86R1062 YDB-D By: Canales H.B. No. 169 A BILL TO BE ENTITLED AN ACT relating to the requirement that contractors verify compliance with wage payment laws in governmental contracts with governmental entities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 2252, Government Code, is amended by adding Subchapter H to read as follows: SUBCHAPTER H. CONTRACTING REQUIREMENTS AND RESTRICTIONS Sec. 2252.251. DEFINITIONS. In this subchapter: (1) "Contractor" means a person, including a firm or corporation, that enters into a governmental contract with a governmental entity. (2) "Governmental contract" has the meaning assigned by Section 2252.001. (3) "Governmental entity" has the meaning assigned by Section 2252.001. (4) "Subcontractor" means a person, including a firm or corporation, that furnishes labor or materials to fulfill an obligation to a contractor under a governmental contract. Sec. 2252.252. CERTIFICATION BY CONTRACTOR. (a) A governmental entity may not enter into a governmental contract with a contractor unless the contractor certifies in writing to the entity that during the three years preceding the date of the contract the contractor, including any subcontractor, was not found guilty or liable in any judicial or administrative proceeding more than once for a violation of Chapter 2258 of this code, Chapter 61 or 62, Labor Code, including Sections 61.019 and 61.053, Labor Code, Section 31.04, Penal Code, the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), the Davis-Bacon Act (40 U.S.C. Section 3141 et seq.), or any similar statute or regulation of any state that governs the payment of wages. (b) Each governmental contract with a governmental entity must include the following statement: "__________ (name of contractor) certifies that __________ (name of contractor and any subcontractor) is not ineligible for this contract under Subchapter H, Chapter 2252, Government Code, and acknowledges that, if this certification is inaccurate, the inaccuracy constitutes a default of this contract on notice from the governmental entity and the contractor may be barred from participating in contracts with any governmental entity in this state." Sec. 2252.253. INELIGIBILITY DETERMINATION; DEBARMENT. (a) A governmental entity shall determine a contractor to be ineligible for a governmental contract under Section 2252.252 if: (1) the contractor was awarded a governmental contract in violation of Section 2252.252; or (2) during the term of the contract, the contractor became ineligible for the contract under Section 2252.252(a) because the contractor was found guilty or liable more than once for a violation of a statute or regulation described by that subsection. (b) A governmental entity that determines a contractor is ineligible for a contract under Subsection (a) shall refer the matter to the comptroller for action. (c) Using procedures prescribed by Section 2155.077, the comptroller shall bar a contractor that a governmental entity has determined is ineligible for a contract under Subsection (a) from participating in a governmental contract with a governmental entity. (d) Debarment under this section expires on the third anniversary of the date of the debarment under Subsection (c). Sec. 2252.254. ADMINISTRATIVE PROCEDURES. Each governmental entity shall develop procedures for the administration of this subchapter. SECTION 2. Each governmental entity of this state that is subject to Subchapter H, Chapter 2252, Government Code, as added by this Act, shall develop the procedures required under Section 2252.254, Government Code, as added by this Act, not later than October 1, 2019. SECTION 3. Subchapter H, 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, 2020. SECTION 4. This Act takes effect September 1, 2019.