By Van de Putte H.B. No. 2312
75R3669 BEM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Small Business Advocacy Office
1-3 within the Texas Department of Commerce.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 481, Government Code, is amended by
1-6 adding Subchapter BB to read as follows:
1-7 SUBCHAPTER BB. SMALL BUSINESS ADVOCACY OFFICE
1-8 Sec. 481.391. DEFINITIONS. In this subchapter:
1-9 (1) "Chief advocate" means the chief small business
1-10 advocate.
1-11 (2) "Office" means the office of small business
1-12 advocacy.
1-13 (3) "Small business" means a legal entity, including a
1-14 corporation, partnership, or sole proprietorship that:
1-15 (A) is formed for the purpose of making a
1-16 profit;
1-17 (B) is independently owned and operated; and
1-18 (C) has:
1-19 (i) fewer than 100 employees; or
1-20 (ii) less than $1 million in annual gross
1-21 receipts.
1-22 Sec. 481.392. OFFICE OF SMALL BUSINESS ADVOCACY. The office
1-23 of small business advocacy is created in the department.
1-24 Sec. 481.393. CHIEF SMALL BUSINESS ADVOCATE. (a) The
2-1 office shall be headed by a chief small business advocate appointed
2-2 by the governor with the advice and consent of the senate. The
2-3 chief advocate serves a two-year term expiring June 1 of each
2-4 odd-numbered year.
2-5 (b) To be eligible to serve as the chief advocate, a person
2-6 must have demonstrated a strong commitment to and involvement in
2-7 small business efforts.
2-8 Sec. 481.394. PRIMARY DUTIES. The office shall:
2-9 (1) examine the role of small businesses in the Texas
2-10 economy and the contributions that small businesses can make in
2-11 improving competition, encouraging economic and social mobility for
2-12 all residents in this state, expanding employment opportunities,
2-13 increasing productivity, promoting exports, and stimulating
2-14 innovation and entrepreneurship;
2-15 (2) measure the direct costs and other effects of
2-16 government regulation on small businesses and may make
2-17 recommendations to the legislature regarding eliminating excessive
2-18 or unnecessary regulations of small businesses;
2-19 (3) assist a state agency in determining the impact a
2-20 proposed rule of the agency has on small businesses as required by
2-21 Section 2006.002 and assist the agency in reducing the adverse
2-22 effect the rule has on small businesses, if appropriate;
2-23 (4) review all proposed legislation affecting small
2-24 businesses and provide the legislature with a small business impact
2-25 statement;
2-26 (5) assess the effectiveness of existing state
2-27 programs for small businesses and the feasibility of reducing the
3-1 emphasis the state has placed on those programs and increasing the
3-2 emphasis on general assistance programs designed to benefit all
3-3 small businesses;
3-4 (6) determine the impact of the tax structure on small
3-5 businesses and make legislative and other proposals for altering
3-6 the tax structure to enable each small business to contribute to
3-7 the extent of the business' potential to the improvement of the
3-8 economic well-being of this state;
3-9 (7) study the ability of financial markets and
3-10 institutions to meet small business credit and investment needs;
3-11 (8) determine the availability of financial and other
3-12 resources to small businesses and recommend methods of increasing
3-13 the availability of financial assistance and other resources to
3-14 small businesses, including methods for:
3-15 (A) securing equity capital;
3-16 (B) generating markets for the goods and
3-17 services of small businesses;
3-18 (C) providing more effective business education
3-19 and training and management and technical assistance; and
3-20 (D) providing assistance in complying with
3-21 federal, state, and local law;
3-22 (9) make recommendations and suggestions as necessary
3-23 to assist the development of and to strengthen small businesses
3-24 owned by women and minorities and other small businesses;
3-25 (10) recommend specific measures for creating an
3-26 environment in which all small businesses will have the opportunity
3-27 to compete effectively and expand to their full potential and to
4-1 ascertain the common reasons, if any, for small business successes
4-2 and failures; and
4-3 (11) determine the feasibility of developing a set of
4-4 rational, objective criteria to be used to define a small business
4-5 and to develop the criteria, if feasible.
4-6 Sec. 481.395. ADDITIONAL DUTIES. In addition to the
4-7 office's primary duties under Section 481.394, the office shall:
4-8 (1) serve as a focal point for the receipt of
4-9 complaints, criticisms, and suggestions concerning state government
4-10 policies and activities that affect small businesses;
4-11 (2) counsel small businesses on how to resolve
4-12 questions and problems concerning the relationship of small
4-13 businesses and state government;
4-14 (3) develop proposals for changes in the policies and
4-15 activities of any state agency that will better serve the purposes
4-16 of this subchapter and communicate those proposals to the
4-17 appropriate state agency;
4-18 (4) present the views and interests of small
4-19 businesses to state agencies, the policies and activities of which
4-20 may affect small businesses; and
4-21 (5) enlist the cooperation and assistance of public
4-22 and private agencies, businesses, and other organizations in
4-23 disseminating information about the programs and services provided
4-24 by the state that benefit small businesses and how small businesses
4-25 can participate in or make use of those programs and services.
4-26 Sec. 481.396. RULES AFFECTING SMALL BUSINESSES. (a) On
4-27 receiving notice of a proposed rule affecting small businesses, the
5-1 office shall notify affected small businesses of the proposed rule
5-2 through business or trade associations. The notice must include
5-3 the substance of the proposed rule and the time, place, and manner
5-4 in which interested parties may present their views and comments on
5-5 the proposed rule.
5-6 (b) The office may:
5-7 (1) coordinate with agencies to consolidate and
5-8 simplify rules, compliance requirements, and reporting requirements
5-9 of state agencies that affect small businesses; and
5-10 (2) recommend the elimination, consolidation, or
5-11 amendment of existing rules that have a disproportionately adverse
5-12 effect on small businesses.
5-13 (c) The office may comment at any public hearing concerning
5-14 the proposed rule and the effect of the proposed rule on small
5-15 businesses.
5-16 Sec. 481.397. STAFF AND POWERS OF OFFICE OF SMALL BUSINESS
5-17 ADVOCACY. In administering this subchapter, the chief advocate
5-18 may:
5-19 (1) employ and set the compensation of personnel to
5-20 carry out the office's functions under this subchapter;
5-21 (2) consult with:
5-22 (A) experts and authorities in the fields of
5-23 small business investment, venture capital, investment and
5-24 commercial banking, and other methods of financing;
5-25 (B) individuals with regulatory, legal,
5-26 economic, or financial expertise, including members of the academic
5-27 community; and
6-1 (C) individuals who represent the public
6-2 interest; and
6-3 (3) hold public hearings.
6-4 Sec. 481.398. ASSISTANCE OF GOVERNMENT AGENCIES. Each
6-5 department, agency, and instrumentality of state government is
6-6 authorized and directed to furnish to the chief advocate reports
6-7 and other information that is necessary to carry out the functions
6-8 of this subchapter.
6-9 Sec. 481.399. REPORTS. The chief advocate from time to time
6-10 may prepare and publish reports. Not later than September 1, 1998,
6-11 the chief advocate shall transmit to the legislature and the
6-12 governor a full report containing findings and specific
6-13 recommendations with respect to each of the functions referred to
6-14 in Section 481.395, including specific legislative proposals and
6-15 recommendations for administrative or other action.
6-16 Sec. 481.400. FUNDING. (a) The maximum amount that the
6-17 legislature may appropriate for salaries for the personnel of the
6-18 office is $200,000 annually. The maximum amount that the
6-19 legislature may appropriate to cover administrative expenses for
6-20 the office is $100,000 annually.
6-21 (b) The office may accept gifts, grants, and donations from
6-22 sources other than the state for the purpose of performing specific
6-23 projects, studies, or procedures or to provide assistance to small
6-24 businesses.
6-25 SECTION 2. Section 481.103(a), Government Code, is amended
6-26 to read as follows:
6-27 (a) The office shall:
7-1 (1) examine the role of small and historically
7-2 underutilized businesses in the state's economy and the
7-3 contribution of small and historically underutilized businesses in
7-4 generating economic activity, expanding employment opportunities,
7-5 promoting exports, stimulating innovation and entrepreneurship, and
7-6 bringing new and untested products and services to the marketplace;
7-7 (2) [serve as the principal advocate in the state on
7-8 behalf of small and historically underutilized businesses and
7-9 provide advice in the consideration of administrative requirements
7-10 and legislation that affect small and historically underutilized
7-11 businesses;]
7-12 [(3)] evaluate the effectiveness of efforts of state
7-13 agencies and other entities to assist small and historically
7-14 underutilized businesses and make appropriate recommendations to
7-15 assist the development and strengthening of small and historically
7-16 underutilized businesses;
7-17 (3) [(4)] identify specific instances in which
7-18 regulations inhibit small and historically underutilized business
7-19 development and to the extent possible identify conflicting state
7-20 policy goals;
7-21 (4) [(5)] determine the availability of financial and
7-22 other resources to small and historically underutilized businesses
7-23 and recommend methods for:
7-24 (A) increasing the availability of equity
7-25 capital and other forms of financial assistance to small and
7-26 historically underutilized businesses;
7-27 (B) generating markets for the goods and
8-1 services of small and historically underutilized businesses;
8-2 (C) providing more effective education,
8-3 training, and management and technical assistance to small and
8-4 historically underutilized businesses; and
8-5 (D) providing assistance to small and
8-6 historically underutilized businesses in complying with federal,
8-7 state, and local laws;
8-8 (5) [(6) describe the reasons for small and
8-9 historically underutilized business successes and failures,
8-10 ascertain the related factors that are particularly important in
8-11 this state, and recommend actions for increasing the success rate
8-12 of small and historically underutilized businesses;]
8-13 [(7) serve as a focal point for receiving complaints
8-14 and suggestions concerning state government policies and activities
8-15 that affect small and historically underutilized businesses;]
8-16 [(8) assist with the resolution of problems among
8-17 state agencies and small and historically underutilized businesses;]
8-18 [(9) develop and advocate proposals for changes in
8-19 state policies and activities that adversely affect small and
8-20 historically underutilized businesses;]
8-21 [(10) provide to legislative committees and state
8-22 agencies information on the effects of proposed policies or actions
8-23 that affect small and historically underutilized businesses;]
8-24 [(11)] enlist the assistance of public and private
8-25 agencies, businesses, and other organizations in disseminating
8-26 information about state programs and services that benefit small
8-27 and historically underutilized businesses and information regarding
9-1 means by which small and historically underutilized businesses can
9-2 use those programs and services;
9-3 (6) [(12)] provide information and assistance relating
9-4 to establishing, operating, or expanding small and historically
9-5 underutilized businesses;
9-6 (7) [(13)] establish and operate a statewide toll-free
9-7 telephone service providing small and historically underutilized
9-8 businesses with ready access to the services offered by the office;
9-9 (8) [(14)] assist small and historically underutilized
9-10 businesses by:
9-11 (A) identifying:
9-12 (i) sources of financial assistance for
9-13 those businesses; and
9-14 (ii) financial barriers to those
9-15 businesses;
9-16 (B) establishing financing programs for those
9-17 businesses that aid in overcoming financial barriers;
9-18 (C) matching those businesses with sources of
9-19 financial assistance; and
9-20 (D) assisting those businesses with the
9-21 preparation of applications for loans from governmental or private
9-22 sources;
9-23 (9) [(15)] sponsor meetings, to the extent practicable
9-24 in cooperation with public and private educational institutions, to
9-25 provide training and disseminate information beneficial to small
9-26 and historically underutilized businesses;
9-27 (10) [(16)] assist small and historically
10-1 underutilized businesses in their dealings with federal, state, and
10-2 local governmental agencies and provide information regarding
10-3 governmental requirements affecting small and historically
10-4 underutilized businesses;
10-5 (11) [(17) perform research, studies, and analyses of
10-6 matters affecting the interests of small and historically
10-7 underutilized businesses;]
10-8 [(18) develop and implement programs to encourage
10-9 governmental agencies, public sector business associations, and
10-10 other organizations to provide useful services to small and
10-11 historically underutilized businesses;]
10-12 [(19)] use available resources within the state, such
10-13 as small business development centers, educational institutions,
10-14 and nonprofit associations, to coordinate the provision of
10-15 management and technical assistance to small and historically
10-16 underutilized businesses in a systematic manner;
10-17 (12) [(20)] publish newsletters, brochures, and other
10-18 documents containing information useful to small and historically
10-19 underutilized businesses;
10-20 (13) [(21)] identify successful small and historically
10-21 underutilized business assistance programs provided by other states
10-22 and determine the feasibility of adapting those programs for
10-23 implementation in this state;
10-24 (14) [(22)] establish an outreach program to make the
10-25 existence of the office known to small and historically
10-26 underutilized businesses and potential clients throughout the
10-27 state;
11-1 (15) [(23)] adopt rules necessary to carry out this
11-2 subchapter;
11-3 (16) [(24)] identify potential business opportunities
11-4 for small and historically underutilized businesses in the border
11-5 region and develop programs to maximize those opportunities;
11-6 (17) [(25)] identify potential business opportunities
11-7 for small and historically underutilized businesses in rural areas
11-8 of this state and develop programs to maximize those opportunities;
11-9 and
11-10 (18) [(26)] perform any other functions necessary to
11-11 carry out the purposes of this subchapter.
11-12 SECTION 3. Section 2006.002, Government Code, is amended by
11-13 adding Subsections (f) and (g) to read as follows:
11-14 (f) To reduce the adverse impact of rules on micro
11-15 businesses, a state agency may adopt provisions concerning micro
11-16 businesses similar to those outlined in Subsection (b) for small
11-17 businesses.
11-18 (g) In this section, "micro business" means a legal entity,
11-19 including a corporation, partnership, or sole proprietorship that:
11-20 (1) is formed for the purpose of making a profit;
11-21 (2) is independently owned and operated; and
11-22 (3) has fewer than 20 employees or less than $1
11-23 million in annual gross receipts.
11-24 SECTION 4. This Act takes effect September 1, 1997. The
11-25 governor shall appoint a chief small business advocate as required
11-26 by Subchapter BB, Chapter 481, Government Code, as added by this
11-27 Act, not later than January 1, 1998.
12-1 SECTION 5. The importance of this legislation and the
12-2 crowded condition of the calendars in both houses create an
12-3 emergency and an imperative public necessity that the
12-4 constitutional rule requiring bills to be read on three several
12-5 days in each house be suspended, and this rule is hereby suspended.