H.B. 2033 78(R)    BILL ANALYSIS


H.B. 2033
By: Menendez
State Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Texas Building and Procurement Commission is required to develop an
annual report of contracts awarded to historically underutilized
businesses (HUBs), and state agencies are required to establish goals to
increase contracting with HUBs.  However, many agencies treat investment
brokerage services as "professional services" rather than as "contract
services," and do not include such services for purposes of HUB reporting.
As a result, the goals for HUB procurement often do not include the
services of HUB brokerage vendors, which could result in fewer brokerage
contracts being awarded to HUB vendors.  The purpose of House Bill 2033 is
to amend the Government Code by adding the definition of "contract" as
including an arrangement under which a state agency receives professional
or investment brokerage services.  This will bring brokerage services
under HUB contracting and reporting guidelines.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

House Bill 2033 amends Section 2161.001 of the Government Code by adding
subdivision (4) which defines "contract" as including an arrangement under
which a state agency receives professional or investment brokerage
services. 

EFFECTIVE DATE

September 1, 2003.