TITLE: Relating to entities that qualify as historically underutilized businesses.

SUMMARY: Relating to entities that qualify as historically underutilized businesses.

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