2005S0573-1  03/10/05


By:  Lucio                                                        S.B. No. 1594


A BILL TO BE ENTITLED

AN ACT

relating to a small contractor assistance program for bidding on 
construction contracts at institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter T, Chapter 51, Education Code, is 
amended by adding Section 51.785 to read as follows:
	Sec. 51.785.  SMALL CONTRACTOR PARTICIPATION ASSISTANCE 
PROGRAM.  (a)  In this section:
		(1)  "Governing board" has the meaning assigned by 
Section 61.003.   
		(2)  "Public works project" means a construction 
project designed to serve the public necessity, use, or convenience 
that is undertaken and executed by a governing board, including a 
project for the construction, alteration, or repair of a public 
building.
		(3)  "Small contractor" means a contractor that 
operates as a small-business concern as defined by 15 U.S.C. 
Section 78c.
		(4)  "University system" has the meaning assigned by 
Section 61.003. 
	(b)  This section applies only to a contract or aggregated 
contracts for public works projects that have an estimated cost of 
more than $20 million.
	(c)  A university system shall maintain a small contractor 
participation assistance program to ensure full opportunity for 
participation in public works projects by small contractors.  The 
program must include:
		(1)  a system for the centralized purchase of insurance 
coverage for public works projects required under Subsection (d);
		(2)  a public outreach plan to:                                        
			(A)  provide public information about the 
program; and              
			(B)  encourage small contractors to participate 
in the program;     
		(3)  a technical assistance plan meeting the 
requirements of Subsection (e) to aid small contractors in 
developing the skills necessary to participate in the program; and
		(4)  a financing assistance plan to provide 
administrative and other assistance to small contractors in 
obtaining necessary financing arrangements to make the 
participation of those contractors possible.
	(d)  A university system shall provide for the centralized 
purchasing under this section of:
		(1)  workers' compensation insurance coverage;                         
		(2)  employer's liability insurance coverage;                          
		(3)  commercial general and excess liability coverage;                 
		(4)  payment and performance bonds; and                                
		(5)  other similar coverage the governing board 
considers necessary and reasonable for a public works project.
	(e)  A technical assistance plan adopted by the university 
system must include information on and assistance concerning:
		(1)  bid estimation, the bidding process, scheduling, 
and the understanding of bid documents;
		(2)  the reading of construction drawings and other 
analogous documents;
		(3)  business accounting, bonds, and bond 
requirements;              
		(4)  negotiation with general contractors; and                         
		(5)  other technical and administrative matters 
considered appropriate and necessary given the complexity and scope 
of a public works project.
	(f)  The university system may negotiate contracts with 
persons or firms having expertise in the areas that must be included 
in the system's technical assistance plan to provide the 
information and assistance.
	SECTION 2.  This Act takes effect September 1, 2005.