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
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