By Ellis, et al. S.B. No. 1595
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.