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Committee backs extending prevailing wage to projects built under industrial revenue bonds
Summary
House Bill 6 would require projects using industrial revenue bonds (IRBs) to comply with the Public Works Minimum Wage Act. The committee voted 6‑4 to give the bill a do‑pass recommendation after testimony from economists, trades unions and contractors.
The Labor, Veterans and Military Affairs Committee recommended House Bill 6 do pass by a 6‑4 vote. The bill would require that projects financed through Industrial Revenue Bonds (IRBs)—a widely used economic development tool that can include tax abatements—comply with New Mexico’s Public Works Minimum Wage Act and the state prevailing wage rules for public projects above $60,000.
Supporters, including unions and construction trade groups, told the committee prevailing‑wage requirements preserve job quality, reduce workplace injuries and help build apprenticeship pipelines in the state. “This bill will provide apprenticeship opportunities for workers and help keep our youth here in our state,” said Mark Trujillo of IBEW Local 611. Economist Kelly O'Donnell, who analyzed the bill for sponsors, said academic studies of state prevailing‑wage laws generally show no net increase in total construction costs once productivity and lower injury rates are accounted for.
Committee members asked how IRBs work, how the $60,000 prevailing‑wage threshold is applied and whether the measure would discourage investment in rural areas. Sponsors said IRBs are negotiated public‑private agreements that often include tax abatements and that the bill targets projects large enough to be treated as public‑works‑scale builds. Witnesses provided examples of current prevailing wages; for example a drywall finisher at one listed rate was cited at about $29.60 per hour with $9.63 per hour in fringe benefits (rates vary by craft and region and are set by the Department of Workforce Solutions).
Votes at a glance: motion to do pass by Representative Ortiz, seconded by Vice Chair Eleanor Chavez; recorded roll call 6 yes, 4 no. Yes: Anaya, Garcia, Johnson, Ortiz, Torres Velasquez, Chairwoman Roybal Caballero. No: Hall, Mejia, Reeb, Terrazas. The committee record shows labor and apprenticeship organizations were strongly in favor; county officials and chambers of commerce had not taken statewide positions on the bill in committee testimony.
The bill would take effect on the normal statutory schedule if enacted and would apply to IRB projects initiated after the effective date. Committee sponsors said they will continue stakeholder outreach to counties and chambers to address rural‑project concerns.
End: The committee gave the bill a do‑pass recommendation; sponsors signaled intent to work with counties and business groups on implementation details before floor action.
