By Garcia                                             H.B. No. 2022
         76R5746 CLG-D                           
                                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 governor's office.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 772, Government Code, is amended by
 1-6     adding Section 772.010 to read as follows:
 1-7           Sec. 772.010.  SMALL BUSINESS ADVOCACY OFFICE.  (a)  The
 1-8     office of small business advocacy is created within the governor's
 1-9     office.
1-10           (b)  The office shall be headed by a chief small business
1-11     advocate appointed by and serving at the will of the governor.  To
1-12     be eligible to serve as the chief advocate, a person must have
1-13     demonstrated a strong commitment to and involvement in small
1-14     business efforts.
1-15           (c)  The office shall:
1-16                 (1)  serve as the principal focal point in the state
1-17     for small businesses by:
1-18                       (A)  providing to the legislature information on
1-19     the effects of proposed policies or actions;
1-20                       (B)  providing to state agencies information on
1-21     the effects of proposed policies or actions that affect small
1-22     businesses; and
1-23                       (C)  assisting the agencies in reducing the
1-24     adverse effects that rules have on small businesses, if
 2-1     appropriate;
 2-2                 (2)  make appropriate recommendations to the
 2-3     legislature to assist the development and strengthening of small
 2-4     businesses;
 2-5                 (3)  identify the reasons for small businesses'
 2-6     successes and failures, ascertain the related factors that are
 2-7     particularly important in this state, and recommend actions for
 2-8     increasing the success rate of small businesses;
 2-9                 (4)  serve as a focal point for receiving comments and
2-10     suggestions concerning state government policies and activities
2-11     that affect small businesses, and develop and suggest proposals for
2-12     changes in state policies and activities that adversely affect
2-13     small businesses;
2-14                 (5)  provide information and assistance relating to
2-15     establishing, operating, or expanding small businesses;
2-16                 (6)  assist small businesses by identifying:
2-17                       (A)  sources and availability of financial
2-18     assistance for those businesses, including equity capital;
2-19                       (B)  markets for the goods and services of small
2-20     businesses; and
2-21                       (C)  available resources within the state that
2-22     provide training and technical assistance to those businesses, such
2-23     as small business development centers, educational institutions,
2-24     and nonprofit associations;
2-25                 (7)  assist small businesses in the use of financial
2-26     assistance and resources identified in Subdivision (6);
2-27                 (8)  sponsor meetings, to the extent practicable in
 3-1     cooperation with public and private educational institutions, to
 3-2     provide training and disseminate information beneficial to small
 3-3     businesses;
 3-4                 (9)  perform research, studies, and analyses of matters
 3-5     affecting the interests of small businesses, including identifying
 3-6     successful small business assistance programs provided by other
 3-7     states, and determine the feasibility of adapting those programs
 3-8     for implementation in this state;
 3-9                 (10)  establish an outreach program to make the
3-10     existence of the office and the Office of Small Business Assistance
3-11     known to small businesses and potential clients throughout the
3-12     state; and
3-13                 (11)  perform any other functions necessary to carry
3-14     out the purposes of this section.
3-15           (d)  The chief advocate shall travel across the state on a
3-16     regular basis to meet with and address the concerns of small
3-17     business owners.
3-18           (e)  In administering this section, the chief advocate may:
3-19                 (1)  employ and set the compensation of personnel to
3-20     carry out the office's functions; and
3-21                 (2)  hold public hearings.
3-22           SECTION 2.  Section 481.0068(b), Government Code, is amended
3-23     to read as follows:
3-24           (b)  The Office of Small Business Assistance shall:
3-25                 (1)  examine the role of small and historically
3-26     underutilized businesses in the state's economy and the
3-27     contribution of small and historically underutilized businesses in
 4-1     generating economic activity, expanding employment opportunities,
 4-2     promoting exports, stimulating innovation and entrepreneurship, and
 4-3     bringing new and untested products and services to the marketplace;
 4-4                 (2)  serve as the principal focal point in the state
 4-5     for [small and] historically underutilized businesses by[:]
 4-6                       [(A)]  providing to the legislature information
 4-7     on the effects of proposed policies or actions on those
 4-8     businesses[;]
 4-9                       [(B)  assisting state agencies in determining the
4-10     impact proposed rules have on small businesses as required by
4-11     Section 2006.002; and]
4-12                       [(C)  assisting the agencies in reducing the
4-13     adverse effect that rules have on small businesses, if
4-14     appropriate];
4-15                 (3)  evaluate the effectiveness of efforts of state
4-16     agencies and other entities to assist small and historically
4-17     underutilized businesses and make appropriate recommendations to
4-18     the legislature and state agencies to assist the development and
4-19     strengthening of [small and] historically underutilized businesses;
4-20                 (4)  identify regulations that inhibit small and
4-21     historically underutilized business development and to the extent
4-22     possible identify conflicting state policy goals;
4-23                 (5)  determine the availability of financial and other
4-24     resources to small and historically underutilized businesses and
4-25     recommend methods for:
4-26                       (A)  increasing the availability of equity
4-27     capital and other forms of financial assistance to [small and]
 5-1     historically underutilized businesses;
 5-2                       (B)  generating markets for the goods and
 5-3     services of small and historically underutilized businesses;
 5-4                       (C)  providing more effective education,
 5-5     training, and management and technical assistance to small and
 5-6     historically underutilized businesses; and
 5-7                       (D)  providing assistance to small and
 5-8     historically underutilized businesses in complying with federal,
 5-9     state, and local laws;
5-10                 (6)  identify the reasons for [small and] historically
5-11     underutilized business successes and failures, ascertain the
5-12     related factors that are particularly important in this state, and
5-13     recommend actions for increasing the success rate of small and
5-14     historically underutilized businesses;
5-15                 (7)  serve as a focal point for receiving comments and
5-16     suggestions concerning state government policies and activities
5-17     that affect [small and] historically underutilized businesses;
5-18                 (8)  develop and suggest proposals for changes in state
5-19     policies and activities that adversely affect [small and]
5-20     historically underutilized businesses;
5-21                 (9)  provide to state agencies information on the
5-22     effects of proposed policies or actions that affect [small and]
5-23     historically underutilized businesses;
5-24                 (10)  provide information and assistance relating to
5-25     establishing, operating, or expanding [small and] historically
5-26     underutilized businesses;
5-27                 (11)  assist small and historically underutilized
 6-1     businesses by:
 6-2                       (A)  identifying:
 6-3                             (i)  sources of financial assistance for
 6-4     historically underutilized [those] businesses; and
 6-5                             (ii)  financial barriers to those
 6-6     businesses;
 6-7                       (B)  working with relevant organizations to
 6-8     identify financing programs that aid small businesses in overcoming
 6-9     financial barriers;
6-10                       (C)  matching those businesses with sources of
6-11     financial assistance and credit enhancement; and
6-12                       (D)  assisting those businesses with the
6-13     preparation of applications for government loans, loan guarantees,
6-14     and credit enhancement programs;
6-15                 (12)  sponsor meetings, to the extent practicable in
6-16     cooperation with public and private educational institutions, to
6-17     provide training and disseminate information beneficial to [small
6-18     and] historically underutilized businesses;
6-19                 (13)  assist small and historically underutilized
6-20     businesses in their dealings with federal, state, and local
6-21     governmental agencies and provide information regarding
6-22     governmental requirements affecting small and historically
6-23     underutilized businesses;
6-24                 (14)  perform research, studies, and analyses of
6-25     matters affecting the interests of [small and] historically
6-26     underutilized businesses;
6-27                 (15)  use available resources within the state, such as
 7-1     [small business development centers,] educational institutions[,]
 7-2     and nonprofit associations, to coordinate the provision of
 7-3     management and technical assistance to [small and] historically
 7-4     underutilized businesses in a systematic manner;
 7-5                 (16)  publish newsletters, brochures, and other
 7-6     documents containing information useful to small and historically
 7-7     underutilized businesses;
 7-8                 (17)  identify successful [small and] historically
 7-9     underutilized business assistance programs provided by other states
7-10     and determine the feasibility of adapting those programs for
7-11     implementation in this state;
7-12                 (18)  establish an outreach program to make the
7-13     existence of the office known to [small and] historically
7-14     underutilized businesses and potential clients throughout the
7-15     state;
7-16                 (19)  enlist the cooperation and assistance of public
7-17     and private agencies, businesses, and other organizations in
7-18     disseminating information about the programs and services provided
7-19     by the state that benefit small businesses and how small businesses
7-20     can participate in or make use of those programs and services;
7-21                 (20)  defer to the small business stationary source
7-22     assistance program as defined by Section 382.0365, Health and
7-23     Safety Code, on advocacy and technical assistance related to
7-24     environmental programs that regulate small businesses; and
7-25                 (21)  perform any other functions necessary to carry
7-26     out the purposes of this section.
7-27           SECTION 3.  Not later than January 1, 2000, the governor
 8-1     shall appoint a chief small business advocate as required by
 8-2     Section 772.010, Government Code, as added by this Act.
 8-3           SECTION 4.  This Act takes effect September 1, 1999.
 8-4           SECTION 5.  The importance of this legislation and the
 8-5     crowded condition of the calendars in both houses create an
 8-6     emergency and an imperative public necessity that the
 8-7     constitutional rule requiring bills to be read on three several
 8-8     days in each house be suspended, and this rule is hereby suspended.