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Relates to HB 558-Repeal Public Works Minimum Wage Act.

SOURCES OF INFORMATION

New Mexico Labor Department

General Services Department (GSD)

SUMMARY

Synopsis of Bill

House Bill 554 amends the Public Works Minimum Wage Act by excluding from its provisions local school districts, local school boards, post-secondary educational institutions and the governing boards of post-secondary institutions.

The Public Works Minimum Wage Act requires all construction contracts in excess of $20,000 to which the state or any of its political subdivisions is a party to pay laborers and mechanics the prevailing wage received by similar classes of labor in the state or locality.

Significant Issues

The Labor Department reports that educational projects account for about 15 percent of total public works construction dollars.

FISCAL IMPLICATIONS

There is no direct fiscal impact. The General Services Department reported another bill to eliminate the prevailing wage requirement would reduce construction costs by about 10 percent. No documentation as to how this would be achieved was provided, however.

ADMINISTRATIVE IMPLICATIONS

The Labor Department reports that passage of this bill would reduce the Labor and Industrial Division's workload. However, they say that the number of employees would not be reduced.

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