87R7278 RDS-D
By: J. Johnson of Harris H.B. No. 2938
A BILL TO BE ENTITLED
AN ACT
relating to state agency audits of a contractor's compliance with a
historically underutilized business subcontracting plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2161.253(b) and (c), Government Code,
are amended to read as follows:
(b) To the extent that subcontracts are not contracted for
as originally submitted in the historically underutilized business
subcontracting plan, the contractor shall, not later than the 60th
day before the date the contract between the contractor and the
agency expires, report to the state agency all the circumstances
that explain that fact and describe the good faith efforts made to
find and subcontract with another historically underutilized
business.
(c) The state agency shall audit the contractor's
compliance with the historically underutilized business
subcontracting plan. In determining whether the contractor made the
required good faith effort, the agency may not consider the success
or failure of the contractor to subcontract with historically
underutilized businesses in any specific quantity. The agency's
determination is restricted to considering factors indicating good
faith, including:
(1) outreach by the contractor to businesses listed in
the directory of certified historically underutilized businesses
compiled by the comptroller under Section 2161.064;
(2) proper identification of historically
underutilized businesses as potential subcontractors; and
(3) promotion of a fair and competitive bidding
process for all potential subcontractors.
SECTION 2. Section 2161.124, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) A state agency shall include in the agency's report
under this section any report the agency received from a contractor
under Section 2161.253(b) during the year covered by the report.
SECTION 3. This Act takes effect September 1, 2021.