By Cuellar, Brown of Brazos, Krusee H.B. No. 2090
76R6906 WP-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to competition by a state agency or political subdivision
1-3 with private enterprise.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 2, Business & Commerce Code, is amended by
1-6 adding Chapter 21 to read as follows:
1-7 CHAPTER 21. COMPETITION BETWEEN STATE AGENCY OR POLITICAL
1-8 SUBDIVISION AND PRIVATE BUSINESS
1-9 Sec. 21.01. DEFINITIONS. In this chapter:
1-10 (1) "Political subdivision" has the meaning assigned
1-11 by Section 172.003, Local Government Code.
1-12 (2) "Small business" means an entity that:
1-13 (A) is domiciled in this state or has at least
1-14 51 percent of its employees located in this state;
1-15 (B) is formed to make a profit;
1-16 (C) is independently owned and operated; and
1-17 (D) conforms with current employment regulations
1-18 provided by the United States Department of Labor.
1-19 (3) "State agency" has the meaning assigned by Section
1-20 315.002(1), Government Code.
1-21 Sec. 21.02. UNLAWFUL PRACTICES. (a) A state agency or
1-22 political subdivision may not fund, capitalize, guarantee an
1-23 indebtedness or lease obligation of, or subsidize a commercial
1-24 business that is unrelated to the state agency's or political
2-1 subdivision's charter, or other governing legal documents, unless
2-2 the commercial business:
2-3 (1) is only for the use of the state agency's or
2-4 political subdivision's employees, staff, faculty, students,
2-5 volunteers, patients, or residents; or
2-6 (2) involves sales to the public that are incidental
2-7 or occasional and not permanent, ongoing, or periodic.
2-8 (b) A person is not considered an employee, staff or faculty
2-9 member, student, volunteer, patient, or resident of the state
2-10 agency or political subdivision if the person's only relationship
2-11 with the state agency or political subdivision is:
2-12 (1) receipt of a product or service from the
2-13 commercial business; or
2-14 (2) a family relationship with a beneficiary of the
2-15 state agency or political subdivision.
2-16 Sec. 21.03. OTHER ACTIVITY. A state agency or political
2-17 subdivision does not violate this chapter by:
2-18 (1) making investments in publicly traded stocks and
2-19 bonds, real estate, or other investments not under its control; or
2-20 (2) using its facilities to host groups meeting solely
2-21 for educational purposes.
2-22 Sec. 21.04. EXISTING BUSINESSES. A state agency or
2-23 political subdivision that before September 1, 1999, funded,
2-24 capitalized, guaranteed an indebtedness or lease obligation of, or
2-25 subsidized a commercial business may continue that activity but may
2-26 not expand the scope of the activity.
2-27 Sec. 21.05. COMPLAINTS. (a) A small business may submit a
3-1 complaint to the attorney general regarding a violation of this
3-2 chapter.
3-3 (b) Not later than the 60th day after the date a complaint
3-4 is submitted, the attorney general shall bring an action under
3-5 Section 21.07, issue to the small business a written determination
3-6 under Section 21.06, or issue a written statement of why the action
3-7 will not be brought or the determination issued. If the attorney
3-8 general does not bring the action or issue the written
3-9 determination or statement, the small business may petition a court
3-10 for a writ of mandamus ordering the attorney general to bring the
3-11 action or provide the determination or statement.
3-12 Sec. 21.06. REMEDY. A small business that is determined by
3-13 the attorney general to have been aggrieved by a violation of this
3-14 chapter may bring an action in a court of competent jurisdiction
3-15 for either injunctive relief, economic damages, or both.
3-16 Sec. 21.07. INJUNCTION. (a) The attorney general may sue
3-17 to enjoin a person from violating this chapter.
3-18 (b) The attorney general may not file suit under this
3-19 section before the eighth day after the date on which the attorney
3-20 general notifies the person against whom the suit is to be brought
3-21 of the alleged violation, except that if the attorney general
3-22 intends to request that the court issue a temporary restraining
3-23 order under this section, notice is not required, and the attorney
3-24 general may immediately file the suit.
3-25 (c) The attorney general is entitled to recover all
3-26 reasonable costs of prosecuting the case, including court costs and
3-27 costs of investigation, depositions, witness fees, and attorney's
4-1 fees.
4-2 SECTION 2. This Act takes effect September 1, 1999.
4-3 SECTION 3. The importance of this legislation and the
4-4 crowded condition of the calendars in both houses create an
4-5 emergency and an imperative public necessity that the
4-6 constitutional rule requiring bills to be read on three several
4-7 days in each house be suspended, and this rule is hereby suspended.