By: Smith, A. H.B. No. 992
73R858 CAE-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation of the Texas Department of Commerce.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 481.003, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 481.003. Sunset Provision. The Texas Department of
1-7 Commerce is subject to Chapter 325 (Texas Sunset Act). Unless
1-8 continued in existence as provided by that chapter, the department
1-9 is abolished and this chapter expires September 1, 2001 <1993>.
1-10 SECTION 2. Section 481.004, Government Code, is amended by
1-11 adding Subsection (e) to read as follows:
1-12 (e) A person is not eligible for appointment as a public
1-13 member of the policy board if the person or the person's spouse:
1-14 (1) is employed by or participates in the management
1-15 of a business entity that receives funds from the department;
1-16 (2) owns or controls, directly or indirectly, more
1-17 than a 10 percent interest in a business entity or other
1-18 organization that receives funds from the department; or
1-19 (3) uses or receives a substantial amount of tangible
1-20 goods, services, or funds from the department, other than
1-21 compensation or reimbursement authorized by law for policy board
1-22 membership, attendance, or expenses.
1-23 SECTION 3. Section 481.0041(a), Government Code, is amended
1-24 to read as follows:
2-1 (a) It is a ground for removal from the policy board if a
2-2 member:
2-3 (1) does not have at the time of appointment the
2-4 qualifications required by Section 481.004;
2-5 (2) does not maintain during service on the policy
2-6 board the qualifications required by Section 481.004;
2-7 (3) violates a prohibition established by Section
2-8 481.0042;
2-9 (4) <(2)> cannot discharge the member's duties for a
2-10 substantial part of the term for which the member is appointed
2-11 because of illness or disability; or
2-12 (5) <(3)> is absent from more than half of the
2-13 regularly scheduled policy board meetings that the member is
2-14 eligible to attend during a calendar year unless the absence is
2-15 excused by majority vote of the policy board.
2-16 SECTION 4. Section 481.0044(a), Government Code, is amended
2-17 to read as follows:
2-18 (a) The policy board shall <may> adopt rules necessary for
2-19 the administration of department programs and may adopt rules for
2-20 its internal management and control.
2-21 SECTION 5. Section 481.005(d), Government Code, is amended
2-22 to read as follows:
2-23 (d) The members of the policy board shall establish policy,
2-24 adopt rules <that the policy board may adopt under law>, evaluate
2-25 the implementation of new legislation that affects the department's
2-26 duties, review and comment on the department's budget, prepare an
2-27 annual report of the department's activities, conduct
3-1 investigations and studies, and develop long-range plans for the
3-2 future goals and needs of the department. The members of the
3-3 policy board may not be involved in the daily operation of the
3-4 department. Except for duties related to the approval and issuance
3-5 of bonds by the department, the policy board may delegate to the
3-6 executive director the duties of the policy board under this
3-7 chapter and other law that are not covered by the description of
3-8 the members' duties under this subsection.
3-9 SECTION 6. Sections 481.010(f) and (g), Government Code, are
3-10 amended to read as follows:
3-11 (f) The executive director or the executive director's
3-12 designee shall prepare and maintain a written policy statement to
3-13 assure implementation of a program of equal employment opportunity
3-14 under which all personnel transactions are made without regard to
3-15 race, color, disability <handicap>, sex, religion, age, or national
3-16 origin. The policy statement must include:
3-17 (1) personnel policies, including policies relating to
3-18 recruitment, evaluation, selection, appointment, training, and
3-19 promotion of personnel that are in compliance with requirements of
3-20 the Commission on Human Rights;
3-21 (2) a comprehensive analysis of the department work
3-22 force that meets federal and state guidelines;
3-23 (3) procedures by which a determination can be made of
3-24 significant underuse <underutilization> in the department work
3-25 force of all persons for whom federal or state guidelines encourage
3-26 a more equitable balance; and
3-27 (4) reasonable methods to appropriately address those
4-1 areas of significant underuse <underutilization>.
4-2 (g) A policy statement prepared under Subsection (f) must
4-3 cover an annual period, be updated <at least> annually and reviewed
4-4 by the Commission on Human Rights for compliance with Subsection
4-5 (f)(1), and be filed with the governor's office.
4-6 SECTION 7. Section 481.011, Government Code, is amended to
4-7 read as follows:
4-8 Sec. 481.011. FISCAL REPORT. The executive director
4-9 <department> shall file annually with the governor and the
4-10 presiding officer of each house of the legislature a complete and
4-11 detailed written report accounting for all funds received and
4-12 disbursed by the department during the preceding fiscal year. The
4-13 annual report must be in the form and reported in the time provided
4-14 by the General Appropriations Act.
4-15 SECTION 8. Section 481.012, Government Code, is amended by
4-16 amending Subsection (c) and adding Subsection (d) to read as
4-17 follows:
4-18 (c) The policy board <department> shall prepare and maintain
4-19 a written plan that describes how a person who does not speak
4-20 English <or who has a physical, mental, or developmental
4-21 disability> can be provided reasonable access to the department's
4-22 programs. The policy board shall also comply with federal and
4-23 state laws for program and facility accessibility.
4-24 (d) The policy board by rule shall establish methods by
4-25 which consumers and service recipients are notified of the name,
4-26 mailing address, and telephone number of the department for the
4-27 purpose of directing complaints to the department.
5-1 SECTION 9. Section 481.021(b), Government Code, is amended
5-2 and redesignated as Subsections (b) and (c) to read as follows:
5-3 (b) Except as otherwise provided by this chapter, money paid
5-4 to the department under this chapter shall be deposited in the
5-5 state treasury.
5-6 (c) The department shall deposit contributions from private
5-7 sources in a separate fund kept and held in escrow and in trust by
5-8 the state treasurer for and on behalf of the department as funds
5-9 held outside the treasury under Section 404.073, and the money
5-10 contributed shall be used to carry out the purposes of the
5-11 department and, to the extent possible, the purposes specified by
5-12 the donors. The state treasurer may invest and reinvest the money,
5-13 pending its use, in the fund in investments authorized by law for
5-14 state funds that the state treasurer considers appropriate.
5-15 SECTION 10. Section 481.022, Government Code, is amended by
5-16 adding Subsection (c) to read as follows:
5-17 (c) The department is subject to the requirements of Article
5-18 13, State Purchasing and General Services Act (Article 601b,
5-19 Vernon's Texas Civil Statutes).
5-20 SECTION 11. Section 481.027(c), Government Code, is amended
5-21 to read as follows:
5-22 (c) The department shall maintain regional offices in
5-23 locations specified in the General Appropriations Act <maintain at
5-24 least one regional office in Europe, at least one regional office
5-25 in the Pacific Rim area, and at least one regional office in
5-26 Mexico. Each regional office may have one or more satellite
5-27 offices>.
6-1 SECTION 12. Subchapter B, Chapter 481, Government Code, is
6-2 amended by adding Section 481.028 to read as follows:
6-3 Sec. 481.028. MEMORANDUM OF UNDERSTANDING WITH OTHER STATE
6-4 AGENCIES. (a) The department shall initiate negotiations for and
6-5 enter into a memorandum of understanding with any other state
6-6 agency involved in economic development to cooperate in program
6-7 planning and budgeting.
6-8 (b) The department shall enter into an agreement as required
6-9 by Subsection (a) with the:
6-10 (1) Department of Agriculture regarding each agency's
6-11 international marketing efforts and business finance programs;
6-12 (2) Texas Employment Commission, Texas Higher
6-13 Education Coordinating Board, and Central Education Agency
6-14 regarding each agency's work force development efforts and literacy
6-15 programs;
6-16 (3) General Land Office regarding each agency's
6-17 promotion of alternative energy resources and rural economic
6-18 development efforts;
6-19 (4) Texas Department of Housing and Community Affairs
6-20 regarding each agency's community development programs; and
6-21 (5) Texas Department of Transportation and Parks and
6-22 Wildlife Department regarding each agency's efforts to promote
6-23 tourism.
6-24 (c) The memorandum of understanding between the department
6-25 and the other state agency shall be adopted as a rule of each
6-26 department or agency.
6-27 SECTION 13. Subchapter B, Chapter 481, Government Code, is
7-1 amended by adding Section 481.029 to read as follows:
7-2 Sec. 481.029. COST RECOVERY. The department shall recover
7-3 the cost of providing direct technical assistance and management
7-4 training services to businesses and communities when reasonable and
7-5 practical.
7-6 SECTION 14. Subchapter F, Chapter 481, Government Code, is
7-7 amended by adding Section 481.0831 to read as follows:
7-8 Sec. 481.0831. OFFICE OF RURAL AFFAIRS. (a) The department
7-9 shall maintain an office of rural affairs.
7-10 (b) The office shall:
7-11 (1) implement the programs established under this
7-12 subchapter; and
7-13 (2) address the special needs of rural communities and
7-14 businesses and assist those communities and businesses.
7-15 SECTION 15. Section 481.084(a), Government Code, is amended
7-16 to read as follows:
7-17 (a) The department may <shall use money in the fund to>
7-18 guarantee not more than 90 percent of a loan made by a private
7-19 lender or to make loans to fund a project. For each guarantee the
7-20 department shall determine:
7-21 (1) that the project is located in a rural area;
7-22 (2) the amount of equity the user must pledge or apply
7-23 to the establishment of the project;
7-24 (3) the fees charged by the department, including
7-25 guarantee or loan fees, application fees, annual fees, and any
7-26 other costs associated with the loan guarantee or loan, as
7-27 necessary to fund the administration of this subchapter;
8-1 (4) the maximum and minimum guarantee or loan amounts,
8-2 if applicable;
8-3 (5) the permissible interest rates and amortization
8-4 requirements for a guaranteed loan or loan, as agreed on by the
8-5 private lender, the user, and the department;
8-6 (6) the acceptable security for the department's
8-7 participation in a project; and
8-8 (7) any other terms or conditions relating to a
8-9 guarantee or loan.
8-10 SECTION 16. Subchapter F, Chapter 481, Government Code, is
8-11 amended by adding Section 481.0842 to read as follows:
8-12 Sec. 481.0842. GUARANTEE-TO-RESERVE RATIO. (a) The
8-13 department may guarantee loans as provided by Section 481.084 in an
8-14 amount that exceeds the amount available in the fund. Loan
8-15 guarantees may not exceed the guarantee-to-reserve ratio set by the
8-16 policy board under Subsection (b).
8-17 (b) The policy board by rule shall adopt a
8-18 guarantee-to-reserve ratio that determines the amount of loan
8-19 guarantees that may be made that exceed the amount available in the
8-20 fund. The ratio of guarantees to the amount of money available in
8-21 the fund may not exceed two to one.
8-22 (c) The policy board shall review the guarantee-to-reserve
8-23 ratio annually and adjust the ratio as appropriate. In reviewing
8-24 the guarantee-to-reserve ratio, the policy board shall consider the
8-25 payment experience of the loans and any recommendations of the
8-26 state auditor as provided by Subsection (d).
8-27 (d) The state auditor shall review the loan guarantee
9-1 program and payment activity and make recommendations based on that
9-2 review to the policy board about the program and the
9-3 guarantee-to-reserve ratio. A recommendation to the policy board
9-4 shall be made not later than September 1 of each year.
9-5 SECTION 17. Section 481.103(a), Government Code, is amended
9-6 to read as follows:
9-7 (a) The office shall:
9-8 (1) examine the role of small and disadvantaged
9-9 businesses in the state's economy and the contribution of small and
9-10 disadvantaged businesses in generating economic activity, expanding
9-11 employment opportunities, promoting exports, stimulating innovation
9-12 and entrepreneurship, and bringing new and untested products and
9-13 services to the marketplace;
9-14 (2) serve as the principal advocate in the state on
9-15 behalf of small and disadvantaged businesses and provide advice in
9-16 the consideration of administrative requirements and legislation
9-17 that affect small and disadvantaged businesses;
9-18 (3) evaluate the effectiveness of efforts of state
9-19 agencies and other entities to assist small and disadvantaged
9-20 businesses and make appropriate recommendations to assist the
9-21 development and strengthening of small and disadvantaged business
9-22 enterprise;
9-23 (4) identify specific instances in which regulations
9-24 inhibit small and disadvantaged business development and to the
9-25 extent possible identify conflicting state policy goals;
9-26 (5) determine the availability of financial and other
9-27 resources to small and disadvantaged businesses and recommend
10-1 methods for:
10-2 (A) increasing the availability of equity
10-3 capital and other forms of financial assistance to small and
10-4 disadvantaged businesses;
10-5 (B) generating markets for the goods and
10-6 services of small and disadvantaged businesses;
10-7 (C) providing more effective education,
10-8 training, and management and technical assistance to small and
10-9 disadvantaged businesses; and
10-10 (D) providing assistance to small and
10-11 disadvantaged businesses in complying with federal, state, and
10-12 local laws;
10-13 (6) describe the reasons for small and disadvantaged
10-14 business successes and failures, ascertain the related factors that
10-15 are particularly important in this state, and recommend actions for
10-16 increasing the success rate of small and disadvantaged businesses;
10-17 (7) serve as a focal point for receiving complaints
10-18 and suggestions concerning state government policies and activities
10-19 that affect small and disadvantaged businesses;
10-20 (8) assist with the resolution of problems among state
10-21 agencies and small and disadvantaged businesses;
10-22 (9) develop and advocate proposals for changes in
10-23 state policies and activities that adversely affect small and
10-24 disadvantaged businesses;
10-25 (10) provide to legislative committees and state
10-26 agencies information on the effects of proposed policies or actions
10-27 that affect small and disadvantaged businesses;
11-1 (11) enlist the assistance of public and private
11-2 agencies, businesses, and other organizations in disseminating
11-3 information about state programs and services that benefit small
11-4 and disadvantaged businesses and information regarding means by
11-5 which small and disadvantaged businesses can use those programs and
11-6 services;
11-7 (12) provide information and assistance relating to
11-8 establishing, operating, or expanding small and disadvantaged
11-9 businesses;
11-10 (13) establish and operate a statewide toll-free
11-11 telephone service providing small and disadvantaged businesses with
11-12 ready access to the services offered by the office;
11-13 (14) assist small and disadvantaged businesses by:
11-14 (A) identifying:
11-15 (i) <identify> sources of financial
11-16 assistance for those <small and disadvantaged> businesses; and
11-17 (ii) financial barriers to those
11-18 businesses;
11-19 (B) establishing financing programs for those
11-20 businesses that aid in overcoming financial barriers;
11-21 (C) matching those<, match small and
11-22 disadvantaged> businesses with sources of financial assistance;<,>
11-23 and
11-24 (D) assisting those <assist small and
11-25 disadvantaged> businesses with the preparation of applications for
11-26 loans from governmental or private sources;
11-27 (15) sponsor meetings, to the extent practicable in
12-1 cooperation with public and private educational institutions, to
12-2 provide training and disseminate information beneficial to small
12-3 and disadvantaged businesses;
12-4 (16) assist small and disadvantaged businesses in
12-5 their dealings with federal, state, and local governmental agencies
12-6 and provide information regarding governmental requirements
12-7 affecting small and disadvantaged businesses;
12-8 (17) perform research, studies, and analyses of
12-9 matters affecting the interests of small and disadvantaged
12-10 businesses;
12-11 (18) develop and implement programs to encourage
12-12 governmental agencies, public sector business associations, and
12-13 other organizations to provide useful services to small and
12-14 disadvantaged businesses;
12-15 (19) use available resources within the state, such as
12-16 small business development centers, educational institutions, and
12-17 nonprofit associations, to coordinate the provision of management
12-18 and technical assistance to small and disadvantaged businesses in a
12-19 systematic manner;
12-20 (20) publish newsletters, brochures, and other
12-21 documents containing information useful to small and disadvantaged
12-22 businesses;
12-23 (21) identify successful small and disadvantaged
12-24 business assistance programs provided by other states and determine
12-25 the feasibility of adapting those programs for implementation in
12-26 this state;
12-27 (22) establish an outreach program to make the
13-1 existence of the office known to small and disadvantaged businesses
13-2 and potential clients throughout the state;
13-3 (23) adopt rules necessary to carry out this
13-4 subchapter;
13-5 (24) identify potential business opportunities for
13-6 small and disadvantaged businesses in the border region and develop
13-7 programs to maximize those opportunities;
13-8 (25) identify potential business opportunities for
13-9 small and disadvantaged businesses in rural areas of this state and
13-10 develop programs to maximize those opportunities; and
13-11 (26) perform any other functions necessary to carry
13-12 out the purposes of this subchapter.
13-13 SECTION 18. Subchapter L, Chapter 481, Government Code, is
13-14 amended by adding Section 481.174 to read as follows:
13-15 Sec. 481.174. ADVERTISEMENTS IN TOURISM PUBLICATIONS.
13-16 (a) The department may sell advertising space in promotional
13-17 travel literature.
13-18 (b) The policy board shall adopt rules to implement the sale
13-19 of advertisements under Subsection (a), including rules regulating:
13-20 (1) the cost of advertisements;
13-21 (2) the type of products or services that may be
13-22 advertised;
13-23 (3) the size of advertisements; and
13-24 (4) refunds on advertisements that are not run.
13-25 (c) Proceeds from the sale of advertisements shall be
13-26 deposited in the special account in the general revenue fund that
13-27 may be used for advertising and marketing activities of the
14-1 department as provided by Section 156.251, Tax Code.
14-2 SECTION 19. Section 8, Texas Enterprise Zone Act (Article
14-3 5190.7, Vernon's Texas Civil Statutes), is amended by adding
14-4 Subsection (i) to read as follows:
14-5 (i) Not later than December 1 of each year, the department
14-6 shall prepare an annual cost-benefit analysis of the program and
14-7 submit it to the state auditor for review and comment. The state
14-8 auditor shall review and comment on the analysis not later than
14-9 January 1 of each year. The state auditor shall submit the
14-10 analysis and the state auditor's comments to the governor, the
14-11 lieutenant governor, and the speaker of the house of
14-12 representatives for consideration in preparing appropriations and
14-13 determining the number of authorized enterprise project jobs.
14-14 SECTION 20. Sections 10(f) and (k), Texas Enterprise Zone
14-15 Act (Article 5190.7, Vernon's Texas Civil Statutes), are amended to
14-16 read as follows:
14-17 (f) The department shall allocate to each enterprise project
14-18 at the time of its designation a job ceiling number representing
14-19 the maximum number of new permanent jobs eligible to be included in
14-20 any calculation for a tax refund for the enterprise project. The
14-21 job ceiling number for a project may not exceed 625 or a number
14-22 equal to 110 percent of the number of new permanent jobs that a
14-23 qualified business in its application for designation commits to
14-24 create during the five-year term of its designation as an
14-25 enterprise project, whichever is less. The maximum number of new
14-26 permanent jobs or jobs that have been retained by an enterprise
14-27 project that may be allocated by the department among all
15-1 enterprise projects designated under this section shall be
15-2 determined in the General Appropriations Act <between August 31,
15-3 1991, and August 31, 1993, is 10,000>.
15-4 (k) The number of new permanent jobs or retained jobs that
15-5 have not been allocated before the end of a <each> state fiscal
15-6 year may be allocated in the subsequent fiscal year of the biennium
15-7 <years, except that an enterprise project may not be designated
15-8 after August 31, 1993>.
15-9 SECTION 21. Section 151.429(b), Tax Code, is amended to read
15-10 as follows:
15-11 (b) Subject to the limitations provided by Subsection (c) of
15-12 this section, an enterprise project qualifies for a refund of taxes
15-13 under this section of $2,000 for each new permanent job or job that
15-14 has been retained by <that> the enterprise project <provides> for a
15-15 qualified employee <during the period of its designation as an
15-16 enterprise project>.
15-17 SECTION 22. The Texas Job-Training Partnership Act (Article
15-18 4413(52), Vernon's Texas Civil Statutes) is amended by adding
15-19 Section 5A to read as follows:
15-20 Sec. 5A. RULES. The policy board of the Texas Department of
15-21 Commerce shall adopt necessary rules for the implementation and
15-22 management of the job-training program.
15-23 SECTION 23. Section 10, Texas Job-Training Partnership Act
15-24 (Article 4413(52), Vernon's Texas Civil Statutes), is amended to
15-25 read as follows:
15-26 Sec. 10. POLICY <RULES AND REGULATIONS>. The governor may
15-27 develop policies <in accordance with the Administrative Procedure
16-1 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
16-2 Statutes), prescribe such rules and regulations as> the governor
16-3 deems necessary to carry out the provisions of this Act and the
16-4 federal Act.
16-5 SECTION 24. Section 13.09, State Purchasing and General
16-6 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
16-7 amended to read as follows:
16-8 Sec. 13.09. Application. The state agencies subject to this
16-9 article are:
16-10 (1) the Texas Department of Mental Health and Mental
16-11 Retardation;
16-12 (2) the Texas Department of Human Services;
16-13 (3) the Texas Department of Criminal Justice;
16-14 (4) the Department of Agriculture;
16-15 (5) the Central Education Agency;
16-16 (6) the Texas Higher Education Coordinating Board;
16-17 (7) the Texas <State> Department of <Highways and
16-18 Public> Transportation; <and>
16-19 (8) the commission; and
16-20 (9) the Texas Department of Commerce.
16-21 SECTION 25. The Texas Department of Commerce's
16-22 responsibility for review under Article 13, State Purchasing and
16-23 General Services Act (Article 601b, Vernon's Texas Civil Statutes),
16-24 is limited to one definable activity during the first two years
16-25 this provision is in effect.
16-26 SECTION 26. (a) The state auditor shall perform the first
16-27 review of the rural economic loan guarantee program and payment
17-1 activity and make a recommendation to the Texas Department of
17-2 Commerce policy board regarding the program and the
17-3 guarantee-to-reserve ratio as required by Section 481.0842,
17-4 Government Code, as added by this Act, not later than December 1,
17-5 1993.
17-6 (b) The Texas Department of Commerce may guarantee loans in
17-7 an amount that exceeds the amount available in the Texas rural
17-8 economic development fund as provided by Section 481.0842,
17-9 Government Code, as added by this Act, beginning January 1, 1994.
17-10 SECTION 27. This Act takes effect September 1, 1993.
17-11 SECTION 28. On the effective date of this Act, a rule of the
17-12 executive director of the Texas Department of Commerce becomes a
17-13 rule of the policy board of the Texas Department of Commerce.
17-14 SECTION 29. The policy board of the Texas Department of
17-15 Commerce shall review and either adopt as a rule of the department
17-16 or repeal all policy issuances of the department regarding the
17-17 job-training program under the Texas Job-Training Partnership Act
17-18 (Article 4413(52), Vernon's Texas Civil Statutes) not later than
17-19 September 1, 1994. If a policy issuance has not been adopted as a
17-20 rule of the department on or before September 1, 1994, the policy
17-21 issuance is repealed. Until a policy issuance is adopted as a rule
17-22 of the department or repealed as provided by this section, the
17-23 policy issuance is a rule of the department.
17-24 SECTION 30. The importance of this legislation and the
17-25 crowded condition of the calendars in both houses create an
17-26 emergency and an imperative public necessity that the
17-27 constitutional rule requiring bills to be read on three several
18-1 days in each house be suspended, and this rule is hereby suspended.