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A BILL TO BE ENTITLED
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AN ACT
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relating to entities that qualify as historically underutilized |
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businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2161.001(2), Government Code, is amended |
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to read as follows: |
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(2) "Historically underutilized business" means an |
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entity: |
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(A) with its principal place of business in this |
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state that is: |
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(i) [(A)] a corporation formed for the |
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purpose of making a profit in which 51 percent or more of all |
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classes of the shares of stock or other equitable securities are |
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owned by one or more economically disadvantaged persons who have a |
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proportionate interest and actively participate in the |
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corporation's control, operation, and management; |
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(ii) [(B)] a sole proprietorship created |
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for the purpose of making a profit that is completely owned, |
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operated, and controlled by an economically disadvantaged person; |
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(iii) [(C)] a partnership formed for the |
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purpose of making a profit in which 51 percent or more of the assets |
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and interest in the partnership are owned by one or more |
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economically disadvantaged persons who have a proportionate |
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interest and actively participate in the partnership's control, |
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operation, and management; |
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(iv) [(D)] a joint venture in which each |
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entity in the venture is a historically underutilized business, as |
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determined under another subparagraph [paragraph] of this |
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paragraph [subdivision]; or |
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(v) [(E)] a supplier contract between a |
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historically underutilized business as determined under another |
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subparagraph [paragraph] of this paragraph [subdivision] and a |
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prime contractor under which the historically underutilized |
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business is directly involved in the manufacture or distribution of |
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the goods or otherwise warehouses and ships the goods; or |
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(B) with one or more places of business each |
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located in the unincorporated area of a county with a population of |
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60,000 or less. |
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SECTION 2. Section 2161.0015, Government Code, is amended |
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to read as follows: |
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Sec. 2161.0015. DETERMINING SIZE STANDARDS FOR |
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HISTORICALLY UNDERUTILIZED BUSINESSES. The comptroller |
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[commission] may establish size standards that a business may not |
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exceed if it is to be considered a historically underutilized |
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business under this chapter. In determining the size standards, |
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the comptroller [commission] shall determine the size at which: |
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(1) a business described by Section 2161.001(2)(A) |
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should be considered sufficiently large that the business probably |
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does not significantly suffer from the effects of past |
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discriminatory practices; or |
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(2) a business described by Section 2161.001(2)(B) |
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should be considered sufficiently large that the business probably |
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does not significantly suffer from the effects of geographic |
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location. |
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SECTION 3. Section 2161.125, Government Code, is amended to |
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read as follows: |
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Sec. 2161.125. CATEGORIZATION BY SEX, RACE, [AND] |
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ETHNICITY, AND GEOGRAPHIC LOCATION. The comptroller, in |
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cooperation with each state agency reporting under this subchapter, |
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shall categorize each historically underutilized business included |
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in a report under this subchapter by sex, race, [and] ethnicity, and |
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geographic location. |
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SECTION 4. This Act takes effect September 1, 2013. |