1 TAC §111.23
The General Services Commission proposes amendment of Title
1 TAC, §111.23 concerning Graduation Procedures for the Historically
Underutilized Business Program.
The amendment to §111.23 is proposed to update language for the Historically
Underutilized Business (HUB) graduation procedures due to a change in the
Small Business Administration (SBA) industry size standards used to define
small business concerns. The Standard Industrial Classification Codes (SIC)
as stated in Title 13, Code of Federal Regulations, §121.201 have been
changed to the North American Industry Classification System Codes (NAICS).
The NAICS were adopted by the SBA effective October 1, 2000.
Mr. Henry W. Johnson, Director of Business Services, has determined for
the first five year period the rules are in effect, there will be no will
be no fiscal implication for the state or local governments as a result of
enforcing or administering these new rules.
Mr. Henry W. Johnson, Director of Business Services, further determines
that for each year of the first five-year period the amendments are in effect,
the public benefit anticipated as a result of enforcing the amendment to Title
1, TAC, §111.23 is the deletion of obsolete language referring to SIC
to be replaced by language referring to standards by NAICS Industry that is
now being used by the U.S. Small Business Administration to determine small
business size standards. There will be no effect on large, small or micro-businesses.
There is no anticipated economic costs to persons who are required to comply
with these rules and there is no impact on local employment.
Comments on the proposals may be submitted to Cynthia Hill, Acting General
Counsel, General Services Commission, P.O. Box 13047, Austin, Texas 78711-3047.
Comments must be received no later than thirty days from the date of publication
of the proposal to the
Texas Register
.
The amendment to Title 1, TAC, §111.23 is proposed under
the authority of the Texas Government Code, Title 10, Subtitle D, Chapter
2161, §§2161.015, 2161.002, 2161.003, and 2161.004 which provides
the General Services Commission with the authority to promulgate rules necessary
to implement the sections.
The following code is affected by these rules: Government Code, Title 10,
Subtitle D, Chapter 2161.
§111.23.Graduation Procedures.
(a)
A HUB shall be graduated from being used to fulfill HUB
procurement utilization goals when it has maintained gross receipts or total
employment levels
for
four consecutive years which exceed the U.S.
Small Business Administration's size standards
identified by the North
American Industry Classification Codes
[
for firms within similar
primary four-digit Standard Industrial Classification codes
] as stated
in 13 Code of Federal Regulations 121.201 for the following categories:
(1)
heavy construction other than building construction;
(2)
building construction, including general contractors and
operative builders;
(3)
special trade construction;
(4)
medical, financial and accounting services;
(5)
architectural/engineering and surveying services;
(6)
other services including legal services;
(7)
commodities wholesalers;
(8)
commodities manufacturers.
(b)
Firms which have achieved the size standards identified
in subsection (a) of this section will be assumed to have reached a competitive
status in overcoming the effects of discrimination. The commission shall review
as part of the certification, compliance or recertification process the financial
revenue or relevant data of firms to determine whether the size standards
identified in subsection (a) of this section have been met.
(c)
The graduation of HUBs will be tracked and included in
the HUB Report by the applicant's Vendor Identification Number and by Social
Security Number to the extent allowed by federal law.
(d)
The commission will monitor the progress of graduated HUBs
and report their participation in the state's procurements to the Legislature,
General Services commission, and other state agencies.
(e)
Businesses that have graduated from the HUB program in
accordance with this section or have been decertified in accordance with §§
111.17-111.22 of this title (relating to Executive Administration Division)
may not be included in meeting agency goals.
[(f)
The General Services Commission shall
review the U.S. Small Business Administration's size standards when they change
to determine the need to reassess HUB graduation size standards and make changes
which would then be effective immediately.]
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on February 22, 2001.
TRD-200101108
Cynthia J. Hill
Acting General Counsel
General Services Commission
Earliest possible date of adoption: April 8, 2001
For further information, please call: (512) 463-3960