92nd General Assembly
Summary of HB0644
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Senate Sponsors:

Short description: 
APPRENTICE EQUITY ACT                                                      

Synopsis of Bill as introduced:
        Creates the Apprentice Equity Act.  Provides that  certain  State      
   contracts   designated  by  the  Capital  Development  Board  and  the      
   Department of Transportation shall be subject to a  plan  under  which      
   specified  goals for the employment of minority and female apprentices      
   shall be met.  Provides for administration of the plan and  submission      
   of reports concerning the plan.  Effective January 1, 2002.                 
          FISCAL NOTE (Capital Development Board)                              
           Administrative budget impact                          $765,944      
           Impact on construction contracts                                    
            average spending per year                        $350,000,000      
            each 1% cost to vendors                          $  3,500,000      
            assume vendors increase bids by 2.5%                               
            to cover implementation                          $  8,750,000      
        HOUSE AMENDMENT NO. 1.                                                 
        Provides that only contracts to be performed in counties with a        
   population of more than 115,000 may be designated under the Act.            
          FISCAL NOTE, AMENDED (Capital Development Board)                     
          Administrative budget impact would total $49,700. Assuming the       
          contractor will charge 2.5% extra to implement the program, for      
          each $1 million in contracts, the impact on construction costs       
          would be $25,000.                                                    
          FISCAL NOTE (Department of Transportation)                           
          HB 644 would prohibit non-union contractors from bidding on          
          construction contracts covered by the apprenticeship hiring          
          requirements. Also some union contractors will find the re-          
          quirement an additional burden. This will decrease competition       
          for those contracts. The result will be increased costs for          
          highway construction contracts. The actual fiscal impact is          
          indeterminate at this time. In order to implement HB 644, the        
          Department will need to devote additional resources to select        
          reports, monitor contractor compliance and submit quarterly          
          reports. The actual amount of these additional costs is unknown      
          at this time.                                                        
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   0


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