80R5851 MCK-D

By: Bailey H.B. No. 1690

A BILL TO BE ENTITLED

AN ACT

relating to the provision of a preference in certain state and school district 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 benefits 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 100 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 that meets the health insurance requirements of this section over any other contractor that 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. Subchapter B, Chapter 44, Education Code, is amended by adding Section 44.0355 to read as follows:

Sec. 44.0355. PREFERENCE FOR CONSTRUCTION CONTRACTORS THAT PROVIDE HEALTH BENEFITS COVERAGE. (a) In selecting a contractor for the construction, rehabilitation, alteration, or repair of a facility, a school district 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 benefits 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 100 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) A school district shall give a preference to a contractor that meets the health insurance requirements of this section over any other contractor that 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 school district 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 3. Section 2166.2527, Government Code, and Section 44.0355, Education Code, as added by this Act, apply 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, 2007. 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, 2007, 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 4. This Act takes effect September 1, 2007.