By:  West                                              S.B. No. 933
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to state agency reporting of contracting with historically
    1-2  underutilized businesses.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  DEFINITIONS.  In this Act:
    1-5              (1)  "Adjusted total expenditures" means the sum total
    1-6  of purchases, contracts, and payments of a state agency other than
    1-7  purchases, contracts, and payments excepted from the definition of
    1-8  total expenditures.
    1-9              (2)  "Commission" means the General Services
   1-10  Commission.
   1-11              (3)  "Comptroller" means the comptroller of public
   1-12  accounts.
   1-13              (4)  "Delegated purchases" means those purchasing
   1-14  functions delegated to a state agency by the commission.
   1-15              (5)  "Department" means the Texas Department of
   1-16  Commerce.
   1-17              (6)  "Historically underutilized businesses" has the
   1-18  meaning assigned to that term by the General Appropriations Act.
   1-19              (7)  "State agency" means any department, commission,
   1-20  board, office, institution, or other agency in the executive branch
   1-21  of state government.
   1-22        SECTION 2.  REQUIRED REPORTS.  (a)  Each state agency shall
   1-23  submit to the department and commission each December a report
    2-1  reflecting the total number and adjusted total expenditures of
    2-2  purchases, contracts, and payments the agency has made with
    2-3  historically underutilized businesses during the prior fiscal year.
    2-4  The report shall include a separate treatment of the total number
    2-5  and adjusted total expenditures of subcontractor and supplier
    2-6  contracts that the agency has made with historically underutilized
    2-7  businesses.  Each agency shall include with the report a list of
    2-8  historically underutilized businesses with which it has contracted,
    2-9  from which it has made purchases, or to which it has made payments
   2-10  during the reporting year.  Each state agency participating in a
   2-11  consortium formed under Subdivision (5), Subsection (a), Section
   2-12  3.01, State Purchasing and General Services Act (Article 601b,
   2-13  Vernon's Texas Civil Statutes), shall include with the report a
   2-14  separate treatment of the number and adjusted total expenditures of
   2-15  purchases, contracts, and payments the agency has made with
   2-16  historically underutilized businesses through the consortium during
   2-17  the prior fiscal year.
   2-18        (b)  The commission shall compare the historically
   2-19  underutilized businesses list of each state agency filed pursuant
   2-20  to this section with the list of historically underutilized
   2-21  businesses certified by the commission and shall categorize each
   2-22  agency list by the gender and ethnicity of each historically
   2-23  underutilized business according to the list of historically
   2-24  underutilized businesses certified by the commission.
   2-25        (c)  Each state agency shall reconcile the report required by
    3-1  Subsection (a) of this section with payment data developed by the
    3-2  comptroller and the records of the agency.  This reconciliation
    3-3  shall distinguish between delegated purchases, purchases,
    3-4  contracts, and payments made by the agency because of its inclusion
    3-5  in the state purchasing program conducted by the commission, and
    3-6  other purchases made by the agency, in accordance with Subsection
    3-7  (a) of this section.
    3-8        (d)  Reports required to be filed under this section shall
    3-9  not include expenditures for payroll, employee benefits,
   3-10  scholarships, utilities, right-of-way acquisition, real estate
   3-11  leases, commission open market and contract purchases, purchases
   3-12  deleted from the February, 1993, report of the commission, and
   3-13  purchases described in Subdivisions (1), (2), (3), and (4),
   3-14  Subsection (a), Section 3.01, State Purchasing and General Services
   3-15  Act (Article 601b, Vernon's Texas Civil Statutes).
   3-16        SECTION 3.  AGENCY RECORDS.  (a)  Each state agency shall
   3-17  maintain continuously the following:
   3-18              (1)  a list of the number of delegated purchases made
   3-19  by the state agency during the current fiscal year with
   3-20  historically underutilized businesses;
   3-21              (2)  the percentage relationship that the total number
   3-22  of historically underutilized business purchases, contracts, and
   3-23  subcontracts made by the state agency during the current fiscal
   3-24  year bears to the total number of delegated purchases made by the
   3-25  state agency;
    4-1              (3)  the total expenditures of the state agency with
    4-2  historically underutilized businesses; and
    4-3              (4)  a list of adjusted total expenditures made by each
    4-4  management unit within a division or office within the agency with
    4-5  historically underutilized businesses during the current fiscal
    4-6  year.
    4-7        (b)  The commission shall classify these and any other
    4-8  expenditures not included in the above reports in a manner that
    4-9  shows the relative level of opportunity for historically
   4-10  underutilized business vendors offered by the sector or class of
   4-11  commission expenditures.
   4-12        (c)  The commission is to seek the advice of the governor,
   4-13  the legislature, and other state agencies in prioritizing business
   4-14  sectors and expenditure codes to pursue identification and
   4-15  development of future historically underutilized businesses'
   4-16  business opportunities.
   4-17        SECTION 4.  RULEMAKING AUTHORITY.  The commission and
   4-18  department may adopt rules to implement this Act.
   4-19        SECTION 5.  EMERGENCY.  The importance of this legislation
   4-20  and the crowded condition of the calendars in both houses create an
   4-21  emergency and an imperative public necessity that the
   4-22  constitutional rule requiring bills to be read on three several
   4-23  days in each house be suspended, and this rule is hereby suspended,
   4-24  and that this Act take effect and be in force from and after its
   4-25  passage, and it is so enacted.