By Conley H.B. No. 805
74R2107 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 commission, with the advice of the compliance
1-9 advisory panel provided for under Section 382.0365, shall establish
1-10 and operate the small business air compliance funding program. The
1-11 purpose of the program is to help small businesses comply with
1-12 state air pollution control regulations by encouraging commercial
1-13 lending to small businesses for the purchase of air pollution
1-14 control equipment and to pay for environmental audits through the
1-15 provision of loan guarantees for those purchases and payments.
1-16 (b) The small business air compliance fund is an account in
1-17 the general revenue fund in the state treasury and is exempted from
1-18 Sections 403.094 and 403.095, Government Code. The account
1-19 consists of appropriations made to the commission for purposes of
1-20 this section, money received from the operation of the program,
1-21 gifts and grants from the federal government, local governments,
1-22 private corporations, or other persons for purposes of the program,
1-23 and interest earned on money in the account. Money in the account
1-24 may be used only for:
2-1 (1) loan guarantees to help small businesses purchase
2-2 or acquire additional financing for the purchase of air pollution
2-3 control equipment and to pay for environmental audits; and
2-4 (2) administrative expenses related to the account.
2-5 (c) Loan guarantees under this section shall be administered
2-6 by a contractor selected by the commission with the advice of the
2-7 compliance advisory panel. The commission shall conduct a
2-8 competition by request for proposals among interested public
2-9 agencies, nonprofit organizations, or financial institutions to
2-10 select the contractor.
2-11 (d) The commission may contract with the entity selected
2-12 under Subsection (c) to manage and administer loan guarantees
2-13 according to commission guidelines adopted under this section. The
2-14 contract shall require the use by the commission and the contractor
2-15 of any available administrative assistance of other public
2-16 agencies, nonprofit organizations, or financial institutions in
2-17 order to obtain the maximum use of money in the account and to
2-18 increase to the greatest extent possible the availability of
2-19 commercial loans to small businesses for the purchase of air
2-20 pollution control equipment and to pay for environmental audits.
2-21 (e) The commission shall adopt rules to carry out the
2-22 purposes of this section, including rules governing:
2-23 (1) amounts and terms of and procedures for loan
2-24 guarantees, repayment terms, security requirements, and default and
2-25 remedy provisions;
2-26 (2) procedures and criteria for selection of the
2-27 contractor;
3-1 (3) reporting requirements; and
3-2 (4) disbursement from and administration of the
3-3 account.
3-4 (f) The commission shall report not later than March 1 of
3-5 each year to the governor, the lieutenant governor, and the speaker
3-6 of the house regarding the activities of the program. The report
3-7 shall include, at a minimum:
3-8 (1) the status of the account;
3-9 (2) the number and size of loan guarantees made under
3-10 the program; and
3-11 (3) information about businesses receiving assistance
3-12 under the program, including the type of business, ethnicity and
3-13 sex of persons with ownership interests, and geographic
3-14 distribution.
3-15 (g) In this section:
3-16 (1) "Financial institution" means an organization
3-17 authorized to do business under state or federal laws relating to
3-18 financial institutions, including a bank or trust company, savings
3-19 bank, building and loan association, savings and loan company or
3-20 association, or credit union.
3-21 (2) "Program" means the small business air compliance
3-22 funding program.
3-23 (3) "Small business" means an independently owned and
3-24 operated business with not more than 100 employees and net earnings
3-25 of less than $1 million a year computed as an average of the
3-26 immediately preceding three years. The term includes an
3-27 agricultural cooperative.
4-1 SECTION 2. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended,
4-6 and that this Act take effect and be in force from and after its
4-7 passage, and it is so enacted.