Rep. Josephson introduces HB 260 to speed enforcement of trade certificates and hold contractors accountable for unpaid wages

Representative Andy Josephson introduced a labor and commerce‑amended version of House Bill 260 to the House Finance Committee on May 11, 2026, saying the measure targets contractor liability in two areas: enforcement of electrician and plumber certificates of fitness (COFs) and unpaid construction wages.

Josephson said the bill would remove the current requirement that COF violations be pursued through criminal prosecutions and instead allow administrative enforcement with an increased fine (from the existing $500 fine for a class B misdemeanor to a proposed $1,000 administrative penalty) that inspectors could issue on the spot. "We're moving the penalty for working in those two trades without a certificate of fitness to an administrative fine, which is faster, and increase the fine to $1,000," Josephson said. He said the change is intended to improve public‑safety compliance and create a fairer playing field for licensed tradespeople.

Alden Zilhuber, business manager for UA Local 262 Plumbers and Pipefitters, testified in support and described field experience under the current statute as ineffective enforcement. Zilhuber said COF holders complete multi‑year training and continuing education and that the present cease‑and‑desist practice is a "paper tiger" because enforcement requires Department of Law action for misdemeanor charges. Zilhuber supported modeling COF enforcement after the contractor‑licensing statute so inspectors can issue administrative fines directly.

On the bill's second major component, Josephson explained provisions addressing unpaid construction wages—sometimes characterized in testimony as "wage theft." The bill would require more information sharing up and down the contracting chain (payroll records and receipts) and make general contractors jointly and severally liable for unpaid wages when subcontractors fail to pay. Josephson and invited testifiers described a 21‑day opportunity to exchange information and cure alleged wage shortfalls before a worker can sue, a feature the sponsor said is intended to expedite remedies and reduce litigation delays.

Boris Greslin, policy director for the Western States Regional Council of Carpenters (calling in), told the committee that similar laws in other jurisdictions produced three outcomes: faster payment to cheated workers, greater industry compliance, and recovery of lost revenue for public services. He called wage theft "a business model" in some cases and said holding upstream actors accountable levels the playing field for responsible contractors. Committee members asked for comparative studies and evidence from jurisdictions that have used up‑the‑chain liability; Greslin offered to submit materials with the sponsor's permission.

Committee members pressed staff and witnesses for details. Questions included what triggers inspector enforcement, how code violations relate to COF infractions, and whether public owners are exempt from upstream liability. Zilhuber said COF violations commonly accompany code violations (examples cited included backflow and seismic bracing requirements) and that the proposed administrative enforcement would allow immediate fines instead of relying on criminal prosecutions. Greslin noted states handle public‑owner exemptions differently and said the Alaska version presented to the committee follows one available model.

No formal action or votes were taken; committee members requested additional materials, including side‑by‑side comparisons of current law versus the proposed text, and said they would return to more detailed questions at a later meeting. The sponsor and witnesses will provide follow‑up documents and studies on comparative experiences in other states.

The committee set HB 260 aside for further review; next procedural steps (possible amendments, hearings or votes) were not decided during the session and timing was "not specified."