1-1 By: Truan, Lucio S.B. No. 350 1-2 (In the Senate - Filed January 23, 2001; January 24, 2001, 1-3 read first time and referred to Committee on Education; 1-4 April 30, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 7, Nays 0; April 30, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 350 By: Truan 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to wage rates paid by or on behalf of certain school 1-11 districts on public works projects. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter B, Chapter 44, Education Code, is 1-14 amended by adding Section 44.043 to read as follows: 1-15 Sec. 44.043. AUTHORITY TO REQUIRE LIVING WAGE RATE. 1-16 (a) This section applies only if: 1-17 (1) the school district is located primarily in a 1-18 county any part of which is located within 50 miles of an 1-19 international border; and 1-20 (2) the general prevailing rate of per diem wages for 1-21 work of a similar character in the locality in which the work is 1-22 performed, as determined in accordance with Section 2258.022, 1-23 Government Code, is less than the rate of per diem wages that would 1-24 amount to annual compensation equal to the federal poverty level 1-25 for a family of four based on the federal Office of Management and 1-26 Budget poverty index. 1-27 (b) A school district may require that a worker employed on 1-28 a public work by or on behalf of the district be paid not less 1-29 than: 1-30 (1) for work other than legal holiday or overtime 1-31 work, the rate of per diem wages that would amount to annual 1-32 compensation equal to the federal poverty level for a family of 1-33 four based on the federal Office of Management and Budget poverty 1-34 index; and 1-35 (2) for legal holiday or overtime work, the greater 1-36 of: 1-37 (A) the rate described by Subdivision (1); or 1-38 (B) the general prevailing rate of per diem 1-39 wages for that work, as determined in accordance with Section 1-40 2258.022, Government Code. 1-41 (c) Subsection (b) does not apply to maintenance work. 1-42 (d) A worker is employed on a public work for the purposes 1-43 of this section if the worker is employed by a contractor or 1-44 subcontractor in the execution of a contract for the public work 1-45 with the school district or any officer or public body of the 1-46 school district. 1-47 (e) The school district shall determine the rate of per diem 1-48 wages described by Subsection (b)(1) as a sum certain, expressed in 1-49 dollars and cents. 1-50 (f) The school district shall specify in the call for bids 1-51 for the contract and in the contract itself the wage rates required 1-52 by the district under this section. 1-53 (g) A contractor who is awarded a contract by a school 1-54 district that requires a wage rate under this section or a 1-55 subcontractor of the contractor shall pay to a worker employed by 1-56 the contractor or subcontractor in the execution of the contract 1-57 not less than the wage rate required by the district. 1-58 (h) A school district that requires a wage rate under this 1-59 section may provide in a contract for a public work that a 1-60 contractor or subcontractor who does not comply with the required 1-61 wage rate is liable to the school district for a penalty in an 1-62 amount specified in the contract. The penalty may not exceed the 1-63 amount of $60 for each worker employed for each calendar day or 1-64 part of the day that the worker is paid less than the required wage 2-1 rate. 2-2 (i) A contractor or subcontractor does not violate this 2-3 section if the school district does not specify the required wage 2-4 rate in the contract as provided by Subsection (f). 2-5 SECTION 2. This Act applies only to wage rates paid under a 2-6 contract entered into on or after September 1, 2001. Wage rates 2-7 paid under a contract entered into before September 1, 2001, are 2-8 governed by the law in effect at the time the contract was entered 2-9 into, and that law is continued in effect for that purpose. 2-10 SECTION 3. This Act takes effect September 1, 2001. 2-11 * * * * *