BILL ANALYSIS


                                                     C.S.S.B. 462
                                                        By: Ellis
                                      Intergovernmental Relations
                                                         03-08-95
                                   Committee Report (Substituted)
BACKGROUND

In an effort to increase competition and lower costs,
municipalities, school districts, and other political subdivisions
throughout the state have established successful programs to
increase the participation of historically underutilized businesses
in the contracting and procurement process.

PURPOSE

As proposed, C.S.S.B. 462 authorizes a political subdivision to
create a program to assist 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 106.001(c), Civil Practice and Remedies
Code, by amending Chapters 597 and 665, Acts of the 72nd
Legislature, 1991, as follows:

     (c)(1)  Provides that neither this section nor any home-rule
     charter or general law may be construed to prevent a political
     subdivision of the state from adopting a program as authorized
     by Section 271.111, Local Government Code.  Deletes
     definitions of "minority business enterprises" and
     "minorities."
     
     (2)  Requires the governing body to provide a program
       outlining acceptable assistance that may be provided by
       contractors or others to certain businesses, if the
       governing body of a political subdivision adopts a program
       under Section 271.111, Local Government Code.  Makes
       conforming changes.  Deletes provisions authorizing certain
       home-rule municipalities to adopt programs that increase
       minority business participation.  Deletes requirement that
       the governing body of a municipality establish a percentage
       goal for awarding contracts to minority businesses using an
       independent source.
       
       (3)  Redesignates Subdivision (4).  Makes conforming
       changes.
       
       SECTION 2.   Amends Chapter 271, Local Government Code, by adding
Subchapter F, as follows:

 SUBCHAPTER F.  CREATION OF HISTORICALLY UNDERUTILIZED BUSINESS
              PROGRAM BY A POLITICAL SUBDIVISION.

     Sec. 271.111.  PROGRAM.  (a)  Authorizes a political
     subdivision of the state to establish a program to increase
     the participation of historically underutilized,
     disadvantaged, women-owned, or minority-owned businesses in
     the process of awarding the political subdivision's contracts.
     
     (b)  Authorizes the program to identify barriers, set goals,
       and take any other reasonable steps to increase the
       participation of the businesses described by Subsection (a)
       in the political subdivision's contracting or procurement
       process.
       
       SECTION 3.   Emergency clause.
           Effective date: upon passage.