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.
    1-5        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.