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.