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78R8845 PAM-D
By: West S.B. No. 1475
A BILL TO BE ENTITLED
AN ACT
relating to historically underutilized businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 466.107, Government Code, is amended to
read as follows:
Sec. 466.107. HISTORICALLY UNDERUTILIZED [MINORITY]
BUSINESSES. (a) The executive director and each lottery operator
shall take positive steps to:
(1) inform historically underutilized [minority]
businesses of opportunities to:
(A) provide lottery equipment and supplies to the
commission;
(B) provide services, including advertising, to
the commission for the operation of the lottery; or
(C) obtain a license to sell lottery tickets;
(2) waive or modify bond requirements, if feasible;
(3) award contracts for lottery equipment or supplies
to historically underutilized [minority] businesses when possible;
(4) award contracts for lottery services, including
advertising, to historically underutilized [minority] businesses
when possible;
(5) license historically underutilized [minority]
businesses as sales agents;
(6) monitor the effectiveness of the efforts to
increase the ability of historically underutilized [minority]
businesses to do business with the commission; and
(7) require all bidders or contractors, when
appropriate, to include specific plans or arrangements to use
subcontracts with historically underutilized [minority]
businesses.
(b) In this section,[:
[(1)] "historically underutilized [Minority] business"
has the meaning assigned by Section 2161.001 [means a business
entity at least 51 percent of which is owned by minority group
members or, in the case of a corporation, at least 51 percent of the
shares of which are owned by minority group members, and that:
[(A) is managed and, in daily operations, is
controlled by minority group members; and
[(B) is a domestic business entity with a home or
branch office located in this state and is not a branch or
subsidiary of a foreign corporation, firm, or other business
entity].
[(2) "Minority group members" includes:
[(A) African Americans;
[(B) American Indians;
[(C) Asian Americans; and
[(D) Mexican Americans and other Americans of
Hispanic origin.
[(c) The commission shall annually report to the
legislature and the governor on the level of minority business
participation as pertains to both the commission's contracts and
the licensing of sales agents. The report must include
recommendations for the improvement of minority business
opportunities in lottery-related business.]
SECTION 2. Section 2161.062, Government Code, is amended by
amending Subsection (e) and adding Subsection (f) to read as
follows:
(e) A state agency with a biennial budget that exceeds $10
million shall designate a staff member to serve as the historically
underutilized businesses coordinator for the agency during the
fiscal year. [The procurement director may serve as the
coordinator.] In agencies that employ a historically underutilized
businesses coordinator, the position of coordinator, within the
agency's structure, must be at least equal to the position of
procurement director. The coordinator and the procurement director
may serve under a financial director of the agency only if the
financial director is responsible for procurement and general
fiscal affairs of the agency. In addition to any other
responsibilities, the coordinator shall:
(1) coordinate training programs for the recruitment
and retention of historically underutilized businesses;
(2) report required information to the commission;
and
(3) match historically underutilized businesses with
key staff within the agency.
(f) The position classification officer and each state
agency that employs a historically underutilized businesses
coordinator shall ensure that the positions of coordinator and
procurement director are classified to titles in the position
classification plan that are in the same salary group.
SECTION 3. Subchapter B, Chapter 2161, Government Code, is
amended by adding Section 2161.067 to read as follows:
Sec. 2161.067. DUTY TO REPORT CERTAIN VIOLATIONS. If the
commission suspects that a person has committed an offense under
Section 2161.231(a), the commission shall report the alleged
conduct to the prosecuting attorney in the county in which the
alleged conduct occurred.
SECTION 4. Section 2161.231(b), Government Code, is amended
to read as follows:
(b) An offense under this section is a [third degree] felony
punishable by:
(1) imprisonment in the institutional division of the
Texas Department of Criminal Justice for any term of not more than
10 years or less than two years; and
(2) a fine of $10,000.
SECTION 5. Subchapter E, Chapter 2161, Government Code, is
amended by adding Section 2161.232 to read as follows:
Sec. 2161.232. INVESTIGATION ACCOUNT. (a) The
historically underutilized business investigation account is a
separate account in the general revenue fund.
(b) The account consists of 50 percent of the amount of
money collected from fines imposed under Section 2161.231(b)(2).
(c) Money in the account may be appropriated only to the
commission for the purpose of investigations by the commission into
whether a business qualifies as a historically underutilized
business.
SECTION 6. Section 6.03(b), Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended to read as follows:
(b) When the commission receives a plan for the security of
a racetrack facility, or a copy of a management, concession, or
totalisator contract for review under Subdivision (11) of
Subsection (a) of this section, the commission shall review the
contract or security plan in an executive session. Documents
submitted to the commission under this section by an applicant are
subject to discovery in a suit brought under this Act but are not
public records and are not subject to Chapter 552, Government Code
[424, Acts of the 63rd Legislature, Regular Session, 1973 (Article
6252-17a, Vernon's Texas Civil Statutes)]. In reviewing and
approving contracts under this subsection, the commission shall
attempt to award contracts to historically underutilized [ensure
the involvement of minority owned] businesses in an amount and
manner consistent with Chapter 2161, Government Code, and rules
adopted under that chapter [whenever possible].
SECTION 7. The following are repealed:
(1) Section 12.029, Agriculture Code;
(2) Section 55.03, Education Code;
(3) Sections 465.0081, 493.012, 1231.086, and
1232.104(c), Government Code; and
(4) Sections 161.131 and 161.132, Natural Resources
Code.
SECTION 8. This Act takes effect September 1, 2003.
SECTION 9. (a) The change in law made by this Act to Section
2161.231(b), Government Code, applies only to an offense committed
on or after the effective date of this Act. For purposes of this
section, an offense was committed before the effective date of this
Act if any element of the offense occurs before that date.
(b) An offense committed before the effective date of this
Act is covered by Section 2161.231(b), Government Code, as it
existed when the offense was committed, and the former law is
continued in effect for that purpose.