By:  Shapleigh                                         S.B. No. 464
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to determining the prevailing per diem wage rate to be
 1-3     paid in connection with constructing a public work for the state.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subdivision (1), Section 2258.001, Government
 1-6     Code, is amended to read as follows:
 1-7                 (1)  "Locality in which the work is performed" means:
 1-8                       (A)  for a contract for a public work awarded by
 1-9     the state, the political subdivision of the state in which the
1-10     public work is located:
1-11                             (i)  (,) which may include a county,
1-12     municipality, county and municipality, or district, except as
1-13     provided by Subparagraph (ii); and
1-14                             (ii)  which, in a municipality with a
1-15     population of 500,000 or more, may only include the geographic
1-16     limits of the municipality; or
1-17                       (B)  for a contract for a public work awarded by
1-18     a political subdivision of the state, the geographical limits of
1-19     the political subdivision.
1-20           SECTION 2.  Section 2258.022, Government Code, is amended to
1-21     read as follows:
1-22           Sec. 2258.022.  DETERMINATION OF PREVAILING WAGE RATES.
1-23     (a)  For a contract for a public work awarded by a political
1-24     subdivision of the state, the [A] public body shall determine the
1-25     general prevailing rate of per diem wages in the locality in which
 2-1     the public work is to be performed for each craft or type of worker
 2-2     needed to execute the contract and the prevailing rate for legal
 2-3     holiday and overtime work by:
 2-4                 (1)  conducting a survey of the wages received by
 2-5     classes of workers employed on projects of a character similar to
 2-6     the contract work in the political subdivision of the state in
 2-7     which the public work is to be performed; or
 2-8                 (2)  using the prevailing wage rate as determined by
 2-9     the United States Department of Labor in accordance with the
2-10     Davis-Bacon Act (40 U.S.C. Section 276a et seq.), and its
2-11     subsequent amendments, if the survey used to determine that rate
2-12     was conducted within a three-year period preceding the date the
2-13     public body calls for bids for the public work.
2-14           (b)  For a contract for a public work awarded by the state,
2-15     the public body shall determine the general prevailing rate of per
2-16     diem wages in the locality in which the public work is to be
2-17     performed for each craft or type of worker needed to execute the
2-18     contract and the prevailing rate for legal holiday and overtime
2-19     work as follows.  The public body shall conduct a survey of the
2-20     wages received by classes of workers employed on projects of a
2-21     character similar to the contract work both statewide and in the
2-22     political subdivision of the state in which the public work is to
2-23     be performed.  The public body shall also consider the prevailing
2-24     wage rate as determined by the United States Department of Labor in
2-25     accordance with the Davis-Bacon Act (40 U.S.C. Section 276a et
2-26     seq.), and its subsequent amendments, but only if the survey used
 3-1     to determine that rate was conducted within a three-year period
 3-2     preceding the date the public body calls for bids for the public
 3-3     work.  The public body shall determine the general prevailing rate
 3-4     of per diem wages in the locality based on the higher of:
 3-5                 (1)  the rate determined from the survey conducted in
 3-6     the political subdivision;
 3-7                 (2)  the arithmetic mean between the rate determined
 3-8     from the survey conducted in the political subdivision and the rate
 3-9     determined from the statewide survey; and
3-10                 (3)  if applicable, the arithmetic mean between the
3-11     rate determined from the survey conducted in the political
3-12     subdivision and the rate determined by the United States Department
3-13     of Labor.
3-14           (c)  The public body shall determine the general prevailing
3-15     rate of per diem wages as a sum certain, expressed in dollars and
3-16     cents.
3-17           (d) [(c)]  A public body shall specify in the call for bids
3-18     for the contract and in the contract itself the wage rates
3-19     determined under this section.
3-20           (e) [(d)]  The public body's determination of the general
3-21     prevailing rate of per diem wages is final.
3-22           SECTION 3.  This Act takes effect September 1, 2001.  The
3-23     change in law made by this Act applies only to determining the
3-24     general prevailing rate of per diem wages in connection with a
3-25     contract for constructing a public work awarded by the state if the
3-26     state first requests bids or proposals for its contract on or after
 4-1     that date.