Committee backs expanding prevailing-wage rules to off‑site fabricators

The House Labor, Veterans and Military Affairs Committee voted to recommend passage of Committee Substitute for Senate Bill 59, which would amend the Public Works Minimum Wage Act to require prevailing wages and fringe benefits for workers who fabricate custom components off‑site for public works projects, the committee recorded in a roll call during a meeting (date not specified).

The bill’s sponsors and union witnesses said the measure closes a loophole that lets developers shift fabrication out of state or to low‑wage facilities, while industry groups and the state chamber warned it could raise project costs and complicate procurement. The committee approved a do‑pass recommendation in a roll call that recorded six yes votes and three no votes; the transcript did not record votes for two members.

Vice Chair Chavez introduced the committee substitute and asked an expert witness to explain the change. Isaiah Zemke, business manager and financial secretary‑treasurer of Sheet Metal Workers Local 49, told the committee, "What this measure aims to do is require prevailing wages in fabrication shops, for contractors bidding public works projects." Zemke described the bill as targeting custom off‑site fabrication that supplies public works contracts.

Opponents, including construction trade associations and the New Mexico Chamber of Commerce, argued the work is manufacturing rather than construction and said extending prevailing wage requirements would impose administrative burdens and raise costs. Carla Kugler of Associated Builders and Contractors said, "prefabrication ... falls under manufacturing," and that many fabricators "do not have contractors licenses." Kelly Fajardo, speaking for the Associated General Contractors, warned the bill "expands the definition of site of the project to include off station, setting a precedent for broader interpretations in future legislation," and said the change could encourage sourcing outside New Mexico.

Supporters included multiple trade unions and workers who said the change would protect local wages and quality. Ashley Long, president and directing business representative of the International Association of Machinists and Aerospace Workers, said, "When New Mexico hardworking New Mexicans do better, all of New Mexico does better." Stephanie Mays, a registered lobbyist for the New Mexico Building and Construction Trades Council and the International Brotherhood of Electrical Workers Local 611, told the committee the bill would prevent developers from "bypass[ing] prevailing wage requirements" by relocating substantial portions of projects outside the state and disadvantaging local workers.

Several individual workers and contractors described quality and workforce concerns. Eric Corona, a licensed sheet metal fabricator and installer, and Charles Lees, a certified test and balance technician, said out‑of‑state, lower‑wage fabricators have undercut local shops and affected workmanship. Mylan Wachier, who identified himself as working at a nonunion shop, said passing the bill would directly benefit his family and colleagues.

Sponsor Senator Michael Padilla defended the bill and addressed administrative concerns, saying a "certified payroll is really all you need to submit in order to make sure that this is all handled appropriately," and noting he had letters of support from several New Mexico contractors. The committee’s subject‑matter expert clarified the measure "only includes, ductwork, HVAC ductwork that goes into the building." Representative Terrazas raised enforcement and supply‑chain concerns, noting regional fabrication capacity and project timelines could complicate compliance and potentially delay projects.

After questions and public testimony, Representative Anaya moved that the committee give the bill a do‑pass recommendation; a second was recorded but the person who seconded was not named on the transcript. The committee took a roll call and recommended passage. The roll call recorded the following votes: Yes — Representative Anaya; Representative Garcia; Representative Johnson; Representative Torres Velasquez; Vice Chair Chavez; Chairwoman Roybal Caballero. No — Representative Hall; Representative Mejia; Representative Terrazas. The transcript did not record votes from Representative Ortiz and Representative Reed.

The committee action advances the bill to the next stage of the legislative process; the transcript does not record subsequent scheduling or a date for floor consideration.

(Quotes and attributions are drawn directly from the committee transcript.)