Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR
Padilla/Chávez, E
LAST UPDATED
ORIGINAL DATE 1/31/25
SHORT TITLE Public Works Minimum Wage Definitions
BILL
NUMBER Senate Bill 59
ANALYST Garcia
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
DOT
Indeterminate
but minimal
Indeterminate
but moderate
Indeterminate
but moderate
Indeterminate
but moderate
Recurring General Fund
GSD
Indeterminate
but minimal
Indeterminate
but moderate
Indeterminate
but moderate
Indeterminate
but moderate
Recurring General Fund
WSD
Indeterminate
but minimal
$50.0 $50.0 $100.0 Recurring General Fund
Total
Indeterminate
but minimal
Indeterminate
but moderate
Indeterminate
but moderate
Indeterminate
but moderate
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Conflicts with House Bill 6.
Sources of Information
LFC Files
Agency Analysis Received From
Workforce Solutions Department (WSD) General Services Department (GSD) Agency Analysis was Solicited but Not Received From
New Mexico Department of Transportation (NMDOT) Because of the short timeframe between the introduction of this bill and its first hearing, LFC has yet to receive analysis from state, education, or judicial agencies. This analysis could be updated
if that analysis is received.
SUMMARY
Synopsis of Senate Bill 59
Senate Bill 59 (SB59) amends the Public Works Minimum Wage Act (PWMWA) to include
“off-site fabricator” to the list of workers who must receive prevailing wages and benefits when
completing public works projects.
Senate Bill 59 – Page 2
The bill defines “off-site fabricator” as a person who earns a wage to fabricate heating, cooling,
ventilation or exhaust duct systems that are part of a public works project or any other fabrication
that is either a component or structure that is prefabricated to specifications for use in or on a
public works project.
The effective date of this bill is July 1, 2025. The bill notes the act will apply to requests for
proposals and invitations for bids for procurement for public works projects issued on or after
July 1, 2025.
FISCAL IMPLICATIONS
The General Services Division (GSD) notes no potential fiscal impact resulting from this bill.
GSD reports the agency does limited contracting for pre-fabrication projects.
However, given the bill applies to subcontractors, it may be difficult for GSD to determine the
extent to which subcontractors employ off-site fabricators. Thus, it is difficult to determine if the
agency would experience significant increases to contracting costs associated with increased
wages.
The New Mexico Department of Transportation (NMDOT) did not provide any analysis for this
bill. NMDOT may also experience increased costs for contractual services to the extent the
agency relies on contractors and subcontractors who employ off-site fabricators.
As such, the bill has the potential to result in an indeterminate but moderate fiscal impact for
both agencies.
The Workforce Solutions Department (WSD) notes the expansion of the PWMWA will
necessitate additional WSD administrative responsibilities related to enforcement and training to
ensure staff and stakeholders understand new bill requirements. WSD estimates annual recurring
cost increases of $50 thousand.
SIGNIFICANT ISSUES
Under the state’s PWMWA every contract involving the state or a political subdivision for more
than $60 thousand to construct, alter, demolish, or repay the costs of public buildings, public
works, or public roads requires certain types of laborers to be paid a minimum wage and fringe
benefits.
Through administrative rule, the WSD determines the prevailing wage based on classes of
laborers and mechanics employed in a similar nature on contract work in the state or locality.
Administrative code requires WSD to determine prevailing wages to be those used in collective
bargaining agreements when collective bargaining agreements exist between labor unions and
their signatory employers. When no collective bargaining agreements exist, administrative code
outlines how WSD establishes prevailing wages.
When an agency receives a contract to perform public works projects, the contracting agency
must notify WSD and include wage rate agreements. WSD then ensures enforcement of these
wages, which apply to subcontractors. Senate Bill 59 – Page 3
SB59 would expand the categories of workers under the PWMWA to include “off-site
fabricators,” and contractors seeking public works projects would be required to pay prevailing
wages for these workers.
WSD notes in its analysis the bill aims to improve wage parity and compliance in public works
projects by expanding workers covered under the PWMWA.
PERFORMANCE IMPLICATIONS
WSD notes the inclusion of “off-site fabricators” in the PWMWA expands the scope of wage
protections and places new compliance responsibilities on WSD, which monitors and enforces
the PWMWA.
ADMINISTRATIVE IMPLICATIONS
WSD notes the phrase used in the bill “any other fabricators” lacks specificity, which will make
it difficult for WSD to determine what qualifies as a prefabricated component or structure when
reviewing public works bids or monitoring compliance. To address this, WSD notes the agency
would need to engage the construction industry in the formulation of regulations.
WSD notes the bill also does not explicitly require public works bids document whether off-site
fabrication is involved in a project, and WSD would need to promulgate rules requiring
contractors disclose all off-site fabrication.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 6 would also amend the PWMWA under Section 13-4-11.
TECHNICAL ISSUES
WSD notes the language in the current draft of the bill regarding the scope of the act to workers
“employed on the project site” creates some conflict.
RMG/hj/hg/sgs