HB 384 — HISTORICALLY UNDERUTILIZED BUSINESSES

HOUSE BILLSTATE 384GOVERNMENT, 54ELECTIONS THAND LEGISLATURE-INDIAN STATEAFFAIRS OFCOMMITTEE NEWSUBSTITUTE MEXICOFOR -HOUSE FIRSTBILL SESSIO,384 201954TH INTRODUCEDLEGISLATURE BY- AntonioSTATEOFNEWMEXICO- MaestasFIRST SESSION, 2019 4 6 8 10 AN ACT RELATING TO PUBLIC PURCHASING;

ENCOURAGING STATE AGENCIES TO USE 14 HISTORICALLY UNDERUTILIZED BUSINESSES.

[NEW MATERIAL] PURPOSE.--The purpose of the a t m m 21 Historically Underutilized Business Opportunity Act is to d r e 22 stimulate economic development and job creation by promoting c e s k 23 full and equal business opportunities for all businesses by e a n b 24 encouraging and setting goals for the use of historically u [ underutilized businesses by state agencies in all public .212174.1.214155.3 HSEIC/HB 384 purchasing decisions.

"historically underutilized business" means a legally recognized for-profit business organization, corporation, sole proprietorship, partnership or joint venture that has applied for and received a valid historically underutilized business e e 17 underutilized business certificate issued by the generaltaxation servicesand department e e n d 18 revenue department certifying that:

= = l ] 19 (1) it has an average gross revenue for the a l r i 20 preceding three fiscal years that does not exceed five million t e a t dollars ($5,000,000) or an average number of employees for the m m 21 e d r e 22 preceding three fiscal years that does not exceed fifty;

r e 22 c e r c 23 (2) it is a "resident business" as certified e a n b 24 by the taxation and revenue department pursuant to Section u [ 13-1-22 NMSA 1978;

and .212174.1.214155.3 - 2 - HSEIC/HB 384 (3) atas leastcertified fifty-oneby the taxation and revenue department, more than fifty percent of the business is owned by awomen woman or apersons person who isare amembers member of one or more of the following minorities:

"state agency" means any department, commission, council, board, committee, institution, agency, government corporation or educational institution, including any office or officer of the above, that procures, purchases, rents, leases or otherwise acquires items of tangible personal property, services or construction, but does not include the legislative or judicial branch or local public bodies.

[NEW MATERIAL ] DUTIES OF GENERALTAXATION SERVICESAND DEPARTMENT.--TheREVENUE generalDEPARTMENT servicesAND departmentGENERAL shall:SERVICES DEPARTMENT.-- A.

A.The taxation and revenue department shall establish the procedures for:

establishe thee procedures17 for:(1) identification of qualified applicants for e e n d 18 certification;

(1)= identification= l ] 19 (2) approval of qualifiedfacilitating applicantsnonprofit fora certification;l r i 20 agencies;

(2)t approvale a t (3) precertification screening of facilitatingeligibility nonprofitm em 21 e 17d by facilitating nonprofit agencies;

er e n22 dc 18e (3)r precertificationc screening23 (4) certification of eligibilityapplicants =for =e la ]n 19b by24 facilitatinghistorically nonprofitunderutilized agencies;business status;

au l[ r(5) iappeal 20 (4) certification of applicants for t e a tdenial historicallyof underutilizedcertification; business status;

m.214155.3 m- 213 e- dHSEIC/HB r384 e(6) 22revocation (5) appeal of a denial of certification;

and c(7) erecertification. r c 23 (6) revocation of a certification;

e a n b 24 B.

produceThe general services department shall develop an online, searchable database of u [ businesses certified as historically underutilized businesses;businesses.

.212174.1 - 3 - C.

conductThe taxation and revenue department shall develop training sessions and seminars or use other suitable means for informing historically underutilized businesses of opportunities and procedures for doing business with state agencies;agencies.

reviewState andagencies approveshall eachdevelop stateprocedures agency's agency- specific goals for the utilization of historically underutilized businesses;businesses.

and E.

atAt the end of every fiscal year, each state agency shall prepare and publishsubmit a consolidatedreport annualto reportthe general services department that includes:

(1) the total dollar amount of payments made e e 17 by state agencies for the purchase of goods and services;

e e n d 18 (2) the total dollar amount of payments made = = l ] 19 directly to historically underutilized businesses or indirectly a l r i 20 through subcontracts for the purchase of goods and services t e a t directly;

m m 21 e d (3) the total number of contracts awardedand byr e 22 c e 17r statec agencies;23 procurements awarded directly to historically underutilized e a n b 24 businesses or indirectly through subcontracts;

eand eu n[ d 18 (4) the total number of contractsbids orfrom =historically =.214155.3 l- ]4 19- procurementsHSEIC/HB awarded384 directly to historically underutilized a l r i 20 businesses orreceived indirectlyby throughstate subcontracts;agencies.

tF. e a t (5) the total number of bids from historically m m 21 e d r e 22 underutilized businesses received by state agencies;

andThe cgeneral eservices rdepartment cshall 23prepare (6)an aannual comparisonconsolidated ofreport eachbased stateon agency'sthe goalsinformation esubmitted aby n b 24 for use of historically underutilized businesses to the actualstate uagencies. [ purchase of goods and services directly from historically .212174.1 - 4 - underutilized businesses or indirectly through subcontracts.

(3) the state agency's historic utilization of historically underutilized businesses by contracting directly with historically underutilized businesses or indirectly e e 17 through subcontracts;

and e e n d 18 (4) other relevant factors as determined by = = l ] 19 the state agency;

anda el er 17i (5)20 otherB. relevant factors required by the e e n d 18 general services department;

=shall, =before lsoliciting ]bids, 19proposals, B.offers t e a t or other applicable expressions of interest for contracts, m m 21 e d including any renewals, require respondents to submit a plan to r e 22 c e r c 23 identify and attempt to subcontract with applicable e a n b 24 historically underutilized businesses;

shall, before soliciting bids, proposals, offers a l r i 20 or other applicable expressions of interest for contracts, t e a t including any renewals, determine whether subcontracting m m 21 e d r e 22 opportunities are probable under the contract and, if so, c e r c 23 require respondents to submit a plan to subcontract with at e a n b 24 least one historically underutilized business in its response;

shall maintainmake anda compilegood-faith monthlyeffort reportsto thatutilize .212174.1.214155.3 - 5 - provideHSEIC/HB the384 informationhistorically tounderutilized thebusinesses generalin servicescontracts; department required by Subsection E of Section 4 of the Historically Underutilized Business Opportunity Act and any other information required by the general services department;

and D.

shall make a good-faith effort to utilize historically underutilized businesses in contracts;

and E.

- 6 - 138 1510 12 14 16 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .212174.1.214155.3