By Turner of Harris H.B. No. 2310
Substitute the following for H.B. No. 2310:
By Danburg C.S.H.B. No. 2310
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to contracts between governmental entities and certain
1-3 disadvantaged businesses; providing a civil penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. DEFINITIONS. In this Act:
1-6 (1) "Contractor" means a person who submits a bid for
1-7 a public contract. The term includes a general contractor and a
1-8 subcontractor.
1-9 (2) "Disadvantaged business" has the meaning assigned
1-10 by Section 1.02, State Purchasing and General Services Act (Article
1-11 601b, Vernon's Texas Civil Statutes).
1-12 (3) "Governmental entity" means a state agency or
1-13 political subdivision of this state.
1-14 (4) "Person" means an individual, partnership,
1-15 association, corporation, or other private legal entity.
1-16 (5) "Political subdivision" means a county,
1-17 municipality, school district, or other special district or
1-18 authority of this state.
1-19 (6) "Public contract" means a purchasing contract or
1-20 public works contract awarded by a governmental entity.
1-21 (8) "State agency" means a board, commission, office,
1-22 department, or other agency in the executive, judicial, or
1-23 legislative branch of state government. The term includes an
2-1 institution of higher education as defined by Section 61.003,
2-2 Education Code.
2-3 SECTION 2. APPLICATION. This Act applies to each public
2-4 contract entered into by a governmental entity and a contractor in
2-5 which the contractor claims to be a disadvantaged business.
2-6 SECTION 3. PROHIBITED ACT. A contractor may not claim
2-7 disadvantaged business status in bidding on a public contract
2-8 unless the contractor meets the definition of a disadvantaged
2-9 business and that contractor will personally execute the terms of
2-10 the contract.
2-11 SECTION 4. CIVIL PENALTY. (a) The attorney general or a
2-12 district, county, or city attorney may institute an action in
2-13 district court to recover a civil penalty against a person who
2-14 claims disadvantaged business status and the general contractor who
2-15 knowingly contracts with a person claiming the disadvantaged
2-16 business status in violation of Section 3 of this Act.
2-17 (b) A civil penalty assessed under this section may not
2-18 exceed $1,000 for each violation. Each day of violation
2-19 constitutes a separate violation for purposes of penalty
2-20 assessment.
2-21 (c) A civil penalty recovered in an action brought by the
2-22 attorney general shall be deposited in the state treasury. A civil
2-23 penalty recovered in an action brought by a political assessment.
2-24 (c) A civil penalty recovered in an action brought by the
2-25 attorney general shall be deposited in the state treasury. A civil
3-1 penalty recovered in an action brought by a political subdivision
3-2 shall be deposited in the general fund of that political
3-3 subdivision.
3-4 (d) A civil penalty under this section is in addition to any
3-5 other criminal, civil, or administrative penalty assessed by this
3-6 state or a political subdivision to which a person in violation of
3-7 Section 3 of this Act may be liable.
3-8 SECTION 5. EFFECTIVE DATE; SAVING PROVISION. This Act takes
3-9 effect September 1, 1993, and applies only to a public contract
3-10 that is entered into on or after that date. A public contract
3-11 entered into before September 1, 1993, is governed by the law in
3-12 effect on the date that the contract was entered into, and the
3-13 former law is continued in effect for that purpose.
3-14 SECTION 6. EMERGENCY. The importance of this legislation
3-15 and the crowded condition of the calendars in both houses create an
3-16 emergency and an imperative public necessity that the
3-17 constitutional rule requiring bills to be read on three several
3-18 days in each house be suspended, and this rule is hereby suspended.