HCS HB 61 -- PREVAILING WAGE

SPONSOR:  Hunter (Ruestman)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Workforce Development and Workplace Safety by a vote of 7 to 5.

Currently, workers employed on a public works project, except for
maintenance workers, are to be paid a wage of no less than the
prevailing hourly rate paid for similar work in the locality in
which the work is to be performed.  This substitute exempts,
except in counties with a charter form of government, work done
on a school from the prevailing hourly wage rate requirement if
the school board approves the exemption.  If a school district
approves the exemption, the district is required to notify the
Division of Labor Standards within the Department of Labor and
Industrial Relations.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that according to information from
the Department of Elementary and Secondary Education school
district facility construction costs could be reduced by 15% to
40% by eliminating the current prevailing wage requirements.  A
reduction of 15% in the replacement costs for school buildings 30
years or older, which consists of 64% of Missouri school
buildings with an estimated cost of $4 billion, will result in a
$600 million savings.  The Prevailing Wage Law diminishes the
bidding pool on public projects because most local contractors
will not submit a bid.

Testifying for the bill were Representative Ruestman; Gary Reed,
Cartage R-9 School District; Doug Domer, Joplin School District;
Sammy Helm, McDonald County School Board; Associated Industries
of Missouri; Missouri Farm Bureau; Missouri School Boards'
Association; Associated Builders and Contractors, Heart of
America Chapter; and National Federation of Independent Business.

OPPONENTS:  Those who oppose the bill say that local contractors
often fail to report required local wage rates resulting in
artificially high prevailing wage rates.  Schools must be
constructed by skilled labors to protect Missouri's children from
potential hazards arising from substandard construction.

Testifying against the bill were Plumbers and Pipe Fitters Local
562; Missouri AFL-CIO; Carpenters' District Council of Kansas
City; Carpenters' District Council of Greater St. Louis; National
Electrical Contractors Association; Missouri Laborers'
Legislative Committee; and Missouri National Education
Association.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:17 am