TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 15. TEXAS VETERANS COMMISSION

Chapter 453. HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM

40 TAC §453.1

The Texas Veterans Commission proposes new §453.1, concerning Historically Underutilized Businesses. The new rule will incorporate by reference the rules adopted by the General Services Commission (GSC) for Historically Underutilized Businesses. The new rule conforms to Texas Government Code, §2161.003 that directed state agencies to adopt the GSC rules regarding Historically Underutilized Businesses (HUB) as the agencies own rules. The GSC rules appear in 1 TAC §§111.11-111.28. The Commission's proposed rule adopts by reference GSC's rules.

The GSC rules being adopted by reference provide for a policy and a purpose for the rules, definitions applicable to the HUB rules, annual procurement HUB utilization goals, subcontracting requirements, agency planning responsibilities, state agency reporting requirements, a HUB certification process, protests from denial of HUB applications, compilation of a HUB directory, HUB graduation procedures, review and revisions of GSC's HUB program, a memorandum of understanding between GSC and the Texas Department of Economic Development concerning technical assistance and budgeting for the HUB program, HUB Coordinator responsibilities, HUB forum programs for state agencies, and a mentor-protégé program.

Charles A. Buerschinger, Director of Finance and Information Resources, has determined that for each year of the five years the proposed section will be in effect, there will be no fiscal impact to state and local governments as a result of the enforcement or administration of the rule. There will be no measurable effect on local employment or the local economy as a result of the proposal.

James E. Nier, Executive Director, has determined that for each year of the first five years the section is in effect, the public benefits anticipated as a result of the proposed section will be a more uniform and consistent approach for the procuring of goods and services from HUB vendors. There is no anticipated economic cost to persons who are required to comply with the rule. There is no difference in cost of compliance between micro, small, and large businesses and no anticipated economic cost for these entities. State agencies are required to comply with the rules for Historically Underutilized Business as adopted by GSC.

Comments may be submitted to James E. Nier, Executive Director, Texas Veterans Commission, P.O. Box 12277 Austin, Texas 78711-2277. Adoption of rules will be a minimum of 30 days after publication.

The new section is proposed under §2161.003 of the Government Code which requires that the Commission adopt the GSC rules for Historically Underutilized Businesses. Section 434.010 of the Government Code provides that the Commission may adopt rules that it considers necessary for its administration.

The following articles are affected by this proposal: Government Code, §2161.003 Historically Underutilized Businesses. The Commission adopts by reference the rules promulgated by the GSC regarding Historically Underutilized Businesses, which are set forth in 1 TAC §§111.11-111.28.

§453.1.Historically Underutilized Business Program.

Historically Underutilized Business Program. The Commission adopts by reference the rules promulgated by the General Services Commission (GSC) that are set forth at 1 TAC Chapter 111, Subchapter B, as amended, regarding the Historically Underutilized Business Program. A copy of the GSC rules may be obtained by writing to: James E. Nier, Executive Director, Texas Veterans Commission, E.O. Thompson State Office Building, P.O. Box 12277, Austin, Texas 78711-2277 or by accessing the Web site of the Secretary of State, at www.sos.state.tx.us/tac/.

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 January 22, 2001.

TRD-200100385

James E. Nier

Executive Director

Texas Veterans Commission

Earliest possible date of adoption: March 4, 2001

For further information, please call: (512) 463-5538