79R5501 MCK-D

By:  Carona                                                       S.B. No. 1243



A BILL TO BE ENTITLED

AN ACT

relating to the provision of a preference in certain state 
construction contracts for contractors that provide health 
benefits to employees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter F, Chapter 2166, Government Code, is 
amended by adding Section 2166.2527 to read as follows:
	Sec. 2166.2527.  PREFERENCE FOR VENDORS THAT PROVIDE HEALTH 
BENEFITS COVERAGE.  (a)  The commission shall give a preference to a 
contractor that provides health benefits coverage that is at least 
equivalent to basic coverage provided under the state employees 
group benefit program provided under Chapter 1551, Insurance Code, 
to each full-time employee and the employee's family.
	(b)  To qualify for the preference under this section, the 
contractor must pay at least 75 percent of the health insurance 
premiums for each full-time employee who participates in the 
insurance program and at least 75 percent of the health insurance 
premiums for each dependent of a full-time employee who elects to 
participate in dependent coverage under the insurance program.
	(c)  The commission shall give a preference to a contractor 
who meets the health insurance requirements of this section over 
any other contractor who does not meet the health insurance 
requirements of this section, if the contractor's bid does not 
exceed 107 percent of the bid of a contractor that does not provide 
the health insurance coverage required by this section to the 
contractor's employees.
	(d)  A contract that is awarded to a contractor using the 
preference under this section must include terms that:
		(1)  allow the commission to terminate the contract if 
the contractor at any time during the life of the contract fails to 
maintain the health insurance coverage required by this section; 
and
		(2)  require the contractor to use the preference 
described by this section when awarding a subcontract under the 
contract.
	SECTION 2.  Section 2166.2527, Government Code, as added by 
this Act, applies only to a building construction contract for 
which the solicitation of bids or proposals, request for proposals, 
or similar required notification as to the project is published on 
or after September 1, 2005.  A building construction contract for 
which the solicitation of bids or proposals, request for proposals, 
or similar required notification as to the project is published 
before September 1, 2005, is governed by the law in effect at the 
time the solicitation, request, or notification is published, and 
that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.