1-1 By: Carriker S.B. No. 405
1-2 (In the Senate - Filed February 18, 1993; February 22, 1993,
1-3 read first time and referred to Committee on Economic Development;
1-4 March 17, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; March 17, 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. 405 By: Haley
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the continuation of the Texas Department of Commerce.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 481.003, Government Code, is amended to
1-26 read as follows:
1-27 Sec. 481.003. Sunset Provision. The Texas Department of
1-28 Commerce is subject to Chapter 325 (Texas Sunset Act). Unless
1-29 continued in existence as provided by that chapter, the department
1-30 is abolished and this chapter expires September 1, 2001 <1993>.
1-31 SECTION 2. Subsection (a), Section 481.0041, Government
1-32 Code, is amended to read as follows:
1-33 (a) It is a ground for removal from the policy board if a
1-34 member:
1-35 (1) does not have at the time of appointment the
1-36 qualifications required by Section 481.004;
1-37 (2) does not maintain during service on the policy
1-38 board the qualifications required by Section 481.004;
1-39 (3) violates a prohibition established by Section
1-40 481.0042;
1-41 (4) <(2)> cannot discharge the member's duties for a
1-42 substantial part of the term for which the member is appointed
1-43 because of illness or disability; or
1-44 (5) <(3)> is absent from more than half of the
1-45 regularly scheduled policy board meetings that the member is
1-46 eligible to attend during a calendar year unless the absence is
1-47 excused by majority vote of the policy board.
1-48 SECTION 3. Section 481.0042, Government Code, is amended to
1-49 read as follows:
1-50 Sec. 481.0042. CONFLICT OF INTEREST. (a) A person may not
1-51 serve as a public member of the policy board or be the executive
1-52 director or an employee of the department if the person:
1-53 (1) is employed by, participates in the management of,
1-54 or is a paid consultant of a business entity that contracts with
1-55 the department;
1-56 (2) owns or controls, directly or indirectly, more
1-57 than a 10 percent interest in a business entity or other
1-58 organization that contracts with the department;
1-59 (3) uses or receives a substantial amount of tangible
1-60 goods, services, or funds from the department, other than
1-61 compensation or reimbursement authorized by law for employee
1-62 salaries and benefits or for policy board membership, attendance,
1-63 and expenses; or
1-64 (4) is an officer, employee, or paid consultant of a
1-65 trade association of businesses that contracts with the department.
1-66 (b) A person may not serve as a public member of the policy
1-67 board or be the executive director or an employee of the department
1-68 if the person's spouse:
2-1 (1) participates in the management of or is a paid
2-2 consultant of a business entity that contracts with the department;
2-3 (2) owns or controls, directly or indirectly, more
2-4 than a 10 percent interest in a business entity or other
2-5 organization that contracts with the department;
2-6 (3) uses or receives a substantial amount of tangible
2-7 goods, services, or funds from the department; or
2-8 (4) is an officer, manager, or paid consultant of a
2-9 trade association of businesses that contracts with the department.
2-10 (c) <A member of the policy board or the executive director
2-11 or an employee of the department may not:>
2-12 <(1) be an officer, employee, or paid consultant of a
2-13 business entity that contracts with the department;>
2-14 <(2) directly own, control, or have any interest in a
2-15 business entity that contracts with the department; or>
2-16 <(3) accept or solicit any gift, favor, or service
2-17 that would reasonably tend to influence the person in the discharge
2-18 of official duties or that the person knows or should know is being
2-19 offered with the intent to influence official conduct.>
2-20 <(b) An officer, employee, or paid consultant of a business
2-21 entity or a trade association of business entities that contracts
2-22 with the department may not be a member of the policy board or the
2-23 executive director or employee of the department.>
2-24 <(c) A person who is the spouse of an officer, manager, or
2-25 paid consultant of a business entity or a trade association of
2-26 business entities that contracts with the department may not be a
2-27 member of the policy board or the executive director or an employee
2-28 of the department.>
2-29 <(d)> For the purposes of this section, a trade association
2-30 is a nonprofit, cooperative, and voluntarily joined association of
2-31 business or professional competitors designed to assist its members
2-32 and its industry or profession in dealing with mutual business or
2-33 professional problems and in promoting their common interest.
2-34 (d) For the purposes of this section, a business entity is a
2-35 sole proprietorship, partnership, firm, corporation, holding
2-36 company, joint stock company, receivership, trust, or any other
2-37 entity recognized in law through which business for profit is
2-38 conducted.
2-39 (e) A person may not be a member of the policy board or the
2-40 executive director or an employee of the department if the person
2-41 is required to register as a lobbyist under Chapter 305, Government
2-42 Code, because of the person's activities for compensation on behalf
2-43 of a business entity that has an interest in a contract with the
2-44 department or a profession related to the operation of the
2-45 department.
2-46 SECTION 4. Subsection (a), Section 481.0044, Government
2-47 Code, is amended to read as follows:
2-48 (a) The policy board shall <may> adopt rules necessary for
2-49 the administration of department programs and may adopt rules for
2-50 its internal management and control.
2-51 SECTION 5. Subsection (d), Section 481.005, Government Code,
2-52 is amended to read as follows:
2-53 (d) The members of the policy board shall establish policy,
2-54 adopt rules <that the policy board may adopt under law>, evaluate
2-55 the implementation of new legislation that affects the department's
2-56 duties, review and comment on the department's budget, prepare an
2-57 annual report of the department's activities, conduct
2-58 investigations and studies, and develop long-range plans for the
2-59 future goals and needs of the department. The members of the
2-60 policy board may not be involved in the daily operation of the
2-61 department. Except for duties related to the approval and issuance
2-62 of bonds by the department, the policy board may delegate to the
2-63 executive director the duties of the policy board under this
2-64 chapter and other law that are not covered by the description of
2-65 the members' duties under this subsection.
2-66 SECTION 6. Subsections (f) and (g), Section 481.010,
2-67 Government Code, are amended to read as follows:
2-68 (f) The executive director or the executive director's
2-69 designee shall prepare and maintain a written policy statement to
2-70 assure implementation of a program of equal employment opportunity
3-1 under which all personnel transactions are made without regard to
3-2 race, color, disability <handicap>, sex, religion, age, or national
3-3 origin. The policy statement must include:
3-4 (1) personnel policies, including policies relating to
3-5 recruitment, evaluation, selection, appointment, training, and
3-6 promotion of personnel that are in compliance with requirements of
3-7 the Commission on Human Rights;
3-8 (2) a comprehensive analysis of the department work
3-9 force that meets federal and state guidelines;
3-10 (3) procedures by which a determination can be made of
3-11 significant underuse <underutilization> in the department work
3-12 force of all persons for whom federal or state guidelines encourage
3-13 a more equitable balance; and
3-14 (4) reasonable methods to appropriately address those
3-15 areas of significant underuse <underutilization>.
3-16 (g) A policy statement prepared under Subsection (f) must
3-17 cover an annual period, be updated <at least> annually and reviewed
3-18 by the Commission on Human Rights for compliance with Subsection
3-19 (f)(1), and be filed with the governor's office.
3-20 SECTION 7. Section 481.011, Government Code, is amended to
3-21 read as follows:
3-22 Sec. 481.011. FISCAL REPORT. The executive director
3-23 <department> shall file annually with the governor and the
3-24 presiding officer of each house of the legislature a complete and
3-25 detailed written report accounting for all funds received and
3-26 disbursed by the department during the preceding fiscal year. The
3-27 annual report must be in the form and reported in the time provided
3-28 by the General Appropriations Act.
3-29 SECTION 8. Section 481.012, Government Code, is amended by
3-30 amending Subsection (c) and adding Subsection (d) to read as
3-31 follows:
3-32 (c) The policy board <department> shall prepare and maintain
3-33 a written plan that describes how a person who does not speak
3-34 English <or who has a physical, mental, or developmental
3-35 disability> can be provided reasonable access to the department's
3-36 programs. The policy board shall also comply with federal and
3-37 state laws for program and facility accessibility.
3-38 (d) The policy board by rule shall establish methods by
3-39 which consumers and service recipients are notified of the name,
3-40 mailing address, and telephone number of the department for the
3-41 purpose of directing complaints to the department.
3-42 SECTION 9. Section 481.021, Government Code, is amended to
3-43 read as follows:
3-44 Sec. 481.021. GENERAL POWERS OF DEPARTMENT. (a) The
3-45 department may:
3-46 (1) adopt and enforce rules necessary to carry out
3-47 this chapter;
3-48 (2) adopt and use an official seal;
3-49 (3) accept gifts, grants, or loans from and contract
3-50 with any entity;
3-51 (4) sue and be sued;
3-52 (5) acquire and convey property or an interest in
3-53 property;
3-54 (6) procure insurance and pay premiums on insurance of
3-55 any type, in accounts, and from insurers as the department
3-56 considers necessary and advisable to accomplish any of the
3-57 department's purposes; <and>
3-58 (7) hold patents, copyrights, trademarks, or other
3-59 evidence of protection or exclusivity issued under the laws of the
3-60 United States, any state, or any nation and may enter into license
3-61 agreements with any third parties for the receipt of fees,
3-62 royalties, or other monetary or nonmonetary value; and
3-63 (8) exercise any other power necessary to carry out
3-64 this chapter.
3-65 (b) Except as otherwise provided by this chapter, money paid
3-66 to the department under this chapter shall be deposited in the
3-67 state treasury.
3-68 (c) The department shall deposit contributions from private
3-69 sources in a separate fund kept and held in escrow and in trust by
3-70 the state treasurer for and on behalf of the department as funds
4-1 held outside the treasury under Section 404.073, and the money
4-2 contributed shall be used to carry out the purposes of the
4-3 department and, to the extent possible, the purposes specified by
4-4 the donors. The state treasurer may invest and reinvest the money,
4-5 pending its use, in the fund in investments authorized by law for
4-6 state funds that the state treasurer considers appropriate.
4-7 SECTION 10. Section 481.022, Government Code, is amended by
4-8 adding Subsection (c) to read as follows:
4-9 (c) The department is subject to the requirements of Article
4-10 13, State Purchasing and General Services Act (Article 601b,
4-11 Vernon's Texas Civil Statutes).
4-12 SECTION 11. Subsection (c), Section 481.027, Government
4-13 Code, is amended to read as follows:
4-14 (c) The department shall maintain regional offices in
4-15 locations specified in the General Appropriations Act <maintain at
4-16 least one regional office in Europe, at least one regional office
4-17 in the Pacific Rim area, and at least one regional office in
4-18 Mexico. Each regional office may have one or more satellite
4-19 offices>.
4-20 SECTION 12. Subchapter B, Chapter 481, Government Code, is
4-21 amended by adding Section 481.028 to read as follows:
4-22 Sec. 481.028. MEMORANDUM OF UNDERSTANDING WITH OTHER STATE
4-23 AGENCIES. (a) The department shall initiate negotiations for and
4-24 enter into a memorandum of understanding with any other state
4-25 agency involved in economic development to cooperate in program
4-26 planning and budgeting.
4-27 (b) The department shall enter into an agreement as required
4-28 by Subsection (a) with the:
4-29 (1) Department of Agriculture regarding each agency's
4-30 international marketing efforts and business finance programs;
4-31 (2) Texas Employment Commission, Texas Higher
4-32 Education Coordinating Board, and Central Education Agency
4-33 regarding each agency's work force development efforts and literacy
4-34 programs;
4-35 (3) General Land Office regarding each agency's
4-36 promotion of alternative energy resources and rural economic
4-37 development efforts;
4-38 (4) Texas Department of Housing and Community Affairs
4-39 regarding each agency's community development programs;
4-40 (5) Texas Department of Transportation and Parks and
4-41 Wildlife Department regarding each agency's efforts to promote
4-42 tourism;
4-43 (6) Texas Air Control Board regarding small business
4-44 finance and permits;
4-45 (7) office of the state comptroller regarding economic
4-46 development and analyses;
4-47 (8) Texas Historical Commission regarding community
4-48 preservation, restoration, and revitalization;
4-49 (9) Texas Department of Human Services regarding work
4-50 force development;
4-51 (10) institutions of higher education regarding work
4-52 force development, literacy, and technology transfer; and
4-53 (11) Texas Water Commission regarding the marketing of
4-54 recyclable products and business permits.
4-55 (c) Each agency listed in Subsection (b) may enter into
4-56 memoranda of understanding in areas other than those listed for the
4-57 respective agency.
4-58 (d) The memorandum of understanding between the department
4-59 and the other state agency shall be adopted as a rule of each
4-60 department or agency.
4-61 SECTION 13. Subchapter B, Chapter 481, Government Code, is
4-62 amended by adding Section 481.029 to read as follows:
4-63 Sec. 481.029. COST RECOVERY. The department shall recover
4-64 the cost of providing direct technical assistance and management
4-65 training services to businesses and communities when reasonable and
4-66 practical.
4-67 SECTION 14. Section 481.050, Government Code, is amended to
4-68 read as follows:
4-69 Sec. 481.050. CONFLICTS OF INTEREST. (a) A member of the
4-70 policy board, the executive director, or an agent or employee of
5-1 the department, in the person's own name or in the name of a
5-2 nominee, may not hold an ownership interest of more than the
5-3 following amount in an association, trust, corporation,
5-4 partnership, or other entity that is, in its own name or in the
5-5 name of a nominee, a party to a contract or agreement under this
5-6 chapter <subchapter> on which the member of the policy board,
5-7 executive director, agent, or employee may be called on to act or
5-8 vote:
5-9 (1) 7-1/2 percent of the fair market value of the
5-10 entity; or
5-11 (2) $50,000.
5-12 (b) With respect to a direct or indirect interest, other
5-13 than an interest prohibited by Subsection (a), in a contract or
5-14 agreement under this chapter <subchapter> on which the member of
5-15 the policy board, executive director, agent, or employee may be
5-16 called on to act or vote, the member of the policy board, executive
5-17 director, agent, or employee shall disclose the interest to the
5-18 secretary of the department before the department takes final
5-19 action concerning the contract or agreement and shall disclose the
5-20 nature and extent of the interest and the person's acquisition of
5-21 it. The department shall publicly acknowledge this disclosure and
5-22 enter it in its minutes. A member of the policy board, executive
5-23 director, agent, or employee who holds such an interest may not be
5-24 officially involved in regard to the contract or agreement, may not
5-25 vote on a matter relating to the contract or agreement, and may not
5-26 communicate with the executive director or other members, agents,
5-27 or employees concerning the contract or agreement. Notwithstanding
5-28 any other provision of law, a contract or agreement entered into in
5-29 conformity with this subsection is not invalid because of an
5-30 interest described by this subsection nor is a person who complies
5-31 with this subsection guilty of an offense, and the person may not
5-32 be removed from office or be subjected to other penalty because of
5-33 the interest.
5-34 (c) A contract or agreement made in violation of this
5-35 section is void and does not create an action against the
5-36 department.
5-37 SECTION 15. Subchapter F, Chapter 481, Government Code, is
5-38 amended by adding Section 481.0831 to read as follows:
5-39 Sec. 481.0831. OFFICE OF RURAL AFFAIRS. (a) The department
5-40 shall maintain an office of rural affairs.
5-41 (b) The office shall:
5-42 (1) implement the programs established under this
5-43 subchapter; and
5-44 (2) address the special needs of rural communities and
5-45 businesses and assist those communities and businesses.
5-46 SECTION 16. Subsection (a), Section 481.084, Government
5-47 Code, is amended to read as follows:
5-48 (a) The department may <shall use money in the fund to>
5-49 guarantee not more than 90 percent of a loan made by a private
5-50 lender or to make loans to fund a project. For each guarantee the
5-51 department shall determine:
5-52 (1) that the project is located in a rural area;
5-53 (2) the amount of equity the user must pledge or apply
5-54 to the establishment of the project;
5-55 (3) the fees charged by the department, including
5-56 guarantee or loan fees, application fees, annual fees, and any
5-57 other costs associated with the loan guarantee or loan, as
5-58 necessary to fund the administration of this subchapter;
5-59 (4) the maximum and minimum guarantee or loan amounts,
5-60 if applicable;
5-61 (5) the permissible interest rates and amortization
5-62 requirements for a guaranteed loan or loan, as agreed on by the
5-63 private lender, the user, and the department;
5-64 (6) the acceptable security for the department's
5-65 participation in a project; and
5-66 (7) any other terms or conditions relating to a
5-67 guarantee or loan.
5-68 SECTION 17. Subchapter F, Chapter 481, Government Code, is
5-69 amended by adding Section 481.0842 to read as follows:
5-70 Sec. 481.0842. GUARANTEE-TO-RESERVE RATIO. (a) The
6-1 department may guarantee loans as provided by Section 481.084 in an
6-2 amount that exceeds the amount available in the fund. Loan
6-3 guarantees may not exceed the guarantee-to-reserve ratio set by the
6-4 policy board under Subsection (b).
6-5 (b) The policy board by rule shall adopt a
6-6 guarantee-to-reserve ratio that determines the amount of loan
6-7 guarantees that may be made that exceed the amount available in the
6-8 fund. The ratio of guarantees to the amount of money available in
6-9 the fund may not exceed two to one.
6-10 (c) The policy board shall review the guarantee-to-reserve
6-11 ratio annually and adjust the ratio as appropriate. In reviewing
6-12 the guarantee-to-reserve ratio, the policy board shall consider the
6-13 payment experience of the loans and any recommendations of the
6-14 state auditor as provided by Subsection (d).
6-15 (d) The state auditor shall review the loan guarantee
6-16 program and payment activity and make recommendations based on that
6-17 review to the policy board about the program and the
6-18 guarantee-to-reserve ratio. A recommendation to the policy board
6-19 shall be made not later than September 1 of each year.
6-20 SECTION 18. Subdivision (1), Section 481.101, Government
6-21 Code, is amended to read as follows:
6-22 (1) "Historically underutilized business"
6-23 <"Disadvantaged business"> means:
6-24 (A) a corporation formed for the purpose of
6-25 making a profit in which at least 51 percent of all classes of the
6-26 shares of stock or other equitable securities is owned by one or
6-27 more persons who are socially disadvantaged because of their
6-28 identification as members of certain groups, including black
6-29 Americans, Hispanic Americans, women, Asian Pacific Americans, and
6-30 American Indians, who have suffered the effects of discriminatory
6-31 practices or similar insidious circumstances over which they have
6-32 no control;
6-33 (B) a sole proprietorship formed for the purpose
6-34 of making a profit that is 100 percent owned, operated, and
6-35 controlled by a person described by Paragraph (A) <of this
6-36 subdivision>;
6-37 (C) a partnership formed for the purpose of
6-38 making a profit in which 51 percent of the assets and interest in
6-39 the partnership is owned by one or more persons described by
6-40 Paragraph (A) <of this subdivision>. Those persons must have
6-41 proportionate interest in the control, operation, and management of
6-42 the partnership's affairs;
6-43 (D) a joint venture in which each entity in the
6-44 joint venture is a historically underutilized <disadvantaged>
6-45 business under this subdivision; or
6-46 (E) a supplier contract between a historically
6-47 underutilized <disadvantaged> business under this subdivision and a
6-48 prime contractor under which the historically underutilized
6-49 <disadvantaged> business is directly involved in the manufacture or
6-50 distribution of the supplies or materials or otherwise warehouses
6-51 and ships the supplies.
6-52 SECTION 19. Subsection (a), Section 481.103, Government
6-53 Code, is amended to read as follows:
6-54 (a) The office shall:
6-55 (1) examine the role of small and historically
6-56 underutilized <disadvantaged> businesses in the state's economy and
6-57 the contribution of small and historically underutilized
6-58 <disadvantaged> businesses in generating economic activity,
6-59 expanding employment opportunities, promoting exports, stimulating
6-60 innovation and entrepreneurship, and bringing new and untested
6-61 products and services to the marketplace;
6-62 (2) serve as the principal advocate in the state on
6-63 behalf of small and historically underutilized <disadvantaged>
6-64 businesses and provide advice in the consideration of
6-65 administrative requirements and legislation that affect small and
6-66 historically underutilized <disadvantaged> businesses;
6-67 (3) evaluate the effectiveness of efforts of state
6-68 agencies and other entities to assist small and historically
6-69 underutilized <disadvantaged> businesses and make appropriate
6-70 recommendations to assist the development and strengthening of
7-1 small and historically underutilized businesses <disadvantaged
7-2 business enterprise>;
7-3 (4) identify specific instances in which regulations
7-4 inhibit small and historically underutilized <disadvantaged>
7-5 business development and to the extent possible identify
7-6 conflicting state policy goals;
7-7 (5) determine the availability of financial and other
7-8 resources to small and historically underutilized <disadvantaged>
7-9 businesses and recommend methods for:
7-10 (A) increasing the availability of equity
7-11 capital and other forms of financial assistance to small and
7-12 historically underutilized <disadvantaged> businesses;
7-13 (B) generating markets for the goods and
7-14 services of small and historically underutilized <disadvantaged>
7-15 businesses;
7-16 (C) providing more effective education,
7-17 training, and management and technical assistance to small and
7-18 historically underutilized <disadvantaged> businesses; and
7-19 (D) providing assistance to small and
7-20 historically underutilized <disadvantaged> businesses in complying
7-21 with federal, state, and local laws;
7-22 (6) describe the reasons for small and historically
7-23 underutilized <disadvantaged> business successes and failures,
7-24 ascertain the related factors that are particularly important in
7-25 this state, and recommend actions for increasing the success rate
7-26 of small and historically underutilized <disadvantaged> businesses;
7-27 (7) serve as a focal point for receiving complaints
7-28 and suggestions concerning state government policies and activities
7-29 that affect small and historically underutilized <disadvantaged>
7-30 businesses;
7-31 (8) assist with the resolution of problems among state
7-32 agencies and small and historically underutilized <disadvantaged>
7-33 businesses;
7-34 (9) develop and advocate proposals for changes in
7-35 state policies and activities that adversely affect small and
7-36 historically underutilized <disadvantaged> businesses;
7-37 (10) provide to legislative committees and state
7-38 agencies information on the effects of proposed policies or actions
7-39 that affect small and historically underutilized <disadvantaged>
7-40 businesses;
7-41 (11) enlist the assistance of public and private
7-42 agencies, businesses, and other organizations in disseminating
7-43 information about state programs and services that benefit small
7-44 and historically underutilized <disadvantaged> businesses and
7-45 information regarding means by which small and historically
7-46 underutilized <disadvantaged> businesses can use those programs and
7-47 services;
7-48 (12) provide information and assistance relating to
7-49 establishing, operating, or expanding small and historically
7-50 underutilized <disadvantaged> businesses;
7-51 (13) establish and operate a statewide toll-free
7-52 telephone service providing small and historically underutilized
7-53 <disadvantaged> businesses with ready access to the services
7-54 offered by the office;
7-55 (14) assist small and historically underutilized
7-56 businesses by:
7-57 (A) identifying:
7-58 (i) <identify> sources of financial
7-59 assistance for those <small and disadvantaged> businesses; and
7-60 (ii) financial barriers to those
7-61 businesses;
7-62 (B) establishing financing programs for those
7-63 businesses that aid in overcoming financial barriers;
7-64 (C) matching those<, match small and
7-65 disadvantaged> businesses with sources of financial assistance;<,>
7-66 and
7-67 (D) assisting those <assist small and
7-68 disadvantaged> businesses with the preparation of applications for
7-69 loans from governmental or private sources;
7-70 (15) sponsor meetings, to the extent practicable in
8-1 cooperation with public and private educational institutions, to
8-2 provide training and disseminate information beneficial to small
8-3 and historically underutilized <disadvantaged> businesses;
8-4 (16) assist small and historically underutilized
8-5 <disadvantaged> businesses in their dealings with federal, state,
8-6 and local governmental agencies and provide information regarding
8-7 governmental requirements affecting small and historically
8-8 underutilized <disadvantaged> businesses;
8-9 (17) perform research, studies, and analyses of
8-10 matters affecting the interests of small and historically
8-11 underutilized <disadvantaged> businesses;
8-12 (18) develop and implement programs to encourage
8-13 governmental agencies, public sector business associations, and
8-14 other organizations to provide useful services to small and
8-15 historically underutilized <disadvantaged> businesses;
8-16 (19) use available resources within the state, such as
8-17 small business development centers, educational institutions, and
8-18 nonprofit associations, to coordinate the provision of management
8-19 and technical assistance to small and historically underutilized
8-20 <disadvantaged> businesses in a systematic manner;
8-21 (20) publish newsletters, brochures, and other
8-22 documents containing information useful to small and historically
8-23 underutilized <disadvantaged> businesses;
8-24 (21) identify successful small and historically
8-25 underutilized <disadvantaged> business assistance programs provided
8-26 by other states and determine the feasibility of adapting those
8-27 programs for implementation in this state;
8-28 (22) establish an outreach program to make the
8-29 existence of the office known to small and historically
8-30 underutilized <disadvantaged> businesses and potential clients
8-31 throughout the state;
8-32 (23) adopt rules necessary to carry out this
8-33 subchapter;
8-34 (24) identify potential business opportunities for
8-35 small and historically underutilized <disadvantaged> businesses in
8-36 the border region and develop programs to maximize those
8-37 opportunities;
8-38 (25) identify potential business opportunities for
8-39 small and historically underutilized <disadvantaged> businesses in
8-40 rural areas of this state and develop programs to maximize those
8-41 opportunities; and
8-42 (26) perform any other functions necessary to carry
8-43 out the purposes of this subchapter.
8-44 SECTION 20. Section 481.107, Government Code, is amended to
8-45 read as follows:
8-46 Sec. 481.107. CONTRACTS AWARDED TO SMALL OR HISTORICALLY
8-47 UNDERUTILIZED <DISADVANTAGED> BUSINESSES. Each state agency shall
8-48 keep statistical data and other records on the number of contracts
8-49 awarded by the agency to small or historically underutilized
8-50 <disadvantaged> businesses.
8-51 SECTION 21. Subchapter L, Chapter 481, Government Code, is
8-52 amended by adding Section 481.174 to read as follows:
8-53 Sec. 481.174. ADVERTISEMENTS IN TOURISM PUBLICATIONS.
8-54 (a) The department may sell advertising space in promotional
8-55 travel literature.
8-56 (b) The policy board shall adopt rules to implement the sale
8-57 of advertisements under Subsection (a), including rules regulating:
8-58 (1) the cost of advertisements;
8-59 (2) the type of products or services that may be
8-60 advertised;
8-61 (3) the size of advertisements; and
8-62 (4) refunds on advertisements that are not run.
8-63 (c) Proceeds from the sale of advertisements shall be
8-64 deposited in the special account in the general revenue fund that
8-65 may be used for advertising and marketing activities of the
8-66 department as provided by Section 156.251, Tax Code.
8-67 SECTION 22. Section 8, Texas Enterprise Zone Act (Article
8-68 5190.7, Vernon's Texas Civil Statutes), is amended by adding
8-69 Subsection (i) to read as follows:
8-70 (i) Not later than December 1 of each year, the department
9-1 shall prepare an annual cost-benefit analysis of the program and
9-2 submit it to the state auditor for review and comment. The state
9-3 auditor shall review and comment on the analysis not later than
9-4 January 1 of each year. The state auditor shall submit the
9-5 analysis and the state auditor's comments to the governor, the
9-6 lieutenant governor, and the speaker of the house of
9-7 representatives for consideration in preparing appropriations and
9-8 determining the number of authorized enterprise project jobs.
9-9 SECTION 23. Subsections (f) and (k), Section 10, Texas
9-10 Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil
9-11 Statutes), are amended to read as follows:
9-12 (f) The department shall allocate to each enterprise project
9-13 at the time of its designation a job ceiling number representing
9-14 the maximum number of new permanent jobs eligible to be included in
9-15 any calculation for a tax refund for the enterprise project. The
9-16 job ceiling number for a project may not exceed 625 or a number
9-17 equal to 110 percent of the number of new permanent jobs that a
9-18 qualified business in its application for designation commits to
9-19 create during the five-year term of its designation as an
9-20 enterprise project, whichever is less. The <maximum> number of new
9-21 permanent jobs or jobs that have been retained by an enterprise
9-22 project that may be allocated by the department among all
9-23 enterprise projects designated under this section shall be
9-24 determined in the General Appropriations Act <between August 31,
9-25 1991, and August 31, 1993, is 10,000>. If the number of enterprise
9-26 project jobs that may be allocated by the department is not
9-27 determined in the General Appropriations Act, the department is
9-28 prohibited from allocating any enterprise project jobs during the
9-29 biennium.
9-30 (k) The number of new permanent jobs or retained jobs that
9-31 have not been allocated before the end of a <each> state fiscal
9-32 year may be allocated in the subsequent fiscal year of the biennium
9-33 <years, except that an enterprise project may not be designated
9-34 after August 31, 1993>.
9-35 SECTION 24. Subsection (b), Section 151.429, Tax Code, is
9-36 amended to read as follows:
9-37 (b) Subject to the limitations provided by Subsection (c) of
9-38 this section, an enterprise project qualifies for a refund of taxes
9-39 under this section of $2,000 for each new permanent job or job that
9-40 has been retained by <that> the enterprise project <provides> for a
9-41 qualified employee <during the period of its designation as an
9-42 enterprise project>.
9-43 SECTION 25. The Texas Job-Training Partnership Act (Article
9-44 4413(52), Vernon's Texas Civil Statutes) is amended by adding
9-45 Section 5A to read as follows:
9-46 Sec. 5A. RULES. The policy board of the Texas Department of
9-47 Commerce shall adopt necessary rules for the implementation and
9-48 management of the job-training program.
9-49 SECTION 26. Section 10, Texas Job-Training Partnership Act
9-50 (Article 4413(52), Vernon's Texas Civil Statutes), is amended to
9-51 read as follows:
9-52 Sec. 10. POLICY <RULES AND REGULATIONS>. The governor may
9-53 develop policies <in accordance with the Administrative Procedure
9-54 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
9-55 Statutes), prescribe such rules and regulations as> the governor
9-56 deems necessary to carry out the provisions of this Act and the
9-57 federal Act.
9-58 SECTION 27. Section 4A, Development Corporation Act of 1979
9-59 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
9-60 amending Subsection (i) and adding Subsections (q) and (r) to read
9-61 as follows:
9-62 (i) A corporation under this section may undertake any
9-63 project that a corporation under Section 4B of this Act may
9-64 undertake <Except as provided by this subsection, the corporation
9-65 may not undertake a project the primary purpose of which is to
9-66 provide transportation facilities, solid waste disposal facilities,
9-67 or air or water pollution control facilities. However, the
9-68 corporation may provide those facilities to benefit property
9-69 acquired for a project having another primary purpose. The
9-70 corporation may undertake a municipal water supply project and
10-1 provide related transmission and treatment facilities connected
10-2 with a municipally owned or operated water system or sewage system.
10-3 The corporation may undertake a project the primary purpose of
10-4 which is to provide:>
10-5 <(1) a general aviation business service airport that
10-6 is an integral part of an industrial park; or>
10-7 <(2) port-related facilities to support waterborne
10-8 commerce>.
10-9 (q) Before expending funds to undertake a project, a
10-10 corporation under this section shall hold at least one public
10-11 hearing on the proposed project.
10-12 (r) The department by rule shall adopt nonbinding guidelines
10-13 setting forth a process that a corporation under this section may
10-14 use in deciding the types of projects to undertake and in planning
10-15 projects.
10-16 SECTION 28. Section 13.09, State Purchasing and General
10-17 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
10-18 amended to read as follows:
10-19 Sec. 13.09. Application. The state agencies subject to this
10-20 article are:
10-21 (1) the Texas Department of Mental Health and Mental
10-22 Retardation;
10-23 (2) the Texas Department of Human Services;
10-24 (3) the Texas Department of Criminal Justice;
10-25 (4) the Department of Agriculture;
10-26 (5) the Central Education Agency;
10-27 (6) the Texas Higher Education Coordinating Board;
10-28 (7) the Texas <State> Department of <Highways and
10-29 Public> Transportation; <and>
10-30 (8) the commission; and
10-31 (9) the Texas Department of Commerce.
10-32 SECTION 29. The Texas Department of Commerce's
10-33 responsibility for review under Article 13, State Purchasing and
10-34 General Services Act (Article 601b, Vernon's Texas Civil Statutes),
10-35 is limited to one definable activity during the first two years
10-36 this provision is in effect.
10-37 SECTION 30. (a) The state auditor shall perform the first
10-38 review of the rural economic loan guarantee program and payment
10-39 activity and make a recommendation to the Texas Department of
10-40 Commerce policy board regarding the program and the
10-41 guarantee-to-reserve ratio as required by Section 481.0842,
10-42 Government Code, as added by this Act, not later than December 1,
10-43 1993.
10-44 (b) The Texas Department of Commerce may guarantee loans in
10-45 an amount that exceeds the amount available in the Texas rural
10-46 economic development fund as provided by Section 481.0842,
10-47 Government Code, as added by this Act, beginning January 1, 1994.
10-48 SECTION 31. This Act takes effect September 1, 1993.
10-49 SECTION 32. On the effective date of this Act, a rule of the
10-50 executive director of the Texas Department of Commerce becomes a
10-51 rule of the policy board of the Texas Department of Commerce.
10-52 SECTION 33. The policy board of the Texas Department of
10-53 Commerce shall review and either adopt as a rule of the department
10-54 or repeal all policy issuances of the department regarding the
10-55 job-training program under the Texas Job-Training Partnership Act
10-56 (Article 4413(52), Vernon's Texas Civil Statutes) not later than
10-57 September 1, 1994. If a policy issuance has not been adopted as a
10-58 rule of the department on or before September 1, 1994, the policy
10-59 issuance is repealed. Until a policy issuance is adopted as a rule
10-60 of the department or repealed as provided by this section, the
10-61 policy issuance is a rule of the department.
10-62 SECTION 34. The importance of this legislation and the
10-63 crowded condition of the calendars in both houses create an
10-64 emergency and an imperative public necessity that the
10-65 constitutional rule requiring bills to be read on three several
10-66 days in each house be suspended, and this rule is hereby suspended.
10-67 * * * * *
10-68 Austin,
10-69 Texas
10-70 March 17, 1993
11-1 Hon. Bob Bullock
11-2 President of the Senate
11-3 Sir:
11-4 We, your Committee on Economic Development to which was referred
11-5 S.B. No. 405, have had the same under consideration, and I am
11-6 instructed to report it back to the Senate with the recommendation
11-7 that it do not pass, but that the Committee Substitute adopted in
11-8 lieu thereof do pass and be printed.
11-9 Parker,
11-10 Chairman
11-11 * * * * *
11-12 WITNESSES
11-13 FOR AGAINST ON
11-14 ___________________________________________________________________
11-15 FOR AGAINST ON
11-16 ___________________________________________________________________
11-17 Name: Eddy Etheredge x
11-18 Representing: Hays County
11-19 City: San Marcos
11-20 -------------------------------------------------------------------
11-21 Name: Dan Hansen x
11-22 Representing: Tx Hotel Motel Assoc.
11-23 City: Austin
11-24 -------------------------------------------------------------------
11-25 Name: Terry Ryan x
11-26 Representing: Ft Worth Chamber of Comm.
11-27 City: Ft Worth
11-28 -------------------------------------------------------------------
11-29 Name: Claudia Mora x
11-30 Representing: City of San Antonio
11-31 City: San Antonio
11-32 -------------------------------------------------------------------
11-33 Name: David Ojeda Jr x
11-34 Representing: Community Serv. Agency
11-35 City: Carrizo Springs
11-36 -------------------------------------------------------------------
11-37 Name: Dean Vanderbilt x
11-38 Representing: North Tx Commission
11-39 City: Dallas
11-40 -------------------------------------------------------------------
11-41 Name: Angelos Angelou x
11-42 Representing: Greater Austin Chamber
11-43 City: Austin
11-44 -------------------------------------------------------------------
11-45 Name: Chris Shields x
11-46 Representing: Tx Chamber of Comm.
11-47 City: Austin
11-48 -------------------------------------------------------------------
11-49 Name: Curtis Cleveland x
11-50 Representing: Waco Chamber of Comm.
11-51 City: Waco
11-52 -------------------------------------------------------------------
11-53 Name: Joe Newman x
11-54 Representing: Tx Industrial Development
11-55 City: Austin
11-56 -------------------------------------------------------------------
11-57 Name: Vic Mathias x
11-58 Representing: Tx Travel Indust.
11-59 City: Austin
11-60 -------------------------------------------------------------------