Sec. 502. Utilization of qualified apprentices by construction contractors
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/bill/117/hr/4153/ih/section-502·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
All contractors and subcontractors engaged in the performance of construction, alteration, or repair work on a covered project shall, subject to subsection (b), ensure that not less than 15 percent of the total labor hours of such work be performed by qualified apprentices. The requirement under subsection
(a)shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the Department of Labor or the applicable State apprenticeship agency. Each contractor and subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work on a covered project shall employ 1 or more qualified apprentices to perform such work. If the Secretary determines, upon receipt of a complaint or on the Secretary’s own initiative, that a covered project is not being carried out in accordance with the requirements of this section, the Secretary shall withhold from payments otherwise due the contractor as a penalty, or require the payment by the contractor of a penalty, in the amount of not less than $5,000, but not more than $10,000, for each hour of the apprenticeship utilization requirement that is not achieved. A determination by the Secretary under paragraph
(1)shall be grounds for contract termination. A contractor or subcontractor that violates the requirements of this section shall be prohibited from performing work on any covered project for 5 years. Before commencing work on a contract for a covered project, the contractor shall submit to the recipient of assistance and the Secretary an estimate of— the total labor hours to be performed under the contract; and the number of qualified apprentices proposed to be employed under the contract, categorized by trade or craft. While the covered project is ongoing, the contractor shall include with each payment application to the recipient of assistance and Secretary a report containing the following information: The names of all qualified apprentices and their apprentice registration or identification number. The number of qualified apprentices and labor hours worked by them, categorized by trade or craft. The number of journey level workers and labor hours worked by them, categorized by trade or craft. When a contractor is not subject to progress billing, the contractor shall submit the periodic reports required by paragraph
(2)within a comparable time frame. Within 60 days after concluding work on the contract, the contractor shall submit to the recipient of assistance and the Secretary a verified statement of the total journeyworker and apprentice hours performed on the project. The contractor and subcontractors shall maintain all personnel records relating to the reporting requirements of this subsection for a period of at least 3 years after final completion of the work. The information described in this subsection shall be public and shall not be exempt from disclosure under section 552(b) of title 5, United States Code. If the Secretary determines that any of the information required by this subsection contains false or misleading information that was provided knowingly or with reckless disregard for the truth, or omits information that was omitted knowingly or with reckless disregard of the truth, the contractor or subcontractor for which the information was submitted shall be prohibited from performing work on a covered project for a period of 5 years, and shall be further subject to penalties and sanctions, including contract termination. Any misrepresentation or omission included in the reporting required by this subsection shall constitute a false record or statement material to a false or fraudulent claim for purposes of subchapter III of chapter 37 of title 31, United States Code. Upon request by a contractor or recipient of assistance, the Secretary may adjust the apprenticeship utilization requirement otherwise applicable to the contract for a specific covered project, when the contractor has provided documentary evidence of— a demonstrated lack of availability of qualified apprentices in the geographic area in which the contract will be performed; and a good-faith effort on the part of the contractor and its subcontractors to comply with the apprenticeship utilization requirement. A waiver granted under this subsection and the rationale of the Secretary concerned for granting the waiver shall be public information and shall not be exempt from disclosure under section 552(b) of title 5, United States Code. The recipient of assistance shall cause to be inserted in a contract for a covered project stipulations to effectuate the requirements of this section. The stipulations shall provide that the contractor shall be jointly and severally liable for any violation of the requirements of this section that is committed by one of its subcontractors. In this section: The term contractor means a general contractor or other lead or prime contractor on a covered project. The term covered project means construction, alteration, or repair work assisted in whole or in part under sections 111, 131, or 202 of this Act. The term labor hours means the total number of hours devoted to the performance of construction activities (as defined in Sector 23 of the North American Industry Classification System) by employees of the contractor and its subcontractors. The term excludes hours worked by foremen, superintendents, owners, and persons employed in a bona fide executive, administrative, or professional capacity as defined in part 541 of title 29, Code of Federal Regulations. The term qualified apprentice means an employee of a contractor or subcontractor participating in an apprenticeship program as that term is defined in section 3131(e)(3)(B) of the Internal Revenue Code of 1986. The term Secretary means the Secretary of Energy. The term subcontractor means any person or company, at any tier, that performs some or all of the obligations of the contractor on a covered project. Nothing in this section shall preempt applicable State or local laws or policies that provide for additional skilled and trained workforce requirements on construction projects.