Bills Expand Apprentice Quotas, Prevailing Wage to Some Private Projects

AGC opposes both HB 1023 which extends apprenticeship utilization quotas to certain private projects and HB 1025 which extends prevailing wage laws to some private projects.

Basically the bills redefine as public works those projects for which:

  • a party to the contract for the public work received or will receive a specified construction-related tax preference;
  • a party to the contract for the public work received or will receive a public loan;
  • the work takes place on land that a party to the public work contract leases from the state or a county municipality or political subdivision; or
  • the work takes place on land that a party to the public work contract purchased from the state or a county municipality or political subdivision for less than fair market value as determined at the time of the sale.

These bills will significantly increase the costs of private projects and put at risk hundreds of millions of dollars in private investment AGC Legislative Counsel Van Collins said in testimony before the House Labor and Workforce Development Committee. Projects will just not be built.

Collins noted that many of the affected projects would be those that receive relief from the state sales tax. The Legislature has previously made it the polity of the state to encourage development of projects through these subsidies he said. Do we now want to hinder this? Do we want to take away such an incentive when we have other states close by that do not have a sales tax at all?

Although the bills have received a hearing no additional action has been taken yet by the Committee.

HB 1023 is sponsored by Reps. Moeller Appleton Stanford Hudgins Ormsby Pollet and Reykdal. HB 1025 is sponsored by Reps. Moeller Appleton Ormsby and Pollet

For more information contact Van Collins 230-352-5000.