HOUSE BILL ANALYSIS

                     HB 1958

Brief Description:  Eliminating transfers of funds from the public works administration account.

Sponsors:  Representatives Conway and Clements               

Hearing:  February 25, 1999

                 Brief Summary of Bill

$Discontinues the quarterly transfer to the general fund of 30% of the account which funds the administration of the prevailing wage laws.

BACKGROUND:

The state prevailing wage law requires prevailing wages to be paid to employees on public works construction projects.  All public works contracts must contain a provision requiring the payment of prevailing wages.

The Department of Labor and Industries administers the prevailing wage laws including acting as final arbitrator in prevailing wage disputes.  To pay for this administration, the department charges fees of contracting agencies conducting public works projects.  Similarly, the department charges fees of parties for arbitrating disputes.

The attorney general enforces the prevailing wage laws, including collection of delinquent fees through legal action.

All fees collected by the department are deposited in the public works administration account.  Each quarter, 30% of the funds in the account are transferred to the state general fund.  In fiscal years 1998 and 1999, the amount transferred was approximately $990,000. Appropriations from the account, other than the money transferred, may be used only for administration of the prevailing wage laws.

SUMMARY OF BILL:

The quarterly transfer of 30% of the public works administration account to the general fund is discontinued.

RULES AUTHORITY:  The bill does not contain provisions addressing the rule making powers of an agency.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of a session in which bill is passed.