SB 0483 - Fiscal Note

Fiscal Note - SB 0483 - County Commissions Determine Prevailing Wage

L.R. NO.  2163-01
BILL NO.  SB 483
SUBJECT:  Labor, Employees and Employers
TYPE:     Original
DATE:     January 11, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Various                    UNKNOWN             UNKNOWN           UNKNOWN

Total Estimated
Net Effect on All
State Funds                UNKNOWN             UNKNOWN           UNKNOWN
  * Savings expected in an unknown amount.



                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government*        (UNKNOWN)           (UNKNOWN)         (UNKNOWN)

*Cost expected in an unknown amount.

                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Conservation (MDC) stated the proposal could
save the department an unknown amount if  the county commissions set lower
prevailing wage rates. This would be offset by an unknown increase in
administrative cost from dealing with multiple counties instead of one
department.

Officials from the Department of Highway and Transportation (DHT) stated that
this proposal would result in lower prevailing wage levels and thus would
lower cost in an unknown amount to all local and state entities.

Officials from the Department of Labor (DOL) - Division of Labor Standards
and the Labor and Industrial Relations Commission stated this proposal would
have an unknown fiscal impact on their agencies.

Officials from the Office of Administration (OA) -Division of Design and
Construction and the Department of Corrections (DOC) stated that passage of
this legislation will have no fiscal impact on their department.

Officials from the Department of Economic Development (DED), St. Louis
County, Jackson County, Cole County did not respond to our fiscal impact
request.

FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

Various Funds
  Savings                        Unknown   Unknown   Unknown


FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

Administrative Costs             Unknown   Unknown   Unknown


DESCRIPTION

This act would change the prevailing wage law on  public works by allowing
counties rather than the Department of  Labor and Industrial Relations
(Department) to establish the prevailing wage for public works projects. A
certified copy of the initial prevailing wage determinations of each county
commission would be filed with the  Secretary of State and the Department.
Each county commission  would conduct hearings before establishing the
prevailing wage  for those public works projects.  This hearing process would
be subject to review by the Circuit Court, but not by the Joint  Committee on
Administrative Rules.  Currently, the prevailing wage is determined by the
Department.  The Department would retain responsibility for determining  the
prevailing wage for public works projects for the Missouri  State Highways
and Transportation Department.  This hearing process is subject to review by
the Joint Committee on Administrative Rules.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Department of Labor
Department of Highway and Transportation
Office of Administration
Department of Corrections
Department of Conservation

Not Responding: Department of Economic Development, St. Louis County, Jackson
County, Cole County