By Nixon S.B. No. 599 76R5116 WP-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requiring ownership disclosure for certain businesses. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter D, Chapter 35, Business & Commerce 1-5 Code, is amended by adding Section 35.55 to read as follows: 1-6 Sec. 35.55. COMPETING BUSINESS OWNERSHIP DISCLOSURE IN 1-7 CONTRACT. (a) In this section "affiliate," "affiliated 1-8 shareholder," and "control" have the meanings assigned by Article 1-9 13.02, Texas Business Corporation Act. 1-10 (b) A person who is an affiliate or affiliated shareholder 1-11 of, or who has control over, another person competing in the same 1-12 industry or marketplace shall disclose the relationship on any 1-13 contract to which the person is a party. 1-14 (c) A contract that does not comply with Subsection (b) is 1-15 voidable by a party to the contract that has not violated this 1-16 section. A person that may void a contract under this section is 1-17 entitled to the greater of $500 or actual damages for each contract 1-18 not in compliance with this section. 1-19 SECTION 2. (a) This Act takes effect September 1, 1999. 1-20 The change in law applies only to a contract formed on or after the 1-21 effective date of this Act. 1-22 (b) A contract formed before the effective date of this Act 1-23 is covered by the law in effect when the contract was formed, and 1-24 the former law is continued in effect for that purpose. 2-1 SECTION 3. The importance of this legislation and the 2-2 crowded condition of the calendars in both houses create an 2-3 emergency and an imperative public necessity that the 2-4 constitutional rule requiring bills to be read on three several 2-5 days in each house be suspended, and this rule is hereby suspended.