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.