BILL ANALYSIS


                                                     C.S.S.B. 461
                                                        By: Ellis
                                                    State Affairs
                                                         03-08-95
                                   Committee Report (Substituted)
BACKGROUND

The Comptroller's Office conducted a comprehensive one-year
statewide study of state agency procurement and contracting with
historically underutilized businesses (HUBs).  The study's findings
suggest and provide an objective basis for the General Services
Commission and other agencies to modify their HUB purchasing
policies.

PURPOSE

As proposed, C.S.S.B. 461 requires the General Services Commission
to adopt rules to implement provisions relating to historically
underutilized businesses; requires other state agencies to adopt
the commission's rules and authorizes other state agencies to adopt
supplemental rules.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the General Services Commission and to each state agency or
institution of higher education under SECTION 1 (Section 1.03(q),
Article 601b, V.T.C.S.) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1.03 (Article 601b, V.T.C.S.), by adding
Subsection (q), as follows:

     (q)  Requires the General Services Commission (commission) to
     adopt rules to implement the provisions of this Act that
     relate to historically underutilized businesses (HUBs). 
     Requires the commission to base the rules on the results of
     the disparity study prepared by the comptroller.  Requires a
     state agency or an institution of higher education to adopt
     the commission's rules as its own rules and may adopt
     supplemental rules that are based on the historically
     underutilized business disparity study.
SECTION 2. Emergency clause.
           Effective date: upon passage.