HF 1476

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 04/17/2012 10:31am

A bill for an act
relating to labor and employment; adding and modifying prevailing wage
provisions; appropriating money; amending Minnesota Statutes 2010, section
177.42, subdivisions 4, 6, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 177; repealing Minnesota Rules, part 5200.1020,
subparts 1, 2, 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 177.42, subdivision 4, is amended to read:

Subd. 4.

Prevailing hours of labor.

"Prevailing hours of labor" means the hours
of labor per day and per week worked within the area by a larger number of workers
of the same class than are employed within the area for any other number of hours per
day and per week. The prevailing hours of labor may not be more than deleted text begin eight deleted text end new text begin ten new text end hours
per day or more than 40 hours per week.

Sec. 2.

Minnesota Statutes 2010, section 177.42, subdivision 6, is amended to read:

Subd. 6.

Prevailing wage rate.

"Prevailing wage rate" means the hourly basic rate
of pay plus the contribution paid to or for the largest number of workers engaged in the
same class of labor within the area for medical or hospital care, pensions on retirement
or death, compensation for injuries or illness resulting from occupational activity, or
insurance to provide any of the foregoing, for unemployment benefits, life insurance,
disability and sickness insurance, or accident insurance, for vacation and holiday pay, for
defraying the costs of apprenticeship or other similar programs, or for other bona fide
fringe benefits, but only where the contractor or subcontractor is not required by other
federal, state, or local law to provide any of those benefits, the amount of:

(1) the rate of contribution irrevocably made by a contractor or subcontractor to a
trustee or to a third person under a fund, plan, or program; and

(2) the rate of costs to the contractor or subcontractor that may be reasonably
anticipated in providing benefits to laborers and mechanics pursuant to an enforceable
commitment to carry out a financially responsible plan or program which was
communicated in writing to the laborers and mechanics affected.

"Prevailing wage rate" includes, for the purposes of section 177.44, rental rates for
truck hire paid to those who own and operate the truck.

The prevailing wage rate may not be less than a reasonable and living wage.

new text begin This subdivision applies only to work done in a metropolitan county under section
473.121, subdivision 4.
new text end

Sec. 3.

Minnesota Statutes 2010, section 177.42, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Prevailing wage rate; nonmetropolitan county area. new text end

new text begin (a) "Prevailing
wage rate" means the mean hourly compensation paid to workers engaged in the same
class of labor within the area. The mean hourly compensation includes the hourly basic
rate plus the contribution for medical or hospital care, pensions on retirement or death,
compensation for injuries or illness resulting from occupational activity, or insurance to
provide any of the foregoing, for unemployment benefits, life insurance, disability and
sickness insurance, or accident insurance, for vacation and holiday pay, for defraying the
costs of apprenticeship or other similar programs, or for other bona fide fringe benefits,
but only where the contractor or subcontractor is not required by other federal, state, or
local law to provide any of those benefits, the amount of:
new text end

new text begin (1) the rate of contribution irrevocably made by a contractor or subcontractor to a
trustee or to a third person under a fund, plan, or program; and
new text end

new text begin (2) the rate of costs to the contractor or subcontractor that may be reasonably
anticipated in providing benefits to laborers and mechanics pursuant to an enforceable
commitment to carry out a financially responsible plan or program which was
communicated in writing to the laborers and mechanics affected.
new text end

new text begin (b) Prevailing wage rate includes, for the purposes of section 177.44, rental rates for
truck hire paid to those who own and operate the truck.
new text end

new text begin (c) The prevailing wage rate may not be less than a reasonable and living wage.
new text end

new text begin (d) This subdivision applies only to work done in a county other than a metropolitan
county under section 473.121, subdivision 4.
new text end

Sec. 4.

new text begin [177.421] PREVAILING WAGE DETERMINATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Highway and heavy construction. new text end

new text begin The department shall, at least
once every two calendar years, determine and certify prevailing wage rates applicable
to state projects that are similar in nature to public and private highway and heavy
construction projects where the estimated total cost of completing the project is $25,000
or more.
new text end

new text begin Subd. 2. new text end

new text begin Commercial-type construction. new text end

new text begin The department shall, at least once every
two calendar years, determine and certify prevailing wage rates applicable to state projects
that are similar in nature to public and private commercial projects where the estimated
total cost of completing the project is $2,500 or more.
new text end

new text begin Subd. 3. new text end

new text begin Survey data. new text end

new text begin Each wage survey shall be based upon work performed
in the 24 months preceding the date the survey is commenced and the resulting wage
determinations certified following the close of the survey.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $112,000 is appropriated from the general fund in fiscal year 2013 to the
commissioner of labor and industry for purposes of this act. This is a onetime
appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 5200.1020, subparts 1, 2, and 5, new text end new text begin are repealed.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Unless otherwise specified, this act is effective January 1, 2013.
new text end