1-1                                   AN ACT

 1-2     relating to the disclosure of certain information submitted to a

 1-3     governmental entity by a potential vendor or  contractor.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter C, Chapter 552, Government Code, is

 1-6     amended by adding Section 552.127 to read as follows:

 1-7           Sec. 552.127.  EXCEPTION: CERTAIN INFORMATION SUBMITTED BY

 1-8     POTENTIAL VENDOR OR CONTRACTOR.  (a)  Information submitted by a

 1-9     potential vendor or contractor to a governmental body in connection

1-10     with an application for certification as a historically

1-11     underutilized or disadvantaged business under a local, state, or

1-12     federal certification program is excepted from the requirements of

1-13     Section 552.021, except as provided by this section.

1-14           (b)  Notwithstanding Section 552.007 and except as provided

1-15     by Subsection (c), the information may be disclosed only:

1-16                 (1)  to a state or local governmental entity in this

1-17     state, and the state or local governmental entity may use the

1-18     information  only:

1-19                       (A)  for purposes related to verifying an

1-20     applicant's status as a historically underutilized or disadvantaged

1-21     business; or

1-22                       (B)  for the purpose of conducting a study of a

1-23     public purchasing program established under state law for

1-24     historically  underutilized or disadvantaged businesses; or

 2-1                 (2)  with the express written permission of the

 2-2     applicant or the applicant's agent.

 2-3           (c)  Information submitted by a vendor or contractor or a

 2-4     potential vendor or contractor to a governmental body in connection

 2-5     with a specific proposed contractual relationship, a specific

 2-6     contract, or an application to be placed on a bidders list,

 2-7     including information that may also have been submitted in

 2-8     connection with an application for certification as a historically

 2-9     underutilized or disadvantaged business, is subject to required

2-10     disclosure, excepted from required disclosure, or confidential in

2-11     accordance with other law.

2-12           SECTION 2.  Section 552.127, Government Code, as added by

2-13     this Act, applies to information received by a governmental body

2-14     on, before, or after the effective date of this Act.

2-15           SECTION 3.  The importance of this legislation and the

2-16     crowded condition of the calendars in both houses create an

2-17     emergency and an imperative public necessity that the

2-18     constitutional rule requiring bills to be read on three several

2-19     days in each house be suspended, and this rule is hereby suspended,

2-20     and that this Act take effect and be in force from and after its

2-21     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 625 was passed by the House on May

         10, 1997, by the following vote:  Yeas 141, Nays 0, 1 present, not

         voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 625 was passed by the Senate on May

         20, 1997, by the following vote:  Yeas 29, Nays 2.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor