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| SPONSOR: | Lyons | DATE TYPED: | 02/18/99 | HB | |||
| SHORT TITLE: | Limit Public Works Contracts | SB | 255 | ||||
| ANALYST: | Woodlee | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| NFI | NFI | Possible | (Cost Savings) | Recurring | Various |
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB 320, SB 338, SB 279
SOURCES OF INFORMATION
Department of Labor
General Services Department, Property Control Division
SUMMARY
Synopsis of Bill
Senate Bill 255 raises the threshold for projects for which public works minimum wage rates would apply from $20.0 to $200.0.
Significant Issues
Savings would be realized with a higher threshold in labor and administration costs. Projects under $200.0 would not be subject to public works minimum wage standards. According to the Department of Labor, raising the threshold would eliminate the issuance of minimum wage rate for approximately 50% of public works projects.
FISCAL IMPLICATIONS
There is no appropriation contained in this bill. Labor and administration costs to the state or any political subdivision of the state would be reduced by an undetermined amount, although the Department of Labor estimates savings at approximately $50,000.0.
ADMINISTRATIVE IMPLICATIONS
The Property Control Division indicates that administration savings would be realized from a reduced amount of time spent on project administration relative to wage rate payment issues. Lower wage rates for certain projects would result in labor cost savings.
CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP
Senate Bill 255 relates to Senate Bill 279 which amends the Subcontractors Fair Practices Act. Also, this bill relates to House Bill 320 and Senate Bill 338 which repeal the Public Works Minimum Wage Act.
OTHER SUBSTANTIVE ISSUES
The Department of Labor indicates there were 1,415 public works projects issued in fiscal year 1998. During this time, there were approximately 700 projects under $200.0.