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 * * * * *