HB 1216-1_ Filed 04/28/2011, 17:40
Adopted 4/29/2011

CONFERENCE COMMITTEE REPORT

DIGEST FOR EHB 1216


Citations Affected: IC 5-16-7.

Synopsis: Public works projects. PROPOSED CONFERENCE COMMITTEE REPORT for EHB 1216. Provides that the state president of the Associated Builders and Contractors of Indiana appoints a member of a common construction wage committee currently appointed by the governor. Raises the threshold for the application of the common construction wage statute from $150,000 to $250,000 for contracts awarded after December 31, 2011, and before January 1, 2013, and to $350,000 for contracts awarded after December 31, 2012. Provides that a committee must consider any written reports with respect to wage scales submitted by the Indiana State Building and Construction Trades Council or the Associated Builders and Contractors of Indiana when making a determination of the common construction wage for a public works project. Provides that a public works project may not be artificially divided to avoid application of the common construction wage statute. Urges the legislative council to assign the following topics to a study committee during the 2011 legislative interim: (1) The use of an agreement with a labor organization on public works projects covered by a public works statute. (2) Job classifications used in a common construction wage determination. Makes technical changes. (This conference committee report restores language that provides that the awarding agency appoints a representative of industry to a common construction wage committee and provides that the state president of the Associated Builders and Contractors instead of the governor appoints a third member of a committee. This conference committee report removes language that a common construction wage committee's determination may not address matters other than those specifically described in the statute. This conference committee report also resolves conflicts with SEA 418 from the 2011 Session.)

Effective: July 1, 2011.



CONFERENCE COMMITTEE REPORT

MADAM PRESIDENT:
    Your Conference Committee appointed to confer with a like committee from the House upon Engrossed Senate Amendments to Engrossed House Bill No. 1216 respectfully reports that said two committees have conferred and agreed as follows to wit:

    that the House recede from its dissent from all Senate amendments and that the House now concur in all Senate amendments to the bill and that the bill be further amended as follows:

    Delete everything after the enacting clause and insert the following:

SOURCE: IC 5-16-7-1; (11)CC121602.1.1. -->     SECTION 1. IC 5-16-7-1, AS AMENDED BY SEA 418-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. (a) Any firm, individual, partnership, limited liability company, or corporation that is awarded a contract by the state, a political subdivision, or a municipal corporation for the construction of a public work, and any subcontractor of the construction, shall pay for each class of work described in subsection (c)(1) on the project a scale of wages that may not be less than the common construction wage.
    (b) For the purpose of ascertaining what the common construction wage is in the county, the awarding governmental agency, before advertising for the contract, shall set up a committee of five (5) persons as follows:
        (1) One (1) person representing labor, to be named by the president of the state federation of labor.
        (2) One (1) person representing industry, to be named by the awarding agency.
        (3) A third member to be named by the governor. state president of the Associated Builders and Contractors.
        (4) One (1) taxpayer who pays the tax that will be the funding source for the project and resides in the county where the project

is located. The owner of the project shall make the appointment under this subdivision.
        (5) One (1) taxpayer who pays the tax that will be the funding source for the project and resides in the county where the project is located. The legislative body (as defined in IC 36-1-2-9) for the county where the project is located shall make the appointment under this subdivision.
    (c) As soon as appointed, the committee shall meet in the county where the project is located and determine in writing the following:
        (1) A classification of the labor to be employed in the performance of the contract for the project, divided into the following three (3) classes:
            (A) Skilled labor.
            (B) Semiskilled labor.
            (C) Unskilled labor.
        (2) The wage per hour to be paid each of the classes.
The committee is not required to consider information not presented to the committee at the meeting. IC 5-14-1.5 (open door law) applies to a meeting of the committee.
    (d) The rate of wages determined by the committee under subsection (c) applies to any contract for which the awarding government agency lets not later than three (3) months after the date the committee determines the rate of wages. The committee shall establish wages for all classifications of work that may be employed on projects subject to contracts let by the awarding agency for three (3) months after the date the committee determines the rate of wages. If an awarding agency advertises for a contract that includes classifications that are not listed on the existing wage scale, the awarding agency shall form a new committee under subsection (b) to determine the classifications and wages on the contract.
    (e) If the awarding government agency lets for a contract later than three (3) months after the committee determines the rate of wages, the awarding government agency shall form a new committee under subsection (b) to determine a rate of wages for the contract. The rate of wages determined under this subsection applies to any contract for which the awarding government agency lets not later than three (3) months after the rate of wages is determined under this subsection.
    (f) The rate of wages determined under subsection (c) shall not be less than the common construction wage for each of the three (3) classes of wages described in subsection (c) that are currently being paid in the county where the project is located.
    (g) The provisions of This chapter shall does not apply to contracts let by the Indiana department of transportation for the construction of highways, streets, and bridges. IC 8-23-9 applies to state highway projects.
    (h) A determination under subsection (c) shall be made and filed with the awarding agency at least two (2) weeks prior to the date fixed for the letting, and a copy of the determination shall be furnished upon request to any person desiring to bid on the contract. The schedule is open to the inspection of the public.
    (i) If the committee appointed under subsection (b) fails to act and

to file a determination under subsection (c) at or before the time required under subsection (h), the awarding agency shall make the determination, and its finding shall be final.
    (j) It shall be a condition of a contract awarded under this chapter that the successful bidder and all subcontractors shall comply strictly with the determination made under this section.
    (k) The provisions of This chapter do does not apply to public projects in this state Indiana that would otherwise be subject to the provisions of this chapter that are to be paid for in whole or in part with funds granted by the federal government, unless the department of the federal government making the grant shall consent consents in writing that the provisions of this chapter are is applicable to the project.
    (l) Notwithstanding any other law, the provisions of this chapter apply applies to projects that will be:
        (1) owned entirely; or
        (2) leased with an option to purchase;
by the state or a political subdivision (as defined in IC 36-1-2-13).
    (m) Notwithstanding any other law, this chapter does not apply to projects in which the actual construction costs are less than one hundred fifty thousand dollars ($150,000). the following:
        (1) For contracts awarded after December 31, 2011, and before January 1, 2013, two hundred fifty thousand dollars ($250,000).
        (2) For contracts awarded after December 31, 2012, three hundred fifty thousand dollars ($350,000).

SOURCE: IC 5-16-7-4; (11)CC121602.1.2. -->     SECTION 2. IC 5-16-7-4, AS AMENDED BY SEA 418-2011, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. The following definitions in this section apply throughout this chapter:
        (1) "Common construction wage" means a scale of wages for each class of work described in section 1(c)(1) of this chapter that is not less than the common construction wage of all construction wages being paid in the county where a project is located, as determined by the committee described in section 1(b) of this chapter after having considered the following:
            (A) Any reports with respect to wage scales submitted by the Indiana State Building and Construction Trades Council.
            (B) Any reports with respect to wage scales submitted by the Associated Builders and Contractors of Indiana.
            (C)
Any other information submitted by any person to the committee established under section 1(b) of this chapter.
        (2) "State" of Indiana" includes any officer, board, commission, or other agency authorized by law to award contracts for the performance of public work on behalf of the state, excepting except as otherwise provided in this chapter.
        (3) "Municipal corporation" includes any county, city, town, or school corporation, as well as or any officer, board, commission, or other agency authorized by law to award contracts for the performance of public work on behalf of any such a municipal corporation. The term also includes a redevelopment commission

established under IC 36-7-14-3.
        (4) "Public work" includes any public building, highway, street, alley, bridge, sewer, drain, improvement, or any other work of any nature or character whatsoever which that is paid for out of public funds, excepting except as otherwise provided in this chapter.

SOURCE: IC 5-16-7-6; (11)CC121602.1.3. -->     SECTION 3. IC 5-16-7-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) A public work project may not be artificially divided into two (2) or more projects to avoid the application of this chapter.
    (b) A bidder, quoter, or other person who is a party to a public work contract who knowingly violates this section commits a Class A infraction and may not be a party to, or benefit from, a public work contract for two (2) years after the date of the adjudication.
    (c) An officer or employee of the state or a municipal corporation who knowingly violates this section commits a Class A infraction.

SOURCE: ; (11)CC121602.1.4. -->     SECTION 4. [EFFECTIVE JULY 1, 2011] (a) As used in this SECTION, "legislative council" refers to the legislative council established by IC 2-5-1.1-1.
    (b) As used in this SECTION, "public works statute" refers to any of the following:
        (1) IC 4-13.6.
        (2) IC 5-16.
        (3) IC 8-10-1.
        (4) IC 8-23-9.
        (5) IC 36-1-12.
    (c) As used in this SECTION, "study committee" means either of the following:
        (1) A statutory committee established under IC 2-5.
        (2) An interim study committee.
    (d) The legislative council is urged to assign the following topics to a study committee during the 2011 legislative interim:
        (1) The use of an agreement with a labor organization on public works projects covered by a public works statute.
        (2) Job classifications used in a common construction wage determination.
    (e) If a topic described in subsection (d) is assigned to a study committee, the study committee shall determine whether legislation should be enacted to address the topic and, if so, the study committee shall recommend proposed legislation.
    (f) This SECTION expires December 31, 2011.

    (Reference is to EHB 1216 as reprinted April 19, 2011.)




Conference Committee Report

on

Engrossed House Bill 1216



Text Box

S

igned by:


    ____________________________    ____________________________
    Representative Davis Senator Walker
    Chairperson

    ____________________________    ____________________________
    Representative Torr Senator Boots

    House Conferees    Senate Conferees


CC121602/DI 75
2011