CSHB 260(L&C): "An Act relating to penalties for violating a requirement for a certificate of fitness; relating to joint and several liability for unpaid construction wages; and relating to the jurisdiction of the office of administrative hearings over certificate of fitness administrative fine hearings."
00 CS FOR HOUSE BILL NO. 260(L&C) 01 "An Act relating to penalties for violating a requirement for a certificate of fitness; 02 relating to joint and several liability for unpaid construction wages; and relating to the 03 jurisdiction of the office of administrative hearings over certificate of fitness 04 administrative fine hearings." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 08.18.121 is amended by adding a new subsection to read: 07 (i) If a registered contractor is found to have knowingly violated a provision of 08 AS 18.62, the contractor's registration shall be suspended for a period of 90 days for a 09 second violation. A contractor's registration shall be permanently revoked upon a third 10 finding that the contractor knowingly violated a provision of AS 18.62. 11 * Sec. 2. AS 18.62.080 is repealed and reenacted to read: 12 Sec. 18.62.080. Administrative fine and procedure. (a) Except as provided 13 in (b) of this section, the department may impose an administrative fine of not more 14 than $1,000 on an employer who violates a provision of this chapter or a regulation
01 adopted under this chapter. 02 (b) In addition to the penalties that may apply under AS 08.18.121, the 03 department shall impose a fine of $1,000 on a registered contractor for the first and 04 second violations by the contractor of a provision of this chapter or a regulation 05 adopted under this chapter. 06 (c) The department shall issue a written notice of an administrative fine 07 imposed under (a) or (b) of this section, together with a statement of the reason for the 08 fine, a copy of the applicable procedures, and notice of an opportunity to request a 09 hearing, including the contact information for making the request, within 30 days after 10 the date of the notice of the fine. The department shall advise in the written notice that 11 additional violations may result in the suspension or permanent revocation of a 12 contractor's registration in accordance with AS 08.18.121. 13 (d) If a person who is issued a notice of an administrative fine under (c) of this 14 section fails to request a hearing within 30 days after the date of the notice, the right to 15 a hearing is waived, and the administrative fine is not subject to judicial review. A 16 hearing request must be in writing and must clearly state the issues to be raised at the 17 hearing. The department shall schedule a hearing before a hearing officer not earlier 18 than 10 days after receiving the request for a hearing. 19 (e) A decision of a hearing officer under this section is a final administrative 20 decision subject to review by a superior court under AS 44.62 (Administrative 21 Procedure Act). 22 * Sec. 3. AS 23.10 is amended by adding new sections to read: 23 Article 9. Payment of Construction Wages. 24 Sec. 23.10.700. Employer's liability for compensation. (a) A project owner 25 that enters into a construction contract with a contractor shall be jointly and severally 26 liable with the contractor for unpaid wages owed to an employee of the contractor and 27 an employee of a subcontractor at any tier for work performed on a project within the 28 scope of the construction contract. The provisions in this subsection may not be 29 waived. 30 (b) This section does not apply to 31 (1) an employee covered by a bona fide collective bargaining
01 agreement that provides a grievance procedure resulting in a final and binding 02 decision and that provides a mechanism for recovering unpaid wages and benefits on 03 behalf of the employee covered by the agreement; 04 (2) a construction contract that relates to real property used by the 05 project owner as the project owner's principal residence or to real property consisting 06 of five or fewer residential units on a single tract of land; or 07 (3) a project owner if the construction contract relates to real property 08 consisting of one commercial unit. 09 Sec. 23.10.710. Claims for unpaid construction wages. (a) An employee of a 10 contractor or subcontractor, or an authorized representative of the employee, may 11 bring suit against a project owner, contractor, or subcontractor in any court of 12 competent jurisdiction to recover unpaid wages. The employee retains all remedies to 13 which the employee might otherwise be entitled, including those remedies provided 14 under AS 08.18, AS 23.05, AS 34.35, or this chapter, for any balance claimed. 15 (b) In an action brought under this section, there is a rebuttable presumption 16 that a person performing work on a project within the scope of a construction contract 17 is an employee. A party claiming otherwise may rebut the presumption by establishing 18 that the person is an independent contractor under AS 23.30.230(a)(12). 19 (c) Nothing in this section impairs the right of a project owner to bring an 20 action against a contractor, or a project owner or contractor to bring an action against a 21 subcontractor, to seek recovery of actual and liquidated damages for the amounts paid 22 by the owner or contractor for unpaid wages. 23 (d) Before filing suit against a project owner or contractor under (a) of this 24 section, an employee or the authorized representative of the employee shall send 25 written notice of the alleged unpaid wages by certified mail to the owner and the 26 contractor. The notice must describe the nature of the allegation and state that the 27 project owner and the contractor have 21 calendar days from the certified delivery date 28 to remit wages owed. Notice provided under this subsection does not limit the liability 29 of the project owner or contractor or preclude a person from later amending a 30 complaint after an action is commenced to include additional parties to the action. 31 Sec. 23.10.720. Payroll records. (a) A subcontractor performing work on a
01 project within the scope of a construction contract entered into by a project owner and 02 contractor shall provide the following records to the project owner or contractor upon 03 the owner's or contractor's request: 04 (1) payroll reports that, at a minimum, include sufficient information 05 for the contractor to determine whether a subcontractor has paid in full all wages 06 earned by employees of the subcontractor who performed work within the scope of the 07 construction contract; 08 (2) the name, address, and telephone number of the subcontractor and 09 the name of any additional subcontractor employed by the subcontractor to perform 10 work on the project; 11 (3) the names of all workers who performed work on the project and 12 whether each worker is paid or classified as an employee or an independent contractor; 13 (4) the anticipated start date and scheduled duration of the work on the 14 project; 15 (5) an affidavit that attests to whether the subcontractor or any of the 16 subcontractor's current principals, including project owners and contractors, have, 17 within the preceding five years, participated in a civil, administrative, or criminal 18 proceeding involving the violation of a law providing for payment of wages or 19 imposing a criminal penalty for the violation and the outcome of the proceeding, 20 including damages, fees, or penalties paid to workers or a government agency, if any; 21 in this paragraph, "principal" means a person that commissions a construction project 22 and that is responsible for the project's scope, standards, and objectives. 23 (b) A subcontractor shall provide records described in (a) of this section to an 24 authorized representative of an employee only if 25 (1) the record contains information pertaining specifically to the 26 employee on whose behalf the authorized representative is acting; and 27 (2) the subcontractor would be lawfully required to disclose the record 28 under AS 23.10.430 to the employee if the employee was acting on the employee's 29 own behalf. 30 (c) A subcontractor's failure to comply with (a) of this section does not relieve 31 the project owner or contractor of liability under AS 23.10.700.
01 (d) Nothing in this section affects the duty of a project owner or contractor to 02 timely pay a subcontractor, except that a project owner or contractor may withhold 03 payment to a subcontractor in an amount equal to the amount of wages owed to 04 employees of the subcontractor that the owner or contractor has paid on behalf of the 05 subcontractor. 06 (e) A contractor or subcontractor may not disclose personally identifying 07 information about workers who perform work on a construction project except to the 08 extent necessary to comply with federal and state laws. 09 Sec. 23.10.740. Definitions. In AS 23.10.700 - 23.10.740, 10 (1) "construction contract" means an express or implied agreement for 11 the construction, reconstruction, alteration, maintenance, movement, or demolition of 12 a building, structure, or improvement or the excavation or other development of or 13 improvement to land; 14 (2) "contractor" means a person that enters into a construction contract 15 with a project owner or the person's successors, heirs, or assigns; 16 (3) "project owner" means a person with an ownership interest, 17 whether the interest or estate is in fee simple, as a vendee under a contract to purchase, 18 or as a lessee or another interest or estate less than fee simple, that enters into a 19 construction contract with a contractor; "project owner" does not include a public 20 agency employing a contractor or subcontractor for work under AS 22.05.025 or 21 AS 35 or a financial institution that acquires ownership of a property through 22 foreclosure or a deed in lieu of foreclosure and that does not undertake, contract for, or 23 direct construction work beyond activities necessary to preserve or secure the 24 property; 25 (4) "subcontractor" means a person that is a party to an express or 26 implied contract with a contractor, or with a contractor's subcontractor at any tier, to 27 perform any portion of work within the scope of the contractor's construction contract 28 with a project owner; 29 (5) "wages" has the meaning given in AS 23.90.900. 30 * Sec. 4. AS 44.64.030(a) is amended by adding a new paragraph to read: 31 (52) AS 18.62.080 (certificates of fitness).
01 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. This Act applies to work performed by employees of a contractor 04 or subcontractor under a contract entered into on or after the effective date of this Act.