By Ellis                                              S.B. No. 1637
         76R6456 JRD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state agency progress in meeting historically
 1-3     underutilized business contracting goals.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 2161, Government Code, is
 1-6     amended by adding Section 2161.003 to read as follows:
 1-7           Sec. 2161.003.  REVOCATION OR TRANSFER OF PURCHASING
 1-8     AUTHORITY.  (a)  In this section, "health and human services
 1-9     agency" has the meaning assigned by Section 531.001.
1-10           (b)  In preparing the consolidated yearly report under
1-11     Section 2161.121 regarding the historically underutilized business
1-12     program during the preceding state fiscal year, the commission
1-13     shall determine for each state agency whether the agency
1-14     substantially failed to meet during the preceding fiscal year the
1-15     applicable historically underutilized business contracting goals
1-16     established by this chapter and by rules of the commission.  The
1-17     commission shall revoke, for the remainder of the current state
1-18     fiscal year, any purchasing authority that the commission has
1-19     delegated to a state agency if the commission determines that the
1-20     agency failed to meet the applicable goals.
1-21           (c)  The commission shall report to the Health and Human
1-22     Services Commission each health and human services agency that
1-23     substantially failed to meet the goals during the preceding state
1-24     fiscal year. The Health and Human Services Commission shall
 2-1     transfer, for the remainder of the current state fiscal year, one
 2-2     or more appropriate procurement functions of each of those agencies
 2-3     to another appropriate state agency.
 2-4           (d)  If the commission revokes a state agency's delegated
 2-5     purchasing authority under this section or the Health and Human
 2-6     Services Commission transfers a health and human services agency's
 2-7     purchasing functions under this section, the comptroller may
 2-8     consider that fact in the event a transfer of an agency's
 2-9     appropriated funds is needed to cover the costs of assuming the
2-10     agency's purchasing functions.  The amount transferred from the
2-11     agency's funds shall be an amount determined by the Legislative
2-12     Budget Board.
2-13           SECTION 2.  Subchapter C, Chapter 2161, Government Code, is
2-14     amended by adding Section 2161.126 to read as follows:
2-15           Sec. 2161.126.  LEGISLATIVE APPROPRIATIONS REQUESTS.  Each
2-16     state agency must include as part of its legislative appropriations
2-17     request a detailed report for consideration by the budget
2-18     committees of the legislature that shows the extent to which the
2-19     agency met the applicable historically underutilized business
2-20     contracting goals established by this chapter and by rules of the
2-21     commission during the two calendar years preceding the calendar
2-22     year in which the request is submitted. If a state agency did not
2-23     meet an applicable goal, the report must demonstrate the reasons
2-24     for that fact. The extent to which a state agency meets applicable
2-25     goals is considered a performance measure for purposes of the
2-26     appropriations process.
2-27           SECTION 3.  This Act takes effect September 1, 1999, except
 3-1     that Section 2161.003, Government Code, as added by this Act, takes
 3-2     effect September 1, 2000.
 3-3           SECTION 4.  The importance of this legislation and the
 3-4     crowded condition of the calendars in both houses create an
 3-5     emergency and an imperative public necessity that the
 3-6     constitutional rule requiring bills to be read on three several
 3-7     days in each house be suspended, and this rule is hereby suspended.