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2021 SPECIAL SESSION I

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21104037D
SENATE BILL NO. 1305 FLOOR AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by Senator McPike) (Patron Prior to Substitute--Senator McPike) Senate Amendments in [ ] – February 2, 2021 A BILL to amend the Code of Virginia by adding a section numbered 2.2-4303.02, relating to the Virginia Public Procurement Act; construction contracts; subcontractor workforce requirements.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 2.2-4303.02 as follows:

§ 2.2-4303.02. Construction contracts; subcontractor workforce requirements.

A. As used in this section, "covered institution" means the same as that term is defined in § 2.2-4321.

B. All public bodies [ in a locality with a population in excess of 25,000 ] and covered institutions shall include in every construction contract of more than $500,000 the following provisions, which a contractor shall agree to during the performance of such contract:

1. The contractor shall only utilize subcontractors that certify in writing to the contractor that they will outsource no more than 10 percent of the cost of the work subcontracted for, excluding the provision of materials.

2. The contractor may authorize a subcontractor to outsource more than 10 percent of the subcontracted work, excluding the provision of materials, so long as the subcontractor submits to the contractor in writing a request to exceed the outsource limitation.

3. The contractor's decision to approve or deny the subcontractor's request shall be based on the written request by the subcontractor that demonstrates that (i) more than 10 percent of the work subcontracted for (a) is of a specialized nature [ and , (b) ] cannot be performed by the subcontractor's own workforce [ or (b) , or (c) ] is necessary to meet procurement goals to subcontract to small, women-owned, or minority-owned businesses that are certified in accordance with § 2.2-1606 and (ii) the subcontractor is in compliance with all applicable federal and state labor laws.

4. A decision by the contractor to allow more than 10 percent of a subcontractor's work to be outsourced shall be documented in writing by the contractor to the public body or covered institution project manager responsible for the execution of the work and prior to the subcontractor's commencing the work.

5. Upon receipt of the contractor's written submission, the public body or covered institution may exercise the appropriate contract terms and conditions to enforce the outsource requirements as provided for in this section.