1997-120-RES WHEREAS, STATE OF TEXAS IS A FUNDING PARTNER WITH THE COUNTY OF LAMAR AND COP

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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 socially disadvantaged persons who have a proportionate interest and activcly participate in the partnership's control, operation, and management; D. a joint venurre in which each entity in the venture is a historically underutiIized business; or E. a supplier contract between a historically underutilized business 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. "Socially disadvantaged person" is defmed in Texas Government Code ~2161.001(3) as ". . . a person who is socially disadvantaged because of the person's identification as a member of a certain group, including Black Americans, Hispanic Americans, women, Asian Pacific Americans and Native Americans, and who has suffered the effects of discriminatory practices or other similar insidious circumstances over which the person has no control. " A HUB is defmed in the General Appropriations Act, 75th Legislature, Regular Session, ARTICLE IX, General Provisions, Section 124. Contracting with Historically Underutilized Businesses, Subsection 3, in the same manner except that "socially disadvantaged person" is replaced with the term "economically disadvantaged person." The term "economically disadvantaged person is defmed in the General Appropriations Act as " . . . a person who is economically disadvantaged because of the person's identification as a member of certain groups, including Black Americans. Hispanic Americans, women, Asian Americans and Native Americans, and who has suffered the effects of discriminatory practices or other similar insidious circumstances over which the person has no control. " PERFORMING AGENCY agrees to make a good faith effort to subcontract with HUBs during the performance of its contract Attachment(s) with the RECEIVING AGENCY and will report HUB subcontract activity on a quarterly basis to RECEIVING AGENCY. ARTICLE 26. Sanctions PERFORMING AGENCY agrees and understands that sanctions may be imposed by RECEIVING AGENCY both for programmatic and fmancial noncompliance. RECEIVING AGENCY may, at its own discretion, impose one or more sanctions for each item of noncompliance and will determine sanctions on a case-by-case basis. Both parties agree that a state or federal statute, rule, regulation, or federal guideline will prevail over the provisions of this Article unless the statute, rule, regulation, or guideline can be read together with the provision(s) of this Article to give effect to both. RECEIVING AGENCY may: A. terminate all or a part of the contract. Termination is the permanent withdrawal of the PERFORMING AGENCY's authority to obligate previously awarded funds before that authority would otherwise expire, or the voluntary relinquishment by the PERFORMING AGENCY to obligate previously awarded funds. PERFORMING AGENCY costs resulting from obligations incurred by the PERFORMING AGENCY after termination of an award are not allowable unless expressly authorized by the notice of termination; B. suspend all or part of the contract. Suspcnsion is thc temporary withdrawal of the PERFORMING AGENCY's authority to obligate funds pending compliance by the PERFORMING AGENCY or its subcontractor(s) or pending a decision to terminate or modify the contract. PERFORMING AGENCY costs resulting from obligations incurred by the PERFORMING AGENCY during a suspension are not allowable unless expressly authorized by the notice of suspension; C. temporarily or permanently withhold cash payments. Withholding of cash payment means that the RECEIVING AGENCY retains funds claimed by the PERFORMING AGENCY in order to: a) recover (LHS) 1998 GENERAL PROVISIONS - Page 14 (8/97)