1-1 By: Romo (Senate Sponsor - Ellis) H.B. No. 2377 1-2 (In the Senate - Received from the House May 13, 1993; 1-3 May 14, 1993, read first time and referred to Committee on Natural 1-4 Resources; May 25, 1993, reported favorably by the following vote: 1-5 Yeas 6, Nays 0; May 25, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Sims x 1-9 Truan x 1-10 Armbrister x 1-11 Barrientos x 1-12 Bivins x 1-13 Brown x 1-14 Carriker x 1-15 Lucio x 1-16 Montford x 1-17 Ratliff x 1-18 Shelley x 1-19 A BILL TO BE ENTITLED 1-20 AN ACT 1-21 relating to the creation of the small business air compliance 1-22 funding program. 1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-24 SECTION 1. Subchapter B, Chapter 382, Health and Safety 1-25 Code, is amended by adding Section 382.0366 to read as follows: 1-26 Sec. 382.0366. SMALL BUSINESS AIR COMPLIANCE FUNDING 1-27 PROGRAM. (a) The board, with the advice of the compliance 1-28 advisory panel, shall establish and operate the small business air 1-29 compliance funding program. The purpose of the program is to help 1-30 small businesses comply with state air pollution control 1-31 regulations by encouraging commercial lending to small businesses 1-32 for the purchase of air pollution control equipment and to pay for 1-33 environmental audits through the provision of loans and loan 1-34 guarantees for those purchases and payments. 1-35 (b) The small business air compliance fund is in the state 1-36 treasury. The fund consists of appropriations made to the board 1-37 for purposes of this section, money received from the operation of 1-38 the program, gifts and grants from the federal government, local 1-39 governments, private corporations, or other persons for purposes of 1-40 the program, and interest earned on money in the fund. Money in 1-41 the fund may be used only for: 1-42 (1) loans to or loan guarantees for small businesses 1-43 to help them purchase or acquire additional financing for the 1-44 purchase of air pollution control equipment and to pay for 1-45 environmental audits; and 1-46 (2) administrative expenses related to the fund. 1-47 (c) Loans and loan guarantees under this section shall be 1-48 administered by a contractor selected by the board with the advice 1-49 of the compliance advisory panel. The board shall conduct a 1-50 competition by request for proposals among interested public 1-51 agencies, nonprofit organizations, or financial institutions to 1-52 select the contractor. 1-53 (d) The board may contract with the entity selected under 1-54 Subsection (c) to manage and administer loans and loan guarantees 1-55 according to board guidelines adopted under this section. The 1-56 contract shall require the use by the board and the contractor of 1-57 any available administrative assistance of other public agencies, 1-58 nonprofit organizations, or financial institutions in order to 1-59 obtain the maximum use of money in the fund and to increase to the 1-60 greatest extent possible the availability of commercial loans to 1-61 small businesses for the purchase of air pollution control 1-62 equipment and to pay for environmental audits. 1-63 (e) The board shall adopt rules to carry out the purposes of 1-64 this section, including rules governing: 1-65 (1) amounts and terms of and procedures for loans and 1-66 loan guarantees, repayment terms, security requirements, and 1-67 default and remedy provisions; 1-68 (2) procedures and criteria for selection of the 2-1 contractor; 2-2 (3) reporting requirements; and 2-3 (4) disbursement from and administration of the fund. 2-4 (f) The board shall report not later than March 1 of each 2-5 year to the governor, the lieutenant governor, and the speaker of 2-6 the house regarding the activities of the program. The report 2-7 shall include, at a minimum, the status of the fund, the number and 2-8 size of loans and loan guarantees made under the program, and 2-9 information regarding the type of business, ethnicity and gender of 2-10 ownership, and geographic distribution of businesses receiving 2-11 assistance under the program. 2-12 (g) In this section: 2-13 (1) "Financial institution" means an organization 2-14 authorized to do business under state or federal laws relating to 2-15 financial institutions, including a bank or trust company, savings 2-16 bank, building and loan association, savings and loan company or 2-17 association, or credit union. 2-18 (2) "Program" means the small business air compliance 2-19 funding program. 2-20 (3) "Small business" means an independently owned and 2-21 operated business with not more than 100 employees and net earnings 2-22 of less than $1 million a year computed as an average of the 2-23 immediately preceding three years. The term includes an 2-24 agricultural cooperative. 2-25 SECTION 2. (a) A reference to the "board" in Section 2-26 382.0366, Health and Safety Code, as added by this Act, is a 2-27 reference to the Texas Air Control Board or its successor. 2-28 (b) This Act does not affect the transfer of the powers, 2-29 rights, duties, and obligations of the Texas Air Control Board to 2-30 the Texas Natural Resource Conservation Commission as provided by 2-31 Sections 1.086 and 1.087, Chapter 3, Acts of the 72nd Legislature, 2-32 1st Called Session, 1991. 2-33 SECTION 3. The importance of this legislation and the 2-34 crowded condition of the calendars in both houses create an 2-35 emergency and an imperative public necessity that the 2-36 constitutional rule requiring bills to be read on three several 2-37 days in each house be suspended, and this rule is hereby suspended, 2-38 and that this Act take effect and be in force from and after its 2-39 passage, and it is so enacted. 2-40 * * * * * 2-41 Austin, 2-42 Texas 2-43 May 25, 1993 2-44 Hon. Bob Bullock 2-45 President of the Senate 2-46 Sir: 2-47 We, your Committee on Natural Resources to which was referred H.B. 2-48 No. 2377, have had the same under consideration, and I am 2-49 instructed to report it back to the Senate with the recommendation 2-50 that it do pass and be printed. 2-51 Sims, 2-52 Chairman 2-53 * * * * * 2-54 WITNESSES 2-55 FOR AGAINST ON 2-56 ___________________________________________________________________ 2-57 Name: Michael White x 2-58 Representing: Greater Houston Partnership 2-59 City: Houston 2-60 ------------------------------------------------------------------- 2-61 FOR AGAINST ON 2-62 ___________________________________________________________________ 2-63 Name: Mary Miksa x 2-64 Representing: Texas Assoc. of Business 2-65 City: Austin 2-66 ------------------------------------------------------------------- 2-67 Name: Tamra-Shae Oatman x 2-68 Representing: Texas Air Control Board 2-69 City: Austin 2-70 ------------------------------------------------------------------- 3-1 Name: Scott Royder x 3-2 Representing: Sierra Club 3-3 City: Austin 3-4 ------------------------------------------------------------------- 3-5 Name: Wade Thomason x 3-6 Representing: American Lung Assoc. 3-7 City: Austin 3-8 -------------------------------------------------------------------