1-1  By:  Lucio, West, Rosson                               S.B. No. 224
    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. 224                    By:  Lucio
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the treatment of small businesses and historically
   1-24  underutilized businesses by state governmental entities; providing
   1-25  penalties.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  SHORT TITLE.  This Act may be cited as the Small
   1-28  Business Assistance Act.
   1-29        SECTION 2.  LEGISLATIVE FINDINGS AND INTENT.  The legislature
   1-30  finds that an indispensable element of the American economic system
   1-31  is free and vigorous competition and that the preservation and
   1-32  expansion of economic competition is essential to the economic
   1-33  well-being of this state and of the United States.  The legislature
   1-34  further finds that the continuing vitality of small businesses and
   1-35  historically underutilized businesses is of utmost importance to
   1-36  economic competition and that it is the policy of this state to
   1-37  ensure economic competition by assisting small businesses and
   1-38  historically underutilized businesses to the greatest extent
   1-39  possible.  It is the intent of the legislature, by this Act, to
   1-40  provide that assistance to small businesses and historically
   1-41  underutilized businesses and, by doing so, to promote economic
   1-42  competition to the benefit of all persons in this state.
   1-43        SECTION 3.  DEFINITIONS.  In this Act:
   1-44              (1)  "Commission" means the General Services
   1-45  Commission.
   1-46              (2)  "Department" means the Texas Department of
   1-47  Commerce.
   1-48              (3)  "Financial institution" means a state or federally
   1-49  chartered bank, savings bank, savings and loan association, or
   1-50  credit union in this state.
   1-51              (4)  "Historically underutilized business" means:
   1-52                    (A)  a corporation formed for the purpose of
   1-53  making a profit in which at least 51 percent of all classes of the
   1-54  shares of stock or other equitable securities is owned by one or
   1-55  more persons who are socially disadvantaged because of their
   1-56  identification as members of certain groups, including black
   1-57  Americans, Hispanic Americans, women, Asian Pacific Americans, and
   1-58  American Indians, who have suffered the effects of discriminatory
   1-59  practices or similar insidious circumstances over which they have
   1-60  no control.  Those persons must have proportionate interest and
   1-61  demonstrate active participation in the control, operation, and
   1-62  management of the corporation's affairs;
   1-63                    (B)  a sole proprietorship formed for the purpose
   1-64  of making a profit that is 100 percent owned, operated, and
   1-65  controlled by a person described by Paragraph (A) of this
   1-66  subdivision;
   1-67                    (C)  a partnership formed for the purpose of
   1-68  making a profit in which 51 percent of the assets and interest in
    2-1  the partnership is owned by one or more persons described by
    2-2  Paragraph (A) of this subdivision.  Those persons must have
    2-3  proportionate interest and demonstrate active participation in the
    2-4  control, operation, and management of the partnership's affairs; or
    2-5                    (D)  a joint venture in which each entity in the
    2-6  joint venture is a historically underutilized business under this
    2-7  subdivision.
    2-8              (5)  "Small business" means a corporation, partnership,
    2-9  sole proprietorship, or other legal entity that:
   2-10                    (A)  is formed for the purpose of making a
   2-11  profit, is independently owned and operated, and has fewer than 100
   2-12  employees or less than $1 million in annual gross receipts; or
   2-13                    (B)  otherwise qualifies as a small business
   2-14  under the standards of the United States Small Business
   2-15  Administration.
   2-16              (6)  "State governmental entity" means:
   2-17                    (A)  a state agency;
   2-18                    (B)  an institution of higher education, as
   2-19  defined by Section 61.003, Education Code;
   2-20                    (C)  an entity expressly created by statute and
   2-21  having statewide jurisdiction; or
   2-22                    (D)  another entity issuing a bond or other
   2-23  obligation on behalf of the state or on behalf of an entity listed
   2-24  in Paragraph (A) or (B) of this subdivision.
   2-25              (7)  "Supplier contract" means a contract between a
   2-26  small business or historically underutilized business and a prime
   2-27  contractor under which the small business or historically
   2-28  underutilized business is directly involved in the manufacture or
   2-29  distribution of the supplies or materials or otherwise warehouses
   2-30  and ships the supplies.
   2-31              (8)  "Women-owned business" means:
   2-32                    (A)  a corporation formed for the purpose of
   2-33  making a profit in which at least 51 percent of all classes of the
   2-34  shares of stock or other equitable securities is owned by one or
   2-35  more women and in which women have a proportionate interest and
   2-36  demonstrate active participation in the control, operation, and
   2-37  management of the corporation's affairs;
   2-38                    (B)  a sole proprietorship formed for the purpose
   2-39  of making a profit that is 100 percent owned, operated, and
   2-40  controlled by a woman;
   2-41                    (C)  a partnership formed for the purpose of
   2-42  making a profit in which 51 percent of the assets and interest in
   2-43  the partnership is owned by one or more women and in which women
   2-44  have a proportionate interest and demonstrate active participation
   2-45  in the control, operation, and management of the partnership's
   2-46  affairs; or
   2-47                    (D)  a joint venture in which each entity in the
   2-48  joint venture is a women-owned business under this subdivision.
   2-49        SECTION 4.  EXCLUSION AS HISTORICALLY UNDERUTILIZED BUSINESS.
   2-50  (a)  A business is not a historically underutilized business if an
   2-51  owner of the business has a personal net worth of more than
   2-52  $750,000, unless the department determines that the person has
   2-53  demonstrated that the person is a socially disadvantaged individual
   2-54  described by Section 481.101(1)(A), Government Code, and its
   2-55  subsequent amendments.
   2-56        (b)  For the purposes of this section, "personal net worth"
   2-57  has the meaning assigned by the regulations of the United States
   2-58  Small Business Administration in 13 C.F.R. Section 124.106 and its
   2-59  subsequent amendments.
   2-60        SECTION 5.  DUTIES OF STATE GOVERNMENTAL ENTITIES.  (a)  Each
   2-61  state governmental entity shall make a good faith effort to assist
   2-62  historically underutilized businesses to receive not less than 35
   2-63  percent of the total value of each contract award for construction
   2-64  and the purchase of supplies, materials, services, and equipment
   2-65  that the state governmental entity expects to make.
   2-66        (b)  Each state governmental entity shall keep statistical
   2-67  data and other records on the number of contracts awarded by the
   2-68  state governmental entity and each operating division of the state
   2-69  governmental entity to small businesses or historically
   2-70  underutilized businesses.
    3-1        (c)  Each state governmental entity shall report to the
    3-2  commission the total number and dollar amount of contracts,
    3-3  subcontracts, and supplier contracts paid to small businesses and
    3-4  historically underutilized businesses.  These reports shall be made
    3-5  quarterly according to guidelines established by the commission.
    3-6        SECTION 6.  DUTIES OF GENERAL SERVICES COMMISSION.  (a)  The
    3-7  commission shall certify businesses that are historically
    3-8  underutilized businesses.  As part of its certification procedures,
    3-9  the commission shall approve a municipal program that certifies
   3-10  historically underutilized businesses under substantially the same
   3-11  definition prescribed by this Act and shall certify businesses
   3-12  certified by the municipality as historically underutilized
   3-13  businesses under this Act.
   3-14        (b)  The commission shall compile a directory of businesses
   3-15  certified as historically underutilized businesses under Subsection
   3-16  (a) of this section.  The commission shall update the directory at
   3-17  least semiannually in the most cost-efficient format and provide a
   3-18  copy of the directory to each state agency semiannually.  The
   3-19  commission and state agencies shall use the directory in
   3-20  determining awards of state purchasing and public works contracts.
   3-21        (c)  The commission shall compile and analyze the reports
   3-22  submitted under Subsection (c) of Section 5 of this Act and submit
   3-23  a report based on the analysis to the presiding officer and each
   3-24  member of each house of the legislature each fiscal year.
   3-25        (d)  The commission shall offer assistance and training to
   3-26  small businesses and historically underutilized businesses
   3-27  regarding state procurement procedures.  The commission shall
   3-28  advise small businesses and historically underutilized businesses
   3-29  of the availability of state contracts and advise small businesses
   3-30  and historically underutilized businesses to enter the businesses'
   3-31  names on the state's bid list.
   3-32        (e)  The commission shall work with public and private
   3-33  entities to establish a method to provide information on contracts
   3-34  and requests for proposals to the public in a timely and efficient
   3-35  manner.
   3-36        (f)  The commission shall electronically post bid
   3-37  solicitations with the department for dissemination through the
   3-38  Texas Marketplace or another appropriate method of dissemination.
   3-39        (g)  To increase participation of small businesses and
   3-40  historically underutilized businesses in state purchasing term
   3-41  contracts, the commission shall attempt to purchase items that are
   3-42  not the same or essentially similar under separate contracts.
   3-43  Contracts should be reviewed to determine if it is feasible and if
   3-44  a reasonable opportunity exists for a small business and
   3-45  historically underutilized business to perform any part of the
   3-46  contract.  The commission may award one or more parts of a contract
   3-47  to more than one bidder.
   3-48        (h)  The commission shall make a good faith effort to assist
   3-49  historically underutilized businesses to receive not less than 35
   3-50  percent of the total value of each contract award for construction
   3-51  and the purchase of supplies, materials, services, and equipment
   3-52  that the commission makes for a state agency.
   3-53        (i)  The commission shall report to the governor, lieutenant
   3-54  governor, and speaker of the house of representatives during each
   3-55  fiscal year the level of implementation of the participation goals
   3-56  during the preceding fiscal year.  If the participation goals are
   3-57  not being met, the commission and each state agency not meeting its
   3-58  goals shall report the reasons for the inability to meet the goals.
   3-59        SECTION 7.  DUTIES OF TEXAS DEPARTMENT OF COMMERCE.  (a)  The
   3-60  department shall:
   3-61              (1)  examine the role of small businesses and
   3-62  historically underutilized businesses in the state's economy and
   3-63  the contribution of small businesses and historically underutilized
   3-64  businesses in generating economic activity, expanding employment
   3-65  opportunities, promoting exports, stimulating innovation and
   3-66  entrepreneurship, and bringing new and untested products and
   3-67  services to the marketplace;
   3-68              (2)  serve as the principal advocate in the state on
   3-69  behalf of small businesses and historically underutilized
   3-70  businesses and provide advice in the consideration of
    4-1  administrative requirements and legislation that affect small
    4-2  businesses and historically underutilized businesses;
    4-3              (3)  evaluate the effectiveness of efforts of state
    4-4  agencies and other entities to assist small businesses and
    4-5  historically underutilized businesses and make appropriate
    4-6  recommendations to assist the development and strengthening of
    4-7  small business and historically underutilized business enterprise;
    4-8              (4)  identify specific instances in which regulations
    4-9  inhibit small business and historically underutilized business
   4-10  development and to the extent possible identify conflicting state
   4-11  policy goals;
   4-12              (5)  determine the availability of financial and other
   4-13  resources to small businesses and historically underutilized
   4-14  businesses and recommend methods for:
   4-15                    (A)  increasing the availability of equity
   4-16  capital and other forms of financial assistance to small businesses
   4-17  and historically underutilized businesses;
   4-18                    (B)  generating markets for the goods and
   4-19  services of small businesses and historically underutilized
   4-20  businesses;
   4-21                    (C)  providing more effective education,
   4-22  training, and management and technical assistance to small
   4-23  businesses and historically underutilized businesses; and
   4-24                    (D)  providing assistance to small businesses and
   4-25  historically underutilized businesses in complying with federal,
   4-26  state, and local laws;
   4-27              (6)  describe the reasons for small business and
   4-28  historically underutilized business successes and failures,
   4-29  ascertain the related factors that are particularly important in
   4-30  this state, and recommend actions for increasing the success rate
   4-31  of small businesses and historically underutilized businesses;
   4-32              (7)  serve as a focal point for receiving complaints
   4-33  and suggestions concerning state government policies and activities
   4-34  that affect small businesses and historically underutilized
   4-35  businesses;
   4-36              (8)  assist with the resolution of problems among state
   4-37  agencies and small businesses and historically underutilized
   4-38  businesses;
   4-39              (9)  develop and advocate proposals for changes in
   4-40  state policies and activities that adversely affect small
   4-41  businesses and historically underutilized businesses;
   4-42              (10)  provide to legislative committees and state
   4-43  agencies information on the effects of proposed policies or actions
   4-44  that affect small businesses and historically underutilized
   4-45  businesses;
   4-46              (11)  enlist the assistance of public and private
   4-47  agencies, businesses, and other organizations in disseminating
   4-48  information about state programs and services that benefit small
   4-49  businesses and historically underutilized businesses and
   4-50  information regarding means by which small businesses and
   4-51  historically underutilized businesses can use those programs and
   4-52  services;
   4-53              (12)  provide information and assistance relating to
   4-54  establishing, operating, or expanding small businesses and
   4-55  historically underutilized businesses;
   4-56              (13)  establish and operate a statewide toll-free
   4-57  telephone service providing small businesses and historically
   4-58  underutilized businesses with ready access to the services offered
   4-59  by the department and other state agencies;
   4-60              (14)  identify sources of financial assistance for
   4-61  small businesses and historically underutilized businesses, match
   4-62  small businesses and historically underutilized businesses with
   4-63  sources of financial assistance, and assist small businesses and
   4-64  historically underutilized businesses with the preparation of
   4-65  applications for loans from governmental or private sources;
   4-66              (15)  sponsor meetings, to the extent practicable in
   4-67  cooperation with public and private educational institutions, to
   4-68  provide training and disseminate information beneficial to small
   4-69  businesses and historically underutilized businesses;
   4-70              (16)  assist small businesses and historically
    5-1  underutilized businesses in their dealings with federal, state, and
    5-2  local governmental agencies and provide information regarding
    5-3  governmental requirements affecting small businesses and
    5-4  historically underutilized businesses;
    5-5              (17)  perform research, studies, and analyses of
    5-6  matters affecting the interests of small businesses and
    5-7  historically underutilized businesses;
    5-8              (18)  develop and implement programs to encourage
    5-9  governmental agencies, public sector business associations, and
   5-10  other organizations to provide useful services to small businesses
   5-11  and historically underutilized businesses;
   5-12              (19)  use available resources within the state, such as
   5-13  small business development centers, educational institutions, and
   5-14  nonprofit associations, to coordinate the provision of management
   5-15  and technical assistance to small businesses and historically
   5-16  underutilized businesses in a systematic manner;
   5-17              (20)  publish newsletters, brochures, and other
   5-18  documents containing information useful to small businesses and
   5-19  historically underutilized businesses;
   5-20              (21)  identify successful small business and
   5-21  historically underutilized business assistance programs provided by
   5-22  other states and determine the feasibility of adapting those
   5-23  programs for implementation in this state;
   5-24              (22)  establish an outreach program to make the
   5-25  existence of the department's assistance known to small businesses
   5-26  and historically underutilized businesses and potential clients
   5-27  throughout the state;
   5-28              (23)  adopt rules necessary to carry out this section;
   5-29              (24)  identify potential business opportunities for
   5-30  small businesses and historically underutilized businesses in the
   5-31  border region and develop programs to maximize those opportunities;
   5-32              (25)  identify potential business opportunities for
   5-33  small businesses and historically underutilized businesses in rural
   5-34  areas of this state and develop programs to maximize those
   5-35  opportunities; and
   5-36              (26)  perform any other functions necessary to carry
   5-37  out the purposes of this section.
   5-38        (b)  The department may provide community-based services to
   5-39  carry out its duties under this section, including the creation of
   5-40  a pilot program to evaluate the merits of locating full-time
   5-41  personnel outside the Austin headquarters.  This pilot program will
   5-42  give first preference to serving economically distressed areas,
   5-43  rural areas, or historically underutilized businesses or assisting
   5-44  development of specific industries.  The department may require
   5-45  areas served by these personnel to provide in-kind or cash
   5-46  contributions as necessary to support these personnel.   A report
   5-47  will be submitted to the legislature describing the effectiveness
   5-48  of this method for delivering services from the department to
   5-49  address specific economic needs.
   5-50        SECTION 8.  DUTIES OF THE STATE BOARD OF INSURANCE.  (a)  The
   5-51  State Board of Insurance shall maintain records and submit a report
   5-52  to the governor and the legislature not later than February 1 of
   5-53  each odd-numbered year relating to bonds governed by Chapter 7,
   5-54  Insurance Code, and its subsequent amendments.  The report must
   5-55  include:
   5-56              (1)  the number of bond applications made to surety
   5-57  companies;
   5-58              (2)  the number of bond applicants that were small
   5-59  businesses or historically underutilized businesses;
   5-60              (3)  the number and amount of bonds authorized by
   5-61  surety companies;
   5-62              (4)  the number and amount of bonds that were issued to
   5-63  small businesses or historically underutilized businesses; and
   5-64              (5)  a breakdown of the bonds issued to small
   5-65  businesses or historically underutilized businesses by ethnicity
   5-66  and sex.
   5-67        (b)  Copies of the report must also be filed with the
   5-68  commission and department.
   5-69        SECTION 9.  DUTIES OF LEGISLATIVE BUDGET BOARD.  The
   5-70  Legislative Budget Board shall submit an annual report to the
    6-1  department and the commission stating for each state agency the
    6-2  capital budget items and term contract purchases of the state
    6-3  agency during the previous state fiscal year.
    6-4        SECTION 10.  DUTIES OF FINANCIAL INSTITUTIONS.  (a)  Each
    6-5  year on a date determined by the state treasurer, a financial
    6-6  institution must file with the state treasurer, the commission, and
    6-7  the department a report for the preceding year that includes:
    6-8              (1)  the number of small businesses and historically
    6-9  underutilized businesses that applied for a loan with the financial
   6-10  institution;
   6-11              (2)  the number of loans that were made to small
   6-12  businesses and historically underutilized businesses; and
   6-13              (3)  the number of small businesses and historically
   6-14  underutilized businesses that were denied a request for a loan and
   6-15  the reason for the denial.
   6-16        (b)  The timely annual filing by a financial institution of a
   6-17  report of condition required by 12 U.S.C. Section 1817(a)(3), and
   6-18  its subsequent amendments, that contains the information required
   6-19  by Section 122, Federal Deposit Insurance Corporation Improvement
   6-20  Act of 1991 (Pub. L. 102-242), and its subsequent amendments, with
   6-21  the appropriate federal agency on the form prescribed by that
   6-22  agency constitutes compliance with the reporting requirements of
   6-23  this section, unless the federal reserve board fails or refuses to
   6-24  publish that information as required by Section 477, Federal
   6-25  Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C.
   6-26  Section 251), and its subsequent amendments, and the state
   6-27  treasurer notifies the financial institution that the federal
   6-28  reserve board has failed to publish that information and requests
   6-29  the financial institution to forward to the state treasurer the
   6-30  portion of the report of condition that contains the information
   6-31  required by Section 122, Federal Deposit Insurance Corporation
   6-32  Improvement Act of 1991.  Forwarding the requested portion of the
   6-33  report of condition to the state treasurer constitutes compliance
   6-34  with the reporting requirements of this section.
   6-35        (c)  This section does not require a financial institution to
   6-36  collect or report information relating to the race, sex, religion,
   6-37  or ethnicity of a borrower or a loan applicant to the extent the
   6-38  collection or reporting of that information is prohibited or
   6-39  restricted by any other law of this state or the United States.
   6-40        (d)  If the state treasurer determines that a financial
   6-41  institution is improperly denying loans to small businesses or
   6-42  historically underutilized businesses, the treasurer may prohibit
   6-43  funds of the state or another governmental entity over which the
   6-44  treasurer has control from being deposited with the financial
   6-45  institution.
   6-46        (e)  On the request of a small business or a historically
   6-47  underutilized business that is the recipient of a contract from the
   6-48  state or a local unit of government, a financial institution shall
   6-49  assist the business in the establishment of a collateralized
   6-50  operating line of credit that is consistent with the dollar value
   6-51  of the business contract.  If a financial institution is able to
   6-52  provide this line of credit, the line of credit must:
   6-53              (1)  provide for draws on at least a weekly basis to
   6-54  meet operating expenses; and
   6-55              (2)  be secured by the business's accounts receivable
   6-56  or alternative security or collateral.
   6-57        SECTION 11.  CRIMINAL PENALTY.  (a)  A person commits an
   6-58  offense if the person intentionally applies as a historically
   6-59  underutilized business for an award of a contract governed by this
   6-60  Act and the person knowingly does not meet the definition of a
   6-61  historically underutilized business under this Act.
   6-62        (b)  A person commits an offense if the person intentionally
   6-63  applies as a small business for an award of a contract governed by
   6-64  this Act and the person knowingly does not meet the definition of
   6-65  small business under this Act.
   6-66        (c)  An offense under this section is a felony of the third
   6-67  degree.
   6-68        SECTION 12.  CONFORMING AMENDMENTS.  Sections 3.07 and 3.10,
   6-69  State Purchasing and General Services Act (Article 601b, Vernon's
   6-70  Texas Civil Statutes), are amended to read as follows:
    7-1        Sec. 3.07.  Emergency Purchases.  <(a)>  The commission shall
    7-2  provide for emergency purchases by a state agency and may set a
    7-3  monetary limit on the amount of each emergency purchase.
    7-4        <(b)  Each emergency purchase made under this section is
    7-5  subject to the disadvantaged business provisions of Section 3.10 of
    7-6  this article.>
    7-7        Sec. 3.10.  Purchase Methods.  <(a)>  In purchasing supplies,
    7-8  materials, services, and equipment the commission may use, but is
    7-9  not limited to, the contract purchase procedure, the multiple award
   7-10  contract procedure, and the open market purchase procedure.  The
   7-11  commission shall have the authority to combine orders in a system
   7-12  of schedule purchasing, and it shall at all times try to benefit
   7-13  from purchasing in bulk.  All purchases of and contracts for
   7-14  supplies, materials, services, and equipment shall, except as
   7-15  provided herein, be based whenever possible on competitive bids.
   7-16        <(b)  The commission shall make a good faith effort to assist
   7-17  disadvantaged businesses to receive at least 10 percent of the
   7-18  total value of all contract awards for the purchase of supplies,
   7-19  materials, services, and equipment that the commission expects to
   7-20  make for a state agency in its fiscal year.  The commission shall
   7-21  estimate the expected total value of an agency's contract awards
   7-22  not later than the 60th day of the agency's fiscal year and may
   7-23  revise the estimate as new information requires.>
   7-24        SECTION 13.  REPEALER.  The following are repealed:
   7-25              (1)  Subchapter G, Chapter 481, Government Code;
   7-26              (2)  Sections 465.0081, 481.078(f), and 493.012,
   7-27  Government Code;
   7-28              (3)  Section 12.029, Agriculture Code;
   7-29              (4)  Sections 11.912 and 61.0571, Education Code;
   7-30              (5)  Sections 1.02(3), 1.03, 1.04, and 5.36, State
   7-31  Purchasing and General Services Act (Article 601b, Vernon's Texas
   7-32  Civil Statutes);
   7-33              (6)  Section 2.06, State Lottery Act (Article 179g,
   7-34  Vernon's Texas Civil Statutes);
   7-35              (7)  Article 6669c, Revised Statutes; and
   7-36              (8)  Section 24, Chapter 410, Acts of the 53rd
   7-37  Legislature, Regular Session, 1953 (Article 6674v, Vernon's Texas
   7-38  Civil Statutes).
   7-39        SECTION 14.  STUDY BY COMPTROLLER.  (a)  Before January 1,
   7-40  1994, the comptroller shall prepare a disparity and capacity study
   7-41  regarding state contracting.  Each state governmental entity shall
   7-42  report as necessary to and cooperate with the comptroller in the
   7-43  preparation of the study.
   7-44        (b)  The study must identify the available capacity,
   7-45  potential availability, and goals for small businesses and
   7-46  historically underutilized businesses for geographical and
   7-47  industrial segments of the state.
   7-48        (c)  Before February 1, 1994, the comptroller shall
   7-49  distribute the report to each state governmental entity and the
   7-50  legislature.
   7-51        (d)  This section expires February 1, 1994.
   7-52        SECTION 15.  APPLICATION.  This Act applies only to a
   7-53  contract awarded on or after the effective date of this Act.  A
   7-54  contract awarded before the effective date of this Act is governed
   7-55  by the law in effect when the contract was awarded, and that law is
   7-56  continued in effect for that purpose.
   7-57        SECTION 16.  EFFECTIVE DATE.  This Act takes effect September
   7-58  1, 1993.
   7-59        SECTION 17.  EMERGENCY.  The importance of this legislation
   7-60  and the crowded condition of the calendars in both houses create an
   7-61  emergency and an imperative public necessity that the
   7-62  constitutional rule requiring bills to be read on three several
   7-63  days in each house be suspended, and this rule is hereby suspended.
   7-64                               * * * * *
   7-65                                                         Austin,
   7-66  Texas
   7-67                                                         April 23, 1993
   7-68  Hon. Bob Bullock
   7-69  President of the Senate
   7-70  Sir:
    8-1  We, your Committee on Economic Development to which was referred
    8-2  S.B. No. 224, have had the same under consideration, and I am
    8-3  instructed to report it back to the Senate with the recommendation
    8-4  that it do not pass, but that the Committee Substitute adopted in
    8-5  lieu thereof do pass and be printed.
    8-6                                                         Parker,
    8-7  Chairman
    8-8                               * * * * *
    8-9                               WITNESSES
   8-10                                                  FOR   AGAINST  ON
   8-11  ___________________________________________________________________
   8-12                                                  FOR   AGAINST  ON
   8-13  ___________________________________________________________________
   8-14  Name:  Daphne Oppenheimer                                x
   8-15  Representing:  Oppenheimer Environmental Co.
   8-16  City:  Austin
   8-17  -------------------------------------------------------------------
   8-18  Name:  Darrell W. Pierce                                       x
   8-19  Representing:  General Service Commission
   8-20  City:  Austin
   8-21  -------------------------------------------------------------------
   8-22  Name:  John Pouland                                            x
   8-23  Representing:  GSC
   8-24  City:  Austin
   8-25  -------------------------------------------------------------------
   8-26  Name:  Ernesto Chavarria                         x
   8-27  Representing:  TAMACC
   8-28  City:  Austin
   8-29  -------------------------------------------------------------------
   8-30  Name:  Joe H. Morin                              x
   8-31  Representing:  TAMACC
   8-32  City:  Austin
   8-33  -------------------------------------------------------------------
   8-34  Name:  Berto Guerra, Jr.                         x
   8-35  Representing:  TAMACC
   8-36  City:  Austin
   8-37  -------------------------------------------------------------------
   8-38  Name:  Wardaleen F. Belvin                                     x
   8-39  Representing:  Lt. Governor's Office
   8-40  City:  Austin
   8-41  -------------------------------------------------------------------
   8-42  Name:  David R. Pinkus                           x
   8-43  Representing:  Small Business United of Tex.
   8-44  City:  Austin
   8-45  -------------------------------------------------------------------
   8-46  Name:  Maricela Rodriguez Barr                   x
   8-47  Representing:  The Barr Company
   8-48  City:  Austin
   8-49  -------------------------------------------------------------------
   8-50  Name:  Frances Cornejo                           x
   8-51  Representing:  J.P. Printing
   8-52  City:  Austin
   8-53  -------------------------------------------------------------------
   8-54  Name:  Carol S. Hadnot                           x
   8-55  Representing:  Austin Black Contractors Ass.
   8-56  City:  Austin
   8-57  -------------------------------------------------------------------
   8-58  Name:  Devoyd Jennings                           x
   8-59  Representing:  Tx. State Black Chambers
   8-60  City:  Ft. Worth
   8-61  -------------------------------------------------------------------
   8-62  Name:  Richard Barth                             x
   8-63  Representing:  AGC of Texas
   8-64  City:  Austin
   8-65  -------------------------------------------------------------------
   8-66  Name:  Martin Burrell                            x
   8-67  Representing:  DART
   8-68  City:  Dallas
   8-69  -------------------------------------------------------------------
   8-70  Name:  Karen Box                                 x
    9-1  Representing:  Cap. City Chambers of Comm.
    9-2  City:  Austin
    9-3  -------------------------------------------------------------------
    9-4  Name:  Michael Von Ohlen                         x
    9-5  Representing:  Prism Development
    9-6  City:  Austin
    9-7  -------------------------------------------------------------------
    9-8  Name:  Franklin D. Thomas                        x
    9-9  Representing:  Engercon Group
   9-10  City:  Dallas
   9-11  -------------------------------------------------------------------
   9-12                                                  FOR   AGAINST  ON
   9-13  ___________________________________________________________________
   9-14  Name:  Lena Guerrero                             x
   9-15  Representing:  Southwest Capitol Markets
   9-16  City:  Austin
   9-17  -------------------------------------------------------------------
   9-18  Name:  Wendle Van Smith                          x
   9-19  Representing:  Self
   9-20  City:  Houston
   9-21  -------------------------------------------------------------------
   9-22  Name:  Carl Davis                                x
   9-23  Representing:  Self
   9-24  City:  Houston
   9-25  -------------------------------------------------------------------
   9-26  Name:  Reginald Gates                            x
   9-27  Representing:  Ft. Worth/Black Chambers
   9-28  City:  Ft. Worth
   9-29  -------------------------------------------------------------------
   9-30  Name:  Dave Tovar                                x
   9-31  Representing:  SA Hispanic Chamber of Comm.
   9-32  City:  San Antonio
   9-33  -------------------------------------------------------------------
   9-34  Name:  John Hernandez                            x
   9-35  Representing:  Austin Hispanic Chamber
   9-36  City:  Austin
   9-37  -------------------------------------------------------------------
   9-38  Name:  Esther Sepeda                             x
   9-39  Representing:  TAMACC
   9-40  City:  Austin
   9-41  -------------------------------------------------------------------
   9-42  Name:  Rudy Colmenero                            x
   9-43  Representing:  TAMACC
   9-44  City:  Austin
   9-45  -------------------------------------------------------------------
   9-46  Name:  Cesar Perez                               x
   9-47  Representing:  TAMACC
   9-48  City:  Rio Grande City
   9-49  -------------------------------------------------------------------
   9-50  Name:  Jose A. Sena                              x
   9-51  Representing:  TAMACC/Dallas Hisp. Chamber
   9-52  City:  Dallas
   9-53  -------------------------------------------------------------------
   9-54  Name:  Charlie Ponzio                            x
   9-55  Representing:  El Paso Hispanic Chamber
   9-56  City:  El Paso
   9-57  -------------------------------------------------------------------
   9-58  Name:  Marco A. Arredondo                        x
   9-59  Representing:  Corpus Hispanic Chamber
   9-60  City:  Corpus Christi
   9-61  -------------------------------------------------------------------
   9-62  Name:  Lydia Marie Trevino                       x
   9-63  Representing:  Seguin
   9-64  City:  Seguin
   9-65  -------------------------------------------------------------------
   9-66  Name:  Henry G. Flores                           x
   9-67  Representing:  Austin Hispanic Chamber
   9-68  City:  Austin
   9-69  -------------------------------------------------------------------
   9-70  Name:  Ronald J. Alonzo                          x
   10-1  Representing:  Fort Worth Hispanic Chamber
   10-2  City:  Fort Worth
   10-3  -------------------------------------------------------------------
   10-4  Name:  Jose F. Molina                            x
   10-5  Representing:  Odessa MANO
   10-6  City:  Odessa
   10-7  -------------------------------------------------------------------
   10-8  Name:  Dan Sotomayor                             x
   10-9  Representing:  TAMACC, El Paso Chamber
  10-10  City:  El Paso
  10-11  -------------------------------------------------------------------
  10-12                                                  FOR   AGAINST  ON
  10-13  ___________________________________________________________________
  10-14  Name:  Larry E. Romero                           x
  10-15  Representing:  El Paso Hispanic Chamber
  10-16  City:  El Paso
  10-17  -------------------------------------------------------------------
  10-18  Name:  Anthony D. Lyons                          x
  10-19  Representing:  Law Office of Anthony D. Lyon
  10-20  City:  Dallas
  10-21  -------------------------------------------------------------------
  10-22  Name:  Jesse Miranda                             x
  10-23  Representing:  Miranda, Inc.
  10-24  City:  Austin
  10-25  -------------------------------------------------------------------
  10-26  Name:  Calvin Stephens                           x             x
  10-27  Representing:  DART Surety Support
  10-28  City:  Dallas
  10-29  -------------------------------------------------------------------
  10-30  Name:  Charles Hardy                             x
  10-31  Representing:  Austin Industries
  10-32  City:  Dallas
  10-33  -------------------------------------------------------------------
  10-34  Name:  Effie Booker                                            x
  10-35  Representing:  Tx Bankers Assoc./First
  10-36                 Interstate Bank
  10-37  City:  Houston
  10-38  -------------------------------------------------------------------
  10-39  Name:  Wanda Johnson                                           x
  10-40  Representing:  Tx Bankers Assoc./First
  10-41                 Interstate Bank
  10-42  City:  Houston
  10-43  -------------------------------------------------------------------
  10-44  Name:  Ben Morgan                                              x
  10-45  Representing:  Tx Bankers Assoc./First
  10-46                 Interstate Bank
  10-47  City:  Austin
  10-48  -------------------------------------------------------------------
  10-49  Name:  Shanna Igo                                x
  10-50  Representing:  TML
  10-51  City:  Austin
  10-52  -------------------------------------------------------------------
  10-53  Name:  Etta J. Mullin                            x
  10-54  Representing:  Self
  10-55  City:  Dallas
  10-56  -------------------------------------------------------------------