NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Conflicts with Senate Bill 255, Duplicates HB320

SOURCES OF INFORMATION

New Mexico State Highway & Transportation Department (SHTD)

SUMMARY

Synopsis of Bill

Senate Bill 338 would repeal the New Mexico Public Works Minimum Wage Act, NMSA 1978, Sections 13-4-10 through 13-4-17. This Act parallels the federal Davis-Bacon Act applicable to federal-aid public works projects.

Significant Issues

According to SHTD, the Davis-Bacon Act and the New Mexico Public Works Minimum Wage Act have been criticized by many as a holdover from the Great Depression, and allegedly serve to make public works projects unnecessarily expensive by requiring wages for skilled labor on such projects to be set artificially high rather than by market forces.

FISCAL IMPLICATIONS

The agency indicates that state-funded highway construction and other public works projects costs would be reduced.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill conflicts with Senate Bill 255 which would preserve, but amend, the Public Works Minimum Wage Act.

MW/njw