Bill Text: OR HB3497 | 2011 | Regular Session | Introduced

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Bill Title: Relating to prevailing rates of wage; declaring an emergency.

Sponsorship: Partisan Bill (Republican 3)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3497 Detail]

Download: Oregon-2011-HB3497-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3472

                         House Bill 3497

Sponsored by Representative CONGER; Representative PARRISH,
  Senator TELFER

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Provides that state laws related to prevailing rates of wage
are not operative on and after January 1, 2012, and until January
1, 2016. Provides that other provisions that incorporate, rely
upon, implement or depend upon state laws are not operative to
extent of incorporation, reliance, implementation or dependence.
  Requires Commissioner of Bureau of Labor and Industries to
determine prevailing rate of wage by means of survey. Requires
contracting agencies to pay fee to pay costs of survey and
determination.
  Requires agency that conducts procurement for public works
project to compare contract price that would result from paying
prevailing rate of wage with contract price that would result
from not paying prevailing wage and to report results to
Legislative Assembly. Requires agency to segregate from
appropriation for project amount equivalent to 25 percent of
difference, for transfer to Oregon Rainy Day Fund.
  Becomes operative January 1, 2012.
  Sunsets January 1, 2016.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to prevailing rates of wage; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 5 of this 2011 Act are added to
and made a part of ORS chapter 279C. + }
  SECTION 2.  { + As used in sections 2 to 5 of this 2011 Act:
  (1) 'Locality' means the following district in which a public
works, or the major portion thereof, is to be performed:
  (a) District 1, composed of Clatsop, Columbia and Tillamook
Counties;
  (b) District 2, composed of Clackamas, Multnomah and Washington
Counties;
  (c) District 3, composed of Marion, Polk and Yamhill Counties;
  (d) District 4, composed of Benton, Lincoln and Linn Counties;
  (e) District 5, composed of Lane County;
  (f) District 6, composed of Douglas County;
  (g) District 7, composed of Coos and Curry Counties;
  (h) District 8, composed of Jackson and Josephine Counties;
  (i) District 9, composed of Hood River, Sherman and Wasco
Counties;
  (j) District 10, composed of Crook, Deschutes and Jefferson
Counties;
  (k) District 11, composed of Klamath and Lake Counties;
  (L) District 12, composed of Gilliam, Grant, Morrow, Umatilla
and Wheeler Counties;
  (m) District 13, composed of Baker, Union and Wallowa Counties;
and
  (n) District 14, composed of Harney and Malheur Counties.
  (2)(a) 'Public works' includes, but is not limited to:
  (A) Roads, highways, buildings, structures and improvements of
all types, the construction, reconstruction, major renovation or
painting of which is carried on or contracted for by any public
agency to serve the public interest;
  (B) A project that uses funds of a private entity and $750,000
or more of funds of a public agency for constructing,
reconstructing, painting or performing a major renovation on a
privately owned road, highway, building, structure or improvement
of any type;
  (C) A project that uses funds of a private entity for
constructing a privately owned road, highway, building, structure
or improvement of any type in which a public agency will use or
occupy 25 percent or more of the square footage of the completed
project; or
  (D) A device, structure or mechanism, or a combination of
devices, structures or mechanisms, that:
  (i) Uses solar radiation as a source for generating heat,
cooling or electrical energy; and
  (ii) Is constructed or installed, with or without using funds
of a public agency, on land, premises, structures or buildings
that a public body, as defined in ORS 174.109, owns.
  (b) 'Public works' does not include:
  (A) The reconstruction or renovation of privately owned
property that a public agency leases; or
  (B) The renovation of publicly owned real property that is more
than 75 years old by a private nonprofit entity if:
  (i) The real property is leased to the private nonprofit entity
for more than 25 years;
  (ii) Funds of a public agency used in the renovation do not
exceed 15 percent of the total cost of the renovation; and
  (iii) Contracts for the renovation were advertised or, if not
advertised, were entered into before July 1, 2003, but the
renovation has not been completed on or before July 13, 2007. + }
  SECTION 3.  { + (1) On and after January 1, 2012, and until
January 1, 2016, ORS 279C.800 to 279C.870 are not operative.
  (2)(a) On and after January 1, 2012, and until January 1, 2016,
if a provision of law or an ordinance, rule or policy of a public
body, as defined in ORS 174.109, incorporates, relies upon,
implements or otherwise depends upon a provision of ORS 279C.800
to 279C.870, the provision of law, ordinance, rule or policy is
not operative to the extent of the incorporation, reliance,
implementation or dependence.
  (b) Except to the extent set forth in paragraph (a) of this
subsection, this section does not otherwise affect a provision of
law, ordinance, rule or policy described in paragraph (a) of this
subsection. + }
  SECTION 4.  { + (1) The Commissioner of the Bureau of Labor and
Industries once each year shall determine the prevailing rate of
wage for workers in each locality by means of an independent wage
survey. The commissioner shall make the results of the
determination available to contracting agencies for the purposes
set forth in section 5 of this 2011 Act.
  (2) If the data the commissioner derives from the survey
described in subsection (1) of this section appear to the
commissioner to be insufficient to determine the prevailing rate
of wage, the commissioner shall consider additional information
such as collective bargaining agreements, other independent wage
surveys and the prevailing rates of wage determined by
appropriate federal agencies or agencies of adjoining states. If
a majority of the workers in the same trade or occupation are not
paid at the same rate, the average rate of hourly wage, including
all fringe benefits, that is paid to workers in the locality in
the same trade or occupation is the prevailing rate of wage. If a
contractor or subcontractor pays workers on a public works
project a wage that is based on a period of time other than an
hour, the commissioner shall derive the hourly wage
mathematically from the number of hours worked in the period of
time on which the contractor bases the pay.
  (3) A person shall make reports and returns to the Bureau of
Labor and Industries that the commissioner requires to determine
the prevailing rate of wage using forms the bureau provides and
within the time the commissioner prescribes. The person or an
authorized representative of the person shall certify to the
accuracy of the reports and returns.
  (4) Notwithstanding ORS 192.410 to 192.505, reports and returns
or other information provided to the commissioner under this
section are confidential and not available for inspection by the
public.
  (5) The commissioner by order shall establish a fee that a
contracting agency that awards a contract for public works shall
pay to the bureau in an amount that the commissioner determines
is necessary, when aggregated with other fees that other
contracting agencies pay under this subsection, to pay the costs
of conducting the survey and making the determination described
in this section. + }
  SECTION 5.  { + (1) A contracting agency that conducts a
procurement for a public works project shall compare the contract
price for the procurement that would result from paying workers
on the public works project a prevailing rate of wage with the
contract price that would result from paying workers at the lower
of:
  (a) The rate of wage that the lowest bidder for the public
works project pays the bidder's workers in each trade or
occupation used for the public works project; or
  (b) A market rate of wage for workers in the same trades or
occupations used for the public works project.
  (2) The contracting agency each year shall compile and
aggregate the results of each comparison described in subsection
(1) of this section and each year shall report the results to the
Legislative Assembly on the date of the convening of the regular
session of the Legislative Assembly as specified in ORS 171.010.
  (3) The contracting agency shall segregate from amounts
appropriated to the contracting agency for the purpose of the
public works procurement an amount equivalent to 25 percent of
the difference that the contracting agency identified in the
comparison the contracting agency conducted under subsection (1)
of this section. The contracting agency shall transfer the amount
identified and segregated under this subsection to the Oregon
Rainy Day Fund established by ORS 293.144. + }
  SECTION 6.  { + Sections 2 to 5 of this 2011 Act apply to a
contract for public works that a contracting agency first
advertises or otherwise solicits on or after the operative date
set forth in section 7 of this 2011 Act or, if the contracting
agency does not advertise or solicit the contract for public
works, to a contract for public works that the contracting agency
enters into on or after the operative date set forth in section 7
of this 2011 Act. + }
  SECTION 7.  { + (1) Sections 1 to 5 of this 2011 Act become
operative on January 1, 2012.
  (2) The Director of the Oregon Department of Administrative
Services, the Attorney General, the Commissioner of the Bureau of
Labor and Industries and a contracting agency that adopts rules
under ORS 279A.065 may take any action before the operative date
specified in subsection (1) of this section that is necessary to
enable the director, the Attorney General, the commissioner or
the contracting agency to exercise, on and after the operative
date specified in subsection (1) of this section, all of the
duties, functions and powers conferred on the director, the
Attorney General, the commissioner and the contracting agency by
sections 1 to 5 of this 2011 Act. + }
  SECTION 8.  { + Sections 1 to 5 of this 2011 Act are repealed
on January 1, 2016. + }
  SECTION 9.  { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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