By Raymond H.B. No. 2711 75R7243 MI-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the small business environmental 1-3 compliance 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 ENVIRONMENTAL COMPLIANCE 1-8 FUNDING PROGRAM. (a) The commission, with the advice of the 1-9 compliance advisory panel provided for under Section 382.0365, 1-10 shall establish and operate the small business environmental 1-11 compliance funding program. The purpose of the program is to help 1-12 small businesses comply with state environmental pollution control 1-13 regulations governing air pollution by encouraging commercial 1-14 lending to small businesses for the purchase of environmental 1-15 pollution control equipment or to pay for activities or services 1-16 that will facilitate compliance through the provision of loan 1-17 guarantees for those purchases. 1-18 (b) The small business environmental compliance fund is an 1-19 account in the general revenue fund in the state treasury. The 1-20 account consists of appropriations made to the commission for 1-21 purposes of this section, money received from the operation of the 1-22 program, gifts and grants from the federal government, local 1-23 governments, private corporations, or other persons for purposes of 1-24 the program, a criminal, civil, or administrative fine or penalty 2-1 deposited to the credit of the fund under this section, and 2-2 interest earned on money in the account. A criminal, civil, or 2-3 administrative fine or penalty shall be deposited to the credit of 2-4 the fund if the money was recovered for a violation under Chapter 2-5 382 and is not required by other law to be deposited to a 2-6 particular account or fund in the state treasury and to be used for 2-7 a specific purpose. The total amount of fines or penalties 2-8 deposited to the account in any fiscal year may not exceed $2.5 2-9 million. The total aggregate amount of fines or penalties 2-10 deposited to the account may not exceed $10 million. Money in the 2-11 account may be used only for: 2-12 (1) loan guarantees to help small businesses purchase 2-13 or acquire additional financing to pay for environmental pollution 2-14 control equipment or for an activity or service that will 2-15 facilitate compliance with state environmental pollution control 2-16 regulations governing air pollution; and 2-17 (2) administrative expenses related to the account. 2-18 (c) Loan guarantees under this section shall be administered 2-19 by a contractor selected by the commission with the advice of the 2-20 compliance advisory panel. The commission shall conduct a 2-21 competition by request for proposals among interested public 2-22 agencies, nonprofit organizations, or financial institutions to 2-23 select the contractor. 2-24 (d) The commission may contract with the entity selected 2-25 under Subsection (c) to manage and administer loan guarantees 2-26 according to commission guidelines adopted under this section. The 2-27 contract shall require the use by the commission and the contractor 3-1 of any available administrative assistance of other public 3-2 agencies, nonprofit organizations, or financial institutions to 3-3 obtain the maximum use of money in the account and to increase to 3-4 the greatest extent possible the availability of commercial loans 3-5 to small businesses to pay for environmental pollution control 3-6 equipment or for activities and services for the purpose described 3-7 under Subsection (b)(1). 3-8 (e) The commission shall adopt rules to carry out the 3-9 purposes of this section, including rules governing: 3-10 (1) amounts and terms of and procedures for loan 3-11 guarantees, repayment terms, security requirements, and default and 3-12 remedy provisions; 3-13 (2) procedures and criteria for selection of the 3-14 contractor; 3-15 (3) reporting requirements; and 3-16 (4) disbursement from and administration of the 3-17 account. 3-18 (f) The program shall be administered to achieve an 3-19 equitable distribution of credit availability in terms of type of 3-20 business and geographic distribution. 3-21 (g) The commission shall report not later than March 1 of 3-22 each year to the governor, the lieutenant governor, and the speaker 3-23 of the house regarding the activities of the program. The report 3-24 shall include, at a minimum: 3-25 (1) the status of the account; 3-26 (2) the number and size of loan guarantees made under 3-27 the program; and 4-1 (3) information about businesses receiving assistance 4-2 under the program, including the type of business and geographic 4-3 distribution. 4-4 (h) In this section: 4-5 (1) "Financial institution" means an organization 4-6 authorized to do business under state or federal laws relating to 4-7 financial institutions, including a bank or trust company, savings 4-8 bank, building and loan association, savings and loan company or 4-9 association, or credit union. 4-10 (2) "Program" means the small business environmental 4-11 compliance funding program. 4-12 (3) "Small business" means an independently owned and 4-13 operated business with not more than 100 employees or net earnings 4-14 of $1 million a year or less computed as an average of the 4-15 preceding three years. The term includes a new business that has 4-16 been in existence less than three years if anticipated net earnings 4-17 do not exceed $1 million a year and an agricultural cooperative. 4-18 SECTION 2. This Act takes effect September 1, 1997. 4-19 SECTION 3. The importance of this legislation and the 4-20 crowded condition of the calendars in both houses create an 4-21 emergency and an imperative public necessity that the 4-22 constitutional rule requiring bills to be read on three several 4-23 days in each house be suspended, and this rule is hereby suspended.