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CSHB 155(FIN): "An Act relating to the submission of payroll information by contractors and subcontractors performing work on a public construction contract; requiring a notice of work 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(FIN) 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 of 03 work by employers on public construction contracts; providing for the withholding of 04 final payment for public construction contracts; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 36.05.040 is amended to read: 07 Sec. 36.05.040. Filing schedule of employees, wages paid, and other 08 information. All contractors or subcontractors who perform work on a public 09 construction contract for the state or for a political subdivision of the state shall, before 10 the Friday of every second [EACH] week, file with the Department of Labor and 11 Workforce Development a sworn affidavit for the previous reporting period 12 [WEEK], setting out in detail the number of persons employed, wages paid, job 13 classification of each employee, hours worked each day and week, and other 14 information on a form provided by [THAT] the Department of Labor and Workforce

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

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

01 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 ONLINE PAYROLL REPORTING. Not later than July 1, 2004, the Department of 04 Labor and Workforce Development shall provide for filing of payroll reports as required in 05 AS 36.05.040, amended by sec. 1 of this Act, by secure online electronic filing. 06 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 TRANSITIONAL PROVISIONS: REGULATIONS. Notwithstanding sec. 8 of this 09 Act, the Department of Labor and Workforce Development may proceed to adopt regulations 10 necessary to implement the changes made by this Act. The regulations take effect under 11 AS 44.62 (Administrative Procedure Act), but not before the effective date of the relevant 12 statutory change. 13 * Sec. 7. Sections 4 and 6 of this Act take effect immediately under AS 01.10.070(c). 14 * Sec. 8. Except as provided in sec. 7 of this Act, this Act takes effect July 1, 2003.