By:  Carriker                                          S.B. No. 405
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the continuation of the Texas Department of Commerce.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 481.003, Government Code, is amended to
    1-4  read as follows:
    1-5        Sec. 481.003.  Sunset Provision.  The Texas Department of
    1-6  Commerce is subject to Chapter 325 (Texas Sunset Act).  Unless
    1-7  continued in existence as provided by that chapter, the department
    1-8  is abolished and this chapter expires September 1, 2001 <1993>.
    1-9        SECTION 2.  Subsection (a), Section 481.0041, Government
   1-10  Code, is amended to read as follows:
   1-11        (a)  It is a ground for removal from the policy board if a
   1-12  member:
   1-13              (1)  does not have at the time of appointment the
   1-14  qualifications required by Section 481.004;
   1-15              (2)  does not maintain during service on the policy
   1-16  board the qualifications required by Section 481.004;
   1-17              (3)  violates a prohibition established by Section
   1-18  481.0042;
   1-19              (4) <(2)>  cannot discharge the member's duties for a
   1-20  substantial part of the term for which the member is appointed
   1-21  because of illness or disability; or
   1-22              (5) <(3)>  is absent from more than half of the
   1-23  regularly scheduled policy board meetings that the member is
   1-24  eligible to attend during a calendar year unless the absence is
    2-1  excused by majority vote of the policy board.
    2-2        SECTION 3.  Section 481.0042, Government Code, is amended to
    2-3  read as follows:
    2-4        Sec. 481.0042.  CONFLICT OF INTEREST.  (a)  A person may not
    2-5  serve as a public member of the policy board or be the executive
    2-6  director or an employee of the department if the person:
    2-7              (1)  is employed by, participates in the management of,
    2-8  or is a paid consultant of a business entity that contracts with
    2-9  the department;
   2-10              (2)  owns or controls, directly or indirectly, more
   2-11  than a 10 percent interest in a business entity or other
   2-12  organization that contracts with the department;
   2-13              (3)  uses or receives a substantial amount of tangible
   2-14  goods, services, or funds from the department, other than
   2-15  compensation or reimbursement authorized by law for employee
   2-16  salaries and benefits or for policy board membership, attendance,
   2-17  and expenses; or
   2-18              (4)  is an officer, employee, or paid consultant of a
   2-19  trade association of businesses that contracts with the department.
   2-20        (b)  A person may not serve as a public member of the policy
   2-21  board or be the executive director or an employee of the department
   2-22  if the person's spouse:
   2-23              (1)  participates in the management of or is a paid
   2-24  consultant of a business entity that contracts with the department;
   2-25              (2)  owns or controls, directly or indirectly, more
   2-26  than a 10 percent interest in a business entity or other
   2-27  organization that contracts with the department;
    3-1              (3)  uses or receives a substantial amount of tangible
    3-2  goods, services, or funds from the department; or
    3-3              (4)  is an officer, manager, or paid consultant of a
    3-4  trade association of businesses that contracts with the department.
    3-5        (c)  <A member of the policy board or the executive director
    3-6  or an employee of the department may not:>
    3-7              <(1)  be an officer, employee, or paid consultant of a
    3-8  business entity that contracts with the department;>
    3-9              <(2)  directly own, control, or have any interest in a
   3-10  business entity that contracts with the department; or>
   3-11              <(3)  accept or solicit any gift, favor, or service
   3-12  that would reasonably tend to influence the person in the discharge
   3-13  of official duties or that the person knows or should know is being
   3-14  offered with the intent to influence official conduct.>
   3-15        <(b)  An officer, employee, or paid consultant of a business
   3-16  entity or a trade association of business entities that contracts
   3-17  with the department may not be a member of the policy board or the
   3-18  executive director or employee of the department.>
   3-19        <(c)  A person who is the spouse of an officer, manager, or
   3-20  paid consultant of a business entity or a trade association of
   3-21  business entities that contracts with the department may not be a
   3-22  member of the policy board or the executive director or an employee
   3-23  of the department.>
   3-24        <(d)>  For the purposes of this section, a trade association
   3-25  is a nonprofit, cooperative, and voluntarily joined association of
   3-26  business or professional competitors designed to assist its members
   3-27  and its industry or profession in dealing with mutual business or
    4-1  professional problems and in promoting their common interest.
    4-2        (d)  For the purposes of this section, a business entity is a
    4-3  sole proprietorship, partnership, firm, corporation, holding
    4-4  company, joint stock company, receivership, trust, or any other
    4-5  entity recognized in law through which business for profit is
    4-6  conducted.
    4-7        (e)  A person may not be a member of the policy board or the
    4-8  executive director or an employee of the department if the person
    4-9  is required to register as a lobbyist under Chapter 305, Government
   4-10  Code, because of the person's activities for compensation on behalf
   4-11  of a business entity that has an interest in a contract with the
   4-12  department or a profession related to the operation of the
   4-13  department.
   4-14        SECTION 4.  Subsection (a), Section 481.0044, Government
   4-15  Code, is amended to read as follows:
   4-16        (a)  The policy board shall <may> adopt rules necessary for
   4-17  the administration of department programs and may adopt rules for
   4-18  its internal management and control.
   4-19        SECTION 5.  Subsection (d), Section 481.005, Government Code,
   4-20  is amended to read as follows:
   4-21        (d)  The members of the policy board shall establish policy,
   4-22  adopt rules <that the policy board may adopt under law>, evaluate
   4-23  the implementation of new legislation that affects the department's
   4-24  duties, review and comment on the department's budget, prepare an
   4-25  annual report of the department's activities, conduct
   4-26  investigations and studies, and develop long-range plans for the
   4-27  future goals and needs of the department.  The members of the
    5-1  policy board may not be involved in the daily operation of the
    5-2  department.  Except for duties related to the approval and issuance
    5-3  of bonds by the department, the policy board may delegate to the
    5-4  executive director the duties of the policy board under this
    5-5  chapter and other law that are not covered by the description of
    5-6  the members' duties under this subsection.
    5-7        SECTION 6.  Subsections (a), (f), and (g), Section 481.010,
    5-8  Government Code, are amended to read as follows:
    5-9        (a)  The executive director shall employ personnel necessary
   5-10  for the performance of department functions.  In addition to other
   5-11  personnel, the executive director shall employ a human rights
   5-12  officer and an internal auditor.  The internal auditor shall report
   5-13  directly to the policy board and may consult with the executive
   5-14  director or the executive director's designee <the governor>.
   5-15        (f)  The executive director or the executive director's
   5-16  designee shall prepare and maintain a written policy statement to
   5-17  assure implementation of a program of equal employment opportunity
   5-18  under which all personnel transactions are made without regard to
   5-19  race, color, disability <handicap>, sex, religion, age, or national
   5-20  origin.  The policy statement must include:
   5-21              (1)  personnel policies, including policies relating to
   5-22  recruitment, evaluation, selection, appointment, training, and
   5-23  promotion of personnel that are in compliance with requirements of
   5-24  the Commission on Human Rights;
   5-25              (2)  a comprehensive analysis of the department work
   5-26  force that meets federal and state guidelines;
   5-27              (3)  procedures by which a determination can be made of
    6-1  significant underuse <underutilization> in the department work
    6-2  force of all persons for whom federal or state guidelines encourage
    6-3  a more equitable balance; and
    6-4              (4)  reasonable methods to appropriately address those
    6-5  areas of significant underuse <underutilization>.
    6-6        (g)  A policy statement prepared under Subsection (f) must
    6-7  cover an annual period, be updated <at least> annually and reviewed
    6-8  by the Commission on Human Rights for compliance with Subsection
    6-9  (f)(1), and be filed with the governor's office.
   6-10        SECTION 7.  Section 481.011, Government Code, is amended to
   6-11  read as follows:
   6-12        Sec. 481.011.  FISCAL REPORT.  The executive director
   6-13  <department> shall file annually with the governor and the
   6-14  presiding officer of each house of the legislature a complete and
   6-15  detailed written report accounting for all funds received and
   6-16  disbursed by the department during the preceding fiscal year.  The
   6-17  annual report must be in the form and reported in the time provided
   6-18  by the General Appropriations Act.
   6-19        SECTION 8.  Section 481.012, Government Code, is amended by
   6-20  amending Subsection (c) and adding Subsection (d) to read as
   6-21  follows:
   6-22        (c)  The policy board <department> shall prepare and maintain
   6-23  a written plan that describes how a person who does not speak
   6-24  English <or who has a physical, mental, or developmental
   6-25  disability> can be provided reasonable access to the department's
   6-26  programs.  The policy board shall also comply with federal and
   6-27  state laws for program and facility accessibility.
    7-1        (d)  The policy board by rule shall establish methods by
    7-2  which consumers and service recipients are notified of the name,
    7-3  mailing address, and telephone number of the department for the
    7-4  purpose of directing complaints to the department.
    7-5        SECTION 9.  Section 481.021, Government Code, is amended to
    7-6  read as follows:
    7-7        Sec. 481.021.  GENERAL POWERS OF DEPARTMENT.  (a)  The
    7-8  department may:
    7-9              (1)  adopt and enforce rules necessary to carry out
   7-10  this chapter;
   7-11              (2)  adopt and use an official seal;
   7-12              (3)  accept gifts, grants, or loans from and contract
   7-13  with any entity;
   7-14              (4)  sue and be sued;
   7-15              (5)  acquire and convey property or an interest in
   7-16  property;
   7-17              (6)  procure insurance and pay premiums on insurance of
   7-18  any type, in accounts, and from insurers as the department
   7-19  considers necessary and advisable to accomplish any of the
   7-20  department's purposes; <and>
   7-21              (7)  hold patents, copyrights, trademarks, or other
   7-22  evidence of protection or exclusivity issued under the laws of the
   7-23  United States, any state, or any nation and may enter into license
   7-24  agreements with any third parties for the receipt of fees,
   7-25  royalties, or other monetary or nonmonetary value;
   7-26              (8)  sell advertisements in any medium; and
   7-27              (9)  exercise any other power necessary to carry out
    8-1  this chapter.
    8-2        (b)  Except as otherwise provided by this chapter, money paid
    8-3  to the department under this chapter shall be deposited in the
    8-4  state treasury.
    8-5        (c)  The department shall deposit contributions from private
    8-6  sources in a separate fund kept and held in escrow and in trust by
    8-7  the state treasurer for and on behalf of the department as funds
    8-8  held outside the treasury under Section 404.073, and the money
    8-9  contributed shall be used to carry out the purposes of the
   8-10  department and, to the extent possible, the purposes specified by
   8-11  the donors.  The state treasurer may invest and reinvest the money,
   8-12  pending its use, in the fund in investments authorized by law for
   8-13  state funds that the state treasurer considers appropriate.
   8-14        SECTION 10.  Section 481.022, Government Code, is amended by
   8-15  adding Subsection (c) to read as follows:
   8-16        (c)  The department is subject to the requirements of Article
   8-17  13, State Purchasing and General Services Act (Article 601b,
   8-18  Vernon's Texas Civil Statutes).
   8-19        SECTION 11.  Subsection (c), Section 481.027, Government
   8-20  Code, is amended to read as follows:
   8-21        (c)  The department shall maintain regional offices in
   8-22  locations specified in the General Appropriations Act <maintain at
   8-23  least one regional office in Europe, at least one regional office
   8-24  in the Pacific Rim area, and at least one regional office in
   8-25  Mexico.  Each regional office may have one or more satellite
   8-26  offices>.
   8-27        SECTION 12.  Subchapter B, Chapter 481, Government Code, is
    9-1  amended by adding Section 481.028 to read as follows:
    9-2        Sec. 481.028.  MEMORANDUM OF UNDERSTANDING WITH OTHER STATE
    9-3  AGENCIES.  (a)  The department shall initiate negotiations for and
    9-4  enter into a memorandum of understanding with any other state
    9-5  agency involved in economic development to cooperate in program
    9-6  planning and budgeting.
    9-7        (b)  The department shall enter into an agreement as required
    9-8  by Subsection (a) with the:
    9-9              (1)  Department of Agriculture regarding each agency's
   9-10  international marketing efforts and business finance programs;
   9-11              (2)  Texas Employment Commission, Texas Higher
   9-12  Education Coordinating Board, and Central Education Agency
   9-13  regarding each agency's work force development efforts and literacy
   9-14  programs;
   9-15              (3)  General Land Office regarding each agency's
   9-16  promotion of alternative energy resources and rural economic
   9-17  development efforts;
   9-18              (4)  Texas Department of Housing and Community Affairs
   9-19  regarding each agency's community development programs;
   9-20              (5)  Texas Department of Transportation and Parks and
   9-21  Wildlife Department regarding each agency's efforts to promote
   9-22  tourism;
   9-23              (6)  Texas Air Control Board regarding small business
   9-24  finance and permits;
   9-25              (7)  office of the state comptroller regarding economic
   9-26  development and analyses;
   9-27              (8)  Texas Historical Commission regarding community
   10-1  preservation, restoration, and revitalization;
   10-2              (9)  Texas Department of Human Services regarding work
   10-3  force development;
   10-4              (10)  institutions of higher education regarding work
   10-5  force development, literacy, and technology transfer; and
   10-6              (11)  Texas Water Commission regarding the marketing of
   10-7  recyclable products and business permits.
   10-8        (c)  Each agency listed in Subsection (b) may enter into
   10-9  memoranda of understanding in areas other than those listed for the
  10-10  respective agency.
  10-11        (d)  The memorandum of understanding between the department
  10-12  and the other state agency shall be adopted as a rule of each
  10-13  department or agency.
  10-14        SECTION 13.  Subchapter B, Chapter 481, Government Code, is
  10-15  amended by adding Section 481.029 to read as follows:
  10-16        Sec. 481.029.  COST RECOVERY.  The department shall recover
  10-17  the cost of providing direct technical assistance and management
  10-18  training services to businesses and communities when reasonable and
  10-19  practical.
  10-20        SECTION 14.  Section 481.050, Government Code, is amended to
  10-21  read as follows:
  10-22        Sec. 481.050.  CONFLICTS OF INTEREST.  (a)  A member of the
  10-23  policy board, the executive director, or an agent or employee of
  10-24  the department, in the person's own name or in the name of a
  10-25  nominee, may not hold an ownership interest of more than the
  10-26  following amount in an association, trust, corporation,
  10-27  partnership, or other entity that is, in its own name or in the
   11-1  name of a nominee, a party to a contract or agreement under this
   11-2  chapter <subchapter> on which the member of the policy board,
   11-3  executive director, agent, or employee may be called on to act or
   11-4  vote:
   11-5              (1)  7-1/2 percent of the fair market value of the
   11-6  entity; or
   11-7              (2)  $50,000.
   11-8        (b)  With respect to a direct or indirect interest, other
   11-9  than an interest prohibited by Subsection (a), in a contract or
  11-10  agreement under this chapter <subchapter> on which the member of
  11-11  the policy board, executive director, agent, or employee may be
  11-12  called on to act or vote, the member of the policy board, executive
  11-13  director, agent, or employee shall disclose the interest to the
  11-14  secretary of the department before the department takes final
  11-15  action concerning the contract or agreement and shall disclose the
  11-16  nature and extent of the interest and the person's acquisition of
  11-17  it.  The department shall publicly acknowledge this disclosure and
  11-18  enter it in its minutes.  A member of the policy board, executive
  11-19  director, agent, or employee who holds such an interest may not be
  11-20  officially involved in regard to the contract or agreement, may not
  11-21  vote on a matter relating to the contract or agreement, and may not
  11-22  communicate with the executive director or other members, agents,
  11-23  or employees concerning the contract or agreement.  Notwithstanding
  11-24  any other provision of law, a contract or agreement entered into in
  11-25  conformity with this subsection is not invalid because of an
  11-26  interest described by this subsection nor is a person who complies
  11-27  with this subsection guilty of an offense, and the person may not
   12-1  be removed from office or be subjected to other penalty because of
   12-2  the interest.
   12-3        (c)  A contract or agreement made in violation of this
   12-4  section is void and does not create an action against the
   12-5  department.
   12-6        SECTION 15.  Subchapter F, Chapter 481, Government Code, is
   12-7  amended by adding Section 481.0831 to read as follows:
   12-8        Sec. 481.0831.  OFFICE OF RURAL AFFAIRS.  (a)  The department
   12-9  shall maintain an office of rural affairs.
  12-10        (b)  The office shall:
  12-11              (1)  implement the programs established under this
  12-12  subchapter; and
  12-13              (2)  address the special needs of rural communities and
  12-14  businesses and assist those communities and businesses.
  12-15        SECTION 16.  Subsection (a), Section 481.084, Government
  12-16  Code, is amended to read as follows:
  12-17        (a)  The department may <shall use money in the fund to>
  12-18  guarantee not more than 90 percent of a loan made by a private
  12-19  lender or to make loans to fund a project.  For each guarantee the
  12-20  department shall determine:
  12-21              (1)  that the project is located in a rural area;
  12-22              (2)  the amount of equity the user must pledge or apply
  12-23  to the establishment of the project;
  12-24              (3)  the fees charged by the department, including
  12-25  guarantee or loan fees, application fees, annual fees, and any
  12-26  other costs associated with the loan guarantee or loan, as
  12-27  necessary to fund the administration of this subchapter;
   13-1              (4)  the maximum and minimum guarantee or loan amounts,
   13-2  if applicable;
   13-3              (5)  the permissible interest rates and amortization
   13-4  requirements for a guaranteed loan or loan, as agreed on by the
   13-5  private lender, the user, and the department;
   13-6              (6)  the acceptable security for the department's
   13-7  participation in a project; and
   13-8              (7)  any other terms or conditions relating to a
   13-9  guarantee or loan.
  13-10        SECTION 17.  Subchapter F, Chapter 481, Government Code, is
  13-11  amended by adding Section 481.0842 to read as follows:
  13-12        Sec. 481.0842.  GUARANTEE-TO-RESERVE RATIO.  (a)  The
  13-13  department may guarantee loans as provided by Section 481.084 in an
  13-14  amount that exceeds the amount available in the fund.  Loan
  13-15  guarantees may not exceed the guarantee-to-reserve ratio set by the
  13-16  policy board under Subsection (b).
  13-17        (b)  The policy board by rule shall adopt a
  13-18  guarantee-to-reserve ratio that determines the amount of loan
  13-19  guarantees that may be made that exceed the amount available in the
  13-20  fund.  The ratio of guarantees to the amount of money available in
  13-21  the fund may not exceed two to one.
  13-22        (c)  The policy board shall review the guarantee-to-reserve
  13-23  ratio annually and adjust the ratio as appropriate.  In reviewing
  13-24  the guarantee-to-reserve ratio, the policy board shall consider the
  13-25  payment experience of the loans and any recommendations of the
  13-26  state auditor as provided by Subsection (d).
  13-27        (d)  The state auditor shall review the loan guarantee
   14-1  program and payment activity and make recommendations based on that
   14-2  review to the policy board about the program and the
   14-3  guarantee-to-reserve ratio.  A recommendation to the policy board
   14-4  shall be made not later than September 1 of each year.
   14-5        SECTION 18.  Subdivision (1), Section 481.101, Government
   14-6  Code, is amended to read as follows:
   14-7              (1)  "Historically underutilized business"
   14-8  <"Disadvantaged business"> means:
   14-9                    (A)  a corporation formed for the purpose of
  14-10  making a profit in which at least 51 percent of all classes of the
  14-11  shares of stock or other equitable securities is owned by one or
  14-12  more persons who are socially disadvantaged because of their
  14-13  identification as members of certain groups, including black
  14-14  Americans, Hispanic Americans, women, Asian Pacific Americans, and
  14-15  American Indians, who have suffered the effects of discriminatory
  14-16  practices or similar insidious circumstances over which they have
  14-17  no control;
  14-18                    (B)  a sole proprietorship formed for the purpose
  14-19  of making a profit that is 100 percent owned, operated, and
  14-20  controlled by a person described by Paragraph (A) <of this
  14-21  subdivision>;
  14-22                    (C)  a partnership formed for the purpose of
  14-23  making a profit in which 51 percent of the assets and interest in
  14-24  the partnership is owned by one or more persons described by
  14-25  Paragraph (A) <of this subdivision>.  Those persons must have
  14-26  proportionate interest in the control, operation, and management of
  14-27  the partnership's affairs;
   15-1                    (D)  a joint venture in which each entity in the
   15-2  joint venture is a historically underutilized <disadvantaged>
   15-3  business under this subdivision; or
   15-4                    (E)  a supplier contract between a historically
   15-5  underutilized <disadvantaged> business under this subdivision and a
   15-6  prime contractor under which the historically underutilized
   15-7  <disadvantaged> business is directly involved in the manufacture or
   15-8  distribution of the supplies or materials or otherwise warehouses
   15-9  and ships the supplies.
  15-10        SECTION 19.  Subsection (a), Section 481.103, Government
  15-11  Code, is amended to read as follows:
  15-12        (a)  The office shall:
  15-13              (1)  examine the role of small and historically
  15-14  underutilized <disadvantaged> businesses in the state's economy and
  15-15  the contribution of small and historically underutilized
  15-16  <disadvantaged> businesses in generating economic activity,
  15-17  expanding employment opportunities, promoting exports, stimulating
  15-18  innovation and entrepreneurship, and bringing new and untested
  15-19  products and services to the marketplace;
  15-20              (2)  serve as the principal advocate in the state on
  15-21  behalf of small and historically underutilized <disadvantaged>
  15-22  businesses and provide advice in the consideration of
  15-23  administrative requirements and legislation that affect small and
  15-24  historically underutilized <disadvantaged> businesses;
  15-25              (3)  evaluate the effectiveness of efforts of state
  15-26  agencies and other entities to assist small and historically
  15-27  underutilized <disadvantaged> businesses and make appropriate
   16-1  recommendations to assist the development and strengthening of
   16-2  small and historically underutilized businesses <disadvantaged
   16-3  business enterprise>;
   16-4              (4)  identify specific instances in which regulations
   16-5  inhibit small and historically underutilized <disadvantaged>
   16-6  business development and to the extent possible identify
   16-7  conflicting state policy goals;
   16-8              (5)  determine the availability of financial and other
   16-9  resources to small and historically underutilized <disadvantaged>
  16-10  businesses and recommend methods for:
  16-11                    (A)  increasing the availability of equity
  16-12  capital and other forms of financial assistance to small and
  16-13  historically underutilized <disadvantaged> businesses;
  16-14                    (B)  generating markets for the goods and
  16-15  services of small and historically underutilized <disadvantaged>
  16-16  businesses;
  16-17                    (C)  providing more effective education,
  16-18  training, and management and technical assistance to small and
  16-19  historically underutilized <disadvantaged> businesses; and
  16-20                    (D)  providing assistance to small and
  16-21  historically underutilized <disadvantaged> businesses in complying
  16-22  with federal, state, and local laws;
  16-23              (6)  describe the reasons for small and historically
  16-24  underutilized <disadvantaged> business successes and failures,
  16-25  ascertain the related factors that are particularly important in
  16-26  this state, and recommend actions for increasing the success rate
  16-27  of small and historically underutilized <disadvantaged> businesses;
   17-1              (7)  serve as a focal point for receiving complaints
   17-2  and suggestions concerning state government policies and activities
   17-3  that affect small and historically underutilized <disadvantaged>
   17-4  businesses;
   17-5              (8)  assist with the resolution of problems among state
   17-6  agencies and small and historically underutilized <disadvantaged>
   17-7  businesses;
   17-8              (9)  develop and advocate proposals for changes in
   17-9  state policies and activities that adversely affect small and
  17-10  historically underutilized <disadvantaged> businesses;
  17-11              (10)  provide to legislative committees and state
  17-12  agencies information on the effects of proposed policies or actions
  17-13  that affect small and historically underutilized <disadvantaged>
  17-14  businesses;
  17-15              (11)  enlist the assistance of public and private
  17-16  agencies, businesses, and other organizations in disseminating
  17-17  information about state programs and services that benefit small
  17-18  and historically underutilized <disadvantaged> businesses and
  17-19  information regarding means by which small and historically
  17-20  underutilized <disadvantaged> businesses can use those programs and
  17-21  services;
  17-22              (12)  provide information and assistance relating to
  17-23  establishing, operating, or expanding small and historically
  17-24  underutilized <disadvantaged> businesses;
  17-25              (13)  establish and operate a statewide toll-free
  17-26  telephone service providing small and historically underutilized
  17-27  <disadvantaged> businesses with ready access to the services
   18-1  offered by the office;
   18-2              (14)  assist small and historically underutilized
   18-3  businesses by:
   18-4                    (A)  identifying:
   18-5                          (i)  <identify> sources of financial
   18-6  assistance for those <small and disadvantaged> businesses; and
   18-7                          (ii)  financial barriers to those
   18-8  businesses;
   18-9                    (B)  establishing financing programs for those
  18-10  businesses that aid in overcoming financial barriers;
  18-11                    (C)  matching those<, match small and
  18-12  disadvantaged> businesses with sources of financial assistance;<,>
  18-13  and
  18-14                    (D)  assisting those <assist small and
  18-15  disadvantaged> businesses with the preparation of applications for
  18-16  loans from governmental or private sources;
  18-17              (15)  sponsor meetings, to the extent practicable in
  18-18  cooperation with public and private educational institutions, to
  18-19  provide training and disseminate information beneficial to small
  18-20  and historically underutilized <disadvantaged> businesses;
  18-21              (16)  assist small and historically underutilized
  18-22  <disadvantaged> businesses in their dealings with federal, state,
  18-23  and local governmental agencies and provide information regarding
  18-24  governmental requirements affecting small and historically
  18-25  underutilized <disadvantaged> businesses;
  18-26              (17)  perform research, studies, and analyses of
  18-27  matters affecting the interests of small and historically
   19-1  underutilized <disadvantaged> businesses;
   19-2              (18)  develop and implement programs to encourage
   19-3  governmental agencies, public sector business associations, and
   19-4  other organizations to provide useful services to small and
   19-5  historically underutilized <disadvantaged> businesses;
   19-6              (19)  use available resources within the state, such as
   19-7  small business development centers, educational institutions, and
   19-8  nonprofit associations, to coordinate the provision of management
   19-9  and technical assistance to small and historically underutilized
  19-10  <disadvantaged> businesses in a systematic manner;
  19-11              (20)  publish newsletters, brochures, and other
  19-12  documents containing information useful to small and historically
  19-13  underutilized <disadvantaged> businesses;
  19-14              (21)  identify successful small and historically
  19-15  underutilized <disadvantaged> business assistance programs provided
  19-16  by other states and determine the feasibility of adapting those
  19-17  programs for implementation in this state;
  19-18              (22)  establish an outreach program to make the
  19-19  existence of the office known to small and historically
  19-20  underutilized <disadvantaged> businesses and potential clients
  19-21  throughout the state;
  19-22              (23)  adopt rules necessary to carry out this
  19-23  subchapter;
  19-24              (24)  identify potential business opportunities for
  19-25  small and historically underutilized <disadvantaged> businesses in
  19-26  the border region and develop programs to maximize those
  19-27  opportunities;
   20-1              (25)  identify potential business opportunities for
   20-2  small and historically underutilized <disadvantaged> businesses in
   20-3  rural areas of this state and develop programs to maximize those
   20-4  opportunities; and
   20-5              (26)  perform any other functions necessary to carry
   20-6  out the purposes of this subchapter.
   20-7        SECTION 20.  Section 481.107, Government Code, is amended to
   20-8  read as follows:
   20-9        Sec. 481.107.  CONTRACTS AWARDED TO SMALL OR HISTORICALLY
  20-10  UNDERUTILIZED <DISADVANTAGED> BUSINESSES.  Each state agency shall
  20-11  keep statistical data and other records on the number of contracts
  20-12  awarded by the agency to small or historically underutilized
  20-13  <disadvantaged> businesses.
  20-14        SECTION 21.  Subchapter L, Chapter 481, Government Code, is
  20-15  amended by adding Section 481.174 to read as follows:
  20-16        Sec. 481.174.  ADVERTISEMENTS IN TOURISM PROMOTIONS.
  20-17  (a)  The department may sell advertisements in travel promotions in
  20-18  any medium.
  20-19        (b)  The policy board shall adopt rules to implement the sale
  20-20  of advertisements under Subsection (a), including rules regulating:
  20-21              (1)  the cost of advertisements;
  20-22              (2)  the type of products or services that may be
  20-23  advertised;
  20-24              (3)  the size of advertisements; and
  20-25              (4)  refunds on advertisements that are not run.
  20-26        (c)  Proceeds from the sale of advertisements shall be
  20-27  deposited in the special account in the general revenue fund that
   21-1  may be used for advertising and marketing activities of the
   21-2  department as provided by Section 156.251, Tax Code.
   21-3        SECTION 22.  Section 8, Texas Enterprise Zone Act (Article
   21-4  5190.7, Vernon's Texas Civil Statutes), is amended by adding
   21-5  Subsection (i) to read as follows:
   21-6        (i)  Not later than December 1 of each year, the department
   21-7  shall prepare an annual cost-benefit analysis of the program and
   21-8  submit it to the state auditor for review and comment on the
   21-9  methodology and conclusions of the study.  Before each regular
  21-10  legislative session convenes, the state auditor shall submit the
  21-11  analyses and the state auditor's comments on the analyses to the
  21-12  governor, the lieutenant governor, and the speaker of the house of
  21-13  representatives.
  21-14        SECTION 23.  Subsections (f) and (k), Section 10, Texas
  21-15  Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil
  21-16  Statutes), are amended to read as follows:
  21-17        (f)  The department shall allocate to each enterprise project
  21-18  at the time of its designation a job ceiling number representing
  21-19  the maximum number of new permanent jobs or retained jobs eligible
  21-20  to be included in any calculation for a tax refund for the
  21-21  enterprise project.  The job ceiling number for a project may not
  21-22  exceed 625 or a number equal to 110 percent of the number of new
  21-23  permanent jobs or retained jobs that a qualified business in its
  21-24  application for designation commits to create or retain, as
  21-25  applicable, during the five-year term of its designation as an
  21-26  enterprise project, whichever is less.  <The maximum number of new
  21-27  permanent jobs that may be allocated by the department among all
   22-1  enterprise projects designated under this section between
   22-2  August 31, 1991, and August 31, 1993, is 10,000.>
   22-3        (k)  The number of new permanent jobs or retained jobs that
   22-4  have not been certified <allocated> before the end of the first
   22-5  <each state  fiscal> year of a state fiscal biennium may be
   22-6  certified during the second year of that biennium <allocated in
   22-7  subsequent fiscal years, except that an enterprise project may not
   22-8  be designated after August 31, 1993>.
   22-9        SECTION 24.  Subsection (b), Section 151.429, Tax Code, is
  22-10  amended to read as follows:
  22-11        (b)  Subject to the limitations provided by Subsection (c) of
  22-12  this section, an enterprise project qualifies for a refund of taxes
  22-13  under this section of $2,000 for each new permanent job or job that
  22-14  has been retained by <that> the enterprise project <provides> for a
  22-15  qualified employee <during the period of its designation as an
  22-16  enterprise project>.
  22-17        SECTION 25.  The Texas Job-Training Partnership Act (Article
  22-18  4413(52), Vernon's Texas Civil Statutes) is amended by adding
  22-19  Sections 5A and 5B to read as follows:
  22-20        Sec. 5A.  RULES.  The policy board of the Texas Department of
  22-21  Commerce shall adopt necessary rules for the implementation and
  22-22  management of the job-training program.
  22-23        Sec. 5B.  CONTESTED CASES.  A proceeding of the Texas
  22-24  Department of Commerce involving the job-training program is not
  22-25  subject to the provisions of the Administrative Procedure and Texas
  22-26  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) and
  22-27  its subsequent amendments relating to contested cases.
   23-1        SECTION 26.  Section 10, Texas Job-Training Partnership Act
   23-2  (Article 4413(52), Vernon's Texas Civil Statutes), is amended to
   23-3  read as follows:
   23-4        Sec. 10.  POLICY <RULES AND REGULATIONS>.  The governor may
   23-5  develop policies <in accordance with the Administrative Procedure
   23-6  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
   23-7  Statutes), prescribe such rules and regulations as> the governor
   23-8  deems necessary to carry out the provisions of this Act and the
   23-9  federal Act.
  23-10        SECTION 27.  Section 13.09, State Purchasing and General
  23-11  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  23-12  amended to read as follows:
  23-13        Sec. 13.09.  Application.  The state agencies subject to this
  23-14  article are:
  23-15              (1)  the Texas Department of Mental Health and Mental
  23-16  Retardation;
  23-17              (2)  the Texas Department of Human Services;
  23-18              (3)  the Texas Department of Criminal Justice;
  23-19              (4)  the Department of Agriculture;
  23-20              (5)  the Central Education Agency;
  23-21              (6)  the Texas Higher Education Coordinating Board;
  23-22              (7)  the Texas <State> Department of <Highways and
  23-23  Public> Transportation; <and>
  23-24              (8)  the commission; and
  23-25              (9)  the Texas Department of Commerce.
  23-26        SECTION 28.  During the state fiscal biennium beginning
  23-27  September 1, 1993, the Texas Department of Commerce may not certify
   24-1  more than 8,000 new permanent jobs or retained jobs under
   24-2  Subsection (f), Section 10, Texas Enterprise Zone Act (Article
   24-3  5190.7, Vernon's Texas Civil Statutes), among enterprise projects
   24-4  designated after August 31, 1993.  An enterprise project designated
   24-5  after August 31, 1993, may not receive a tax refund under Section
   24-6  151.429, Tax Code, or a tax  reduction under Section 171.1015, Tax
   24-7  Code, before September 1, 1995.
   24-8        SECTION 29.  (a)  The state auditor shall conduct a study to
   24-9  review the impact of the program created under the Texas Enterprise
  24-10  Zone Act (Article 5190.7, Vernon's Texas Civil Statutes) since its
  24-11  implementation.  The comptroller, the Texas Employment Commission,
  24-12  and the Texas Department of Commerce shall provide the state
  24-13  auditor with data and assistance as necessary to complete the
  24-14  study.  At a minimum, the study shall include:
  24-15              (1)  an examination of the impact of the program on the
  24-16  state as a whole as well as the impact on individual communities
  24-17  with enterprise zones, including the program's effect on:
  24-18                    (A)  state and local tax revenues;
  24-19                    (B)  state and local tax bases;
  24-20                    (C)  state and local socio-economic conditions;
  24-21  and
  24-22                    (D)  state and local unemployment rates;
  24-23              (2)  a review of the incentives offered by local
  24-24  communities and the relative impact of the incentives on company
  24-25  location, expansion, and retention; and
  24-26              (3)  a survey of companies to determine the role of the
  24-27  state enterprise zone incentives on decisions of companies to
   25-1  locate, expand, or retain jobs in the zone.
   25-2        (b)  The state auditor shall complete the study required by
   25-3  this section and submit a report of its findings to the governor,
   25-4  lieutenant governor, and the speaker of the house of
   25-5  representatives no later than October 1, 1994.
   25-6        SECTION 30.  The Texas Department of Commerce's
   25-7  responsibility for review under Article 13, State Purchasing and
   25-8  General Services Act (Article 601b, Vernon's Texas Civil Statutes),
   25-9  is limited to one definable activity during the first two years
  25-10  this provision is in effect.
  25-11        SECTION 31.  (a)  The state auditor shall perform the first
  25-12  review of the rural economic loan guarantee program and payment
  25-13  activity and make a recommendation to the Texas Department of
  25-14  Commerce policy board regarding the program and the
  25-15  guarantee-to-reserve ratio as required by Section 481.0842,
  25-16  Government Code, as added by this Act, not later than December 1,
  25-17  1993.
  25-18        (b)  The Texas Department of Commerce may guarantee loans in
  25-19  an amount that exceeds the amount available in the Texas rural
  25-20  economic development fund as provided by Section 481.0842,
  25-21  Government Code, as added by this Act, beginning January 1, 1994.
  25-22        SECTION 32.  This Act takes effect September 1, 1993.
  25-23        SECTION 33.  On the effective date of this Act, a rule of the
  25-24  executive director of the Texas Department of Commerce becomes a
  25-25  rule of the policy board of the Texas Department of Commerce.
  25-26        SECTION 34.  The policy board of the Texas Department of
  25-27  Commerce shall review and either adopt as a rule of the department
   26-1  or repeal all policy issuances of the department regarding the
   26-2  job-training program under the Texas Job-Training Partnership Act
   26-3  (Article 4413(52), Vernon's Texas Civil Statutes) not later than
   26-4  September 1, 1994.  If a policy issuance has not been adopted as a
   26-5  rule of the department on or before September 1, 1994, the policy
   26-6  issuance is repealed.  Until a policy issuance is adopted as a rule
   26-7  of the department or repealed as provided by this section, the
   26-8  policy issuance is a rule of the department.
   26-9        SECTION 35.  The importance of this legislation and the
  26-10  crowded condition of the calendars in both houses create an
  26-11  emergency and an imperative public necessity that the
  26-12  constitutional rule requiring bills to be read on three several
  26-13  days in each house be suspended, and this rule is hereby suspended.