By Conley                                             H.B. No. 2736
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to state agency reporting of contracting with historically
    1-3  underutilized businesses.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  DEFINITIONS.  In this Act:
    1-6              (1)  "Adjusted total expenditures" means the sum total
    1-7  of purchases, contracts and payments of a state agency other than
    1-8  purchases, contracts, and payments excepted from the definition of
    1-9  total expenditures.
   1-10              (2)  "Commission" means the General Services
   1-11  Commission.
   1-12              (3)  "Comptroller" means the Comptroller of Public
   1-13  Accounts.
   1-14              (4)  "Delegated purchases" means those purchasing
   1-15  functions delegated to a state agency by the commission.
   1-16              (5)  "Department" means the Texas Department of
   1-17  Commerce.
   1-18              (6)  "Historically underutilized businesses" has the
   1-19  meaning assigned to that term by the general appropriations act.
   1-20              (7)  "State agency" means any department, commission,
   1-21  board, office, institution, or other agency in the executive branch
   1-22  of state government.
   1-23        SECTION 2.  REQUIRED REPORTS.  (a)  Each state agency shall
    2-1  submit to the department and commission each December a report
    2-2  reflecting the total number and adjusted total expenditures of
    2-3  purchases, contracts and payments the agency has made with
    2-4  historically underutilized businesses during the prior fiscal year.
    2-5  The report shall include a separate treatment of subcontractor and
    2-6  supplier contracts that the agency has made with historically
    2-7  underutilized businesses.  Each agency shall include with the
    2-8  report a list of historically underutilized businesses with which
    2-9  it has contracted or with which it has made purchases or payments
   2-10  during the reporting year.  Each agency participating in a
   2-11  consortium formed under Sec. 3.01(a)(5), Art. 601b, Revised Civil
   2-12  Statutes shall include with the report a separate treatment of the
   2-13  number and adjusted total expenditures the consortium has made with
   2-14  historically underutilized businesses during the prior fiscal year.
   2-15        (b)  The commission shall compare the historically
   2-16  underutilized businesses list of each agency filed pursuant to this
   2-17  section with the list of historically underutilized businesses
   2-18  certified by the commission and shall categorize each agency list
   2-19  by the gender and ethnicity of each historically underutilized
   2-20  business according to the list of historically underutilized
   2-21  businesses certified by the commission.
   2-22        (c)  Each state agency shall reconcile the report required by
   2-23  Subsection (a) of this section with payment data developed by the
   2-24  comptroller and the records of the agency.  This reconciliation
   2-25  shall distinguish between delegated purchases, purchases, contracts
    3-1  and payments made by the agency because of its inclusion in the
    3-2  state purchasing program conducted by the commission, and other
    3-3  purchases made by the agency, in accordance with (a) of this
    3-4  section.
    3-5        (d)  Reports required to be filed under this section shall
    3-6  not include expenditures for payroll, employee benefits,
    3-7  scholarships, utilities, right-of-way acquisition, real estate
    3-8  leases, commission open market and contract purchases, purchases
    3-9  deleted from the General Services Commissions February 1993 report,
   3-10  and purchases described in Sec. 3.01(a)(1), (2), (3), and (4), Art.
   3-11  601b, Revised Civil Statutes.
   3-12        SECTION 3.  AGENCY RECORDS.  (a)  Each state agency shall
   3-13  maintain continuously the following:
   3-14              (1)  a list of the number and value of delegated
   3-15  purchases made by the state agency during the current fiscal year,
   3-16  with historically underutilized businesses;
   3-17              (2)  the percentage relationship that the total number
   3-18  of historically underutilized business purchases, contracts and
   3-19  subcontracts made by the state agency during the current fiscal
   3-20  year bears to the total number of delegated purchases made by the
   3-21  state agency;
   3-22              (3)  the total expenditures of the state agency with
   3-23  historically underutilized businesses; and
   3-24              (4)  a list of adjusted total expenditures made by each
   3-25  division of the agency with historically underutilized businesses
    4-1  during the current fiscal year.
    4-2        (b)  The commission shall classify these and any other
    4-3  expenditures not included in the above reports in a manner that
    4-4  shows the relative level of opportunity for historically
    4-5  underutilized business vendors offered by the sector or class of
    4-6  commission expenditures.
    4-7        (c)  The commission is to seek the advice of the Governor,
    4-8  legislature and other state agencies in prioritizing business
    4-9  sectors and expenditure codes to pursue identification and
   4-10  development of future historically underutilized businesses
   4-11  business opportunities.
   4-12        SECTION 4.  RULEMAKING AUTHORITY.  The commission and
   4-13  department may adopt rules to implement this Act.
   4-14        SECTION 5.  EMERGENCY.  The importance of this legislation
   4-15  and the crowded condition of the calendars in both houses create an
   4-16  emergency and an imperative public necessity that the
   4-17  constitutional rule requiring bills to be read on three several
   4-18  days in each house be suspended, and this rule is hereby suspended,
   4-19  and that this Act take effect and be in force from and after its
   4-20  passage, and it is so enacted.