COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2122-01
Bill No.: SB 596
Subject: Open Contracting Act
Type: Original
Date: March 12, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| General Revenue | (Unknown) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on All State Funds |
(Unknown) | (Unknown) | (Unknown) |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Labor and Industrial Relations, Department of Conservation, Department of Transportation, Office of Administration - Division of Design and Construction and the City of Kansas City assume the proposed legislation would have no fiscal impact on their agencies.
Officials from the Department of Natural Resources assume the proposed legislation would have no direct fiscal impact on their department.
Officials from the Office of Administration - Division of Purchasing and Materials Management assume this legislation would prohibit bid specifications and contracts established by public agencies from imposing certain labor requirements on bidders and contractors. The Division of Purchasing currently does not issue bid specifications or award contracts that encourage or require contractors to enter into agreements with labor organizations. Therefore, this legislation would not significantly impact the Division of Purchasing.
Officials from the Coordinating Board for Higher Education assume the proposed legislation would have no fiscal impact on their agency. Officials also assume the proposed legislation would have no impact on colleges and universities as, to their knowledge, colleges and universities do not put any requirements on contractors as prohibited in this proposal.
Officials from the Office of Attorney General assume the costs related to this proposal are unknown because this proposal may impose attorney fees against the State in contracting cases.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| GENERAL REVENUE FUND | |||
| Cost - Office of Attorney General | (Unknown) | (Unknown) | (Unknown) |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $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 establishes the "Open Contracting Act" which prohibits public agencies from imposing certain labor requirements as conditions for performing public works.
Public entities procuring products or services or entering into contracts for manufacture of public works shall ensure that their agreements do not bind the other parties to such agreement to labor organizations. Public entities shall not discriminate against such parties who refuse to adhere to agreements with labor organizations. Public entities shall not require such parties to make their employees join or pay dues or fees to a labor organization in excess of costs already paid.
Public entities shall not issue grants or contract for construction projects requiring another party's employees join, become affiliated with, or pay more money to a labor organization. Such entities may exercise authority, as required, to prevent such action by a grant recipient or party to a contract. Any interested party has standing to challenge agreements that violate these provisions.
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
Coordinating Board for Higher Education
Department of Conservation
Department of Labor and Industrial Relations
Department of Natural Resources
Department of Transportation
Office of Administration - Division of Design and Construction
Office of Administration - Division of Purchasing and Materials Management
Office of Attorney General
City of Kansas City
NOT RESPONDING: St. Louis County
Jeanne Jarrett, CPA
Director
March 12, 2001