Amend CSSB 31 as follows:
      (1)  Between existing SECTIONS 6 and 7 of the bill (House
Committee Report, page 10, between lines 8 and 9), insert the
following appropriately numbered section:
      SECTION ____.  Section 2161.001(2), Government Code, is
amended to read as follows:
            (2)  "Historically underutilized business" means an
entity that has its principal place of business in this state and
that is:
                  (A)  a corporation formed for the purpose of
making a profit in which 51 percent or more of all classes of the
shares of stock or other equitable securities are owned by one or
more socially disadvantaged persons who have a proportionate
interest and actively participate in the corporation's control,
operation, and management;
                  (B)  a sole proprietorship created for the
purpose of making a profit that is completely owned, operated, and
controlled by a socially disadvantaged person;
                  (C)  a partnership formed for the purpose of
making a profit in which 51 percent or more of the assets and
interest in the partnership are owned by one or more socially
disadvantaged persons who have a proportionate interest and
actively participate in the partnership's control, operation, and
management;
                  (D)  a joint venture in which each entity in the
venture is a historically underutilized business, as determined
under another paragraph of this subdivision; or
                  (E)  a supplier contract between a historically
underutilized business as determined under another paragraph of
this subdivision and a prime contractor under which the
historically underutilized business is directly involved in the
manufacture or distribution of the goods or otherwise warehouses
and ships the goods.
      (2)  In SECTION 7 of the bill, proposed Section 2161.065(b),
Government Code, strike the second sentence (House Committee
Report, page 10, lines 17-20) and substitute the following:
Each state agency and institution of higher education shall adopt
the commission rules and shall make a good faith effort to increase
purchases and contract awards to historically underutilized
businesses based on the rules adopted by the commission to
implement the disparity study.
      (3)  Strike SECTION 9 of the bill.
      (4)  Renumber sections of the bill accordingly.