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.
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