By Truan                                               S.B. No. 350
         77R3931 KKA-D                           
                                A BILL TO BE ENTITLED
 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. 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:
 2-1                 (1)  the school district is located primarily in a
 2-2     county any part of which is located within 50 miles of an
 2-3     international border; and
 2-4                 (2)  the general prevailing rate of per diem wages for
 2-5     work of a similar character in the locality in which the work is
 2-6     performed, as determined in accordance with Section 2258.022, is
 2-7     less than the rate of per diem wages that would amount to annual
 2-8     compensation equal to the federal poverty level for a family of
 2-9     four based on the federal Office of Management and Budget poverty
2-10     index.
2-11           (b)  A school district may require that a worker employed on
2-12     a public work by or on behalf of the district be paid not less
2-13     than:
2-14                 (1)  for work other than legal holiday or overtime
2-15     work, the rate of per diem wages that would amount to annual
2-16     compensation equal to the federal poverty level for a family of
2-17     four based on the federal Office of Management and Budget poverty
2-18     index; and
2-19                 (2)  for legal holiday or overtime work, the greater
2-20     of:
2-21                       (A)  the rate described by Subdivision (1); or
2-22                       (B)  the general prevailing rate of per diem
2-23     wages for that work, as determined in accordance with Section
2-24     2258.022.
2-25           (c)  Subsection (b) does not apply to maintenance work.
2-26           (d)  A worker is employed on a public work for the purposes
2-27     of this section if the worker is employed by a contractor or
 3-1     subcontractor in the execution of a contract for the public work
 3-2     with the school district or any officer or public body of the
 3-3     school district.
 3-4           (e)  The school district shall determine the rate of per diem
 3-5     wages described by Subsection (b)(1) as a sum certain, expressed in
 3-6     dollars and cents.
 3-7           (f)  The school district shall specify in the call for bids
 3-8     for the contract and in the contract itself the wage rates required
 3-9     by the district under this section.
3-10           SECTION 5. Section 2258.022(c), Government Code, is amended
3-11     to read as follows:
3-12           (c)  A public body, other than a school district that
3-13     requires a living wage rate in accordance with Section 2258.0211,
3-14     shall specify in the call for bids for the contract and in the
3-15     contract itself the wage rates determined under this section.
3-16           SECTION 6. Section 2258.023, Government Code, is amended by
3-17     amending the heading and Subsections (a) and (c) to read as
3-18     follows:
3-19           Sec. 2258.023.  PREVAILING OR LIVING WAGE RATES TO BE PAID BY
3-20     CONTRACTOR AND SUBCONTRACTOR; PENALTY. (a)  The contractor who is
3-21     awarded a contract by a public body or a subcontractor of the
3-22     contractor shall pay [not less than the rates determined under
3-23     Section 2258.022] to a worker employed by it in the execution of
3-24     the contract not less than, as applicable:
3-25                 (1)  the rates determined under Section 2258.022; or
3-26                 (2)  the rates required by a school district under
3-27     Section 2258.0211.
 4-1           (c)  A contractor or subcontractor does not violate this
 4-2     section if a public body awarding a contract does not determine the
 4-3     prevailing or living wage rates and specify the prevailing or
 4-4     living wage rates in the contract as provided by Section 2258.022
 4-5     or 2258.0211, as applicable.
 4-6           SECTION 7. Section 2258.025, Government Code, is amended to
 4-7     read as follows:
 4-8           Sec. 2258.025.  PAYMENT GREATER THAN MINIMUM WAGE
 4-9     [PREVAILING] RATE NOT PROHIBITED.  This chapter does not prohibit
4-10     the payment to a worker employed on a public work an amount greater
4-11     than, as applicable:
4-12                 (1)  the general prevailing rate of per diem wages; or
4-13                 (2)  the rates required by a school district under
4-14     Section 2258.0211.
4-15           SECTION 8. Section 2258.056(a), Government Code, is amended
4-16     to read as follows:
4-17           (a)  A public body shall use any amounts retained under this
4-18     chapter to pay the worker the difference between the amount the
4-19     worker received in wages for labor on the public work at the rate
4-20     paid by the contractor or subcontractor and the amount the worker
4-21     would have received at the appropriate [general prevailing] wage
4-22     rate as provided in the arbitrator's award.
4-23           SECTION 9. This Act applies only to wage rates paid under a
4-24     contract entered into on or after September 1, 2001. Wage rates
4-25     paid under a contract entered into before September 1, 2001, are
4-26     governed by the law in effect at the time the contract was entered
4-27     into, and that law is continued in effect for that purpose.
 5-1           SECTION 10. This Act takes effect September 1, 2001.