By Ellis                                              S.B. No. 1635
         76R8719 E                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the state's program for contracting with historically
 1-3     underutilized businesses.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 2161, Government Code, is
 1-6     amended by adding Sections 2161.065 and 2161.066 to read as
 1-7     follows:
 1-8           Sec. 2161.065.  MENTOR-PROTEGE PROGRAM.  (a)  The commission
 1-9     shall design a mentor-protege program to foster long-term
1-10     relationships between prime contractors and historically
1-11     underutilized businesses and to increase the ability of
1-12     historically underutilized businesses to contract with the state or
1-13     to receive subcontracts under a state contract.  Each state agency
1-14     shall implement the program designed by the commission.
1-15           (b)  The program must be designed so that each state agency
1-16     is directed to offer appropriate incentives to its contractors in
1-17     connection with any agency contract that offers subcontracting
1-18     opportunities if the contractor agrees to and is successful in:
1-19                 (1)  subcontracting with a historically underutilized
1-20     business in performing the contract; and
1-21                 (2)  providing business and developmental assistance to
1-22     the historically underutilized business subcontractor that is
1-23     designed to increase the historically underutilized business's
1-24     technical and business capabilities to perform more complex work.
 2-1           (c)  Participation in the program must be voluntary for both
 2-2     the contractor and the historically underutilized business
 2-3     subcontractor.
 2-4           Sec. 2161.066.  HISTORICALLY UNDERUTILIZED BUSINESS FORUMS.
 2-5     (a)  The commission shall design a program of forums, to be held at
 2-6     agency offices where historically underutilized businesses are
 2-7     invited by agencies to deliver technical and business presentations
 2-8     that demonstrate their capability to do business with the agency:
 2-9                 (1)  to senior managers and procurement personnel at
2-10     state agencies that acquire goods and services of a type supplied
2-11     by the historically underutilized businesses; and
2-12                 (2)  to contractors with the state who may be
2-13     subcontracting for goods and services of a type supplied by the
2-14     historically underutilized businesses.
2-15           (b)  Each state agency shall participate in the program by
2-16     sending senior managers and procurement personnel to attend
2-17     relevant presentations and by informing the agency's contractors
2-18     about presentations that may be relevant to anticipated
2-19     subcontracting opportunities.
2-20           (c)  Each state agency that has a historically underutilized
2-21     businesses coordinator shall:
2-22                 (1)  design its own program that is modeled to the
2-23     extent appropriate on the program developed by the commission; and
2-24                 (2)  sponsor presentations by historically
2-25     underutilized businesses at the agency.
2-26           (d)  The commission shall sponsor presentations given at
2-27     locations that can easily be attended by representatives of and
 3-1     contractors with state agencies that do not have a historically
 3-2     underutilized businesses coordinator.
 3-3           (e)  The commission and each state agency that has a
 3-4     historically underutilized businesses coordinator shall
 3-5     aggressively identify and notify individual historically
 3-6     underutilized businesses regarding opportunities to make a
 3-7     presentation regarding the types of goods and services supplied by
 3-8     the historically underutilized business and shall advertise in
 3-9     appropriate trade publications that target historically
3-10     underutilized businesses regarding opportunities to make a
3-11     presentation.
3-12           SECTION 2.  The importance of this legislation and the
3-13     crowded condition of the calendars in both houses create an
3-14     emergency and an imperative public necessity that the
3-15     constitutional rule requiring bills to be read on three several
3-16     days in each house be suspended, and this rule is hereby suspended,
3-17     and that this Act take effect and be in force from and after its
3-18     passage, and it is so enacted.