LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

April 17, 2011

TO:	Honorable Robert Duncan, Chair, Senate Committee on State Affairs
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	SB1389 by Gallegos (Relating to safety training for employees of certain contractors with a governmental entity.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would require contractors providing general construction services to governmental entities to ensure all employees working on the construction site have received safety training consistent with federal Occupational Safety and Health Administration standards. The bill would authorize a governmental entity to impose an administrative penalty of $100 per day for each employee working in noncompliance of these provisions and allow the penalty to be withheld from a payment otherwise owed to the contractor.

State agencies report that the bill's provisions would increase construction contract oversight and enforcement activities but that any associated costs could be met with existing resources.

The bill would apply only to a contract solicited by a governmental entity on or after the effective date. The bill would take effect September 1, 2011.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

303 Facilities Commission, 601 Department of Transportation, 696 Department of Criminal Justice, 710 Texas A&M University System Administrative and General Offices

LBB Staff:

JOB, KJG, JI, KY, KKR