1-1     By:  Garcia (Senate Sponsor - Lucio)                  H.B. No. 2022
 1-2           (In the Senate - Received from the House May 14, 1999;
 1-3     May 14, 1999, read first time and referred to Committee on Economic
 1-4     Development; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 4, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the appointment of a small business advocate to head
 1-9     the Office of Small Business Assistance.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Sections 481.0068(a), (b), and (e), Government
1-12     Code, are amended to read as follows:
1-13           (a)  The Office of Small Business Assistance is an office
1-14     within the department and shall be headed by a small business
1-15     advocate appointed by the governor [director].  To be eligible to
1-16     serve as the small business advocate, a person must have
1-17     demonstrated a strong commitment to and involvement in small
1-18     business efforts.  The small business advocate serves at the will
1-19     of the governor.
1-20           (b)  The Office of Small Business Assistance shall:
1-21                 (1)  examine the role of small and historically
1-22     underutilized businesses in the state's economy and the
1-23     contribution of small and historically underutilized businesses in
1-24     generating economic activity, expanding employment opportunities,
1-25     promoting exports, stimulating innovation and entrepreneurship, and
1-26     bringing new and untested products and services to the marketplace;
1-27                 (2)  serve as the principal focal point in the state
1-28     for small and historically underutilized businesses by:
1-29                       (A)  providing to the legislature information on
1-30     the effects of proposed policies or actions;
1-31                       (B)  assisting state agencies in determining the
1-32     impact proposed rules have on small businesses as required by
1-33     Section 2006.002; and
1-34                       (C)  assisting the agencies in reducing the
1-35     adverse effect that rules have on small businesses, if appropriate;
1-36                 (3)  evaluate the effectiveness of efforts of state
1-37     agencies and other entities to assist small and historically
1-38     underutilized businesses and make appropriate recommendations to
1-39     the legislature and state agencies to assist the development and
1-40     strengthening of small and historically underutilized businesses;
1-41                 (4)  identify regulations that inhibit small and
1-42     historically underutilized business development and to the extent
1-43     possible identify conflicting state policy goals;
1-44                 (5)  determine the availability of financial and other
1-45     resources to small and historically underutilized businesses and
1-46     recommend methods for:
1-47                       (A)  increasing the availability of equity
1-48     capital and other forms of financial assistance to small and
1-49     historically underutilized businesses;
1-50                       (B)  generating markets for the goods and
1-51     services of small and historically underutilized businesses;
1-52                       (C)  providing more effective education,
1-53     training, and management and technical assistance to small and
1-54     historically underutilized businesses; and
1-55                       (D)  providing assistance to small and
1-56     historically underutilized businesses in complying with federal,
1-57     state, and local laws;
1-58                 (6)  identify the reasons for small and historically
1-59     underutilized business successes and failures, ascertain the
1-60     related factors that are particularly important in this state, and
1-61     recommend actions for increasing the success rate of small and
1-62     historically underutilized businesses;
1-63                 (7)  serve as a focal point for receiving comments and
1-64     suggestions concerning state government policies and activities
 2-1     that affect small and historically underutilized businesses;
 2-2                 (8)  develop and suggest proposals for changes in state
 2-3     policies and activities that adversely affect small and
 2-4     historically underutilized businesses;
 2-5                 (9)  provide to state agencies information on the
 2-6     effects of proposed policies or actions that affect small and
 2-7     historically underutilized businesses;
 2-8                 (10)  provide information and assistance relating to
 2-9     establishing, operating, or expanding small and historically
2-10     underutilized businesses;
2-11                 (11)  assist small and historically underutilized
2-12     businesses by:
2-13                       (A)  identifying:
2-14                             (i)  sources of financial assistance for
2-15     those businesses; and
2-16                             (ii)  financial barriers to those
2-17     businesses;
2-18                       (B)  working with relevant organizations to
2-19     identify financing programs that aid small businesses in overcoming
2-20     financial barriers;
2-21                       (C)  matching those businesses with sources of
2-22     financial assistance and credit enhancement; and
2-23                       (D)  assisting those businesses with the
2-24     preparation of applications for government loans, loan guarantees,
2-25     and credit enhancement programs;
2-26                 (12)  sponsor meetings, to the extent practicable in
2-27     cooperation with public and private educational institutions, to
2-28     provide training and disseminate information beneficial to small
2-29     and historically underutilized businesses;
2-30                 (13)  assist small and historically underutilized
2-31     businesses in their dealings with federal, state, and local
2-32     governmental agencies and provide information regarding
2-33     governmental requirements affecting small and historically
2-34     underutilized businesses;
2-35                 (14)  perform research, studies, and analyses of
2-36     matters affecting the interests of small and historically
2-37     underutilized businesses;
2-38                 (15)  use available resources within the state, such as
2-39     small business development centers, educational institutions, and
2-40     nonprofit associations, to coordinate the provision of management
2-41     and technical assistance to small and historically underutilized
2-42     businesses in a systematic manner;
2-43                 (16)  publish newsletters, brochures, and other
2-44     documents containing information useful to small and historically
2-45     underutilized businesses;
2-46                 (17)  identify successful small and historically
2-47     underutilized business assistance programs provided by other states
2-48     and determine the feasibility of adapting those programs for
2-49     implementation in this state;
2-50                 (18)  establish an outreach program to make the
2-51     existence of the office known to small and historically
2-52     underutilized businesses and potential clients throughout the
2-53     state;
2-54                 (19)  enlist the cooperation and assistance of public
2-55     and private agencies, businesses, and other organizations in
2-56     disseminating information about the programs and services provided
2-57     by the state that benefit small businesses and how small businesses
2-58     can participate in or make use of those programs and services;
2-59                 (20)  defer to the small business stationary source
2-60     assistance program as defined by Section 382.0365, Health and
2-61     Safety Code, on advocacy and technical assistance related to
2-62     environmental programs that regulate small businesses; [and]
2-63                 (21)  develop a "one-stop" approach for all small
2-64     business needs, including competitive activity with state agencies
2-65     and political subdivisions; and
2-66                 (22)  perform any other functions necessary to carry
2-67     out the purposes of this section.
2-68           (e)  Not later than September 1 of each even-numbered year,
2-69     the department shall submit to the governor, governing board, and
 3-1     the legislature a report containing specific information regarding
 3-2     each of the functions performed by the Office of Small Business
 3-3     Assistance, including recommendations regarding issues that affect
 3-4     small businesses of the state.
 3-5           SECTION 2.  As soon as possible after the effective date of
 3-6     this Act, the governor shall appoint a small business advocate as
 3-7     required by Section 481.0068, Government Code, as amended by this
 3-8     Act.
 3-9           SECTION 3.  This Act takes effect September 1, 1999.
3-10           SECTION 4.  The importance of this legislation and the
3-11     crowded condition of the calendars in both houses create an
3-12     emergency and an imperative public necessity that the
3-13     constitutional rule requiring bills to be read on three several
3-14     days in each house be suspended, and this rule is hereby suspended.
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