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.