LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 16, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB464  by Shapleigh (Relating to determining the
               prevailing per diem wage rate to be paid in connection
               with constructing a public work for the state.), As
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
The bill would require that in a locality where a contract for a public
work is awarded by a political subdivision or the state, the public body
would determine the prevailing wage rates for each craft or type of
worker needed to execute the contract. Provisions of the bill would
require that to determine the prevailing wage rate, a survey would be
conducted of wages received by classes of workers employed on similar
projects both within the same political subdivision and statewide, as
well as reviewing the prevailing wage rate as determined by the United
States Department of Labor. The prevailing wage rate used would be the
higher of the rates of the political subdivision survey, the statewide
survey, or from the Department of Labor.

The Texas Association of Counties and the Texas Municipal League (TML)
both indicated the requirements of the proposed statute would require
the addition of from a one-half to one full-time-equivalent position per
political subdivision.  In large cities and counties, the additional
salary, benefits, and capital expenditures required for the position
would be no significant fiscal impact; however, in small cities and
counties, the additional position would have a significant impact.
Examples of projected costs to counties ranged from $17,800 for a
half-time staff position in a small county to $20,000 for a full-time
position in a large county. TML indicated that increased staff time for
conducting the surveys would add 15 to 20 percent to the cost of public
works projects.
  
  
Source Agencies:   480   Department of Economic Development, 303
                   General Services Commission, 601   Texas Department
                   of Transportation, 320   Texas Workforce Commission,
                   304   Comptroller of Public Accounts
LBB Staff:         JK, RB, GS, DB