| 1 | 1 | | 85R12062 YDB-D |
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| 2 | 2 | | By: Miles S.B. No. 1738 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to historically underutilized businesses. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 2161.065(a), Government Code, is amended |
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| 10 | 10 | | to read as follows: |
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| 11 | 11 | | (a) The commission shall design a mentor-protege program to |
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| 12 | 12 | | foster long-term relationships between prime contractors and |
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| 13 | 13 | | historically underutilized businesses and to increase the ability |
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| 14 | 14 | | of historically underutilized businesses to contract with the state |
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| 15 | 15 | | or to receive subcontracts under a state contract. Each state |
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| 16 | 16 | | agency with a biennial appropriation that exceeds $5 [$10] million |
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| 17 | 17 | | shall implement the program designed by the commission. |
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| 18 | 18 | | SECTION 2. Sections 2161.123(d) and (f), Government Code, |
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| 19 | 19 | | are amended to read as follows: |
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| 20 | 20 | | (d) The comptroller [commission] and the state auditor |
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| 21 | 21 | | shall cooperate to develop procedures providing for random periodic |
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| 22 | 22 | | monitoring of state agency compliance with this section. The state |
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| 23 | 23 | | auditor shall report to the comptroller [commission] a state agency |
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| 24 | 24 | | that is not complying with this section. In determining whether a |
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| 25 | 25 | | state agency is making a good faith effort to comply, the state |
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| 26 | 26 | | auditor shall consider whether the agency: |
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| 27 | 27 | | (1) has adopted rules under Section 2161.003; |
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| 28 | 28 | | (2) has used the comptroller's [commission's] |
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| 29 | 29 | | directory under Section 2161.064 and other resources to identify |
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| 30 | 30 | | historically underutilized businesses that are able and available |
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| 31 | 31 | | to contract with the agency; |
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| 32 | 32 | | (3) made good faith, timely efforts to contact |
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| 33 | 33 | | identified historically underutilized businesses regarding |
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| 34 | 34 | | contracting opportunities; |
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| 35 | 35 | | (4) conducted its procurement program in accordance |
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| 36 | 36 | | with the good faith effort methodology set out in comptroller |
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| 37 | 37 | | [commission] rules; and |
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| 38 | 38 | | (5) established goals for contracting with |
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| 39 | 39 | | historically underutilized businesses in each procurement category |
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| 40 | 40 | | based on: |
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| 41 | 41 | | (A) scheduled fiscal year expenditures; [and] |
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| 42 | 42 | | (B) the availability of historically |
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| 43 | 43 | | underutilized businesses in each category as determined by rules |
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| 44 | 44 | | adopted under Section 2161.002; and |
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| 45 | 45 | | (C) an accurate representation of the number of |
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| 46 | 46 | | historically underutilized businesses in each category. |
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| 47 | 47 | | (f) If the state auditor reports to the comptroller |
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| 48 | 48 | | [commission] that a state agency is not complying with this |
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| 49 | 49 | | section, the comptroller [commission] shall assist the agency in |
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| 50 | 50 | | complying with this section and shall prepare for inclusion with |
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| 51 | 51 | | the agency's strategic plan a written plan for increasing the |
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| 52 | 52 | | agency's use of historically underutilized businesses. |
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| 53 | 53 | | SECTION 3. Section 2161.251(a), Government Code, is amended |
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| 54 | 54 | | to read as follows: |
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| 55 | 55 | | (a) This subchapter applies to all contracts entered into by |
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| 56 | 56 | | a state agency with an expected value of $50,000 [$100,000] or more, |
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| 57 | 57 | | including: |
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| 58 | 58 | | (1) contracts for the acquisition of a good or |
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| 59 | 59 | | service; and |
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| 60 | 60 | | (2) contracts for or related to the construction of a |
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| 61 | 61 | | public building, road, or other public work. |
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| 62 | 62 | | SECTION 4. Section 2161.252(a), Government Code, is amended |
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| 63 | 63 | | to read as follows: |
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| 64 | 64 | | (a) Each state agency that considers entering into a |
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| 65 | 65 | | contract with an expected value of $50,000 [$100,000] or more |
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| 66 | 66 | | shall, before the agency solicits bids, proposals, offers, or other |
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| 67 | 67 | | applicable expressions of interest for the contract, determine |
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| 68 | 68 | | whether there will be subcontracting opportunities under the |
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| 69 | 69 | | contract. If the state agency determines that there is that |
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| 70 | 70 | | probability, the agency shall require that each bid, proposal, |
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| 71 | 71 | | offer, or other applicable expression of interest for the contract |
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| 72 | 72 | | include a historically underutilized business subcontracting plan. |
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| 73 | 73 | | SECTION 5. The changes in law made by this Act apply only to |
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| 74 | 74 | | a contract for goods or services that is entered into on or after |
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| 75 | 75 | | the effective date of this Act. A contract entered into before the |
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| 76 | 76 | | effective date of this Act is governed by the law in effect on the |
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| 77 | 77 | | date the contract was entered into, and the former law is continued |
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| 78 | 78 | | in effect for that purpose. |
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| 79 | 79 | | SECTION 6. This Act takes effect September 1, 2017. |
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