HBA-DMH S.B. 350 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 350
By: Truan
Public Education
5/7/2001
Engrossed



BACKGROUND AND PURPOSE 

Under current law, workers on a public works project must be paid not less
than the prevailing wage for similar work in the locality.  However, wages
in all sectors of the economy along the Texas-Mexico border are
substantially lower than wages for equivalent work in the rest of the
state. The prevailing wage may not be above the federal poverty level or
adequately compensate a worker. Senate Bill 350 authorizes a school
district to require that a worker other than a maintenance worker employed
on a public work by or on behalf of the district be paid a living wage
rate. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 350 amends the Education Code to authorize a school district to
require that a worker other than a maintenance worker employed on a public
work by or on behalf of the district be paid not less than an amount equal
to the federal poverty level for a family of four.  For a legal holiday or
overtime work, the bill authorizes the school district to require a worker
other than a maintenance worker to be paid an amount not less than the
greater of either an amount equal to the federal poverty level for a family
of four or the general prevailing rate of per diem wages for that work.
The bill provides that the bill applies only to a school district located
primarily in a county within 50 miles of an international border and only
if the general prevailing wage rate is less than the rate of per diem wages
that would amount to annual compensation equal to the federal poverty level
for a family of four. 

The bill requires the school district to specify in the call for bids for
the contract and in the contract itself the living wage rates required by
the district.  The bill requires a contractor who is awarded a contract by
a school district that requires a living wage rate or a subcontractor of
the contractor to pay to a worker employed by the contractor or
subcontractor in the execution of the contract not less than the living
wage rate required by the school district. The bill authorizes a  school
district that requires a living wage rate to provide in a contract for a
public work that a contractor or subcontractor who does not comply with the
required living wage rate is liable to the school district for a penalty in
an amount specified in the contract. The penalty may not exceed the amount
of $60 for each worker employed for each calendar day or  part of the day
that the worker is paid less than the required living wage rate. The bill
provides that a contractor or subcontractor does not violate these
provisions if the school district does not specify the required living wage
rate in the contract. 

EFFECTIVE DATE

September 1, 2001.