82R14113 MTB-D
By: Miles H.B. No. 3356
A BILL TO BE ENTITLED
AN ACT
relating to the state's historically underutilized business
program, including the establishment of a contractor point system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 2161, Government Code, is
amended by adding Section 2161.184 to read as follows:
Sec. 2161.184. POINT SYSTEM. (a) A state agency shall
require a contractor to undertake the good faith efforts described
by this section, to the extent required by the comptroller, on
projects subject to this subchapter.
(b) The comptroller shall adopt rules establishing points
to be awarded for taking each good faith effort and the minimum
number of points required, depending on project size, cost, type,
and other factors considered relevant by the comptroller. In
establishing the point system, the comptroller may not require a
contractor to earn more than 50 points, and the comptroller must
assign each of the efforts listed in Subsections (c)(1) through
(10) at least 10 points. A state agency may require that additional
good faith efforts be taken, as indicated in its bid
specifications.
(c) For purposes of the system established under this
section, good faith efforts include:
(1) contacting historically underutilized businesses
that reasonably could have been expected to submit a quote and that
were known to the contractor or available on state maintained lists
at least 10 days before the date the bid or proposal is due and
notifying the businesses of the nature and scope of the work to be
performed;
(2) making the construction plans, specifications,
and requirements available for review by historically
underutilized businesses or providing those documents to the
businesses at least 10 days before the date the bid or proposal is
due;
(3) breaking down or combining elements of work into
economically feasible units to facilitate historically
underutilized business participation;
(4) working with trade, community, or contractor
organizations for economically disadvantaged persons identified by
the comptroller and included in the bid documents that provide
assistance in recruitment of historically underutilized
businesses;
(5) attending any pre-bid meetings scheduled by the
state agency;
(6) providing assistance in obtaining a required bond
or insurance or providing alternatives to bonding or insurance for
subcontractors;
(7) negotiating in good faith with interested
historically underutilized businesses and not rejecting a business
as unqualified without sound reasons based on the business's
capability and, if a historically underutilized business is
rejected based on lack of qualifications, documenting the reasons
in writing;
(8) providing assistance to an otherwise qualified
historically underutilized business in securing needed equipment,
loan capital, lines of credit, or joint pay agreements, including
waiving credit that is ordinarily required, and assisting
historically underutilized businesses in obtaining the same unit
pricing with the bidder's suppliers in order to help historically
underutilized businesses in establishing credit;
(9) negotiating joint venture and partnership
arrangements with historically underutilized businesses in order
to increase opportunities for historically underutilized business
participation on a state construction or repair project when
possible; and
(10) providing quick pay agreements and policies to
enable historically underutilized business contractors and
suppliers to meet cash flow demands.
SECTION 2. Section 2161.253, Government Code, is amended by
adding Subsections (f) and (g) to read as follows:
(f) If evidence of a good faith effort to implement a
historically underutilized business subcontracting plan required
under Section 2161.252 includes notice to minority or women trade
organizations or development centers to assist in identifying
historically underutilized businesses, the notice must be provided
at least 10 working days before the due date for submission of the
response, including a bid, proposal, offer, or other applicable
expression of interest.
(g) If evidence of a good faith effort to implement a
historically underutilized business subcontracting plan required
under Section 2161.252 includes notice to historically
underutilized businesses that the contractor intends to
subcontract under a contract, the contractor may not require
historically underutilized businesses to respond to the notice
before the 10th working day after the date the notice is provided.
SECTION 3. Section 2161.253, Government Code, as amended by
this Act, applies only to a contract for which a state agency first
advertises or otherwise solicits bids, proposals, offers, or
qualifications, as applicable, on or after September 1, 2011.
SECTION 4. This Act takes effect September 1, 2011.