1-1 By: West S.B. No. 933 1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read 1-3 first time and referred to Committee on Economic Development; 1-4 April 6, 1993, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 7, Nays 0; April 6, 1993, 1-6 sent to printer.) 1-7 COMMITTEE VOTE 1-8 Yea Nay PNV Absent 1-9 Parker x 1-10 Lucio x 1-11 Ellis x 1-12 Haley x 1-13 Harris of Dallas x 1-14 Harris of Tarrant x 1-15 Leedom x 1-16 Madla x 1-17 Rosson x 1-18 Shapiro x 1-19 Wentworth x 1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 933 By: Haley 1-21 A BILL TO BE ENTITLED 1-22 AN ACT 1-23 relating to state agency reporting of contracting with historically 1-24 underutilized businesses. 1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-26 SECTION 1. DEFINITIONS. In this Act: 1-27 (1) "Adjusted total expenditures" means the sum total 1-28 of purchases, contracts, and payments of a state agency other than 1-29 purchases, contracts, and payments excepted from the definition of 1-30 total expenditures. 1-31 (2) "Commission" means the General Services 1-32 Commission. 1-33 (3) "Comptroller" means the comptroller of public 1-34 accounts. 1-35 (4) "Delegated purchases" means those purchasing 1-36 functions delegated to a state agency by the commission. 1-37 (5) "Department" means the Texas Department of 1-38 Commerce. 1-39 (6) "Historically underutilized businesses" has the 1-40 meaning assigned to that term by the General Appropriations Act. 1-41 (7) "State agency" means any department, commission, 1-42 board, office, institution, or other agency in the executive branch 1-43 of state government. 1-44 SECTION 2. REQUIRED REPORTS. (a) Each state agency shall 1-45 submit to the department and commission each December a report 1-46 reflecting the total number and adjusted total expenditures of 1-47 purchases, contracts, and payments the agency has made with 1-48 historically underutilized businesses during the prior fiscal year. 1-49 The report shall include a separate treatment of the total number 1-50 and adjusted total expenditures of subcontractor and supplier 1-51 contracts that the agency has made with historically underutilized 1-52 businesses. Each agency shall include with the report a list of 1-53 historically underutilized businesses with which it has contracted, 1-54 from which it has made purchases, or to which it has made payments 1-55 during the reporting year. Each state agency participating in a 1-56 consortium formed under Subdivision (5), Subsection (a), Section 1-57 3.01, State Purchasing and General Services Act (Article 601b, 1-58 Vernon's Texas Civil Statutes), shall include with the report a 1-59 separate treatment of the number and adjusted total expenditures of 1-60 purchases, contracts, and payments the agency has made with 1-61 historically underutilized businesses through the consortium during 1-62 the prior fiscal year. 1-63 (b) The commission shall compare the historically 1-64 underutilized businesses list of each state agency filed pursuant 1-65 to this section with the list of historically underutilized 1-66 businesses certified by the commission and shall categorize each 1-67 agency list by the gender and ethnicity of each historically 1-68 underutilized business according to the list of historically 2-1 underutilized businesses certified by the commission. 2-2 (c) Each state agency shall reconcile the report required by 2-3 Subsection (a) of this section with payment data developed by the 2-4 comptroller and the records of the agency. This reconciliation 2-5 shall distinguish between delegated purchases, purchases, 2-6 contracts, and payments made by the agency because of its inclusion 2-7 in the state purchasing program conducted by the commission, and 2-8 other purchases made by the agency, in accordance with Subsection 2-9 (a) of this section. 2-10 (d) Reports required to be filed under this section shall 2-11 not include expenditures for payroll, employee benefits, 2-12 scholarships, utilities, right-of-way acquisition, real estate 2-13 leases, commission open market and contract purchases, purchases 2-14 deleted from the February, 1993, report of the commission, and 2-15 purchases described in Subdivisions (1), (2), (3), and (4), 2-16 Subsection (a), Section 3.01, State Purchasing and General Services 2-17 Act (Article 601b, Vernon's Texas Civil Statutes). 2-18 SECTION 3. AGENCY RECORDS. (a) Each state agency shall 2-19 maintain continuously the following: 2-20 (1) a list of the number of delegated purchases made 2-21 by the state agency during the current fiscal year with 2-22 historically underutilized businesses; 2-23 (2) the percentage relationship that the total number 2-24 of historically underutilized business purchases, contracts, and 2-25 subcontracts made by the state agency during the current fiscal 2-26 year bears to the total number of delegated purchases made by the 2-27 state agency; 2-28 (3) the total expenditures of the state agency with 2-29 historically underutilized businesses; and 2-30 (4) a list of adjusted total expenditures made by each 2-31 management unit within a division or office within the agency with 2-32 historically underutilized businesses during the current fiscal 2-33 year. 2-34 (b) The commission shall classify these and any other 2-35 expenditures not included in the above reports in a manner that 2-36 shows the relative level of opportunity for historically 2-37 underutilized business vendors offered by the sector or class of 2-38 commission expenditures. 2-39 (c) The commission is to seek the advice of the governor, 2-40 the legislature, and other state agencies in prioritizing business 2-41 sectors and expenditure codes to pursue identification and 2-42 development of future historically underutilized businesses' 2-43 business opportunities. 2-44 SECTION 4. RULEMAKING AUTHORITY. The commission and 2-45 department may adopt rules to implement this Act. 2-46 SECTION 5. EMERGENCY. The importance of this legislation 2-47 and the crowded condition of the calendars in both houses create an 2-48 emergency and an imperative public necessity that the 2-49 constitutional rule requiring bills to be read on three several 2-50 days in each house be suspended, and this rule is hereby suspended, 2-51 and that this Act take effect and be in force from and after its 2-52 passage, and it is so enacted. 2-53 * * * * * 2-54 Austin, 2-55 Texas 2-56 April 6, 1993 2-57 Hon. Bob Bullock 2-58 President of the Senate 2-59 Sir: 2-60 We, your Committee on Economic Development to which was referred 2-61 S.B. No. 933, have had the same under consideration, and I am 2-62 instructed to report it back to the Senate with the recommendation 2-63 that it do not pass, but that the Committee Substitute adopted in 2-64 lieu thereof do pass and be printed. 2-65 Parker, 2-66 Chairman 2-67 * * * * * 2-68 WITNESSES 2-69 FOR AGAINST ON 2-70 ___________________________________________________________________ 3-1 Name: John P. Moore x 3-2 Representing: U.T. System 3-3 City: Austin 3-4 ------------------------------------------------------------------- 3-5 Name: David Pinkus x 3-6 Representing: Small Business United of TX 3-7 City: Austin 3-8 -------------------------------------------------------------------