HB 1574

AN ACT relative to a living wage act which establishes a living wage requirement for state contracts and awards and state employees, and establishing a study committee on living wage and family economic security.

SPONSORS: Rep. Garrish, Hills 37; Rep. Burling, Sull 1; Rep. Mears, Coos 7; Sen. Wheeler, Dist 21

This bill requires all state contracts and all grants and loans to meet requirements for living wage levels for person employed by the contracted or awarded entity and requires state employers to meet the living wage requirement.

The bill also establishes a study committee on living wage and family economic security.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

I. The close of this millennium has seen stronger national and state economies with more jobs, lower unemployment, and slightly higher per capita income, yet vast numbers of working families in New Hampshire are being left behind as the new millennium approaches. Study after study, as well as conversations with New Hampshire workers, show that the income of middle income families rose only slightly over the last 20 years and that those at the lowest end of the economic spectrum experienced actual decreases in income.

II. Unemployment, income, and consumer spending statistics do not reflect adequately the numbers of workers and working parents who are underemployed or working multiple jobs; do not reflect the rising numbers of part-time, per diem, temporary and contingent workers; do not reflect the rising numbers of jobs without benefits; do not reflect workers who are underinsured or uninsured for health coverage; and, do not reflect the rising costs of housing, child care, elder care, and transportation.

(a) New Hampshire's hard working families have long been the backbone of New Hampshire's economy. The overwhelming majority of adults, whether from one or two-parent households, are working. Despite the great number of men and women in the workforce, there are significant numbers of New Hampshire workers who are not able to meet their most basic family needs. As our economy has shifted to a more service industry base, more workers find themselves without job security, employment benefits, or even adequate wages.

(b) Welfare reform has moved many New Hampshire recipients off public assistance into the workplace, yet far too many have entered a growing class of "working poor" who are unable to maintain a quality of life for their families because of incomes that are enough to get them off welfare but are not sufficient to provide adequate child care, health care, food, housing, and transportation.

(c) New Hampshire's growing service industry does not adequately provide opportunity for job advancement and on-going education and training.

(d) Strong secure families contribute to quality community life and are the foundation of a strong secure economy for New Hampshire.

IV. The purpose of this act is to assure employees of vendors who contract with or receive grants or loans from the state earn at least an hourly wage that is sufficient to live at or above the federal poverty level. This act is intended to maximize access for low and moderate income workers to the jobs created, maintained, or subsidized through state contracts, grants or loans. Creative solutions must be found that meet the needs of New Hampshire's working families within this new economy and that ensure family economic security. The cornerstones of family economic security must include access to attainable quality child care, housing, health care, transportation, opportunities for educational, employment and economic advancement, and community services that meet the needs of all family members, from children to the elderly and disabled.

I. In addition to any other requirement in law, whenever a person competes for or applies for a state contract, grant, or loan from or through a state program and the person to whom the contract, grant, or loan is awarded has employees related to the state program, that person shall submit an affidavit attesting to the amount of wages paid to employees and that such amount meets the living wage requirement of this section.

(2) An hourly rate, or equivalent, of $7.25, with health benefits. Health benefits shall consist of the equivalent payment of at least $1.25 per hour towards family medical insurance for employees. Proof of health insurance shall be submitted within 10 days of any award of a contract, grant, or loan pursuant to a state program.

(b) The living wage rates shall be adjusted annually in accordance with changes in the Consumer Price Index for All Urban Consumers (CPI-U) as determined by the federal Bureau of Labor Statistics.

III. An applicant who has been awarded a contract, grant, or loan based in part on the affidavit submitted shall have been deemed to be in agreement that the living wage requirement is part of the contract, grant, or loan.

IV. Any applicant competing for a state contract, grant, or loan shall also state in the affidavit:

(a) The amount of personnel staffing services or temporary services utilized by the applicant. Preference shall be given to applicants with the least amount of such services, provided that all competitors or applicants are otherwise equally qualified.

(b) That the essential services and labor provided by the applicant pursuant to the contract, grant, or loan shall be provided efficiently and without interruption. Because it is necessary to avoid the potential for disruption by labor disputes, preference shall be given to applicants that engage in responsible labor relations. Responsible labor relations are defined as neutrality on union organizing, providing a complete and accurate list of names and addresses of employees, reasonable access to employees and facilities during non-working periods, voluntary recognition based on a card check demonstrating that a union represents a majority of employees, and binding arbitration.

V. The commissioner, or designee, shall be responsible for verifying compliance with the requirements of this section. The attorney general may bring an action against a person who violates the contract, grant, or loan agreement provisions regarding a living wage. A person found after notice and a hearing to have breached the contract, grant, or loan agreement provisions may be:

(a) Fined in the amount of up to $500 per week per employee concerned in the violation of failure to pay the living wage.

(d) Declared ineligible for 3 years for an award of a contract, grant, or loan from any other state program.

(a) An applicant which employs fewer than 5 employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year.

(b) Any employee who is a trainee in a job training program for the period of such training.

(c) Any employee who is 21 years of age or younger, employed by a nonprofit corporation for after school or summer employment as a trainee for a period not longer than 90 days.

VII. For employees included in a collective bargaining agreement, where the requirements of the collective bargaining agreement are greater than the requirements under this section, the collective bargaining agreement shall prevail.

3 New Section; State Employees; Living Wage. Amend RSA 99 by inserting after section 9 the following new section:

99:9-a Compliance with Living Wage. No employee of the state shall be paid at a rate or equivalent which is less than the rate of living wage established under RSA 21-I:22-e, II.

I. There is established a committee to study living wage and family economic security.

(1) Four members of the house of representatives, one each from the children and family law committee, the education committee, the health, human services and elderly affairs committee, and the labor, industrial and rehabilitative services committee, appointed by the speaker of the house.

(b) Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

III. The duties of the committee shall be to recommend creative solutions and/or policies that meet the needs of New Hampshire's working families and ensure family economic security. This shall include, but not be limited to studying the relationship of the following: living wages for workers; access to affordable quality child care, health care, housing, and transportation; welfare to work programs; opportunities for educational, employment, and economic advancement; and community services that meet the needs of all family members from children to the elderly and disabled. The committee may seek input from any department, agency, organization, or expert as necessary.

IV. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Four members of the committee shall constitute a quorum.

V. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2000.

The Department of Administrative Services indicates this bill will increase state expenditures by an indeterminable amount in FY 2001 and each year thereafter. There is no fiscal impact on state, county, and local revenue or county and local expenditures.

The Department states that the increase in state expenditures could not be determined, but the Department expects the cost of goods and services purchased by the State to increase by 28%. This increase represents the percent increase from the present minimum federal wage scale, plus benefits, compared to the living wage rate of $8.50 identified in this bill. The Department assumed that the increase would begin in FY 2001.