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Committee adopts technical amendments to create BOLI expenses fund, sends HB 4027 to Ways and Means
Summary
The committee adopted a dash-7 amendment to HB 4027, establishing a Bureau of Labor and Industries Expenses Fund managed by DCBS and authorizing assessments; members debated guardrails and the amendment's technical refinements and adopted it before referring the bill to Ways and Means.
The House Committee on Labor and Workforce Development on Feb. 16 adopted technical refinements to House Bill 4027 that establish a Bureau of Labor and Industries Expenses Fund in the State Treasury and authorize the Department of Consumer and Business Services (DCBS) to manage the fund under an interagency agreement.
Erin, committee staff, told the panel the dash-7 amendment permits the director to set and collect assessments from employers and employees to deposit into the fund and specifies minimum sufficient funding. She highlighted changes carried in the dash-7 that clarify DCBS may reimburse actual administrative expenses incurred for managing the fund and assessment of rates, and noted a section that raises the maximum fee the commissioner may charge a public agency awarding public works contracts from 7,500 to 1,212,500.
Members expressed concern about the scope and whether the dash-7 required an additional public hearing. Representative Bunch and others pressed for stakeholder input; staff and lawmakers said the dash-7 largely reflects technical refinements to language previously discussed in public hearings and is aimed at operationalizing the funding mechanism. Josh Nasby of the Bureau of Labor and Industries walked members through specific edits, including removing references to investment proceeds, making funds continuously appropriated to DCBS, and broadening the purposes for which BOLI may use the funds rather than tying them to specific positions. He also said a $4,250,000 deposit on June 30, 2029 remains in the draft without an inflation adjustment.
Jessica Gentina Viatori, deputy labor commissioner, clarified the first tranche of staff funded by the initial deposit would not include proactive investigative staff or prevailing-wage staff. After discussion, the committee adopted the dash-7 amendment on roll call and voted to advance HB 4027 as amended with a due-pass recommendation and to refer it to Ways and Means by prior reference.
Lawmakers said the amendment is intended to solve BOLI’s long-term funding challenges while preserving guardrails on position costs.
