Date Requested: January 26, 2015
Time Requested: 10:24 AM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
1912 Introduced HB2413
CBD Subject: Education (K12)



Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    House Bill 2413, if enacted, would require public higher education institutions to compensate employees performing any work assignment outside the regular employment duties or beyond contracted employment terms at a rate of pay equal to or greater than the calculated daily rate of pay based on the employee's current salary. All statutory and policy protections provided to the employee during regular employment would extend to the employment occurring outside the normal workday or contract. It is estimated that the annual additional costs associated with this bill would be about $12 million.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 12,000,000 12,000,000
Personal Services 0 12,000,000 12,000,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

    The total annual salaries cost for higher education classified and non-classified employees who are exempt from overtime is about $202 million. Records of uncompensated hours are not maintained for these employees. If these employees exceed their contracted 37.5 hours per week by an average of two hours per week, the estimated additional costs would be about $12 million, including additional payroll taxes and retirement costs. It is estimated that the additional payroll taxes and retirement costs would equal 13.65 percent of additional salary costs.
    Additional costs may result from differentials between faculty summer school pay rates and their normal school year pay rates. Because the summer school pay policies vary significantly, sufficient data is not available to estimate the associated additional costs. In addition, classified employees may perform duties beyond t heir pay grade. Sufficient data is also not available to estimate the additional costs that would be incurred to address this circumstance.



    Person submitting Fiscal Note: Ed Magee
    Email Address: