| 1 | 1 | | 85R9026 CLG-D |
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| 2 | 2 | | By: Miles S.B. No. 795 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to use of the money from the Texas Enterprise Fund to |
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| 8 | 8 | | benefit certain historically underutilized businesses. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 481.078, Government Code, is amended by |
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| 11 | 11 | | adding Subsections (m), (n), and (o) to read as follows: |
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| 12 | 12 | | (m) To encourage the development and location of |
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| 13 | 13 | | historically underutilized businesses in this state, the governor |
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| 14 | 14 | | shall make grants from the fund: |
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| 15 | 15 | | (1) to recipients that are historically underutilized |
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| 16 | 16 | | businesses in this state that commit to using the grants to create |
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| 17 | 17 | | additional jobs; or |
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| 18 | 18 | | (2) to recipients that are historically underutilized |
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| 19 | 19 | | businesses from outside the state that commit to relocate to this |
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| 20 | 20 | | state. |
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| 21 | 21 | | (n) The governor shall ensure, to the extent there are a |
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| 22 | 22 | | sufficient number of qualified applicants described by Subsection |
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| 23 | 23 | | (m), that the percentage of the total dollar amount of grants |
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| 24 | 24 | | awarded each state fiscal year to recipients described by that |
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| 25 | 25 | | subsection is not less than the percentage of the total dollar |
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| 26 | 26 | | amount of contracts awarded by state agencies to historically |
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| 27 | 27 | | underutilized businesses, as defined by Section 2161.001, during |
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| 28 | 28 | | the applicable state fiscal year as reported by the comptroller in |
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| 29 | 29 | | the consolidated report required under Section 2161.121. |
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| 30 | 30 | | (o) For purposes of this section: |
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| 31 | 31 | | (1) "Historically underutilized business" means: |
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| 32 | 32 | | (A) a corporation formed for the purpose of |
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| 33 | 33 | | making a profit in which 51 percent or more of all classes of the |
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| 34 | 34 | | shares of stock or other equitable securities are owned by one or |
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| 35 | 35 | | more economically disadvantaged persons who have a proportionate |
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| 36 | 36 | | interest and actively participate in the corporation's control, |
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| 37 | 37 | | operation, and management; |
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| 38 | 38 | | (B) a sole proprietorship created for the purpose |
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| 39 | 39 | | of making a profit that is completely owned, operated, and |
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| 40 | 40 | | controlled by an economically disadvantaged person; |
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| 41 | 41 | | (C) a partnership formed for the purpose of |
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| 42 | 42 | | making a profit in which 51 percent or more of the assets and |
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| 43 | 43 | | interest in the partnership are owned by one or more economically |
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| 44 | 44 | | disadvantaged persons who have a proportionate interest and |
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| 45 | 45 | | actively participate in the partnership's control, operation, and |
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| 46 | 46 | | management; or |
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| 47 | 47 | | (D) a joint venture in which each entity in the |
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| 48 | 48 | | venture is a historically underutilized business, as determined |
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| 49 | 49 | | under another paragraph of this subdivision. |
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| 50 | 50 | | (2) "Economically disadvantaged person" has the |
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| 51 | 51 | | meaning assigned by Section 2161.001. |
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| 52 | 52 | | SECTION 2. This Act takes effect immediately if it receives |
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| 53 | 53 | | a vote of two-thirds of all the members elected to each house, as |
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| 54 | 54 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 55 | 55 | | Act does not receive the vote necessary for immediate effect, this |
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| 56 | 56 | | Act takes effect September 1, 2017. |
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