Relating to the evidence of a good faith effort of a state agency to reach goals established for historically underutilized businesses.
The impact of HB4053 is significant for state agencies as it tightens the accountability for attempts to engage HUBs in government contracts and services. By mandating additional evidence of effort and specific plans for future improvement, the bill aims to enhance transparency and encourage state agencies to actively pursue partnerships with these businesses. This could lead to increased participation of HUBs in government procurement, thereby promoting diversity and inclusion within state contracting processes.
House Bill 4053 amends the Government Code to establish additional requirements for state agencies regarding their efforts to meet goals set for historically underutilized businesses (HUBs). The bill specifies that if an agency fails to meet these goals over a two-year period, it must provide a detailed statement explaining the reasons for the shortfall. Additionally, the agency is required to submit an affidavit confirming that it made a good faith effort to meet these goals, as well as outline a plan for measures it will adopt to improve future compliance with the stated objectives.
There may be points of contention surrounding the level of accountability imposed by the bill. Opponents could argue that the additional requirements placed on state agencies might create bureaucratic hurdles that could hinder their operations or discourage them from taking risks in contract management. Conversely, supporters would likely contend that the law is necessary to ensure that the state actively promotes equal opportunities for historically underutilized businesses, thereby addressing long-standing disparities in government procurement.
If passed, this legislation is expected to take effect on September 1, 2017, encouraging agencies to immediately adjust their operations and compliance processes to align with the new requirements.