HB 1811 -- PREVAILING WAGE

SPONSOR:  Ruestman

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 8 to 3.

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 bill 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.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that rural Missouri school districts'
large capital project costs often exceed the school districts
maximum bonding amount causing the district to reduce the project
size and not meet the district's needs.  Labor costs may be 50%
of the construction costs.  Relaxing the prevailing wage
requirement can reduce labor costs by 25% and allow the district
to achieve its educational facility needs.

Testifying for the bill were Representative Ruestman; McDonald
County School Board; Warrensburg School District; Missouri
Association of School Business Officials; Missouri School Plant
Managers Association; Mark Leech, Missouri Association of School
Board Officials; Associated Industries of Missouri; and Missouri
Chamber of Commerce and Industry.

OPPONENTS:  Those who oppose the bill say that the prevailing
wage should be set by the Department of Labor and Industrial
Relations.  Local contractors often fail to report required local
wage rates resulting in artificially high rates.

Testifying against the bill were Missouri AFL-CIO; Carpenters'
District Council of Kansas City; Carpenters' District Council of
Greater St. Louis; St. Louis Area Contractors; Fred Weber,
Incorporated; and Missouri National Education Association.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am