BILL ANALYSIS

H.B. 4536

By: Darby

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that while current law governing the payment of prevailing wages on state-funded public works projects is intended to ensure fair compensation for laborers, the process for handling wage complaints has created procedural challenges for contractors and subcontractors due to a state agency's authority to act on a wage complaint and withhold payments to the general contractor without first notifying the contractor or employer of the complaint. The bill author has also informed the committee that this often results in costly arbitration proceedings that are triggered before the employer has a chance to present evidence, clarify wage classifications, or resolve the issue informally, and that for small businesses, this process can impose significant financial burdens even when the wage claim lacks merit. H.B. 4536 seeks to improve fairness and transparency in the complaint process by requiring timely notice of a complaint regarding a violation of provisions relating to prevailing wage rates to be provided to the subject of the complaint.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4536 amends the Government Code to require a public body awarding a contract and an agent or officer of the public body to submit, as soon as practicable after receiving a complaint regarding a violation of provisions relating to prevailing wage rates committed in the execution of the contract, written notice of the complaint to the contractor or subcontractor that is the subject of the complaint. The bill changes the deadline for a public body to make its requisite initial determination as to whether good cause exists to believe that an alleged violation of prevailing wage rates required to be paid by a contractor and a subcontractor occurred from before the 31st day after the date the public body receives the information concerning the alleged violation to not later than the 31st day after the date the public body submits notice of the complaint to the contractor or subcontractor that is the subject of the complaint.

H.B. 4536 applies only to a complaint received by a public body on or after the bill's effective date. A complaint received by a public body before that date is governed by the law in effect on the date the public body received the complaint, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.