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A BILL TO BE ENTITLED
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AN ACT
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relating to state agency audits of a contractor's compliance with a |
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historically underutilized business subcontracting plan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2161.253(b) and (c), Government Code, |
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are amended to read as follows: |
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(b) To the extent that subcontracts are not contracted for |
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as originally submitted in the historically underutilized business |
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subcontracting plan, the contractor shall, not later than the 60th |
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day before the date the contract between the contractor and the |
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agency expires, report to the state agency all the circumstances |
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that explain that fact and describe the good faith efforts made to |
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find and subcontract with another historically underutilized |
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business. |
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(c) The state agency shall audit the contractor's |
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compliance with the historically underutilized business |
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subcontracting plan. In determining whether the contractor made the |
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required good faith effort, the agency may not consider the success |
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or failure of the contractor to subcontract with historically |
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underutilized businesses in any specific quantity. The agency's |
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determination is restricted to considering factors indicating good |
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faith, including: |
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(1) outreach by the contractor to businesses listed in |
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the directory of certified historically underutilized businesses |
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compiled by the comptroller under Section 2161.064; |
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(2) proper identification of historically |
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underutilized businesses as potential subcontractors; and |
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(3) promotion of a fair and competitive bidding |
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process for all potential subcontractors. |
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SECTION 2. Section 2161.124, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) A state agency shall include in the agency's report |
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under this section any report the agency received from a contractor |
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under Section 2161.253(b) during the year covered by the report. |
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SECTION 3. This Act takes effect September 1, 2021. |