1-1 AN ACT 1-2 relating to wage rates paid by or on behalf of certain school 1-3 districts on public works projects. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 44, Education Code, is 1-6 amended by adding Section 44.043 to read as follows: 1-7 Sec. 44.043. AUTHORITY TO REQUIRE LIVING WAGE RATE. 1-8 (a) This section applies only if: 1-9 (1) the school district is located primarily in a 1-10 county any part of which is located within 50 miles of an 1-11 international border; and 1-12 (2) the general prevailing rate of per diem wages for 1-13 work of a similar character in the locality in which the work is 1-14 performed, as determined in accordance with Section 2258.022, 1-15 Government Code, is less than the rate of per diem wages that would 1-16 amount to annual compensation equal to the federal poverty level 1-17 for a family of four based on the federal Office of Management and 1-18 Budget poverty index. 1-19 (b) A school district may require that a worker employed on 1-20 a public work by or on behalf of the district be paid not less 1-21 than: 1-22 (1) for work other than legal holiday or overtime 1-23 work, the rate of per diem wages that would amount to annual 1-24 compensation equal to the federal poverty level for a family of 1-25 four based on the federal Office of Management and Budget poverty 2-1 index; and 2-2 (2) for legal holiday or overtime work, the greater 2-3 of: 2-4 (A) the rate described by Subdivision (1); or 2-5 (B) the general prevailing rate of per diem 2-6 wages for that work, as determined in accordance with Section 2-7 2258.022, Government Code. 2-8 (c) Subsection (b) does not apply to maintenance work. 2-9 (d) A worker is employed on a public work for the purposes 2-10 of this section if the worker is employed by a contractor or 2-11 subcontractor in the execution of a contract for the public work 2-12 with the school district or any officer or public body of the 2-13 school district. 2-14 (e) The school district shall determine the rate of per diem 2-15 wages described by Subsection (b)(1) as a sum certain, expressed in 2-16 dollars and cents. 2-17 (f) A school district that requires a wage rate under this 2-18 section shall specify in the call for bids for the contract and in 2-19 the contract itself the wage rates required by the district. 2-20 (g) A contractor who is awarded a contract by a school 2-21 district that requires a wage rate under this section or a 2-22 subcontractor of the contractor shall pay to a worker employed by 2-23 the contractor or subcontractor in the execution of the contract 2-24 not less than the wage rate required by the district. 2-25 (h) A school district that requires a wage rate under this 2-26 section may provide in a contract for a public work that a 3-1 contractor or subcontractor who does not comply with the required 3-2 wage rate is liable to the school district for a penalty in an 3-3 amount specified in the contract. The penalty may not exceed the 3-4 amount of $60 for each worker employed for each calendar day or 3-5 part of the day that the worker is paid less than the required wage 3-6 rate. 3-7 (i) A contractor or subcontractor does not violate this 3-8 section if the school district does not specify the required wage 3-9 rate in the contract as provided by Subsection (f). 3-10 SECTION 2. This Act applies only to wage rates paid under a 3-11 contract entered into on or after September 1, 2001. Wage rates 3-12 paid under a contract entered into before September 1, 2001, are 3-13 governed by the law in effect at the time the contract was entered 3-14 into, and that law is continued in effect for that purpose. 3-15 SECTION 3. This Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 350 passed the Senate on May 3, 2001, by a viva-voce vote; and that the Senate concurred in House amendment on May 24, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 350 passed the House, with amendment, on May 18, 2001, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor