[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2042 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 2042
To amend the Davis-Bacon Act and the Copeland Act to provide new job
opportunities, effect significant cost savings by increasing efficiency
and economy in Federal procurement, promote small and minority business
participation in Federal contracting, increase competition for Federal
construction contracts, reduce unnecessary paperwork and reporting
requirements, clarify the definition of prevailing wage, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 6, 1993
Mr. Stenholm (for himself, Mr. Fawell, Mr. Valentine, Mr. Goodling, Mr.
Montgomery, and Mr. Inhofe) introduced the following bill; which was
referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To amend the Davis-Bacon Act and the Copeland Act to provide new job
opportunities, effect significant cost savings by increasing efficiency
and economy in Federal procurement, promote small and minority business
participation in Federal contracting, increase competition for Federal
construction contracts, reduce unnecessary paperwork and reporting
requirements, clarify the definition of prevailing wage, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE.
(a) Short Title.--This Act may be cited as the ``Davis-Bacon Reform
Act''.
(b) Reference.--Whenever in this Act (other than in section 12) an
amendment is expressed in terms of an amendment to a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Act of March 3, 1931, entitled ``An Act relating
to the rate of wages for laborers and mechanics employed on public
buildings of the United States and the District of Columbia by
contractors and subcontractors, and for other purposes'' (40 U.S.C.
276a et seq.) (commonly referred to as the ``Davis-Bacon Act'').
SEC. 2. INCREASE IN THRESHOLD AMOUNT.
Subsection (a) of section 1 (40 U.S.C. 276a(a)) is amended by
striking out ``$2,000'' and inserting in lieu thereof ``$500,000''.
SEC. 3. APPROPRIATE CIVIL SUBDIVISION FOR COMPUTATION OF PREVAILING
WAGE.
Subsection (a) of section 1 (40 U.S.C. 276(a)) is amended by
striking out ``the city, town, village, or other civil subdivision of
the State, in which the work is to be performed,'' and inserting in
lieu thereof ``the particular urban or rural subdivision (of the State)
in which the work is to be performed,''.
SEC. 4. DETERMINATION OF PREVAILING WAGE.
Subsection (a) of section 1 (40 U.S.C. 276(a)) is amended by adding
at the end thereof the following new sentence: ``In determining the
prevailing wage for a class of laborers, mechanics, or helpers where
more than a single wage is being paid to the corresponding class of
laborers, mechanics, or helpers, the Secretary shall establish as the
prevailing wage the entire range of wages being paid to such
corresponding class of laborers, mechanics, or helpers employed on
private industry projects of a character similar to the contract work
in the urban or rural subdivision of the State in which the work is to
be performed, or in the District of Columbia if the work is to be
performed there.''.
SEC. 5. EXCLUSION OF FEDERAL PROJECTS FROM PREVAILING WAGE COMPUTATION.
Subsection (b)(1) of section 1 (40 U.S.C. 276a(b)(1)) is amended by
inserting before the semicolon the following: ``, excluding the basic
hourly rates of pay of individuals whose wages are established pursuant
to the requirements of this Act, unless it is determined that there is
insufficient wage data to determine the prevailing wages in the absence
of data from such Federal or federally assisted projects''.
SEC. 6. CLASSIFICATION OF HELPERS.
Section 1 (40 U.S.C. 276a) is amended by adding at the end thereof
the following new subsection:
``(c)(1) For the purposes of this Act, helpers of laborers or
mechanics shall be considered as a separate class and prevailing wages
for such helpers shall be determined on the basis of the corresponding
class of helpers employed on private industry projects of a character
similar to the contract work in the urban or rural subdivision of the
State in which the work is to be performed, or in the District of
Columbia if the work is to be performed there.
``(2) For purposes of this section, the term `helper' means a semi-
skilled worker (rather than a skilled journeyman mechanic) who--
``(A) works under the direction of and assists a
journeyman,
``(B) under the direction and supervision of the
journeyman, performs a variety of duties to assist the
journeyman, such as--
``(i) preparing, carrying, and furnishing
materials, tools, equipment, and supplies and
maintaining them in order,
``(ii) cleaning and preparing work areas,
``(iii) lifting, positioning, and holding materials
or tools, and
``(iv) other related semi-skilled tasks as directed
by the journeyman, and
``(C) may use tools of the trade which are under the
direction and supervision of the journeyman.''.
SEC. 7. PROHIBITION ON CONTRACT-SPLITTING.
Section 1 (40 U.S.C. 276a) (as amended by section 6) is further
amended by adding at the end thereof the following new subsections:
``(d) Any person entering into a contract under which wages are to
be determined in accordance with this Act shall not divide any project
into contracts of $500,000 or less if the project would not have been
so divided but for the purpose of avoiding the application of this Act.
``(e) Whenever the Secretary of Labor determines that a division
for such purpose as described in subsection (d) has occurred, the
Secretary may--
``(1) require that the contracts, grants, or other
instruments providing Federal financing or assistance be
amended so as to incorporate retroactively all the provisions
which would have been required under this Act or other
applicable prevailing wage statute, and
``(2) require the contracting or assisting agency, the
recipient of Federal financing or assistance, or any other
entity which awarded the contract or instrument providing
Federal financing or assistance in violation of this section,
to compensate the contractor, the grantee, or other recipient
of Federal assistance, as appropriate, for payment to each
affected laborer and mechanic, of an amount equal to the
difference between the rate received and the applicable
prevailing wage rate, with interest on wages due at the rate
specified in section 6621(c) of the Internal Revenue Code of
1986, from the date the work was performed by such laborers and
mechanics.
``(f) The Secretary shall make a determination that a division for
such purpose as described in subsection (d) has occurred only where the
Secretary has notified the agency or entity in question not later than
180 days after completion of construction on the project that an
investigation will be conducted concerning an alleged violation of this
subsection.''.
SEC. 8. TECHNICAL AMENDMENT APPLYING REFORM TO RELATED ACTS.
The Act (40 U.S.C. 276a et seq.) is amended by adding at the end
thereof the following new section:
``Sec. 8. No provision of any law requiring the payment of
prevailing wage rates as determined by the Secretary in accordance with
this Act shall apply to contracts for construction, alteration, or
repair valued at $500,000 or less, or in the case of rent supplement
assistance or other assistance for which the instrument of Federal
financing or assistance does not have an aggregate dollar amount, where
the assisted project is in the amount of $500,000 or less.''.
SEC. 9. MATCHING FUNDS.
The Act (40 U.S.C. 276a et seq.) (as amended by section 8) is
further amended by adding at the end thereof the following new section:
``Sec. 9. In the case of a grant or other instrument by which the
Federal Government provides to or shares with any State or subdivision
thereof funding of a construction, alteration, repair, rehabilitation,
reconstruction, or renovation project, any law requiring the payment of
prevailing wage rates as determined by the Secretary in accordance with
this Act shall apply to that project only if at least 25 percent of the
costs of that project are paid by the Federal grant or instrument.''.
SEC. 10. VOLUNTARY CONTRIBUTION OF SERVICES.
(a) In General.--The Act (40 U.S.C. 276a et seq.) (as amended by
sections 8 and 9) is further amended by adding at the end thereof the
following new section:
``Sec. 10. The provisions of section 1 of this Act relating to the
wages required to be paid shall not apply to any individual--
``(1) who contributes services on a voluntary basis; and
``(2) who--
``(A) does not receive compensation for such
services; or
``(B) is paid expenses, reasonable benefits, or a
nominal fee for such services; and
``(3) whose contribution of such services is specifically
approved in advance by the contracting or assisting agency, the
recipient of Federal financing or assistance, or other entity
which awarded the contract or instrument providing Federal
financing or assistance, which is the entity in the closest
relation to the work to be performed; and
``(4) whose contribution of such services is not for the
benefit or competitive advantage of any contractor otherwise
performing or seeking to perform work on the same project.''.
(b) Technical Amendment.--Subsection (b) of section 3 (40 U.S.C.
276a-2) is amended by inserting ``(except as provided for in section 10
of this Act)'' after ``agreed to accept less than the required rate of
wages''.
SEC. 11. TECHNICAL AMENDMENTS.
(a) Short Title.--The Act (40 U.S.C. 276a et seq.) is amended--
(1) by redesignating sections 1 through 6 as sections 2
through 7, respectively; and
(2) by inserting before section 2, as so redesignated, the
following new section:
``Section 1. This Act may be cited as the `Davis-Bacon Act'.''.
(b) Payment of Wages by Comptroller General.--Subsection (a) of
section 4, as so redesignated, (40 U.S.C. 276a-2) is amended by
striking out the first sentence and inserting in lieu thereof the
following new sentences: ``In accordance with regulations issued by the
Secretary pursuant to Reorganization Plan Numbered 14 of 1950 (64 Stat.
1267), any wages found to be due to laborers, mechanics, and helpers
pursuant to this Act shall be paid directly to such laborers,
mechanics, and helpers from any accrued payments withheld under the
terms of the contract. Any sums due laborers, mechanics, or helpers
under section 1, not paid because of inability to do so within 3 years,
shall revert to or be deposited into the Treasury of the United States.
The Administrator of General Services shall distribute a list to all
departments of the Government giving the names of persons or firms that
the Secretary has found to have disregarded their obligations to
employees and subcontractors.''.
SEC. 12. COPELAND ACT PAPERWORK REDUCTION AMENDMENT.
(a) Statements.--Section 2 of the Act of June 13, 1934, entitled
``An Act to effectuate the purpose of certain statutes concerning rates
of pay for labor, by making it unlawful to prevent anyone from
receiving the compensation contracted for thereunder, and for other
purposes'' (40 U.S.C. 276c) (commonly referred to as the ``Copeland
Act'') is amended by striking out ``shall furnish weekly a statement
with respect to the wages paid each employee during the preceding
week'' and inserting in lieu thereof ``shall furnish, at the beginning,
midpoint, and conclusion of the period covered by the contract, a
statement with respect to the weekly wages paid each employee during
such period, except that such statement shall be furnished no less
often than every 3 months''.
(b) Application.--Section 2 of such Act (40 U.S.C. 276c) is further
amended by adding at the end thereof the following new sentence: ``This
section shall not apply to any contract or project that is exempted by
its size from the application of the Davis-Bacon Act.''.
SEC. 13. REPORTS REQUIRED.
Beginning 1 year after the effective date of the amendments made by
this Act, and at intervals of 1 year thereafter, the Secretary of Labor
and the Comptroller General of the United States shall each prepare and
submit to the appropriate committees of Congress a report describing
the results of a review of the implementation, enforcement,
administration, impact on local wages, and impact on local and national
economies of the Act of March 3, 1931 (the Davis-Bacon Act), the Act of
June 13, 1934 (the Copeland Act), and the amendments made by this Act
during the preceding 12-month period, including recommendations for
such further legislation as may be appropriate.
SEC. 14. EFFECTIVE DATE.
The amendments made by this Act shall take effect on the date that
is 60 days after the date of enactment of this Act but shall not affect
any contract in existence on that date or made pursuant to invitations
for bids outstanding on that date.
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