Two prevailing wage bills opposed by the AGC died in the Legislature. One would have required public works contractors to file a certified payroll for off-site fabrication of specialized project components. The other would have required the payment of prevailing wages on certain private construction projects.

Under the certified payroll legislation (House Bill 2864), contractors would have been required to file certified payrolls with public agencies detailing information for work involved in the off-site fabrication of specialized project components.

“The certified payroll bill is cumbersome and expensive and exposes contractors to risks and costs,” AGC Director of Government Affairs Director Rick Slunaker told the House Committee on Commerce and Labor in January.

The bill was amended to require public works contracts to contain a provision requiring the general contractor to submit, instead of a certified payroll, a list identifying all off-site products supplied, the name and EIN of each subcontractor, and each product's anticipated cost.

“Even with the modest improvement of the amendment, the legislation remains an unnecessary burden on the contracting community,” said Slunaker. “These lists will be used by any ‘interested party’ to request certified payrolls for projects employing off-site fabrication, with special attention given to out-of-state fabricators.”

The certified payroll bill went a fair distance through the legislative process, virtually guaranteeing its re-submission in 2009. It was passed out of the House and was then approved by the Senate Committee on Labor, Commerce, and Research & Development before dying in the Senate Rules Committee.

The second prevailing wage measure (Senate Bill 6938 and companion House Bill 3337) required that prevailing wages be paid on projects benefiting from tax incentives, loans from public entities, sales of land or property for less than fair market value, and even for fair market value leases of public land or property by a state or local government agency.

“This is a big expansion of prevailing wage law,” Slunaker told the Senate Ways and Means Committee. “Economic development including agriculture-related construction, urban renewal, low-income housing and port work are just a few of the types of projects that would be covered by prevailing wages if this legislation passes. Some projects may no longer pencil-out.”

The legislation was not passed out of committee in either the State House or Senate. However, in addition to the Senate Ways and Means Committee hearing, the House Commerce and Labor Committee held a “work session” on the issue without holding a vote. As this is one of the top priorities for construction labor unions, it will crop up again in the 2009 legislative session.

For questions or comments regarding this issue, contact AGC’s Rick Slunaker at 360-352-5000 or rslunaker@agcwa.com.