By Burnam H.B. No. 1094
76R3148 JJT-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain state purchases from and investments in
1-3 entities doing business in Burma.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 2252, Government Code, is amended by
1-6 adding Subchapter E to read as follows:
1-7 SUBCHAPTER E. PURCHASES FROM VENDORS DOING
1-8 BUSINESS WITH THE COUNTRY OF BURMA
1-9 Sec. 2252.111. DEFINITIONS. In this subchapter:
1-10 (1) "Burma" means the country of Burma or the Union of
1-11 Myanmar.
1-12 (2) "Commission" means the General Services
1-13 Commission.
1-14 (3) "Distribution agreement" means an agreement to
1-15 guarantee a contract for the supply of goods or services.
1-16 (4) "Doing business in Burma" means:
1-17 (A) having a principal place of business or
1-18 corporate headquarters in Burma;
1-19 (B) being incorporated in Burma;
1-20 (C) having any operations, leases, franchises,
1-21 majority-owned subsidiaries, distribution agreements, or any
1-22 agreements similar to a distribution agreement in Burma;
1-23 (D) being the majority-owned subsidiary,
1-24 licensee, or franchisee of a person doing business in Burma;
2-1 (E) providing any loans, goods, or services,
2-2 including financial services, to the government of Burma; or
2-3 (F) promoting the importation or sale of gems,
2-4 timber, oil, gas, or other related products from Burma.
2-5 (5) "Franchisee" means a person authorized by another
2-6 person to sell the other person's goods or services.
2-7 (6) "Government of Burma" means any public or
2-8 quasi-public entity operating within Burma, including municipal,
2-9 provincial, national, or other governmental and military bodies,
2-10 the departments and agencies of those bodies, public utilities,
2-11 public facilities, or any national corporation in which Burma has a
2-12 financial interest or operational responsibilities.
2-13 (7) "Governmental entity" has the meaning assigned by
2-14 Section 2252.001.
2-15 (8) "Licensee" means a person to whom another person
2-16 grants permission to exercise a certain privilege or to carry on a
2-17 particular business.
2-18 (9) "Majority-owned subsidiary" means a company 51
2-19 percent or more of which is owned by another company.
2-20 (10) "Vendor" means a person able to supply goods or
2-21 services to a governmental entity.
2-22 Sec. 2252.112. PURCHASES FROM BUSINESSES DOING BUSINESS IN
2-23 BURMA. (a) Except as provided by Subsections (c) and (d), a
2-24 governmental entity may not purchase goods or services from a
2-25 vendor doing business in Burma.
2-26 (b) A vendor offering to sell goods or services to a
2-27 governmental entity shall certify to the governmental entity that
3-1 the vendor does not do business in Burma. The attorney general
3-2 shall prepare the form on which the certification must be made.
3-3 (c) A governmental entity may purchase goods or services
3-4 from a vendor who is doing business in Burma only after certifying
3-5 in writing to the commission that:
3-6 (1) the purchase is essential to the governmental
3-7 entity; and
3-8 (2) compliance with Subsection (a) would eliminate the
3-9 only bid or offer the governmental entity received regarding a
3-10 proposed purchase or would result in inadequate competition
3-11 regarding a proposed purchase.
3-12 (d) Notwithstanding Subsection (a), a governmental entity
3-13 may purchase goods or services from a vendor with operations in
3-14 Burma if those operations are for the sole purpose of reporting the
3-15 news, providing medical supplies, or providing goods or services
3-16 for the provision of international telecommunications.
3-17 Sec. 2252.113. LIST OF INELIGIBLE VENDORS. (a) The
3-18 commission shall establish and maintain a list of vendors known to
3-19 do business with Burma.
3-20 (b) The commission shall update the list at least once every
3-21 three months.
3-22 (c) The commission shall make the list available to all
3-23 governmental entities.
3-24 Sec. 2252.114. RULES. The commission shall adopt rules to
3-25 implement this subchapter.
3-26 Sec. 2252.115. BIENNIAL REPORT. The commission shall file a
3-27 biennial report with the senate and house of representatives not
4-1 later than January 1 of each odd-numbered year providing details
4-2 about compliance with this subchapter.
4-3 SECTION 2. Subchapter B, Chapter 2256, Government Code, is
4-4 amended by adding Section 2256.057 to read as follows:
4-5 Sec. 2256.057. INVESTMENT IN BURMA. (a) In this section,
4-6 "Burma," "distribution agreement," "doing business in Burma,"
4-7 "franchisee," "government of Burma," "licensee," and
4-8 "majority-owned subsidiary" have the meanings assigned by Section
4-9 2252.111.
4-10 (b) A state agency or local government may not invest in or
4-11 purchase obligations of a private corporation or other private
4-12 business entity doing business in Burma.
4-13 (c) The prohibition prescribed by Subsection (a) applies to
4-14 an investment or purchase of obligations without regard to whether
4-15 Subchapter A applies to the investment or purchase.
4-16 SECTION 3. (a) The change in law made by Section 1 of this
4-17 Act applies only to a contract entered into or renewed on or after
4-18 the effective date of this Act. A contract in existence on the
4-19 effective date of this Act is governed by the law as it existed
4-20 when the contract was made.
4-21 (b) The change in law made by Section 2 of this Act applies
4-22 to an investment made before, on, or after the effective date of
4-23 this Act. A governmental entity subject to Section 2256.057,
4-24 Government Code, as added by this Act, shall divest all public
4-25 funds invested in an entity that does business with Burma not later
4-26 than September 1, 2001.
4-27 SECTION 4. This Act takes effect September 1, 1999.
5-1 SECTION 5. The importance of this legislation and the
5-2 crowded condition of the calendars in both houses create an
5-3 emergency and an imperative public necessity that the
5-4 constitutional rule requiring bills to be read on three several
5-5 days in each house be suspended, and this rule is hereby suspended.