HOUSE BILL REPORT

HB 1262

BYRepresentatives Vekich, Cole, Sayan and Leonard; by request of Director of Labor and Industries

Appropriating funds to the public works administration account.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (10)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, Prentice, Smith, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 1, 1989

BACKGROUND:

The state prevailing wage law is administered and enforced by the Department of Labor and Industries.  The department is authorized to collect fees for activities relating to approving statements of intent to pay prevailing wages, certifying affidavits of wages paid, and arbitrating prevailing wage disputes.  The fees must be set at rates which generate revenue that matches the amount appropriated to the program by the legislature.  All fees collected by the department are deposited in the state general fund.

SUMMARY:

BILL AS AMENDED:  The public works administration account is created in the state treasury.  All fees charged by the Department of Labor and Industries for approval of prevailing wage statements, certification of affidavits of wages paid, and arbitration of prevailing wage disputes must be deposited in the public works administration account.  Money from the account may be spent only after appropriation and only for carrying out administration and enforcement of the prevailing wage law.

The requirement is deleted that the department set fees at a level that generates revenue as near as practicable to the amount appropriated by the legislature.  If the bill passes prior to September 1, 1989, then the amount of the appropriation for the Department of Labor and Industries is reduced by $723,000.

AMENDED BILL COMPARED TO ORIGINAL:  The amendment changes the amount of the appropriation from $728,125 to $1,451,400 and provides that the biennial appropriation for the Department of Labor and Industries will be reduced by $723,000 if the bill passes before September 1, 1989.

Appropriation:    $1,451,400 from the public works administration account to the Department of Labor and Industries.

Fiscal Note:      Requested January 23, 1989.

House Committee ‑ Testified For:    Mark McDermott, Department of Labor and Industries.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The fees generated by prevailing wage activities will be placed in an account which then can be used to improve the Department of Labor and Industries' administration and enforcement of the prevailing wage law.

House Committee - Testimony Against:      None Presented.