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.