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.