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  -------------------------------------------------------------------