By Oliveira                                            H.B. No. 110
         77R105 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to wage rates paid by or on behalf of school districts on
 1-3     public works projects.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. The heading to Chapter 2258, Government Code, is
 1-6     amended to read as follows:
 1-7               CHAPTER 2258.  PREVAILING AND LIVING WAGE RATES
 1-8           SECTION 2. The heading to Subchapter B, Chapter 2258,
 1-9     Government Code, is amended to read as follows:
1-10          SUBCHAPTER B.  PAYMENT OF PREVAILING OR LIVING WAGE RATES
1-11           SECTION 3. Section 2258.021(a), Government Code, is amended
1-12     to read as follows:
1-13           (a)  Except as provided by Section 2258.0211, a [A] worker
1-14     employed on a public work by or on behalf of the state or a
1-15     political subdivision of the state shall be paid:
1-16                 (1)  not less than the general prevailing rate of per
1-17     diem wages for work of a similar character in the locality in which
1-18     the work is performed; and
1-19                 (2)  not less than the general prevailing rate of per
1-20     diem wages for legal holiday and overtime work.
1-21           SECTION 4. Subchapter B, Chapter 2258, Government Code, is
1-22     amended by adding Section 2258.0211 to read as follows:
1-23           Sec. 2258.0211.  AUTHORITY OF SCHOOL DISTRICT TO REQUIRE
1-24     LIVING WAGE RATE. (a)  This section applies only if the general
 2-1     prevailing rate of per diem wages for work of a similar character
 2-2     in the locality in which the work is performed, as determined in
 2-3     accordance with Section 2258.022, is less than the rate of per diem
 2-4     wages that would amount to annual compensation equal to the federal
 2-5     poverty level for a family of four based on the federal Office of
 2-6     Management and Budget poverty index.
 2-7           (b)  A school district may require that a worker employed on
 2-8     a public work by or on behalf of the district be paid not less
 2-9     than:
2-10                 (1)  for work other than legal holiday or overtime
2-11     work, the rate of per diem wages that would amount to annual
2-12     compensation equal to the federal poverty level for a family of
2-13     four based on the federal Office of Management and Budget poverty
2-14     index; and
2-15                 (2)  for legal holiday or overtime work, the greater
2-16     of:
2-17                       (A)  the rate described by Subdivision (1); or
2-18                       (B)  the general prevailing rate of per diem
2-19     wages for that work, as determined in accordance with Section
2-20     2258.022.
2-21           (c)  Subsection (b) does not apply to maintenance work.
2-22           (d)  A worker is employed on a public work for the purposes
2-23     of this section if the worker is employed by a contractor or
2-24     subcontractor in the execution of a contract for the public work
2-25     with the school district or any officer or public body of the
2-26     school district.
2-27           (e)  The school district shall determine the rate of per diem
 3-1     wages described by Subsection (b)(1) as a sum certain, expressed in
 3-2     dollars and cents.
 3-3           (f)  The school district shall specify in the call for bids
 3-4     for the contract and in the contract itself the wage rates required
 3-5     by the district under this section.
 3-6           SECTION 5. Section 2258.022(c), Government Code, is amended
 3-7     to read as follows:
 3-8           (c)  A public body, other than a school district that
 3-9     requires a living wage rate in accordance with Section 2258.0211,
3-10     shall specify in the call for bids for the contract and in the
3-11     contract itself the wage rates determined under this section.
3-12           SECTION 6. Section 2258.023, Government Code, is amended by
3-13     amending the heading and Subsections (a) and (c) to read as
3-14     follows:
3-15           Sec. 2258.023.  PREVAILING OR LIVING WAGE RATES TO BE PAID BY
3-16     CONTRACTOR AND SUBCONTRACTOR; PENALTY. (a)  The contractor who is
3-17     awarded a contract by a public body or a subcontractor of the
3-18     contractor shall pay [not less than the rates determined under
3-19     Section 2258.022] to a worker employed by it in the execution of
3-20     the contract not less than, as applicable:
3-21                 (1)  the rates determined under Section 2258.022; or
3-22                 (2)  the rates required by a school district under
3-23     Section 2258.0211.
3-24           (c)  A contractor or subcontractor does not violate this
3-25     section if a public body awarding a contract does not determine the
3-26     prevailing or living wage rates and specify the prevailing or
3-27     living wage rates in the contract as provided by Section 2258.022
 4-1     or 2258.0211, as applicable.
 4-2           SECTION 7. Section 2258.025, Government Code, is amended to
 4-3     read as follows:
 4-4           Sec. 2258.025.  PAYMENT GREATER THAN MINIMUM WAGE
 4-5     [PREVAILING] RATE NOT PROHIBITED.  This chapter does not prohibit
 4-6     the payment to a worker employed on a public work an amount greater
 4-7     than, as applicable:
 4-8                 (1)  the general prevailing rate of per diem wages; or
 4-9                 (2)  the rates required by a school district under
4-10     Section 2258.0211.
4-11           SECTION 8. Section 2258.056(a), Government Code, is amended
4-12     to read as follows:
4-13           (a)  A public body shall use any amounts retained under this
4-14     chapter to pay the worker the difference between the amount the
4-15     worker received in wages for labor on the public work at the rate
4-16     paid by the contractor or subcontractor and the amount the worker
4-17     would have received at the appropriate [general prevailing] wage
4-18     rate as provided in the arbitrator's award.
4-19           SECTION 9. This Act applies only to wage rates paid under a
4-20     contract entered into on or after September 1, 2001. Wage rates
4-21     paid under a contract entered into before September 1, 2001, are
4-22     governed by the law in effect at the time the contract was entered
4-23     into, and that law is continued in effect for that purpose.
4-24           SECTION 10. This Act takes effect September 1, 2001.