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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: January 20, 2017 02:24 PM
From: Representative Ron Marsico
To: All House members
Subject: Keystone Opportunity Zone - Prevailing Wage
Please find attached a copy of legislation that I plan to re-introduce (HB1262) in the near future to amend the “Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act” (Act 92 of 1998) to exempt construction./reconstruction projects in Keystone Opportunity Zones (KOZs) from the requirements of the Prevailing Wage Act. The Prevailing Wage Act requires that “prevailing wages” be paid on public projects in the Commonwealth that are over $25,000 in project costs. The Department of Labor & Industry has made the administrative determination that they consider the local prevailing wage to be the union wage rates which are in effect for a particular area. Studies in Pennsylvania, and other states, have consistently indicated that the requirements of state prevailing wage laws elevate the costs of public construction projects anywhere from 10%-20%.

I believe that KOZs are, by definition, areas that are blighted and which need both public and private investment. In particular, many KOZ areas are in need of public infrastructure improvements to attract investment. Thus, I believe that we need to exempt these areas from the requirements of the Prevailing Wage Act to allow public bodies to maximize the dollars they have to spend on infrastructure improvements.

Please join me in sponsoring this important piece of legislation.

View Attachment

Introduced as HB1236