SENATE MEMORIAL 18

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Larry R. Scott

 

 

 

 

 

A MEMORIAL

REQUESTING THE DEPARTMENT OF FINANCE AND ADMINISTRATION, THE DEPARTMENT OF TRANSPORTATION AND THE WORKFORCE SOLUTIONS DEPARTMENT TO CONVENE A TASK FORCE TO STUDY THE IMPACT OF THE PUBLIC WORKS MINIMUM WAGE ACT ON THE COST OF PUBLIC WORKS AND CAPITAL OUTLAY PROJECTS IN NEW MEXICO.

 

     WHEREAS, the Public Works Minimum Wage Act provides that public works contracts entered into by the state or a political subdivision that have a value in excess of sixty thousand dollars ($60,000) shall provide for wages significantly higher than those paid on private sector projects; and

     WHEREAS, the federal Davis-Bacon Act requires paying local prevailing wages for contractors and subcontractors performing on federally funded or assisted contracts in excess of two thousand dollars ($2,000) for the construction, alteration or repair of public buildings or public works; and

     WHEREAS, the prevailing wages for public works projects are likely to be more than the minimum wage of twelve dollars ($12.00) per hour established by the Minimum Wage Act; and

     WHEREAS, the Public Works Minimum Wage Act results in higher costs for wages than required pursuant to the Minimum Wage Act, thereby increasing the cost of many public works contracts, including capital outlay projects approved by the legislature, above what would be required by the Minimum Wage Act; and

     WHEREAS, a reduction in labor costs below what might otherwise be required pursuant to the Public Works Minimum Wage Act would result in more miles of road being built and more square footage of public buildings being built per dollar of project expenditure;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the department of finance and administration, the department of transportation and the workforce solutions department be requested to convene a task force composed of representatives of labor, construction industries, state and local government and the bureau of business and economic research at the university of New Mexico to study the impact of the Public Works Minimum Wage Act and the federal Davis-Bacon Act on the cost of public works projects and capital outlay projects in New Mexico and make recommendations regarding changes to the Public Works Minimum Wage Act; and

     BE IT FURTHER RESOLVED that the task force be requested to submit its report and recommendations to the appropriate interim legislative committee by October 1, 2026; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of finance and administration, the secretary of transportation, the secretary of workforce solutions and the director of the legislative finance committee.

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