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.