80R13009 BEF-F
 
  By: Miles H.B. No. 2604
 
Substitute the following for H.B. No. 2604:
 
  By:  Miles C.S.H.B. No. 2604
 
A BILL TO BE ENTITLED
AN ACT
relating to planning and administration of the state's historically
underutilized business program.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 2161.002(c), Government Code, is amended
to read as follows:
       (c)  In adopting rules to administer this chapter, the
commission shall adopt rules that are based on the results of the
disparity study commissioned by the commission and ["State of Texas
Disparity Study, A Report to the Texas Legislature as Mandated by
H.B. 2626, 73rd Legislature, December 1994"(] prepared by Mason
Tillman Associates, Ltd. [National Economic Research Associates,
Inc.).] The commission shall revise the rules in response to the
findings of any updates of the study that are prepared on behalf of
the state.
       SECTION 2.  Sections 2161.123(d) and (e), Government Code,
are amended to read as follows:
       (d)  The commission and the state auditor shall cooperate to
develop procedures providing for random periodic monitoring of
state agency compliance with this section. The state auditor shall
report to the commission 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;
and
             (5)  established goals for contracting with
historically underutilized businesses in each procurement category
based on:
                   (A)  scheduled fiscal year expenditures; and
                   (B)  the availability of historically
underutilized businesses in each category as determined by rules
adopted under Section 2161.002.
       (e)  In conducting an audit of an agency's compliance with
this section or an agency's making of a good faith effort to
implement the plan adopted under this section, the state auditor
shall [not] consider the success or failure of the agency to
contract with historically underutilized businesses in accordance
with the agency's goals described by Subsection (d)(5) [in any
specific quantity. The state auditor's review shall be restricted
to the agency's procedural compliance with Subsection (d)].
       SECTION 3.  Section 2161.127, Government Code, is amended to
read as follows:
       Sec. 2161.127.  LEGISLATIVE APPROPRIATIONS REQUESTS.  (a) 
Each state agency must include as part of its legislative
appropriations request a detailed report for consideration by the
budget committees of the legislature that shows the extent to which
the agency complied with this chapter and rules of the commission
adopted under this chapter during the two calendar years preceding
the calendar year in which the request is submitted. To the extent
the state agency did not comply, the report must demonstrate the
reasons for that fact. The extent to which a state agency complies
with this chapter and rules of the commission adopted under this
chapter is considered a performance measure for purposes of the
appropriations process.
       (b)  The report under Subsection (a) must include:
             (1)  the agency's goals established under Section
2161.123(d)(5) for contracting with historically underutilized
businesses during the two calendar years preceding the calendar
year in which the request is submitted;
             (2)  a statement regarding whether the goals
established under Section 2161.123(d)(5) were met during the two
calendar years preceding the calendar year in which the request is
submitted; and
             (3)  if the goals established under Section
2161.123(d)(5) were not met during the two calendar years preceding
the calendar year in which the request is submitted:
                   (A)  a statement of the percentage by which the
agency's actual use of historically underutilized businesses
deviated from the agency's goals; and
                   (B)  an explanation of why the goals were not met.
       SECTION 4.  The Texas Building and Procurement Commission
shall commission a disparity study to be prepared by Mason Tillman
Associates, Ltd., and delivered to the commission not later than
October 1, 2007.
       SECTION 5.  Not later than January 1, 2008, the Texas
Building and Procurement Commission shall adopt rules under Section
2161.002(c), Government Code, as amended by this Act.
       SECTION 6.  This Act takes effect September 1, 2007.