H-952                _______________________________________________

                                                    HOUSE BILL NO. 497

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Sayan, C. Smith and Wang

Read first time 1/30/87 and referred to Committee on Commerce & Labor.

AN ACT Relating to the definition of locality for the purposes of computing the prevailing wage for public work projects; and amending RCW 39.12.010.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 3, chapter 63, Laws of 1945 as last amended by section 1, chapter 15, Laws of 1985 and RCW 39.12.010 are each amended to read as follows:

          (1) The "prevailing rate of wage", for the intents and purposes of this chapter, shall be the rate of hourly wage, usual benefits, and overtime paid in the locality, as hereinafter defined, to the majority of workmen, laborers, or mechanics, in the same trade or occupation.  In the event that there is not a majority in the same trade or occupation paid at the same rate, then the average rate of hourly wage and overtime paid to such laborers, workmen or mechanics in the same trade or occupation shall be the prevailing rate.  If the wage paid by any contractor or subcontractor to laborers, workmen or mechanics on any public work is based on some period of time other than an hour, the hourly wage for the purposes of this chapter shall be mathematically determined by the number of hours worked in such period of time.

          (2) The "locality" for the purposes of this chapter shall be the city or town in which the physical work is performed, or if it is not possible to find workers, laborers, or mechanics in the same trade or occupation, then the "locality" shall be the largest city in the county wherein the physical work is being performed.

          (3) The "usual benefits" for the purposes of this chapter shall include the amount of:

          (a) The rate of contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person pursuant to a fund, plan, or program; and

          (b) The rate of costs to the contractor or subcontractor which may be reasonably anticipated in providing benefits to workmen, laborers, and mechanics pursuant to an enforcible commitment to carry out a financially responsible plan or program which was communicated in writing to the workmen, laborers, and mechanics affected, for medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, for unemployment benefits, life insurance, disability and sickness insurance, or accident insurance, for vacation and holiday pay, for defraying costs of apprenticeship or other similar programs, or for other bona fide fringe benefits, but only where the contractor or subcontractor is not required by other federal, state, or local law to provide any of such benefits.

          (4) An "interested party" for the purposes of this chapter shall include a contractor, subcontractor, an employee of a contractor or subcontractor, an organization whose members' wages, benefits, and conditions of employment are affected by this chapter, and the director of labor and industries or the director's designee.

NEW SECTION. Sec. 2.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.