87R3073 RDS-F     By: Romero, Jr. H.B. No. 863       A BILL TO BE ENTITLED   AN ACT   relating to the prevailing wage for work associated with public   work contracts; authorizing a penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2258.023, Government Code, is amended by   amending Subsections (a), (b), and (d) and adding Subsections (b-1)   and (f) to read as follows:          (a)  The contractor who is awarded a contract by a public   body or a subcontractor of the contractor:                (1)  shall pay not less than the rates determined under   Section 2258.022 to a worker employed by it in the execution of the   contract; and                (2)  may not improperly classify a worker employed by   it in the execution of the contract as an independent contractor in   order to avoid paying the worker under Subdivision (1).          (b)  A contractor or subcontractor who violates this section   shall pay to the state or a political subdivision of the state on   whose behalf the contract is made $90 [, $60] for:                (1)  each worker employed for each calendar day or part   of the day that the worker is paid less than the wage rates   stipulated in the contract; or                (2)  each worker misclassified as an independent   contractor for each calendar day or part of the day that the worker   is misclassified.          (b-1)  A public body awarding a contract shall specify the   [this] penalty provided for by Subsection (b) in the contract.          (d)  The public body shall:                (1)  audit a public work contract to ensure compliance   with this chapter:                      (A)  throughout the term of the contract; and                      (B)  not later than the 30th day before the date   the work is scheduled to be completed on the contract; and                (2)  use any money collected under this section to   offset the costs incurred in the administration of this chapter.          (f)  The payment requirement under Subsection (a)(1) may   only be satisfied by payment to the employee in the form of per diem   wages.          SECTION 2.  The change in law made by this Act applies only   to a public work contract entered into on or after the effective   date of this Act. A public work contract entered into before the   effective date of this Act is governed by the law in effect on the   date the contract was entered into, and the former law is continued   in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2021.