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.
    1-4        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:
    6-4  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:
  13-16  (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.