By Harris                                        S.B. No. 442

      75R4863 JRD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to requiring that contractors and subcontractors disclose

 1-3     the status of their licenses, permits, and certificates to certain

 1-4     state agencies.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Chapter 2252, Government Code, is amended by

 1-7     adding Subchapter D to read as follows:

 1-8                SUBCHAPTER D.  DISCLOSURE OF LICENSING STATUS

 1-9           Sec. 2252.081.  DEFINITION.  In this subchapter, "state

1-10     agency" has the meaning assigned by Section 2151.002.

1-11           Sec. 2252.082.  DISCLOSURE OF LICENSING INFORMATION IN BID OR

1-12     PROPOSAL.  (a)  A state agency shall require that each bidder or

1-13     proposal offeror for a contract with the agency and each intended

1-14     subcontractor of a bidder or offeror:

1-15                 (1)  disclose in the bid or proposal the current status

1-16     of any license, certificate, or other permit the bidder, offeror,

1-17     or subcontractor is required to have to perform under the contract;

1-18     and

1-19                 (2)  certify, if true, in the bid or proposal that the

1-20     license, certificate, or other permit has not expired or been

1-21     suspended or revoked.

1-22           (b)  A state agency shall include in its requests for bids or

1-23     proposals a statement about the applicability of relevant criminal

1-24     law, including Section 37.10, Penal Code, to presenting information

 2-1     and documentation to the agency in connection with a bid or

 2-2     proposal.  A state agency shall refer to the appropriate

 2-3     authorities for investigation or prosecution any suspected

 2-4     violation of relevant criminal law, including Section 37.10, Penal

 2-5     Code, related to presenting information and documentation to the

 2-6     agency in connection with a bid, proposal, or contract.

 2-7           Sec. 2252.083.  DISCLOSURE OF LICENSING INFORMATION DURING

 2-8     CONTRACT PERFORMANCE.  A state agency shall include in all its

 2-9     contracts for goods or services a provision that requires the

2-10     contractor and subcontractors under the contract to promptly inform

2-11     the agency during the term of the contract:

2-12                 (1)  of any proposed or final action to revoke,

2-13     suspend, or take any other disciplinary action in connection with,

2-14     a license, certificate, or other permit that the contractor or

2-15     subcontractor is required to have to perform under the contract;

2-16     and

2-17                 (2)  whether the license, certificate, or other permit

2-18     has expired.

2-19           SECTION 2.  This Act takes effect September 1, 1997.

2-20           SECTION 3.  The importance of this legislation and the

2-21     crowded condition of the calendars in both houses create an

2-22     emergency and an imperative public necessity that the

2-23     constitutional rule requiring bills to be read on three several

2-24     days in each house be suspended, and this rule is hereby suspended.