House Co-Sponsorship Memoranda

House of Representatives
Session of 2013 - 2014 Regular Session

Posted:	January 2, 2013 03:16 PM
From:	Representative Fred Keller
To:	All House members
Subject:	Co-Sponsorship of Legislation to Amend Prevailing Wage Act

In the near future I will be introducing legislation to amend the Prevailing Wage Act (Act 442 of 1961) to require that a majority of a Public Works project (at least 51%) be financed by Public moneys before the project is subject to the Prevailing Wage Act. This same legislation was introduced by former Representative Scott Perry last session as HB 1541. Currently, the Prevailing Wage Act states that a project (in excess of $25,000) that is paid for "in whole or in part" out of funds of public body is subject to the act. Thus, projects that receive any public money become subject to the act and its requirements. I believe that it is unreasonable to allow projects that are mostly funded by private monies to be drawn into the bureaucracy and higher construction costs associated with the Prevailing Wage Act. The way the act is currently written, a project could receive 1% public funding, and subject itself to the act's requirements. Many of us have heard the horror stories about local communities getting small grants from the state or local authorities for various purposes to fund a small part of a project (soccer field, etc..), and finding out that receiving the money made the project subject to Prevailing Wage Act requirements. This legislation will require that a majority of a Public Works project (at least 51%) be financed by Public moneys, before the project is subject to the Prevailing Wage Act.
View Attachment