2003-03-06                     Senate Journal                      Page 0397
SB 111                                                                                            
SENATE BILL NO. 111 BY THE SENATE 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 and Commerce and                                  
Finance Committees.                                                                                 
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Labor and Workforce                                               
 Development                                                                                        
                                                                                                    
Governor's transmittal letter dated March 5:                                                        
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
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                               

2003-03-06                     Senate Journal                      Page 0398
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.                             
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