By: Romo H.B. No. 2377 73R4207 MI-F 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 private lenders to select the 2-9 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 private lenders in order to obtain the 2-16 maximum use of money in the fund and to increase to the greatest 2-17 extent possible the availability of commercial loans to small 2-18 businesses for the purchase of air pollution control equipment and 2-19 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) "Program" means the small business air compliance 3-12 funding program. 3-13 (2) "Small business" means an independently owned and 3-14 operated business with not more than 100 employees and gross 3-15 receipts of less than $1 million a year. 3-16 SECTION 2. (a) A reference to the "board" in Section 3-17 382.0366, Health and Safety Code, as added by this Act, is a 3-18 reference to the Texas Air Control Board or its successor. 3-19 (b) This Act does not affect the transfer of the powers, 3-20 rights, duties, and obligations of the Texas Air Control Board to 3-21 the Texas Natural Resource Conservation Commission as provided by 3-22 Sections 1.086 and 1.087, Chapter 3, Acts of the 72nd Legislature, 3-23 1st Called Session, 1991. 3-24 SECTION 3. The importance of this legislation and the 3-25 crowded condition of the calendars in both houses create an 3-26 emergency and an imperative public necessity that the 3-27 constitutional rule requiring bills to be read on three several 4-1 days in each house be suspended, and this rule is hereby suspended, 4-2 and that this Act take effect and be in force from and after its 4-3 passage, and it is so enacted.