SRC-LBB S.B. 1475 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1475
78R8845 PAM-DBy: West
State Affairs
4/15/2003
As Filed


DIGEST AND PURPOSE 

Currently, Texas has a Historically Underutilized Business (HUB) program,
in Section 2161 of the Government Code, which governs all state entities.
Prior to the enactment of this legislation, many agencies had their own
policies on contracting with minority-owned and women-owned businesses.
As proposed, S.B. 1475 eliminates or updates the language in the agency
statute and makes changes to the HUB statute.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 466.107, Government Code, as follows:

Sec. 466.107.  New Heading:  HISTORICALLY UNDERUTILIZED BUSINESSES.  (a)
Makes conforming changes. 

  (b)  Defines "historically underutilized business."  Deletes former
Subsection (c). 

SECTION 2.  Amends Section 2161.062, Government Code, by amending
Subsection (e) and adding Subsection (f), as follows: 

(e)  Deletes language authorizing the procurement director of a state
agency that exceeds $10 billion to serve as the historically underutilized
business coordinator for the agency. Authorizes the coordinator and the
procurement director to serve under a financial director of the agency
only if the financial director is responsible for procurement and general
fiscal affairs of the agency.  

(f)  Requires the position classification officer and each state agency
that employs a historically underutilized businesses coordinator to ensure
that the positions of coordinator and procurement director are classified
to titles in the position classification plan that are in the same salary
group. 

SECTION 3.  Amends Subchapter B, Chapter 2161, Government Code, by adding
Section 2161.067, as follows: 

Sec. 2161.067.  DUTY TO REPORT CERTAIN VIOLATIONS.  Requires the Texas
Building and Procurement Commission (TBPC) to report the alleged conduct
to the prosecuting attorney in the county in which the alleged conduct
occurred, if TBPC suspects that a person has committed an offense under
Section 2161.231(a). 

SECTION 4.  Amends Section 2161.231(b), Government Code, to provide that
an offense under this section is a felony punishable by imprisonment in
the institutional division of the Texas Department of Criminal Justice for
any term of not more than 10 years or less than two years and a fine of
$10,000.  Deletes text that provided that an offense under this section is
a third degree felony. 
 
SECTION 5.  Amends Subchapter E, Chapter 2161, Government Code, by adding
Section 2161.232, as follows: 

Sec. 2161.232.  INVESTIGATION ACCOUNT.  (a)  Provides that the
historically underutilized business investigation account is a separate
account in the general revenue fund. 

(b)  Provides that the account consists of 50 percent of the amount of
money collected from fines imposed under Section 2161.231(b)(2). 

(c)  Authorizes money in the account to be appropriated only to TBPC  for
the purpose of investigations by TBPC into whether a business qualifies as
a historically underutilized business. 

SECTION 6.  Amends Section 6.03(b), Texas Racing Act (Article 179e,
V.T.C.S.), to provide that documents submitted to TBPC are not subject to
Chapter 552 (Public Information), Government Code.  Requires TBPC, in
reviewing and approving contracts under this subsection, to attempt to
award contracts to historically underutilized businesses in an amount and
manner consistent with Chapter 2161, Government Code, and rules adopted
under that chapter. 

SECTION 7.  Repealer:  

 (1)  Section 12.029 (Minority and Female-Owned Business Contracts),
Agriculture Code. 

 (2)  Section 55.03 (Minority-Owned and Women-Owned Businesses), Education
Code. 

(3)  Sections 465.0081 (Disadvantaged Businesses), 493.012 (Historically
Underutilized Businesses), 1231.086 (Annual Board Reports), and
1232.104(c) (Issuance of Obligations for Alternative Fuel Projects),
Government Code. 

(4)  Sections 161.131 (Minority-Owned businesses)  and 161.132
(Women-Owned Businesses), Natural Resources Code. 

SECTION 8.  Effective date:  September 1, 2003.

SECTION 9.  Makes the change in law made by this Act to Section
2161.231(b), Government Code prospective.