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.