NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Bailey | DATE TYPED: | 03/12/01 | HB | |||
| SHORT TITLE: | Amend Public Works Minimum Wage Act | SB | 653/aSPAC | ||||
| ANALYST: | Taylor | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY01 | FY02 | FY01 | FY02 | ||
| NFI | |||||
Relates to HB 558-Repeal Public Works Minimum Wage Act; Original bill duplicated HB584.
SOURCES OF INFORMATION
New Mexico Labor Department
General Services Department (GSD)
SUMMARY
Synopsis of SPAC Amendment
The SPAC amendments reduces the scope of the minimum wage act exclusion provided to local school districts. The exclusion would apply only to contracts or projects costing one hundred thousand dollars ($100,000) or less.
Synopsis of Bill
Senate Bill 653 amends the Public Works Minimum Wage Act by excluding from its provisions local school districts, local school boards, post-secondary educational institutions and the governing boards of post-secondary institutions.
The Public Works Minimum Wage Act requires all construction contracts in excess of $20,000 to which the state or any of its political subdivisions is a party to pay laborers and mechanics the prevailing wage received by similar classes of labor in the state or locality.
Significant Issues
The Labor Department reports that educational projects account for about 15 percent of total public works construction dollars.
FISCAL IMPLICATIONS
There is no direct fiscal impact. The General Services Department reported another bill to eliminate the prevailing wage requirement would reduce construction costs by about 10 percent. No documentation as to how this would be achieved was provided, however.
ADMINISTRATIVE IMPLICATIONS
The Labor Department reports that passage of this bill would reduce the Labor and Industrial Division's workload. However, they say that the number of employees would not be reduced.
BT/njw:ar