By Coleman                                            H.B. No. 2912
       74R6877 JRD-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to assisting small businesses to participate in state
    1-3  public works contracting.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 5.37, State Purchasing and General
    1-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    1-7  amended to read as follows:
    1-8        Sec. 5.37.  Small Contractor Participation Assistance
    1-9  Program.  (a)  In this section:
   1-10              (1)  "Program" means the small contractor participation
   1-11  assistance program created under this section.
   1-12              (2)  "Public works project" means a construction
   1-13  project, including a project to construct something other than a
   1-14  building, designed to serve the public necessity, use, or
   1-15  convenience that is undertaken and carried out by the commission or
   1-16  by another state agency.  The term includes a project for the
   1-17  construction, alteration, or repair of a public building or
   1-18  facility or of a road, bridge, or highway.
   1-19              (3)  "Small business concern" has the meaning assigned
   1-20  by the Small Business Act (15 U.S.C. Section 631 et seq.) <and its
   1-21  subsequent amendments>.
   1-22              (4)  "Small contractor" means a contractor that
   1-23  operates as a small business concern.
   1-24        (b)  This section applies only to a <contract for a> public
    2-1  works project for which the estimated cost exceeds $20 million.
    2-2        (c)  The <Not later than January 1, 1994, the> commission and
    2-3  each state agency that undertakes a public works project to which
    2-4  this section applies shall establish a small contractor
    2-5  participation assistance program to ensure full opportunity for
    2-6  participation in public works projects by small contractors.  A
    2-7  program established under this section must include:
    2-8              (1)  a system for the centralized purchase of any
    2-9  necessary insurance coverage for the public works project that is
   2-10  required under Subsection (d) of this section;
   2-11              (2)  a public outreach plan to provide public
   2-12  information about the program and to encourage small contractors to
   2-13  participate in the program;
   2-14              (3)  a technical assistance plan to aid small
   2-15  contractors to develop the skills necessary to participate in the
   2-16  program in accordance with Subsection (e) of this section; and
   2-17              (4)  a financing assistance plan to provide
   2-18  administrative and other assistance to small contractors in
   2-19  obtaining any necessary financing arrangements to make the
   2-20  participation of those contractors possible.
   2-21        (d)  The commission, or other state agency as applicable,
   2-22  shall provide for the centralized purchasing of:
   2-23              (1)  workers' compensation insurance coverage;
   2-24              (2)  employer's liability insurance coverage;
   2-25              (3)  commercial general and excess liability coverage;
   2-26              (4)  payment and performance bonds; and
   2-27              (5)  any other analogous coverage the commission or
    3-1  other state agency considers necessary and reasonable for the
    3-2  particular public works project.
    3-3        (e)  A technical assistance plan adopted by the commission or
    3-4  other state agency must include information on and assistance in:
    3-5              (1)  estimating bids, the bidding process, scheduling,
    3-6  and understanding bid documents;
    3-7              (2)  reading construction drawings and other analogous
    3-8  documents;
    3-9              (3)  business accounting, bonds, and bond requirements;
   3-10              (4)  negotiation with general contractors; and
   3-11              (5)  any other technical and administrative assistance
   3-12  considered appropriate and necessary given the complexity and scope
   3-13  of the particular public works project.
   3-14        (f)  The commission or other state agency may negotiate
   3-15  contracts with persons or firms having expertise in the areas that
   3-16  must be included in the <commission's> technical assistance plan of
   3-17  the commission or other state agency to provide the information and
   3-18  assistance.
   3-19        (g)  Notwithstanding other law, this section applies to a
   3-20  public works project without regard to:
   3-21              (1)  the source of funds for the public works project;
   3-22              (2)  whether the public works project is otherwise
   3-23  excepted from the application of this article by Section 5.13 or
   3-24  5.14 of this Act or other law; or
   3-25              (3)  whether the public works project is undertaken
   3-26  under the authority of this Act or other law.
   3-27        SECTION 2.  This Act takes effect September 1, 1995.
    4-1        SECTION 3.  The importance of this legislation and the
    4-2  crowded condition of the calendars in both houses create an
    4-3  emergency and an imperative public necessity that the
    4-4  constitutional rule requiring bills to be read on three several
    4-5  days in each house be suspended, and this rule is hereby suspended.