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CSHB 155(L&C): "An Act relating to the submission of payroll information by contractors and subcontractors performing work on a public construction contract; requiring a notice and affidavit regarding the payment of prevailing wages by employers on public construction contracts; providing for the withholding of final payment for public construction contracts; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 155(L&C) 01 "An Act relating to the submission of payroll information by contractors and 02 subcontractors performing work on a public construction contract; requiring a notice 03 and affidavit regarding the payment of prevailing wages by employers on public 04 construction contracts; providing for the withholding of final payment for public 05 construction contracts; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 36.05.040 is amended to read: 08 Sec. 36.05.040. Filing schedule of employees, wages paid, and other 09 information. All contractors or subcontractors who perform work on a public 10 construction contract for the state or for a political subdivision of the state shall, before 11 the Friday of every second [EACH] week, file with the Department of Labor and 12 Workforce Development a sworn affidavit for the previous reporting period 13 [WEEK], setting out in detail the number of persons employed, wages paid, job

01 classification of each employee, hours worked each day and week, and other 02 information on a form provided by [THAT] the Department of Labor and Workforce 03 Development [REQUIRES]. 04 * Sec. 2. AS 36.05 is amended by adding a new section to read: 05 Sec. 36.05.045. Affidavit of compliance; withholding of payment. (a) 06 Before commencing work on a public construction contract, the person entering into 07 the contract with a contracting agency shall designate a primary contractor for 08 purposes of this section. Before work commences, the primary contractor shall file a 09 notice of intent to pay prevailing wages with and pay the appropriate filing fees to the 10 Department of Labor and Workforce Development. The notice of intent must list all 11 work to be performed under the public construction contract by each contractor who 12 will perform any portion of work on the contract and the contract price being paid to 13 each contractor. The primary contractor shall pay all filing fees for each contractor 14 performing work on the contract, including a filing fee based on the contract price 15 being paid for work performed by the primary contractor's employees. The filing fee 16 payable shall be the sum of all fees calculated for each contractor. The filing fee shall 17 be one percent of each contractor's contract price. The total filing fee payable by the 18 primary contractor under this subsection may not exceed $5,000. There is no fee for a 19 contract under which the total amount payable by the contracting agency is less than 20 $25,000. In this subsection, "contractor" means an employer who is using employees 21 to perform work on the public construction contract under the contract or a 22 subcontract. 23 (b) Upon completion of all work on the public construction contract, the 24 primary contractor shall file an affidavit of wages paid with the Department of Labor 25 and Workforce Development. The primary contractor and all other contractors 26 working on the public construction contract shall sign the affidavit on a form provided 27 by the Department of Labor and Workforce Development. 28 (c) A contracting agency may not release final payment on a public 29 construction contract until the agency has received verification from the Department 30 of Labor and Workforce Development that 31 (1) the primary contractor has complied with (a) and (b) of this section

01 and that all other contractors working on the public construction contract have signed 02 the affidavit; 03 (2) the Department of Labor and Workforce Development is not 04 conducting an investigation under AS 36.05.030; and 05 (3) the Department of Labor and Workforce Development has not 06 issued a notice of a violation of this chapter to the primary contractor or any other 07 contractors working on the public construction contract. 08 (d) The notice and filing fee required under (a) of this section may be filed 09 after work has begun if 10 (1) the public construction contract is for work undertaken in 11 immediate response to a disaster emergency declared under AS 26.23; and 12 (2) the notice and fees are filed not later than 14 days after the work 13 has begun. 14 (e) A false statement made on a notice or affidavit required by this section is 15 punishable under AS 11.56.210. 16 * Sec. 3. AS 36.05 is amended by adding a new section to read: 17 Sec. 36.05.900. Definition. In this chapter, "contracting agency" means the 18 state or a political subdivision of the state that has entered into a public construction 19 contract with a contractor. 20 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 CURRENT PUBLIC CONSTRUCTION CONTRACTS. Notwithstanding 23 AS 36.05.045, added by sec. 2 of this Act, a contractor or subcontractor that began work on a 24 public construction contract before July 1, 2003, but has not completed the work before 25 July 1, 2003, shall file a notice of intent to pay prevailing wages on a form provided by the 26 Department of Labor and Workforce Development. The contractor or subcontractor shall file 27 the notice not later than 30 days after the Department of Labor and Workforce Development 28 provides the contractor or subcontractor with a copy of the notice form. The contractor or 29 subcontractor is not required to pay a fee for filing. 30 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 ONLINE PAYROLL REPORTING. Not later than July 1, 2004, the Department of 02 Labor and Workforce Development shall provide for filing of payroll reports as required in 03 AS 36.05.040, amended by sec. 1 of this Act, by secure online electronic filing. 04 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 TRANSITIONAL PROVISIONS: REGULATIONS. Notwithstanding sec. 8 of this 07 Act, the Department of Labor and Workforce Development may proceed to adopt regulations 08 necessary to implement the changes made by this Act. The regulations take effect under 09 AS 44.62 (Administrative Procedure Act), but not before the effective date of the relevant 10 statutory change. 11 * Sec. 7. Sections 4 and 6 of this Act take effect immediately under AS 01.10.070(c). 12 * Sec. 8. Except as provided in sec. 7 of this Act, this Act takes effect July 1, 2003.