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78R827 SMH-D
By: Ellis S.B. No. 506
A BILL TO BE ENTITLED
AN ACT
relating to requiring, as a condition of eligibility to bid on an
oil, gas, or other mineral lease on certain state land, a plan for
procuring goods and services from or participating with
historically underutilized businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 32, Natural Resources
Code, is amended by adding Section 32.108 to read as follows:
Sec. 32.108. PROCUREMENT FROM OR PARTICIPATION WITH
HISTORICALLY UNDERUTILIZED BUSINESSES. (a) In this section,
"historically underutilized business" has the meaning assigned by
Section 2161.001, Government Code.
(b) To be eligible to bid on an oil, gas, or other mineral
lease, a person must submit to the board a plan acceptable to the
board specifying how the person will:
(1) procure goods and services from historically
underutilized businesses; and
(2) participate with historically underutilized
businesses in the production of oil, gas, or other minerals from
land leased under this subchapter.
(c) The lease must contain, as a provision of the lease that
must be fulfilled, the plan that the lessee submitted before the
lease sale. The lessee shall make good faith efforts to implement
the plan.
(d) If the lessee does not implement the plan, the lessee
shall report to the board all the circumstances that explain that
fact and describe the good faith efforts made to implement the plan.
(e) The board shall audit the lessee's compliance with the
plan. If the lessee does not implement the plan, the board shall
determine whether the lessee made good faith efforts to do so. In
determining whether the lessee acted in good faith, the board may
not consider the success or failure of the lessee in:
(1) procuring goods and services in any specific
quantity from historically underutilized businesses; or
(2) participating to any specific extent with
historically underutilized businesses in the production of oil,
gas, or other minerals from land leased under this subchapter.
(f) If the board determines that the lessee failed to
implement the plan in good faith, the board, in addition to any
other remedies, may bar the lessee from bidding at any future lease
sale held under this subchapter.
SECTION 2. Subchapter D, Chapter 66, Education Code, is
amended by adding Section 66.665 to read as follows:
Sec. 66.665. PROCUREMENT FROM OR PARTICIPATION WITH
HISTORICALLY UNDERUTILIZED BUSINESSES. (a) In this section,
"historically underutilized business" has the meaning assigned by
Section 2161.001, Government Code.
(b) To be eligible to bid on an oil and gas lease, a person
must submit to the board a plan acceptable to the board specifying
how the person will:
(1) procure goods and services from historically
underutilized businesses; and
(2) participate with historically underutilized
businesses in the production of oil and gas from land leased under
this subchapter.
(c) The lease must contain, as a provision of the lease that
must be fulfilled, the plan that the lessee submitted before the
lease sale. The lessee shall make good faith efforts to implement
the plan.
(d) If the lessee does not implement the plan, the lessee
shall report to the board all the circumstances that explain that
fact and describe the good faith efforts made to implement the plan.
(e) The board shall audit the lessee's compliance with the
plan. If the lessee does not implement the plan, the board shall
determine whether the lessee made good faith efforts to do so. In
determining whether the lessee acted in good faith, the board may
not consider the success or failure of the lessee in:
(1) procuring goods and services in any specific
quantity from historically underutilized businesses; or
(2) participating to any specific extent with
historically underutilized businesses in the production of oil and
gas from land leased under this subchapter.
(f) If the board determines that the lessee failed to
implement the plan in good faith, the board, in addition to any
other remedies, may bar the lessee from bidding at any future lease
sale held under this subchapter.
SECTION 3. Subchapter D, Chapter 85, Education Code, is
amended by adding Section 85.555 to read as follows:
Sec. 85.555. PROCUREMENT FROM OR PARTICIPATION WITH
HISTORICALLY UNDERUTILIZED BUSINESSES. (a) In this section,
"historically underutilized business" has the meaning assigned by
Section 2161.001, Government Code.
(b) To be eligible to bid on an oil, gas, sulphur, mineral
ore, or other mineral lease, a person must submit to the board a
plan acceptable to the board specifying how the person will:
(1) procure goods and services from historically
underutilized businesses; and
(2) participate with historically underutilized
businesses in the production of oil, gas, sulphur, mineral ore, or
other minerals from land leased under this subchapter.
(c) The lease must contain, as a provision of the lease that
must be fulfilled, the plan that the lessee submitted before the
lease sale. The lessee shall make good faith efforts to implement
the plan.
(d) If the lessee does not implement the plan, the lessee
shall report to the board all the circumstances that explain that
fact and describe the good faith efforts made to implement the plan.
(e) The board shall audit the lessee's compliance with the
plan. If the lessee does not implement the plan, the board shall
determine whether the lessee made good faith efforts to do so. In
determining whether the lessee acted in good faith, the board may
not consider the success or failure of the lessee in:
(1) procuring goods and services in any specific
quantity from historically underutilized businesses; or
(2) participating to any specific extent with
historically underutilized businesses in the production of oil,
gas, sulphur, mineral ore, or other minerals from land leased under
this subchapter.
(f) If the board determines that the lessee failed to
implement the plan in good faith, the board, in addition to any
other remedies, may bar the lessee from bidding at any future lease
sale held under this subchapter.
SECTION 4. Subchapter D, Chapter 109, Education Code, is
amended by adding Section 109.645 to read as follows:
Sec. 109.645. PROCUREMENT FROM OR PARTICIPATION WITH
HISTORICALLY UNDERUTILIZED BUSINESSES. (a) In this section,
"historically underutilized business" has the meaning assigned by
Section 2161.001, Government Code.
(b) To be eligible to bid on an oil, gas, sulphur, or other
mineral lease, a person must submit to the board a plan acceptable
to the board specifying how the person will:
(1) procure goods and services from historically
underutilized businesses; and
(2) participate with historically underutilized
businesses in the production of oil, gas, sulphur, or other
minerals from land leased under this subchapter.
(c) The lease must contain, as a provision of the lease that
must be fulfilled, the plan that the lessee submitted before the
lease sale. The lessee shall make good faith efforts to implement
the plan.
(d) If the lessee does not implement the plan, the lessee
shall report to the board all the circumstances that explain that
fact and describe the good faith efforts made to implement the plan.
(e) The board shall audit the lessee's compliance with the
plan. If the lessee does not implement the plan, the board shall
determine whether the lessee made good faith efforts to do so. In
determining whether the lessee acted in good faith, the board may
not consider the success or failure of the lessee in:
(1) procuring goods and services in any specific
quantity from historically underutilized businesses; or
(2) participating to any specific extent with
historically underutilized businesses in the production of oil,
gas, sulphur, or other minerals from land leased under this
subchapter.
(f) If the board determines that the lessee failed to
implement the plan in good faith, the board, in addition to any
other remedies, may bar the lessee from bidding at any future lease
sale held under this subchapter.
SECTION 5. (a) This Act takes effect September 1, 2003.
(b) The changes in law made by this Act apply only to the
sale of a lease for oil, gas, or other minerals for which notice is
given on or after the effective date of this Act. The sale of a
lease for oil, gas, or other minerals for which notice was given
before the effective date of this Act is governed by the law as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.