SB 324: Virginia Public Procurement Act; additional public works contract requirements. - Virginia

Enrolled → General Laws and Technology Substitute · 6 edits

MODERATE

The bill was converted from an Enrolled Act into a Senate Substitute Amendment, which significantly altered the scope, definitions, and requirements of the new public works section. The primary changes involve expanding the definition of covered projects, adding new definitions for 'apprentice' and 'labor hours,' and broadening the list of federal laws contractors must comply with. Additionally, the notice requirements for independent contractors were updated to include specific contact information for the Commissioner of Labor and Industry.

Scope change

The scope of the new requirements was expanded from 'construction contracts' to 'capital outlay projects,' and the list of federal compliance laws was broadened to include civil rights and disability discrimination acts.

DEFINITION

The term 'construction contract' was replaced with 'capital outlay project' to align with existing state definitions, and new definitions for 'apprentice' and 'labor hours' were added.

REQUIREMENT

The list of federal laws contractors must demonstrate compliance with was expanded to include the Occupational Safety and Health Act, Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Age Discrimination in Employment Act.

The notice required to be sent to independent contractors was updated to include the name, address, phone number, and email of the Commissioner of Labor and Industry for filing complaints.

A new exemption was added stating that the section's provisions do not apply to transportation-related construction projects.

The specific requirement for local public bodies to receive detailed notification about independent contractors (including trade and contact info) was removed in the substitute version.

ENFORCEMENT

The requirement for state public bodies to issue written authorization for using independent contractors on projects over $5 million was simplified to remove the specific liability and defense clauses found in the original text.

Introduced → Enrolled · 5 edits · Mar 31, 2026

MODERATE

The bill evolved from a new section focusing on apprenticeship quotas and broad compliance to an amended version that adds new definitions, raises financial thresholds for independent contractor rules, and removes specific apprenticeship mandates. This shift moves the focus from workforce development requirements to stricter financial oversight and liability protections for public bodies regarding independent contractors.

Scope change

The bill's scope expanded from a single new section to an amendment of existing sections (2.2-4343 and 23.1-1003) while adding the new section 2.2-4302.3. The applicability of the independent contractor rules was narrowed to contracts over $5 million, and the definition of the covered work was changed from 'capital outlay projects' to 'construction contracts'.

DEFINITION

The definition of covered projects was changed from 'capital outlay projects' to 'construction contracts' initiated after July 1, 2027.

REQUIREMENT

The requirement for apprentices to make up 15% of labor hours and the rule requiring one apprentice per four journeyworkers were removed entirely.

The list of violations triggering compliance checks was shortened, removing the Occupational Safety and Health Act and Age Discrimination in Employment Act, and adding a $25,000 monetary threshold for past violations.

New rules were added limiting independent contractors to contracts over $5 million, requiring public bodies to disclose findings before approving them, and shielding public bodies from liability for these determinations.

ENFORCEMENT

The notice required to independent contractors was updated to include instructions on how to file a complaint for misclassification, replacing the previous contact information for the Commissioner of Labor and Industry.

Finance and Appropriations Substitute → Appropriations Substitute · 4 edits

MODERATE

The bill was re-substituted by the House Appropriations Committee, shifting the primary amendment from the Senate Finance Committee. The most significant policy change is the addition of a new requirement for contractors to collect and report specific data on independent contractors (trade and contact info) to state agencies. Additionally, the effective date for the 'construction contract' definition was changed to apply only to contracts initiated after July 1, 2027, rather than all contracts.

Scope change

The bill's scope regarding the new reporting requirement was expanded to mandate data collection on independent contractors, while the scope of the new section's applicability was narrowed by adding a future effective date.

REQUIREMENT

Added a new subsection requiring contractors to collect and submit written notifications to the Department of Labor and Industry and the Department of Taxation containing the trade and contact information for all independent contractors hired on public works projects.

Removed the specific requirement for public bodies to obtain written authorization before paying more than one independent contractor for a single project.

TIMELINE

Modified the definition of 'construction contract' to apply only to contracts initiated after July 1, 2027, instead of applying to all contracts.

TECHNICAL

Changed the bill header from 'Senate Substitute' to 'House Substitute' and updated the proposing committee from Senate Finance to House Appropriations.

General Laws and Technology Substitute → Finance and Appropriations Substitute · 4 edits

MODERATE

The bill was transferred from the General Laws and Technology Committee to the Finance and Appropriations Committee, changing the committee responsible for the substitute. The substantive policy text regarding public works contract requirements remains identical, though the Finance version includes minor formatting artifacts and a reference to a related bill (SB 366) in the header.

Scope change

The bill's scope and applicability remain unchanged; the only difference is the legislative committee handling the amendment.

TECHNICAL

The committee proposing the substitute changed from General Laws and Technology to Finance and Appropriations, and the date was updated from January 21 to February 3, 2026.

The patron line was updated to include Senator Carroll Foy and a reference to SB 366.

The bill description was slightly expanded to mention a 'report' requirement, though the specific text of the report requirement is not visible in the provided snippet.

The Finance version includes a definition for 'Construction contract' (contracts valued over $5 million) which was not present in the General Laws version, but this appears to be part of the renumbered text rather than a new policy addition.

Virginia Public Procurement Act; additional public works contract requirements.

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