2003-03-05                     House Journal                      Page 0423
HB 155                                                                                            
HOUSE BILL NO. 155 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the submission of payroll information by                                   
     contractors and subcontractors performing work on a public                                     
     construction contract; and providing for an effective date."                                   
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Labor & Workforce Development                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to the submission of certified payroll                                 
records by contractors and subcontractors performing work on public                                 
construction projects.                                                                              
                                                                                                    
Currently, under AS 36.05.040, contractors and subcontractors                                       
performing work on public construction contracts are required to file                               
certified payroll records each Friday with the Department of Labor and                              
Workforce Development.  The Department of Labor and Workforce                                       
Development recognizes that many contracting agencies require                                       
contractors and subcontractors to file payroll records with them as                                 
well.  This bill would reduce the double filing requirement on                                      
contractors and their subcontractors to file certified payroll records.                             
                                                                                                    

2003-03-05                     House Journal                      Page 0424
In lieu of filing certified payroll records with the Department of Labor                            
and Workforce Development, each contractor and subcontractor would                                  
be required to file a Notice of Intent to Pay Prevailing Wages with the                             
Department of Labor and Workforce Development along with a $100                                     
fee.  The Notice of Intent to Pay Prevailing Wages would provide                                    
identifying information about the project, the name of the contractor or                            
subcontractor, and a statement that the contractor or subcontractor will                            
comply with the Little Davis Bacon Act.  Furthermore, when the                                      
contractor or subcontractor completes its work on the public                                        
construction project, an Affidavit of Wages Paid stating that the                                   
contractor or subcontractor has completed work on the project and has                               
complied with the requirements of the Little Davis Bacon Act will be                                
required.                                                                                           
                                                                                                    
Eliminating this weekly filing requirement with the Department of                                   
Labor and Workforce Development and requiring the new fees would                                    
be an administrative savings to the department as well as generating an                             
annual revenue of $1.15 million.                                                                    
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"