1-1  By:  Junell (Senate Sponsor - Harris of Dallas)       H.B. No. 1878
    1-2        (In the Senate - Received from the House May 17, 1993;
    1-3  May 18, 1993, read first time and referred to Committee on State
    1-4  Affairs; May 21, 1993, reported favorably by the following vote:
    1-5  Yeas 7, Nays 1; May 21, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Harris of Dallas                               x   
    1-9        Rosson             x                               
   1-10        Carriker           x                               
   1-11        Henderson                                      x   
   1-12        Leedom             x                               
   1-13        Lucio                                          x   
   1-14        Luna               x                               
   1-15        Nelson                     x                       
   1-16        Patterson          x                               
   1-17        Shelley            x                               
   1-18        Sibley             x                               
   1-19        West                                           x   
   1-20        Whitmire                                       x   
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the issuance of general obligation bonds by the Texas
   1-24  Agricultural Finance Authority and to the authority's efforts to
   1-25  support minority-owned and women-owned businesses.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Section 58.031(c), Agriculture Code, is amended
   1-28  to read as follows:
   1-29        (c)  The authority may issue and sell general obligation
   1-30  bonds of the state not to exceed $100 <$25> million outstanding at
   1-31  any one time for the purpose of providing money to establish a
   1-32  Texas agricultural fund.  The authority may issue the bonds in one
   1-33  or several installments.
   1-34        SECTION 2.  Section 58.021, Agriculture Code, is amended by
   1-35  adding Subsections (c), (d), (e), and (f) to read as follows:
   1-36        (c)  The authority shall make a good faith effort to:
   1-37              (1)  award to minority-owned businesses contracts
   1-38  relating to the issuance of bonds by the authority under this
   1-39  chapter in the amount of 20 percent of the total costs of issuing
   1-40  those bonds; and
   1-41              (2)  approve for minority-owned businesses loan
   1-42  guarantees in the amount of at least 20 percent of the total loan
   1-43  guarantees approved by the authority.
   1-44        (d)  The authority shall make a good faith effort to:
   1-45              (1)  award to women-owned businesses contracts relating
   1-46  to the issuance of bonds by the authority under this chapter in the
   1-47  amount of 10 percent of the total costs of issuing those bonds; and
   1-48              (2)  approve for women-owned businesses loan guarantees
   1-49  in the amount of at least 10 percent of the total loan guarantees
   1-50  approved by the authority.
   1-51        (e)  Not later than November 30 of each year, the authority
   1-52  shall file a written report with the governor and each house of the
   1-53  legislature containing the following information for the previous
   1-54  fiscal year by minority group, by gender, and by region of the
   1-55  state:
   1-56              (1)  the total dollar amount of loan guarantees
   1-57  approved by the authority;
   1-58              (2)  the total number of loan guarantees approved by
   1-59  the authority;
   1-60              (3)  the total number of businesses submitting
   1-61  applications to the authority for loan guarantees;
   1-62              (4)  the total number of contracts relating to the
   1-63  issuance of bonds by the authority under this chapter;
   1-64              (5)  the total dollar amount the authority must pay
   1-65  under each contract described by Subdivision (4) of this section;
   1-66  and
   1-67              (6)  the total number of businesses submitting bids or
   1-68  proposals relating to the issuance of bonds by the authority under
    2-1  this chapter.
    2-2        (f)  In this section:
    2-3              (1)  "Minority-owned business" means a business entity
    2-4  at least 51 percent of which is owned by members of a minority
    2-5  group or, in the case of a corporation, at least 51 percent of the
    2-6  shares of which are owned by members of a minority group and that
    2-7  is managed and controlled by members of a minority group in its
    2-8  daily operations.
    2-9              (2)  "Minority group" includes:
   2-10                    (A)  African Americans;
   2-11                    (B)  American Indians;
   2-12                    (C)  Asian Americans; and
   2-13                    (D)  Mexican Americans and other Americans of
   2-14  Hispanic origin.
   2-15              (3)  "Women-owned business" means a business entity at
   2-16  least 51 percent of which is owned by women or, in the case of a
   2-17  corporation, at least 51 percent of the shares of which are owned
   2-18  by women and that is managed and controlled by women in its daily
   2-19  operations.
   2-20        SECTION 3.  This Act takes effect on the date of the adoption
   2-21  of the constitutional amendment proposed by the 73rd Legislature,
   2-22  Regular Session, 1993, providing for an increase in the principal
   2-23  amount of bonds for the support of the Texas agricultural fund that
   2-24  may be outstanding at one time.  If that amendment is not adopted,
   2-25  this Act has no effect.
   2-26        SECTION 4.  The importance of this legislation and the
   2-27  crowded condition of the calendars in both houses create an
   2-28  emergency and an imperative public necessity that the
   2-29  constitutional rule requiring bills to be read on three several
   2-30  days in each house be suspended, and this rule is hereby suspended.
   2-31                               * * * * *
   2-32                                                         Austin,
   2-33  Texas
   2-34                                                         May 21, 1993
   2-35  Hon. Bob Bullock
   2-36  President of the Senate
   2-37  Sir:
   2-38  We, your Committee on State Affairs to which was referred H.B.
   2-39  No. 1878, have had the same under consideration, and I am
   2-40  instructed to report it back to the Senate with the recommendation
   2-41  that it do pass and be printed.
   2-42                                                         Rosson,
   2-43  Vice-Chairman
   2-44                               * * * * *
   2-45                               WITNESSES
   2-46                                                  FOR   AGAINST  ON
   2-47  ___________________________________________________________________
   2-48  Name:  Margaret Spearman                                       x
   2-49  Representing:  TX Dept of Agriculture
   2-50  City:  Austin
   2-51  -------------------------------------------------------------------