This bill amends current law to extend the prohibition on receiving public works contracts to cooperatives when at least one member of the cooperative has failed to pay prevailing wages. Previously, this prohibition applied only to contractors and subcontractors. The new language specifies that no contract shall be awarded to any cooperative, corporation, or partnership in which a contractor or subcontractor with a history of wage violations has an interest for a period of three years from the date of their listing as determined by the commissioner.

Additionally, the bill provides a definition of "cooperative" as a system of collective ownership where shareholders or co-owners have a long-term proprietary interest or control over the business operations. It also clarifies the term "interest" to include various forms of involvement with the firm, corporation, or partnership, while excluding shares held in publicly traded corporations under certain conditions. The bill allows for a rebuttable presumption of interest based on shared characteristics or capacities between entities, and it establishes a process for affected parties to request a hearing if they believe the presumption is unjust. The act is set to take effect 90 days after enactment.

Statutes affected:
Introduced: 34:11-56.38