Chapter 628 Oregon Laws 2001

AN ACT

HB 3350

Relating to payment of prevailing wage rate on public works projects; creating new provisions; amending ORS 279.357; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 279.357 is amended to read:

279.357. (1) ORS 279.348 to 279.380 do not apply to:

(a) Projects for which the contract price does not exceed $25,000.

(b) Projects regulated under the Davis-Bacon Act (40 U.S.C. 276a). Notwithstanding such regulation, contractors and subcontractors shall pay individuals employed as flaggers on such projects not less than the prevailing rate of wage as determined by the Commissioner of the Bureau of Labor and Industries for that classification of work. As used in this paragraph, a “flagger” means a person who controls the movement of vehicular traffic through construction projects using sign, hand or flag signals.

(c)(A) Projects for which no funds of a public agency are directly or indirectly used. In accordance with ORS 183.310 to 183.550, the commissioner shall adopt rules to carry out the provisions of this paragraph.

(B) As used in this paragraph:

(i) “Funds of a public agency” does not include funds provided in the form of a government grant to a nonprofit organization, unless the government grant is issued for the purpose of construction.

(ii) “Nonprofit organization” means an organization or group of organizations described in section 501(c)(3) of the Internal Revenue Code that is exempt from income tax under section 501(a) of the Internal Revenue Code.

(2)(a) [No] A public [contracting] agency [shall] may not divide a public works project into more than one contract for the purpose of avoiding compliance with ORS 279.348 to 279.380.

(b) When the commissioner determines that a public [contracting] agency has divided a public works project for the purpose of avoiding compliance with ORS 279.348 to 279.380, the commissioner shall issue an order compelling compliance.

(A) The physical separation of the project structures.

(B) The timing of the work on project phases or structures.

(D) The manner in which the public [contracting] agency and the contractors administer and implement the project.

SECTION 2. The amendments to ORS 279.357 by section 1 of this 2001 Act apply only to contracts for public works entered into on or after January 1, 2002.

SECTION 3. The amendments to ORS 279.357 by section 1 of this 2001 Act become operative on January 1, 2002.

SECTION 4. The Bureau of Labor and Industries may not initiate or continue any action to enforce compliance with ORS 279.348 to 279.380 against any contractor, subcontractor or public agency involved with a project to which ORS 279.348 to 279.380 would not apply under ORS 279.357, as amended by section 1 of this 2001 Act, if the project were started on or after January 1, 2002.

SECTION 5. (1) Notwithstanding section 4 of this 2001 Act, the Bureau of Labor and Industries may accept and enforce wage claims filed by workers who are entitled to be paid the prevailing rate of wage on a project if:

(a) The project was started before January 1, 2002; and

(b) ORS 279.348 to 279.380 would not have applied to the project under ORS 279.357, as amended by section 1 of this 2001 Act, if the project had been started on or after January 1, 2002.

(2) If a contractor, subcontractor or public agency mails to a worker a notice of the right to file a wage claim on a project described in subsection (1) of this section, the employee must file the wage claim with the bureau within 30 days after the date the notice is mailed.

SECTION 6. Sections 4 and 5 of this 2001 Act are repealed on January 2, 2004.

SECTION 7. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

Approved by the Governor June 26, 2001

Filed in the office of Secretary of State June 26, 2001

Effective date June 26, 2001

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