to adopt the amendments for HB 4234, as substitute (H-1).
Representative Tate moved to adopt the amendments for HB 4234, as substitute (H-1). The motion prevailed by a vote of 28-0-0. FAVORABLE ROLL CALL: Yeas: Reps. Hernandez, Miller, Albert, Allor, Brann, VanSingel, Whiteford, Yaroch, Bollin, Glenn, Green, Huizenga, Lightner, Maddock, Slagh, VanWoerkom, Hoadley, Love, Pagan, Hammoud, Peterson, Sabo, Anthony, Brixie, Cherry, Hood, Kennedy, and Tate. Nays: None. Pass: None. Representative Cherry offered the following amendment for HB 4234, as substitute (H-1): 1. Amend page 90, following line 17, by inserting: “Sec. 817. (1) As used in this section: (a) “Construction mechanic” means a skilled or unskilled mechanic, laborer, worker, helper, assistant, or apprentice working on a state project but does not include executive, administrative, professional, office, or custodial employees. (b) “Contracting agent” means any member of central procurement staff within MDTMB who is authorized to enter into a contract for a state project. (c) “Locality” means the county, city, village, township, or school district in which the physical work on a state project is to be performed. (d) “State project” means new construction, alteration, repair, installation, painting, decorating, completion, demolition, conditioning, reconditioning, or improvement of public buildings, schools, works, bridges, highways, or roads authorized by a contracting agent. (2) Every contract executed between a contracting agent and a successful bidder as a contractor and entered into pursuant to advertisement and invitation to bid for a state project which requires or involves the employment of construction mechanics, other than those subject to the jurisdiction of the state civil service commission, and which is sponsored or financed in whole or in part by the state shall contain an express term that the rates of wages and fringe benefits to be paid to each class of mechanics by the bidder and all of the bidder’s subcontractors, shall not be less than the wage and fringe benefit rates prevailing in the locality in which the work is to be performed. Contracts on state projects which contain provisions requiring the payment of prevailing wages, as determined by the United States secretary of labor pursuant to the federal Davis-Bacon act (United States code, title 40, section 276a et seq), or which contain minimum wage schedules which are the same as prevailing wages in the locality as determined by collective bargaining agreements or understandings between bona fide organizations of construction mechanics and their employers are exempt from the provisions of this section. (3) A contracting agent, before advertising for bids on a state project, shall have MDTMB determine the prevailing rates of wages and fringe benefits for all classes of construction mechanics called for in the contract. A schedule of these rates shall be made a part of the specifications for the work to be performed and shall be printed on the bidding forms where the work is to be done by contract. If a contract is not awarded or construction is not undertaken within 90 days of the date of the commissioner's determination of prevailing rates of wages and fringe benefits, MDTMB shall make a redetermination before the contract is awarded. (4) MDTMB shall establish prevailing wages and fringe benefits at the same rate that prevails on projects of a similar nature in the locality under collective agreements or understandings between bona fide organizations of construction mechanics and their employers. To meet the requirements of this section, collective agreements or understandings between bona fide organizations of construction mechanics and their employers shall not be controlled in any way by either an employee or employer organization. If the prevailing rates of wages and fringe benefits cannot reasonably and fairly be applied in any locality because no such agreements or understandings exist, the commissioner shall determine the rates and fringe benefits for the same or most similar employment in the nearest and most similar neighboring locality in which such agreements or understandings do exist. MDTMB may hold public hearings in the locality in which the work is to be performed to determine the prevailing wage and fringe benefit rates. All prevailing wage and fringe benefit rates determined under this section shall be filed in the office of the commissioner of labor and made available to the public. (5) Every contractor and subcontractor shall maintain a posting on the construction site, in a conspicuous place, a copy of all prevailing wage and fringe benefit rates prescribed in a contract and shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each construction mechanic employed in connection with said contract. This record shall be available for reasonable inspection by the contracting agent or the commissioner. (6) The contracting agent, by written notice to the contractor and the sureties of the contractor known to the contracting agent, may terminate the contractor's right to proceed with that part of the contract, for which less than the prevailing rates of wages and fringe benefits have been or will be paid, and may proceed to complete the contract by separate agreement with another contractor or otherwise, and the original contractor and the contractor’s sureties shall be liable to the contracting agent for any excess costs occasioned thereby. (7) MDTMB may assess a fee not to exceed $500.00 on any person, firm, or corporation, or combination thereof, including the officers of any contracting agent, violating the provisions of this section. Fees collected under this section shall be deposited to the general fund.”. Representative Cherry explained the amendments.