SB 339 Creates the "Fairness in Public Construction Act"
Sponsor: Mayer
LR Number: 1248S.06T Fiscal Note: 1248-06
Committee: Small Business, Insurance & Industrial Relations
Last Action: 3/22/2007 - Signed by Governor Journal Page: S605
Title: SCS SB 339 Calendar Position:
Effective Date: August 28, 2007
House Handler: Fisher

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Current Bill Summary

SCS/SB 339 - This act prohibits the state, or any agency or instrumentality of the state from requiring, or prohibiting, bidders from entering into agreements with labor organizations when entering into contracts for the construction of public projects funded by more than fifty percent by the state. Discrimination against bidders for such contracts based upon a bidder's affiliation with a labor organization is also prohibited. The state or any agency or instrumentality of the state may not issue grants or enter into cooperative agreements for construction projects, a condition of which requires any of the above elements.

The act provides conditions upon which the state or a political subdivision may enter into a union-only project labor agreement. The intent to enter into a union-only project labor agreement shall be published in a document titled "Intent to Enter Into a Project Labor Agreement". A public hearing must be conducted on whether to require a union-only project labor agreement. The finding is appealable to the Labor and Industrial Relations Commission.

The act bars contractors and subcontractors from receiving subsidies, supplements, or rebates if the practice reduces the wage rates paid by the employer on a given occupational title below the prevailing wage rate. Violators are liable to the public body double the dollar amount per hour that the rebate reduced the wage rate below the prevailing wage If a subsidy, supplement, or rebate is legally provided the entity receiving the subsidy, supplement, or rebate shall report the date and amount of each. The disclosure report is a matter of public record.

The act repeals language requiring contractor's bonds to include provisions guaranteeing faithful performance of the prevailing wage clause provided by contract.

Currently, contractors in violation of the prevailing wage law are penalized $10 per each workman employed during the violation. This act raises that penalty to $100. The act provides a dispute process for prevailing wage violations and allows the employer to pay back wages for violations in order to avoid the monetary penalty for the violation.

This act is similar to SB 291 (2005) and SB 849 (2006).