LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 9, 2001
  
  
          TO:  Honorable Bill G. Carter, Chair, House Committee on Urban
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1611  by Kolkhorst (Relating to the authority of
               certain municipalities to collect a penalty for the
               failure of a contractor or subcontractor to pay the
               prevailing wage rate.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
The bill would repeal Section 2258.023(e) of the Government Code, thus
removing the population requirement that currently restricts a
municipality with a population under 10,000 from collecting a penalty
under the prevailing wage rates statutes as they apply to contractors and
subcontractors.  Under the provisions of the bill, all municipalities
would be able to collect a penalty.

There would be no fiscal impact to municipalities with a population over
10,000 since they are already allowed to collect a penalty.  For
municipalities with a population of 10,000 or less, if the public body
contracts with contractors and subcontractors that do not pay their
employees the prevailing wage rate, the municipality would be authorized
to collect a penalty of $60 for each worker employed by the contractor
and subcontractor for each calendar day or part of the day that the
worker is paid less than wage rates stipulated in the contract.
  
  
Source Agencies:   
LBB Staff:         JK, DB