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.