HBA-TYH H.B. 1567 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1567 By: Dukes State Affairs 3/30/1999 Introduced BACKGROUND AND PURPOSE In 1991, the state instituted the historically underutilized business program (HUB) to increase the opportunities available to companies owned by minorities and women to do business with the state. Historically and traditionally, these firms experience low levels of participation in state procurement that is disproportionate to their availability. Some state agencies have met or exceeded one or two of the goals; however, no state agency has met all six of the legislated HUB contracting goals. H.B. 1567 requires the General Services Commission to conduct yearly reports regarding the program during the preceding state fiscal year. State agencies that substantially miss the applicable HUB contracting goals without being able to provide clear and convincing proof of a good faith effort to meet the goals can lose delegation of procurement authority or receive negative consideration of their appropriations request. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 2161, Government Code, by adding Section 2161.003, as follows: Sec. 2161.003. REVOCATION OR TRANSFER OF PURCHASING AUTHORITY. (a) Defines "health and human services agency." (b) Requires the General Services Commission (commission), in preparing the consolidated yearly report under Section 2161.121 (Commission Report of Contracts Awarded to Historically Underutilized Businesses) regarding the historically underutilized business program during the preceding state fiscal year, to determine for each state agency whether the agency substantially failed to meet during the preceding fiscal year the applicable historically underutilized business contracting goals (goals) established by this chapter and by rules of the commission. Requires the commission to revoke, for the remainder of the current state fiscal year, any purchasing authority that the commission has delegated to a state agency if the commission determines that the agency failed to meet the goals. (c) Requires the commission to report to the Health and Human Services Commission each health and human services agency that substantially failed to meet the goals during the preceding state fiscal year. Requires the Health and Human Services Commission to transfer, for the remainder of the current state fiscal year, one or more appropriate procurement functions of each of those agencies to another appropriate state agency. (d) Authorizes the comptroller, if the commission revokes a state agency's delegated purchasing authority or the Health and Human Services Commission transfers a health and human services agency's purchasing functions, to consider that fact in the event a transfer of an agency's appropriated funds is needed to cover the costs of assuming the agency's purchasing functions. Requires the amount transferred from the agency's funds to be an amount determined by the Legislative Budget Board. SECTION 2. Amends Subchapter C, Chapter 2161, Government Code, by adding Section 2161.126, as follows: Sec. 2161.126. LEGISLATIVE APPROPRIATIONS REQUESTS. Provides that each state agency must include as part of its legislative appropriations request a detailed report for consideration by the budget committees of the legislature that shows the extent to which the agency met the goals established by this chapter and by rules of the commission during the two calendar years preceding the calendar year in which the request is submitted. Provides that if a state agency did not meet a goal, the report must demonstrate the reasons for that fact. Provides that the extent to which a state agency meets goals is considered a performance measure for purposes of the appropriations process. SECTION 3. Effective date: September 1, 1999. Provides that Section 2161.003, Government Code, as added by this Act takes effect September 1, 2000. SECTION 4. Emergency clause.