MILLER, ERWIN, LANG AND YOUNGE.
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
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0
END OF INQUIRY
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