LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 22, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  Senate BillNo. 878,
         Committee on State Affairs                            as amended
         Senate                                         By: West, Royce
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
878 (Relating to the provisions of state agency strategic plans
that address contracting with historically underutilized
businesses and to auditing and enforcing agency compliance with
those provisions.) this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would require state agency to file as part of their
strategic plans, a plan for increasing their usage of
historically underutilized businesses (HUBs).

The bill would require the state auditor to audit agency's
compliance with HUB provisions identified in the agency's
strategic plan, and to report non-compliance to the General
Services Commission.

The bill would allow the General Services Commission to require
state agencies to send information regarding its compliance, and
if the agency is not making a good faith effort to comply, the
Commission may revoke the agency's purchasing authority

The bill would allow the Governor and the Legislative Budget
Board to transfer appropriations from a non-complying agency to
the Commission in amounts equal to cost the Commission would
incur in performing the agency's purchasing functions.    




 No significant fiscal implication to the State is anticipated.

No fiscal implication to units of local government is
anticipated.


Source:   General Services Commission, Comptroller of Public
Accounts, State Auditor's Office
          LBB Staff: JK, MS, DF