By Ellis S.B. No. 1202 74R3775 JRD-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the conditions under which the status as a historically 1-3 underutilized business may be removed. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 1.03, State Purchasing and General 1-6 Services Act (Article 601b, Vernon's Texas Civil Statutes), is 1-7 amended by amending Subsection (a) and adding Subsection (q) to 1-8 read as follows: 1-9 (a) The commission shall certify businesses that are 1-10 historically underutilized businesses. As part of its 1-11 certification procedures, the commission may approve a municipal 1-12 program that certifies historically underutilized businesses under 1-13 substantially the same definition prescribed by Section 1.02(3) of 1-14 this Act and may certify businesses certified by the municipality 1-15 as historically underutilized businesses under this Act. The 1-16 commission may not certify a business as a historically 1-17 underutilized business and may revoke a business's certification as 1-18 a historically underutilized business if the business's primary 1-19 function is to broker or subcontract out to other entities the work 1-20 or functions to be performed under contracts the business is 1-21 awarded. 1-22 (q) The commission or another state agency may not include a 1-23 contract awarded to a historically underutilized business in a 1-24 report made or list submitted under this section if the 2-1 historically underutilized business to which the contract was 2-2 awarded was not in fact responsible for the management, 2-3 supervision, and control of the work or functions performed under 2-4 the contract. The historically underutilized business is presumed 2-5 to have not been in fact responsible for the management, 2-6 supervision, and control of the work or functions performed under 2-7 the contract if the historically underutilized business brokered or 2-8 subcontracted out more than 50 percent of the value of the work 2-9 performed under the contract, unless the contract is a general 2-10 contract under Article 5 of this Act under which the historically 2-11 underutilized business performed the customary functions of a 2-12 general contractor and subcontracted out work in the manner and 2-13 amount that is customary on a similar project. 2-14 SECTION 2. The importance of this legislation and the 2-15 crowded condition of the calendars in both houses create an 2-16 emergency and an imperative public necessity that the 2-17 constitutional rule requiring bills to be read on three several 2-18 days in each house be suspended, and this rule is hereby suspended, 2-19 and that this Act take effect and be in force from and after its 2-20 passage, and it is so enacted.