73R7536 MI-F
By Romo H.B. No. 2377
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the small business air compliance
1-3 funding program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 382, Health and Safety
1-6 Code, is amended by adding Section 382.0366 to read as follows:
1-7 Sec. 382.0366. SMALL BUSINESS AIR COMPLIANCE FUNDING
1-8 PROGRAM. (a) The board, with the advice of the compliance
1-9 advisory panel, shall establish and operate the small business air
1-10 compliance funding program. The purpose of the program is to help
1-11 small businesses comply with state air pollution control
1-12 regulations by encouraging commercial lending to small businesses
1-13 for the purchase of air pollution control equipment and to pay for
1-14 environmental audits through the provision of loans and loan
1-15 guarantees for those purchases and payments.
1-16 (b) The small business air compliance fund is in the state
1-17 treasury. The fund consists of appropriations made to the board
1-18 for purposes of this section, money received from the operation of
1-19 the program, gifts and grants from the federal government, local
1-20 governments, private corporations, or other persons for purposes of
1-21 the program, and interest earned on money in the fund. Money in
1-22 the fund may be used only for:
1-23 (1) loans to or loan guarantees for small businesses
1-24 to help them purchase or acquire additional financing for the
2-1 purchase of air pollution control equipment and to pay for
2-2 environmental audits; and
2-3 (2) administrative expenses related to the fund.
2-4 (c) Loans and loan guarantees under this section shall be
2-5 administered by a contractor selected by the board with the advice
2-6 of the compliance advisory panel. The board shall conduct a
2-7 competition by request for proposals among interested public
2-8 agencies, nonprofit organizations, or financial institutions to
2-9 select the contractor.
2-10 (d) The board may contract with the entity selected under
2-11 Subsection (c) to manage and administer loans and loan guarantees
2-12 according to board guidelines adopted under this section. The
2-13 contract shall require the use by the board and the contractor of
2-14 any available administrative assistance of other public agencies,
2-15 nonprofit organizations, or financial institutions in order to
2-16 obtain the maximum use of money in the fund and to increase to the
2-17 greatest extent possible the availability of commercial loans to
2-18 small businesses for the purchase of air pollution control
2-19 equipment and to pay for environmental audits.
2-20 (e) The board shall adopt rules to carry out the purposes of
2-21 this section, including rules governing:
2-22 (1) amounts and terms of and procedures for loans and
2-23 loan guarantees, repayment terms, security requirements, and
2-24 default and remedy provisions;
2-25 (2) procedures and criteria for selection of the
2-26 contractor;
2-27 (3) reporting requirements; and
3-1 (4) disbursement from and administration of the fund.
3-2 (f) The board shall report not later than March 1 of each
3-3 year to the governor, the lieutenant governor, and the speaker of
3-4 the house regarding the activities of the program. The report
3-5 shall include, at a minimum, the status of the fund, the number and
3-6 size of loans and loan guarantees made under the program, and
3-7 information regarding the type of business, ethnicity and gender of
3-8 ownership, and geographic distribution of businesses receiving
3-9 assistance under the program.
3-10 (g) In this section:
3-11 (1) "Financial institution" means an organization
3-12 authorized to do business under state or federal laws relating to
3-13 financial institutions, including a bank or trust company, savings
3-14 bank, building and loan association, savings and loan company or
3-15 association, or credit union.
3-16 (2) "Program" means the small business air compliance
3-17 funding program.
3-18 (3) "Small business" means an independently owned and
3-19 operated business with not more than 100 employees and net earnings
3-20 of less than $1 million a year computed as an average of the
3-21 immediately preceding three years. The term includes an
3-22 agricultural cooperative.
3-23 SECTION 2. (a) A reference to the "board" in Section
3-24 382.0366, Health and Safety Code, as added by this Act, is a
3-25 reference to the Texas Air Control Board or its successor.
3-26 (b) This Act does not affect the transfer of the powers,
3-27 rights, duties, and obligations of the Texas Air Control Board to
4-1 the Texas Natural Resource Conservation Commission as provided by
4-2 Sections 1.086 and 1.087, Chapter 3, Acts of the 72nd Legislature,
4-3 1st Called Session, 1991.
4-4 SECTION 3. The importance of this legislation and the
4-5 crowded condition of the calendars in both houses create an
4-6 emergency and an imperative public necessity that the
4-7 constitutional rule requiring bills to be read on three several
4-8 days in each house be suspended, and this rule is hereby suspended,
4-9 and that this Act take effect and be in force from and after its
4-10 passage, and it is so enacted.