COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 4333-01

Bill No.: SB 1204

Subject: Contracts and Contractors; Employers and Employees; Salaries and Wages

Type: Original

Date: February 24, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Labor and Industrial Relations and the Department of Transportation assume this proposal would have no impact on their organizations.



Although they did not respond to our request for information, officials from the Department of Conservation and the Office of Administration, Division of Design and Construction responded that a similar proposal would have no impact on their organizations.



Officials from the University of Missouri, in response to a similar proposal, assumed the proposal would have no impact on their organization.



Officials from the Office of the Attorney General, the Department of Social Services, and the

Department of Mental Health did not respond to our request for information.



ASSUMPTION (continued)



Officials from the Office of Administration, Division of Purchasing and Materials Management, (OADC) assumed in response to a similar proposal that their organization would be required to develop bid forms incorporating the required language. OADC stated they were unable to estimate the cost of these changes.



Oversight assumes the costs would be minimal and could be absorbed with existing resources.



FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0





FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This proposal would prohibit contractor from bidding or working on a project where the bid or work includes any subsidy of the contractor's labor costs from any third party. The contractor would be required to certify that applicable prevailing wages were paid to covered employees and that employee wages were not subsidized by any third party on that contract or on any other project.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.





SOURCES OF INFORMATION



Department of Labor and Industrial relations

Department of Transportation



NOT RESPONDING



Office of Administration

Office of the Attorney General

Department of Conservation

Department of Social Services

Department of Mental Health





Mickey Wilson, CPA

Director

February 24, 2004