By Turner of Harris H.B. No. 2310 Substitute the following for H.B. No. 2310: By Danburg C.S.H.B. No. 2310 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to contracts between governmental entities and certain 1-3 disadvantaged businesses; providing a civil penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. DEFINITIONS. In this Act: 1-6 (1) "Contractor" means a person who submits a bid for 1-7 a public contract. The term includes a general contractor and a 1-8 subcontractor. 1-9 (2) "Disadvantaged business" has the meaning assigned 1-10 by Section 1.02, State Purchasing and General Services Act (Article 1-11 601b, Vernon's Texas Civil Statutes). 1-12 (3) "Governmental entity" means a state agency or 1-13 political subdivision of this state. 1-14 (4) "Person" means an individual, partnership, 1-15 association, corporation, or other private legal entity. 1-16 (5) "Political subdivision" means a county, 1-17 municipality, school district, or other special district or 1-18 authority of this state. 1-19 (6) "Public contract" means a purchasing contract or 1-20 public works contract awarded by a governmental entity. 1-21 (8) "State agency" means a board, commission, office, 1-22 department, or other agency in the executive, judicial, or 1-23 legislative branch of state government. The term includes an 2-1 institution of higher education as defined by Section 61.003, 2-2 Education Code. 2-3 SECTION 2. APPLICATION. This Act applies to each public 2-4 contract entered into by a governmental entity and a contractor in 2-5 which the contractor claims to be a disadvantaged business. 2-6 SECTION 3. PROHIBITED ACT. A contractor may not claim 2-7 disadvantaged business status in bidding on a public contract 2-8 unless the contractor meets the definition of a disadvantaged 2-9 business and that contractor will personally execute the terms of 2-10 the contract. 2-11 SECTION 4. CIVIL PENALTY. (a) The attorney general or a 2-12 district, county, or city attorney may institute an action in 2-13 district court to recover a civil penalty against a person who 2-14 claims disadvantaged business status and the general contractor who 2-15 knowingly contracts with a person claiming the disadvantaged 2-16 business status in violation of Section 3 of this Act. 2-17 (b) A civil penalty assessed under this section may not 2-18 exceed $1,000 for each violation. Each day of violation 2-19 constitutes a separate violation for purposes of penalty 2-20 assessment. 2-21 (c) A civil penalty recovered in an action brought by the 2-22 attorney general shall be deposited in the state treasury. A civil 2-23 penalty recovered in an action brought by a political assessment. 2-24 (c) A civil penalty recovered in an action brought by the 2-25 attorney general shall be deposited in the state treasury. A civil 3-1 penalty recovered in an action brought by a political subdivision 3-2 shall be deposited in the general fund of that political 3-3 subdivision. 3-4 (d) A civil penalty under this section is in addition to any 3-5 other criminal, civil, or administrative penalty assessed by this 3-6 state or a political subdivision to which a person in violation of 3-7 Section 3 of this Act may be liable. 3-8 SECTION 5. EFFECTIVE DATE; SAVING PROVISION. This Act takes 3-9 effect September 1, 1993, and applies only to a public contract 3-10 that is entered into on or after that date. A public contract 3-11 entered into before September 1, 1993, is governed by the law in 3-12 effect on the date that the contract was entered into, and the 3-13 former law is continued in effect for that purpose. 3-14 SECTION 6. EMERGENCY. The importance of this legislation 3-15 and the crowded condition of the calendars in both houses create an 3-16 emergency and an imperative public necessity that the 3-17 constitutional rule requiring bills to be read on three several 3-18 days in each house be suspended, and this rule is hereby suspended.