UNITED STATES OF AMERICA June 24, 1964. June 26, 1964. August 4, 1964. August 5, 1964. Text of H.R. 7075. Statement of Borth, Robert T., representing the Chamber of Commerce of the Haggerty, C. J., president, Building and Construction Trades Depart- Naumann, William, representing the Associated General Contractors of Weiner, Leon, vice president and secretary, National Association of Donahue, Charles, Solicitor of Labor: List of area decisions.. Statement of....... Dunn, William E., executive director, the Associated General Con- Haggerty, C. J., president, Building and Construction Trades Depart- National Electrical Contractors Association, statement of.. 60 130 Robbins, Paul H., P.E., executive director, National Society of 132 Rush, Norman D., Home Builders Association of Central California, 129 154 AMENDMENTS TO DAVIS-BACON ACT WEDNESDAY, JANUARY 22, 1964 HOUSE OF REPRESENTATIVES, OF THE COMMITTEE ON EDUCATION AND LABOR, Washington, D.C. The subcommittee met at 10 a.m., pursuant to call, in room 429, Cannon House Office Building, Hon. James Roosevelt (chairman of the subcommittee) presiding. Present: Representatives Roosevelt, Pucinski, Hawkins, Ayres, Goodell, and Bell. Present also: Jay Foreman, subcommittee counsel; Adrienne Fields, subcommittee clerk; and Ray Rodgers, minority counsel. (Text of H.R. 7075 follows:) [H.R. 7075, 88th Cong., 1st sess.] A BILL To amend the Davis-Bacon Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first section of the Act 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", approved March 3, 1931, as amended, is amended to read as follows: "That this Act shall apply to every contract in excess of $2,000, (1) to which the United States or the District of Columbia is a party, for construction, alteration, and/or repair, including painting and decorating, of public buildings or public works of the United States or the District of Columbia within the geographical limits of the States of the Union or the District of Columbia, and which requires or involves the employment of laborers or mechanics or (2) which is a contract for construction, alteration, and/or repair, including painting and decorating, of a building or work which is financed in whole or in part by loans or grants from, or loans insured or guaranteed by, the United States or any agency or instrumentality thereof under any provision of law enacted after the enactment of the Act entitled 'An Act to amend the Davis-Bacon Act', and such contract requires or involves the employment of laborers or mechanics. "SEC. 2. (a) The advertised specifications for every contract to which this Act applies shall contain a provision stating the minimum wages to be paid various classes of laborers and mechanics which shall be based upon the wages determined by the Secretary to be prevailing for corresponding classes of laborers and/or mechanics employed on projects which are of a character similar to the contract work in the city, town, village, or other civil 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, except that if there are no such projects within such civil subdivision, the Secretary may consider a larger locality to the extent it may be necessary to do so in order to base his determination on substantial evidence. "(b) For the purposes of subsection (a)— "(1) where the work involved in the contract is only a portion of a larger project, the Secretary may consider the rates paid for such work on other similar larger projects, where to do so would conform to local practice, "(2) a wage is 'prevailing' within the meaning of that subsection when it is the most predominant wage and is paid to at least 30 per centum of the laborers and mechanics in the class involved, but in the event the same wage is not paid to at least 30 percentum, the average wage paid such laborers and mechanics shall be deemed the 'prevailing' wage. "(3) in determining whether projects are 'similar', the Secretary shall consider the following factors: "(A) type of construction, alteration, or repair involved in the project; "(B) date of completion; "(C) and any other factors that the Secretary may deem appropriate. "SEC. 3. Every contract to which this Act applies shall contain a stipulation that the contractor or his subcontractor shall pay all mechanics and laborers employed directly upon the site of the project (or at a temporary location in the general area of the project, performing work required by the contract), unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account, the full amounts accrued at time of payment, computed at wage rates not less than those stated in the advertised specifications, regardless of any contractual relationship which may be alleged to exist between the contractor or subcontractor and such laborers and mechanics. "SEC. 4. Every contract to which this Act applies shall contain a stipulation that the scale of wages to be paid under this Act shall be posted by the contractor in a prominent and easily accessible place at the site of the work. "SEC. 5. Every contract to which this Act applies shall also contain a stipulation that there may be withheld from the contractor so much of accrued payments as may be considered necessary by the contracting officer to pay to laborers and mechanics employed by the contractor or any subcontractor on the work the difference between the rates of wages required by the contract to be paid laborers and mechanics on the work and the rates of wages received by such laborers and mechanics and not refunded to the contractor, subcontractors, or their agents." SEC. 2. Section 2 of such Act is amended by striking out "SEC. 2." and inserting in lieu thereof "SEC. 6.". SEC. 3. Subsection (a) of section 3 of such Act is amended to read as follows: "SEC. 7. (a) The Comptroller General of the United States is hereby authorized and directed to pay directly to laborers and mechanics from accrued payments withheld under the terms of the contract any wages found by the contracting agency to be due laborers and mechanics pursuant to this Act. The findings of underpayments by contracting agencies shall be subject to review by the Secretary. The Comptroller General is further authorized and directed to distribute a list to all departments of the Government giving the names of persons or firms whom the Secretary has found to have disregarded their obligations to laborers and mechanics. No contract shall be awarded to the persons or firms appearing on this list or to any firm, corporation, partnership, or association in which such persons or firms have an interest for such period, not exceeding three years, as the Secretary may prescribe." SEC. 4. Section 4 of such Act is amended by striking out "SEC. 4." and inserting in lieu thereof "SEC. 8.". SEC. 5. Section 5 of such Act is amended to read as follows: "SEC. 9. Papers and documents in the possession of the Department of Labor containing information which furnishes the basis for any wage determination shall be made reasonably available to interested persons. Papers, documents, and information which the Secretary is requested to keep confidential by the person furnishing such data shall not be revealed, but summaries may be prepared therefrom by the Department and furnished to interested persons, to the extent this can be done without revealing information the Secretary is requested to keep confidential.' SEC. 6. Secion 6 of such Act is amended by striking out "SEC. 6." and inserting in lieu thereof "SEC. 10.”. SEC. 7. Such Act is further amended by striking out section 7 thereof and inserting in lieu thereof the following: "SEC. 11. (a) An agency is hereby created to be known as the Davis-Bacon Appeals Board (hereinafter referred to as the 'Board'), which shall be composed of three members who shall be appointed by the President, by and with the advice and consent of the Senate, from among persons having special competence in the matters over which the Board has jurisdiction. Such Board shall be in the Department of Labor for administrative purposes. "(b) The terms of office of members of the Board shall be three years, except that the terms of office of the members first appointed shall commence on the effective date of this section and shall expire one at the end of one year, one at the end of two years, and one at the end of three years, as designated by the President at the time of appointment. A member appointed to fill a vacancy caused by the death, resignation, or removal of a member. prior to the expiration of the term for which he was appointed, shall be appointed only for the remainder of such unexpired term. The members of the Board may be removed by the President only for inefficiency, neglect of duty, or malfeasance in office. "(c) Each member of the Board shall receive compensation at the rate of $20,000 per annum, except that the Chairman shall receive compensation at the rate of $20,500 per annum. "(d) The principal office of the Board shall be in the District of Columbia. Whenever the Board deems that the convenience of the public or of the parties may be promoted, or delay or expense may be minimized, it may hold hearings or conduct other proceedings at any other place. "(e) The Board shall, without regard to the civil service laws, appoint and prescribe the duties of a Secretary of the Board and such legal counsel as it deems necessary. Subject to the civil service laws, the Board shall appoint such other employees as it deems necessary in exercising its powers and duties. The compensation of all employees appointed by the Board shall be fixed in accordance with the Classification Act of 1949, as amended. "(f) Two members of the Board shall constitute a quorum, and official actions of the Board can be taken only on the affirmative vote of at least two members. Every official act of the Board shall be entered of record, and its hearings and records thereof shall be open to the public. "(g) The Board is authorized to make such rules as are necessary for the orderly transaction of its proceedings, which shall include a requirement that no hearings shall be held without notice. Such rules shall be made after consultation with the Secretary, and after giving due consideration to his recommendations. "(h) Subject to the provisions of subsection (j), any interested person may obtain a review by the Board of "(1) any determination of the Secretary under this Act, "(2) any determination of prevailing wages made by the Secretary for the purposes of any of the statutes referred to in Reorganization Plan Numbered 14 of 1950, the Water Pollution Control Act, or the College Housing Act of 1950, or "(3) any determination that a debarment should occur made by the Secretary or by a Federal officer or agency, with the concurrence of the Secretary, under rules promulgated pursuant to Reorganization Plan Numbered 14 of 1950, if such interested person has, within such period as the Board may prescribe, petitioned the Secretary to make a determination and the Secretary has "(A) declined in writing to make such a redetermination, "(B) made such a redetermination, failed to modify the original determination in a manner satisfactory to the petitioner, or "(C) failed to make such a redetermination within such period after the petition therefor as the Board may prescribe, and if such interested person files a petition for such review with the Board within such period as the Board may prescribe after the determination (including any redetermination) sought to be reviewed is made. "(i) Such review shall be had on the record made before the Secretary. In such proceeding the burden of proof shall be on the petitioner, and no objection that has not been urged before the Secretary shall be considered by the Board, unless the failure or neglect to urge such objection shall be excused because of extraordinary circumstances. The Board shall decide questions of law. The findings of the Secretary with respect to questions of fact if supported by substantial evidence on the record considered as a whole shall be conclusive, but the Board, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous determination (or redetermination), and shall certify to the Board the record of such further proceedings. Such new or modified findings shall likewise be considered con |