85R12062 YDB-D     By: Miles S.B. No. 1738       A BILL TO BE ENTITLED   AN ACT   relating to historically underutilized businesses.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2161.065(a), Government Code, is amended   to read as follows:          (a)  The commission shall design a mentor-protege program to   foster long-term relationships between prime contractors and   historically underutilized businesses and to increase the ability   of historically underutilized businesses to contract with the state   or to receive subcontracts under a state contract. Each state   agency with a biennial appropriation that exceeds $5 [$10] million   shall implement the program designed by the commission.          SECTION 2.  Sections 2161.123(d) and (f), Government Code,   are amended to read as follows:          (d)  The comptroller [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 comptroller [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 comptroller's [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;                (4)  conducted its procurement program in accordance   with the good faith effort methodology set out in comptroller    [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; and                      (C)  an accurate representation of the number of   historically underutilized businesses in each category.          (f)  If the state auditor reports to the comptroller   [commission] that a state agency is not complying with this   section, the comptroller [commission] shall assist the agency in   complying with this section and shall prepare for inclusion with   the agency's strategic plan a written plan for increasing the   agency's use of historically underutilized businesses.          SECTION 3.  Section 2161.251(a), Government Code, is amended   to read as follows:          (a)  This subchapter applies to all contracts entered into by   a state agency with an expected value of $50,000 [$100,000] or more,   including:                (1)  contracts for the acquisition of a good or   service; and                (2)  contracts for or related to the construction of a   public building, road, or other public work.          SECTION 4.  Section 2161.252(a), Government Code, is amended   to read as follows:          (a)  Each state agency that considers entering into a   contract with an expected value of $50,000 [$100,000] or more   shall, before the agency solicits bids, proposals, offers, or other   applicable expressions of interest for the contract, determine   whether there will be subcontracting opportunities under the   contract. If the state agency determines that there is that   probability, the agency shall require that each bid, proposal,   offer, or other applicable expression of interest for the contract   include a historically underutilized business subcontracting plan.          SECTION 5.  The changes in law made by this Act apply only to   a contract for goods or services that is entered into on or after   the effective date of this Act. A contract entered into before the   effective date of this Act is governed by the law in effect on the   date the contract was entered into, and the former law is continued   in effect for that purpose.          SECTION 6.  This Act takes effect September 1, 2017.