This bill amends existing law to extend the prohibition on receiving public works contracts to cooperatives when at least one member has failed to pay prevailing wages. Currently, contractors or subcontractors who do not comply with prevailing wage laws are barred from 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 meaning of "interest" in this context, detailing various forms of involvement that would disqualify a cooperative from receiving contracts. A rebuttable presumption of interest can arise under certain conditions, allowing affected parties to request a hearing if they believe the presumption is unjustified. The act is set to take effect 90 days after enactment.

Statutes affected:
Introduced: 34:11-56.38