85R4310 YDB-D By: Canales H.B. No. 665 A BILL TO BE ENTITLED AN ACT relating to the requirement that contractors verify compliance with wage payment laws in contracts with public bodies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 2252, Government Code, is amended by adding Subchapter F to read as follows: SUBCHAPTER F. CONTRACTING REQUIREMENTS AND RESTRICTIONS Sec. 2252.201. APPLICABILITY. This subchapter applies to a public body of: (1) a state agency, as defined by Section 315.002; and (2) a political subdivision, as defined by Section 609.001. Sec. 2252.202. CERTIFICATION BY CONTRACTOR. (a) A public body may not contract for goods or services in this state unless the contractor certifies in writing to the public body that within the five years preceding the date of the contract the contractor, including any subcontractor, has not admitted guilt or been found guilty or liable in any judicial or administrative proceeding for a repeated or wilful violation of Chapter 61 or 62, Labor Code, the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), or any similar statute or regulation of any state that governs the payment of wages. (b) Each contract with a public body must include the following statement: "__________ (name of contractor) certifies that __________ (name of contractor and any subcontractor) is not ineligible for this contract under Subchapter F, Chapter 2252, Government Code, and acknowledges that, if this certification is inaccurate, the inaccuracy constitutes a default of this contract on notice from the public body and the contractor may be barred from participating in contracts with any public body in this state." Sec. 2252.203. DEBARMENT. (a) A public body that determines a contractor is ineligible for a contract under Section 2252.202 shall refer the matter to the comptroller for action. (b) Using procedures prescribed by Section 2155.077, the comptroller shall bar a contractor from participating in a contract with a public body if the comptroller determines that the contractor was awarded a contract in violation of Section 2252.202 or became ineligible for the contract under that section during the term of the contract. (c) Debarment under this section expires on the fifth anniversary of the determination under Subsection (b). Sec. 2252.204. ADMINISTRATIVE PROCEDURES. Each public body shall develop procedures for the administration of this subchapter. SECTION 2. Each public body of a state agency or political subdivision of this state that is subject to Subchapter F, Chapter 2252, Government Code, as added by this Act, shall develop the procedures required under Section 2252.204, Government Code, as added by this Act, not later than October 1, 2017. SECTION 3. Subchapter F, Chapter 2252, Government Code, as added by this Act, applies only to a contract for which the request for bids or proposals or other applicable expressions of interest is made public on or after January 1, 2018. SECTION 4. This Act takes effect September 1, 2017.