PRINTER'S NO. 615

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

541

Session of

2015

INTRODUCED BY KAUFFMAN, BLOOM, SACCONE, MENTZER, MARSICO, GROVE,

CUTLER, TALLMAN, DIAMOND, FEE, RAPP, McGINNIS, METCALFE,

SAYLOR, EVERETT, DELOZIER, M. K. KELLER, LAWRENCE, HICKERNELL

and Industry; providing remedies, penalties and repealing

existing laws."

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The title of the act of August 15, 1961 (P.L.987,

No.442), known as the Pennsylvania Prevailing Wage Act, is

repealed:

Relating to public works contracts; providing for prevailing

wages; imposing duties upon the Secretary of Labor and

amended or added August 9, 1963 (P.L.653, No.342), are repealed:

[Section 2. Definitions.--As used in this act--

(1) "Department" means Department of Labor and Industry of

the Commonwealth of Pennsylvania.

(2) "Locality" means any political subdivision, or

combination of the same, within the county in which the public

work is to be performed. When no workmen for which a prevailing

minimum wage is to be determined hereunder are employed in the

locality, the locality may be extended to include adjoining

political subdivisions where such workmen are employed in those

any of its political subdivisions, any authority created by the

General Assembly of the Commonwealth of Pennsylvania and any

instrumentality or agency of the Commonwealth of Pennsylvania.

(5) "Public work" means construction, reconstruction,

demolition, alteration and/or repair work other than maintenance

work, done under contract and paid for in whole or in part out

of the funds of a public body where the estimated cost of the

total project is in excess of twenty-five thousand dollars

($25,000), but shall not include work performed under a

rehabilitation or manpower training program.

subcontractor and engaged in the performance of services

directly upon the public work project, regardless of whether

their work becomes a component part thereof, but does not

include material suppliers or their employes who do not perform

services at the job site.

(8) "Work performed under a rehabilitation program," means

work arranged by and at a State institution primarily for

teaching and upgrading the skills and employment opportunities

of the inmates of such institutions.

(9) "Advisory Board" means the board created by section 2.1

assisting the secretary in carrying out his duties under the act

to which this is an amendment.

(b) Except for the member employed by the secretary, each

member of the Advisory Board shall be appointed by the Governor

and shall receive a compensation of thirty dollars ($30) per day

for each day actually spent in the performance of his duties

plus necessary expenses.

(c) Of the seven members, one shall be a representative of

an association of general contractors engaged full-time in the

building construction industry, one shall be a representative of

member of an historically established union representing labor

in the heavy and highway construction industry, one shall be a

member of an association representing a political subdivision,

one shall be learned in the law and employed by the secretary,

and one shall not be engaged in or employed by the building

industry or by a public body but shall represent the general

public.

(d) At least two weeks' public notice shall be given in the

manner prescribed by regulation of the board prior to any

meeting of the board. Four members of the board shall constitute

(3) Promulgate rules and regulations necessary to carry out

the duties placed upon the board by this act.

Section 2.2. Appeals Board Powers and Duties.--(a) There is

hereby created in the Department of Labor and Industry an

Appeals Board consisting of seven members for the purpose of

hearing and determining grievances arising out of the

administration of the act to which this is an amendment.

(b) Except for the member employed by the secretary, each

member of the Appeals Board shall be appointed by the Governor

and shall receive a compensation of thirty dollars ($30) per day

building construction industry, one shall be a representative of

an association of heavy and highway contractors engaged full

time in the heavy and highway construction industry, one shall

be a member of an historically established union representing

labor in the building construction industry, one shall be a

member of an historically established union representing labor

in the heavy and highway construction industry, one shall be a

member of an association representing a political subdivision,

one shall be learned in the law and employed by the secretary,

and one shall not be engaged in or employed by the building

(e) The Appeals Board shall have the power and duty to--

(1) Hear and determine any grievance or appeal arising out

of the administration of this act.

(2) Promulgate rules and regulations necessary to carry out

the duties placed upon the board by this act: Provided, however,

That any such rules and regulations shall provide for notice of

filing of grievances and appeals, public hearings, right of

representation and all other procedures required by due process

of law.

Section 3. Specifications.--The specifications for every

Section 4. Duty of Public Body.--It shall be the duty of

every public body which proposes the making of a contract for

any project of public work to determine from the secretary the

prevailing minimum wage rates which shall be paid by the

contractor to the workmen upon such project. Reference to such

prevailing minimum rates shall be published in the notice issued

for the purpose of securing bids for such project of public

work. Whenever any contract for a project of public work is

entered into, the prevailing minimum wages as determined by the

secretary shall be incorporated into and made a part of such

subcontractor shall keep an accurate record showing the name,

craft and the actual hourly rate of wage paid to each workman

employed by him in connection with public work, and such record

shall be preserved for two years from date of payment. The

record shall be open at all reasonable hours to the inspection

of the public body awarding the contract and to the secretary.]

Section 5. Sections 7 and 8 of the act, amended August 9,

1963 (P.L.653, No.342), are repealed:

[Section 7. Duty of Secretary.--The secretary shall, after

consultation with the advisory board, determine the general

anticipated term thereof: Provided, however, That employer and

employe contributions for employe benefits pursuant to a bona

fide collective bargaining agreement shall be considered an

integral part of the wage rate for the purpose of determining

the minimum wage rate under this act. Nothing in this act,

however, shall prohibit the payment of more than the general

prevailing minimum wage rate to any workman employed on public

work. The secretary shall forthwith give notice by mail of all

determinations of general prevailing minimum wage rates made

pursuant to this section to any representative of any craft, any

repair work involved, any representative of any craft or

classification of workmen or the public body may, within ten

days after the publication and issue of the specifications

covering the particular contract for public work involved, file

with the secretary a verified petition to review the

determination of any such rate or rates. Within two days

thereafter a copy of such petition shall be filed with the

public body authorizing the public work. The petition shall set

forth the facts upon which it is based. The secretary shall,

upon notice to the petitioner, the public body authorizing the

investigation and hold a public hearing within twenty days after

the filing of such petition. Within ten days thereafter, the

secretary shall make a determination and transmit it, in

writing, to the public body and to the interested parties. Such

determination shall be final unless within ten days an appeal is

filed with the Appeals Board.

Upon receipt by the public body of the notice of the filing

of such petition, the public body awarding the contract or

authorizing the public work shall extend the closing date for

the submission of bids until five days after the final

shall also be given to the bidders by the awarding body of the

final determination of the secretary or Appeals Board which

shall also be included in the contract. The determination of the

secretary or Appeals Board shall be included in the contract.]

Section 6. Sections 9, 10, 11, 12, 13, 14, 15, 16 and 17 of

contractors performing public work for a public body subject to

as determined by the secretary, including the effective date of

any changes thereof, in prominent and easily accessible places

at the site of the work, or at such place or places as are used

Section 10. Duty of Public Body.--(a) Before final payment

is made by, or on behalf of any public body of any sum or sums

due on public work, it shall be the duty of the treasurer of the

public body or other officer or person charged with the custody

and disbursement of the funds of the public body to require the

contractor and subcontractor to file statements, in writing, in

form satisfactory to the secretary, certifying to the amounts

then due and owing from such contractor and subcontractor,

filing such statement to any and all workmen for wages due on

account of public work, setting forth therein the names of the

right of a contractor to receive final payment because of the

failure of any subcontractor to comply with provisions of this

act.

(b) In case any workman shall have filed a protest, in

writing, within three months from the date of the occurrence of

the incident complained of, with the secretary, objecting to the

payment to any contractor to the extent of the amount or amounts

due or to become due to the said workman for wages or for labors

performed on public works, the secretary shall direct the fiscal

or financial officer of the public body, or other person charged