Virginia HB 58: Local government; prohibits certain practices that would require contractors to provide benefits.

Bill Text

2022SESSION
HOUSESUBSTITUTE
22104664D
1 HOUSEBILLNO.58
2 AMENDMENTINTHENATUREOFASUBSTITUTE
3 (ProposedbytheHouseCommitteeonGeneralLaws
4 onJanuary25,2022)
5 (PatronPriortoSubstitute––DelegateDavis)
6 A BILL to amend and reenact § 2.2-4321.3 of the Code of Virginia, relating to prevailing wage rate;
7 localities.
8 Be it enacted by the General Assembly of Virginia:
9 1. That §2.2-4321.3 of the Code of Virginia is amended and reenacted as follows:
10 § 2.2-4321.3. Payment of prevailing wage for work performed on public works contracts;
11 penalty.
12 A. As used in this section:
13 "Locality" means any county, city, or town, school division, or other political subdivision.
14 "Prevailing wage rate" means the rate, amount, or level of wages, salaries, benefits, and other
15 remuneration prevailing for the corresponding classes of mechanics, laborers, or workers employed for
16 the same work in the same trade or occupation in the locality in which the public facility or immovable
17 property that is the subject of public works is located, as determined by the Commissioner of Labor and
18 Industry on the basis of applicable prevailing wage rate determinations made by the U.S. Secretary of
19 Labor under the provisions of the Davis-Bacon Act, 40 U.S.C. §276 et seq., as amended.
20 "Public works" means the operation, erection, construction, alteration, improvement, maintenance, or
21 repair of any public facility or immovable property owned, used, or leased by a state agency or locality,
22 including transportation infrastructure projects.
23 "State agency" means any authority, board, department, instrumentality, institution, agency, or other
24 unit of state government. "State agency" does not include any county, city, or town.
25 B. Notwithstanding any other provision of this chapter, each state agency, when procuring services or
26 letting contracts for public works paid for in whole or in part by state funds, or when overseeing or
27 administering such contracts for public works, shall ensure that its bid specifications or other public
28 contracts applicable to the public works require bidders, offerors, contractors, and subcontractors to pay
29 wages, salaries, benefits, and other remuneration to any mechanic, laborer, or worker employed, retained,
30 or otherwise hired to perform services in connection with the public contract for public works at the
31 prevailing wage rate. Each public contract for public works by a state agency shall contain a provision
32 requiring that the remuneration to any individual performing the work of any mechanic, laborer, or
33 worker on the work contracted to be done under the public contract shall be at a rate equal to the
34 prevailing wage rate.
35 C. Notwithstanding any other provision of this chapter, any locality may adopt an ordinance
36 requiring that, when letting contracts for public works paid for in whole or in part by funds of the
37 locality, or when overseeing or administering a public contract, its bid specifications, project agreements,
38 or other public contracts applicable to the public works shall require bidders, offerors, contractors, and
39 subcontractors to pay wages, salaries, benefits, and other remuneration to any mechanic, laborer, or
40 worker employed, retained, or otherwise hired to perform services in connection with the public contract
41 at the prevailing wage rate. Each public contract of a locality that has adopted an ordinance described in
42 this section shall contain a provision requiring that the remuneration to any individual performing the
43 work of any mechanic, laborer, or worker on the work contracted to be done under the public contract
44 shall be at a rate equal to the prevailing wage rate no locality shall establish provisions related to
45 procurement of goods, professional services, or construction that would require a wage floor or any
46 other employee benefit or compensation above what is otherwise required by state or federal law to be
47 provided by a contractor to one or more of the contractor's employees as part of a contract with the
48 locality. For purposes of this subsection, "professional services" means the same as that term is defined
49 in § 2.2-4301. The provisions of this subsection shall not (i) affect contracts between a locality and
50 another party that were executed prior to January 1, 2023, or the renewal or future rebids of services
51 thereof or (ii) prohibit a locality from entering into contracts for economic development incentives in
52 which the company receiving the incentives is required to maintain a certain stated wage level for its
53 employees.
54 D. Any contractor or subcontractor who employs any mechanic, laborer, or worker to perform work
55 contracted to be done under the public contract for public works for or on behalf of a state agency or
56 for or on behalf of a locality that has adopted an ordinance described in subsection C or at a rate that is
57 less than the prevailing wage rat