| 1 | 1 | | 87R7278 RDS-D |
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| 2 | 2 | | By: J. Johnson of Harris H.B. No. 2938 |
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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 state agency audits of a contractor's compliance with a |
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| 8 | 8 | | historically underutilized business subcontracting plan. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 2161.253(b) and (c), Government Code, |
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| 11 | 11 | | are amended to read as follows: |
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| 12 | 12 | | (b) To the extent that subcontracts are not contracted for |
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| 13 | 13 | | as originally submitted in the historically underutilized business |
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| 14 | 14 | | subcontracting plan, the contractor shall, not later than the 60th |
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| 15 | 15 | | day before the date the contract between the contractor and the |
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| 16 | 16 | | agency expires, report to the state agency all the circumstances |
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| 17 | 17 | | that explain that fact and describe the good faith efforts made to |
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| 18 | 18 | | find and subcontract with another historically underutilized |
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| 19 | 19 | | business. |
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| 20 | 20 | | (c) The state agency shall audit the contractor's |
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| 21 | 21 | | compliance with the historically underutilized business |
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| 22 | 22 | | subcontracting plan. In determining whether the contractor made the |
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| 23 | 23 | | required good faith effort, the agency may not consider the success |
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| 24 | 24 | | or failure of the contractor to subcontract with historically |
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| 25 | 25 | | underutilized businesses in any specific quantity. The agency's |
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| 26 | 26 | | determination is restricted to considering factors indicating good |
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| 27 | 27 | | faith, including: |
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| 28 | 28 | | (1) outreach by the contractor to businesses listed in |
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| 29 | 29 | | the directory of certified historically underutilized businesses |
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| 30 | 30 | | compiled by the comptroller under Section 2161.064; |
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| 31 | 31 | | (2) proper identification of historically |
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| 32 | 32 | | underutilized businesses as potential subcontractors; and |
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| 33 | 33 | | (3) promotion of a fair and competitive bidding |
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| 34 | 34 | | process for all potential subcontractors. |
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| 35 | 35 | | SECTION 2. Section 2161.124, Government Code, is amended by |
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| 36 | 36 | | adding Subsection (d) to read as follows: |
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| 37 | 37 | | (d) A state agency shall include in the agency's report |
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| 38 | 38 | | under this section any report the agency received from a contractor |
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| 39 | 39 | | under Section 2161.253(b) during the year covered by the report. |
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| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2021. |
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