By Brimer                                             H.B. No. 1549
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the operation of a business in the State of Texas.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           ARTICLE 1.  OFFICE OF SMALL BUSINESS ASSISTANCE
 1-5           SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by
 1-6     adding Chapter 309 to read as follows:
 1-7              CHAPTER 309.  OFFICE OF SMALL BUSINESS ASSISTANCE
 1-8           Sec. 309.001.  DEFINITION.  In this chapter, "office" means
 1-9     the Office of Small Business Assistance.
1-10           Sec. 309.002.  OFFICE OF SMALL BUSINESS ASSISTANCE.  The
1-11     Office of Small Business Assistance is an office within the
1-12     commission.
1-13           Sec. 309.003.  SMALL BUSINESS DIRECTOR.  The office is
1-14     administered by a director appointed by the commission and approved
1-15     by the governor.
1-16           Sec. 309.004.  DUTIES.  The office shall:
1-17                 (1)  determine the availability of financial and other
1-18     resources to small and historically underutilized businesses and
1-19     recommend methods for:
1-20                       (A)  increasing the availability of equity
1-21     capital and other forms of financial assistance to small and
 2-1     historically underutilized businesses;
 2-2                       (B)  generating markets for the goods and
 2-3     services of small and historically underutilized businesses;
 2-4                       (C)  providing more effective education,
 2-5     training, and management and technical assistance to small and
 2-6     historically underutilized businesses; and
 2-7                       (D)  providing assistance to small and
 2-8     historically underutilized businesses in complying with federal,
 2-9     state, and local laws;
2-10                 (2)  serve as a focal point for receiving comments and
2-11     suggestions concerning state government policies and activities
2-12     that affect small and historically underutilized  businesses;
2-13                 (3)  assist small and historically underutilized
2-14     businesses by:
2-15                       (A)  identifying:
2-16                             (i)  sources of financial assistance for
2-17     those businesses; and
2-18                             (ii)  financial barriers to those
2-19     businesses;
2-20                       (B)  working with relevant organizations to
2-21     identify financing programs that aid small businesses in overcoming
2-22     financial barriers;
2-23                       (C)  matching those businesses with sources of
2-24     financial assistance and credit enhancement; and
2-25                       (D)  assisting those businesses with the
 3-1     preparation of applications for government loans, loan guarantees,
 3-2     and credit enhancement programs;
 3-3                 (4)  assist small and historically underutilized
 3-4     businesses in their dealings with federal, state, and local
 3-5     governmental agencies and provide information regarding
 3-6     governmental requirements affecting small and historically
 3-7     underutilized businesses; and
 3-8                 (5)  establish an outreach program to make the
 3-9     existence of the office known to small and historically
3-10     underutilized businesses and potential clients throughout the
3-11     state.
3-12           Sec. 309.005.  STATE AGENCY ASSISTANCE.  On request of the
3-13     office, each state agency shall furnish the office with reports and
3-14     other information necessary to enable the office to carry out the
3-15     purposes of this chapter.
3-16           Sec. 309.006.  GIFTS AND DONATIONS.  The office may accept
3-17     gifts, grants, and donations from any source for the purpose of
3-18     performing specific projects and studies or to provide assistance
3-19     to small businesses.
3-20           Sec. 309.007.  REPORT.  Not later than September 1 of each
3-21     even-numbered year, the commission shall submit to the governor and
3-22     the legislature a report containing specific information regarding
3-23     each of the functions performed by the office, including
3-24     recommendations regarding issues that affect small businesses of
3-25     the state.
 4-1           SECTION 2.  Section 481.0068, Government Code, is repealed.
 4-2           SECTION 3.  The Office of Small Business Assistance within
 4-3     the Department of Economic Development is abolished and its powers
 4-4     and duties are transferred to the Office of Small Business
 4-5     Assistance within the Texas Workforce Commission.
 4-6           SECTION 4.  This article takes effect September 1, 1999.
 4-7                      ARTICLE 2.  UNEMPLOYMENT INSURANCE TAX
 4-8           SECTION 1.  Section 204.006(a), Labor Code, is amended to
 4-9     read as follows:
4-10           (a)  A person's contribution rate for the calendar year in
4-11     which the person becomes an employer is the greater of:
4-12                 (1)  the rate established for that year for the major
4-13     group to which the employer is assigned under Section 204.004; or
4-14                 (2)  five-tenths [two and seven tenths] percent.
4-15           SECTION 2.  Section 204.0065, Labor Code, is amended to read
4-16     as follows:
4-17           Sec. 204.0065.  TEMPORARY INITIAL CONTRIBUTION RATE.
4-18     Notwithstanding Section 204.006, [on and after January 1, 1994,] a
4-19     person's contribution rate shall be four-tenths [two and
4-20     six-tenths] percent until the date the experience rate computed
4-21     under Section 204.041 takes effect for the employer.  This section
4-22     expires December 31, 1999.
4-23           SECTION 3.  This article takes effect September 1, 1999, and
4-24     applies only to computation of an unemployment compensation
4-25     contribution rate made by the Texas Workforce Commission on or
 5-1     after that date.  A contribution rate computed before that date is
 5-2     governed by the law in effect on the date the rate was computed,
 5-3     and the former law is continued in effect for that purpose.
 5-4             ARTICLE 3.  SEXUAL EXPLOITATION BY A MENTAL HEALTH
 5-5                              SERVICES PROVIDER
 5-6           SECTION 1.  Section 81.006(a), Civil Practices and Remedies
 5-7     Code, is amended to read as follows:
 5-8           (a)  If a mental health services provider or the employer of
 5-9     a mental health services provider has reasonable cause to suspect
5-10     that a patient has been the victim of sexual exploitation by a
5-11     mental health services provider during the course of treatment, or
5-12     if a patient alleges sexual exploitation by a mental health
5-13     services provider during the course of treatment, the mental health
5-14     services provider or the employer shall report the alleged conduct
5-15     not later than the 7th [30th] day after the date the person became
5-16     aware of the conduct or the allegations to:
5-17                 (1)  the prosecuting attorney in the county in which
5-18     the alleged sexual exploitation occurred; and
5-19                 (2)  any state licensing board that has responsibility
5-20     for the mental health services provider's licensing.
5-21           SECTION 2.  This article takes effect September 1, 1999.
5-22                          ARTICLE 4.  FRANCHISE TAX
5-23           SECTION 1.  Section 171.052, Tax Code, is amended to read as
5-24     follows:
5-25           Sec. 171.052.  CERTAIN CORPORATIONS.  A corporation that is
 6-1     an insurance company, surety, guaranty, or fidelity company now
 6-2     required to pay or who pays [an annual] a tax at least once a year
 6-3     measured by their gross receipts is exempted from the franchise
 6-4     tax.
 6-5           SECTION 2.  This article takes effect September 1, 1999.
 6-6                        ARTICLE 5.  SALES AND USE TAX
 6-7           SECTION 1.  Section 151.7031, Tax Code, is amended to read as
 6-8     follows:
 6-9           Sec. 151.7031.  FAILURE TO REPORT ON THREE OR MORE OCCASIONS;
6-10     CIVIL PENALTY.  A person who is required to file a report under
6-11     this chapter, who fails to file the report under this chapter, and
6-12     who has on two or more previous occasions failed to file a timely
6-13     report under this chapter shall pay an additional penalty of $[50]
6-14     S250.  The penalty provided by this section is assessed without
6-15     regard to whether the taxpayer subsequently files the report or
6-16     whether no taxes were due from the taxpayer for the reporting
6-17     period under the required report.
6-18           SECTION 2.  This Act takes effect September 1, 1999.
6-19                            ARTICLE 6.  INSURANCE
6-20           SECTION 1.  Subchapter A, Chapter 26, Article 26.04,
6-21     Insurance Code, is amended to read as follows:
6-22           Art. 26.04.  RULES.  The commissioner shall adopt rules as
6-23     necessary to implement this chapter and to meet the minimum
6-24     requirements of federal law and regulations, and shall recommend to
6-25     the Legislature changes in law to promote quality, cost effective
 7-1     health care for large and small employers.
 7-2           SECTION 2.  This article takes effect September 1, 1999.
 7-3                            ARTICLE 7.  EMERGENCY
 7-4           SECTION 1.  The importance of this legislation and the
 7-5     crowded condition of the calendars in both houses create an
 7-6     emergency and an imperative public necessity that the
 7-7     constitutional rule requiring bills to be read on three several
 7-8     days in each house be suspended, and this rule is hereby suspended.