HOUSE BILL REPORT

                 SSB 5246

             As Reported By House Committee On:

                      Commerce & Labor

Title:  An act relating to creating the public works administration account.

Brief Description:  Creating the public works administration account.

Sponsors:  Senate Committee on Labor & Commerce (originally sponsored by Senators Snyder, Winsley, Rinehart, Gaspard, Prentice, Moore, Hargrove, Roach, Loveland, Jesernig, Vognild, Sutherland, von Reichbauer, Bauer, Quigley and Erwin).

Brief History:

  Reported by House Committee on:

Commerce & Labor, March 19, 1993, DP.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.  Signed by 7 members:  Representatives G. Cole, Vice Chair; Lisk, Ranking Minority Member; Conway; Horn; King; Springer; and Veloria.

Staff:  Chris Cordes (786-7117).

Background:  The Department of Labor and Industries administers the state's wage laws, including the prevailing wage law.  The department is authorized to set fees for performing activities required under the prevailing wage law, such as approving statements of intent to pay prevailing wages.  The fees must be set at a level that generates revenue that "as near as practicable" is the amount of the appropriation made to carry out these activities.  The fees are deposited in the state general fund.

Summary of Bill:  The prevailing wage fees set by the Department of Labor and Industries are for administering the prevailing wage chapter, including the performance of adequate wage surveys, and for investigating violations, including incorrect statements of intent to pay prevailing wages and affidavits of wages paid, and wage claim violations.  The fees may not exceed $25 for approval of statements of intent to pay prevailing wages and affidavits of wages paid. 

The public works administration account is created.  All prevailing wage fees are deposited in the account.  Each quarter, 30 percent of the amount in the fund will be transferred to the state general fund.  Appropriations of money remaining in the account may be used only for administration of the prevailing wage chapter, including the performance of adequate wage surveys, and for investigation of alleged violations, including incorrect statements and affidavits, and wage claim violations. 

Fiscal Note:  Available.

Effective Date:  The bill contains an emergency clause and takes effect on July 1, 1993.

Testimony For:  Establishing a mechanism to enhance public works administration funding will assist the Department of Labor and Industries to process prevailing wage forms more quickly, to conduct regular wage surveys, and to increase enforcement activity.  With better compliance, workers will be treated more fairly and contractors will not be working under competitive disadvantages.

Testimony Against:  None.

Witnesses:  (In favor)  Bob Dilger, Washington Building and Construction Trades Council; and Otto Herman, Rebound.  (No position)  Duke Schaub, Associated General Contractors.