SRC-BWC S.B. 464 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 464
77R4122 JRD-DBy: Shapleigh
State Affairs
3/14/2001
As Filed


DIGEST AND PURPOSE 

Employees hired by state government contractors may earn different wages
for an identical service depending on the region where the work is
performed.  For instance, a construction worker in a Strategic Investment
Area (as defined by S.B. 441, 76th legislative session) earns less money
for the same work performed in a more affluent area.  Currently, to
determine the prevailing per diem wage rate to be paid for the construction
of a public work, the state either conducts a survey of the wages received
by workers employed on similar projects in the same political subdivision
of the state, or uses the prevailing wage rate as determined by the United
States Department of Labor in accordance with the Davis-Beacon Act.  The
state can apply either of these two wage rates in deciding what to pay
contract workers.  As proposed, S.B. 464 amends the Government Code to
equalize pay for similar work performed in different parts of the state.
The bill directs the state to use the higher of three prevailing wage
rates:  (1) the wages paid to workers employed on similar projects in the
same political subdivision of the state, (2) the wages paid for similar
work statewide, or (3) the prevailing wage rate as determined by the
DavisBeacon Act. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2258.022, Government Code, by requiring a public
body awarding a contract for public work to determine the general
prevailing rate of per diem wages in the locality in which the public work
is to be performed for each craft or type of worker needed to execute the
contract and the prevailing rate for legal holiday and overtime work.  The
public body is to make the determination by doing the following: 

 _conducting a survey of wages received by classes of workers employed on
projects of a character similar to the contract work both statewide and in
the political subdivision of the state in which the public work is to be
performed; 
 
 _considering the prevailing wage rate as determined by the United States
Department of Labor (USDL) in accordance with the Davis-Bacon Act (40
U.S.C. Section 276a et seq.), but only if the survey used to determine the
rate was conducted within a three-year period preceding the date the public
body calls for bids for the public work; and 

 _determining the rate in the locality based on the higher of the rate
determined from the statewide survey, the rate determined from the survey
conducted in the political subdivision, and if applicable, the rate
determined by the USDL.  

Makes conforming changes.

SECTION 2.  Effective date:  September 1, 2001.
             Makes application of the Act prospective.