Bill Text: OR HB3118 | 2013 | Regular Session | Introduced

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Bill Title: Relating to apprenticeship in connection with public works projects; declaring an emergency.

Sponsorship: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3118 Detail]

Download: Oregon-2013-HB3118-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3175

                         House Bill 3118

Sponsored by COMMITTEE ON HIGHER EDUCATION AND WORKFORCE
  DEVELOPMENT

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires public agency that awards contract with contract price
in excess of $5 million to require contractor to have apprentices
perform at least 10 percent of work hours on public works project
that workers in apprenticeable occupations perform.  Provides
that public agency shall pay contractor for imputed costs
contractor incurs in complying with requirement and deduct from
payment to contractor amount equivalent to imputed costs if
contractor fails to comply with requirement.
  Specifies reporting requirements for contractor and requires
contractor to repay amounts that public agency pays in excess of
amount due contractor.
  Requires public agency to verify that contractor is approved
training agent.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to apprenticeship in connection with public works
  projects; creating new provisions; amending ORS 351.086; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS 279C.800 to 279C.870. + }
  SECTION 2.  { + (1) As used in this section:
  (a) 'Apprentice' has the meaning given that term in ORS
660.010.
  (b) 'Apprenticeable occupation' has the meaning given that term
in ORS 660.010.
  (c) 'Apprenticeship agreement' has the meaning given that term
in ORS 660.010.
  (d) 'Apprenticeship training program' means the total system of
apprenticeship that a particular local joint committee, as
defined in ORS 660.010, operates, including the local joint
committee's registered standards and all other terms and
conditions for qualifying, recruiting, selecting, employing and
training apprentices in an apprenticeable occupation.
  (2)(a) A public agency shall:
  (A) Require as a material term in each public works contract,
the contract price of which exceeds $5 million, that a contractor
employ apprentices to perform at least 10 percent of the work

hours that workers in apprenticeable occupations perform on the
public works project; and
  (B) Provide in the public works contract that, subject to
subsection (3) of this section, the public agency will pay the
contractor at a rate of $20 per hour for imputed costs the
contractor incurs in having apprentices perform the work.
  (b) A contractor or subcontractor shall pay an apprentice for
work on the public works project at the hourly rate to which the
apprentice is entitled under an apprenticeship agreement or that
the apprenticeship training program specifies.
  (c) This subsection does not apply to a public works project
that does not use state funds.
  (3) A public agency shall provide in the public works contract
that if the contractor meets or exceeds the requirement in
subsection (2)(a)(A) of this section, the public agency will pay
a contractor at the rate specified in subsection (2)(a)(B) of
this section for the total number of work hours that apprentices
perform on a public works project up to a maximum amount that is
equivalent to the imputed costs the contractor would incur in
having apprentices perform 15 percent of the work hours that
workers in apprenticeable occupations perform on the public works
project. A public agency may not pay a contractor any amount for
the contractor's imputed costs in having apprentices perform work
on the public works project if the contractor does not meet or
exceed the requirement in subsection (2)(a)(A) of this section.
  (4) A contractor shall report the extent of the contractor's
compliance with this section to the public agency on forms, with
contents the public agency specifies by rule, and at regular
intervals that the public agency specifies in the public works
contract. The forms and the contents that the public agency
specifies must include, at a minimum, a report in which the
contractor provides a detailed accounting of the total number of
work hours each month and the cumulative total number of work
hours since the public works contract term began in which:
  (a) Workers in apprenticeable occupations performed work on the
public works project; and
  (b) Apprentices performed work on the public works project.
The contractor must identify each apprentice that performed work
on the public works project by name and by the identification
number that the Bureau of Labor and Industries issues for the
apprentice.
  (5) Subject to subsection (6) of this section, a public agency
may pay a contractor for the contractor's imputed costs in
complying with the requirement in subsection (2)(a)(A) of this
section in regular installments or periodically during the term
of the public works contract if the contractor requests regular
installment payments or periodic payments.
  (6)(a) At least 30 days before making any final payment to a
contractor under a public works contract, a public agency shall
determine the extent of the contractor's compliance with the
requirement in subsection (2)(a)(A) of this section. The public
agency shall base the determination on the ratio between the
actual number of work hours that workers in apprenticeable
occupations performed on the public works project and the actual
number of work hours that apprentices performed on the public
works project, as shown in reports the public agency receives
under subsection (4) of this section.
  (b) If the public agency determines under paragraph (a) of this
subsection that the contractor has complied with the requirement
in subsection (2)(a)(A) of this section, the public agency, in
accordance with the limitations set forth in subsection (3) of
this section, shall make a final payment to the contractor that
includes the contractor's imputed costs of complying with the
requirement. If the public agency determines that the contractor
has not complied with the requirement, the public agency shall
deduct from the final payment due the contractor under the terms
of the public works contract either an amount that is equivalent
to the contractor's imputed costs of complying with the
requirement over the entire term of the public works contract or
an amount that is equivalent to the entire amount the public
agency previously paid the contractor for the contractor's
imputed costs, as appropriate. The contractor forfeits and may
not collect any amount the public agency deducts under this
paragraph.
  (c) If the public agency pays the contractor for the
contractor's imputed costs of complying with the requirement in
subsection (2)(a)(A) of this section in regular installments or
at periodic intervals, the public agency shall make the
determination required under paragraph (a) of this subsection
before each scheduled payment of the imputed costs. If the public
agency determines that the contractor complied with the
requirement, the public agency shall make the scheduled payment
in accordance with the limitations set forth in subsection (3) of
this section. If the public agency determines that the contractor
failed to comply with the requirement during the interval that
precedes a scheduled payment, the public agency may withhold the
scheduled payment.
  (d) If a public agency previously paid a contractor an amount
that exceeds the amount due the contractor under paragraph (b) or
(c) of this subsection, the public agency shall notify the
contractor immediately and require the contractor to repay the
excess amount within 30 days after receiving the notice. + }
  SECTION 3. Section 2 of this 2013 Act is amended to read:
   { +  Sec. 2. + } (1) As used in this section:
  (a) 'Apprentice' has the meaning given that term in ORS
660.010.
  (b) 'Apprenticeable occupation' has the meaning given that term
in ORS 660.010.
  (c) 'Apprenticeship agreement' has the meaning given that term
in ORS 660.010.
  (d) 'Apprenticeship training program' means the total system of
apprenticeship that a particular local joint committee, as
defined in ORS 660.010, operates, including the local joint
committee's registered standards and all other terms and
conditions for qualifying, recruiting, selecting, employing and
training apprentices in an apprenticeable occupation.
  (2)(a) A public agency shall:
  (A) Require as a material term in each public works contract,
the contract price of which exceeds $5 million, that a contractor
employ apprentices to perform at least   { - 10 - }  { +  12 + }
percent of the work hours that workers in apprenticeable
occupations perform on the public works project; and
  (B) Provide in the public works contract that, subject to
subsection (3) of this section, the public agency will pay the
contractor at a rate of $20 per hour for imputed costs the
contractor incurs in having apprentices perform the work.
  (b) A contractor or subcontractor shall pay an apprentice for
work on the public works project at the hourly rate to which the
apprentice is entitled under an apprenticeship agreement or that
the apprenticeship training program specifies.
  (c) This subsection does not apply to a public works project
that does not use state funds.
  (3) A public agency shall provide in the public works contract
that if the contractor meets or exceeds the requirement in
subsection (2)(a)(A) of this section, the public agency will pay
a contractor at the rate specified in subsection (2)(a)(B) of
this section for the total number of work hours that apprentices
perform on a public works project up to a maximum amount that is
equivalent to the imputed costs the contractor would incur in
having apprentices perform 15 percent of the work hours that
workers in apprenticeable occupations perform on the public works
project. A public agency may not pay a contractor any amount for
the contractor's imputed costs in having apprentices perform work
on the public works project if the contractor does not meet or
exceed the requirement in subsection (2)(a)(A) of this section.
  (4) A contractor shall report the extent of the contractor's
compliance with this section to the public agency on forms, with
contents the public agency specifies by rule, and at regular
intervals that the public agency specifies in the public works
contract. The forms and the contents that the public agency
specifies must include, at a minimum, a report in which the
contractor provides a detailed accounting of the total number of
work hours each month and the cumulative total number of work
hours since the public works contract term began in which:
  (a) Workers in apprenticeable occupations performed work on the
public works project; and
  (b) Apprentices performed work on the public works project.
The contractor must identify each apprentice that performed work
on the public works project by name and by the identification
number that the Bureau of Labor and Industries issues for the
apprentice.
  (5) Subject to subsection (6) of this section, a public agency
may pay a contractor for the contractor's imputed costs in
complying with the requirement in subsection (2)(a)(A) of this
section in regular installments or periodically during the term
of the public works contract if the contractor requests regular
installment payments or periodic payments.
  (6)(a) At least 30 days before making any final payment to a
contractor under a public works contract, a public agency shall
determine the extent of the contractor's compliance with the
requirement in subsection (2)(a)(A) of this section. The public
agency shall base the determination on the ratio between the
actual number of work hours that workers in apprenticeable
occupations performed on the public works project and the actual
number of work hours that apprentices performed on the public
works project, as shown in reports the public agency receives
under subsection (4) of this section.
  (b) If the public agency determines under paragraph (a) of this
subsection that the contractor has complied with the requirement
in subsection (2)(a)(A) of this section, the public agency, in
accordance with the limitations set forth in subsection (3) of
this section, shall make a final payment to the contractor that
includes the contractor's imputed costs of complying with the
requirement. If the public agency determines that the contractor
has not complied with the requirement, the public agency shall
deduct from the final payment due the contractor under the terms
of the public works contract either an amount that is equivalent
to the contractor's imputed costs of complying with the
requirement over the entire term of the public works contract or
an amount that is equivalent to the entire amount the public
agency previously paid the contractor for the contractor's
imputed costs, as appropriate. The contractor forfeits and may
not collect any amount the public agency deducts under this
paragraph.
  (c) If the public agency pays the contractor for the
contractor's imputed costs of complying with the requirement in
subsection (2)(a)(A) of this section in regular installments or
at periodic intervals, the public agency shall make the
determination required under paragraph (a) of this subsection
before each scheduled payment of the imputed costs. If the public
agency determines that the contractor complied with the
requirement, the public agency shall make the scheduled payment
in accordance with the limitations set forth in subsection (3) of
this section. If the public agency determines that the contractor
failed to comply with the requirement during the interval that
precedes a scheduled payment, the public agency may withhold the
scheduled payment.

  (d) If a public agency previously paid a contractor an amount
that exceeds the amount due the contractor under paragraph (b) or
(c) of this subsection, the public agency shall notify the
contractor immediately and require the contractor to repay the
excess amount within 30 days after receiving the notice.
  SECTION 4. Section 2 of this 2013 Act, as amended by section 3
of this 2013 Act, is amended to read:
   { +  Sec. 3. + } (1) As used in this section:
  (a) 'Apprentice' has the meaning given that term in ORS
660.010.
  (b) 'Apprenticeable occupation' has the meaning given that term
in ORS 660.010.
  (c) 'Apprenticeship agreement' has the meaning given that term
in ORS 660.010.
  (d) 'Apprenticeship training program' means the total system of
apprenticeship that a particular local joint committee, as
defined in ORS 660.010, operates, including the local joint
committee's registered standards and all other terms and
conditions for qualifying, recruiting, selecting, employing and
training apprentices in an apprenticeable occupation.
  (2)(a) A public agency shall:
  (A) Require as a material term in each public works contract,
the contract price of which exceeds   { - $5 million - }  { +
$2.5 million + }, that a contractor employ apprentices to perform
at least   { - 12 - }  { +  15 + } percent of the work hours that
workers in apprenticeable occupations perform on the public works
project; and
  (B) Provide in the public works contract that, subject to
subsection (3) of this section, the public agency will pay the
contractor at a rate of $20 per hour for imputed costs the
contractor incurs in having apprentices perform the work.
  (b) A contractor or subcontractor shall pay an apprentice for
work on the public works project at the hourly rate to which the
apprentice is entitled under an apprenticeship agreement or that
the apprenticeship training program specifies.
  (c) This subsection does not apply to a public works project
that does not use state funds.
  (3) A public agency shall provide in the public works contract
that if the contractor meets or exceeds the requirement in
subsection (2)(a)(A) of this section, the public agency will pay
a contractor at the rate specified in subsection (2)(a)(B) of
this section for the total number of work hours that apprentices
perform on a public works project up to a maximum amount that is
equivalent to the imputed costs the contractor would incur in
having apprentices perform   { - 15 - }  { +  20 + } percent of
the work hours that workers in apprenticeable occupations perform
on the public works project. A public agency may not pay a
contractor any amount for the contractor's imputed costs in
having apprentices perform work on the public works project if
the contractor does not meet or exceed the requirement in
subsection (2)(a)(A) of this section.
  (4) A contractor shall report the extent of the contractor's
compliance with this section to the public agency on forms and
with contents the public agency specifies by rule and at regular
intervals that the public agency specifies in the public works
contract. The forms and the contents that the public agency
specifies must include, at a minimum, a report in which the
contractor provides a detailed accounting of the total number of
work hours each month and the cumulative total number of work
hours since the public works contract term began in which:
  (a) Workers in apprenticeable occupations performed work on the
public works project; and
  (b) Apprentices performed work on the public works project.
The contractor must identify each apprentice that performed work
on the public works project by name and by the identification

number that the Bureau of Labor and Industries issues for the
apprentice.
  (5) Subject to subsection (6) of this section, a public agency
may pay a contractor for the contractor's imputed costs in
complying with the requirement in subsection (2)(a)(A) of this
section in regular installments or periodically during the term
of the public works contract if the contractor requests regular
installment payments or periodic payments.
  (6)(a) At least 30 days before making any final payment to a
contractor under a public works contract, a public agency shall
determine the extent of the contractor's compliance with the
requirement in subsection (2)(a)(A) of this section. The public
agency shall base the determination on the ratio between the
actual number of work hours that workers in apprenticeable
occupations performed on the public works project and the actual
number of work hours that apprentices performed on the public
works project, as shown in reports the public agency receives
under subsection (4) of this section.
  (b) If the public agency determines under paragraph (a) of this
subsection that the contractor has complied with the requirement
in subsection (2)(a)(A) of this section, the public agency, in
accordance with the limitations set forth in subsection (3) of
this section, shall make a final payment to the contractor that
includes the contractor's imputed costs of complying with the
requirement. If the public agency determines that the contractor
has not complied with the requirement, the public agency shall
deduct from the final payment due the contractor under the terms
of the public works contract either an amount that is equivalent
to the contractor's imputed costs of complying with the
requirement over the entire term of the public works contract or
an amount that is equivalent to the entire amount the public
agency previously paid the contractor for the contractor's
imputed costs, as appropriate. The contractor forfeits and may
not collect any amount the public agency deducts under this
paragraph.
  (c) If the public agency pays the contractor for the
contractor's imputed costs of complying with the requirement in
subsection (2)(a)(A) of this section in regular installments or
at periodic intervals, the public agency shall make the
determination required under paragraph (a) of this subsection
before each scheduled payment of the imputed costs. If the public
agency determines that the contractor complied with the
requirement, the public agency shall make the scheduled payment
in accordance with the limitations set forth in subsection (3) of
this section. If the public agency determines that the contractor
failed to comply with the requirement during the interval that
precedes a scheduled payment, the public agency may withhold the
scheduled payment.
  (d) If a public agency previously paid a contractor an amount
that exceeds the amount due the contractor under paragraph (b) or
(c) of this subsection, the public agency shall notify the
contractor immediately and require the contractor to repay the
excess amount within 30 days after receiving the notice.
  SECTION 5. ORS 351.086, as amended by section 48, chapter 104,
Oregon Laws 2012, is amended to read:
  351.086. (1) Except as otherwise provided in this chapter and
ORS chapter 352, the provisions of ORS chapters 182, 240, 270,
273, 276, 278, 279A, 279B, 279C, 282, 283, 291 and 292 and ORS
180.060, 180.160, 180.210, 180.220, 180.225 and 180.230 do not
apply to the Oregon University System.
  (2) Notwithstanding subsection (1) of this section, the
provisions of ORS 182.100, 182.109, 240.167, 276.073 to 276.090,
279A.065 (2), 279B.055 (3), 279C.380 (1)(a) and (3), 279C.600 to
279C.625, 279C.800, 279C.810, 279C.825, 279C.830, 279C.835,
279C.840, 279C.845, 279C.850, 279C.855, 279C.860, 279C.865,
279C.870, 283.085 to 283.092, 291.200, 291.201 to 291.222,
291.223, 291.224 (2) and (6), 291.226, 291.272 to 291.278,
291.322 to 291.334, 291.405, 291.407, 291.445, 292.043 and
292.044 { +  and section 2 of this 2013 Act + } apply to the
Oregon University System.
  (3) Notwithstanding subsection (1) of this section, ORS 273.413
to 273.456 apply to any structure, equipment or asset
  { - owned by - }  { +  that + } the Oregon University
System { +  owns and + } that is encumbered by a certificate of
participation.
  (4) Notwithstanding subsection (6) of this section:
  (a) The provisions of ORS chapters 35, 190, 192, 244 and 297
and ORS 30.260 to 30.460, 184.480, 184.483, 184.486, 184.488,
200.005 to 200.025, 200.045 to 200.090, 200.100 to 200.120,
200.160 to 200.200, 236.605 to 236.640, 243.650 to 243.782,
243.800, 243.820, 243.830, 243.850, 243.910 to 243.945, 307.090
and 307.112 apply to the Oregon University System under the same
terms as   { - they - }  { +  the provisions + } apply to
 { - other - }  public bodies other than the State of Oregon.
  (b) The provisions of ORS chapter 286A and ORS 293.115,
293.117, 293.130, 293.169, 293.171, 293.205 to 293.225, 293.250,
293.265 to 293.280, 293.285, 293.295, 293.321, 293.353, 293.375,
293.406, 293.465 to 293.485, 293.490, 293.495, 293.525, 293.701
to 293.820, 293.875, 293.880 and 293.990 { +  and section 7 of
this 2013 Act + } apply to the Oregon University System under the
same terms as
  { - they - }  { +  the provisions + } apply to state agencies
with moneys   { - held by - }  the State Treasurer { +
holds + }, to the Oregon University System Fund established in
ORS 351.506 and to any other moneys deposited with or held by the
State Treasurer for the Oregon University System.
  (5) Notwithstanding subsections (1) and (6) of this section,
the Oregon University System and   { - its - }  { +  the + }
agents and employees { +  of the Oregon University System + }
remain subject to all statutes and administrative rules of this
state that create rights, benefits or protections in favor of
military veterans, service members and families of service
members to the same extent as an agency of this state would be
subject to such statutes and administrative rules.
  (6)(a) Except as provided by paragraph (b) of this subsection,
the Oregon University System, as a distinct governmental entity,
is not subject to any provision of law enacted after January 1,
2011, with respect to any governmental entity, that is unique to
governmental entities, unless the provision specifically provides
that   { - it - }  { +  the provision + } applies to the Oregon
University System.
  (b) To the same extent as state agencies that borrow through
the State Treasurer or that have moneys held in the State
Treasury, the Oregon University System is subject to any
provision of law enacted after January 1, 2011, that relates to
or affects the borrowings of the Oregon University System through
the State Treasurer or the deposit, payment or investment of
moneys held in the Oregon University System Fund or any other
moneys held for the Oregon University System in the State
Treasury.
  (7) In carrying out the duties, functions and powers imposed by
law upon the Oregon University System, the State Board of Higher
Education or the Chancellor of the Oregon University System may
contract with any public agency   { - for the performance of
such - }  { +  to perform + } duties, functions and powers
 { - as - }  { +  that + } the board or chancellor considers
appropriate.
  SECTION 6.  { + Section 7 of this 2013 Act is added to and made
a part of ORS 660.002 to 660.210. + }
  SECTION 7.  { + (1) Except as provided in subsection (2) of
this section, a public agency may not enter into a contract for
public works, as defined in ORS 279C.800, that uses state funds
and for which the contract price exceeds $5 million unless the
public agency has verified that every employer under the
contract, including the contractor and any subcontractor, is a
training agent that is approved by a local joint committee under
ORS 660.137.
  (2) A public agency may enter into a contract described in
subsection (1) of this section even if an employer is not an
approved training agent if the employer is not an approved
training agent because a local joint committee or a program for
the apprenticeable occupations the employer uses does not exist
in this state.
  (3) If a local joint committee for an apprenticeable occupation
that an employer uses does not exist in the county in which the
employer is located, the State Director of Apprenticeship and
Training may extend the jurisdiction of a local joint committee
in an adjoining county to the county in which the employer is
located. The director's action is subject to the State
Apprenticeship and Training Council's ratification. + }
  SECTION 8. Section 7 of this 2013 Act is amended to read:
   { +  Sec. 7.  + }(1) Except as provided in subsection (2) of
this section, a public agency may not enter into a contract for
public works, as defined in ORS 279C.800, that uses state funds
and for which the contract price exceeds   { - $5 million - }
 { +  $2.5 million + } unless the public agency has verified that
every employer under the contract, including the contractor and
any subcontractor, is a training agent that is approved by a
local joint committee under ORS 660.137.
  (2) A public agency may enter into a contract described in
subsection (1) of this section even if an employer is not an
approved training agent if the employer is not an approved
training agent because a local joint committee or a program for
the apprenticeable occupations the employer uses does not exist
in this state.
  (3) If a local joint committee for an apprenticeable occupation
that an employer uses does not exist in the county in which the
employer is located, the State Director of Apprenticeship and
Training may extend the jurisdiction of a local joint committee
in an adjoining county to the county in which the employer is
located. The director's action is subject to the State
Apprenticeship and Training Council's ratification.
  SECTION 9.  { + Sections 2 and 7 of this 2013 Act and the
amendments to ORS 351.086 by section 5 of this 2013 Act apply to
contracts for public works that a public agency first advertises
or otherwise solicits or, if the public agency does not advertise
or solicit the contract for public works, to contracts for public
works that the public agency enters into on or after the
operative date specified in section 10 (1)(a) of this 2013
Act. + }
  SECTION 10.  { + (1)(a) Sections 2 and 7 of this 2013 Act and
the amendments to ORS 351.086 by section 5 of this 2013 Act
become operative January 1, 2014.
  (b) Section 2 of this 2013 Act, as amended by section 3 of this
2013 Act, becomes operative January 1, 2016.
  (c) Section 2 of this 2013 Act, as amended by section 4 of this
2013 Act, and section 7 of this 2013 Act, as amended by section 8
of this 2013 Act, become operative January 1, 2018.
  (2) The Attorney General, the Director of the Oregon Department
of Administrative Services, the Director of Transportation or a
public agency that adopts rules under ORS 279A.065 may take any
action before the operative date specified in subsection (1)(a)
of this section that is necessary to enable the Attorney General,
the director or the public agency to exercise, on and after the
operative date specified in subsection (1)(a) of this section,
all of the duties, functions and powers conferred on the Attorney
General, the director or the public agency by sections 2 and 7 of

this 2013 Act and the amendments to ORS 351.086 by section 5 of
this 2013 Act. + }
  SECTION 11.  { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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