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
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    3-5  Name:  David Pinkus                              x
    3-6  Representing:  Small Business United of TX
    3-7  City:  Austin
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