By Ellis                                               S.B. No. 465
       74R4494 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the definition of a historically underutilized business
    1-3  in the enabling law of the General Services Commission.
    1-5        SECTION 1.  Section 1.02(3), State Purchasing and General
    1-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    1-7  amended to read as follows:
    1-8              (3)  "Historically underutilized business" means:
    1-9                    (A)  a corporation formed for the purpose of
   1-10  making a profit in which at least 51 percent of all classes of the
   1-11  shares of stock or other equitable securities are owned by one or
   1-12  more persons who:
   1-13                          (i)  are socially disadvantaged because of
   1-14  their identification as members of certain groups, including black
   1-15  Americans, Hispanic Americans, women, Asian <Pacific> Americans,
   1-16  and Native Americans, and have suffered the effects of
   1-17  discriminatory practices or similar insidious circumstances over
   1-18  which they have no control; and
   1-19                          (ii)  have a proportionate interest and
   1-20  demonstrate active participation in the control, operation, and
   1-21  management of the corporation's affairs;
   1-22                    (B)  a sole proprietorship created for the
   1-23  purpose of making a profit that is 100 percent owned, operated, and
   1-24  controlled by a person described by Paragraph (A)(i) of this
    2-1  subdivision;
    2-2                    (C)  a partnership formed for the purpose of
    2-3  making a profit in which at least 51 percent of the assets and
    2-4  interest in the partnership is owned by one or more persons who:
    2-5                          (i)  are described by Paragraph (A)(i) of
    2-6  this subdivision; and
    2-7                          (ii)  have a proportionate interest and
    2-8  demonstrate active participation in the control, operation, and
    2-9  management of the partnership affairs;
   2-10                    (D)  a joint venture in which each entity in the
   2-11  joint venture is a historically underutilized business under this
   2-12  subdivision; or
   2-13                    (E)  a supplier contract between a historically
   2-14  underutilized business under this subdivision and a prime
   2-15  contractor under which the historically underutilized business is
   2-16  directly involved in the manufacture or distribution of the
   2-17  supplies or materials or otherwise warehouses and ships the
   2-18  supplies.
   2-19        SECTION 2.  The importance of this legislation and the
   2-20  crowded condition of the calendars in both houses create an
   2-21  emergency and an imperative public necessity that the
   2-22  constitutional rule requiring bills to be read on three several
   2-23  days in each house be suspended, and this rule is hereby suspended,
   2-24  and that this Act take effect and be in force from and after its
   2-25  passage, and it is so enacted.