COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0642-05
Bill No.: SB 332
Subject: Contracts and Contractors; County Government; Employees-Employers; Labor and Industrial Relations Dept.; Labor and Management; Political Subdivisions; Salaries; Workers Compensation
Type: Original
Date: February 4, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| 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.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Labor and Industrial Relations (DOL) assume under this proposal, if no wage survey information is received, Missouri's Division of Labor Standards would be required to change the process for determining prevailing wage rates. Due to the proposed changes in applicability, the Division would need to educate public bodies, contractors, and others on the changes. DOL assumes the proposal would have no fiscal impact on their office.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Some small business contractors may no longer be eligible to receive the benefits of the prevailing wage law. The impact of this is unknown. Conversely, some small businesses may save money by no longer being required to affix certain information on certain motor vehicles and equipment.
DESCRIPTION
This proposal modifies the definitions of "construction" and "maintenance work" under the prevailing wage law. Further, it limits the individuals who are eligible to receive the benefits of the prevailing wage law to those engaged in actual construction or reconstruction of public works and expressly removes individuals engaged in repairs from being eligible to receive the benefits of the prevailing wage law.
When no wages are reported for a particular locality, the Department of Labor and Industrial Relations shall use the appropriate federal hourly wage rate as provided for in section 290.502 RSMo.
This proposal removes the requirement that the Department of Labor and Industrial Relations when determining the prevailing wage consider the applicable wage rate established by a collective bargaining agreement. Further, it removes all provisions dealing with collective bargaining in determining and adjusting the annual wage rates.
This proposal removes the requirement that contractors and subcontractors engaged in public works include in their records the names of their workmen. Further, it removes subsections which require contractors and subcontractors engaged in the construction of public works to have certain information affixed on certain motor vehicles and motorized self-propelled pieces of equipment.
This proposal 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
Mickey Wilson, CPA
Director
February 4, 2003