HBA-JLV H.B. 737 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 737
By: Luna, Vilma
State Affairs
2/28/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the General Services Commission (GSC) certifies
historically underutilized businesses (HUB) and is authorized to enter into
an agreement with a local government which will allow the local government
to conduct a HUB certification program for minority business enterprises,
women's business enterprises, or disadvantaged business enterprises.  It
has been discovered, however, that many local governments in Texas do not
directly certify HUBs, and are instead contracting with nonprofit
organizations to do the certification.  Some businesses may find this
process unappealing because of the additional level of bureaucracy it
creates for those seeking HUB certification.  House Bill 737 authorizes GSC
to enter into an agreement with a nonprofit organization to allow the
organization to conduct a HUB certification program. 

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. 

ANALYSIS

House Bill 737 amends the Government Code to include the certification
programs of nonprofit organizations that certify historically underutilized
businesses, minority business enterprises, women's business enterprises, or
disadvantaged business enterprises as a program that the General Services
Commission (GSC) may approve as one of its certification procedures.  The
bill also authorizes GSC to certify a business certified under the
nonprofit organization program as a historically underutilized business. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.