1-1 By: Van de Putte, et al. (Senate Sponsor - Lucio) H.B. No. 1886 1-2 (In the Senate - Received from the House May 12, 1993; 1-3 May 13, 1993, read first time and referred to Committee on State 1-4 Affairs; May 24, 1993, reported favorably by the following vote: 1-5 Yeas 11, Nays 1; May 24, 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 participation of certain woman-owned, 1-24 minority-owned, and in-state businesses in the issuance of bonds. 1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-26 SECTION 1. DEFINITIONS. In this Act: 1-27 (1) "Bond" means any bond, note, certificate of 1-28 obligation, certificate of participation, including other 1-29 instruments evidencing a proportionate interest in payments due to 1-30 be paid by an issuer, or other obligation that is issued or 1-31 incurred by an issuer in the exercise in whole or in part of its 1-32 borrowing power, regardless of whether it is subject to annual 1-33 appropriation, and is represented by an instrument issued in bearer 1-34 or registered form or not represented by an instrument but the 1-35 transfer of which is registered on books maintained for the purpose 1-36 by or on behalf of the issuer. 1-37 (2) "Issuance" means the initial delivery by the 1-38 issuer of evidence of the obligation of the bond to the initial 1-39 purchaser in exchange for the purchase price of the bond. 1-40 (3) "Issuer" means any department, board, authority, 1-41 agency, subdivision, municipal corporation, district, public 1-42 corporation, political subdivision, body politic, or 1-43 instrumentality of this state of every kind or type and any 1-44 nonprofit corporation acting for or on behalf of any of those 1-45 entities. 1-46 (4) "Minority group member" includes an individual 1-47 identified as: 1-48 (A) African American; 1-49 (B) Native American; 1-50 (C) Asian American; or 1-51 (D) Mexican American or other American of 1-52 Hispanic origin. 1-53 (5) "Minority-owned business" means a business entity 1-54 in which at least 51 percent of the ownership interests in the 1-55 entity are held by one or more minority group members, including a 1-56 corporation in which at least 51 percent of the shares are owned by 1-57 one or more minority group members, and that is managed, operated, 1-58 and controlled by one or more minority group members. 1-59 (6) "Woman-owned business" means a business entity in 1-60 which at least 51 percent of the ownership interests in the entity 1-61 are held by one or more women, including a corporation in which at 1-62 least 51 percent of the shares are owned by one or more women, and 1-63 that is managed, operated, and controlled by one or more women. 1-64 SECTION 2. PARTICIPATION BY WOMAN-OWNED AND MINORITY-OWNED 1-65 BUSINESSES IN BOND ISSUANCES. An issuer shall make a good faith 1-66 effort to include woman-owned and minority-owned businesses as 1-67 businesses receiving: 1-68 (1) contracts for the purchase of services and 2-1 supplies used in connection with the issuance of at least 20 2-2 percent of the total dollar value of bonds issued by the issuer 2-3 each fiscal year; and 2-4 (2) at least 20 percent of the total compensation paid 2-5 by the issuer each fiscal year in connection with the issuance of 2-6 bonds. 2-7 SECTION 3. REPORT TO GOVERNOR AND LEGISLATURE. Each issuer 2-8 shall submit a report to the governor and the legislature at the 2-9 end of each fiscal year that includes: 2-10 (1) the name of each woman-owned and minority-owned 2-11 business participating in any issuance that fiscal year; 2-12 (2) the number of woman-owned and minority-owned 2-13 businesses submitting bids or proposals in connection with an 2-14 issuance that fiscal year; and 2-15 (3) the amount of bonds issued during that fiscal year 2-16 and the estimated amount of compensation received for participation 2-17 in the issuance by each woman-owned and minority-owned business. 2-18 SECTION 4. PREFERENCE FOR BUSINESS LOCATED IN STATE. An 2-19 issuer shall give a preference to a business that maintains an 2-20 office located in this state that is dedicated to conducting public 2-21 finance undertakings if the cost and quality of services being 2-22 offered or bid by the business in connection with the issuance of 2-23 bonds are equal to the cost and quality of services being offered 2-24 or bid by a business that does not maintain an office in this state 2-25 dedicated to conducting public finance undertakings. 2-26 SECTION 5. EMERGENCY. The importance of this legislation 2-27 and the 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 and that this Act take effect and be in force from and after its 2-32 passage, and it is so enacted. 2-33 * * * * * 2-34 Austin, 2-35 Texas 2-36 May 24, 1993 2-37 Hon. Bob Bullock 2-38 President of the Senate 2-39 Sir: 2-40 We, your Committee on State Affairs to which was referred H.B. 2-41 No. 1886, have had the same under consideration, and I am 2-42 instructed to report it back to the Senate with the recommendation 2-43 that it do pass and be printed. 2-44 Harris of 2-45 Dallas, Chairman 2-46 * * * * * 2-47 WITNESSES 2-48 FOR AGAINST ON 2-49 ___________________________________________________________________ 2-50 Name: Lena Guerrero x 2-51 Representing: Southwestern Capital Markets 2-52 City: San Antonio 2-53 -------------------------------------------------------------------