By West S.B. No. 499
74R4284 JRD-D
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. Article 5, State Purchasing and General Services
1-6 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
1-7 adding Section 5.371 to read as follows:
1-8 Sec. 5.371. SMALL CONTRACTOR PARTICIPATION ASSISTANCE
1-9 PROGRAM BY CERTAIN OTHER AGENCIES. (a) This section applies only
1-10 to public works projects for which the estimated project cost
1-11 exceeds $20 million that are undertaken by or for the Texas
1-12 Department of Transportation, the Texas Department of Criminal
1-13 Justice, The University of Texas System, or any component of The
1-14 University of Texas System. Notwithstanding other law, this section
1-15 applies without regard to:
1-16 (1) the source of funds for a public works project;
1-17 (2) whether a public works project is otherwise
1-18 excepted from the application of this article by Section 5.13 or
1-19 5.14 of this Act or other law; or
1-20 (3) whether the public works project is undertaken
1-21 under the authority of this Act or other law.
1-22 (b) In this section:
1-23 (1) "Program" means the small contractor participation
1-24 assistance program created under this section.
2-1 (2) "Public works project" means a construction
2-2 project, including a project to construct something other than a
2-3 building, designed to serve the public necessity, use, or
2-4 convenience that is undertaken and carried out by a state agency
2-5 described by Subsection (a) of this section. The term includes a
2-6 project for the construction, alteration, or repair of a public
2-7 building or of a road, bridge, or highway.
2-8 (3) "Small business concern" has the meaning assigned
2-9 by the Small Business Act (15 U.S.C. Section 631 et seq.).
2-10 (4) "Small contractor" means a contractor that
2-11 operates as a small business concern.
2-12 (c) Not later than January 1, 1996, a state agency described
2-13 by Subsection (a) of this section shall establish a small
2-14 contractor participation assistance program to ensure full
2-15 opportunity for participation in public works projects by small
2-16 contractors. A program established under this section must
2-17 include:
2-18 (1) a system for the centralized purchase of any
2-19 necessary insurance coverage for the public works project that is
2-20 required under Subsection (d) of this section;
2-21 (2) a public outreach plan to provide public
2-22 information about the program and to encourage small contractors to
2-23 participate in the program;
2-24 (3) a technical assistance plan to aid small
2-25 contractors to develop the skills necessary to participate in the
2-26 program in accordance with Subsection (e) of this section; and
2-27 (4) a financing assistance plan to provide
3-1 administrative and other assistance to small contractors in
3-2 obtaining any necessary financing arrangements to make the
3-3 participation of those contractors possible.
3-4 (d) A state agency described by Subsection (a) of this
3-5 section shall provide for the centralized purchasing of:
3-6 (1) workers' compensation insurance coverage;
3-7 (2) employer's liability insurance coverage;
3-8 (3) commercial general and excess liability coverage;
3-9 (4) payment and performance bonds; and
3-10 (5) any other analogous coverage the agency considers
3-11 necessary and reasonable for the particular public works project.
3-12 (e) A technical assistance plan adopted by a state agency
3-13 described by Subsection (a) of this section must include
3-14 information on and assistance in:
3-15 (1) estimating bids, the bidding process, scheduling,
3-16 and understanding bid documents;
3-17 (2) reading construction drawings and other analogous
3-18 documents;
3-19 (3) business accounting, bonds, and bond requirements;
3-20 (4) negotiation with general contractors; and
3-21 (5) any other technical and administrative assistance
3-22 considered appropriate and necessary given the complexity and scope
3-23 of the particular public works project.
3-24 (f) A state agency described by Subsection (a) of this
3-25 section may negotiate contracts with persons or firms having
3-26 expertise in the areas that must be included in the agency's
3-27 technical assistance plan to provide the information and
4-1 assistance.
4-2 SECTION 2. Section 5.37(b), State Purchasing and General
4-3 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
4-4 amended to read as follows:
4-5 (b) This section applies only to a <contract for a> public
4-6 works project for which the estimated cost exceeds $20 million.
4-7 SECTION 3. This Act takes effect September 1, 1995.
4-8 SECTION 4. The importance of this legislation and the
4-9 crowded condition of the calendars in both houses create an
4-10 emergency and an imperative public necessity that the
4-11 constitutional rule requiring bills to be read on three several
4-12 days in each house be suspended, and this rule is hereby suspended.