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F I S C A L I M P A C T R E P O R T





SPONSOR: Wilson DATE TYPED: 02/14/01 HB
SHORT TITLE: Business Ethics Programs SB 558
ANALYST: Taylor


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 75.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Labor Department



SUMMARY



Synopsis of Bill



Senate Bill 558 appropriates $75.0 from the General Fund to the Labor Department for the purpose of contracting for programs to train private sector employees in business ethics.



PERFORMANCE IMPLICATIONS



The Labor Department should build performance standards into the contract(s). Output measures that could be included would be the number of seminars or meetings, the number of persons trained. The desired outcome would be more ethical business practices, which may result but would be impossible to measure.



FISCAL IMPLICATIONS



The appropriation of $75.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



The Labor Department will oversee the contract. They say that they will issue an RFP and contract with an experienced organization. They also report they are required to set aside a small percent of the money for administrative management.



BT/ar