Florida Senate - 2021 SB 1600 By Senator Cruz 18-01040-21 20211600__ 1 A bill to be entitled 2 An act relating to public construction contracts; 3 creating s. 255.104, F.S.; defining terms; requiring a 4 contractor who responds to a solicitation for a 5 vertical construction project, as part of the bid, to 6 certify certain information regarding the usage of 7 apprentice or on-the-job training labor for the 8 project; requiring the contractor to submit the 9 certification before the awarding body enters into the 10 contract; specifying the minimum percentage of 11 apprentice labor required on the vertical construction 12 project; requiring the contractor to submit a written 13 notification of its inability to meet the labor 14 requirement to the awarding body for its determination 15 of whether a good faith effort existed; requiring 16 applicable contracts to include a provision regarding 17 compliance with the act; requiring the Department of 18 Management Services to develop a form that the 19 contractor must submit to document compliance with the 20 requirements; requiring the contractor to submit the 21 form to the awarding body on a monthly basis; 22 providing penalties for noncompliance; requiring the 23 department to adopt a rule to determine the amount of 24 the penalty for noncompliance; specifying authorized 25 uses for any collected penalties; providing the 26 awarding body with remedies for noncompliance by the 27 contractor; requiring awarding bodies to submit 28 reports to the department detailing contracts entered 29 into under the act; providing applicability; providing 30 an effective date. 31 32 Be It Enacted by the Legislature of the State of Florida: 33 34 Section 1. Section 255.104, Florida Statutes, is created to 35 read: 36 255.104 Use of apprentices in specified public construction 37 contracts.— 38 (1) As used in this section, the term: 39 (a) “Apprentice” means any person who is enrolled in and 40 participating in an apprenticeship program or on-the-job 41 training program, as those terms are defined in s. 446.021(6) 42 and (7), respectively, registered with the Department of 43 Education or the United States Department of Labor. 44 (b) “Awarding body” means any state agency, department, 45 county, or municipality or any political subdivision that awards 46 and enters into a contract with a contractor for a vertical 47 construction project. 48 (c) “Good faith effort” means that the contractor, without 49 an intent to defraud or seek an unfair advantage, took all 50 necessary steps to secure and maximize the required percentage 51 for apprentice labor on a vertical construction project, to the 52 satisfaction of the awarding body. 53 (d) “Labor hours” means the total hours worked on the site 54 of a vertical construction project by workers who are employed 55 by contractors or subcontractors on the vertical construction 56 project, not including any hours worked by forepersons, 57 superintendents, or owners. 58 (e) “Vertical construction project” means a contract of $1 59 million or more which is funded by the awarding body and 60 involves the building, altering, repairing, improving, or 61 demolishing of any public structure or building or making other 62 public improvements of any kind which are predominately above 63 ground to any real property owned by or under control of the 64 awarding body. 65 (2) When responding to a solicitation for a vertical 66 construction project, a contractor who bids on the project must 67 certify one of the following: 68 (a) The contractor or its subcontractors participate in an 69 apprenticeship program that is registered with the Department of 70 Education or the United States Department of Labor. 71 (b) The contractor commits that at the time the contractor 72 executes a construction contract, it or its subcontractors will 73 participate in an apprenticeship program that is approved by the 74 Department of Education or the United States Department of Labor 75 or an on-the-job training program. 76 (c) The contractor has submitted documentation that 77 confirms, to the satisfaction of the awarding body, that there 78 are no registered apprenticeship or on-the-job training programs 79 for any type of work to be performed on the construction 80 project. 81 (3) The contractor must submit documentation verifying 82 compliance with subsection (2) to the awarding body before the 83 awarding body may enter into a contract for a vertical 84 construction project with the contractor. 85 (4) For the duration of the contract for the vertical 86 construction project, and as the project may be extended through 87 the issuance of change orders, at least 12 percent of the labor 88 hours on the vertical construction project, including all work 89 performed pursuant to change orders, must be performed by 90 apprentices employed by the contractor or subcontractors. 91 (5)(a) If the contractor is unable to achieve or maintain 92 the percentage prescribed in subsection (4), the contractor must 93 notify the awarding body in writing and must provide evidence of 94 good faith efforts to achieve or maintain the required 95 percentage for consideration by the awarding body. Following 96 such notification and evaluation of any submitted documentation, 97 the awarding body must determine whether the contractor has made 98 a good faith effort. 99 (b) The evidence of a good faith effort may include 100 documentation of the contractor’s communication with the 101 Department of Education’s Division of Career and Adult 102 Education’s Apprenticeship section; documentation of its 103 communication with state-approved training programs, labor 104 organizations, and technical schools and training schools; 105 documentation of its use of job fairs and other outreach 106 efforts; the frequency and duration of any employment 107 advertisements for apprentices; the extent to which the size of 108 the contractor’s workforce affects its hiring opportunities for 109 apprentices; or any other evidence demonstrating to the 110 satisfaction of the awarding body that the contractor made a 111 good faith attempt to secure apprentice labor. 112 (6) The contract for the vertical construction project must 113 include a provision requiring the contractor and its 114 subcontractors to comply with the requirements of this section, 115 unless any of the exceptions under subsection (10) apply. 116 (7)(a) The Department of Management Services must develop a 117 standardized form for the contractor to use to report all of the 118 following information: 119 1. The name, hourly rate, and trade classification of each 120 apprentice. 121 2. The cumulative number of hours worked on the project by 122 each apprentice. 123 3. The number of labor hours of all workers on the 124 construction project, including subcontractors. 125 (b) On a monthly basis, the contractor must prepare, 126 certify, and submit to the awarding body, using the form 127 provided, the information required under paragraph (a). 128 (8)(a) Contracts for all projects to which these 129 requirements apply must provide that if a contractor fails to 130 fully comply with the percentage requirement prescribed in 131 subsection (4) and the percentage required has not been reduced 132 by the awarding body in accordance with paragraph (10)(d), the 133 contractor will be assessed a penalty for each hour that the 134 percentage requirement is not achieved. 135 1. The penalty amount per hour must be assessed based on 136 the extent to which the contractor or subcontractor met the 137 percentage requirements prescribed in subsection (4). The 138 Department of Management Services shall adopt by rule the fee 139 schedule for the hourly assessment. 140 2. The assessments imposed must be deducted from the 141 contractor’s monthly pay application and be used to support 142 construction or building trade apprentice training programs 143 registered with the Department of Education or the United States 144 Department of Labor which are located within the area of the 145 vertical construction project. 146 (b) Failure of a contractor to comply with the requirements 147 of this section may subject the contractor to all remedies 148 available under state law, including, but not limited to, 149 debarment or suspension of the contractor from consideration for 150 the award of future contracts and termination of the current 151 contract. 152 (9)(a) By January 1, 2022, July 1, 2022, and thereafter by 153 July 1 of each year, each awarding body shall prepare a report 154 to be submitted to the Department of Management Services which 155 includes all of the following information for each contract that 156 is subject to this section: 157 1. The name of the contractor. 158 2. The name or description of the construction project. 159 3. The total dollar value of the construction project. 160 4. The number of apprentices hired for the construction 161 project. 162 5. The number of apprentice hours worked on the 163 construction project. 164 6. The total labor hours expended on the construction 165 project. 166 (b) The report must also identify any contracts in which 167 the percentage requirement prescribed in subsection (4) was not 168 met and any reasons for such failure and must include any 169 recommendations regarding the program which the awarding body 170 wishes to provide. 171 (10) This section does not apply if: 172 (a) It is prohibited by or in conflict with federal or 173 state law or the terms of a federal or state grant applicable to 174 the vertical construction project. 175 (b) The awarding body determines that emergency 176 circumstances exist and that applying the requirements of this 177 section to the vertical construction project is not in the best 178 interest of the awarding body. 179 (c) A subcontractor is a women-owned or minority-owned 180 business and the amount to be paid under the applicable 181 subcontract for labor costs does not exceed $1 million. 182 (d) The awarding body reduces the percentage of required 183 apprentice labor because: 184 1. The contractor demonstrated to the awarding body, after 185 making a good faith effort, that the contractor was unable to 186 find, or there does not exist, a sufficient number or type of 187 apprentices available to meet the percentage prescribed in 188 subsection (4). 189 2. The awarding body determined that a disproportionately 190 high ratio of material costs to labor hours exists for a 191 vertical construction project which makes attaining the 192 percentage prescribed in subsection (4) infeasible. 193 Section 2. This act shall take effect July 1, 2021.