COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



LR No.: 0520-01

Bill No.: SB 333

Subject: Department of Labor and Industrial Relations: Prevailing Wage, Counties

Type: Original

Date: January 31, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
General Revenue $0 to Unknown $0 to Unknown $0 to Unknown
Total Estimated

Net Effect on

General Revenue

Fund

$0 to Unknown $0 to Unknown $0 to Unknown



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government Unknown Unknown Unknown




FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Labor and Industrial Relations assume if none of the applicable counties would vote to exempt from the Prevailing Wage Law, then there would be no cost nor savings to the General Revenue Fund for the Division of Labor Standards.



Officials assume that if an applicable county would vote to exempt themselves from the Prevailing Wage Law would result in an "unknown savings" to the General Revenue Fund. Officials assume there would be fewer prevailing wage complaints filed thereby requiring less work by the Division. Officials stated they had no way to estimate the number of counties that might exempt themselves if this legislation were to pass.



Oversight will show fiscal impact to DOL as $0 to Unknown.



Oversight assumes the proposed legislation could allow local governments to reduce labor costs for capital projects. Oversight will show savings to certain local governments as a positive unknown.















FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
GENERAL REVENUE FUND
Savings to Department of Labor and Industrial Relations
administrative impact due to reduction of workload. $0 to Unknown $0 to Unknown $0 to Unknown
TOTAL NET EFFECT TO GENERAL REVENUE FUND



$0 to Unknown


$0 to Unknown


$0 to Unknown


FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
CERTAIN LOCAL GOVERNMENTS
Savings to Certain Local Governments
Labor Costs Unknown Unknown Unknown

FISCAL IMPACT - Small Business



Small businesses in the construction industry could be affected by this proposal..



DESCRIPTION



This act allows counties of the third classification and any political subdivisions within such counties, upon voter approval, to exempt themselves from the state prevailing wage law. Majority approval by the governing body of the political subdivision or a petition by the voters signed by 10% of all registered voters in the political subdivision is required before the proposal can be submitted to voters. This act does not apply to construction projects involving federal funds. The act contains suggested ballot language.



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 and Industrial Relations



NOT RESPONDING



None







































Mickey Wilson, CPA

Director

January 31, 2003