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Montana Administrative Register Notice 24-17-238 No. 20   10/29/2009    
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BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

STATE OF MONTANA

 

In the matter of the amendment of ARM 24.17.127 related to prevailing wage rates for public works projects - building construction services, heavy construction services, highway construction services, and nonconstruction services

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO:  All Concerned Persons

 

            1.  On November 23, 2009, at 1:30 p.m., the Department of Labor and Industry (department) will hold a public hearing to be held in the first floor conference room (room 104), 1327 Lockey Avenue, Walt Sullivan Building, Helena, Montana, to consider the proposed amendment of the above-stated rule.

 

            2.  The department will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice.  If you require an accommodation, contact the department no later than 5:00 p.m., on November 17, 2009, to advise us of the nature of the accommodation that you need.  Please contact the Labor Standards Bureau, Employment Relations Division, Department of Labor and Industry, Attn: Mike Smith, P.O. Box 6518, Helena, MT  59604-6518; telephone (406) 444-1741; fax (406) 444-7071; TDD (406) 444-0532; or e-mail MikeSmith@mt.gov.

 

            3.  The rule proposed to be amended provides as follows, stricken material interlined, new material underlined:

 

            24.17.127  ADOPTION OF STANDARD PREVAILING RATE OF WAGES 

            (1)  remains the same.

            (a)  A notice of proposed adoption of the commissioner's determination is published in the Montana Administrative Register 30 approximately 45 to 45 60 days prior to adoption according to regular publication dates scheduled in ARM 1.2.419.

            (b) through (1)(d) remain the same.

            (e)  The current building construction services rates are contained in the 2009 2010 version of "The State of Montana Prevailing Wage Rates - Building Construction Services" publication.

            (f)  The current nonconstruction services rates are contained in the 2009 2010 version of "The State of Montana Prevailing Wage Rates - Nonconstruction Services" publication.

            (g)  The current heavy and highway construction services rates are contained in the 2009 revised 2010 version of "The State of Montana Prevailing Wage Rates - Heavy and Highway Construction Services" publication.

            (h)  The current highway construction services rates are contained in the 2010 version of "The State of Montana Prevailing Wage Rates - Highway Construction Services" publication.

            (2)  The commissioner maintains a mailing list of interested persons and agencies.  A copy of any notice, proposed rate of wages, adopted rates, wages or other information are distributed to each addressee.  All others may obtain a copy or be included on the mailing list upon request to the Office of Research and Analysis, Workforce Services Division, Department of Labor and Industry, 840 Helena Avenue, Helena, MT 59601 address listed in (3).  Copies of adopted wage rates are available at reproduction cost for a period of five years following their effective date.

            (3)  The standard prevailing rates of wages publications are hereby adopted and incorporated by reference.  Copies of the rates are available upon request from the Labor Standards Bureau, Employment Relations Division, Department of Labor and Industry, 1805 Prospect Avenue, P.O. Box 201503, Helena, MT 59620-1503, (406) 444-1741, or on-line at http://erd.dli.mt.gov/laborstandard/prevwage/state.asp or www.mtwagehourbopa.com.

 

AUTH:  2-4-307, 18-2-409, 18-2-431, 39-3-202, MCA

IMP:  18-2-401, 18-2-402, 18-2-403, 18-2-406, 18-2-411, 18-2-412, 18-2-413, 18‑2‑414, 18-2-415, 18-2-422, 18‑2‑431, MCA

 

            4.  The department believes there is reasonable necessity to amend ARM 24.17.127 to update the various prevailing wage rates.  Payment of prevailing wage rates is required in most public works contracts by 18-2-422, MCA.  The department is proposing the rates at this time following completion of its wage surveys, in order to have as current a set of rates as is feasible.  The proposed wage rates will apply to public works projects let for bid on or after the effective date of the rate changes.

 

The department emphasizes that the proposed rates for building construction services and nonconstruction services are based upon survey responses and applicable collective bargaining agreements.  The methodology for surveys and rate computations is described in ARM 24.17.121.  The department relies upon the information provided by employers and labor organizations during the survey process to set the proposed rates.  The final rates are based upon the preliminary rates, as modified by including any relevant information provided during the public comment period.

 

There is reasonable necessity to provide for separate publications of the heavy construction rates from the highway construction rates, in that various rate users have expressed confusion regarding the distinction between the two batches of rates.  The department believes that by separating heavy construction rates from highway construction rates, workers, construction companies, and government agencies are more likely to use the correct rates for the bidding process, and that proper wage rates will be paid on public works projects.  The rates for heavy construction and for highway construction are based upon the Davis-Bacon Act rates adopted for Montana by the federal government, rather than based upon a department survey.  The adoption by reference of federal rates is provided for by 18‑2-414 (2)(a), MCA.  The department believes that republication of those rates in its own rate publication is more convenient for its customers than merely citing a reference to a federal rate publication, and more likely to lead to the use of the correct rate by the affected parties.

 

There is also reasonable necessity to update the correct contact address information in paragraph (2) and to make minor grammatical changes in (3) while the rule is otherwise being amended.  In addition, there is reasonable necessity to update the language in paragraph (1)(a) to more accurately reflect the department's recent experience with how long it takes to take final action following publication of proposed rate changes.

 

Finally, there is reasonable necessity to amend the IMP citations to the rule to reflect the enactment of Chap. 277, Laws of 2009 (Senate Bill 308) and the statutory changes contained in the legislation, and correctly reflect the codification of the statutes which are being implemented by the rule.  There also is reasonable necessity to amend the AUTH citations to delete the reference to an inappropriate statutory reference while the rule is otherwise being amended.

 

            5.  A copy of the proposed 2010 publications, identified as "preliminary building construction rates", "preliminary heavy construction rates", "preliminary highway construction rates", and "preliminary nonconstruction rates", are available and can be accessed on-line via the internet at: www.mtwagehourbopa.com.

 

            6.  A printed version of the proposed 2010 publications is also available by contacting Mike Smith, at the address, e-mail, or telephone numbers listed in paragraph 2 of this notice.

 

            7.  Concerned persons may present their data, views, or arguments, either orally or in writing, at the hearing.  Written data, views, or arguments may also be submitted to:  Labor Standards Bureau, Employment Relations Division, Department of Labor and Industry, Attn: Mike Smith, P.O. Box 6518, Helena, MT  59604-6518; fax (406) 444-7071; TDD (406) 444-0532; or e-mailed to MikeSmith@mt.gov, and must be received no later than 5:00 p.m., November 30, 2009.

 

            8.  An electronic copy of this Notice of Public Hearing is available through the department's web site at http://dli.mt.gov/events/calendar.asp, under the Calendar of Events, Administrative Rules Hearings Section.  The department strives to make the electronic copy of this Notice of Public Hearing conform to the official version of the Notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the Notice and the electronic version of the Notice, only the official printed text will be considered.  In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems, and that a person's difficulties in sending an e-mail do not excuse late submission of comments.

 

            9.  The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program or areas of law the person wishes to receive notices.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the Department of Labor and Industry, attention: Mark Cadwallader, 1327 Lockey Avenue, P.O. Box 1728, Helena, Montana  59624-1728, faxed to the department at (406) 444-1394, e-mailed to mcadwallader@mt.gov, or may be made by completing a request form at any rules hearing held by the agency.

 

            10.  The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled.  The bill's primary sponsor was contacted telephonically on June 17, 2009.

 

            11.  The department's Hearings Bureau has been designated to preside over and conduct this hearing.

 

 

/s/ MARK CADWALLADER            /s/ KEITH KELLY

Mark Cadwallader                            Keith Kelly, Commissioner

Alternate Rule Reviewer                   DEPARTMENT OF LABOR AND INDUSTRY

 

 

Certified to the Secretary of State October 19, 2009

 

 

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