1-1  By:  Lucio, West, Rosson                               S.B. No. 223
    1-2        (In the Senate - Filed February 1, 1993; February 2, 1993,
    1-3  read first time and referred to Committee on Economic Development;
    1-4  April 23, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 8, Nays 0; April 23, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Parker                                         x   
   1-10        Lucio              x                               
   1-11        Ellis              x                               
   1-12        Haley              x                               
   1-13        Harris of Dallas                               x   
   1-14        Harris of Tarrant  x                               
   1-15        Leedom             x                               
   1-16        Madla              x                               
   1-17        Rosson             x                               
   1-18        Shapiro            x                               
   1-19        Wentworth                                      x   
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 223                    By:  Lucio
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the provision by the state of guarantees and
   1-24  indemnification relating to surety bonds for historically
   1-25  underutilized businesses; authorizing the issuance of bonds.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  The heading of Subchapter G, Chapter 481,
   1-28  Government Code, is amended to read as follows:
   1-29      SUBCHAPTER G.  <SMALL BUSINESS> ASSISTANCE FOR HISTORICALLY
   1-30             UNDERUTILIZED BUSINESSES AND SMALL BUSINESSES
   1-31        SECTION 2.  Section 481.101, Government Code, is amended by
   1-32  amending Subdivisions (1) and (3) and adding Subdivisions (4), (5),
   1-33  (6), (7), (8), (9), (10), (11), and (12) to read as follows:
   1-34              (1)  "Historically underutilized business"
   1-35  <"Disadvantaged business"> means:
   1-36                    (A)  a corporation formed for the purpose of
   1-37  making a profit in which at least 51 percent of all classes of the
   1-38  shares of stock or other equitable securities is owned by one or
   1-39  more persons who are socially  disadvantaged because of their
   1-40  identification as members of certain groups, including black
   1-41  Americans, Hispanic Americans, women, Asian Pacific Americans, and
   1-42  American Indians, who have suffered the effects of discriminatory
   1-43  practices or similar insidious circumstances over which they have
   1-44  no control.  Those persons must have proportionate interest and
   1-45  demonstrate active participation in the control, operation, and
   1-46  management of the corporation's affairs;
   1-47                    (B)  a sole proprietorship formed for the purpose
   1-48  of making a profit that is 100 percent owned, operated, and
   1-49  controlled by a person described by Paragraph (A) of this
   1-50  subdivision;
   1-51                    (C)  a partnership formed for the purpose of
   1-52  making a profit in which 51 percent of the assets and interest in
   1-53  the partnership is owned by one or more persons described by
   1-54  Paragraph (A) of this subdivision.  Those persons must have
   1-55  proportionate interest and demonstrate active participation in the
   1-56  control, operation, and management of the partnership's affairs; or
   1-57                    (D)  a joint venture in which each entity in the
   1-58  joint venture is a historically underutilized <disadvantaged>
   1-59  business under this subdivision<; or>
   1-60                    <(E)  a supplier contract between a disadvantaged
   1-61  business under this subdivision and a prime contractor under which
   1-62  the disadvantaged business is directly involved in the manufacture
   1-63  or distribution of the supplies or materials or otherwise
   1-64  warehouses and ships the supplies>.
   1-65              (3)  "Small business" means a corporation, partnership,
   1-66  sole proprietorship, or other legal entity that:
   1-67                    (A)  is formed for the purpose of making a
   1-68  profit,<;>
    2-1                    <(B)>  is independently owned and operated,<;>
    2-2  and
    2-3                    <(C)>  has fewer than 100 employees or less than
    2-4  $1 million in annual gross receipts; or
    2-5                    (B)  otherwise qualifies as a small business
    2-6  under the standards of the United States Small Business
    2-7  Administration.
    2-8              (4)  "Surety bond fund" means the Texas historically
    2-9  underutilized business surety bond fund.
   2-10              (5)  "Bid bond" means a bond conditioned on the bidder
   2-11  on a contract entering into the contract, if the bidder receives
   2-12  the award of the contract, and furnishing the prescribed payment
   2-13  bond and performance bond.
   2-14              (6)  "Payment bond" means a bond conditioned on the
   2-15  payment by the principal of money to persons under contract with
   2-16  the principal.
   2-17              (7)  "Performance bond" means a bond conditioned on the
   2-18  completion by the principal of a contract in accordance with its
   2-19  terms.
   2-20              (8)  "Surety" means the person who:
   2-21                    (A)  under the terms of a bid bond, undertakes to
   2-22  pay a sum of money to the obligee in the event the principal
   2-23  breaches the conditions of the bond;
   2-24                    (B)  under the terms of a performance bond,
   2-25  undertakes to incur the cost of fulfilling a contract in the event
   2-26  the principal breaches the contract;
   2-27                    (C)  under the terms of a payment bond,
   2-28  undertakes to pay all persons supplying labor and material in
   2-29  carrying out the work provided for in the contract if the principal
   2-30  fails to make prompt payment; or
   2-31                    (D)  is an agent, independent agent, underwriter,
   2-32  or any other company or individual empowered to act on behalf of
   2-33  such a person.
   2-34              (9)  "Obligee" means:
   2-35                    (A)  for a bid bond, the person requesting bids
   2-36  for the performance of a contract; or
   2-37                    (B)  for a payment bond or performance bond, the
   2-38  person who has contracted with a principal for the completion of
   2-39  the contract and to whom the obligation of the surety runs in the
   2-40  event of a breach by the principal of the conditions of the bond.
   2-41              (10)  "Principal" means for a bid bond, a person
   2-42  bidding for the award of a contract, or for a payment bond or
   2-43  performance bond, the person primarily liable to complete a
   2-44  contract for the obligee, or to make payments to other persons in
   2-45  respect of a contract, and for whose performance of the person's
   2-46  obligation the surety is bound under the terms of the bond.  The
   2-47  term includes a prime contractor or a subcontractor.
   2-48              (11)  "Prime contractor" means the person with whom the
   2-49  obligee has contracted to perform the contract.
   2-50              (12)  "Subcontractor" means a person who has contracted
   2-51  with a prime contractor or with another subcontractor to perform a
   2-52  contract.
   2-53        SECTION 3.  Subchapter G, Chapter 481, Government Code, is
   2-54  amended by adding Section 481.1011 to read as follows:
   2-55        Sec. 481.1011.  EXCLUSION AS HISTORICALLY UNDERUTILIZED
   2-56  BUSINESS.  A business is not a historically underutilized business
   2-57  if an owner of the business has a personal net worth of more than
   2-58  $750,000, unless the office determines that the person has
   2-59  demonstrated that the person is a socially disadvantaged individual
   2-60  described by Section 481.101(1)(A).  For the purposes of this
   2-61  section, "personal net worth" has the meaning assigned by the
   2-62  regulations of the United States Small Business Administration in
   2-63  13 C.F.R. Section 124.106.
   2-64        SECTION 4.  Sections 481.103 and 481.107, Government Code,
   2-65  are amended to read as follows:
   2-66        Sec. 481.103.  Duties.  (a)  The office shall:
   2-67              (1)  examine the role of small and historically
   2-68  underutilized <disadvantaged> businesses in the state's economy and
   2-69  the contribution of small and historically underutilized
   2-70  <disadvantaged> businesses in generating economic activity,
    3-1  expanding employment opportunities, promoting exports, stimulating
    3-2  innovation and entrepreneurship, and bringing new and untested
    3-3  products and services to the marketplace;
    3-4              (2)  serve as the principal advocate in the state on
    3-5  behalf of small and historically underutilized <disadvantaged>
    3-6  businesses and provide advice in the consideration of
    3-7  administrative requirements and legislation that affect small and
    3-8  historically underutilized <disadvantaged> businesses;
    3-9              (3)  evaluate the effectiveness of efforts of state
   3-10  agencies and other entities to assist small and historically
   3-11  underutilized <disadvantaged> businesses and make appropriate
   3-12  recommendations to assist the development and strengthening of
   3-13  small and historically underutilized <disadvantaged> business
   3-14  enterprise;
   3-15              (4)  identify specific instances in which regulations
   3-16  inhibit small and historically underutilized <disadvantaged>
   3-17  business development and to the extent possible identify
   3-18  conflicting state policy goals;
   3-19              (5)  determine the availability of financial and other
   3-20  resources to small and historically underutilized <disadvantaged>
   3-21  businesses and recommend methods for:
   3-22                    (A)  increasing the availability of equity
   3-23  capital and other forms of financial assistance to small and
   3-24  historically underutilized <disadvantaged> businesses;
   3-25                    (B)  generating markets for the goods and
   3-26  services of small and historically underutilized <disadvantaged>
   3-27  businesses;
   3-28                    (C)  providing more effective education,
   3-29  training, and management and technical assistance to small and
   3-30  historically underutilized <disadvantaged> businesses; and
   3-31                    (D)  providing assistance to small and
   3-32  historically underutilized <disadvantaged> businesses in complying
   3-33  with federal, state, and local laws;
   3-34              (6)  describe the reasons for small and historically
   3-35  underutilized <disadvantaged> business successes and failures,
   3-36  ascertain the related factors that are particularly important in
   3-37  this state, and recommend actions for increasing the success rate
   3-38  of small and historically underutilized <disadvantaged> businesses;
   3-39              (7)  serve as a focal point for receiving complaints
   3-40  and suggestions concerning state government policies and activities
   3-41  that affect small and historically underutilized <disadvantaged>
   3-42  businesses;
   3-43              (8)  assist with the resolution of problems among state
   3-44  agencies and small and historically underutilized <disadvantaged>
   3-45  businesses;
   3-46              (9)  develop and advocate proposals for changes in
   3-47  state policies and activities that adversely affect small and
   3-48  historically underutilized <disadvantaged> businesses;
   3-49              (10)  provide to legislative committees and state
   3-50  agencies information on the effects of proposed policies or actions
   3-51  that affect small and historically underutilized <disadvantaged>
   3-52  businesses;
   3-53              (11)  enlist the assistance of public and private
   3-54  agencies, businesses, and other organizations in disseminating
   3-55  information about state programs and services that benefit small
   3-56  and historically underutilized <disadvantaged> businesses and
   3-57  information regarding means by which small and historically
   3-58  underutilized <disadvantaged> businesses can use those programs and
   3-59  services;
   3-60              (12)  provide information and assistance relating to
   3-61  establishing, operating, or expanding small and historically
   3-62  underutilized <disadvantaged> businesses;
   3-63              (13)  establish and operate a statewide toll-free
   3-64  telephone service providing small and historically underutilized
   3-65  <disadvantaged> businesses with ready access to the services
   3-66  offered by the office;
   3-67              (14)  identify sources of financial assistance for
   3-68  small and historically underutilized <disadvantaged> businesses,
   3-69  match small and historically underutilized <disadvantaged>
   3-70  businesses with sources of financial assistance, and assist small
    4-1  and historically underutilized <disadvantaged> businesses with the
    4-2  preparation of applications for loans from governmental or private
    4-3  sources;
    4-4              (15)  sponsor meetings, to the extent practicable in
    4-5  cooperation with public and private educational institutions, to
    4-6  provide training and disseminate information beneficial to small
    4-7  and historically underutilized <disadvantaged> businesses;
    4-8              (16)  assist small and historically underutilized
    4-9  <disadvantaged> businesses in their dealings with federal, state,
   4-10  and local governmental agencies and provide information regarding
   4-11  governmental requirements affecting small and historically
   4-12  underutilized <disadvantaged> businesses;
   4-13              (17)  perform research, studies, and analyses of
   4-14  matters affecting the interests of small and historically
   4-15  underutilized <disadvantaged> businesses;
   4-16              (18)  develop and implement programs to encourage
   4-17  governmental agencies, public sector business associations, and
   4-18  other organizations to provide useful services to small and
   4-19  historically underutilized <disadvantaged> businesses;
   4-20              (19)  use available resources within the state, such as
   4-21  small business development centers, educational institutions, and
   4-22  nonprofit associations, to coordinate the provision of management
   4-23  and technical assistance to small and historically underutilized
   4-24  <disadvantaged> businesses in a systematic manner;
   4-25              (20)  publish newsletters, brochures, and other
   4-26  documents containing information useful to small and historically
   4-27  underutilized <disadvantaged> businesses;
   4-28              (21)  identify successful small and historically
   4-29  underutilized <disadvantaged> business assistance programs provided
   4-30  by other states and determine the feasibility of adapting those
   4-31  programs for implementation in this state;
   4-32              (22)  establish an outreach program to make the
   4-33  existence of the office known to small and historically
   4-34  underutilized <disadvantaged> businesses and potential clients
   4-35  throughout the state;
   4-36              (23)  adopt rules necessary to carry out this
   4-37  subchapter;
   4-38              (24)  identify potential business opportunities for
   4-39  small and historically underutilized <disadvantaged> businesses in
   4-40  the border region and develop programs to maximize those
   4-41  opportunities;
   4-42              (25)  identify potential business opportunities for
   4-43  small and historically underutilized <disadvantaged> businesses in
   4-44  rural areas of this state and develop programs to maximize those
   4-45  opportunities; and
   4-46              (26)  perform any other functions necessary to carry
   4-47  out the purposes of this subchapter.
   4-48        (b)  The department may provide community-based services to
   4-49  carry out its duties under this chapter, including the creation of
   4-50  a pilot program to evaluate the merits of locating full-time
   4-51  personnel outside the Austin headquarters.  This pilot program will
   4-52  give first preference to serving economically distressed areas,
   4-53  rural areas, or historically underutilized <disadvantaged>
   4-54  businesses or assisting development of specific industries.  The
   4-55  department may require areas served by these personnel to provide
   4-56  in-kind or cash contributions as necessary to support these
   4-57  personnel.   A report will be submitted to the legislature
   4-58  describing the effectiveness of this method for delivering services
   4-59  from the department to address specific economic needs.
   4-60        Sec. 481.107.  CONTRACTS AWARDED TO SMALL OR HISTORICALLY
   4-61  UNDERUTILIZED <DISADVANTAGED> BUSINESSES.  Each state agency shall
   4-62  keep statistical data and other records on the number of contracts
   4-63  awarded by the agency to small or historically underutilized
   4-64  <disadvantaged> businesses.
   4-65        SECTION 5.  Subchapter G, Chapter 481, Government Code, is
   4-66  amended by adding Sections 481.118, 481.119, 481.120, 481.1201,
   4-67  481.1202, 481.1203, and 481.1204 to read as follows:
   4-68        Sec. 481.118.  Texas Historically Underutilized Business
   4-69  Surety Bond Fund.  (a)  The Texas historically underutilized
   4-70  business surety bond fund is a revolving fund in the state
    5-1  treasury.  The surety bond fund consists of money appropriated to
    5-2  the department, proceeds of general obligation bonds issued to
    5-3  provide surety bonds under this subchapter, bonding fees, and other
    5-4  amounts received by the state from the guarantee program under this
    5-5  subchapter and money acquired from federal grants or other sources
    5-6  and required by resolution of the policy board to be deposited in
    5-7  the surety bond fund.  The surety bond fund contains a program
    5-8  account, an interest and sinking account, and other accounts that
    5-9  the policy board authorizes to be created and maintained.  Money in
   5-10  the surety bond fund is available for use by the office for the
   5-11  surety bond program provided by this subchapter.
   5-12        (b)  Money in the program account, minus the costs of
   5-13  issuance of general obligation bonds to provide surety bonds under
   5-14  this subchapter and necessary costs of administering the surety
   5-15  bond fund, may be used only to provide guarantees and
   5-16  indemnification under Sections 481.119 through 481.1203.
   5-17        Sec. 481.119.  GUARANTEE OF SURETY.  (a)  The office may
   5-18  guarantee and enter into commitments to guarantee a surety against
   5-19  loss resulting from breach of the terms of a bid bond, payment
   5-20  bond, or performance bond by a historically underutilized business
   5-21  that is the principal on a contract if the amount of the contract
   5-22  is $1,250,000 or less.  The terms of a guarantee or commitment may
   5-23  vary from surety to surety based on the office's experience with a
   5-24  particular surety.  The office may authorize a surety without
   5-25  further approval to issue, monitor, and service a bond subject to a
   5-26  guarantee.
   5-27        (b)  A guarantee may not be issued unless:
   5-28              (1)  the person to be the principal under the bond is a
   5-29  historically underutilized business;
   5-30              (2)  the bond is required by the person to bid on a
   5-31  contract or to serve as a prime contractor or subcontractor on a
   5-32  contract;
   5-33              (3)  the person is not able to obtain the bond on
   5-34  reasonable terms without the guarantee;
   5-35              (4)  there is a reasonable expectation that the
   5-36  principal will perform the contract; and
   5-37              (5)  the terms of the bond are reasonable considering
   5-38  the risks involved and the extent of the surety's participation.
   5-39        (c)  A payment made under a guarantee may not exceed 90
   5-40  percent of the loss involved.
   5-41        Sec. 481.120.  INDEMNIFICATION.  (a)  In connection with the
   5-42  issuance of a guarantee under Section 481.119, the office may agree
   5-43  to indemnify a surety against a loss the surety incurs in avoiding
   5-44  or attempting to avoid a breach of the terms of the bond.  The
   5-45  office must authorize the specific expenditure to be indemnified
   5-46  before the expenditure is made and after the office determines that
   5-47  the breach is imminent and the amount of the proposed expenditure
   5-48  is reasonable.
   5-49        (b)  The amount of the indemnification may not exceed 90
   5-50  percent of the amount of the expenditure indemnified.
   5-51        Sec. 481.1201.  EXCEPTIONS TO PAYMENT.  The office is not
   5-52  required to pay any amount under a guarantee under Section 481.119
   5-53  or an agreement under Section 481.120 if the surety:
   5-54              (1)  obtained the guarantee or agreement or applied for
   5-55  reimbursement by fraud or material misrepresentation;
   5-56              (2)  has breached a material term of the guarantee or
   5-57  agreement; or
   5-58              (3)  has violated a rule adopted under Section
   5-59  481.1203.
   5-60        Sec. 481.1202.  REPORTS; AUDIT.  (a)  A participating surety
   5-61  shall make reports to the office at the times and in the form the
   5-62  office requires.
   5-63        (b)  The office at any reasonable time may audit any material
   5-64  in the hands of a surety relevant to a guarantee under Section
   5-65  481.119 or an agreement under Section 481.120.  The office must
   5-66  conduct the audit at the surety's offices.
   5-67        Sec. 481.1203.  RULES.  The policy board shall adopt
   5-68  necessary rules to carry out the guarantee program created by this
   5-69  subchapter.  The rules may prescribe reasonable fees to be paid by
   5-70  a principal or surety participating in the program.
    6-1        Sec. 481.1204.  SURETY BOND FUND:  GENERAL OBLIGATION BONDS.
    6-2  (a)  The policy board may issue up to $50 million of general
    6-3  obligation bonds and may use the proceeds to provide surety bonds
    6-4  under this subchapter.  The policy board shall deposit the proceeds
    6-5  of the general obligation bonds in the surety bond fund and apply
    6-6  them in accordance with the resolutions authorizing those bonds.
    6-7  The surety bond fund and any accounts established in the fund shall
    6-8  be held in trust by the state treasurer for and on behalf of the
    6-9  office and the owners of the general obligation bonds issued in
   6-10  accordance with this section and may be used only as provided by
   6-11  this section.  Pending use, the treasurer may invest and reinvest
   6-12  money in the surety bond fund in investments authorized by law for
   6-13  state funds that the treasurer, consistent with the policy board's
   6-14  resolutions authorizing the general obligation bonds, considers
   6-15  appropriate.  Payment for the provision of a surety bond provided
   6-16  under this subchapter shall be deposited, first, in the interest
   6-17  and sinking account as prescribed by the policy board's resolutions
   6-18  authorizing general obligation bonds under this subchapter and,
   6-19  second, in any reserve account established by the policy board
   6-20  until that account is fully funded as prescribed by the policy
   6-21  board's resolutions.  If, during the time any general obligation
   6-22  bonds are payable from the interest and sinking account, the policy
   6-23  board determines that there will not be sufficient money in the
   6-24  interest and sinking account during the following fiscal year to
   6-25  pay the principal of or interest on the general obligation bonds or
   6-26  both the principal and interest that are to come due during the
   6-27  following fiscal year, the comptroller shall transfer to the fund
   6-28  the first money coming into the state treasury not otherwise
   6-29  appropriated by the constitution in an amount sufficient to pay the
   6-30  obligations.
   6-31        (b)  The general obligation bonds may be issued from time to
   6-32  time in one or more series or issues, in bearer, registered, or any
   6-33  other form, which may include registered uncertificated obligations
   6-34  not represented by written instruments and commonly known as
   6-35  book-entry obligations, the registration of ownership and transfer
   6-36  of which shall be provided for by the policy board under a system
   6-37  of books and records maintained by the office or by an agent
   6-38  appointed by the policy board in a resolution providing for
   6-39  issuance of its general obligation bonds.  General obligation bonds
   6-40  may mature serially or otherwise not more than 40 years from their
   6-41  date.  General obligation bonds may bear no interest or may bear
   6-42  interest at any rate or rates, fixed, variable, floating, or
   6-43  otherwise, determined by the policy board or determined pursuant to
   6-44  any contractual arrangements approved by the policy board, not to
   6-45  exceed the maximum net effective interest rate allowed by Chapter
   6-46  3, Acts of the 61st Legislature, Regular Session, 1969 (Article
   6-47  717k-2, Vernon's Texas Civil Statutes).  Interest on the general
   6-48  obligation bonds may be payable at any time, and the rate of
   6-49  interest on the general obligation bonds may be adjusted at any
   6-50  time determined by the policy board pursuant to the resolutions
   6-51  authorizing the bonds or determined pursuant to any contractual
   6-52  arrangement approved by the policy board.  In connection with the
   6-53  issuance of its general obligation bonds, the policy board may
   6-54  exercise the powers granted to the governing body of an issuer in
   6-55  connection with the issuance of obligations under Chapter 656, Acts
   6-56  of the 68th Legislature, Regular Session, 1983 (Article 717q,
   6-57  Vernon's Texas Civil Statutes), to the extent not inconsistent with
   6-58  this section.  The general obligation bonds may be issued in the
   6-59  form and denominations and executed in the manner and under the
   6-60  terms, conditions, and details determined by the policy board in
   6-61  the resolution authorizing their issuance.  If any officer whose
   6-62  manual or facsimile signature appears on the general obligation
   6-63  bonds ceases to be an officer, the signature remains valid and
   6-64  sufficient for all purposes as if the officer had remained in
   6-65  office.
   6-66        (c)  All general obligation bonds issued by the policy board
   6-67  under this section are subject to review and approval by the
   6-68  attorney general in the same manner and with the same effect as is
   6-69  provided by Chapter 656, Acts of the 68th Legislature, Regular
   6-70  Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
    7-1        (d)  The general obligation bonds are a legal and authorized
    7-2  investment for a bank, trust company, savings and loan association,
    7-3  insurance company, fiduciary, trustee, or guardian or a sinking
    7-4  fund of a municipality, county, school district, or political
    7-5  subdivision of the state.  The general obligation bonds may secure
    7-6  deposits of public funds of the state or a municipality, county,
    7-7  school district, or another political corporation or subdivision of
    7-8  the state.  The policy board may issue bonds to refund all or part
    7-9  of its outstanding general obligation bonds, including accrued but
   7-10  unpaid interest.  The general obligation bonds, a transaction
   7-11  relating to those bonds, or a profit made in the sale of those
   7-12  bonds is exempt from taxation by the state, an agency or
   7-13  subdivision of the state, a municipality, or a special district.
   7-14        SECTION 6.   The policy board of the Texas Department of
   7-15  Commerce may not issue more than $25 million of bonds under Section
   7-16  481.1204, Government Code, as added by this Act, during the state
   7-17  fiscal biennium beginning September 1, 1993.
   7-18        SECTION 7.  This Act takes effect on the date on which the
   7-19  constitutional amendment proposed by S.J.R. 10, 73rd Legislature,
   7-20  Regular Session, 1993, takes effect.  If that proposed
   7-21  constitutional amendment is not approved by the voters, this Act
   7-22  has no effect.
   7-23        SECTION 8.  The importance of this legislation and the
   7-24  crowded condition of the calendars in both houses create an
   7-25  emergency   and   an   imperative   public   necessity   that   the
   7-26  constitutional rule requiring bills to be read on three several
   7-27  days in each house be suspended, and this rule is hereby suspended.
   7-28                               * * * * *
   7-29                                                         Austin,
   7-30  Texas
   7-31                                                         April 23, 1993
   7-32  Hon. Bob Bullock
   7-33  President of the Senate
   7-34  Sir:
   7-35  We, your Committee on Economic Development to which was referred
   7-36  S.B. No. 223, have had the same under consideration, and I am
   7-37  instructed to report it back to the Senate with the recommendation
   7-38  that it do not pass, but that the Committee Substitute adopted in
   7-39  lieu thereof do pass and be printed.
   7-40                                                         Parker,
   7-41  Chairman
   7-42                               * * * * *
   7-43                               WITNESSES
   7-44                                                  FOR   AGAINST  ON
   7-45  ___________________________________________________________________
   7-46  Name:  John Pouland                                            x
   7-47  Representing:  GSC
   7-48  City:  Austin
   7-49  -------------------------------------------------------------------
   7-50  Name:  Ernesto Chavarria                         x
   7-51  Representing:  TAMACC
   7-52  City:  Austin
   7-53  -------------------------------------------------------------------
   7-54  Name:  Joe H. Morin                              x
   7-55  Representing:  TAMACC
   7-56  City:  Austin
   7-57  -------------------------------------------------------------------
   7-58  Name:  Berto Guerra, Jr.                         x
   7-59  Representing:  TAMACC
   7-60  City:  Austin
   7-61  -------------------------------------------------------------------
   7-62  Name:  Wardaleen F. Belvin                                     x
   7-63  Representing:  Lt. Governor's Office
   7-64  City:  Austin
   7-65  -------------------------------------------------------------------
   7-66  Name:  David R. Pinkus                           x
   7-67  Representing:  Small Business United of TX
   7-68  City:  Austin
   7-69  -------------------------------------------------------------------
   7-70  Name:  Maricela Rodriguez Barr                   x
    8-1  Representing:  The Barr Company
    8-2  City:  Austin
    8-3  -------------------------------------------------------------------
    8-4  Name:  Frances Cornejo                           x
    8-5  Representing:  J.P. Printing
    8-6  City:  Austin
    8-7  -------------------------------------------------------------------
    8-8                                                  FOR   AGAINST  ON
    8-9  ___________________________________________________________________
   8-10  Name:  Carol S. Hadnot                           x
   8-11  Representing:  Austin Black Contractors Ass.
   8-12  City:  Austin
   8-13  -------------------------------------------------------------------
   8-14  Name:  Devoyd Jennings                           x
   8-15  Representing:  Tx. State Black Chambers
   8-16  City:  Ft. Worth
   8-17  -------------------------------------------------------------------
   8-18  Name:  Richard Barth                             x
   8-19  Representing:  AGC of Texas
   8-20  City:  Austin
   8-21  -------------------------------------------------------------------
   8-22  Name:  Martin Burrell                            x
   8-23  Representing:  DART
   8-24  City:  Dallas
   8-25  -------------------------------------------------------------------
   8-26  Name:  Karen Box                                 x
   8-27  Representing:  Cap. City Chambers of Comm.
   8-28  City:  Austin
   8-29  -------------------------------------------------------------------
   8-30  Name:  Michael Von Ohlen                         x
   8-31  Representing:  Prism Development
   8-32  City:  Austin
   8-33  -------------------------------------------------------------------
   8-34  Name:  Franklin D. Thomas                        x
   8-35  Representing:  Engercon Group
   8-36  City:  Dallas
   8-37  -------------------------------------------------------------------
   8-38  Name:  Lena Guerrero                             x
   8-39  Representing:  Southwest Capitol Markets
   8-40  City:  Austin
   8-41  -------------------------------------------------------------------
   8-42  Name:  Wendle Van Smith                          x
   8-43  Representing:  Self
   8-44  City:  Houston
   8-45  -------------------------------------------------------------------
   8-46  Name:  Carl Davis                                x
   8-47  Representing:  Self
   8-48  City:  Houston
   8-49  -------------------------------------------------------------------
   8-50  Name:  Reginald Gates                            x
   8-51  Representing:  Ft. Worth/Black Chambers
   8-52  City:  Ft. Worth
   8-53  -------------------------------------------------------------------
   8-54  Name:  Dave Tovar                                x
   8-55  Representing:  SA Hispanic Chamber of Comm.
   8-56  City:  San Antonio
   8-57  -------------------------------------------------------------------
   8-58  Name:  John Hernandez                            x
   8-59  Representing:  Austin Hispanic Chamber
   8-60  City:  Austin
   8-61  -------------------------------------------------------------------
   8-62  Name:  Esther Sepeda                             x
   8-63  Representing:  TAMACC
   8-64  City:  Austin
   8-65  -------------------------------------------------------------------
   8-66  Name:  Rudy Colmenero                            x
   8-67  Representing:  TAMACC
   8-68  City:  Austin
   8-69  -------------------------------------------------------------------
   8-70  Name:  Cesar Perez                               x
    9-1  Representing:  TAMACC
    9-2  City:  Rio Grande City
    9-3  -------------------------------------------------------------------
    9-4  Name:  Jose A. Sena                              x
    9-5  Representing:  TAMACC/Dallas Hisp. Chamber
    9-6  City:  Dallas
    9-7  -------------------------------------------------------------------
    9-8                                                  FOR   AGAINST  ON
    9-9  ___________________________________________________________________
   9-10  Name:  Charlie Ponzio                            x
   9-11  Representing:  El Paso Hispanic Chamber
   9-12  City:  El Paso
   9-13  -------------------------------------------------------------------
   9-14  Name:  Marco A. Arredondo                        x
   9-15  Representing:  Corpus Hispanic Chamber
   9-16  City:  Corpus Christi
   9-17  -------------------------------------------------------------------
   9-18  Name:  Lydia Marie Trevino                       x
   9-19  Representing:  SEGUIN
   9-20  City:  Seguin
   9-21  -------------------------------------------------------------------
   9-22  Name:  Henry G. Flores                           x
   9-23  Representing:  Austin Hispanic Chamber
   9-24  City:  Austin
   9-25  -------------------------------------------------------------------
   9-26  Name:  Ronald J. Alonzo                          x
   9-27  Representing:  Fort Worth Hispanic Chamber
   9-28  City:  Forth Worth
   9-29  -------------------------------------------------------------------
   9-30  Name:  Jose F. Molina                            x
   9-31  Representing:  Odessa MANO
   9-32  City:  Odessa
   9-33  -------------------------------------------------------------------
   9-34  Name:  Dan Sotomayor                             x
   9-35  Representing:  TAMACC, El Paso Chamber
   9-36  City:  El Paso
   9-37  -------------------------------------------------------------------
   9-38  Name:  Larry E. Romero                           x
   9-39  Representing:  El Paso Hispanic Chamber
   9-40  City:  El Paso
   9-41  -------------------------------------------------------------------
   9-42  Name:  Anthony D. Lyons                          x
   9-43  Representing:  Law office of Anthony D. Lyon
   9-44  City:  Dallas
   9-45  -------------------------------------------------------------------
   9-46  Name:  Jesse Miranda                             x
   9-47  Representing:  Miranda, Inc.
   9-48  City:  Austin
   9-49  -------------------------------------------------------------------
   9-50  Name:  Dan McNeil                                              x
   9-51  Representing:  TX Dept. of Commerce
   9-52  City:  Austin
   9-53  -------------------------------------------------------------------
   9-54  Name:  John Knox                                               x
   9-55  Representing:  Universal Surety of America
   9-56  City:  Houston
   9-57  -------------------------------------------------------------------
   9-58  Name:  Robert Bass                                             x
   9-59  Representing:  Lumberman's Assoc. of TX
   9-60  City:  Austin
   9-61  -------------------------------------------------------------------
   9-62  Name:  Calvin Stephens                           x             x
   9-63  Representing:  DART Surety Support Program
   9-64  City:  Dallas
   9-65  -------------------------------------------------------------------
   9-66  Name:  Charles Hardy                             x
   9-67  Representing:  Austin Industries
   9-68  City:  Dallas
   9-69  -------------------------------------------------------------------
   9-70  Name:  Etta J. Mullin                            x
   10-1  Representing:  Self
   10-2  City:  Dallas
   10-3  -------------------------------------------------------------------