HBA-NIK H.B. 2430 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2430 By: Dukes State Affairs 3/31/1999 Introduced BACKGROUND AND PURPOSE Program initiatives that facilitate long-term business relationships between historically underutilized businesses (HUBs) and prime contractors, or that highlight HUB capabilities, have increased the participation of such businesses in procurement activities. The mentor-protege program provided for in this bill creates a subcontractual relationship under the prime contractor's contract with the state. The purpose of the program is to increase the participation of HUBs in major procurement actions and other programs critical to the state's business. To participate in the program, the mentor must have, or be competing for, a prime contract with the state, and the protege must be a subcontractor of the mentor. Participation in the program is voluntary for both the mentor and the protege. Additionally, this bill provides for HUB forums, which will function by creating awareness among technical managers and prime contractors regarding available HUB capability, will have the goal of increasing the participation of HUBs in Texas procurements. H.B. 2430 creates the mentor-protege program to be implemented by all state agencies, as well as the HUB forum. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 2161, Government Code, by adding Sections 2161.065 and 2161.066, as follows: Sec. 2161.065. MENTOR-PROTEGE PROGRAM. (a) Requires the General Services Commission (commission) to design a mentor-protege program to foster long-term relationships between prime contractors and historically underutilized businesses (HUBs) and to increase the ability of businesses to contract with the state or to receive subcontracts under a state contract. Requires each state agency to implement the program designed by the commission. (b) Provides that the program must be designed so that each state agency is directed to offer appropriate incentives to its contractors in connection with any agency contract that offers subcontracting opportunities if the contractor agrees to and is successful in subcontracting with a HUB and providing assistance to HUB subcontractor designed to increase the business's ability to perform more complex work. (c) Provides that participation in the program must be voluntary for both the contractor and HUB subcontractor. Sec. 2161.066. HISTORICALLY UNDERUTILIZED BUSINESS FORUMS. (a) Requires the commission to design a program of forums, to be held at agency offices where HUBs are invited by agencies to deliver technical and HUB presentations that demonstrate their capability to do business with the agency to specified managers, personnel, and contractors. (b) Requires each state agency to participate in the program by sending senior managers and procurement personnel to attend relevant presentations and by informing the agency's contractors about presentations that may be relevant to anticipated subcontracting opportunities. (c) Requires each state agency that has a HUB coordinator (business coordinator) to design its own program that is modeled to the extent appropriate on the program developed by the commission, and sponsor presentations by HUBs at the agency. (d) Requires the commission to sponsor presentations given at locations that can easily be attended by representatives of and contractors with state agencies that do not have a HUB coordinator. (e) Requires the commission and each state agency that has a HUB coordinator to aggressively identify and notify individual HUBs regarding opportunities to make a presentation regarding opportunities to make a presentation regarding the types of goods and services supplied by HUB. Requires the commission and each state agency that has a HUB coordinator to advertise in appropriate trade publications that target HUBs regarding opportunities to make a presentation. SECTION 2. Emergency clause. Effective date: upon passage.