1.1                          A bill for an act
  1.2             relating to employment; modifying the definition of 
  1.3             prevailing wage rate; defining terms; requiring that 
  1.4             drivers of trucks used in construction projects 
  1.5             subject to prevailing wage requirements be paid 
  1.6             prevailing rental rates in addition to the prevailing 
  1.7             wage; amending Minnesota Statutes 1996, sections 
  1.8             177.42, subdivision 6, and by adding subdivisions; and 
  1.9             177.44, subdivisions 1, 3, and 4. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 177.42, 
  1.12  subdivision 6, is amended to read: 
  1.13     Subd. 6.  [PREVAILING WAGE RATE.] "Prevailing wage rate" 
  1.14  means the hourly basic rate of pay plus the contribution for 
  1.15  health and welfare benefits, vacation benefits, pension 
  1.16  benefits, and any other economic benefit paid to the largest 
  1.17  number of workers engaged in the same class of labor within the 
  1.18  area and includes, for the purposes of section 177.44, rental 
  1.19  rates for truck hire paid to those who own and operate the 
  1.20  truck.  The prevailing wage rate may not be less than a 
  1.21  reasonable and living wage based on the area's state determined 
  1.22  poverty level for a family of four, divided by the prevailing 
  1.23  hours of labor for the workers of that class as defined in 
  1.24  subdivision 4.  
  1.25     Sec. 2.  Minnesota Statutes 1996, section 177.42, is 
  1.26  amended by adding a subdivision to read: 
  1.27     Subd. 7.  [SUBSTANTIALLY IN PLACE.] "Substantially in place"
  2.1   means that the material has been deposited, by whatever means, 
  2.2   from the transporting vehicle on the project site where it will 
  2.3   be or is being spread, compacted, or similarly worked without 
  2.4   further hauling, as opposed to being stockpiled for temporary 
  2.5   storage when all or substantially all of it will be required to 
  2.6   be relocated by loading and hauling to another place for final 
  2.7   incorporation into the project. 
  2.8      Sec. 3.  Minnesota Statutes 1996, section 177.42, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 8.  [COMMERCIAL ESTABLISHMENT.] "Commercial 
  2.11  establishment" means a facility owned by a business which is 
  2.12  primarily a material supplier, rather than a contractor, which 
  2.13  has been in operation before bids were solicited for the project 
  2.14  for which materials are supplied and will continue to be in 
  2.15  operation after the project for which materials are being 
  2.16  supplied, and which provides materials on a regular basis to the 
  2.17  public for purposes other than the project for which materials 
  2.18  are being supplied.  The determination of whether a facility is 
  2.19  a commercial establishment is made on a location-by-location 
  2.20  basis, not on a businesswide basis.  A business within the state 
  2.21  of Minnesota may have locations which are commercial 
  2.22  establishments while simultaneously operating locations set up 
  2.23  for a specific project that are not commercial establishments. 
  2.24     Sec. 4.  Minnesota Statutes 1996, section 177.42, is 
  2.25  amended by adding a subdivision to read: 
  2.26     Subd. 9.  [WORK UNDER A CONTRACT OR WORK UNDER THE 
  2.27  CONTRACT.] "Work under a contract" or "work under the contract" 
  2.28  means all construction activities and supporting work including 
  2.29  the processing or manufacture of materials or products and the 
  2.30  delivery of the materials or products which are conducted 
  2.31  pursuant to a contract of a type specified in section 177.44, 
  2.32  subdivision 1, including all project proposals, plans, and 
  2.33  specifications, and all requirements for labor, equipment, and 
  2.34  materials found in the proposals, plans, and specifications.  
  2.35  Work under a contract or work under the contract does not have a 
  2.36  geographic limitation, but covers all functions, wherever 
  3.1   performed, and regardless of whether the work is performed by 
  3.2   the prime contractor, or a subcontractor, trucking broker, 
  3.3   independent contractor, or employee, or an agent of any of the 
  3.4   foregoing entities, and regardless of which entity or person 
  3.5   hires or contracts with another. 
  3.6      Sec. 5.  Minnesota Statutes 1996, section 177.44, 
  3.7   subdivision 1, is amended to read: 
  3.8      Subdivision 1.  [HOURS, WAGES PERMITTED.] A laborer or 
  3.9   mechanic employed by a contractor, subcontractor, agent, or 
  3.10  other person doing or contracting to do all or part of the work 
  3.11  under a contract based on bids as provided in Minnesota Statutes 
  3.12  1971, section 161.32, to which the state is a party, for the 
  3.13  construction or maintenance of a highway, may not be permitted 
  3.14  or required to work longer than the prevailing hours of labor 
  3.15  unless the laborer or mechanic is paid for all hours in excess 
  3.16  of the prevailing hours at a rate of at least 1-1/2 times the 
  3.17  hourly basic rate of pay of the laborer or mechanic.  The 
  3.18  laborer or mechanic must be paid at least the prevailing wage 
  3.19  rate in the same or most similar trade or occupation in the area.
  3.20  In addition to the prevailing wage rate, the owner of a truck 
  3.21  used to perform work under the contract shall be paid the 
  3.22  prevailing rental rate for the same or similar vehicles in the 
  3.23  area. 
  3.24     Sec. 6.  Minnesota Statutes 1996, section 177.44, 
  3.25  subdivision 3, is amended to read: 
  3.26     Subd. 3.  [INVESTIGATIONS BY DEPARTMENT OF LABOR AND 
  3.27  INDUSTRY.] The department of labor and industry shall conduct 
  3.28  investigations and hold public hearings necessary to define 
  3.29  classes of laborers and mechanics and to determine the hours of 
  3.30  labor and wage rates prevailing in all areas of the state for 
  3.31  all classes of labor and mechanics commonly employed in highway 
  3.32  construction work, so as to determine prevailing hours of labor, 
  3.33  prevailing wage rates, and hourly basic rates of pay.  
  3.34     The department shall determine the nature of the equipment 
  3.35  furnished by truck drivers who own and operate trucks on 
  3.36  contract work to determine minimum rates for the equipment, and 
  4.1   shall establish by rule minimum rates to be computed into the 
  4.2   prevailing wage rate conduct investigations and hold public 
  4.3   hearings necessary to define the nature of equipment furnished 
  4.4   by truck owners on contract work and to determine the rental 
  4.5   rates for the equipment prevailing in all areas of the state, so 
  4.6   as to determine the prevailing rental rate for the equipment. 
  4.7      Sec. 7.  Minnesota Statutes 1996, section 177.44, 
  4.8   subdivision 4, is amended to read: 
  4.9      Subd. 4.  [CERTIFICATION OF HOURS AND RATE.] The 
  4.10  commissioner of labor and industry shall at least once a year 
  4.11  certify the prevailing hours of labor, the prevailing wage rate, 
  4.12  and the hourly basic rate of pay for all classes of laborers and 
  4.13  mechanics and the truck rental rates referred to in subdivision 
  4.14  3 in each area.  The certification must also include future 
  4.15  hours and rates when they can be determined for classes of 
  4.16  laborers and mechanics in an area.  The certification must 
  4.17  specifically state the effective dates of future hours and rates 
  4.18  when they are certified.  If a construction project extends into 
  4.19  more than one area there shall be only one standard of hours of 
  4.20  labor and wage rates for the entire project.  A person aggrieved 
  4.21  by a final determination of the commissioner may petition the 
  4.22  commissioner for reconsideration of findings.  A person 
  4.23  aggrieved by a decision of the commissioner after 
  4.24  reconsideration may within 20 days after the decision petition 
  4.25  the commissioner for a public hearing as in a contested case 
  4.26  under sections 14.57 to 14.61.  If the commissioner finds that a 
  4.27  change in the certified prevailing hours of labor, prevailing 
  4.28  wage rate, and the hourly basic rate of pay for a class of 
  4.29  laborers or mechanics in any area is required, the commissioner 
  4.30  may at any time certify that change.