SENATE BILL REPORT

SB 6346

BYSenators West, Anderson and Saling

Providing for contracting for the services of the industrial statistician.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 19, 1988; January 26, 1988

Majority Report:  That Substitute Senate Bill No. 6346 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Bill Lynch

                  January 27, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 26, 1988

BACKGROUND:

The Industrial Statistician is located within the Employment Standards-Apprenticeship-Crime Victims Division (ESAC) of the Department of Labor and Industries.

The Industrial Statistician is responsible for determining the prevailing wage rate to be paid on all public works projects.  The rate is determined by the hourly wage, overtime, and benefits paid to a majority of workers in the same trade or occupation in the largest city in the county where the work is performed.  If there is not a majority of workers in the same trade or occupation paid at the same rate, then the average pay rate to such workers is used as the prevailing rate.

Some proponents suggest that the services performed by the Industrial Statistician would be better performed if they were contracted to private entities.

SUMMARY:

The Office of the Industrial Statistician within the Department of Labor and Industries is abolished.  The Department is authorized to contract with entities for the purpose of collecting, sorting, and systematizing statistical information pertaining to labor within the state as may be needed by the Department or any state agency.  The statistical information must conform as much as possible to plans and reports of the U.S. Department of Labor.  The Department is directed to place emphasis on obtaining more than one contractor when contracting these services so as to obtain more thorough and verifiable data.

EFFECT OF PROPOSED SUBSTITUTE:

The provisions which would eliminate the Office of the Industrial Statistician and require the prevailing wage determinations to be contracted are deleted.

The Legislative Budget Committee is directed to study the methodology used in determining the prevailing wage on public works contracts and also the adequacy of enforcement of the prevailing wage.

The Legislative Budget Committee must submit a report containing its findings and recommendations to the Governor, the Senate Economic Development and Labor Committee, and the House Commerce and Labor Committee by October 1, 1988.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 14, 1988

Senate Committee - Testified: Joe Dear, Dept. of Labor and Industries; Judd Lees, Associated Builders and Contractors (ABC); Duke Schaub, Associated General Contractors; Bob Dilger, Washington State Building and Construction Trades Council; Kathleen Garrity, ABC; Gary Smith, Independent Business Association; Larry Kenney, Washington State Labor Council