A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered 40.1-28.13 through 40.1-28.16, relating to prevailing wage rate; underground infrastructure work; public service companies.
HB260 creates a new article in Title 40.1 of the Code of Virginia establishing prevailing wage requirements for certain underground infrastructure work performed for public service companies. For covered projects, public service companies must ensure that contracts require bidders, contractors, and subcontractors to pay workers at least the prevailing wage rate, which is tied to wage determinations used under the federal Davis-Bacon framework. The bill defines “underground infrastructure work” broadly to include construction, reconstruction, demolition, alteration, or repair of underground systems used for distribution, conveyance, transmission, diversion, collection, treatment, or storage, but excludes maintenance work.
The bill also requires contractors and subcontractors to post wage information at the work site, itemize wages and fringe benefits, and maintain detailed payroll and classification records for six years. Those records must be made available to the Department upon request. The prevailing wage requirements would not apply to contracts of $250,000 or less, and the article would apply only to contracts entered into, amended, or modified on or after July 1, 2027. The bill excludes communications service providers and certain entities organized under Chapter 9.1 of Title 56 from the definition of public service company.
HB260 would add new labor standards to Virginia law specifically for underground infrastructure projects tied to public service companies, effectively extending prevailing wage obligations into a sector not previously covered by this article. It would impose new contracting, posting, and recordkeeping duties on public service companies, contractors, and subcontractors, while giving the Commissioner authority to determine the applicable wage and benefit rates using prevailing wage determinations. The bill would also create a compliance framework for enforcement through documentation and wage disclosure requirements.
The bill appears to have received strong support in committee, as reflected by its 15-0 vote to be continued to the next session in Finance and Appropriations. The available record does not include committee transcript discussion, so there is no direct evidence of floor debate or detailed public testimony in the materials provided. The unanimous committee vote suggests broad agreement on advancing the measure, at least procedurally, though the continuation indicates it was not finalized in the current session.
The main policy issue likely centers on whether prevailing wage mandates should apply to underground infrastructure work performed for public service companies, since the bill would raise labor-cost requirements on covered projects. Potential points of contention include the use of Davis-Bacon-based wage determinations, the administrative burden of recordkeeping and wage posting, and the effect on project costs and utility rates. The bill’s exemptions for smaller contracts, communications providers, and certain entities suggest lawmakers were trying to narrow the scope, which may reflect concerns from affected industries or about implementation costs.