By: Conley H.B. No. 1868
73R6083 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to assistance to certain small contractors on public works
1-3 projects.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 4, Title 83, Revised Statutes, is amended
1-6 by adding Article 5161 to read as follows:
1-7 Art. 5161. SMALL CONTRACTOR PARTICIPATION ASSISTANCE PROGRAM
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Governmental entity" means a state agency or
1-10 political subdivision of this state.
1-11 (2) "Political subdivision" means a county,
1-12 municipality, school district, or other special district or
1-13 authority of this state. The term includes a corporation created
1-14 by an entity listed by this subdivision.
1-15 (3) "Program" means the small contractor participation
1-16 assistance program created under this article.
1-17 (4) "Public works project" means a construction
1-18 project designed to serve the public necessity, use, or convenience
1-19 that is undertaken and carried out by a governmental entity. The
1-20 term includes a project for the construction, alteration, or repair
1-21 of a public building.
1-22 (5) "Small business concern" has the meaning assigned
1-23 by the Small Business Act (15 U.S.C. Section 631 et seq.) and its
1-24 subsequent amendments.
2-1 (6) "Small contractor" means a contractor that
2-2 operates as a small business concern.
2-3 (7) "State agency" means a board, commission, office,
2-4 department, or other agency in the executive, judicial, or
2-5 legislative branch of state government. The term includes an
2-6 institution of higher education as defined by Section 61.003,
2-7 Education Code, and its subsequent amendments.
2-8 Sec. 2. APPLICATION; EXEMPTIONS FROM OTHER LAW. (a) This
2-9 article applies only to a contract for a public works project, the
2-10 estimated cost of which exceeds $25 million.
2-11 (b) The following laws do not apply to a contract for a
2-12 public works project subject to this article:
2-13 (1) Article 5160, Revised Statutes; and
2-14 (2) Section 3.23(c), Texas Workers' Compensation Act
2-15 (Article 8308-3.23, Vernon's Texas Civil Statutes).
2-16 Sec. 3. SMALL CONTRACTOR PARTICIPATION ASSISTANCE PROGRAM;
2-17 ELEMENTS OF PROGRAM. (a) Each governmental entity shall establish
2-18 a small contractor participation assistance program to ensure full
2-19 opportunity for participation in public works projects by small
2-20 contractors.
2-21 (b) A program established under this section must include:
2-22 (1) a system for the centralized purchase of any
2-23 necessary insurance coverage for the public works project required
2-24 under Section 4 of this article;
2-25 (2) a public outreach plan to provide public
2-26 information about the program and to encourage small contractors to
2-27 participate in the program;
3-1 (3) a technical assistance plan to aid small
3-2 contractors to develop the skills necessary to participate in the
3-3 program in accordance with Section 5 of this article; and
3-4 (4) a financing assistance plan to provide
3-5 administrative and other assistance to small contractors in
3-6 obtaining any necessary financing arrangements to make the
3-7 participation of those contractors possible.
3-8 Sec. 4. INSURANCE REQUIREMENTS. A governmental entity shall
3-9 provide for the centralized purchasing of:
3-10 (1) workers' compensation insurance coverage;
3-11 (2) employer's liability insurance coverage;
3-12 (3) commercial general and excess liability coverage;
3-13 and
3-14 (4) any other analogous coverage that the governmental
3-15 entity considers necessary and reasonable for the particular public
3-16 works project.
3-17 Sec. 5. TECHNICAL ASSISTANCE PLAN. A technical assistance
3-18 plan adopted by a governmental entity must include information on
3-19 and assistance in:
3-20 (1) estimating bids, the bidding process, scheduling,
3-21 and understanding bid documents;
3-22 (2) reading construction drawings and other analogous
3-23 documents;
3-24 (3) business accounting, bonds, and bond requirements;
3-25 (4) negotiation with general contractors; and
3-26 (5) any other technical and administrative assistance
3-27 considered appropriate and necessary given the complexity and scope
4-1 of the particular public works project.
4-2 SECTION 2. (a) This Act takes effect September 1, 1993.
4-3 (b) A governmental entity to which Article 5161, Revised
4-4 Statutes, as added by this Act, applies shall establish the small
4-5 contractor participation assistance program required by that
4-6 article before January 1, 1994. Notwithstanding Section 2(b) of
4-7 that article, Article 5160, Revised Statutes, and Section 3.23(c),
4-8 Texas Workers' Compensation Act (Article 8308-3.23, Vernon's Texas
4-9 Civil Statutes), apply to contracts entered into before the program
4-10 is in effect.
4-11 SECTION 3. The importance of this legislation and the
4-12 crowded condition of the calendars in both houses create an
4-13 emergency and an imperative public necessity that the
4-14 constitutional rule requiring bills to be read on three several
4-15 days in each house be suspended, and this rule is hereby suspended.