By Longoria H.B. No. 3735 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the awarding of contract(s) for private projects for 1-3 which municipal entities have provided funding 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 20, Revised Statutes, is amended by 1-6 adding to read as follows 1-7 Sec. 1 DEFINITIONS. 1-8 (1) "OWNER" means an individual, corporation, 1-9 partnership, association, and any other legal entity. 1-10 (2) "MUNICIPAL" means an incorporated municipality in 1-11 the U.S., governed under a charter granted by the State and, 1-12 governed by officials elected by the people. 1-13 (3) "BUILDING" means a structure, erection, 1-14 alteration, demolition, or excavation on, connected with, or 1-15 beneath the surface of real property. 1-16 Sec. 2 PRIORITY OF MUNICIPALITY ENTITY OR MUNICIPALITY AREA 1-17 CONTRACTOR(S) (a) On any private project where a municipal entity 1-18 provides funding to an Owner for the construction of a building, 1-19 road or other structure, the Owner of the project shall give the 1-20 highest priority in awarding the contract(s) for said project(s) to 1-21 contractor(s) from the municipality or surrounding area of the 2-1 municipality. 2-2 (b) The contractor(s) given the priority under (a), shall be 2-3 contractor(s) who have a current principal place of business in the 2-4 municipality or surrounding municipality area and have maintained 2-5 said principal place of business for at least five (5) years prior 2-6 to the awarding of the contract(s) 2-7 (c) If a contract(s) are not awarded to an contractor(s) 2-8 from the municipality or the municipality area, the Owner must give 2-9 a written report to the municipality of its documented good faith 2-10 efforts to find a qualified contractor(s) in the area. 2-11 Sec. 3 PENALTY. (a) If the Owner does not sufficiently 2-12 document its efforts to award the contract(s) to a municipal, or 2-13 municipal area contractor(s) under section two (2), then the 2-14 municipal entity shall have the right to reconsider the funding of 2-15 the project and withdraw the funds provided for the project. 2-16 (b) If, after review of the documentation, the municipality 2-17 is not satisfied that a municipal, or municipal area contractor(s) 2-18 was given the highest priority as a "responsible bidder" for the 2-19 project, then the municipality may, at its option, reconsider the 2-20 funding of the project and withdraw the funds for the project. 2-21 Sec. 4 EFFECTIVE DATE. (a) This ACT takes effect September 2-22 1, 1999. 2-23 Sec. 5 EMERGENCY CLAUSE. (a) The importance of this 2-24 legislation and the crowded condition of the calendars in both 2-25 houses create an emergency and an imperative public necessity that 3-1 the constitutional rule requiring bills to be read on three several 3-2 days in each house be suspended, and this rule is hereby suspended.