By: Lucio, et al. S.B. No. 704

(In the Senate - Filed February 15, 2007; March 6, 2007, read first time and referred to Committee on State Affairs; April 24, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 0; April 24, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 704 By: Harris

A BILL TO BE ENTITLED

AN ACT

relating to the small contractor participation assistance program for certain state construction projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2166.259, Government Code, is amended by amending Subsections (a), (b), (d), and (e) and adding Subsections (b-1), (b-2), (b-3), and (b-4) to read as follows:

(a) This section applies only in relation to [a contract for] a public works project that will involve a contract or aggregated multiple contracts with [has] an estimated cost of more than $1 [$20] million.

(b) The commission shall maintain a small contractor participation assistance program as a division of the state historically underutilized business program to ensure full opportunity for participation in public works projects by small contractors or historically underutilized businesses. The program must include a:

(1) system for the centralized purchase of necessary insurance coverage for the public works project that is required under Subsection (c);

(2) public outreach plan to:

(A) provide public information about the program; and

(B) encourage small contractors to participate in the program;

(3) technical assistance plan to aid small contractors in developing the skills necessary to participate in the program in accordance with Subsection (d); [and]

(4) 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; and

(5) method developed with guidance from the Texas Department of Insurance to assist small contractors in:

(A) preparing bond application packages for public works projects in a format acceptable to bond underwriters; and

(B) obtaining bonds required to participate in public works projects.

(b-1) The commission shall designate a commission employee to serve as small contractor participation assistance coordinator. In addition to any other responsibilities, the coordinator shall:

(1) administer the small contractor participation assistance program established under this section;

(2) with the assistance of the Texas Department of Insurance, provide to small contractors technical assistance and training related to preparing bond application packages and obtaining bonds; and

(3) with the assistance of the facilities construction and space management division of the commission, provide to small contractors technical assistance related to participation in the program.

(b-2) The small contractor participation assistance coordinator shall submit an annual report describing the activities and progress of the program to the governor, the lieutenant governor, and the speaker of the house of representatives and to the program manager of the state historically underutilized business program of the commission, for inclusion in the commission's consolidated report under Section 2161.121(e).

(b-3) The small contractor participation assistance coordinator reports to the program manager of the state historically underutilized business program. The program manager shall ensure that the coordinator faithfully adheres to the program rules of the small contractor participation assistance program.

(b-4) Funding appropriated to the commission for the small contractor participation assistance program may only be used for that program.

(d) A technical assistance plan adopted by the commission must include information on and assistance in:

(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 the public works project; and

(6) small contractor safety training to ensure compliance with federal jobsite safety standards.

(e) The commission shall [may] negotiate contracts with persons or firms having expertise and any required license in the areas that must be included in the commission's technical assistance plan to provide the information and assistance.

SECTION 2. This Act takes effect September 1, 2007.

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