HB 301: "An Act relating to wages on public construction projects in areas covered by a declaration of economic disaster."
00HOUSE BILL NO. 301 01 "An Act relating to wages on public construction projects in areas covered by 02 a declaration of economic disaster." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 36.05.010 is amended to read: 05 Sec. 36.05.010. Wage rates on public construction. Except as provided in 06 (b) of this section, a [A] contractor or subcontractor who performs work on public 07 construction in the state, as defined by AS 36.95.010, shall pay not less than the 08 current prevailing rate of wages for work of a similar nature in the region in which the 09 work is done. The current prevailing rate of wages is that contained in the latest 10 determination of prevailing rate of wages issued by the Department of Labor at least 11 10 days before the final date for submission of bids for the contract. The rate shall 12 remain in effect for the life of the contract or for 24 calendar months, whichever is 13 shorter. Except as provided in (b) of this section, at [AT] the end of the initial 24- 14 month period, if new wage determinations have been issued by the department, the latest wage
01 determination shall become effective for the next 24-month period or until the contract is 02 completed, whichever occurs first. This process shall be repeated until the contract is 03 completed. 04 * Sec. 2. AS 36.05.010 is amended by adding new subsections to read: 05 (b) When the governor issues a declaration of disaster emergency under 06 AS 26.23.020 and states in the proclamation that the disaster emergency has substantial 07 economic consequences, a public construction contract located in whole or in part in 08 the area covered by the declaration that is entered into within two years after the 09 issuance of the proclamation is not subject to the requirement for payment of 10 prevailing wage rates imposed by (a) of this section. If the parties to a public 11 construction contract that was entered into before the declaration of disaster emergency 12 renegotiate the contract within two years after the proclamation, the renegotiation is 13 not subject to the wage requirements of (a) of this section. If the prevailing rate of 14 wages on a public construction project located in an area covered by a declaration of 15 disaster emergency is subject to change under (a) of this section because it has been 16 in effect for 24 calendar months, the parties to the contract may negotiate wage rates 17 that differ from the prevailing rate of wages that otherwise would apply to the contract. 18 (c) Within five working days after the governor issues a proclamation 19 declaring a disaster emergency, the Department of Labor shall issue a list of the 20 communities located in whole or in part in the area covered by the proclamation. At 21 the request of a party to a public construction contract or of a person interested in a 22 public construction project, the Department of Labor shall promptly issue a 23 determination about whether the public construction is exempt under (b) of this section 24 from the requirement to pay prevailing wage rates. 25 * Sec. 3. AS 36.05.040 is amended to read: 26 Sec. 36.05.040. Filing schedule of employees, wages paid, and other 27 information. All contractors or subcontractors who perform work on a public 28 construction contract for the state or for a political subdivision of the state shall, before 29 the Friday of each week, file with the Department of Labor a sworn affidavit for the 30 previous week [,] setting out in detail the number of persons employed, wages paid, 31 job classification of each employee, hours worked each day and week, whether the
01 public construction contract is exempt under AS 36.05.010(b) from the 02 requirement to pay the prevailing rate of wages, and other information that the 03 Department of Labor requires. 04 * Sec. 4. AS 36.05.070(a) is amended to read: 05 (a) The advertised specifications for a public construction contract exceeding 06 $2,000 to which the state or a political subdivision of the state is a party that requires 07 or involves the employment of mechanics, laborers, or field surveyors must [SHALL] 08 contain a provision stating the minimum wages to be paid various classes of laborers, 09 mechanics, or field surveyors , [AND] that the rate of wages shall be adjusted to the 10 wage rate under AS 36.05.010 unless the contract is exempt from the requirement 11 under AS 36.05.010(b), and that the requirement for the payment of prevailing 12 wages is subject to AS 36.05.010(b) . 13 * Sec. 5. AS 36.05.070(c) is amended to read: 14 (c) A contract for public works in the state or a political subdivision shall 15 contain provisions that 16 (1) the contractor or subcontractors of the contractor shall pay all 17 employees unconditionally and not less than once a week; 18 (2) except as provided in AS 36.05.010(b), wages may not be less 19 than those stated in the advertised specifications [,] regardless of the contractual 20 relationship between the contractor or subcontractors and laborers, mechanics, or field 21 surveyors; 22 (3) the scale of wages to be paid shall be posted by the contractor in 23 a prominent and easily accessible place at the site of the work; 24 (4) the state or a political subdivision shall withhold so much of the 25 accrued payments as is necessary to pay to laborers, mechanics, or field surveyors 26 employed by the contractor or subcontractors the difference between 27 (A) the rates of wages required by the contract to be paid 28 laborers, mechanics, or field surveyors on the work, and 29 (B) the rates of wages in fact received by laborers, mechanics, 30 or field surveyors.