1-1  By:  Lucio, West, Rosson                               S.B. No. 225
    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. 225                    By:  Lucio
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to a capital growth and start-up fund for historically
   1-24  underutilized businesses; providing for the issuance of bonds.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  The heading of Subchapter G, Chapter 481,
   1-27  Government Code, is amended to read as follows:
   1-28      SUBCHAPTER G.  <SMALL BUSINESS> ASSISTANCE FOR HISTORICALLY
   1-29             UNDERUTILIZED BUSINESSES AND SMALL BUSINESSES
   1-30        SECTION 2.  Section 481.101, Government Code, is amended by
   1-31  amending Subdivisions (1) and (3) and adding Subdivisions (4), (5),
   1-32  and (6) to read as follows:
   1-33              (1)  "Historically underutilized business"
   1-34  <"Disadvantaged business"> means:
   1-35                    (A)  a corporation formed for the purpose of
   1-36  making a profit in which at least 51 percent of all classes of the
   1-37  shares of stock or other equitable securities is owned by one or
   1-38  more persons who are socially  disadvantaged because of their
   1-39  identification as members of certain groups, including black
   1-40  Americans, Hispanic Americans, women, Asian Pacific Americans, and
   1-41  American Indians, who have suffered the effects of discriminatory
   1-42  practices or similar insidious circumstances over which they have
   1-43  no control.  Those persons must have proportionate interest and
   1-44  demonstrate active participation in the control, operation, and
   1-45  management of the corporation's affairs;
   1-46                    (B)  a sole proprietorship formed for the purpose
   1-47  of making a profit that is 100 percent owned, operated, and
   1-48  controlled by a person described by Paragraph (A) of this
   1-49  subdivision;
   1-50                    (C)  a partnership formed for the purpose of
   1-51  making a profit in which 51 percent of the assets and interest in
   1-52  the partnership is owned by one or more persons described by
   1-53  Paragraph (A) of this subdivision.  Those persons must have
   1-54  proportionate interest and demonstrate active participation in the
   1-55  control, operation, and management of the partnership's affairs; or
   1-56                    (D)  a joint venture in which each entity in the
   1-57  joint venture is a historically underutilized <disadvantaged>
   1-58  business under this subdivision<; or>
   1-59                    <(E)  a supplier contract between a disadvantaged
   1-60  business under this subdivision and a prime contractor under which
   1-61  the disadvantaged business is directly involved in the manufacture
   1-62  or distribution of the supplies or materials or otherwise
   1-63  warehouses and ships the supplies>.
   1-64              (3)  "Small business" means a corporation, partnership,
   1-65  sole proprietorship, or other legal entity that:
   1-66                    (A)  is formed for the purpose of making a
   1-67  profit,<;>
   1-68                    <(B)>  is independently owned and operated,<;>
    2-1  and
    2-2                    <(C)>  has fewer than 100 employees or less than
    2-3  $1 million in annual gross receipts; or
    2-4                    (B)  otherwise qualifies as a small business
    2-5  under the standards of the United States Small Business
    2-6  Administration.
    2-7              (4)  "Capital growth fund" means the Texas historically
    2-8  underutilized business capital growth and start-up fund.
    2-9              (5)  "Private lender" means a bank, savings bank,
   2-10  savings and loan association, trust company, or insurance company,
   2-11  a nonprofit corporation or other entity created by a municipality
   2-12  as authorized by law that has the authority to make loans, or an
   2-13  individual that the office determines is an experienced and
   2-14  sophisticated investor.
   2-15              (6)  "Qualified application" means a completed
   2-16  application, including all documents and information required by
   2-17  the office and submitted by:
   2-18                    (A)  a private lender for a business; or
   2-19                    (B)  a historically underutilized business.
   2-20        SECTION 3.  Subchapter G, Chapter 481, Government Code, is
   2-21  amended by adding Section 481.1011 to read as follows:
   2-22        Sec. 481.1011.  EXCLUSION AS HISTORICALLY UNDERUTILIZED
   2-23  BUSINESS.  A business is not a historically underutilized business
   2-24  if an owner of the business has a personal net worth of more than
   2-25  $750,000, unless the office determines that the person has
   2-26  demonstrated that the person is a socially disadvantaged individual
   2-27  described by Section 481.101(1)(A).  For the purposes of this
   2-28  section, "personal net worth" has the meaning assigned by the
   2-29  regulations of the United States Small Business Administration in
   2-30  13 C.F.R.  Section 124.106.
   2-31        SECTION 4.  Sections 481.103 and 481.107, Government Code,
   2-32  are amended to read as follows:
   2-33        Sec. 481.103.  Duties.  (a)  The office shall:
   2-34              (1)  examine the role of small and historically
   2-35  underutilized <disadvantaged> businesses in the state's economy and
   2-36  the contribution of small and historically underutilized
   2-37  <disadvantaged> businesses in generating economic activity,
   2-38  expanding employment opportunities, promoting exports, stimulating
   2-39  innovation and entrepreneurship, and bringing new and untested
   2-40  products and services to the marketplace;
   2-41              (2)  serve as the principal advocate in the state on
   2-42  behalf of small and historically underutilized <disadvantaged>
   2-43  businesses and provide advice in the consideration of
   2-44  administrative requirements and legislation that affect small and
   2-45  historically underutilized <disadvantaged> businesses;
   2-46              (3)  evaluate the effectiveness of efforts of state
   2-47  agencies and other entities to assist small and historically
   2-48  underutilized <disadvantaged> businesses and make appropriate
   2-49  recommendations to assist the development and strengthening of
   2-50  small and historically underutilized <disadvantaged> business
   2-51  enterprise;
   2-52              (4)  identify specific instances in which regulations
   2-53  inhibit small and historically underutilized <disadvantaged>
   2-54  business development and to the extent possible identify
   2-55  conflicting state policy goals;
   2-56              (5)  determine the availability of financial and other
   2-57  resources to small and historically underutilized <disadvantaged>
   2-58  businesses and recommend methods for:
   2-59                    (A)  increasing the availability of equity
   2-60  capital and other forms of financial assistance to small and
   2-61  historically underutilized <disadvantaged> businesses;
   2-62                    (B)  generating markets for the goods and
   2-63  services of small and historically underutilized <disadvantaged>
   2-64  businesses;
   2-65                    (C)  providing more effective education,
   2-66  training, and management and technical assistance to small and
   2-67  historically underutilized <disadvantaged> businesses; and
   2-68                    (D)  providing assistance to small and
   2-69  historically underutilized <disadvantaged> businesses in complying
   2-70  with federal, state, and local laws;
    3-1              (6)  describe the reasons for small and historically
    3-2  underutilized <disadvantaged> business successes and failures,
    3-3  ascertain the related factors that are particularly important in
    3-4  this state, and recommend actions for increasing the success rate
    3-5  of small and historically underutilized <disadvantaged> businesses;
    3-6              (7)  serve as a focal point for receiving complaints
    3-7  and suggestions concerning state government policies and activities
    3-8  that affect small and historically underutilized <disadvantaged>
    3-9  businesses;
   3-10              (8)  assist with the resolution of problems among state
   3-11  agencies and small and historically underutilized <disadvantaged>
   3-12  businesses;
   3-13              (9)  develop and advocate proposals for changes in
   3-14  state policies and activities that adversely affect small and
   3-15  historically underutilized <disadvantaged> businesses;
   3-16              (10)  provide to legislative committees and state
   3-17  agencies information on the effects of proposed policies or actions
   3-18  that affect small and historically underutilized <disadvantaged>
   3-19  businesses;
   3-20              (11)  enlist the assistance of public and private
   3-21  agencies, businesses, and other organizations in disseminating
   3-22  information about state programs and services that benefit small
   3-23  and historically underutilized <disadvantaged> businesses and
   3-24  information regarding means by which small and historically
   3-25  underutilized <disadvantaged> businesses can use those programs and
   3-26  services;
   3-27              (12)  provide information and assistance relating to
   3-28  establishing, operating, or expanding small and historically
   3-29  underutilized <disadvantaged> businesses;
   3-30              (13)  establish and operate a statewide toll-free
   3-31  telephone service providing small and historically underutilized
   3-32  <disadvantaged> businesses with ready access to the services
   3-33  offered by the office;
   3-34              (14)  identify sources of financial assistance for
   3-35  small and historically underutilized <disadvantaged> businesses,
   3-36  match small and historically underutilized <disadvantaged>
   3-37  businesses with sources of financial assistance, and assist small
   3-38  and historically underutilized <disadvantaged> businesses with the
   3-39  preparation of applications for loans from governmental or private
   3-40  sources;
   3-41              (15)  sponsor meetings, to the extent practicable in
   3-42  cooperation with public and private educational institutions, to
   3-43  provide training and disseminate information beneficial to small
   3-44  and historically underutilized <disadvantaged> businesses;
   3-45              (16)  assist small and historically underutilized
   3-46  <disadvantaged> businesses in their dealings with federal, state,
   3-47  and local governmental agencies and provide information regarding
   3-48  governmental requirements affecting small and historically
   3-49  underutilized <disadvantaged> businesses;
   3-50              (17)  perform research, studies, and analyses of
   3-51  matters affecting the interests of small and historically
   3-52  underutilized <disadvantaged> businesses;
   3-53              (18)  develop and implement programs to encourage
   3-54  governmental agencies, public sector business associations, and
   3-55  other organizations to provide useful services to small and
   3-56  historically underutilized <disadvantaged> businesses;
   3-57              (19)  use available resources within the state, such as
   3-58  small business development centers, educational institutions, and
   3-59  nonprofit associations, to coordinate the provision of management
   3-60  and technical assistance to small and historically underutilized
   3-61  <disadvantaged> businesses in a systematic manner;
   3-62              (20)  publish newsletters, brochures, and other
   3-63  documents containing information useful to small and historically
   3-64  underutilized <disadvantaged> businesses;
   3-65              (21)  identify successful small and historically
   3-66  underutilized <disadvantaged> business assistance programs provided
   3-67  by other states and determine the feasibility of adapting those
   3-68  programs for implementation in this state;
   3-69              (22)  establish an outreach program to make the
   3-70  existence of the office known to small and historically
    4-1  underutilized <disadvantaged> businesses and potential clients
    4-2  throughout the state;
    4-3              (23)  adopt rules necessary to carry out this
    4-4  subchapter;
    4-5              (24)  identify potential business opportunities for
    4-6  small and historically underutilized <disadvantaged> businesses in
    4-7  the border region and develop programs to maximize those
    4-8  opportunities;
    4-9              (25)  identify potential business opportunities for
   4-10  small and historically underutilized <disadvantaged> businesses in
   4-11  rural areas of this state and develop programs to maximize those
   4-12  opportunities; and
   4-13              (26)  perform any other functions necessary to carry
   4-14  out the purposes of this subchapter.
   4-15        (b)  The department may provide community-based services to
   4-16  carry out its duties under this chapter, including the creation of
   4-17  a pilot program to evaluate the merits of locating full-time
   4-18  personnel outside the Austin headquarters.  This pilot program will
   4-19  give first preference to serving economically distressed areas,
   4-20  rural areas, or historically underutilized <disadvantaged>
   4-21  businesses or assisting development of specific industries.  The
   4-22  department may require areas served by these personnel to provide
   4-23  in-kind or cash contributions as necessary to support these
   4-24  personnel.   A report will be submitted to the legislature
   4-25  describing the effectiveness of this method for delivering services
   4-26  from the department to address specific economic needs.
   4-27        Sec. 481.107.  CONTRACTS AWARDED TO SMALL OR HISTORICALLY
   4-28  UNDERUTILIZED <DISADVANTAGED> BUSINESSES.  Each state agency shall
   4-29  keep statistical data and other records on the number of contracts
   4-30  awarded by the agency to small or historically underutilized
   4-31  <disadvantaged> businesses.
   4-32        SECTION 5.  Subchapter G, Chapter 481, Government Code, is
   4-33  amended by adding Sections 481.109 through 481.117 to read as
   4-34  follows:
   4-35        Sec. 481.109.  Texas Historically Underutilized Business
   4-36  Capital Growth And Start-Up Fund.  (a)  The Texas historically
   4-37  underutilized business capital growth and start-up fund is a
   4-38  revolving fund in the state treasury.  The capital growth fund
   4-39  consists of money appropriated to the office, proceeds of general
   4-40  obligation bonds issued to provide loan guarantees under this
   4-41  subchapter, application fees, guarantee fees, and other amounts
   4-42  received by the state from loans or loan guarantees made under this
   4-43  subchapter and money acquired from federal grants or other sources
   4-44  and required by resolution of the policy board to be deposited in
   4-45  the capital growth fund.  The capital growth fund contains a
   4-46  program account, an interest and sinking account, and other
   4-47  accounts that the policy board authorizes to be created and
   4-48  maintained.  Money in the capital growth fund is available for use
   4-49  by the office for the loan and loan guarantee program provided by
   4-50  this subchapter.
   4-51        (b)  Money in the program account, minus the costs of
   4-52  issuance of general obligation bonds to provide loans and loan
   4-53  guarantees  under this subchapter and necessary costs of
   4-54  administering the capital growth fund, may be used only to provide
   4-55  loans and loan guarantees to aid in the start-up costs of
   4-56  historically underutilized businesses.  The office may provide a
   4-57  loan or loan guarantee from the capital growth fund to assist a
   4-58  historically underutilized business to construct new facilities,
   4-59  renovate existing facilities, acquire any interest in real or
   4-60  personal property, and provide initial working capital to pay the
   4-61  cost of salaries, rents, supplies, inventories, mortgage payments,
   4-62  legal services, and utilities and telephone, travel, and other
   4-63  incidental costs normally classified as working capital according
   4-64  to standard accounting principles.  The office shall provide loans
   4-65  and loan guarantees from the capital growth fund on the terms and
   4-66  conditions that the office determines to be reasonable,
   4-67  appropriate, and consistent with the purposes and objectives of the
   4-68  capital growth fund and this subchapter.  The office may provide a
   4-69  loan or loan guarantee only if financing for the historically
   4-70  underutilized business may not be otherwise obtained.
    5-1        Sec. 481.110.  LOANS AND LOAN GUARANTEES.  (a)  The office
    5-2  may not guarantee more than 90 percent of a loan or provide a loan
    5-3  in an amount in excess of 95 percent of the cost of the undertaking
    5-4  to be financed.
    5-5        (b)  For each loan or loan guarantee the office shall
    5-6  determine:
    5-7              (1)  the fees charged by the office, including loan
    5-8  fees, guarantee fees, application fees, annual fees, and any other
    5-9  costs associated with the loan or loan guarantee necessary for the
   5-10  administration of the capital growth fund;
   5-11              (2)  the permissible interest rates and amortization
   5-12  requirements for a loan made or guaranteed, as agreed on by the
   5-13  private lender, if any, the business, and the office;
   5-14              (3)  the acceptable security for the loan or the
   5-15  office's participation in the business;
   5-16              (4)  the financial responsibility of the business to
   5-17  repay the loan; and
   5-18              (5)  any other terms or conditions relating to a loan
   5-19  or loan guarantee.
   5-20        (c)  The minimum amount of a loan that may be made or
   5-21  guaranteed by the office is $10,000.
   5-22        (d)  The maximum amount of a loan that may be made or
   5-23  guaranteed by the office is $500,000.
   5-24        Sec. 481.111.  APPLICATION AND APPROVAL.  (a)  The office may
   5-25  not make a loan or loan guarantee except on submission of a
   5-26  qualified application by a historically underutilized business or
   5-27  private lender.
   5-28        (b)  A qualified application may not be approved unless the
   5-29  business holds funds or property in an amount or value equal to not
   5-30  less than 10 percent of the start-up cost of the business, the
   5-31  funds or property are pledged to the business, and the business has
   5-32  obtained from other financial sources a firm commitment for funds
   5-33  in excess of the loan made or guaranteed by the office.
   5-34        (c)  On approval of the qualified application, the office may
   5-35  provide a loan or loan guarantee to a business for purposes
   5-36  authorized by Section 481.112.
   5-37        (d)  This subchapter does not prohibit the use of money in
   5-38  the capital growth fund in conjunction with any other money
   5-39  available for the purposes of the loans or loan guarantees provided
   5-40  by this subchapter.
   5-41        Sec. 481.112.  USE OF LOAN.  The money received from a loan
   5-42  made or guaranteed under Section 481.110 may be used only for the
   5-43  initial costs of starting a business as described by Section
   5-44  481.109.
   5-45        Sec. 481.113.  DEFAULT ON LOAN.  (a)  If a historically
   5-46  underutilized business defaults on a loan made under Section
   5-47  481.110, or defaults on a loan guaranteed under Section 481.110 and
   5-48  the office is required to honor its guarantee, the office through
   5-49  its representative shall bring suit against the business as soon as
   5-50  practicable.  The suit may be brought in the county in which the
   5-51  principal office of the business is located, in which the private
   5-52  lender, if any, is located, or in Travis County.
   5-53        (b)  The office may take title by foreclosure to any property
   5-54  of the business if an acquisition is necessary to protect a loan or
   5-55  loan guarantee made for the business by the office and may sell any
   5-56  property of the business.  If the office cannot make a sale
   5-57  promptly, it may lease any property of the business to another
   5-58  person to minimize financial losses and sustain employment.
   5-59        (c)  The office shall report to the comptroller the name of a
   5-60  business that is in default on a loan made under Section 481.110 or
   5-61  a loan guaranteed under Section 481.110 on which the office has
   5-62  been required to honor a guarantee.  The comptroller may not issue
   5-63  a warrant to the business while the business is in default.
   5-64        (d)  The instruments evidencing a loan made by the office or
   5-65  a guarantee of a loan made by a private lender must provide that in
   5-66  the event of a default in the payment of the principal of or
   5-67  interest on the obligation or in the performance of a mortgage,
   5-68  instrument, or other agreement relating to the loan or loan
   5-69  guarantee, the payment and performance may be enforced by mandamus
   5-70  or by the appointment of a receiver in equity with power to apply
    6-1  the revenues from the business as provided by the mortgage,
    6-2  instrument, or other agreement.
    6-3        Sec. 481.114.  FALSE INFORMATION ON APPLICATION.  An
    6-4  applicant who knowingly or negligently provides material false
    6-5  information on an application under Section 481.111:
    6-6              (1)  may not submit another application under Section
    6-7  481.111; and
    6-8              (2)  is liable to the state and a private lender for
    6-9  any expense incurred by the state or private lender that would not
   6-10  have been incurred if the applicant had not provided the false
   6-11  information.
   6-12        Sec. 481.115.  ADMINISTRATION OF CAPITAL GROWTH FUND.  The
   6-13  office shall administer the capital growth fund and shall act as
   6-14  liaison among businesses, private lenders, and state agencies whose
   6-15  services are useful to the  office in carrying out the loan and
   6-16  loan guarantee program provided by this subchapter.
   6-17        Sec. 481.116.  ADDITIONAL POWERS AND DUTIES.  The policy
   6-18  board shall adopt rules necessary to carry out the purposes of the
   6-19  capital growth fund.  The policy board shall establish procedures
   6-20  to minimize the number of defaults on loans made or guaranteed from
   6-21  the capital growth fund.  Those procedures may include the purchase
   6-22  of insurance coverage against loss.
   6-23        Sec. 481.117.  CAPITAL GROWTH FUND:  GENERAL OBLIGATION
   6-24  BONDS.  (a)  The policy board may issue up to $50 million of
   6-25  general obligation bonds and may use the proceeds of those bonds to
   6-26  provide loans or loan guarantees under this subchapter.  The policy
   6-27  board shall deposit the proceeds of the general obligation bonds in
   6-28  the capital growth fund and apply them in accordance with the
   6-29  resolutions authorizing the bonds.  The capital growth fund and any
   6-30  accounts established in the fund shall be held in trust by the
   6-31  state treasurer for and on behalf of the office and the owners of
   6-32  the general obligation bonds issued in accordance with this section
   6-33  and may be used only as provided by this section.  Pending use, the
   6-34  treasurer may invest and reinvest money in the capital growth fund
   6-35  in investments authorized by law for state funds that the
   6-36  treasurer, consistent with the policy board's resolutions
   6-37  authorizing the general obligation bonds, considers appropriate.
   6-38  Payment for the provision of a loan or loan guarantee provided
   6-39  under this subchapter shall be deposited, first, in the interest
   6-40  and sinking account as prescribed by the policy board's resolutions
   6-41  authorizing general obligation bonds under this subchapter and,
   6-42  second, in any reserve account established by the policy board
   6-43  until that account is fully funded as prescribed by the policy
   6-44  board's resolutions.  If, during the time any general obligation
   6-45  bonds are payable from the interest and sinking account, the policy
   6-46  board determines that there will not be sufficient money in the
   6-47  interest and sinking account during the following fiscal year to
   6-48  pay the principal of or interest on the general obligation bonds or
   6-49  both the principal and interest that are to come due during the
   6-50  following fiscal year, the comptroller shall transfer to the fund
   6-51  the first money coming into the state treasury not otherwise
   6-52  appropriated by the constitution in an amount sufficient to pay the
   6-53  obligations.
   6-54        (b)  The general obligation bonds may be issued from time to
   6-55  time in one or more series or issues, in bearer, registered, or any
   6-56  other form, which may include registered uncertificated obligations
   6-57  not represented by written instruments and commonly known as
   6-58  book-entry obligations, the registration of ownership and transfer
   6-59  of which shall be provided for by the policy board under a system
   6-60  of books and records maintained by the office or by an agent
   6-61  appointed by the policy board in a resolution providing for
   6-62  issuance of its general obligation bonds.  General obligation bonds
   6-63  may mature serially or otherwise not more than 40 years from their
   6-64  date.  General obligation bonds may bear no interest or may bear
   6-65  interest at any rate or rates, fixed, variable, floating, or
   6-66  otherwise, determined by the policy board or determined pursuant to
   6-67  any contractual arrangements approved by the policy board, not to
   6-68  exceed the maximum net effective interest rate allowed by Chapter
   6-69  3, Acts of the 61st Legislature, Regular Session, 1969 (Article
   6-70  717k-2, Vernon's Texas Civil Statutes).  Interest on the general
    7-1  obligation bonds may be payable at any time, and the rate of
    7-2  interest on the general obligation bonds may be adjusted at any
    7-3  time determined by the policy board pursuant to the resolutions
    7-4  authorizing the bonds or determined pursuant to any contractual
    7-5  arrangement approved by the policy board.  In connection with the
    7-6  issuance of its general obligation bonds, the policy board may
    7-7  exercise the powers granted to the governing body of an issuer in
    7-8  connection with the issuance of obligations under Chapter 656, Acts
    7-9  of the 68th Legislature, Regular Session, 1983 (Article 717q,
   7-10  Vernon's Texas Civil Statutes), to the extent not inconsistent with
   7-11  this section.  The general obligation bonds may be issued in the
   7-12  form and denominations and executed in the manner and under the
   7-13  terms, conditions, and details determined by the policy board in
   7-14  the resolution authorizing their issuance.  If any officer whose
   7-15  manual or facsimile signature appears on the general obligation
   7-16  bonds ceases to be an officer, the signature remains valid and
   7-17  sufficient for all purposes as if the officer had remained in
   7-18  office.
   7-19        (c)  All general obligation bonds issued by the policy board
   7-20  under this section are subject to review and approval by the
   7-21  attorney general in the same manner and with the same effect as is
   7-22  provided by Chapter 656, Acts of the 68th Legislature, Regular
   7-23  Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
   7-24        (d)  The general obligation bonds are a legal and authorized
   7-25  investment for a bank, trust company, savings and loan association,
   7-26  insurance company, fiduciary, trustee, or guardian or a sinking
   7-27  fund of a municipality, county, school district, or political
   7-28  subdivision of the state.  The general obligation bonds may secure
   7-29  deposits of public funds of the state or a municipality, county,
   7-30  school district, or another political corporation or subdivision of
   7-31  the state.  The policy board may issue bonds to refund all or part
   7-32  of its outstanding general obligation bonds, including accrued but
   7-33  unpaid interest.  The general obligation bonds, a transaction
   7-34  relating to those bonds, or a profit made in the sale of those
   7-35  bonds is exempt from taxation by the state, an agency or
   7-36  subdivision of the state, a municipality, or a special district.
   7-37        SECTION 6.  The policy board of the Texas Department of
   7-38  Commerce may not issue more than $25 million of bonds under Section
   7-39  481.117, Government Code, as added by this Act, during the state
   7-40  fiscal biennium beginning September 1, 1993.
   7-41        SECTION 7.  This Act takes effect on the date on which the
   7-42  constitutional amendment proposed by S.J.R. 9, 73rd Legislature,
   7-43  Regular Session, 1993, takes effect.  If that proposed
   7-44  constitutional amendment is not approved by the voters, this Act
   7-45  has no effect.
   7-46        SECTION 8.  The importance of this legislation and the
   7-47  crowded condition of the calendars in both houses create an
   7-48  emergency and an imperative public necessity that the
   7-49  constitutional rule requiring bills to be read on three several
   7-50  days in each house be suspended, and this rule is hereby suspended.
   7-51                               * * * * *
   7-52                                                         Austin,
   7-53  Texas
   7-54                                                         April 23, 1993
   7-55  Hon. Bob Bullock
   7-56  President of the Senate
   7-57  Sir:
   7-58  We, your Committee on Economic Development to which was referred
   7-59  S.B. No. 225, have had the same under consideration, and I am
   7-60  instructed to report it back to the Senate with the recommendation
   7-61  that it do not pass, but that the Committee Substitute adopted in
   7-62  lieu thereof do pass and be printed.
   7-63                                                         Parker,
   7-64  Chairman
   7-65                               * * * * *
   7-66                               WITNESSES
   7-67                                                  FOR   AGAINST  ON
   7-68  ___________________________________________________________________
   7-69  Name:  Lena Guerrero                             x
   7-70  Representing:  Southwest Capitol Markets
    8-1  City:  Austin
    8-2  -------------------------------------------------------------------
    8-3  Name:  Wendle Van Smith                          x
    8-4  Representing:  Self
    8-5  City:  Houston
    8-6  -------------------------------------------------------------------
    8-7                                                  FOR   AGAINST  ON
    8-8  ___________________________________________________________________
    8-9  Name:  Carl Davis                                x
   8-10  Representing:  Self
   8-11  City:  Houston
   8-12  -------------------------------------------------------------------
   8-13  Name:  Reginald Gates                            x
   8-14  Representing:  Ft. Worth/Black Chambers
   8-15  City:  Ft. Worth
   8-16  -------------------------------------------------------------------
   8-17  Name:  Dave Tovar                                x
   8-18  Representing:  SA Hispanic Chamber of Comm.
   8-19  City:  San Antonio
   8-20  -------------------------------------------------------------------
   8-21  Name:  John Hernandez                            x
   8-22  Representing:  Austin Hispanic Chamber
   8-23  City:  Austin
   8-24  -------------------------------------------------------------------
   8-25  Name:  Esther Sepeda                             x
   8-26  Representing:  TAMACC
   8-27  City:  Austin
   8-28  -------------------------------------------------------------------
   8-29  Name:  Rudy Colmenero                            x
   8-30  Representing:  TAMACC
   8-31  City:  Austin
   8-32  -------------------------------------------------------------------
   8-33  Name:  Cesar Perez                               x
   8-34  Representing:  TAMACC
   8-35  City:  Rio Grande City
   8-36  -------------------------------------------------------------------
   8-37  Name:  Jose A. Sena                              x
   8-38  Representing:  TAMACC/Dallas Hisp. Chamber
   8-39  City:  Dallas
   8-40  -------------------------------------------------------------------
   8-41  Name:  Charlie Ponzio                            x
   8-42  Representing:  El Paso Hispanic Chamber
   8-43  City:  El Paso
   8-44  -------------------------------------------------------------------
   8-45  Name:  Maricela Rodriguez Barr                   x
   8-46  Representing:  The Barr Company
   8-47  City:  Austin
   8-48  -------------------------------------------------------------------
   8-49  Name:  Ernesto Chavarria                         x
   8-50  Representing:  TAMACC
   8-51  City:  Austin
   8-52  -------------------------------------------------------------------
   8-53  Name:  Frances Cornejo                           x
   8-54  Representing:  J. P. Printing
   8-55  City:  Austin
   8-56  -------------------------------------------------------------------
   8-57  Name:  Carol S. Hadnot                           x
   8-58  Representing:  Austin Black Contractors Ass.
   8-59  City:  Austin
   8-60  -------------------------------------------------------------------
   8-61  Name:  Devoyd Jennings                           x
   8-62  Representing:  Tx. State Black Chambers
   8-63  City:  Ft. Worth
   8-64  -------------------------------------------------------------------
   8-65  Name:  Richard Barth                             x
   8-66  Representing:  AGC of Texas
   8-67  City:  Austin
   8-68  -------------------------------------------------------------------
   8-69  Name:  Martin Burrell                            x
   8-70  Representing:  DART
    9-1  City:  Dallas
    9-2  -------------------------------------------------------------------
    9-3  Name:  Karen Box                                 x
    9-4  Representing:  Cap. City Chambers of Comm.
    9-5  City:  Austin
    9-6  -------------------------------------------------------------------
    9-7                                                  FOR   AGAINST  ON
    9-8  ___________________________________________________________________
    9-9  Name:  Michael Von Ohlen                         x
   9-10  Representing:  Prism Development
   9-11  City:  Austin
   9-12  -------------------------------------------------------------------
   9-13  Name:  Franklin D. Thomas                        x
   9-14  Representing:  Engercon Group
   9-15  City:  Dallas
   9-16  -------------------------------------------------------------------
   9-17  Name:  David R. Pinkus                           x
   9-18  Representing:  Small Business United of TX
   9-19  City:  Austin
   9-20  -------------------------------------------------------------------
   9-21  Name:  Joe Morin                                 x
   9-22  Representing:  TAMACC
   9-23  City:  Austin
   9-24  -------------------------------------------------------------------
   9-25  Name:  Marco A. Arredono                         x
   9-26  Representing:  Corpus Hispanic Chamber
   9-27  City:  Corpus Christi
   9-28  -------------------------------------------------------------------
   9-29  Name:  Berto Guerra                              x
   9-30  Representing:  TAMACC
   9-31  City:  Austin
   9-32  -------------------------------------------------------------------
   9-33  Name:  Lydia Marie Trevino                       x
   9-34  Representing:  SEGUIN
   9-35  City:  Seguin
   9-36  -------------------------------------------------------------------
   9-37  Name:  Henry G. Flores                           x
   9-38  Representing:  Austin Hispanic Chamber
   9-39  City:  Austin
   9-40  -------------------------------------------------------------------
   9-41  Name:  Ronald J. Alonzo                          x
   9-42  Representing:  Fort Worth Hispanic Chamber
   9-43  City:  Fort Worth
   9-44  -------------------------------------------------------------------
   9-45  Name:  Jose F. Molina                            x
   9-46  Representing:  Odessa MANO
   9-47  City:  Odessa
   9-48  -------------------------------------------------------------------
   9-49  Name:  Dan Sotomayor                             x
   9-50  Representing:  TAMACC, El Paso Chamber
   9-51  City:  El Paso
   9-52  -------------------------------------------------------------------
   9-53  Name:  Larry E. Romero                           x
   9-54  Representing:  El Paso Hispanic Chamber
   9-55  City:  El Paso
   9-56  -------------------------------------------------------------------
   9-57  Name:  Anthony D. Lyons                          x
   9-58  Representing:  Law office of Anthony D. Lyon
   9-59  City:  Dallas
   9-60  -------------------------------------------------------------------
   9-61  Name:  Jesse Miranda                             x
   9-62  Representing:  Miranda, Inc.
   9-63  City:  Austin
   9-64  -------------------------------------------------------------------
   9-65  Name:  Dan McNeil                                              x
   9-66  Representing:  Texas Dept. of Commerce
   9-67  City:  Austin
   9-68  -------------------------------------------------------------------
   9-69  Name:  Etta J. Mullin                            x
   9-70  Representing:  Self
   10-1  City:  Dallas
   10-2  -------------------------------------------------------------------
   10-3  Name:  Wardaleen F. Belvin                                     x
   10-4  Representing:  Lt. Governor's Office
   10-5  City:  Austin
   10-6  -------------------------------------------------------------------
   10-7                                                  FOR   AGAINST  ON
   10-8  ___________________________________________________________________
   10-9  Name:  John Pouland                                            x
  10-10  Representing:  GSC
  10-11  City:  Austin
  10-12  -------------------------------------------------------------------