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A BILL TO BE ENTITLED
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AN ACT
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relating to the state's historically underutilized business |
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program, including the establishment of a contractor point system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 2161, Government Code, is |
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amended by adding Section 2161.184 to read as follows: |
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Sec. 2161.184. POINT SYSTEM. (a) A state agency shall |
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require a contractor to undertake the good faith efforts described |
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by this section, to the extent required by the comptroller, on |
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projects subject to this subchapter. |
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(b) The comptroller shall adopt rules establishing points |
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to be awarded for taking each good faith effort and the minimum |
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number of points required, depending on project size, cost, type, |
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and other factors considered relevant by the comptroller. In |
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establishing the point system, the comptroller may not require a |
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contractor to earn more than 50 points, and the comptroller must |
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assign each of the efforts listed in Subsections (c)(1) through |
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(10) at least 10 points. A state agency may require that additional |
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good faith efforts be taken, as indicated in its bid |
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specifications. |
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(c) For purposes of the system established under this |
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section, good faith efforts include: |
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(1) contacting historically underutilized businesses |
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that reasonably could have been expected to submit a quote and that |
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were known to the contractor or available on state maintained lists |
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at least 10 days before the date the bid or proposal is due and |
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notifying the businesses of the nature and scope of the work to be |
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performed; |
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(2) making the construction plans, specifications, |
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and requirements available for review by historically |
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underutilized businesses or providing those documents to the |
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businesses at least 10 days before the date the bid or proposal is |
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due; |
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(3) breaking down or combining elements of work into |
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economically feasible units to facilitate historically |
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underutilized business participation; |
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(4) working with trade, community, or contractor |
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organizations for economically disadvantaged persons identified by |
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the comptroller and included in the bid documents that provide |
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assistance in recruitment of historically underutilized |
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businesses; |
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(5) attending any pre-bid meetings scheduled by the |
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state agency; |
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(6) providing assistance in obtaining a required bond |
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or insurance or providing alternatives to bonding or insurance for |
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subcontractors; |
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(7) negotiating in good faith with interested |
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historically underutilized businesses and not rejecting a business |
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as unqualified without sound reasons based on the business's |
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capability and, if a historically underutilized business is |
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rejected based on lack of qualifications, documenting the reasons |
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in writing; |
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(8) providing assistance to an otherwise qualified |
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historically underutilized business in securing needed equipment, |
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loan capital, lines of credit, or joint pay agreements, including |
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waiving credit that is ordinarily required, and assisting |
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historically underutilized businesses in obtaining the same unit |
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pricing with the bidder's suppliers in order to help historically |
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underutilized businesses in establishing credit; |
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(9) negotiating joint venture and partnership |
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arrangements with historically underutilized businesses in order |
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to increase opportunities for historically underutilized business |
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participation on a state construction or repair project when |
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possible; and |
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(10) providing quick pay agreements and policies to |
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enable historically underutilized business contractors and |
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suppliers to meet cash flow demands. |
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SECTION 2. Section 2161.253, Government Code, is amended by |
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adding Subsections (f) and (g) to read as follows: |
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(f) If evidence of a good faith effort to implement a |
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historically underutilized business subcontracting plan required |
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under Section 2161.252 includes notice to minority or women trade |
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organizations or development centers to assist in identifying |
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historically underutilized businesses, the notice must be provided |
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at least 10 working days before the due date for submission of the |
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response, including a bid, proposal, offer, or other applicable |
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expression of interest. |
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(g) If evidence of a good faith effort to implement a |
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historically underutilized business subcontracting plan required |
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under Section 2161.252 includes notice to historically |
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underutilized businesses that the contractor intends to |
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subcontract under a contract, the contractor may not require |
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historically underutilized businesses to respond to the notice |
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before the 10th working day after the date the notice is provided. |
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SECTION 3. Section 2161.253, Government Code, as amended by |
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this Act, applies only to a contract for which a state agency first |
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advertises or otherwise solicits bids, proposals, offers, or |
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qualifications, as applicable, on or after September 1, 2011. |
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SECTION 4. This Act takes effect September 1, 2011. |