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.