By West                                                S.B. No. 257
       74R1445 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to establishing a good faith effort checklist to guide
    1-3  state agency efforts in assisting historically underutilized
    1-4  businesses to contract with the state and to auditing and enforcing
    1-5  state agency compliance with the state's purchasing assistance
    1-6  goals for those businesses.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8        SECTION 1.  Article 1, State Purchasing and General Services
    1-9  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   1-10  adding Section 1.05 to read as follows:
   1-11        Sec. 1.05.  GOOD FAITH EFFORT CHECKLIST; COMPLIANCE WITH
   1-12  PURCHASING ASSISTANCE GOALS FOR HISTORICALLY UNDERUTILIZED
   1-13  BUSINESSES.  (a)  A state agency shall whenever appropriate take
   1-14  the following actions when contracting for the purchase of
   1-15  supplies, materials, services, or equipment, or for the
   1-16  construction of a public work, as part of the agency's efforts to
   1-17  assist historically underutilized businesses to receive state
   1-18  contracts or business related to state contracts.  The agency
   1-19  shall:
   1-20              (1)  provide timely notice of a contracting opportunity
   1-21  to at least five historically underutilized businesses that have
   1-22  the ability to perform the contract;
   1-23              (2)  advertise the contracting opportunity in general
   1-24  circulation media, trade association media, and media that focus on
    2-1  serving one or more kinds of historically underutilized businesses;
    2-2              (3)  provide timely written notice of a contracting
    2-3  opportunity to a reasonable number of historically underutilized
    2-4  businesses that may be interested in receiving the contract;
    2-5              (4)  effectively use the services of minority, women,
    2-6  and community organization contractor groups, local, state, and
    2-7  federal business assistance offices, and other organizations that
    2-8  provide assistance in identifying historically underutilized
    2-9  businesses that have the ability to perform the contract;
   2-10              (5)  use appropriate media to widely disseminate
   2-11  information about the contracting opportunity to increase the
   2-12  likelihood that interested historically underutilized businesses
   2-13  will learn of the opportunity, including media such as direct mail,
   2-14  direct phone contact, local newspapers, the Texas Register, trade
   2-15  journals, journals of professional organizations, electronic
   2-16  bulletin boards, electronic mail, and diskette;
   2-17              (6)  inform appropriate persons and organizations who
   2-18  can help widely disseminate information about the contracting
   2-19  opportunity to increase the likelihood that interested historically
   2-20  underutilized businesses will learn of the opportunity, including
   2-21  various minority and women chambers of commerce, trade
   2-22  associations, building trade associations, and contractor
   2-23  associations, state senators and state representatives, and black,
   2-24  Hispanic, and women caucuses in the legislature;
   2-25              (7)  contact historically underutilized businesses
   2-26  after the initial solicitation of bids or offers to determine with
   2-27  certainty whether the contacted businesses are interested in the
    3-1  contracting opportunity;
    3-2              (8)  divide contract work or purchases into the
    3-3  smallest reasonable units to enhance the possibility of
    3-4  historically underutilized business participation in the
    3-5  contracting opportunity;
    3-6              (9)  provide interested historically underutilized
    3-7  businesses with adequate information about bonding and insurance
    3-8  requirements, the plans, specifications, and scope of the work, and
    3-9  other requirements for the contract;
   3-10              (10)  award a contract to a historically underutilized
   3-11  business that qualified as the lowest responsible bidder;
   3-12              (11)  negotiate in good faith with interested
   3-13  historically underutilized businesses whenever negotiation is
   3-14  allowed; and
   3-15              (12)  document the reasons for rejecting an offer or
   3-16  bid by a historically underutilized business, send a written
   3-17  rejection notice that includes the reasons for rejection to the
   3-18  historically underutilized business, and on request meet with the
   3-19  historically underutilized business to discuss the reasons for
   3-20  rejection.
   3-21        (b)  The state auditor shall audit a state agency's
   3-22  compliance with the good faith effort checklist when the auditor
   3-23  conducts a compliance audit of the agency.  The state auditor each
   3-24  biennium shall audit for compliance with the good faith effort
   3-25  checklist each state agency that the auditor estimates will spend
   3-26  more than $1 million on the purchase of goods and services during
   3-27  the biennium.
    4-1        (c)  The commission may inspect the state auditor's reports
    4-2  on the results of audits conducted under Subsection (b) of this
    4-3  section.  The commission may also require a state agency to send
    4-4  information to the commission that demonstrates whether the agency
    4-5  is, whenever appropriate, taking the actions required under the
    4-6  good faith effort checklist.  If the commission finds that a state
    4-7  agency is not making the good faith effort required by state law to
    4-8  assist historically underutilized businesses to receive state
    4-9  contracts or business related to state contracts, the commission
   4-10  may revoke purchasing authority that the commission delegated to
   4-11  the agency under Section 3.06 of this Act or that the commission
   4-12  delegated to the agency by rule under Section 3.08(a) of this Act.
   4-13        SECTION 2.  The importance of this legislation and the
   4-14  crowded condition of the calendars in both houses create an
   4-15  emergency and an imperative public necessity that the
   4-16  constitutional rule requiring bills to be read on three several
   4-17  days in each house be suspended, and this rule is hereby suspended,
   4-18  and that this Act take effect and be in force from and after its
   4-19  passage, and it is so enacted.