Prevailing wage and apprenticeship requirements

(a) Prevailing wage requirements (1) In general The requirement described in this subsection with respect to any qualified facility that is the recipient of assistance provided to a covered manufacturer under the Fund, is that such covered manufacturer shall ensure that any laborers and mechanics employed by the covered manufacturer (or any contractor or subcontractor of the covered manufacturer) in the construction, alteration, or repair of such facility, shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. (2) Correction and penalty related to failure to satisfy wage requirements (A) In general In the case of any covered manufacturer which fails to satisfy the requirement under paragraph (1) with respect to a qualified facility during any period for which the assistance described in paragraph (1) was provided by such covered manufacturer to such qualified facility, such covered manufacturer shall be deemed to have satisfied such requirement under such paragraph with respect to such facility for such period if, with respect to any laborer or mechanic who was paid wages at a rate below the rate described in such paragraph for such period, such covered manufacturer— (i) makes payment to such laborer or mechanic in an amount equal to the sum of an amount equal to the difference between— (I) the amount of wages paid to such laborer or mechanic during such period; and (II) the amount of wages required to be paid to such laborer or mechanic pursuant to such paragraph during such period; plus (ii) makes payment to the Secretary of Commerce of a penalty in an amount equal to the product of— (I) $5,000; multiplied by (II) the total number of laborers and mechanics who were paid wages at a rate below the rate described in paragraph (1) for such period. (B) Intentional disregard If the Secretary of Commerce determines that any failure described in subparagraph (A) is due to intentional disregard of the requirements of paragraph (1), such subparagraph shall be applied— (i) in clause (i)(I), by substituting three times the sum for the sum; and (ii) in clause (i)(II)(aa), by substituting $10,000 for 5,000. (C) Limitation on period for payment Pursuant to rules issued by the Secretary of Commerce, in the case of a final determination by the Secretary with respect to any failure by the covered manufacturer to satisfy the requirement of paragraph (1), paragraph (2)(A) shall not apply unless the payments described in clause (i) and (ii) of such paragraph (2)(A) are made by the covered manufacturer on or before the date which is 180 days after the date of such determination. (b) Apprenticeship requirements The apprenticeship requirements described in this subsection with respect to the construction of any qualified facility are as follows: (1) Labor hours (A) Percentage of total labor hours Covered manufacturers shall ensure that, with respect to the construction of any qualified facility, not less than the applicable percentage of the total labor hours of the construction, alteration, or repair work (including such work performed by any contractor or subcontractor) with respect to such facility shall, subject to subparagraph (B), be performed by qualified apprentices. (B) Applicable percentage For purposes of subparagraph (A), the applicable percentage shall be— (i) in the case of a qualified facility the construction of which begins before January 1, 2027, 10 percent; (ii) in the case of a qualified facility the construction of which begins after December 31, 2026, and before January 1, 2028, 12.5 percent; and (iii) in the case of a qualified facility the construction of which begins after December 31, 2027, 15 percent. (2) Apprentice-to-journeyworker ratio The requirement under paragraph (1)(A) shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the Department of Labor or the applicable State apprenticeship agency. (3) Participation Each covered manufacturer, contractor, or subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work with respect to the construction of a qualified facility shall employ 1 or more qualified apprentices to perform such work. (4) Exception (A) In general A covered manufacturer shall not be treated as failing to satisfy the requirements of this subsection if such covered manufacturer— (i) satisfies the requirements described in subparagraph (B); or (ii) subject to subparagraph (C), in the case of any failure by the covered manufacturer to satisfy the requirement under paragraphs (1) and (3) with respect to the construction, alteration, or repair work on any qualified facility to which subclause (I) does not apply, makes payment to the Secretary of a penalty in an amount equal to the product of— (I) $50; multiplied by (II) the total labor hours for which the requirement described in such subparagraph was not satisfied with respect to the construction, alteration, or repair work on such qualified facility. (B) Good-faith effort For purposes of subparagraph (A), a covered manufacturer shall be deemed to have satisfied the requirements under this paragraph with respect to a qualified facility if such covered manufacturer has requested qualified apprentices from a registered apprenticeship program, and— (i) such request has been denied, provided that such denial is not the result of a refusal by the covered manufacturer (or any contractors or subcontractors engaged in the performance of construction, alteration, or repair work with respect to such qualified facility) to comply with the established standards and requirements of the registered apprenticeship program; or (ii) the registered apprenticeship program fails to respond to such request within 5 business days after the date on which such registered apprenticeship program received such request. (C) Intentional disregard If the Secretary of Commerce determines that any failure described in subparagraph (A)(ii) is due to intentional disregard of the requirements under paragraphs (1) and (3), subparagraph (A)(ii)(I) shall be applied by substituting $500 for $50. (c) Definitions In this section: (1) Fund The term Fund means the Fund established under section 2. (2) Labor hours The term labor hours — (A) means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual employed by the covered manufacturer or by any contractor or subcontractor; and (B) excludes any hours worked by— (i) foremen; (ii) superintendents; (iii) owners; or (iv) persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations). (3) Qualified apprentice The term qualified apprentice means an individual who is employed by the covered manufacturer or by any contractor or subcontractor and who is participating in a registered apprenticeship program. (4) Qualified facility The term qualified facility means a facility that is the recipient of assistance provided to a covered manufacturer under the Fund. (5) Registered apprenticeship program The term registered apprenticeship program means an apprenticeship registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) that meets the standards of subpart A of part 29 and part 30 of title 29, Code of Federal Regulations.