By:  West                                                         S.B. No. 1005


A BILL TO BE ENTITLED

AN ACT

relating to a state agency that is not complying with the 
requirement to make a good faith effort to increase the agency's use 
of historically underutilized businesses in purchasing and public 
works contracting.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsections (d) and (f), Section 2161.123, 
Government Code, are amended to read as follows:
	(d)  The commission and the state auditor shall cooperate to 
develop procedures to periodically monitor state agency compliance 
with this section.  The state auditor shall report to the 
commission, the Senate Finance Committee, and the House 
Appropriations Committee a state agency that is not complying with 
this section.  In determining whether a state agency is making a 
good faith effort to comply, the state auditor shall consider 
whether the agency:
		(1)  has adopted rules under Section 2161.003;                                
		(2)  has used the commission's directory under Section 
2161.064 and other resources to identify historically 
underutilized businesses that are able and available to contract 
with the agency;
		(3)  made good faith, timely efforts to contact 
identified historically underutilized businesses regarding 
contracting opportunities; and
		(4)  conducted its procurement program in accordance 
with the good faith effort methodology set out in commission rules.
	(f)  If the state auditor reports under Subsection (d) [to 
the commission] that a state agency is not complying with this 
section:
		(1)  [,] the commission shall assist the agency in 
complying;
		(2)  the agency shall, not later than the 21st day after 
the date of the state auditor's report under Subsection (d), send to 
the state auditor, the Legislative Audit Committee, the Senate 
Finance Committee, and the House Appropriations Committee a letter 
that:
			(A)  outlines the actions that the agency will 
take to comply with the good faith effort requirements of this 
section, including actions to comply with the procedures specified 
under Subsection (d); and
			(B)  states the time by which the agency expects 
to have accomplished each of the actions it will take; and
		(3)  the agency shall send written notification to the 
state auditor, the Legislative Audit Committee, the Senate Finance 
Committee, and the House Appropriations Committee when the agency 
is in compliance with the good faith effort requirements of this 
section.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.