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.