| 1 | 1 | | 87R3073 RDS-F |
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| 2 | 2 | | By: Romero, Jr. H.B. No. 863 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the prevailing wage for work associated with public |
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| 8 | 8 | | work contracts; authorizing a penalty. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2258.023, Government Code, is amended by |
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| 11 | 11 | | amending Subsections (a), (b), and (d) and adding Subsections (b-1) |
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| 12 | 12 | | and (f) to read as follows: |
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| 13 | 13 | | (a) The contractor who is awarded a contract by a public |
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| 14 | 14 | | body or a subcontractor of the contractor: |
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| 15 | 15 | | (1) shall pay not less than the rates determined under |
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| 16 | 16 | | Section 2258.022 to a worker employed by it in the execution of the |
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| 17 | 17 | | contract; and |
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| 18 | 18 | | (2) may not improperly classify a worker employed by |
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| 19 | 19 | | it in the execution of the contract as an independent contractor in |
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| 20 | 20 | | order to avoid paying the worker under Subdivision (1). |
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| 21 | 21 | | (b) A contractor or subcontractor who violates this section |
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| 22 | 22 | | shall pay to the state or a political subdivision of the state on |
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| 23 | 23 | | whose behalf the contract is made $90 [, $60] for: |
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| 24 | 24 | | (1) each worker employed for each calendar day or part |
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| 25 | 25 | | of the day that the worker is paid less than the wage rates |
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| 26 | 26 | | stipulated in the contract; or |
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| 27 | 27 | | (2) each worker misclassified as an independent |
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| 28 | 28 | | contractor for each calendar day or part of the day that the worker |
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| 29 | 29 | | is misclassified. |
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| 30 | 30 | | (b-1) A public body awarding a contract shall specify the |
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| 31 | 31 | | [this] penalty provided for by Subsection (b) in the contract. |
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| 32 | 32 | | (d) The public body shall: |
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| 33 | 33 | | (1) audit a public work contract to ensure compliance |
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| 34 | 34 | | with this chapter: |
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| 35 | 35 | | (A) throughout the term of the contract; and |
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| 36 | 36 | | (B) not later than the 30th day before the date |
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| 37 | 37 | | the work is scheduled to be completed on the contract; and |
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| 38 | 38 | | (2) use any money collected under this section to |
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| 39 | 39 | | offset the costs incurred in the administration of this chapter. |
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| 40 | 40 | | (f) The payment requirement under Subsection (a)(1) may |
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| 41 | 41 | | only be satisfied by payment to the employee in the form of per diem |
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| 42 | 42 | | wages. |
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| 43 | 43 | | SECTION 2. The change in law made by this Act applies only |
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| 44 | 44 | | to a public work contract entered into on or after the effective |
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| 45 | 45 | | date of this Act. A public work contract entered into before the |
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| 46 | 46 | | effective date of this Act is governed by the law in effect on the |
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| 47 | 47 | | date the contract was entered into, and the former law is continued |
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| 48 | 48 | | in effect for that purpose. |
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| 49 | 49 | | SECTION 3. This Act takes effect September 1, 2021. |
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