S.B. No. 405
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. Section 481.004, Government Code, is amended by
1-10 adding Subsection (e) to read as follows:
1-11 (e) At least one member of the policy board must be a
1-12 resident of a county with a population of less than 30,000.
1-13 SECTION 3. Subsection (a), Section 481.0041, Government
1-14 Code, is amended to read as follows:
1-15 (a) It is a ground for removal from the policy board if a
1-16 member:
1-17 (1) does not have at the time of appointment the
1-18 qualifications required by Section 481.0042;
1-19 (2) does not maintain during service on the policy
1-20 board the qualifications required by Section 481.0042;
1-21 (3) violates a prohibition established by Section
1-22 481.0042;
1-23 (4) <(2)> cannot discharge the member's duties for a
1-24 substantial part of the term for which the member is appointed
2-1 because of illness or disability; or
2-2 (5) <(3)> is absent from more than half of the
2-3 regularly scheduled policy board meetings that the member is
2-4 eligible to attend during a calendar year unless the absence is
2-5 excused by majority vote of the policy board.
2-6 SECTION 4. Section 481.0042, Government Code, is amended to
2-7 read as follows:
2-8 Sec. 481.0042. CONFLICT OF INTEREST. (a) A person may not
2-9 serve as a public member of the policy board or be the executive
2-10 director or an employee of the department if the person:
2-11 (1) is employed by, participates in the management of,
2-12 or is a paid consultant of a business entity that contracts with
2-13 the department;
2-14 (2) owns or controls, directly or indirectly, more
2-15 than a 10 percent interest in a business entity or other
2-16 organization that contracts with the department;
2-17 (3) uses or receives a substantial amount of tangible
2-18 goods, services, or funds from the department, other than
2-19 compensation or reimbursement authorized by law for employee
2-20 salaries and benefits or for policy board membership, attendance,
2-21 and expenses; or
2-22 (4) is an officer, employee, or paid consultant of a
2-23 trade association of businesses that contracts with the department.
2-24 (b) A person may not serve as a public member of the policy
2-25 board or be the executive director or an employee of the department
2-26 if the person's spouse:
2-27 (1) participates in the management of or is a paid
3-1 consultant of a business entity that contracts with the department;
3-2 (2) owns or controls, directly or indirectly, more
3-3 than a 10 percent interest in a business entity or other
3-4 organization that contracts with the department;
3-5 (3) uses or receives a substantial amount of tangible
3-6 goods, services, or funds from the department; or
3-7 (4) is an officer, manager, or paid consultant of a
3-8 trade association of businesses that contracts with the department.
3-9 (c) <A member of the policy board or the executive director
3-10 or an employee of the department may not:>
3-11 <(1) be an officer, employee, or paid consultant of a
3-12 business entity that contracts with the department;>
3-13 <(2) directly own, control, or have any interest in a
3-14 business entity that contracts with the department; or>
3-15 <(3) accept or solicit any gift, favor, or service
3-16 that would reasonably tend to influence the person in the discharge
3-17 of official duties or that the person knows or should know is being
3-18 offered with the intent to influence official conduct.>
3-19 <(b) An officer, employee, or paid consultant of a business
3-20 entity or a trade association of business entities that contracts
3-21 with the department may not be a member of the policy board or the
3-22 executive director or employee of the department.>
3-23 <(c) A person who is the spouse of an officer, manager, or
3-24 paid consultant of a business entity or a trade association of
3-25 business entities that contracts with the department may not be a
3-26 member of the policy board or the executive director or an employee
3-27 of the department.>
4-1 <(d)> For the purposes of this section, a trade association
4-2 is a nonprofit, cooperative, and voluntarily joined association of
4-3 business or professional competitors designed to assist its members
4-4 and its industry or profession in dealing with mutual business or
4-5 professional problems and in promoting their common interest.
4-6 (d) For the purposes of this section, a business entity is a
4-7 sole proprietorship, partnership, firm, corporation, holding
4-8 company, joint stock company, receivership, trust, or any other
4-9 entity recognized in law through which business for profit is
4-10 conducted.
4-11 (e) A person may not be a member of the policy board or the
4-12 executive director or an employee of the department if the person
4-13 is required to register as a lobbyist under Chapter 305, Government
4-14 Code, because of the person's activities for compensation on behalf
4-15 of a business entity that has an interest in a contract with the
4-16 department or a profession related to the operation of the
4-17 department.
4-18 SECTION 5. Subsection (a), Section 481.0044, Government
4-19 Code, is amended to read as follows:
4-20 (a) The policy board shall <may> adopt rules necessary for
4-21 the administration of department programs and may adopt rules for
4-22 its internal management and control.
4-23 SECTION 6. Subsection (d), Section 481.005, Government Code,
4-24 is amended to read as follows:
4-25 (d) The members of the policy board shall establish policy,
4-26 adopt rules <that the policy board may adopt under law>, evaluate
4-27 the implementation of new legislation that affects the department's
5-1 duties, review and comment on the department's budget, prepare an
5-2 annual report of the department's activities, conduct
5-3 investigations and studies, and develop long-range plans for the
5-4 future goals and needs of the department. The members of the
5-5 policy board may not be involved in the daily operation of the
5-6 department. Except for duties related to the approval and issuance
5-7 of bonds by the department, the policy board may delegate to the
5-8 executive director the duties of the policy board under this
5-9 chapter and other law that are not covered by the description of
5-10 the members' duties under this subsection.
5-11 SECTION 7. Subsections (a), (f), and (g), Section 481.010,
5-12 Government Code, are amended to read as follows:
5-13 (a) The executive director shall employ personnel necessary
5-14 for the performance of department functions. In addition to other
5-15 personnel, the executive director shall employ a human rights
5-16 officer and an internal auditor. The internal auditor shall report
5-17 directly to the policy board and may consult with the executive
5-18 director or the executive director's designee <the governor>.
5-19 (f) The executive director or the executive director's
5-20 designee shall prepare and maintain a written policy statement to
5-21 assure implementation of a program of equal employment opportunity
5-22 under which all personnel transactions are made without regard to
5-23 race, color, disability <handicap>, sex, religion, age, or national
5-24 origin. The policy statement must include:
5-25 (1) personnel policies, including policies relating to
5-26 recruitment, evaluation, selection, appointment, training, and
5-27 promotion of personnel that are in compliance with requirements of
6-1 the Commission on Human Rights;
6-2 (2) a comprehensive analysis of the department work
6-3 force that meets federal and state guidelines;
6-4 (3) procedures by which a determination can be made of
6-5 significant underuse <underutilization> in the department work
6-6 force of all persons for whom federal or state guidelines encourage
6-7 a more equitable balance; and
6-8 (4) reasonable methods to appropriately address those
6-9 areas of significant underuse <underutilization>.
6-10 (g) A policy statement prepared under Subsection (f) must
6-11 cover an annual period, be updated <at least> annually and reviewed
6-12 by the Commission on Human Rights for compliance with Subsection
6-13 (f)(1), and be filed with the governor's office.
6-14 SECTION 8. Section 481.011, Government Code, is amended to
6-15 read as follows:
6-16 Sec. 481.011. FISCAL REPORT. The executive director
6-17 <department> shall file annually with the governor and the
6-18 presiding officer of each house of the legislature a complete and
6-19 detailed written report accounting for all funds received and
6-20 disbursed by the department during the preceding fiscal year. The
6-21 annual report must be in the form and reported in the time provided
6-22 by the General Appropriations Act.
6-23 SECTION 9. Section 481.012, Government Code, is amended by
6-24 amending Subsection (c) and adding Subsection (d) to read as
6-25 follows:
6-26 (c) The policy board <department> shall prepare and maintain
6-27 a written plan that describes how a person who does not speak
7-1 English <or who has a physical, mental, or developmental
7-2 disability> can be provided reasonable access to the department's
7-3 programs. The policy board shall also comply with federal and
7-4 state laws for program and facility accessibility.
7-5 (d) The policy board by rule shall establish methods by
7-6 which consumers and service recipients are notified of the name,
7-7 mailing address, and telephone number of the department for the
7-8 purpose of directing complaints to the department.
7-9 SECTION 10. Section 481.021, Government Code, is amended to
7-10 read as follows:
7-11 Sec. 481.021. GENERAL POWERS OF DEPARTMENT. (a) The
7-12 department may:
7-13 (1) adopt and enforce rules necessary to carry out
7-14 this chapter;
7-15 (2) adopt and use an official seal;
7-16 (3) accept gifts, grants, or loans from and contract
7-17 with any entity;
7-18 (4) sue and be sued;
7-19 (5) acquire and convey property or an interest in
7-20 property;
7-21 (6) procure insurance and pay premiums on insurance of
7-22 any type, in accounts, and from insurers as the department
7-23 considers necessary and advisable to accomplish any of the
7-24 department's purposes; <and>
7-25 (7) hold patents, copyrights, trademarks, or other
7-26 evidence of protection or exclusivity issued under the laws of the
7-27 United States, any state, or any nation and may enter into license
8-1 agreements with any third parties for the receipt of fees,
8-2 royalties, or other monetary or nonmonetary value;
8-3 (8) sell advertisements in any medium; and
8-4 (9) exercise any other power necessary to carry out
8-5 this chapter.
8-6 (b) Except as otherwise provided by this chapter, money paid
8-7 to the department under this chapter shall be deposited in the
8-8 state treasury.
8-9 (c) The department shall deposit contributions from private
8-10 sources in a separate fund kept and held in escrow and in trust by
8-11 the state treasurer for and on behalf of the department as funds
8-12 held outside the treasury under Section 404.073, and the money
8-13 contributed shall be used to carry out the purposes of the
8-14 department and, to the extent possible, the purposes specified by
8-15 the donors. The state treasurer may invest and reinvest the money,
8-16 pending its use, in the fund in investments authorized by law for
8-17 state funds that the state treasurer considers appropriate.
8-18 SECTION 11. Subsection (c), Section 481.027, Government
8-19 Code, is amended to read as follows:
8-20 (c) The department shall maintain regional offices in
8-21 locations specified in the General Appropriations Act <maintain at
8-22 least one regional office in Europe, at least one regional office
8-23 in the Pacific Rim area, and at least one regional office in
8-24 Mexico. Each regional office may have one or more satellite
8-25 offices>.
8-26 SECTION 12. Subchapter B, Chapter 481, Government Code, is
8-27 amended by adding Section 481.028 to read as follows:
9-1 Sec. 481.028. MEMORANDUM OF UNDERSTANDING WITH OTHER STATE
9-2 AGENCIES. (a) The department shall initiate negotiations for and
9-3 enter into a memorandum of understanding with any other state
9-4 agency involved in economic development to cooperate in program
9-5 planning and budgeting.
9-6 (b) The department shall enter into an agreement as required
9-7 by Subsection (a) with the:
9-8 (1) Department of Agriculture regarding each agency's
9-9 international marketing efforts and business finance programs;
9-10 (2) Texas Employment Commission, Texas Higher
9-11 Education Coordinating Board, and Central Education Agency
9-12 regarding each agency's work force development efforts and literacy
9-13 programs;
9-14 (3) General Land Office regarding each agency's rural
9-15 economic development efforts;
9-16 (4) Texas Department of Housing and Community Affairs
9-17 regarding each agency's community development programs;
9-18 (5) Texas Department of Transportation and Parks and
9-19 Wildlife Department regarding each agency's efforts to promote
9-20 tourism;
9-21 (6) Texas Air Control Board regarding small business
9-22 finance and permits;
9-23 (7) office of the state comptroller regarding economic
9-24 development and analyses;
9-25 (8) Texas Historical Commission regarding community
9-26 preservation, restoration, and revitalization;
9-27 (9) Texas Department of Human Services regarding work
10-1 force development;
10-2 (10) General Services Commission regarding providing
10-3 procurement information, certification, and technical assistance to
10-4 small and historically underutilized businesses;
10-5 (11) Alternative Fuels Council if that council is
10-6 created by S.B. No. 737, Acts of the 73rd Legislature, Regular
10-7 Session, 1993, regarding the promotion of alternative fuels;
10-8 (12) institutions of higher education regarding work
10-9 force development, literacy, and technology transfer; and
10-10 (13) Texas Water Commission regarding the marketing of
10-11 recyclable products and business permits.
10-12 (c) Each agency listed in Subsection (b) may enter into
10-13 memoranda of understanding in areas other than those listed for the
10-14 respective agency.
10-15 (d) The memorandum of understanding between the department
10-16 and the other state agency shall be adopted as a rule of each
10-17 department or agency.
10-18 SECTION 13. Subchapter B, Chapter 481, Government Code, is
10-19 amended by adding Section 481.029 to read as follows:
10-20 Sec. 481.029. COST RECOVERY. The department shall recover
10-21 the cost of providing direct technical assistance and management
10-22 training services to businesses and communities when reasonable and
10-23 practical.
10-24 SECTION 14. Subsections (a) and (b), Section 481.050,
10-25 Government Code, are amended to read as follows:
10-26 (a) A member of the policy board, the executive director, or
10-27 an agent or employee of the department, in the person's own name or
11-1 in the name of a nominee, may not hold an ownership interest of
11-2 more than the following amount in an association, trust,
11-3 corporation, partnership, or other entity that is, in its own name
11-4 or in the name of a nominee, a party to a contract or agreement
11-5 under this chapter <subchapter> on which the member of the policy
11-6 board, executive director, agent, or employee may be called on to
11-7 act or vote:
11-8 (1) 7-1/2 percent of the fair market value of the
11-9 entity; or
11-10 (2) $50,000.
11-11 (b) With respect to a direct or indirect interest, other
11-12 than an interest prohibited by Subsection (a), in a contract or
11-13 agreement under this chapter <subchapter> on which the member of
11-14 the policy board, executive director, agent, or employee may be
11-15 called on to act or vote, the member of the policy board, executive
11-16 director, agent, or employee shall disclose the interest to the
11-17 secretary of the department before the department takes final
11-18 action concerning the contract or agreement and shall disclose the
11-19 nature and extent of the interest and the person's acquisition of
11-20 it. The department shall publicly acknowledge this disclosure and
11-21 enter it in its minutes. A member of the policy board, executive
11-22 director, agent, or employee who holds such an interest may not be
11-23 officially involved in regard to the contract or agreement, may not
11-24 vote on a matter relating to the contract or agreement, and may not
11-25 communicate with the executive director or other members, agents,
11-26 or employees concerning the contract or agreement. Notwithstanding
11-27 any other provision of law, a contract or agreement entered into in
12-1 conformity with this subsection is not invalid because of an
12-2 interest described by this subsection nor is a person who complies
12-3 with this subsection guilty of an offense, and the person may not
12-4 be removed from office or be subjected to other penalty because of
12-5 the interest.
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 <"Disadvantaged>
14-8 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. Section 481.155, Government Code, as added by
20-15 Chapter 1, Acts of the 73rd Legislature, Regular Session, 1993, is
20-16 amended by adding Subsection (g) to read as follows:
20-17 (g) During each state fiscal year the executive director
20-18 shall attempt to ensure that at least 50 percent of the total
20-19 dollar amount of grants awarded under this section is awarded to
20-20 small businesses, as defined by Section 481.101.
20-21 SECTION 22. Subchapter J, Chapter 481, Government Code, as
20-22 added by Chapter 1, Acts of the 73rd Legislature, Regular Session,
20-23 1993, is amended by adding Section 481.1601 to read as follows:
20-24 Sec. 481.1601. LEGISLATIVE REVIEW COMMITTEE; REPORTS.
20-25 (a) The legislative review committee is composed of:
20-26 (1) two senators appointed by the lieutenant governor;
20-27 (2) two members of the house of representatives
21-1 appointed by the speaker of the house of representatives; and
21-2 (3) one representative of business appointed by the
21-3 governor.
21-4 (b) Every six months the executive director shall submit to
21-5 the legislative review committee a report covering the previous
21-6 six-month period and containing the information required for a
21-7 report under Section 481.160. The legislative review committee
21-8 shall review the report and submit to the executive director
21-9 recommendations concerning the carrying out of the program.
21-10 (c) The executive director shall submit with the report
21-11 required under Section 481.160:
21-12 (1) copies of the recommendations that the executive
21-13 director has received from the legislative review committee during
21-14 the preceding fiscal year; and
21-15 (2) a statement of the executive director's actions
21-16 taken on the recommendations.
21-17 SECTION 23. Subchapter L, Chapter 481, Government Code, is
21-18 amended by adding Section 481.174 to read as follows:
21-19 Sec. 481.174. ADVERTISEMENTS IN TOURISM PROMOTIONS.
21-20 (a) The department may sell advertisements in travel promotions in
21-21 any medium.
21-22 (b) The policy board shall adopt rules to implement the sale
21-23 of advertisements under Subsection (a), including rules regulating:
21-24 (1) the cost of advertisements;
21-25 (2) the type of products or services that may be
21-26 advertised;
21-27 (3) the size of advertisements; and
22-1 (4) refunds on advertisements that are not run.
22-2 (c) Proceeds from the sale of advertisements shall be
22-3 deposited in the special account in the general revenue fund that
22-4 may be used for advertising and marketing activities of the
22-5 department as provided by Section 156.251, Tax Code.
22-6 SECTION 24. Section 481.182, Government Code, is amended to
22-7 read as follows:
22-8 Sec. 481.182. Duties. The department shall:
22-9 (1) establish and maintain a central depository of
22-10 information, including computer retrievable files, concerning the
22-11 significant characteristics of the state and its people, economy,
22-12 land, and physical characteristics, including information
22-13 concerning employment opportunities in the state;
22-14 (2) analyze the information collected under
22-15 Subdivision (1) as well as other information and disseminate the
22-16 information and analyses to state, federal, and local agencies and
22-17 the public;
22-18 (3) serve as the official cognizant administrator of
22-19 the United States Bureau of the Census federal-state cooperative;
22-20 (4) collect information and compile data on the border
22-21 region for the preparation of specific plans and programs for the
22-22 border region;
22-23 (5) adopt procedures to ensure the greatest use by and
22-24 exchange among state agencies of data bases and statistical and
22-25 analytical models created by or belonging to the state;
22-26 (6) assist institutions of elementary, secondary, and
22-27 higher education to develop and expand programs of education in
23-1 international commerce, geography, and language;
23-2 (7) establish and operate a comprehensive
23-3 clearinghouse of information relating to small and historically
23-4 underutilized businesses; and
23-5 (8) develop and maintain a master file of information
23-6 on small and historically underutilized business assistance
23-7 programs provided by federal, state, and local agencies,
23-8 educational institutions, chambers of commerce, civic
23-9 organizations, community development groups, private industry
23-10 associations, and other organizations and provide comprehensive,
23-11 timely information to persons seeking that information.
23-12 SECTION 25. Section 8, Texas Enterprise Zone Act (Article
23-13 5190.7, Vernon's Texas Civil Statutes), is amended by adding
23-14 Subsection (i) to read as follows:
23-15 (i) Not later than December 1 of each year, the department
23-16 shall prepare an annual cost-benefit analysis of the program and
23-17 submit it to the state auditor for review and comment on the
23-18 methodology and conclusions of the study. Before each regular
23-19 legislative session convenes, the state auditor shall submit the
23-20 analyses and the state auditor's comments on the analyses to the
23-21 governor, the lieutenant governor, and the speaker of the house of
23-22 representatives.
23-23 SECTION 26. Subsection (f), Section 10, Texas Enterprise
23-24 Zone Act (Article 5190.7, Vernon's Texas Civil Statutes), is
23-25 amended to read as follows:
23-26 (f) The department shall allocate to each enterprise project
23-27 at the time of its designation a job ceiling number representing
24-1 the maximum number of new permanent jobs or retained jobs eligible
24-2 to be included in any calculation for a tax refund for the
24-3 enterprise project. The job ceiling number for a project may not
24-4 exceed 625 or a number equal to 110 percent of the number of new
24-5 permanent jobs or retained jobs that a qualified business in its
24-6 application for designation commits to create or retain, as
24-7 applicable, during the five-year term of its designation as an
24-8 enterprise project, whichever is less. <The maximum number of new
24-9 permanent jobs that may be allocated by the department among all
24-10 enterprise projects designated under this section between August
24-11 31, 1991, and August 31, 1993, is 10,000.>
24-12 SECTION 27. Effective August 30, 1993, Subsection (k),
24-13 Section 10, Texas Enterprise Zone Act (Article 5190.7, Vernon's
24-14 Texas Civil Statutes), is repealed.
24-15 SECTION 28. Subsection (b), Section 151.429, Tax Code, is
24-16 amended to read as follows:
24-17 (b) Subject to the limitations provided by Subsection (c) of
24-18 this section, an enterprise project qualifies for a refund of taxes
24-19 under this section of $2,000 for each new permanent job or job that
24-20 has been retained by <that> the enterprise project <provides> for a
24-21 qualified employee <during the period of its designation as an
24-22 enterprise project>.
24-23 SECTION 29. The Texas Job-Training Partnership Act (Article
24-24 4413(52), Vernon's Texas Civil Statutes) is amended by adding
24-25 Sections 5A and 5B to read as follows:
24-26 Sec. 5A. RULES. The policy board of the Texas Department of
24-27 Commerce shall adopt necessary rules for the implementation and
25-1 management of the job-training program.
25-2 Sec. 5B. CONTESTED CASES. A proceeding of the Texas
25-3 Department of Commerce involving the job-training program is not
25-4 subject to the provisions of the Administrative Procedure and Texas
25-5 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) and
25-6 its subsequent amendments relating to contested cases.
25-7 SECTION 30. Section 10, Texas Job-Training Partnership Act
25-8 (Article 4413(52), Vernon's Texas Civil Statutes), is amended to
25-9 read as follows:
25-10 Sec. 10. POLICY <RULES AND REGULATIONS>. The governor may
25-11 develop policies <in accordance with the Administrative Procedure
25-12 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
25-13 Statutes), prescribe such rules and regulations as> the governor
25-14 deems necessary to carry out the provisions of this Act and the
25-15 federal Act.
25-16 SECTION 31. During the state fiscal biennium beginning
25-17 September 1, 1993, the Texas Department of Commerce may not certify
25-18 more than 8,000 new permanent jobs or retained jobs under
25-19 Subsection (f), Section 10, Texas Enterprise Zone Act (Article
25-20 5190.7, Vernon's Texas Civil Statutes), as amended by this Act,
25-21 among enterprise projects designated after August 31, 1993. An
25-22 enterprise project designated after August 31, 1993, may not
25-23 receive a tax refund under Section 151.429, Tax Code, as amended by
25-24 this Act, or a tax reduction under Section 171.1015, Tax Code,
25-25 before September 1, 1995.
25-26 SECTION 32. (a) The state auditor shall conduct a study to
25-27 review the impact of the program created under the Texas Enterprise
26-1 Zone Act (Article 5190.7, Vernon's Texas Civil Statutes) since its
26-2 implementation. The comptroller, the Texas Employment Commission,
26-3 and the Texas Department of Commerce shall provide the state
26-4 auditor with data and assistance as necessary to complete the
26-5 study. At a minimum, the study shall include:
26-6 (1) an examination of the impact of the program on the
26-7 state as a whole as well as the impact on individual communities
26-8 with enterprise zones, including the program's effect on state and
26-9 local:
26-10 (A) tax revenues;
26-11 (B) tax bases;
26-12 (C) socio-economic conditions; and
26-13 (D) unemployment rates;
26-14 (2) a review of the incentives offered by local
26-15 communities and the relative impact of the incentives on company
26-16 location, expansion, and retention; and
26-17 (3) a survey of companies to determine the role of the
26-18 state enterprise zone incentives on decisions of companies to
26-19 locate, expand, or retain jobs in the zone.
26-20 (b) The state auditor shall complete the study required by
26-21 this section and submit a report of its findings to the governor,
26-22 lieutenant governor, and the speaker of the house of
26-23 representatives not later than October 1, 1994.
26-24 SECTION 33. (a) The state auditor shall perform the first
26-25 review of the rural economic loan guarantee program and payment
26-26 activity and make a recommendation to the Texas Department of
26-27 Commerce policy board regarding the program and the
27-1 guarantee-to-reserve ratio as required by Section 481.0842,
27-2 Government Code, as added by this Act, not later than December 1,
27-3 1993.
27-4 (b) The Texas Department of Commerce may guarantee loans in
27-5 an amount that exceeds the amount available in the Texas rural
27-6 economic development fund as provided by Section 481.0842,
27-7 Government Code, as added by this Act, beginning January 1, 1994.
27-8 SECTION 34. Subsection (d), Section 156.251, Tax Code, is
27-9 amended to read as follows:
27-10 (d) An amount equal to the amount of revenue derived from
27-11 the collection of taxes imposed by this chapter at a rate of
27-12 one-half of one percent shall be allocated <to a special account>
27-13 in the general revenue fund to be used for media advertising and
27-14 other marketing activities of the Tourism Division of the Texas
27-15 Department of Commerce. Section 403.094(h), Government Code, does
27-16 not apply to funds described in this section. This subsection
27-17 takes effect October 1, 1994.
27-18 SECTION 35. This Act takes effect September 1, 1993.
27-19 SECTION 36. For purposes of transition, the policy board of
27-20 the Texas Department of Commerce shall review all rules adopted by
27-21 the executive director and either adopt as a rule of the policy
27-22 board or repeal such rules. If a rule that was adopted by the
27-23 executive director is not adopted by the policy body by April 1,
27-24 1994, the rule is repealed. Until a rule is adopted or repealed as
27-25 provided by this section, the rule is a rule of the policy board.
27-26 SECTION 37. The policy board of the Texas Department of
27-27 Commerce shall review and either adopt as a rule of the department
28-1 or repeal all policy issuances of the department regarding the
28-2 job-training program under the Texas Job-Training Partnership Act
28-3 (Article 4413(52), Vernon's Texas Civil Statutes) not later than
28-4 September 1, 1994. If a policy issuance has not been adopted as a
28-5 rule of the department on or before September 1, 1994, the policy
28-6 issuance is repealed. Until a policy issuance is adopted as a rule
28-7 of the department or repealed as provided by this section, the
28-8 policy issuance is a rule of the department.
28-9 SECTION 38. The importance of this legislation and the
28-10 crowded condition of the calendars in both houses create an
28-11 emergency and an imperative public necessity that the
28-12 constitutional rule requiring bills to be read on three several
28-13 days in each house be suspended, and this rule is hereby suspended.