73R9494 DWS-F
By A. Smith of Harris H.B. No. 992
Substitute the following for H.B. No. 992:
By Oliveira C.S.H.B. No. 992
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation of the Texas Department of Commerce.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 481.003, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 481.003. Sunset Provision. The Texas Department of
1-7 Commerce is subject to Chapter 325 (Texas Sunset Act). Unless
1-8 continued in existence as provided by that chapter, the department
1-9 is abolished and this chapter expires September 1, 2001 <1993>.
1-10 SECTION 2. Section 481.004, Government Code, is amended by
1-11 adding Subsection (e) to read as follows:
1-12 (e) At least one member of the policy board must be a
1-13 resident of a county with a population of less than 30,000.
1-14 SECTION 3. Section 481.0041(a), Government Code, is amended
1-15 to read as follows:
1-16 (a) It is a ground for removal from the policy board if a
1-17 member:
1-18 (1) does not have at the time of appointment the
1-19 qualifications required by Section 481.0042;
1-20 (2) does not maintain during service on the policy
1-21 board the qualifications required by Section 481.0042;
1-22 (3) violates a prohibition established by Section
1-23 481.0042;
1-24 (4) <(2)> cannot discharge the member's duties for a
2-1 substantial part of the term for which the member is appointed
2-2 because of illness or disability; or
2-3 (5) <(3)> is absent from more than half of the
2-4 regularly scheduled policy board meetings that the member is
2-5 eligible to attend during a calendar year unless the absence is
2-6 excused by majority vote of the policy board.
2-7 SECTION 4. Section 481.0042, Government Code, is amended to
2-8 read as follows:
2-9 Sec. 481.0042. CONFLICT OF INTEREST. (a) A person may not
2-10 serve as a public member of the policy board or be the executive
2-11 director or an employee of the department if the person:
2-12 (1) is employed by, participates in the management of,
2-13 or is a paid consultant of a business entity that contracts with
2-14 the department;
2-15 (2) owns or controls, directly or indirectly, more
2-16 than a 10 percent interest in a business entity or other
2-17 organization that contracts with the department;
2-18 (3) uses or receives a substantial amount of tangible
2-19 goods, services, or funds from the department, other than
2-20 compensation or reimbursement authorized by law for employee
2-21 salaries and benefits or for policy board membership, attendance,
2-22 and expenses; or
2-23 (4) is an officer, employee, or paid consultant of a
2-24 trade association of businesses that contracts with the department.
2-25 (b) A person may not serve as a public member of the policy
2-26 board or be the executive director or an employee of the department
2-27 if the person's spouse:
3-1 (1) participates in the management of or is a paid
3-2 consultant of a business entity that contracts with the department;
3-3 (2) owns or controls, directly or indirectly, more
3-4 than a 10 percent interest in a business entity or other
3-5 organization that contracts with the department;
3-6 (3) uses or receives a substantial amount of tangible
3-7 goods, services, or funds from the department; or
3-8 (4) is an officer, manager, or paid consultant of a
3-9 trade association of businesses that contracts with the department.
3-10 (c) <A member of the policy board or the executive director
3-11 or an employee of the department may not:>
3-12 <(1) be an officer, employee, or paid consultant of a
3-13 business entity that contracts with the department;>
3-14 <(2) directly own, control, or have any interest in a
3-15 business entity that contracts with the department; or>
3-16 <(3) accept or solicit any gift, favor, or service
3-17 that would reasonably tend to influence the person in the discharge
3-18 of official duties or that the person knows or should know is being
3-19 offered with the intent to influence official conduct.>
3-20 <(b) An officer, employee, or paid consultant of a business
3-21 entity or a trade association of business entities that contracts
3-22 with the department may not be a member of the policy board or the
3-23 executive director or employee of the department.>
3-24 <(c) A person who is the spouse of an officer, manager, or
3-25 paid consultant of a business entity or a trade association of
3-26 business entities that contracts with the department may not be a
3-27 member of the policy board or the executive director or an employee
4-1 of the department.>
4-2 <(d)> For the purposes of this section, a trade association
4-3 is a nonprofit, cooperative, and voluntarily joined association of
4-4 business or professional competitors designed to assist its members
4-5 and its industry or profession in dealing with mutual business or
4-6 professional problems and in promoting their common interest.
4-7 (d) For the purposes of this section, a business entity is a
4-8 sole proprietorship, partnership, firm, corporation, holding
4-9 company, joint stock company, receivership, trust, or any other
4-10 entity recognized in law through which business for profit is
4-11 conducted.
4-12 (e) A person may not be a member of the policy board or the
4-13 executive director or an employee of the department if the person
4-14 is required to register as a lobbyist under Chapter 305, Government
4-15 Code, because of the person's activities for compensation on behalf
4-16 of a business entity that has an interest in a contract with the
4-17 department or a profession related to the operation of the
4-18 department.
4-19 SECTION 5. Section 481.0044(a), Government Code, is amended
4-20 to read as follows:
4-21 (a) The policy board shall <may> adopt rules necessary for
4-22 the administration of department programs and may adopt rules for
4-23 its internal management and control.
4-24 SECTION 6. Section 481.005(d), Government Code, is amended
4-25 to read as follows:
4-26 (d) The members of the policy board shall establish policy,
4-27 adopt rules <that the policy board may adopt under law>, evaluate
5-1 the implementation of new legislation that affects the department's
5-2 duties, review and comment on the department's budget, prepare an
5-3 annual report of the department's activities, conduct
5-4 investigations and studies, and develop long-range plans for the
5-5 future goals and needs of the department. The members of the
5-6 policy board may not be involved in the daily operation of the
5-7 department. Except for duties related to the approval and issuance
5-8 of bonds by the department, the policy board may delegate to the
5-9 executive director the duties of the policy board under this
5-10 chapter and other law that are not covered by the description of
5-11 the members' duties under this subsection.
5-12 SECTION 7. Sections 481.010(a), (f), and (g), Government
5-13 Code, are amended to read as follows:
5-14 (a) The executive director shall employ personnel necessary
5-15 for the performance of department functions. In addition to other
5-16 personnel, the executive director shall employ a human rights
5-17 officer and an internal auditor. The internal auditor shall report
5-18 directly to the policy board and may consult with the executive
5-19 director or the executive director's designee <the governor>.
5-20 (f) The executive director or the executive director's
5-21 designee shall prepare and maintain a written policy statement to
5-22 assure implementation of a program of equal employment opportunity
5-23 under which all personnel transactions are made without regard to
5-24 race, color, disability <handicap>, sex, religion, age, or national
5-25 origin. The policy statement must include:
5-26 (1) personnel policies, including policies relating to
5-27 recruitment, evaluation, selection, appointment, training, and
6-1 promotion of personnel that are in compliance with requirements of
6-2 the Commission on Human Rights;
6-3 (2) a comprehensive analysis of the department work
6-4 force that meets federal and state guidelines;
6-5 (3) procedures by which a determination can be made of
6-6 significant underuse <underutilization> in the department work
6-7 force of all persons for whom federal or state guidelines encourage
6-8 a more equitable balance; and
6-9 (4) reasonable methods to appropriately address those
6-10 areas of significant underuse <underutilization>.
6-11 (g) A policy statement prepared under Subsection (f) must
6-12 cover an annual period, be updated <at least> annually and reviewed
6-13 by the Commission on Human Rights for compliance with Subsection
6-14 (f)(1), and be filed with the governor's office.
6-15 SECTION 8. Section 481.011, Government Code, is amended to
6-16 read as follows:
6-17 Sec. 481.011. FISCAL REPORT. The executive director
6-18 <department> shall file annually with the governor and the
6-19 presiding officer of each house of the legislature a complete and
6-20 detailed written report accounting for all funds received and
6-21 disbursed by the department during the preceding fiscal year. The
6-22 annual report must be in the form and reported in the time provided
6-23 by the General Appropriations Act.
6-24 SECTION 9. Section 481.012, Government Code, is amended by
6-25 amending Subsection (c) and adding Subsection (d) to read as
6-26 follows:
6-27 (c) The policy board <department> shall prepare and maintain
7-1 a written plan that describes how a person who does not speak
7-2 English <or who has a physical, mental, or developmental
7-3 disability> can be provided reasonable access to the department's
7-4 programs. The policy board shall also comply with federal and
7-5 state laws for program and facility accessibility.
7-6 (d) The policy board by rule shall establish methods by
7-7 which consumers and service recipients are notified of the name,
7-8 mailing address, and telephone number of the department for the
7-9 purpose of directing complaints to the department.
7-10 SECTION 10. Section 481.021, Government Code, is amended to
7-11 read as follows:
7-12 Sec. 481.021. GENERAL POWERS OF DEPARTMENT. (a) The
7-13 department may:
7-14 (1) adopt and enforce rules necessary to carry out
7-15 this chapter;
7-16 (2) adopt and use an official seal;
7-17 (3) accept gifts, grants, or loans from and contract
7-18 with any entity;
7-19 (4) sue and be sued;
7-20 (5) acquire and convey property or an interest in
7-21 property;
7-22 (6) procure insurance and pay premiums on insurance of
7-23 any type, in accounts, and from insurers as the department
7-24 considers necessary and advisable to accomplish any of the
7-25 department's purposes; <and>
7-26 (7) hold patents, copyrights, trademarks, or other
7-27 evidence of protection or exclusivity issued under the laws of the
8-1 United States, any state, or any nation and may enter into license
8-2 agreements with any third parties for the receipt of fees,
8-3 royalties, or other monetary or nonmonetary value;
8-4 (8) sell advertisements in any medium; and
8-5 (9) exercise any other power necessary to carry out
8-6 this chapter.
8-7 (b) Except as otherwise provided by this chapter, money paid
8-8 to the department under this chapter shall be deposited in the
8-9 state treasury.
8-10 (c) The department shall deposit contributions from private
8-11 sources in a separate fund kept and held in escrow and in trust by
8-12 the state treasurer for and on behalf of the department as funds
8-13 held outside the treasury under Section 404.073, and the money
8-14 contributed shall be used to carry out the purposes of the
8-15 department and, to the extent possible, the purposes specified by
8-16 the donors. The state treasurer may invest and reinvest the money,
8-17 pending its use, in the fund in investments authorized by law for
8-18 state funds that the state treasurer considers appropriate.
8-19 SECTION 11. Section 481.027(c), Government Code, is amended
8-20 to read as follows:
8-21 (c) The department shall maintain regional offices in
8-22 locations specified in the General Appropriations Act <maintain at
8-23 least one regional office in Europe, at least one regional office
8-24 in the Pacific Rim area, and at least one regional office in
8-25 Mexico. Each regional office may have one or more satellite
8-26 offices>.
8-27 SECTION 12. Subchapter B, Chapter 481, Government Code, is
9-1 amended by adding Section 481.028 to read as follows:
9-2 Sec. 481.028. MEMORANDUM OF UNDERSTANDING WITH OTHER STATE
9-3 AGENCIES. (a) The department shall initiate negotiations for and
9-4 enter into a memorandum of understanding with any other state
9-5 agency involved in economic development to cooperate in program
9-6 planning and budgeting.
9-7 (b) The department shall enter into an agreement as required
9-8 by Subsection (a) with the:
9-9 (1) Department of Agriculture regarding each agency's
9-10 international marketing efforts and business finance programs;
9-11 (2) Texas Employment Commission, Texas Higher
9-12 Education Coordinating Board, and Central Education Agency
9-13 regarding each agency's work force development efforts and literacy
9-14 programs;
9-15 (3) General Land Office regarding each agency's
9-16 promotion of alternative energy resources and rural economic
9-17 development efforts;
9-18 (4) Texas Department of Housing and Community Affairs
9-19 regarding each agency's community development programs;
9-20 (5) Texas Department of Transportation and Parks and
9-21 Wildlife Department regarding each agency's efforts to promote
9-22 tourism;
9-23 (6) Texas Air Control Board regarding small business
9-24 finance and permits;
9-25 (7) office of the state comptroller regarding economic
9-26 development and analyses;
9-27 (8) Texas Historical Commission regarding community
10-1 preservation, restoration, and revitalization;
10-2 (9) Texas Department of Human Services regarding work
10-3 force development;
10-4 (10) institutions of higher education regarding work
10-5 force development, literacy, and technology transfer; and
10-6 (11) Texas Water Commission regarding the marketing of
10-7 recyclable products and business permits.
10-8 (c) Each agency listed in Subsection (b) may enter into
10-9 memoranda of understanding in areas other than those listed for the
10-10 respective agency.
10-11 (d) The memorandum of understanding between the department
10-12 and the other state agency shall be adopted as a rule of each
10-13 department or agency.
10-14 SECTION 13. Subchapter B, Chapter 481, Government Code, is
10-15 amended by adding Section 481.029 to read as follows:
10-16 Sec. 481.029. COST RECOVERY. The department shall recover
10-17 the cost of providing direct technical assistance and management
10-18 training services to businesses and communities when reasonable and
10-19 practical.
10-20 SECTION 14. Sections 481.050(a) and (b), Government Code,
10-21 are amended to read as follows:
10-22 (a) A member of the policy board, the executive director, or
10-23 an agent or employee of the department, in the person's own name or
10-24 in the name of a nominee, may not hold an ownership interest of
10-25 more than the following amount in an association, trust,
10-26 corporation, partnership, or other entity that is, in its own name
10-27 or in the name of a nominee, a party to a contract or agreement
11-1 under this chapter <subchapter> on which the member of the policy
11-2 board, executive director, agent, or employee may be called on to
11-3 act or vote:
11-4 (1) 7-1/2 percent of the fair market value of the
11-5 entity; or
11-6 (2) $50,000.
11-7 (b) With respect to a direct or indirect interest, other
11-8 than an interest prohibited by Subsection (a), in a contract or
11-9 agreement under this chapter <subchapter> on which the member of
11-10 the policy board, executive director, agent, or employee may be
11-11 called on to act or vote, the member of the policy board, executive
11-12 director, agent, or employee shall disclose the interest to the
11-13 secretary of the department before the department takes final
11-14 action concerning the contract or agreement and shall disclose the
11-15 nature and extent of the interest and the person's acquisition of
11-16 it. The department shall publicly acknowledge this disclosure and
11-17 enter it in its minutes. A member of the policy board, executive
11-18 director, agent, or employee who holds such an interest may not be
11-19 officially involved in regard to the contract or agreement, may not
11-20 vote on a matter relating to the contract or agreement, and may not
11-21 communicate with the executive director or other members, agents,
11-22 or employees concerning the contract or agreement. Notwithstanding
11-23 any other provision of law, a contract or agreement entered into in
11-24 conformity with this subsection is not invalid because of an
11-25 interest described by this subsection nor is a person who complies
11-26 with this subsection guilty of an offense, and the person may not
11-27 be removed from office or be subjected to other penalty because of
12-1 the interest.
12-2 SECTION 15. Subchapter F, Chapter 481, Government Code, is
12-3 amended by adding Section 481.0831 to read as follows:
12-4 Sec. 481.0831. OFFICE OF RURAL AFFAIRS. (a) The department
12-5 shall maintain an office of rural affairs.
12-6 (b) The office shall:
12-7 (1) implement the programs established under this
12-8 subchapter; and
12-9 (2) address the special needs of rural communities and
12-10 businesses and assist those communities and businesses.
12-11 SECTION 16. Section 481.084(a), Government Code, is amended
12-12 to read as follows:
12-13 (a) The department may <shall use money in the fund to>
12-14 guarantee not more than 90 percent of a loan made by a private
12-15 lender or to make loans to fund a project. For each guarantee the
12-16 department shall determine:
12-17 (1) that the project is located in a rural area;
12-18 (2) the amount of equity the user must pledge or apply
12-19 to the establishment of the project;
12-20 (3) the fees charged by the department, including
12-21 guarantee or loan fees, application fees, annual fees, and any
12-22 other costs associated with the loan guarantee or loan, as
12-23 necessary to fund the administration of this subchapter;
12-24 (4) the maximum and minimum guarantee or loan amounts,
12-25 if applicable;
12-26 (5) the permissible interest rates and amortization
12-27 requirements for a guaranteed loan or loan, as agreed on by the
13-1 private lender, the user, and the department;
13-2 (6) the acceptable security for the department's
13-3 participation in a project; and
13-4 (7) any other terms or conditions relating to a
13-5 guarantee or loan.
13-6 SECTION 17. Subchapter F, Chapter 481, Government Code, is
13-7 amended by adding Section 481.0842 to read as follows:
13-8 Sec. 481.0842. GUARANTEE-TO-RESERVE RATIO. (a) The
13-9 department may guarantee loans as provided by Section 481.084 in an
13-10 amount that exceeds the amount available in the fund. Loan
13-11 guarantees may not exceed the guarantee-to-reserve ratio set by the
13-12 policy board under Subsection (b).
13-13 (b) The policy board by rule shall adopt a
13-14 guarantee-to-reserve ratio that determines the amount of loan
13-15 guarantees that may be made that exceed the amount available in the
13-16 fund. The ratio of guarantees to the amount of money available in
13-17 the fund may not exceed two to one.
13-18 (c) The policy board shall review the guarantee-to-reserve
13-19 ratio annually and adjust the ratio as appropriate. In reviewing
13-20 the guarantee-to-reserve ratio, the policy board shall consider the
13-21 payment experience of the loans and any recommendations of the
13-22 state auditor as provided by Subsection (d).
13-23 (d) The state auditor shall review the loan guarantee
13-24 program and payment activity and make recommendations based on that
13-25 review to the policy board about the program and the
13-26 guarantee-to-reserve ratio. A recommendation to the policy board
13-27 shall be made not later than September 1 of each year.
14-1 SECTION 18. Section 481.101(1), Government Code, is amended
14-2 to read as follows:
14-3 (1) "Historically underutilized <"Disadvantaged>
14-4 business" means:
14-5 (A) a corporation formed for the purpose of
14-6 making a profit in which at least 51 percent of all classes of the
14-7 shares of stock or other equitable securities is owned by one or
14-8 more persons who are socially disadvantaged because of their
14-9 identification as members of certain groups, including black
14-10 Americans, Hispanic Americans, women, Asian Pacific Americans, and
14-11 American Indians, who have suffered the effects of discriminatory
14-12 practices or similar insidious circumstances over which they have
14-13 no control;
14-14 (B) a sole proprietorship formed for the purpose
14-15 of making a profit that is 100 percent owned, operated, and
14-16 controlled by a person described by Paragraph (A) <of this
14-17 subdivision>;
14-18 (C) a partnership formed for the purpose of
14-19 making a profit in which 51 percent of the assets and interest in
14-20 the partnership is owned by one or more persons described by
14-21 Paragraph (A) <of this subdivision>. Those persons must have
14-22 proportionate interest in the control, operation, and management of
14-23 the partnership's affairs;
14-24 (D) a joint venture in which each entity in the
14-25 joint venture is a historically underutilized <disadvantaged>
14-26 business under this subdivision; or
14-27 (E) a supplier contract between a historically
15-1 underutilized <disadvantaged> business under this subdivision and a
15-2 prime contractor under which the historically underutilized
15-3 <disadvantaged> business is directly involved in the manufacture or
15-4 distribution of the supplies or materials or otherwise warehouses
15-5 and ships the supplies.
15-6 SECTION 19. Section 481.103(a), Government Code, is amended
15-7 to read as follows:
15-8 (a) The office shall:
15-9 (1) examine the role of small and historically
15-10 underutilized <disadvantaged> businesses in the state's economy and
15-11 the contribution of small and historically underutilized
15-12 <disadvantaged> businesses in generating economic activity,
15-13 expanding employment opportunities, promoting exports, stimulating
15-14 innovation and entrepreneurship, and bringing new and untested
15-15 products and services to the marketplace;
15-16 (2) serve as the principal advocate in the state on
15-17 behalf of small and historically underutilized <disadvantaged>
15-18 businesses and provide advice in the consideration of
15-19 administrative requirements and legislation that affect small and
15-20 historically underutilized <disadvantaged> businesses;
15-21 (3) evaluate the effectiveness of efforts of state
15-22 agencies and other entities to assist small and historically
15-23 underutilized <disadvantaged> businesses and make appropriate
15-24 recommendations to assist the development and strengthening of
15-25 small and historically underutilized businesses <disadvantaged
15-26 business enterprise>;
15-27 (4) identify specific instances in which regulations
16-1 inhibit small and historically underutilized <disadvantaged>
16-2 business development and to the extent possible identify
16-3 conflicting state policy goals;
16-4 (5) determine the availability of financial and other
16-5 resources to small and historically underutilized <disadvantaged>
16-6 businesses and recommend methods for:
16-7 (A) increasing the availability of equity
16-8 capital and other forms of financial assistance to small and
16-9 historically underutilized <disadvantaged> businesses;
16-10 (B) generating markets for the goods and
16-11 services of small and historically underutilized <disadvantaged>
16-12 businesses;
16-13 (C) providing more effective education,
16-14 training, and management and technical assistance to small and
16-15 historically underutilized <disadvantaged> businesses; and
16-16 (D) providing assistance to small and
16-17 historically underutilized <disadvantaged> businesses in complying
16-18 with federal, state, and local laws;
16-19 (6) describe the reasons for small and historically
16-20 underutilized <disadvantaged> business successes and failures,
16-21 ascertain the related factors that are particularly important in
16-22 this state, and recommend actions for increasing the success rate
16-23 of small and historically underutilized <disadvantaged> businesses;
16-24 (7) serve as a focal point for receiving complaints
16-25 and suggestions concerning state government policies and activities
16-26 that affect small and historically underutilized <disadvantaged>
16-27 businesses;
17-1 (8) assist with the resolution of problems among state
17-2 agencies and small and historically underutilized <disadvantaged>
17-3 businesses;
17-4 (9) develop and advocate proposals for changes in
17-5 state policies and activities that adversely affect small and
17-6 historically underutilized <disadvantaged> businesses;
17-7 (10) provide to legislative committees and state
17-8 agencies information on the effects of proposed policies or actions
17-9 that affect small and historically underutilized <disadvantaged>
17-10 businesses;
17-11 (11) enlist the assistance of public and private
17-12 agencies, businesses, and other organizations in disseminating
17-13 information about state programs and services that benefit small
17-14 and historically underutilized <disadvantaged> businesses and
17-15 information regarding means by which small and historically
17-16 underutilized <disadvantaged> businesses can use those programs and
17-17 services;
17-18 (12) provide information and assistance relating to
17-19 establishing, operating, or expanding small and historically
17-20 underutilized <disadvantaged> businesses;
17-21 (13) establish and operate a statewide toll-free
17-22 telephone service providing small and historically underutilized
17-23 <disadvantaged> businesses with ready access to the services
17-24 offered by the office;
17-25 (14) assist small and historically underutilized
17-26 businesses by:
17-27 (A) identifying:
18-1 (i) <identify> sources of financial
18-2 assistance for those <small and disadvantaged> businesses; and
18-3 (ii) financial barriers to those
18-4 businesses;
18-5 (B) establishing financing programs for those
18-6 businesses that aid in overcoming financial barriers;
18-7 (C) matching those<, match small and
18-8 disadvantaged> businesses with sources of financial assistance;<,>
18-9 and
18-10 (D) assisting those <assist small and
18-11 disadvantaged> businesses with the preparation of applications for
18-12 loans from governmental or private sources;
18-13 (15) sponsor meetings, to the extent practicable in
18-14 cooperation with public and private educational institutions, to
18-15 provide training and disseminate information beneficial to small
18-16 and historically underutilized <disadvantaged> businesses;
18-17 (16) assist small and historically underutilized
18-18 <disadvantaged> businesses in their dealings with federal, state,
18-19 and local governmental agencies and provide information regarding
18-20 governmental requirements affecting small and historically
18-21 underutilized <disadvantaged> businesses;
18-22 (17) perform research, studies, and analyses of
18-23 matters affecting the interests of small and historically
18-24 underutilized <disadvantaged> businesses;
18-25 (18) develop and implement programs to encourage
18-26 governmental agencies, public sector business associations, and
18-27 other organizations to provide useful services to small and
19-1 historically underutilized <disadvantaged> businesses;
19-2 (19) use available resources within the state, such as
19-3 small business development centers, educational institutions, and
19-4 nonprofit associations, to coordinate the provision of management
19-5 and technical assistance to small and historically underutilized
19-6 <disadvantaged> businesses in a systematic manner;
19-7 (20) publish newsletters, brochures, and other
19-8 documents containing information useful to small and historically
19-9 underutilized <disadvantaged> businesses;
19-10 (21) identify successful small and historically
19-11 underutilized <disadvantaged> business assistance programs provided
19-12 by other states and determine the feasibility of adapting those
19-13 programs for implementation in this state;
19-14 (22) establish an outreach program to make the
19-15 existence of the office known to small and historically
19-16 underutilized <disadvantaged> businesses and potential clients
19-17 throughout the state;
19-18 (23) adopt rules necessary to carry out this
19-19 subchapter;
19-20 (24) identify potential business opportunities for
19-21 small and historically underutilized <disadvantaged> businesses in
19-22 the border region and develop programs to maximize those
19-23 opportunities;
19-24 (25) identify potential business opportunities for
19-25 small and historically underutilized <disadvantaged> businesses in
19-26 rural areas of this state and develop programs to maximize those
19-27 opportunities; and
20-1 (26) perform any other functions necessary to carry
20-2 out the purposes of this subchapter.
20-3 SECTION 20. Section 481.107, Government Code, is amended to
20-4 read as follows:
20-5 Sec. 481.107. CONTRACTS AWARDED TO SMALL OR HISTORICALLY
20-6 UNDERUTILIZED <DISADVANTAGED> BUSINESSES. Each state agency shall
20-7 keep statistical data and other records on the number of contracts
20-8 awarded by the agency to small or historically underutilized
20-9 <disadvantaged> businesses.
20-10 SECTION 21. Section 481.155, Government Code, as added by
20-11 Chapter 1, Acts of the 73rd Legislature, Regular Session, 1993, is
20-12 amended by adding Subsection (g) to read as follows:
20-13 (g) During each state fiscal year the executive director
20-14 shall attempt to ensure that at least 50 percent of the total
20-15 dollar amount of grants awarded under this section is awarded to
20-16 small businesses, as defined by Section 481.101.
20-17 SECTION 22. Subchapter J, Chapter 481, Government Code, as
20-18 added by Chapter 1, Acts of the 73rd Legislature, Regular Session,
20-19 1993, is amended by adding Section 481.1601 to read as follows:
20-20 Sec. 481.1601. LEGISLATIVE REVIEW COMMITTEE; REPORTS. (a)
20-21 The legislative review committee is composed of:
20-22 (1) two senators appointed by the lieutenant governor;
20-23 (2) two members of the house of representatives
20-24 appointed by the speaker of the house of representatives; and
20-25 (3) one representative of business appointed by the
20-26 governor.
20-27 (b) Every six months the executive director shall submit to
21-1 the legislative review committee a report covering the previous
21-2 six-month period and containing the information required for a
21-3 report under Section 481.160. The legislative review committee
21-4 shall review the report and submit to the executive director
21-5 recommendations concerning the carrying out of the program.
21-6 (c) The executive director shall submit with the report
21-7 required under Section 481.160:
21-8 (1) copies of the recommendations that the executive
21-9 director has received from the legislative review committee during
21-10 the preceding fiscal year; and
21-11 (2) a statement of the executive director's actions
21-12 taken on the recommendations.
21-13 SECTION 23. Subchapter L, Chapter 481, Government Code, is
21-14 amended by adding Section 481.174 to read as follows:
21-15 Sec. 481.174. ADVERTISEMENTS IN TOURISM PROMOTIONS. (a)
21-16 The department may sell advertisements in travel promotions in any
21-17 medium.
21-18 (b) The policy board shall adopt rules to implement the sale
21-19 of advertisements under Subsection (a), including rules regulating:
21-20 (1) the cost of advertisements;
21-21 (2) the type of products or services that may be
21-22 advertised;
21-23 (3) the size of advertisements; and
21-24 (4) refunds on advertisements that are not run.
21-25 (c) Proceeds from the sale of advertisements shall be
21-26 deposited in the special account in the general revenue fund that
21-27 may be used for advertising and marketing activities of the
22-1 department as provided by Section 156.251, Tax Code.
22-2 SECTION 24. Section 8, Texas Enterprise Zone Act (Article
22-3 5190.7, Vernon's Texas Civil Statutes), is amended by adding
22-4 Subsection (i) to read as follows:
22-5 (i) Not later than December 1 of each year, the department
22-6 shall prepare an annual cost-benefit analysis of the program and
22-7 submit it to the state auditor for review and comment on the
22-8 methodology and conclusions of the study. Before each regular
22-9 legislative session convenes, the state auditor shall submit the
22-10 analyses and the state auditor's comments on the analyses to the
22-11 governor, the lieutenant governor, and the speaker of the house of
22-12 representatives.
22-13 SECTION 25. Sections 10(f) and (k), Texas Enterprise Zone
22-14 Act (Article 5190.7, Vernon's Texas Civil Statutes), are amended to
22-15 read as follows:
22-16 (f) The department shall allocate to each enterprise project
22-17 at the time of its designation a job ceiling number representing
22-18 the maximum number of new permanent jobs or retained jobs eligible
22-19 to be included in any calculation for a tax refund for the
22-20 enterprise project. The job ceiling number for a project may not
22-21 exceed 625 or a number equal to 110 percent of the number of new
22-22 permanent jobs or retained jobs that a qualified business in its
22-23 application for designation commits to create or retain, as
22-24 applicable, during the five-year term of its designation as an
22-25 enterprise project, whichever is less. <The maximum number of new
22-26 permanent jobs that may be allocated by the department among all
22-27 enterprise projects designated under this section between August
23-1 31, 1991, and August 31, 1993, is 10,000.>
23-2 (k) The number of new permanent jobs or retained jobs that
23-3 have not been certified <allocated> before the end of the first
23-4 <each state fiscal> year of a state fiscal biennium may be
23-5 certified during the second year of that biennium <allocated in
23-6 subsequent fiscal years, except that an enterprise project may not
23-7 be designated after August 31, 1993>.
23-8 SECTION 26. Section 151.429(b), Tax Code, is amended to read
23-9 as follows:
23-10 (b) Subject to the limitations provided by Subsection (c) of
23-11 this section, an enterprise project qualifies for a refund of taxes
23-12 under this section of $2,000 for each new permanent job or job that
23-13 has been retained by <that> the enterprise project <provides> for a
23-14 qualified employee <during the period of its designation as an
23-15 enterprise project>.
23-16 SECTION 27. The Texas Job-Training Partnership Act (Article
23-17 4413(52), Vernon's Texas Civil Statutes) is amended by adding
23-18 Sections 5A and 5B to read as follows:
23-19 Sec. 5A. RULES. The policy board of the Texas Department
23-20 of Commerce shall adopt necessary rules for the implementation and
23-21 management of the job-training program.
23-22 Sec. 5B. CONTESTED CASES. A proceeding of the Texas
23-23 Department of Commerce involving the job-training program is not
23-24 subject to the provisions of the Administrative Procedure and Texas
23-25 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) and
23-26 its subsequent amendments relating to contested cases.
23-27 SECTION 28. Section 10, Texas Job-Training Partnership Act
24-1 (Article 4413(52), Vernon's Texas Civil Statutes), is amended to
24-2 read as follows:
24-3 Sec. 10. POLICY <RULES AND REGULATIONS>. The governor may
24-4 develop policies <in accordance with the Administrative Procedure
24-5 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
24-6 Statutes), prescribe such rules and regulations as> the governor
24-7 deems necessary to carry out the provisions of this Act and the
24-8 federal Act.
24-9 SECTION 29. Section 4A, Development Corporation Act of 1979
24-10 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
24-11 amending Subsection (i) and adding Subsections (q) and (r) to read
24-12 as follows:
24-13 (i) A corporation under this section may undertake any
24-14 project that a corporation under Section 4B of this Act may
24-15 undertake <Except as provided by this subsection, the corporation
24-16 may not undertake a project the primary purpose of which is to
24-17 provide transportation facilities, solid waste disposal facilities,
24-18 or air or water pollution control facilities. However, the
24-19 corporation may provide those facilities to benefit property
24-20 acquired for a project having another primary purpose. The
24-21 corporation may undertake a municipal water supply project and
24-22 provide related transmission and treatment facilities connected
24-23 with a municipally owned or operated water system or sewage system.
24-24 The corporation may undertake a project the primary purpose of
24-25 which is to provide:>
24-26 <(1) a general aviation business service airport that
24-27 is an integral part of an industrial park; or>
25-1 <(2) port-related facilities to support waterborne
25-2 commerce>.
25-3 (3) any purpose authorized under Section 4B(a)(2) of
25-4 this Act, if the corporation is:
25-5 (A) in a city that is located wholly on an
25-6 island that is adjacent to the Gulf of Mexico and is within 35
25-7 miles of the Republic of Mexico;
25-8 (B) in a city that is located adjacent to the
25-9 Gulf of Mexico and has a population of more than 250,000 according
25-10 to the most recent federal decennial census;
25-11 (C) in a city that has a population of 150,000
25-12 or more, according to the most recent federal decennial census, and
25-13 that is located in more than one county; or
25-14 (D) a corporation located in a city eligible
25-15 under Section 4A of this Act.
25-16 (q) Before expending funds to undertake a project, a
25-17 corporation under this section shall hold at least one public
25-18 hearing on the proposed project.
25-19 (r) The department by rule shall adopt nonbinding guidelines
25-20 setting forth a process that a corporation under this section may
25-21 use in deciding the types of projects to undertake and in planning
25-22 projects.
25-23 SECTION 30. Section 4B(a)(1), Development Corporation Act of
25-24 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as amended by
25-25 S.B. No. 124, 73rd Legislature, Regular Session, 1993, is amended
25-26 to read as follows:
25-27 (1) "Eligible city" means a city:
26-1 (A) that is located wholly or partly in a county
26-2 with a population of 750,000 or more, according to the most recent
26-3 federal decennial census and in which the combined rate of all
26-4 sales and use taxes imposed by the city, the state, and other
26-5 political subdivisions of the state having territory in the city
26-6 does not exceed 7.25 percent on the date of any election held under
26-7 or made applicable to this section<; or>
26-8 <(B) that has a population of 150,000 or more,
26-9 according to the most recent federal decennial census, and that is
26-10 located in more than one county, and in which the combined rate of
26-11 all sales and use taxes imposed by the city, the state, and other
26-12 political subdivisions of the state having territory in the city,
26-13 including taxes under this section, does not exceed 8.25 percent>.
26-14 SECTION 31. During the state fiscal biennium beginning
26-15 September 1, 1993, the Texas Department of Commerce may not certify
26-16 more than 8,000 new permanent jobs or retained jobs under Section
26-17 10(f), Texas Enterprise Zone Act (Article 5190.7, Vernon's Texas
26-18 Civil Statutes), as amended by this Act, among enterprise projects
26-19 designated after August 31, 1993. An enterprise project designated
26-20 after August 31, 1993, may not receive a tax refund under Section
26-21 151.429, Tax Code, as amended by this Act, or a tax reduction under
26-22 Section 171.1015, Tax Code, before September 1, 1995.
26-23 SECTION 32. (a) The state auditor shall perform the first
26-24 review of the rural economic loan guarantee program and payment
26-25 activity and make a recommendation to the Texas Department of
26-26 Commerce policy board regarding the program and the
26-27 guarantee-to-reserve ratio as required by Section 481.0842,
27-1 Government Code, as added by this Act, not later than December 1,
27-2 1993.
27-3 (b) The Texas Department of Commerce may guarantee loans in
27-4 an amount that exceeds the amount available in the Texas rural
27-5 economic development fund as provided by Section 481.0842,
27-6 Government Code, as added by this Act, beginning January 1, 1994.
27-7 SECTION 33. Section 156.251(d), Tax Code, is amended to read
27-8 as follows:
27-9 (d) An amount equal to the amount of revenue derived from
27-10 the collection of taxes imposed by this chapter at a rate of
27-11 one-half of one percent shall be allocated <to a special account>
27-12 in the general revenue fund to be used for media advertising and
27-13 other marketing activities of the Tourism Division of the Texas
27-14 Department of Commerce. Section 403.094(h), Government Code, does
27-15 not apply to funds described in this section. This subsection
27-16 takes effect October 1, 1994.
27-17 SECTION 34. This Act takes effect September 1, 1993.
27-18 SECTION 35. For purposes of transition, the policy board of
27-19 the Texas Department of Commerce shall review all rules adopted by
27-20 the executive director and either adopt as a rule of the policy
27-21 board or repeal such rules. If a rule that was adopted by the
27-22 executive director is not adopted by the policy body by April 1,
27-23 1994, the rule is repealed. Until a rule is adopted or repealed as
27-24 provided by this section, the rule is a rule of the policy board.
27-25 SECTION 36. The policy board of the Texas Department of
27-26 Commerce shall review and either adopt as a rule of the department
27-27 or repeal all policy issuances of the department regarding the
28-1 job-training program under the Texas Job-Training Partnership Act
28-2 (Article 4413(52), Vernon's Texas Civil Statutes) not later than
28-3 September 1, 1994. If a policy issuance has not been adopted as a
28-4 rule of the department on or before September 1, 1994, the policy
28-5 issuance is repealed. Until a policy issuance is adopted as a rule
28-6 of the department or repealed as provided by this section, the
28-7 policy issuance is a rule of the department.
28-8 SECTION 37. The importance of this legislation and the
28-9 crowded condition of the calendars in both houses create an
28-10 emergency and an imperative public necessity that the
28-11 constitutional rule requiring bills to be read on three several
28-12 days in each house be suspended, and this rule is hereby suspended.