HBA-DMH S.B. 350 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 350 By: Truan Public Education 5/7/2001 Engrossed BACKGROUND AND PURPOSE Under current law, workers on a public works project must be paid not less than the prevailing wage for similar work in the locality. However, wages in all sectors of the economy along the Texas-Mexico border are substantially lower than wages for equivalent work in the rest of the state. The prevailing wage may not be above the federal poverty level or adequately compensate a worker. Senate Bill 350 authorizes a school district to require that a worker other than a maintenance worker employed on a public work by or on behalf of the district be paid a living wage rate. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 350 amends the Education Code to authorize a school district to require that a worker other than a maintenance worker employed on a public work by or on behalf of the district be paid not less than an amount equal to the federal poverty level for a family of four. For a legal holiday or overtime work, the bill authorizes the school district to require a worker other than a maintenance worker to be paid an amount not less than the greater of either an amount equal to the federal poverty level for a family of four or the general prevailing rate of per diem wages for that work. The bill provides that the bill applies only to a school district located primarily in a county within 50 miles of an international border and only if the general prevailing wage rate is less than the rate of per diem wages that would amount to annual compensation equal to the federal poverty level for a family of four. The bill requires the school district to specify in the call for bids for the contract and in the contract itself the living wage rates required by the district. The bill requires a contractor who is awarded a contract by a school district that requires a living wage rate or a subcontractor of the contractor to pay to a worker employed by the contractor or subcontractor in the execution of the contract not less than the living wage rate required by the school district. The bill authorizes a school district that requires a living wage rate to provide in a contract for a public work that a contractor or subcontractor who does not comply with the required living wage rate is liable to the school district for a penalty in an amount specified in the contract. The penalty may not exceed the amount of $60 for each worker employed for each calendar day or part of the day that the worker is paid less than the required living wage rate. The bill provides that a contractor or subcontractor does not violate these provisions if the school district does not specify the required living wage rate in the contract. EFFECTIVE DATE September 1, 2001.