By: Van de Putte H.B. No. 1886 73R6319 LJD-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the participation of certain woman-owned, 1-3 minority-owned, and in-state businesses in the issuance of bonds. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. DEFINITIONS. In this Act: 1-6 (1) "Bond" means any bond, note, certificate of 1-7 obligation, certificate of participation, including other 1-8 instruments evidencing a proportionate interest in payments due to 1-9 be paid by an issuer, or other obligation that is issued or 1-10 incurred by an issuer in the exercise in whole or in part of its 1-11 borrowing power, regardless of whether it is subject to annual 1-12 appropriation, and is represented by an instrument issued in bearer 1-13 or registered form or not represented by an instrument but the 1-14 transfer of which is registered on books maintained for the purpose 1-15 by or on behalf of the issuer. 1-16 (2) "Issuance" means the initial delivery by the 1-17 issuer of evidence of the obligation of the bond to the initial 1-18 purchaser in exchange for the purchase price of the bond. 1-19 (3) "Issuer" means any department, board, authority, 1-20 agency, subdivision, municipal corporation, district, public 1-21 corporation, political subdivision, body politic, or 1-22 instrumentality of this state of every kind or type and any 1-23 nonprofit corporation acting for or on behalf of any of those 1-24 entities. 2-1 (4) "Minority group member" includes an individual 2-2 identified as: 2-3 (A) African American; 2-4 (B) Native American; 2-5 (C) Asian American; or 2-6 (D) Mexican American or other American of 2-7 Hispanic origin. 2-8 (5) "Minority-owned business" means a business entity 2-9 in which at least 51 percent of the ownership interests in the 2-10 entity are held by one or more minority group members, including a 2-11 corporation in which at least 51 percent of the shares are owned by 2-12 one or more minority group members, and that is managed, operated, 2-13 and controlled by one or more minority group members. 2-14 (6) "Woman-owned business" means a business entity in 2-15 which at least 51 percent of the ownership interests in the entity 2-16 are held by one or more women, including a corporation in which at 2-17 least 51 percent of the shares are owned by one or more women, and 2-18 that is managed, operated, and controlled by one or more women. 2-19 SECTION 2. PARTICIPATION BY WOMAN-OWNED AND MINORITY-OWNED 2-20 BUSINESSES IN BOND ISSUANCES. An issuer shall make a good faith 2-21 effort to include woman-owned and minority-owned businesses as 2-22 businesses receiving: 2-23 (1) contracts for the purchase of services and 2-24 supplies used in connection with the issuance of at least 20 2-25 percent of the total dollar value of bonds issued by the issuer 2-26 each fiscal year; and 2-27 (2) at least 20 percent of the total compensation paid 3-1 by the issuer each fiscal year in connection with the issuance of 3-2 bonds. 3-3 SECTION 3. REPORT TO GOVERNOR AND LEGISLATURE. Each issuer 3-4 shall submit a report to the governor and the legislature at the 3-5 end of each fiscal year that includes: 3-6 (1) the name of each woman-owned and minority-owned 3-7 business participating in any issuance that fiscal year; 3-8 (2) the number of woman-owned and minority-owned 3-9 businesses submitting bids or proposals in connection with an 3-10 issuance that fiscal year; and 3-11 (3) the amount of bonds issued during that fiscal year 3-12 and the estimated amount of compensation received for participation 3-13 in the issuance by each woman-owned and minority-owned business. 3-14 SECTION 4. PREFERENCE FOR BUSINESS LOCATED IN STATE. An 3-15 issuer shall give a preference to a business that maintains an 3-16 office located in this state that is dedicated to conducting public 3-17 finance undertakings if the cost and quality of services being 3-18 offered or bid by the business in connection with the issuance of 3-19 bonds are equal to the cost and quality of services being offered 3-20 or bid by a business that does not maintain an office in this state 3-21 dedicated to conducting public finance undertakings. 3-22 SECTION 5. EMERGENCY. The importance of this legislation 3-23 and the crowded condition of the calendars in both houses create an 3-24 emergency and an imperative public necessity that the 3-25 constitutional rule requiring bills to be read on three several 3-26 days in each house be suspended, and this rule is hereby suspended, 3-27 and that this Act take effect and be in force from and after its 4-1 passage, and it is so enacted.