Commission Agenda Item No. 3
Presenter:  Mike Jensen

Action
Statewide Historically Underutilized Business (HUB) Program Rules
March 31, 2011

I.       Executive Summary:  This item presents a proposed amendment to the department’s historically underutilized business (HUB) rules.  The proposed amendment would update a cross-reference to HUB rules adopted by reference from the Comptroller of Public Accounts.

II.      Discussion:  Under Government Code, §2161.003, the department is required to adopt the rules of the Comptroller of Public Accounts relating to HUBs.  The current rule adopts by reference the provisions of 1 TAC §§111.111-111.128.  Those provisions have been relocated to 34 TAC §§20.11-20.28.  The proposed amendment would update the reference and is nonsubstantive.

At the January 2011 meeting of the Finance Committee, staff received permission to publish proposed changes to the current rule in the Texas Register for public comment.  The proposed amendment was published in the February 25, 2011, issue of the Texas Register (36 TexReg 1231).  Staff will present a summary of public comment, if any, at the time of the meeting.

III.     Recommendation:  The staff recommends the Texas Parks and Wildlife Commission adopt the following motion:

“The Texas Parks and Wildlife Commission adopts an amendment to 31 TAC 51.171, concerning Historically Underutilized Businesses, with changes as necessary to the proposed text as published in the February 25, 2011 issue of the Texas Register (36 TexReg 1231).”

Attachments — 1

  1. Exhibit 1 – Proposed Rule

Commission Agenda Item No. 3
Exhibit A

HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM RULES
PROPOSAL PREAMBLE

1. Introduction.

         The Texas Parks and Wildlife Department proposes an amendment to §51.171, concerning Historically Underutilized Business Program.

        The current rule adopts by reference the provisions of 1 TAC §§111.111-111.128, which until recently, set forth the requirements to be followed by state agencies regarding historically underutilized businesses (HUB). Those provisions have been relocated to 34 TAC §§20.11-20.28, following the statutory reassignment of program oversight to the Comptroller of Public Accounts. The proposed amendment would update the reference and is nonsubstantive.

2. Fiscal Note.

         Mr. Mike Jensen, Director of Administrative Resources, has determined that for each of the first five years that the rule as proposed is in effect, there will be no fiscal implications to state and local governments as a result of enforcing or administering the rule.

3. Public Benefit/Cost Note.

         Mr. Jensen also has determined that for each of the first five years the rule as proposed is in effect:

         (A) The public benefit anticipated as a result of enforcing or administering the rule as proposed will be accurate references within department regulations.

         (B) There will be no adverse economic effect on persons required to comply with the rule as proposed.

         (C) Under the provisions of Government Code, Chapter 2006, a state agency must prepare an economic impact statement and a regulatory flexibility analysis for a rule that may have an adverse economic effect affect on small businesses and micro-businesses. As required by Government Code, §2006.002(g), the Office of the Attorney General has prepared guidelines to assist state agencies in determining a proposed rule’s potential adverse economic impact on small businesses. Those guidelines state that an agency need only consider a proposed rule’s “direct adverse economic impacts” to small businesses and micro-businesses to determine if any further analysis is required. For that purpose, the department considers “direct economic impact” to mean a requirement that would directly impose recordkeeping or reporting requirements; impose taxes or fees; result in lost sales or profits; adversely affect market competition; or require the purchase or modification of equipment or services. Since the proposed rules do not make substantive changes and are merely for the purpose of ensuring an accurate cross-reference, the department has determined that the proposed amendment will not impose any direct adverse economic effects on small businesses or microbusinesses. Accordingly, the department has not prepared a regulatory flexibility analysis under Government Code, Chapter 2006.

         (D) The department has not drafted a local employment impact statement under the Administrative Procedures Act, §2001.022, as the agency has determined that the rule as proposed will not impact local economies.

         (E) The department has determined that there will not be a taking of private real property, as defined by Government Code, Chapter 2007, as a result of the proposed rule.

4. Request for Public Comment.

         Comments on the proposed rule may be submitted to Julie Horsley, Texas Parks and Wildlife Department 4200 Smith School Road, Austin, Texas, 78744; (512) 389-4913 (e-mail: julie.horsley@tpwd.state.tx.us).

5. Statutory Authority.

         The amendment is proposed under the authority of Government Code, §2161.003, which requires the commission to adopt rules promulgated by the Comptroller of Public Accounts under Government Code, §2161.0012.

         The proposed amendment affects Government Code, Chapter 2161.

         §51.171. Historically Underutilized Business Program. The Texas Parks and Wildlife Commission adopts by reference the provisions of 34 TAC Chapter 20, Subchapter B[1 TAC §§111.111-111.128].

         This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency’s authority to adopt.

         Issued in Austin, Texas, on























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