BILL ANALYSIS


                                                     C.S.S.B. 189
                                                         By: West
                                                    State Affairs
                                                         02-06-95
                                   Committee Report (Substituted)
BACKGROUND

As of September 1, 1994, 8,951 active historically underutilized
businesses (HUBs) were certified with the state.  To become
certified, an applicant must submit documentation to prove that the
applicant meets the state's HUB criteria for percentage ownership
and control of the firm.  A desk audit is then performed to ensure
that this information is accurate.  Once certified, a HUB becomes
part of the state's automated HUB directory, which is used by all
state agencies to identify certified HUBs.  The General Services
Commission began in December of 1993 to randomly examine the
records and books of certified HUBs to verify their HUB
eligibility.   

PURPOSE

As proposed, C.S.S.B. 189 authorizes the General Services
Commission to certify historically underutilized businesses.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1.03(a), Article 601b, V.T.C.S., as
follows:

     (a) Authorizes the General Services Commission to approve
     another certification, rather than municipal, program that
     certifies historically underutilized businesses and authorizes
     municipalities to adopt the commission's certification
     program. 
SECTION 2. Emergency clause.
           Effective date: upon passage.