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A BILL TO BE ENTITLED
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AN ACT
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relating to the prevailing wage for work associated with public |
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work contracts; authorizing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2258.023, Government Code, is amended by |
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amending Subsections (a), (b), and (d) and adding Subsections (b-1) |
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and (f) to read as follows: |
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(a) The contractor who is awarded a contract by a public |
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body or a subcontractor of the contractor: |
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(1) shall pay not less than the rates determined under |
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Section 2258.022 to a worker employed by it in the execution of the |
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contract; and |
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(2) may not improperly classify a worker employed by |
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it in the execution of the contract as an independent contractor in |
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order to avoid paying the worker under Subdivision (1). |
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(b) A contractor or subcontractor who violates this section |
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shall pay to the state or a political subdivision of the state on |
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whose behalf the contract is made $90 [, $60] for: |
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(1) each worker employed for each calendar day or part |
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of the day that the worker is paid less than the wage rates |
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stipulated in the contract; or |
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(2) each worker misclassified as an independent |
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contractor for each calendar day or part of the day that the worker |
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is misclassified. |
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(b-1) A public body awarding a contract shall specify the |
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[this] penalty provided for by Subsection (b) in the contract. |
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(d) The public body shall: |
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(1) audit a public work contract to ensure compliance |
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with this chapter: |
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(A) throughout the term of the contract; and |
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(B) not later than the 30th day before the date |
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the work is scheduled to be completed on the contract; and |
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(2) use any money collected under this section to |
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offset the costs incurred in the administration of this chapter. |
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(f) The payment requirement under Subsection (a)(1) may |
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only be satisfied by payment to the employee in the form of per diem |
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wages. |
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SECTION 2. The change in law made by this Act applies only |
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to a public work contract entered into on or after the effective |
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date of this Act. A public work contract entered into before the |
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effective date of this Act is governed by the law in effect on the |
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date the contract was entered into, and the former law is continued |
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in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |