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.