By:  Barrientos                                       S.B. No. 1820
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     Relating to the awarding of contract(s) for private projects for
 1-2     which municipal entities have provided funding.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1,  Chapter 20, Revised Statutes, is amended by
 1-5     adding to read as follows
 1-6           Sec.1 DEFINITIONS.
 1-7           (1)  "OWNER" means an individual, corporation, partnership,
 1-8     association, and any other legal entity.
 1-9           (2)  "MUNICIPAL" means an incorporated municipality in the
1-10     U.S. governed under a charter granted by the State and, governed by
1-11     officials elected by the people.
1-12           (3)  "BUILDING" means a structure, erection, alteration,
1-13     demolition, or excavation on, connected with, or beneath the
1-14     surface of real property.
1-15           Sec. 2 PRIORITY OF MUNICIPALITY ENTITY OR MUNICIPALITY AREA
1-16     CONTRACTOR(S).
1-17           (a)  On any private project where a municipal entity provides
1-18     funding to an Owner for the construction of a building, road or
1-19     other structure, the Owner of the project shall give the highest
1-20     priority in awarding the contract(s) for said project(s) to
1-21     contractor(s) from the municipality or surrounding area of the
1-22     municipality
 2-1           (b)  The contractor(s) given the priority under (a) shall be
 2-2     contractor(s) who have a current principal place of business in the
 2-3     municipality or surrounding municipality area and have maintained
 2-4     said principal place of business for at least five (5) years prior
 2-5     to the awarding of the contract(s).
 2-6           (c)  If a contract(s) are not awarded to an contractor(s)
 2-7     from the municipality or the municipality area, the Owner must give
 2-8     a written report to the municipality of its documented good faith
 2-9     efforts to find a qualified contactor(s) in the area.
2-10           Sec. 3 PENALTY.
2-11           (a)  If the Owner does not sufficiently document its efforts
2-12     to award the contract(s) to a municipal, or municipal area
2-13     contractor(s) under section two (2), then the municipal entity
2-14     shall have the right to reconsider the funding of the project and
2-15     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.
2-22           (a)  This ACT takes effect September 1, 1999.
2-23           Sec. 5. EMERGENCY CLAUSE.
2-24           (a)  The importance of this legislation and the crowded
2-25     condition of the calendars in both houses create an emergency and
2-26     an imperative public necessity that the constitutional rule
 3-1     requiring bills to be read on three several days in each house be
 3-2     suspended, and this rule is hereby suspended.