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Minutes for HB2185 - Committee on Commerce, Labor and Economic Development
Short Title
Restoring local control over wage requirements for construction projects.
Minutes Content for Tue, Feb 7, 2017
The hearing was opened. Chuck Reimer, Kansas Revisor or Statutes, provided an overview.
Representative Pam Curtis, gave proponent testimony. (Attachment 4) In 2013 the Legislature imposed an unnecessary and unwelcome intrusion in local affairs and violated the spirit of home rule for cities. This bill undoes that action and allow local units of government to decide what is best for their communities. Prevailing wage is the hourly wage, usual benefits and overtime, paid in the largest city in each county to the majority of workers, laborers and mechanics. A UMKC Prevailing Wage Study proves that requiring prevailing wage does not have a major impact on government contracting costs and most importantly does not increase the overall cost of projects. This bill restores local control that would be optional and at the discretion of local communities to require prevailing-wage if deemed appropriate.
Mike Taylor, Unified Government of Wyandotte County/Kansas City, KS, gave proponent testimony. (Attachment 5) Prevailing wage fits the nature of our community and is supported by our citizens. Prevailing wage has encouraged economic development in Wyandotte County, not hurt it. Payment of prevailing wage benefits the economies of Wyandotte County and the State of Kansas by giving workers more income to spend on purchases, supporting local businesses and generating increased tax revenues. The law prohibiting use of prevailing wage is an unnecessary and unwelcome intrusion by the State of Kansas into local affairs and violates the spirit of home rule for cities.
Andy Sanchez, Kansas AFL-CIO, gave proponent testimony. (Attachment 6) Prevailing wages provide the best possible outcome on a project, primarily because the work is completed on time and on budget. Prevailing wage laws are designed to pay a fair wage comparable to the local standard in the community area. Such a law prevents contractors from simply low-balling bids to get a contract and then using unskilled labor who don't always provide high quality construction work. Prevailing wage is a great tool to keep competition honest where focus in on skill training, safety and management organization. It's a good way to guarantee returns on investment of local government projects because dollars earned are redistributed right back into the local economy.
Larry Baer, The League of Kansas Municipalities, gave proponent testimony. (Attachment 7) HB2185, as written, would restore local government's ability to require the payment of prevailing wages on public projects. This would reverse action taken in 2013 that prohibited prevailing wage agreements on public projects. The League opposes state and federal mandates requiring or prohibiting the payment of prevailing wage.
Mike Kane, Tri-County Labor, gave proponent testimony. (Attachment 8) After the change in prevailing wage made in 2013, unemployment has increased and the future does not look any brighter. Village West and Hollywood Casino projects were built with the use of prevailing wage. Studies have proven that people spend their money in the community that they live in.
Written testimony in support of HB2185 was submitted by:
Mark Holland, Mayor/CEO, Unified Government of Wyandotte County/Kansas City, KS, (Attachment 9)
Melissa Wangemann, Kansas Association of Counties, (Attachment 10)
Joe Hudson, St. Louis-Kansas City Carpenters Regional Council, (Attachment 11)
Bob Jacobi, Labor-Management Council of Greater Kansas City,(Attachment 12)
Terry Forsythe, Working Kansas Alliance, (Attachment 13)
Eric Stafford, Kansas Chamber of Commerce, gave opponent testimony. (Attachment 14) HB2069 was passed to prevent local units of government from placing unfair and burdensome mandates on businesses that would not be applied to businesses located in other parts of the state, or even the same country. Unfortunately HB2185 looks to repeal the content of HB2069 which was a great victory for the business community in the state.
Dave Trabert, Kansas Policy Institute, gave opponent testimony. (Attachment 15) The bill's proponents call this restoring local control but local government has no right whatsoever to tell private employers how much to pay their employees or what benefits to provide. Isn't about restoring local control. Cities and counties are asking the Legislature to allow them to discriminate again certain local businesses so they can justify granting contracts to higher-cost favored contractors, which will result in citizens paying higher taxes.
Jason Watkins, Watkins & Schneider Consulting, LLC, gave opponent testimony. (Attachment 16) HB2185 would create unpredictability and remove state preemptive authority over what are statewide issues. It is in the best interest of public policy and job creation efforts that decisions on compensation, paid leave and other areas regarding employment agreements be decided at the state level. A patchwork of local employment regulations across the state makes Kansas's regulatory environment confusing and unattractive to the job creators.
Daniel Murray, National Federation of Independent Business, gave opponent testimony. (Attachment 17) The bill would undo statutory protections against local overreach in matters related to employee benefits. It would remove restrictions again local municipalities to enact or administer any ordinance, resolution or law that requires an employer provide leave of work, compensation for leave, compensation at a rate higher than the minimum wage or any benefit other than those required by state or federal law. The bill would repeal prohibitions against local municipalities from adopting ordinances or policies which favor certain public construction contract bidders that meet certain wage criterion.
Written testimony in opposition of HB2185 was submitted by:
Gary Seaton, Total Interiors Inc., (Attachment 18)
The hearing was closed.
