SENATE BILL NO. 425

INTRODUCED BY B. WILSON

A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING A CONTRACTOR OR SUBCONTRACTOR TO SUBMIT CERTIFIED PAYROLL RECORDS FOR WORKERS RECEIVING AN HOURLY WAGE ON A WEEKLY BASIS; PROVIDING THAT THE PENALTY FOR FAILING TO SUBMIT CERTIFIED PAYROLL RECORDS IS ONE PERCENT OF THE CONTRACT PRICE OR UP TO $5,000, WHICHEVER IS LESS; AMENDING SECTIONS 18-2-423, 18-2-424, AND 18-2-432, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 18-2-423, MCA, is amended to read:

"18-2-423. Submission of payroll records. A contractor , subcontractor, or employer required to pay standard prevailing wages on a public works contract shall submit certified payroll records on a weekly basis to the contracting agency or an authorized representative. Employees receiving an hourly wage must be paid on a weekly basis. If a wage violation complaint is filed with the department, the contractor , subcontractor, or employer shall provide the employee's payroll records to the department within 5 days of receiving the payroll request from the department."

Section 2. Section 18-2-424, MCA, is amended to read:

"18-2-424. Enforcement. If a contractor , subcontractor, or employer refuses or fails to submit certified payroll records pursuant to 18-2-423, the commissioner or the commissioner's authorized representative may issue subpoenas compelling the production of those records."

Section 3. Section 18-2-432, MCA, is amended to read:

"18-2-432. Penalty for violation. (1) If a person, firm, or corporation fails to comply with the provisions of this part, the state, county, municipality, school district, or officer of a political subdivision that executed the public works contract shall retain 1% of the contract price or up to $5,000, whichever is less, as liquidated damages for the violation of the terms of the public works contract, and the money must be credited to the proper funds of the state, county, municipality, school district, or political subdivision.

(2) Whenever a contractor , subcontractor, or employer is found by the commissioner to have intentionally violated the labor standards provisions of this chapter, the contractor or subcontractor or any firm, corporation, partnership, or association in which the contractor or subcontractor has a substantial interest is ineligible, for a period not to exceed 3 years after the date of the final judgment, to receive any public works contracts or subcontracts that are subject to the provisions of this chapter.

(3) Whenever an action has been instituted in a district court in this state against any person, firm, or corporation for the violation of this part, the court in which the action is pending is authorized to issue an injunction to restrain the person, firm, or corporation from proceeding with a public works contract with the state, county, municipality, school district, or political subdivision, pending the final determination of the instituted action."

NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval and applies to wage claims filed on or after July 1, 1999.

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