1-1  By:  Ellis, Luna, Rosson                               S.B. No. 462
    1-2        (In the Senate - Filed February 3, 1995; February 6, 1995,
    1-3  read first time and referred to Committee on Intergovernmental
    1-4  Relations; March 8, 1995, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 8, Nays 2;
    1-6  March 8, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 462                    By:  Ellis
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to allowing a political subdivision to create a program to
   1-11  assist historically underutilized businesses.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Subsection (c), Section 106.001, Civil Practice
   1-14  and Remedies Code, as amended by Chapters 597 and 665, Acts of the
   1-15  72nd Legislature, 1991, is amended to read as follows:
   1-16        (c)(1)  <In this subsection:>
   1-17                    <(A)  "Minority business enterprises" means
   1-18  businesses at least 51 percent of which are both owned and
   1-19  controlled in management and daily operations by minorities or
   1-20  women.>
   1-21                    <(B)  "Minorities" includes blacks, Hispanics,
   1-22  Asian-Americans, American Indians, and Alaska natives.>
   1-23              <(2)>  Neither this section nor any home-rule charter
   1-24  or general law may be construed to prevent a political subdivision
   1-25  of the state from adopting a program as authorized by Section
   1-26  271.111, Local Government Code <home-rule municipality with a
   1-27  population of one million or more according to the most recent
   1-28  federal census from adopting a program or programs designed to
   1-29  reasonably increase participation by minority business enterprises
   1-30  in public contract awards.  If, as part of a program described by
   1-31  this subdivision, the governing body of such a municipality
   1-32  establishes a goal of having a certain percentage of its public
   1-33  contract awards made to minority business enterprises, the
   1-34  governing body shall use a qualified independent source to
   1-35  establish to what extent minority business enterprises in the
   1-36  municipality are available to receive awards for each of the
   1-37  various kinds of construction of public contracts that will be
   1-38  awarded.  The percentage goal shall not exceed the availability of
   1-39  minority business enterprises in the municipality as determined by
   1-40  the independent source>.
   1-41              (2)  <Neither this section nor any home-rule charter or
   1-42  general law may be construed to prevent a home-rule municipality
   1-43  that has a population of 465,000 or more according to the most
   1-44  recent federal census or home-rule municipality located in a county
   1-45  containing:  (1) a population of more than 465,000 according to the
   1-46  most recent federal census; and (2) more than 35 incorporated
   1-47  municipalities according to the most recent federal census from
   1-48  adopting a program or programs designed to reasonably increase
   1-49  participation by minority business enterprises in public contract
   1-50  awards.  If, as part of a program described by this subdivision,
   1-51  the governing body of such a municipality establishes a goal of
   1-52  having a certain percentage of its public contract awards made to
   1-53  minority business enterprises, the governing body shall use a
   1-54  qualified in-house audit to establish to what extent minority
   1-55  business enterprises in the municipality are available to receive
   1-56  awards for each of the various kinds of construction of public
   1-57  contracts that will be awarded.  The percentage goal shall not
   1-58  exceed the availability of minority business enterprises in the
   1-59  municipality as determined by the in-house audit.>
   1-60              <(3)>  If the governing body of a political subdivision
   1-61  <municipality described by Subdivision (2) of this subsection>
   1-62  adopts a program authorized by Section 271.111, Local Government
   1-63  Code <described by that subdivision>, the governing body must also
   1-64  provide a program outlining acceptable assistance that may be
   1-65  provided by contractors or others to the businesses described by
   1-66  Section 271.111(a), Local Government Code, <minority business
   1-67  enterprises in the municipality> to achieve the purposes of the
   1-68  program authorized by Section 271.111, Local Government Code
    2-1  <described by Subdivision (2)>.
    2-2              (3) <(4)>  General law or a home-rule charter that
    2-3  requires competitive bidding and the award of public contracts to
    2-4  the lowest responsible bidders is not affected by this subsection.
    2-5  However, all prospective bidders may be required to meet uniform
    2-6  standards designed to assure a reasonable degree of participation
    2-7  by the businesses described by Section 271.111(a), Local Government
    2-8  Code, <minority business enterprises> in the performance of any
    2-9  public contract.
   2-10              <(5)  This subsection expires January 1, 1999.>
   2-11        SECTION 2.  Chapter 271, Local Government Code, is amended by
   2-12  adding Subchapter F to read as follows:
   2-13         SUBCHAPTER F.  CREATION OF HISTORICALLY UNDERUTILIZED
   2-14              BUSINESS PROGRAM BY A POLITICAL SUBDIVISION
   2-15        Sec. 271.111.  PROGRAM.  (a)  A political subdivision of the
   2-16  state may establish a program to increase the participation of
   2-17  historically underutilized, disadvantaged, women-owned, or
   2-18  minority-owned businesses in the process of awarding the political
   2-19  subdivision's contracts.
   2-20        (b)  The program may:
   2-21              (1)  identify barriers to the businesses described by
   2-22  Subsection (a) in the political subdivision's contracting and
   2-23  procurement process;
   2-24              (2)  set goals for the awarding of contracts to the
   2-25  businesses described by Subsection (a) and for the participation of
   2-26  the businesses described by Subsection (a) as subcontractors on
   2-27  contracts awarded by the political subdivision; and
   2-28              (3)  take any other reasonable steps allowed under law
   2-29  to increase the participation of the businesses described by
   2-30  Subsection (a) in the political subdivision's contracting or
   2-31  procurement process.
   2-32        SECTION 3.  The importance of this legislation and the
   2-33  crowded condition of the calendars in both houses create an
   2-34  emergency and an imperative public necessity that the
   2-35  constitutional rule requiring bills to be read on three several
   2-36  days in each house be suspended, and this rule is hereby suspended,
   2-37  and that this Act take effect and be in force from and after its
   2-38  passage, and it is so enacted.
   2-39                               * * * * *