BILL ANALYSIS



C.S.H.B. 1012
By: Romo
05-06-95
Committee Report (Substituted)

BACKGROUND

In order to be placed on a bidders list or gain certification by a
governmental entity, a business owner must submit documents to the
certifying agency, such as tax returns, equipment lists, personnel
records, leases, supplier lists, and other financial records. Some
qualified historically underutilized businesses do not seek
certification for fear that sensitive information could be made
available to competition.
 
PURPOSE

HB 1012 authorizes the exemption of information that is submitted
by a potential vendor for purposes of being placed on a bidders
list or certification by a governmental entity. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 552.110, Government Code, by adding
           Subsections (b), (c), and (d) as follows:

           (b) Provides that information submitted by a potential
           vendor or contractor to a governmental entity which is
           related to a proposed contractual agreement, an
           application for placement on a bidders list, or for
           certification as a historically underutilized or
           disadvantaged business to a governmental entity is
           excepted from the requirements of Section 552.021.

           (c) Subsection (b) does not apply to the business name,
           address, or business phone or fax numbers of a potential
           vendor or the names of the owners of the business
           through which a potential vendor or contractor does
           business.

           (d) After a governmental entity awards a contract to a
           vendor or contractor, Subsection (b) does not apply to
           information the vendor or contractor submits or
           submitted that is related to the contract awarded to the
           vendor or contractor or information the vendor or
           contractor submitted before the award of the contract
           that is related to application for placement on a
           bidders list or for certification as a HUB or
           disadvantaged business.

SECTION 2. This change in law applies to all information acquired
           by a governmental entity, before, on, or after the
           effective date of this act.

SECTION 3. Emergency clause.  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute also exempts information which potential contractors
submit to a governmental entity while the original only exempted
information from potential vendors.  The substitute also adds
Subsections (c) and (d) to Section 1.

SUMMARY OF COMMITTEE ACTION

Pursuant to posting of public hearing the House Committee on State
Affairs convened in public hearing on April 11, 1995 to consider HB
1012.  The chair laid out HB 1012 and recognized Rep. Romo to
explain the bill.  The committee considered 5 amendments to the
bill.  5 of those were not adopted.  The following person testified
for the bill: Manuel Longoria representing the City of San Antonio. 
The Chair recognized Rep. Romo to close.  The Chair left HB 1012
pending.  HB 1012 was considered by the committee in a formal
meeting on May 5, 1995. The Chair laid out HB 1012.  The committee
considered a complete substitute for the bill.  The substitute was
adopted without objection.  The bill was reported favorably as
substituted with the recommendation that it do pass and be printed,
which prevailed by a vote of 14 aye, 0 nay, 0 PNV, and 1 absent.