Montana Administrative Register Notice 24-17-334 No. 3   02/09/2018    
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                                    OF THE STATE OF MONTANA

In the matter of the amendment of ARM 24.17.127, pertaining to classification of workers for heavy construction services on public works projects





TO: All Concerned Persons


            1. On March 2, 2018, at 1:30 p.m., the Department of Labor and Industry (department) will hold a public hearing in the second floor conference room (conference rooms A and B), 1805 Prospect Avenue, 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 February 23, 2018, 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 201503, Helena, MT 59620-1503; telephone (406) 444-1741; fax (406) 444-7071; TDD (406) 444-0532; or e-mail MSmith3@mt.gov.


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



            (1) through (1)(f) remain the same.

            (g) The current heavy construction services rates are contained in the 2018 revised version of the "Montana Prevailing Wage Rates for Heavy Construction Services" publication.

            (h) through (3) remain the same.


AUTH: 2-4-307, 18-2-409, 18-2-431, 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


REASON:  There is reasonable necessity to update the “Montana Prevailing Wage Rates for Heavy Construction Services” publication following the area practice survey recently conducted by the department. The survey was conducted in order to determine the proper classification of work on water or wastewater treatment facilities. The proper classification of work performed is that classification found to be prevailing in local area practice. Specifically, the survey was used to determine whether the prevailing classification was pipefitters versus pipelayers (laborers), when the work involved joining large diameter (12" or larger) pipe with bolted flange connections, without added cutting, grinding, welding, or other fabrication of the pipe. In particular, work done at a location which would later be inside of a building was considered work inside a building structure for purposes of the classification. The department surveyed employers and applied the general guidance set out in the U.S. Department of Labor Prevailing Wage Resource Book to determine local area practice of those worker classifications. The survey included projects within the last three years and included the entire state, because there is only one district for purposes of heavy construction. The survey showed that the prevailing classification is pipefitter for this type of work. The department is incorporating the results of the survey into the publication's notes concerning classification of work.    


            4. A copy of the proposed revised 2018 publication is available and can be accessed online at: http://erd.dli.mt.gov/labor-standards.


            5. A printed version of the proposed revised 2018 publication is also available by contacting Mike Smith at the address and e-mail listed in paragraph 2 of this notice.


            6. 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 1503, Helena, MT 59620-1503; fax (406) 444-7071; or e-mailed to MSmith3@mt.gov, and must be received no later than 5:00 p.m., March 9, 2018.


            7. 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 published in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official text of the notice and the electronic version of the notice, only the official 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.


            8. 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, 1315 E. 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.


            9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


            10. With regard to the requirements of 2-4-111, MCA, the department has determined that the proposed amendment applies to the class of businesses that are plumbing, heating, or mechanical contractors that engage in heavy construction work. The department has determined, through its area practice survey that of that class, those establishments which constitute a small business (as defined in 2-4-102, MCA) will not be significantly or directly affected by the proposed amendment.


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



/s/ Mark Cadwallader                       /s/ Galen Hollenbaugh                  

Mark Cadwallader                            Galen Hollenbaugh, Commissioner

Alternate Rule Reviewer                  DEPARTMENT OF LABOR AND INDUSTRY



Certified to the Secretary of State January 30, 2018.



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