Subd. 9. Contractor. "Contractor" means the individual, firm, corporation, or
5.21other business entity entering into a contract with a contracting authority to complete a
5.22project, either directly or through an authorized representative, and who undertakes the
5.23prosecution of the work prescribed in the contract.
5.24    Subd. 10. Contract. "Contract" means the written agreement between the
5.25contracting authority and the contractor setting forth each party's rights and obligations,
5.26including, but not limited to, the performance of the work, type of work, furnishing
5.27of labor and materials, basis of payment, work specifications, and other requirements
5.28contained in the project documents.
5.29    Subd. 11. Certified payroll. "Certified payroll" is a form that contains:
5.30    (1) Payroll form. A form that contains information on all laborers and mechanics
5.31that performed work under the contract, including the following payroll information:
5.32full name, address, Social Security number, each classification of labor worked, daily
5.33and weekly hours worked on the project, rates of pay, overtime hours and rates, taxes
5.34withheld and other deductions, the project gross amount and net amounts earned, the total
6.1gross amount and net amounts earned, in addition, the hourly costs of, and the provider
6.2names and contact information of, the company's fringe benefits program, along with
6.3project identification information, and any additional information determined by the
6.4commissioner to be necessary to ensure compliance with this section.
6.5    (2) Certification form. A form that contains certification language approved by the
6.6commissioner and a signature block. Certified payroll must be submitted to a contracting
6.7authority on forms approved by the commissioner.

6.8    Sec. 10. Minnesota Statutes 2006, section 177.43, is amended to read:
6.9177.43 CONTRACTS FOR STATE PROJECTS; PENALTY.
6.10    Subdivision 1. Hours of labor. Any contract which provides for a project must
6.11state that:
6.12    (1) no laborer or mechanic employed directly on the project work site by the
6.13contractor or any subcontractor, agent, or other person doing or contracting to do all
6.14or a part of the work of the project, is permitted or required to work more hours than
6.15the prevailing hours of labor unless paid for all hours in excess of the prevailing hours
6.16at a rate of at least 1-1/2 times the taxable hourly basic rate of pay paid to the laborer or
6.17mechanic for the work performed under a contract; and
6.18    (2) a laborer or mechanic may must be paid unconditionally and not less often than
6.19on a weekly basis and shall not be paid a lesser rate of wages than the prevailing wage rate
6.20in the same or most similar trade or occupation in the area. Actual costs for providing
6.21bona fide fringe benefit programs as defined in subdivision 8 to a laborer or mechanic
6.22performing work under the contract may be deducted from the total prevailing wage rate
6.23to obtain the taxable hourly basic rate to be paid to the laborer or mechanic; and
6.24    (3) The contractor, subcontractor, or agent shall not exceed their company
6.25apprenticeship ratio established by a certified or registered program on any project subject
6.26to this section.
6.27    Subd. 2. Exceptions. This section does not apply to wage rates and hours of
6.28employment of laborers or mechanics who process or manufacture materials or products
6.29or to the delivery of materials or products by or for commercial establishments which have
6.30a fixed place of business from which they regularly supply processed or manufactured
6.31materials or products. This section applies to laborers or mechanics who deliver mineral
6.32aggregate such as sand, gravel, or stone which is incorporated into the work under the
6.33contract by depositing the material substantially in place, directly or through spreaders,
6.34from the transporting vehicle.
7.1    Subd. 3. Contract requirements. The contract must specifically state the
7.2prevailing wage rates, prevailing hours of labor, and hourly basic rates of pay. The
7.3contracting authority shall incorporate into its proposals and contracts the appropriate
7.4wage determinations for the contract along with contract language provided by the
7.5commissioner of labor and industry to notify the contractor of the applicability of
7.6sections 177.41 to 177.46. Failure to incorporate the determination or provided contract
7.7language into the contracts shall make the contracting authority liable for making
7.8whole the contractor for any increases in the wages paid, including employment taxes
7.9and reasonable administrative costs based on the increase in wages, to the laborers or
7.10mechanics working on the project. The contracting authority is authorized to incorporate
7.11into the bid documents for each project a compliance monitoring surcharge provision. The
7.12surcharge shall be a percentage of the engineers estimate of the project. The surcharge
7.13percentage shall be either an amount set annually by the commissioner for all projects after
7.14investigation to determine the expected costs of monitoring compliance, or an amount
7.15requested by the contracting authority and authorized by the commissioner, and will be a
7.16percentage sufficient to pay the estimated cost to the contracting authority of monitoring
7.17compliance with sections 177.41 to 177.46. The surcharge shall be incorporated into the
7.18contract for the project and paid by the contractor to the contracting authority within
7.19two weeks of the payment by the contracting authority of the mobilization cost for the
7.20project as specified in the successful bid. The contracting authority shall use this surcharge
7.21exclusively to defray costs of monitoring compliance with sections 177.41 to 177.46.
7.22    These hours, rates, and classifications, along with contracting authority name,
7.23project engineer or agency contact person, telephone number, and project identification
7.24numbers, together with a summary of provisions of subdivision 5 and a summary of
7.25provisions under section 177.46, shall be and remain posted directly on the project site
7.26by the contractor in at least one conspicuous and accessible location acceptable to the
7.27contracting authority for the information of all employees working on the project. The
7.28contracting authority shall ensure the contractor keeps the required information on the
7.29project from the start of work until all work is completed on the project.
7.30    All contracting authorities shall require weekly submittal of certified payrolls from
7.31each contractor, subcontractor, or agent working on the project. The contractor shall
7.32submit certified payrolls from the contractor's own workforce along with payrolls from
7.33all subcontractors and agents working on the project. The contracting authority shall
7.34maintain the payrolls under the contracting agency's normal record retention schedules for
7.35a minimum of two years past the closing of the contract.
8.1    Each contracting authority shall redact the Social Security number and address of
8.2each laborer or mechanic from each certified payroll before any person other than an
8.3employee of the contracting authority or the department is allowed to review the certified
8.4payroll.
8.5    Certified payrolls shall be submitted within one week after the week ending date of
8.6the week in which the work was performed. Each subcontractor or agent shall furnish to
8.7the contractor weekly certified payrolls to demonstrate compliance with this section. The
8.8contractor may interview all laborers or mechanics on the project and review subcontractor
8.9or agents' payroll information to ensure compliance with this section.
8.10    The contractor shall incorporate into all subcontract agreements, purchase orders,
8.11or other written agreements that provide for work covered by this section, the contract
8.12wage determinations and the contract language provided by the commissioner contained
8.13in the contract. The contractor shall also ensure that all secondary subcontract agreements,
8.14purchase orders, or other written agreements that provide for work covered by this section
8.15contain the same language. The contractor shall provide a written certified confirmation
8.16on a form provided by the contracting authority that all subcontractors and agents have
8.17received the required contract wage determinations and contract language. The form shall
8.18be provided to the contracting authority prior to any subcontractor or agent working on the
8.19project. If the contractor does not provide the information required to the subcontractor
8.20or agents, or the form to the contracting authority, the contractor shall be the sole entity
8.21responsible for any contracting authority or commissioner's assessment.
8.22    Subd. 4. Determination by commissioner. The prevailing wage rates, prevailing
8.23hours of labor, and hourly basic rates of pay for all trades and occupations required in any
8.24project under each contract must be ascertained obtained before the state any contracting
8.25authority asks for bids. The wage determinations must also include future hours and rates
8.26when they can be determined for classes of laborers or mechanics in an area. The wage
8.27determination must specifically state the effective dates of future hours and rates when
8.28they are certified. The commissioner of labor and industry shall investigate as necessary
8.29to ascertain the information and shall develop and maintain classification definitions.
8.30The contractor and contracting authority shall apply the classification definitions to the
8.31laborers or mechanics performing work under the contract. Missing classifications,
8.32classification disputes, and disputes arising from interpretations of this section shall be
8.33resolved by the commissioner of labor and industry. The commissioner shall keep the
8.34information posted on the project in at least one conspicuous place for the information of
8.35the employees working on the project. A person aggrieved by a final determination of the
8.36commissioner may petition the commissioner for reconsideration of findings within 20
9.1days of the publication or decision. A person aggrieved by a decision of the commissioner
9.2after reconsideration may, within 20 days after the decision, petition the commissioner
9.3for a public hearing in the manner of a contested case under sections 14.57 to 14.61. If
9.4the commissioner finds that a change in the certified prevailing hours of labor, prevailing
9.5wage rate, and the hourly basic rate of pay for a class of laborers or mechanics in any area
9.6is required, the commissioner may at any time certify that change, and the certified change
9.7will be effective on a project advertised for bid on or after the date of certification.
9.8    Subd. 5. Penalty Penalties: criminal, civil, and debarment. (a) It is a
9.9misdemeanor violation for an officer or employee of the state to or contracting authority
9.10to knowingly execute a contract for a project without complying with this section, or for
9.11the wage determination or contract language provided by the commissioner of labor
9.12and industry, or knowingly close a contract on a project with violations or assessments.
9.13A willful violation may be subject to the penalties assigned under section 609.43. A
9.14contractor, subcontractor, or agent to pay any laborer, worker, or mechanic employed
9.15directly on the project site a lesser wage for work done under the contract than the
9.16prevailing wage rate as stated in the contract. This misdemeanor is punishable by a fine
9.17of who violates this section is guilty of a gross misdemeanor for the first conviction of
9.18a criminal offense under this section and shall be fined for the violation not more than
9.19$700 $3,000, or imprisonment imprisoned for not more than 90 days one year, or both.
9.20Each agent or subcontractor shall furnish to the contractor evidence of compliance with
9.21this section.
9.22     Each day a violation of this section continues is a separate offense violation. It will
9.23be considered a felony for the second conviction of a contractor, subcontractor, or agent
9.24for violations of this section, or for the conviction of a total unpaid back wage assessment
9.25by the commissioner of labor and industry against a violating contractor, subcontractor, or
9.26agent in excess of $100,000, and shall be fined for the violation not more that $10,000, or
9.27imprisoned for not more than five years, or both. Each day that the violation continues is a
9.28separate violation.
9.29    Whoever induces a job applicant or employee on any project subject to this section
9.30to give up or forego any part of the wages to which the job applicant or employee is
9.31entitled under the contract governing the project by threat not to employ, by threat of
9.32dismissal from employment, or by any other means, or knowingly alters official company
9.33employment or time records to falsely report the laborer's or mechanic's pay is guilty of a
9.34gross misdemeanor and may by fined for the violation not exceeding $3,000 or imprisoned
9.35for not more than one year, or both. Each day that the violation continues is a separate
9.36violation.
10.1    Any employee under this section who knowingly permits the contractor or
10.2subcontractor to pay less than the prevailing wage rate set forth in the contract, or who
10.3gives up any part of the compensation to which entitled under the contract, is guilty of a
10.4misdemeanor and may be fined no more than $40 or imprisoned not more than 30 days or
10.5both. Each day any violation of this paragraph continues is a separate violation.
10.6    In addition to or instead of criminal prosecution under this subdivision, the
10.7commissioner may engage in any civil enforcement actions authorized by this section
10.8or section 177.45.
10.9    (b) Penalties to be assessed by the contracting authorities. The contracting authority
10.10may deduct from what is owed the contractor on the project for civil penalties and
10.11assessments as defined by this section and provisions of section 177.43.
10.12    (1) After written notification by the contracting authority, a civil penalty of $100
10.13per day shall be assessed against the contractor for each day work is performed on the
10.14project and the poster board is not placed or maintained on the project work site at a
10.15location acceptable to the contracting authority.
10.16    (2) After written notification by the contracting authority, a civil penalty of $100 per
10.17week against the contractor for each week the contractor's certified payrolls or any of the
10.18individual subcontractor or agent-certified payrolls are not submitted.
10.19    (3) After written notification by the contracting authority, a civil penalty of $50 per
10.20week shall be assessed against the contractor for each week that the subcontractor or agent
10.21forms as defined in section 177.43, subdivision 3, are not submitted.
10.22    (c) A contractor, subcontractor, or agent that is convicted criminally or held liable
10.23civilly under this section shall be deemed to have a lack of business integrity and shall be
10.24debarred by the commissioner from working on any contract funded in whole or in part
10.25with state funds as a contractor, subcontractor, agent, or material supplier for a period of at
10.26least one year and not to exceed three years. The commissioner shall maintain and publish
10.27a current list of the debarred entities. If any contracting authority has debarred an entity
10.28for prevailing wage violations, the contracting authority shall report the debarment to the
10.29commissioner, who will then include the contractor on the list of debarred entities. All
10.30contracting authorities may not contract with a debarred entity or allow a debarred entity
10.31to work on any project as a subcontractor, material supplier, or in any other capacity.
10.32    Subd. 6. Examination of records and investigation by the department. The
10.33Department of Labor and Industry shall enforce this section. The department may demand,
10.34and the contractor and subcontractor shall furnish to the department, copies of any or all
10.35payrolls. All the contracting authorities that award a contract funded in whole or in part
10.36with state funds shall notify the commissioner in writing of the project location, contractor,
11.1and any other project information deemed necessary by the commissioner. All contracting
11.2authorities shall notify the commissioner in writing when they finalize the project contract.
11.3The department shall employ at least five investigators to perform on-site project reviews
11.4and to receive and investigate complaints of violations of this section, and to conduct
11.5training and outreach to contractors and contracting authorities. These investigators shall
11.6be in addition to any investigators employed to conduct prevailing wage surveys. The
11.7department may demand, and the contractor or subcontractor or agent shall furnish to
11.8the department, copies of any or all payroll documentation deemed necessary by the
11.9department. The department may also demand, and the contracting authority shall furnish
11.10to the department, any or all project information. The department may examine all records
11.11relating to wages paid or fringe benefits provided to laborers or mechanics on work to
11.12which to ensure compliance with sections 177.41 to 177.44 apply 177.46.
11.13    The commissioner shall determine the amount of back wages owed to the affected
11.14laborer or mechanic, shall assess a 100 percent penalty based on the amount of back
11.15wages owed to be paid to the affected laborer or mechanic, and an additional civil penalty
11.16equal to 100 percent of the back wages owed to be paid to the department and deposited
11.17into a dedicated fund for future prevailing wage enforcement efforts and assess the total
11.18amount of back wages owed and penalties against the violating contractor, subcontractor,
11.19or agent accordingly. If it is determined that a violation has occurred, the commissioner
11.20may investigate all other open or closed contracts requiring payment of prevailing wages
11.21on which that contractor, subcontractor, or agent performed any work within the previous
11.22two years. The department shall notify both the contractor and the contracting authority of
11.23its findings and assessment. If the violating contractor, subcontractor, or agent does not
11.24comply with the department's assessment within 20 days of receipt of written notification,
11.25the department shall notify the contracting authority to withhold from any payment due to
11.26the contractor a reasonable amount to ensure compliance with the department's assessment.
11.27The contracting authority shall require adherence to the department's assessments by the
11.28contractor. The contracting authority shall report back to the commissioner when the
11.29contractor complies with the commissioner's findings and assessment. After 60 days of
11.30written notification, the commissioner shall deem any unpaid department assessment as an
11.31unresolved violation of this section and handle as required under subdivision 6a.
11.32    If a contractor is deemed to be insolvent by the commissioner, the contracting
11.33authority shall deduct the department's assessed amount from funds owed the contractor or
11.34assess the bonding company for department's assessment.
11.35    Subd. 6a. Prevailing wage rate violations. (a) All contracting authorities shall
11.36monitor compliance with sections 177.41 to 177.46 on all contracts funded in whole or in
12.1part with state funds. The contracting authority shall interview employees working on
12.2the project during working hours. The contracting authority shall randomly review the
12.3weekly certified payrolls, subcontract agreements, project documentation, and employee
12.4interviews to determine if the contractor has demonstrated compliance with this section.
12.5The contracting authority has authority to request all records relating to the hours of work,
12.6wages paid, or cost of providing fringe benefits, to laborers and mechanics performing
12.7work under a contract to determine compliance with sections 177.41 to 177.46. The
12.8contracting authority shall hold confidential any written or verbal complaint of violation of
12.9this section filed by a laborer or mechanic or filed on behalf of a laborer or mechanic. The
12.10contracting authority shall notify the contractor in writing of any violations of this section.
12.11The contracting authority shall report any unresolved violations of this section to the
12.12commissioner of labor and industry after 20 days of a written notification to the contractor
12.13to resolve the violations, or the contracting authority has knowledge that it is the violating
12.14contractor's, subcontractor's, or agent's second offense of a similar nature. The contracting
12.15authority shall not close a contract with any unresolved violations of this section.
12.16    The commissioner of labor and industry is required to report any unresolved
12.17violations within 60 days of written notification to the contractor, any willful violations of
12.18this section, or second offense violations of a similar nature, to both the county attorney
12.19where the alleged violation occurred and to the attorney general for criminal prosecution.
12.20    (b) A county attorney shall notify the commissioner of labor and industry and the
12.21attorney general upon commencing an action for a violation of this section. The county
12.22attorney shall also give notice to the commissioner and the attorney general of the outcome
12.23of the action, including detailed reasons for the dismissal or settlement of an action
12.24pursuant to a plea agreement that awards less than the maximum penalties for a violation
12.25of this section. The commissioner shall notify the contracting authority.
12.26    (c) If the attorney general does not receive notice of the commencement of an action
12.27by a county attorney, as required by paragraph (b), within six months of receiving a report
12.28under paragraph (a) from the commissioner of labor and industry, the attorney general shall
12.29pursue the suspected violation, unless the attorney general and commissioner agree that
12.30civil enforcement will be sufficient to effectuate the policies of sections 177.41 to 177.46.
12.31    Subd. 7. Applicability. This section does not apply to a contract, or work under
12.32a contract, under which:
12.33    (1) the estimated total cost of completing the project is less than $2,500 and only one
12.34trade or occupation is required to complete it, or
12.35    (2) the estimated total cost of completing the project is less than $25,000 and more
12.36than one trade or occupation is required to complete it.
13.1    Subd. 8. Fringe benefit programs. The prevailing wage rate shall be paid for all
13.2hours worked on the project. The contractor, subcontractor, or agent may take credit
13.3toward the prevailing wage rate for the recovery of the costs of providing bona fide
13.4fringe benefits that have been approved by the commissioner prior to working on a
13.5contract subject to this section and deemed a direct benefit to the laborer or mechanic.
13.6The contractor, subcontractor, or agent shall not take credit for the company's incurred
13.7administrative costs of providing a bona fide fringe benefits program or the costs of legally
13.8required plans or insurance including but not limited to workers' compensation and
13.9unemployment insurance, as well as program or plan costs deemed by the commissioner
13.10to be incurred for the benefit of the contractor, subcontractor, or agent.
13.11    The contributions irrevocably made by the employer to a trustee or third party
13.12pursuant to bona fide fringe benefit fund, plan, or program may be deducted from the
13.13prevailing wage rate, including the reasonable anticipated costs made to a legally
13.14enforceable financially responsible employer plan or program. All programs shall be
13.15communicated in writing to the employee prior to working on the project.
13.16    Contributions to plans or programs must be made on a regular basis, not less often
13.17than quarterly. The costs of providing the benefit plan or program must be annualized.
13.18Contributions made to a plan or program for government work cannot fund the plan for
13.19periods of nongovernment work.
13.20    The laborer or mechanic must have an opportunity to receive the benefit; credit will
13.21not be given costs deducted from laborers or mechanics that are not eligible to receive
13.22the benefit. A laborer or mechanic cannot pay the costs of providing a fringe benefit
13.23for another laborer or mechanic.
13.24    Bonuses are not considered a fringe benefit as they are paid in the future and the
13.25laborer or mechanic must be paid unconditionally weekly the full amount owed without
13.26any rebate. Transportation, board, and lodging are not considered a fringe benefit as
13.27it is a properly reimbursable expense of the employer and incurred for the employer's
13.28benefit. Company vehicles are not considered a fringe benefit as it is to the advantage of
13.29the contractor.
13.30    The remainder of the prevailing wage rate after the costs for bona fide fringe benefits
13.31have been deducted shall be the taxable hourly wage rate paid to the employee for regular
13.32hours worked and used as the basis for calculating overtime rates of pay. The amount
13.33deducted for fringe benefit costs on a project may not reduce the taxable hourly wage rate
13.34below the laborer's or mechanic's regular rate of pay. A contractor may not reduce the rate
13.35of pay of the laborer or mechanic on nonprevailing wage work as a result of the laborer or
13.36mechanic having performed work for which payment of prevailing wage is required.
14.1    Nothing in this section shall supersede provisions of any collective bargaining
14.2agreement or the provisions of the Employment Retirement Income Security Act.
14.3    Subd. 9. Keeping records, penalty. Every employer subject to sections 177.41 to
14.4177.46 must make and keep a record of:
14.5    (1) the name, address, Social Security number, and classification of each laborer
14.6or mechanic;
14.7    (2) the hourly rate of pay, and the amount paid each pay period on both public and
14.8private work to each laborer or mechanic;
14.9    (3) the hours and classifications worked each day and each work week on both
14.10public and private work by the laborer or mechanic;
14.11    (4) fringe benefit program information, costs, and disbursements made on behalf of a
14.12laborer or mechanic; and
14.13    (5) other information the commissioner finds necessary and appropriate to enforce
14.14sections 177.41 to 177.46.
14.15    The records shall be kept in or near the employer's main business location for three
14.16years after the contract is closed on the project worked. The commissioner may fine
14.17a contractor, subcontractor, or agent up to $1,000 for each failure to maintain records
14.18as required by this section. This penalty is in addition to any penalties provided under
14.19section 177.43 or 177.46.

14.20    Sec. 11. Minnesota Statutes 2006, section 177.44, is amended to read:
14.21177.44 HIGHWAY TRANSPORTATION CONTRACTS; HOURS OF LABOR;
14.22WAGE RATES; PENALTY.
14.23    Subdivision 1. Hours, wages permitted. A laborer or mechanic employed by a
14.24contractor, subcontractor, agent, or other person doing or contracting to do all or part
14.25of the work under a contract based on bids as provided in Minnesota Statutes 1971,
14.26section 161.32, to which the state is a party, or for contracts for which the Department
14.27of Transportation has a delegation of authority to be the contracting authority, or for
14.28contracts that the Department of Transportation oversees under its authority to oversee
14.29constitutionally mandated state funding to other local governmental bodies, or units of
14.30government, or political subdivisions that are the contracting authority, for the construction
14.31or maintenance of a highway or other public work projects, may not be permitted or
14.32required to work longer than the prevailing hours of labor unless the laborer or mechanic
14.33is paid for all hours in excess of the prevailing hours at a rate of at least 1-1/2 times the
14.34taxable hourly basic rate of pay of paid to the laborer or mechanic for the work performed
14.35on the project. The laborer or mechanic must be paid at least unconditionally and not
14.36less often than on a weekly basis and shall not be paid a lesser rate of wages than the
15.1prevailing wage rate in the same or most similar trade or occupation in the area. The costs
15.2of providing fringe benefit programs as defined in section 177.43, subdivision 8, to the
15.3laborers or mechanics working on the project may be deducted from the total prevailing
15.4wage rate. Contractors, subcontractors, agents, or other persons performing work under
15.5the contract must maintain records as defined in section 177.43, subdivision 9.
15.6    The contractor, subcontractor, or agent shall not exceed their company apprenticeship
15.7ratio established by a certified or registered program on any project subject to this section.
15.8    Subd. 2. Applicability Exceptions. This section does not apply to wage rates and
15.9hours of employment of laborers or mechanics engaged in the processing or manufacture
15.10of materials or products, or to the delivery of materials or products by or for commercial
15.11establishments which have a fixed place of business from which they regularly supply
15.12the processed or manufactured materials or products. This section applies to laborers
15.13or mechanics who deliver mineral aggregate such as sand, gravel, or stone which is
15.14incorporated into the work under the contract by depositing the material substantially in
15.15place, directly or through spreaders, from the transporting vehicle.
15.16    Subd. 3. Investigations by Department of Labor and Industry. The Department
15.17of Labor and Industry shall conduct investigations and hold public hearings necessary
15.18to define classes of laborers and or mechanics and to determine the hours of labor and
15.19wage rates prevailing in all areas of the state for all classes of labor and laborers or
15.20mechanics commonly employed in highway, heavy, or building construction work, so as
15.21to determine prevailing hours of labor, prevailing wage rates, and hourly basic rates of
15.22pay. If a contract contains multiple types of construction work, the contract must contain
15.23all appropriate wage determinations and the laborer or mechanic must be paid at a rate
15.24for all hours worked under the type of work performed on the project. The contractors,
15.25subcontractors, and agents and Department of Transportation and other contracting
15.26authorities must apply the classification definitions certified by the commissioner of labor
15.27and industry to the laborers or mechanics working on the project. Missing classifications,
15.28classification disputes, and other questions arising from the interpretations of this section
15.29must be resolved by the commissioner of labor and industry as specified in section 177.43,
15.30subdivision 4.
15.31    The Department commissioner of labor and industry shall determine the nature of
15.32the equipment furnished by truck drivers who own and operate trucks on contract work to
15.33determine minimum rates for the equipment, and shall establish by rule minimum rates
15.34to be computed into the prevailing wage rate. The contracting agency must incorporate
15.35the minimum rates into its contracts for bid. The contractor, subcontractor, or agent must
15.36pay the minimum rate established by the commissioner of labor and industry directly
16.1to the person who owns and operates the truck without any deductions or rebates. The
16.2contracting authority must receive evidence from the contractor, subcontractor, or agent
16.3that the proper minimum rate has been paid to the person who owns and operates the truck
16.4in a form approved by the Department of Transportation.
16.5    Subd. 4. Certification of hours and rate. The commissioner of labor and industry
16.6shall at least once a year certify the prevailing hours of labor, the prevailing wage rate,
16.7and the hourly basic rate of pay for all classes of laborers and or mechanics referred to
16.8in subdivision 3 in each area. The certification must also include future hours and rates
16.9when they can be determined for classes of laborers and or mechanics in an area. The
16.10certification must specifically state the effective dates of future hours and rates when they
16.11are certified. If a construction project extends into more than one area there shall be only
16.12one standard of hours of labor and wage rates for the entire project, all applicable area
16.13wage determinations must be contained in the contract and the hours of labor and wage
16.14rates paid the laborer or mechanic must be specific to the areas in which the work is
16.15performed. A person aggrieved by a final determination of the commissioner may petition
16.16the commissioner for reconsideration of findings within 20 days of the publication or
16.17decision. A person aggrieved by a decision of the commissioner after reconsideration may
16.18within 20 days after the decision petition the commissioner for a public hearing as in a
16.19contested case under sections 14.57 to 14.61. If the commissioner finds that a change in
16.20the certified prevailing hours of labor, prevailing wage rate, and the hourly basic rate of
16.21pay for a class of laborers or mechanics in any area is required, the commissioner may at
16.22any time certify that change and the certified change is effective on a project advertised
16.23for bid on or after the date of certification.
16.24    Subd. 5. Hours and rates to be posted. The prevailing hours of labor, the
16.25prevailing wage rates, the hourly basic rates of pay, and classifications for all labor as
16.26certified by the commissioner must be specifically stated in the proposals and contracts
16.27for each highway construction contract to which the state is a party transportation
16.28contract which is funded in whole or in part with state funds. In addition to the wage
16.29determinations issued by the Department of Labor and Industry, the contracting authority
16.30must incorporate into its proposals and contracts the contract language provided by the
16.31commissioner of transportation to notify the contractor of the application of sections
16.32177.41 to 177.46. Failure to incorporate the proper determination into the contracts makes
16.33the contracting authority liable for making the contractor whole for the increases in the
16.34wages paid, including employment taxes and reasonable administrative costs based on the
16.35increased wages, to the laborers or mechanics working on the project. The contracting
16.36authority is authorized to incorporate into the bid documents for each project a compliance
17.1monitoring surcharge provision. The surcharge shall be a percentage of the engineer's
17.2estimate of the project. The surcharge percentage shall be either an amount set annually
17.3by the commissioner for all projects after investigation to determine the expected costs
17.4of monitoring compliance, or an amount requested by the contracting authority and
17.5authorized by the commissioner, and will be a percentage sufficient, to pay the estimated
17.6cost to the contracting authority of monitoring compliance with sections 177.41 to 177.46.
17.7The surcharge shall be incorporated into the contract for the project and paid by the
17.8contractor to the contracting authority within two weeks of the payment by the contracting
17.9authority of the mobilization cost for the project as specified in the successful bid. The
17.10contracting authority shall use this surcharge exclusively to defray costs of monitoring
17.11compliance with sections 177.41 to 177.46.
17.12    These hours, rates, and classifications, together with the name of the project engineer
17.13or agency contact person, telephone number, project identification numbers, and a
17.14summary of the provisions of subdivision 6, and a summary of section 177.46, must be
17.15kept posted directly on the project by the employer contractor in at least one conspicuous
17.16place and accessible location for the information of employees all laborers or mechanics
17.17working on the project. The contracting authority must ensure the contractor keeps the
17.18required information on the project from the start of work until all work is completed
17.19on the project.
17.20    Subd. 6. Penalties Penalties: criminal, civil, and debarment. (a) It is a violation
17.21for an officer or employee of the state or contracting authority to knowingly execute
17.22a contract for a project without the wage determination or contract language provided
17.23by the commissioner of transportation on the application of this section, or knowingly
17.24close a contract with violations of this section or assessments by the commissioner of
17.25transportation. A violation may be subject to the penalties under section 609.43.
17.26    A contractor, subcontractor, or agent who violates this section is guilty of a gross
17.27misdemeanor for the first conviction of a criminal offense under this section and may
17.28must be fined for each violation not more than $300 $3,000 or imprisoned not more than
17.2990 days one year or both, and required to reimburse the county attorney or attorney
17.30general for the cost of prosecution. Each day that the violation continues is a separate
17.31offense. It is a felony for the second criminal conviction of a contractor, subcontractor,
17.32or agent for violations of this section, or for a criminal conviction of a total unpaid back
17.33wage assessment by the commissioner of transportation against the violating contractor,
17.34subcontractor, or agent in excess of $100,000, and must be fined for the violation not more
17.35than $10,000, or imprisoned no more than five years, or both, and required to reimburse
18.1the county attorney or the attorney general for the cost of prosecution. Each day that the
18.2violation continues is a separate offense.
18.3    Whoever induces a job applicant or employee on any project subject to this section
18.4to give up or forego any part of the wages to which entitled under the contract governing
18.5the project by threat not to employ, by threat of dismissal from employment, or by any
18.6other means, or knowingly alters official company employment or time records to falsely
18.7report the employee's pay, may be fined not exceeding $1,000 $3,000 or imprisoned not
18.8more than one year, or both. Each day that the violation continues is a separate offense.
18.9    Any employee under this section who knowingly permits the contractor or,
18.10subcontractor, or agent to pay less than the prevailing wage rate set forth in the contract,
18.11or who gives up any part of the compensation to which entitled under the contract, may
18.12be fined not exceeding $40 or imprisoned not more than 30 days, or both. Each day any
18.13violation of this paragraph continues is a separate offense.
18.14    In addition to or instead of criminal prosecution under this subdivision, the
18.15commissioner of transportation may engage in any civil enforcement actions authorized
18.16by this section or section 177.45.
18.17    (b) Penalties to be assessed by the contracting authorities. The contracting authority
18.18may deduct from what is owed the contractor on the project for civil penalties and
18.19assessments as defined by this section and provisions of section 177.44.
18.20    (1) After written notification by the contracting authority, a civil penalty of $100
18.21per day shall be assessed against the contractor for each day work is performed on the
18.22project and the poster board is not placed or maintained on the project work site at a
18.23location acceptable to the contracting authority.
18.24    (2) After written notification by the contracting authority, a civil penalty of $100 per
18.25week against the contractor for each week the contractor's certified payrolls or any of the
18.26individual subcontractor or agent-certified payrolls are not submitted.
18.27    (3) After written notification by the contracting authority, a civil penalty of $50 per
18.28week shall be assessed against the contractor for each week that the subcontractor or agent
18.29forms as defined in section 177.44, subdivision 7, are not submitted.
18.30    (4) After written notification by the contracting authority, a civil penalty of $100
18.31may be assessed against the contractor for each week the approved trucking form as
18.32described in section 177.44, subdivision 3, is not submitted.
18.33    (c) A contractor, subcontractor, or agent that is convicted criminally or held liable
18.34civilly under this section must be debarred by the commissioner of transportation under
18.35section 161.315 from working on any contracts funded in whole or in part with state funds
18.36as a contractor, subcontractor, agent, or material supplier for a period of at least one year
19.1and not more than three years. The commissioner of transportation shall report a debarred
19.2entity to the commissioner of labor and industry for publication. If any contracting
19.3authority has debarred an entity for prevailing wage violations, the contracting authority
19.4must report the debarment to the commissioner of labor and industry. All contracting
19.5authorities are required to review the list of debarred entities and may not contact with a
19.6debarred entity or allow a debarred entity to work on any project as a subcontractor,
19.7material supplier, or in any other capacity.
19.8    Subd. 7. Department of Transportation to enforce. The Department of
19.9Transportation shall require adherence to this section. The commissioner of transportation
19.10may demand and every contractor and subcontractor shall furnish copies of payrolls. all
19.11sections relating to sections 177.41 to 177.46 on active project contracts for which the
19.12Department of Transportation is the contracting authority, or on active contracts that
19.13the commissioner of transportation has been delegated authority to be the contracting
19.14authority, or on active contracts that the commissioner of transportation has been delegated
19.15authority to be the contracting authority, or on active contracts that the commissioner
19.16of transportation has authority to oversee the distribution of constitutional mandated
19.17state funding to other local governmental bodies, or units of government, or political
19.18subdivisions who act as the contracting authority. The Department of Transportation
19.19shall maintain a staff of at least five investigators to ensure compliance on the projects.
19.20The commissioner of transportation or contracting authority shall hold confidential any
19.21complaint filed by a laborer or mechanic or filed on behalf of a laborer or mechanic.
19.22    The contracting authority must require weekly submittal of certified payrolls from
19.23every contractor and subcontractor or agent performing work under the contract. The
19.24contractor must submit certified payrolls for the contractor's own workforce along with
19.25payrolls from all subcontractors and agents working on the project. The contracting
19.26authority must maintain the payrolls under the contracting agency's normal record
19.27retention schedules for a minimum of two years past the closing of the contract. Each
19.28contracting authority must redact the Social Security number and address of each laborer
19.29or mechanic from each certified payroll before any person other than an employee of the
19.30contracting authority, the Department of Transportation, or the Department of Labor and
19.31Industry is allowed to review the certified payroll. Certified payrolls must be submitted
19.32within one week after the week ending date of the week in which the work was performed.
19.33Each subcontractor or agent must furnish to the contractor weekly certified payrolls that
19.34demonstrate compliance with this section. The commissioner of transportation may
19.35deduct from what is owed the contractor on the project or after written notification, any
19.36other state-funded projects under the commissioner of transportation's authority that the
20.1contractor is working on, any penalties or back wage assessments. The contracting
20.2authority may deduct from what is owed the contractor on the project for civil penalties
20.3and assessments for violations on the project. The contracting authority shall interview
20.4laborers or mechanics on the project site and shall randomly review the weekly certified
20.5payrolls, subcontract agreements, project documentation, and employee interviews if the
20.6contractor has demonstrated compliance with this section. The contracting authority
20.7has authority to request all records relating to the hours of work, wages paid, or cost of
20.8providing fringe benefits, to laborers and mechanics performing work under a contract
20.9to determine compliance with sections 177.41 to 177.46. In addition, the contractor
20.10may interview all laborers or mechanics on the project and review subcontractor or
20.11agents' payroll information to ensure compliance with this section. If a contracting
20.12authority is unable to achieve or determine compliance on a project, the commissioner of
20.13transportation must be notified in writing of the problems or violations.
20.14    The contractor must incorporate into all subcontract agreements, purchase orders, or
20.15other written agreements which provide for work covered by this section the contract wage
20.16determination and the contract language provided by the commissioner of transportation
20.17contained in the contract. The contractor must also ensure that all secondary subcontract
20.18agreements, purchase orders, or other written agreements which provide for work covered
20.19by this section contain the same language. The contractor must provide a written certified
20.20confirmation on a form provided by the contracting authority that all subcontractors and
20.21agents have received the required contract wage determinations and contract language.
20.22The form must be provided to the contracting authority prior to any subcontractor or agent
20.23working on the project. If the contractor does not provide the information required to the
20.24subcontractor or agents, or the form to the contracting authority, the contractor must be the
20.25sole entity responsible for any contracting authority or commissioner's assessment.
20.26    The commissioner of transportation may examine all business, employment,
20.27and time records and other documents relating to hours of work and the wages paid
20.28laborers and or mechanics on work to which considered necessary by the commissioner
20.29of transportation to ensure compliance with this section applies. Upon request of the
20.30Department of Transportation or upon complaint of alleged violation, the county attorney
20.31of the county in which the work is located shall investigate and prosecute violations in a
20.32court of competent jurisdiction.
20.33    If the commissioner of transportation determines that a violation has occurred, the
20.34commissioner of transportation shall determine the amount of back wages owed to the
20.35affected laborer or mechanic, plus a civil penalty equal to 100 percent of the back wages
20.36owed, to be paid to the affected laborer or mechanic, and an additional civil penalty equal
21.1to 100 percent of the back wages owed to be paid to the commissioner of transportation
21.2and to be deposited into a dedicated fund to be used by the Department of Transportation
21.3for future prevailing wage enforcement, educational, and outreach programs and assess
21.4the total amount of back wages owed and penalties against the violating contractor,
21.5subcontractor, or agent accordingly. If there is a determination that a violation has
21.6occurred, the commissioner of transportation may investigate all other open and closed
21.7contracts, requiring payment of prevailing wages, on which that contractor, subcontractor,
21.8or agent performed any work within the previous two years.
21.9    (1) For investigations on projects where the contracting authority is the Department
21.10of Transportation, the project engineer and contractor must be notified in writing of the
21.11violations and determination of assessments. If the violating contractor, subcontractor, or
21.12agent does not comply with the commissioner of transportation's assessment within 20
21.13days of written notification, the commissioner of transportation must cause to be withheld
21.14from any money owed the contractor by the Department of Transportation a reasonable
21.15amount to ensure compliance with the assessments.
21.16    (2) For investigations where the contracting authority is a local governmental body
21.17or political subdivision of the state, the commissioner of transportation shall notify in
21.18writing the contracting authority and the contractor of the violations and determination of
21.19assessments and the contracting authority shall withhold a reasonable amount to ensure
21.20compliance with the commissioner of transportation's determination. The contracting
21.21authority must require adherence to the commissioner of transportation's assessment.
21.22    After 60 days of written notification, the commissioner of transportation shall
21.23consider the unpaid assessment as an unresolved violation of this section. The
21.24commissioner of transportation shall report any unresolved violations, willful violations,
21.25or second offense violations of a similar nature, of this section to both the county attorney
21.26where the alleged violation occurred and to the attorney general. A county attorney shall
21.27notify the commissioner of transportation and the attorney general upon commencing an
21.28action for a violation of this section. The county attorney shall also give notice to the
21.29commissioner of transportation and the attorney general of the outcome of the action,
21.30including detailed reasons for the dismissal or settlement of an action pursuant to a plea
21.31agreement that awards less than the maximum penalties for a violation of this section. The
21.32commissioner of transportation shall notify the contracting authority.
21.33    If the attorney general does not receive notice of the commencement of an action
21.34by a county attorney, as required by this subdivision, within six months of receiving
21.35an unresolved violation report from the commissioner of transportation, the attorney
21.36general shall pursue the suspected violation in a court of competent jurisdiction, unless the
22.1attorney general and commissioner of transportation agree that civil enforcement will be
22.2sufficient to effectuate the policies of sections 177.41 to 177.46.

22.3    Sec. 12. [177.45] INVESTIGATIONS AND SUBPOENAS.
22.4    Subdivision 1. General powers. For the purposes of this section, "commissioner"
22.5means the commissioner of labor and industry with respect to duties and responsibilities
22.6entrusted to the commissioner of labor and industry by sections 177.41 to 177.46, and
22.7the commissioner of transportation with respect to duties and responsibilities entrusted to
22.8the commissioner of transportation by sections 177.41 to 177.46. In connection with the
22.9duties and responsibilities entrusted to each commissioner pursuant to sections 177.41 to
22.10177.46, each commissioner may:
22.11    (1) conduct investigations necessary to determine whether any person has violated
22.12or is about to violate this section;
22.13    (2) require or permit any person to file a statement in writing, under oath, or
22.14otherwise as the commissioner determines, as to all the facts and circumstances concerning
22.15the matter being investigated;
22.16    (3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
22.17duties and responsibilities entrusted to the commissioner;
22.18    (4) conduct investigations and hold hearings for the purpose of compiling
22.19information related to the duties and responsibilities entrusted to the commissioner;
22.20    (5) examine the books, accounts, records, and files of every contractor, subcontractor,
22.21or agent and of every person who is engaged in work under a contract subject to sections
22.22177.41 to 177.46; the commissioner or a designated representative must have free access
22.23during normal business hours to the offices and places of business of the person, and to
22.24all books, accounts, papers, records, files, safes, and vaults maintained in the place of
22.25business; and
22.26    (6) publish information that is contained in any order issued by the commissioner.
22.27    Subd. 2. Response to department requests. A contractor, subcontractor,
22.28agent, or other person performing work under a contract subject to the jurisdiction of
22.29the commissioner must comply with requests for information, documents, or other
22.30requests from the department within the time specified in the request, or, if no time is
22.31specified, within 30 days of the mailing of the request by the department. A contractor,
22.32subcontractor, agent, or other person subject to the jurisdiction of the commissioner must
22.33appear before the commissioner or the commissioner's representative when requested to
22.34do so and bring all documents or materials that the commissioner or the commissioner's
22.35representative has requested.
23.1    Subd. 3. Power to compel production of evidence. For the purpose of any
23.2investigation, hearing, proceeding, or inquiry related to the duties and responsibilities
23.3entrusted to the commissioner, the commissioner or a designated representative may
23.4administer oaths and affirmations, subpoena witnesses, compel attendance, take evidence,
23.5and require the production of books, papers, correspondence, memoranda, agreements,
23.6or other documents or records that the commissioner considers relevant or material
23.7to the inquiry.
23.8    Subd. 4. Court orders. In case of a refusal to appear or a refusal to obey a subpoena
23.9issued to any person, the district court, upon application by the commissioner, may issue
23.10to any person an order directing that person to appear before the commissioner or the
23.11officer designated by the commissioner and produce documentary evidence if so ordered
23.12or give evidence relating to the matter under investigation or in question. Failure to obey
23.13the order of the court may be punished by the court as a contempt of court.
23.14    Subd. 5. Scope of privilege. No person is excused from attending and testifying
23.15or from producing any document or record before the commissioner or from obedience
23.16to the subpoena of the commissioner or any officer designated by the commissioner or
23.17in a proceeding instituted by the commissioner, on the ground that the testimony or
23.18evidence required may tend to incriminate that person or subject that person to a penalty
23.19of forfeiture. No person may be prosecuted or subjected to a penalty or forfeiture for or
23.20on account of a transaction, matter, or thing concerning which the person is compelled,
23.21after claiming the privilege against self-incrimination, to testify or produce evidence,
23.22documentary or otherwise, except that the individual is not exempt from prosecution and
23.23punishment for perjury or contempt committed in testifying.
23.24    Subd. 6. Compliance orders. The commissioner may issue an order requiring a
23.25contractor, subcontractor, or agent to comply with an assessment issued by an investigator
23.26pursuant to section 177.43 or 177.44. The department shall serve the order upon the
23.27contractor, subcontractor, or agent, or the party's authorized representative, in person
23.28or by certified mail at the contractor's, subcontractor's, or agent's place of business. A
23.29contractor, subcontractor, or agent who wishes to contest the order must file written notice
23.30of objection to the order with the commissioner within 15 calendar days after being served
23.31with the order. A contested case proceeding must then be held according to sections 14.57
23.32to 14.69. If, within 15 calendar days after being served with the order, the contractor,
23.33subcontractor, or agent fails to file a written notice of objection with the commissioner, the
23.34order becomes a final order of the commissioner.
24.1    Subd. 7. Contractor, subcontractor, or agent liability. If the commissioner issues
24.2a compliance order under subdivision 6, the commissioner shall order the contractor,
24.3subcontractor, or agent to cease and desist from engaging in the violative practice and
24.4to take such affirmative steps that in the judgment of the commissioner will effectuate
24.5the purposes of the section violated. The commissioner shall order the contractor,
24.6subcontractor, or agent to pay the assessed amounts to the department and the department
24.7shall distribute to the affected laborers or mechanics the portions of the assessment
24.8designated for the laborer or mechanic. Any contractor, subcontractor, or agent that is
24.9found by the commissioner to have repeatedly or willfully violated a section or sections
24.10identified in subdivision 6 shall be subject to a civil penalty of up to $1,000 for each
24.11violation for each laborer or mechanic. In determining the amount of a civil penalty
24.12under this subdivision, the appropriateness of the penalty to the size of the contractor's,
24.13subcontractor's, or agent's business and the gravity of the violation shall be considered.
24.14In addition, the commissioner may order the contractor, subcontractor, or agent to
24.15reimburse the department and the attorney general for all appropriate litigation and hearing
24.16costs expended in preparation for and in conducting the contested case proceeding,
24.17unless payment of costs would impose extreme financial hardship on the contractor,
24.18subcontractor, or agent. If the contractor, subcontractor, or agent is able to establish
24.19extreme financial hardship, then the commissioner may order the contractor, subcontractor,
24.20or agent to pay a percentage of the total costs that will not cause extreme financial
24.21hardship. Costs include but are not limited to the costs of services rendered by the attorney
24.22general, attorneys for the department, private attorneys if engaged by the department,
24.23administrative law judges, court reporters, expert witnesses, and the cost of transcripts.
24.24Interest shall accrue on and be added to the unpaid balance of a commissioner's order from
24.25the date the order is signed by the commissioner until it is paid, at an annual rate provided
24.26in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow
24.27accounts for purposes of distributing damages.
24.28    Subd. 8. Civil actions. The commissioner may bring an action in the district court
24.29where a contractor, subcontractor, or agent resides or where the commissioner maintains
24.30an office to enforce or require compliance with orders issued under subdivision 6 or 7.
24.31    Subd. 9. Legal actions; injunctions. Whenever it appears to the commissioner that
24.32a person has engaged or is about to engage in any act or practice constituting a violation of
24.33this section or order related to the duties and responsibilities entrusted to the commissioner,
24.34the commissioner may bring an action in the name of the state in Ramsey County District
24.35Court or the district court of an appropriate county to enjoin the acts or practices and to
24.36enforce compliance, or the commissioner may refer the matter to the attorney general or
25.1the county attorney of the appropriate county. A permanent injunction or other appropriate
25.2relief must be granted based solely upon a showing that the person has engaged or is about
25.3to engage in an act or practice constituting a violation of a law, rule, or order related to the
25.4duties and responsibilities entrusted to the commissioner. The terms of this subdivision
25.5govern an action brought under this subdivision, including an action against a person who,
25.6for whatever reason, claims that the subject law, rule, or order does not apply to the person.
25.7    Subd. 10. Powers additional. The powers contained in sections 177.41 to 177.46
25.8are in addition to all other powers of the commissioner of labor and industry, commissioner
25.9of transportation, and any contracting authority.

25.10    Sec. 13. [177.46] COURT ACTIONS; PRIVATE PARTY CIVIL ACTIONS.
25.11    Subdivision 1. Civil action; damages. A laborer or mechanic may bring a civil
25.12action seeking redress for violations of sections 177.41 to 177.46 directly to district court.
25.13A contractor, subcontractor, or agent who is found to have violated sections 177.41 to
25.14177.46 is liable to the aggrieved party for all unpaid wages. A contractor, subcontractor,
25.15or agent who is found to have violated sections 177.41 to 177.46 is also liable for
25.16compensatory damages, interest on the unpaid wages at the statutory rate, liquidated
25.17damages equal to three times the wages owed, punitive damages for repeated or willful
25.18violations, and any other appropriate relief including, but not limited to, injunctive relief.
25.19The contracting authority must provide the laborer or mechanic bringing the action any
25.20and all requested project records, including certified payrolls with Social Security numbers
25.21and employee addresses redacted, after written notice, and that has been deemed to be a
25.22public record, at a reasonable cost.
25.23    Subd. 2. District court jurisdiction. An action brought under subdivision 1 may be
25.24filed in the district court of the county where a violation is alleged to have been committed,
25.25where the respondent resides or has a principal place of business, where the contracting
25.26authority has its main office, or any other court of competent jurisdiction.
25.27    Subd. 3. Persons who may sue. An action authorized by this section may be
25.28maintained against any contractor, subcontractor, or agent by any one or more laborers
25.29or mechanics for and on behalf of themselves and other laborers or mechanics similarly
25.30situated. No laborer or mechanic must be a party plaintiff to any action authorized by this
25.31section unless the laborer or mechanic gives consent in writing to become a party and the
25.32consent is filed in the court in which the action is brought.
25.33    Subd. 4. Discovery allowed. Upon request, a contractor, subcontractor, or agent
25.34against whom an action authorized by this section is brought, must provide to any plaintiff
25.35records kept in the normal course of its business that show all laborers or mechanics
26.1working on the project including the last known address, hours worked, classifications
26.2worked, and wages and benefits paid for the work performed, with Social Security
26.3numbers redacted from those records. The records must be provided without court
26.4order. If a contractor, subcontractor, or agent refuses to provide this information without
26.5court order, the court must include in the order a provision requiring the contractor,
26.6subcontractor, or agent to pay the reasonable attorney fees and costs incurred by the
26.7laborer or mechanic in bringing a motion for the court order.
26.8    Subd. 5. Attorney fees and costs. In an action brought under subdivision 1, the
26.9court shall order any entity who is found to have committed a violation to pay to the
26.10aggrieved party reasonable costs, disbursements, witness fees, and attorney fees.
26.11    Subd. 6. Civil penalty. In an action brought under subdivision 1, the court shall
26.12order any entity who is found to have committed a violation to pay a civil penalty equal
26.13to 100 percent of the total damages awarded to all plaintiffs in the action, including the
26.14fees and costs awarded under subdivision 5, to the commissioner of labor and industry
26.15or the commissioner of transportation whichever agency is responsible for enforcement
26.16with respect to the project to be deposited into a dedicated fund to be used in future
26.17enforcement efforts of sections 177.43 and 177.44.

26.18    Sec. 14. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
26.19to read:
26.20    Subd. 20. Debarred entities. Notwithstanding any other provision of this section,
26.21municipalities must comply with sections 177.43 and 177.44 with respect to awarding any
26.22contracts subject to sections 177.41 to 177.46."
26.23Amend the title accordingly