This bill amends existing 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. Currently, contractors or subcontractors who do not comply with prevailing wage laws are barred from obtaining public works contracts for three years. The new language specifies that this prohibition will also apply to any cooperative, corporation, or partnership in which a contractor or subcontractor with a history of wage violations has an interest.

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. The bill also clarifies the term "interest" to include various forms of involvement with the firm, corporation, or partnership, and establishes a rebuttable presumption of interest based on shared characteristics or capacities between entities. The act is set to take effect 90 days after its enactment.

Statutes affected:
Introduced: 34:11-56.38