88R14542 LRM-D
 
  By: Harris of Williamson H.B. No. 4934
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to support for new businesses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 405, Government Code, is
  amended by adding Section 405.025 to read as follows:
         Sec. 405.025.  ELIMINATION OF FIRST YEAR BUSINESS ENTITY
  FEES. The secretary of state shall, in coordination with
  appropriate state and local governmental entities, work to
  eliminate all fees relating to licensing and registration required
  to be paid by a business entity in the entity's first year of
  business, to the extent authorized by law.
         SECTION 2.  Subchapter E, Chapter 481, Government Code, is
  amended by adding Section 481.081 to read as follows:
         Sec. 481.081.  SUPPORT FOR NEW BUSINESS ORGANIZATIONS. To
  the extent possible, the office shall encourage the appropriate
  state entities to allocate at least five percent of funding
  budgeted for economic development programs, including community
  development block grants, to support businesses that:
               (1)  were established within the previous five years;
  and
               (2)  have a principal place of business in this state.
         SECTION 3.  Subchapter B, Chapter 2155, Government Code, is
  amended by adding Section 2155.0735 to read as follows:
         Sec. 2155.0735.  PARTICIPATION BY NEW BUSINESSES IN STATE
  PURCHASING. (a) In this section, "new business" means a business
  in operation for less than five years with its principal place of
  business in this state.
         (b)  The comptroller shall make reasonable efforts to
  increase the number of contracts for the purchase of goods or
  services awarded by state agencies to new businesses to at least
  five percent of awarded contracts in a state fiscal year.
         SECTION 4.  Subchapter B, Chapter 2155, Government Code, is
  amended by adding Section 2155.092 to read as follows:
         Sec. 2155.092.  REPORTING CONTRACTS WITH NEW BUSINESS. (a)
  In this section, "new business" means a business that has been in
  operation for less than five years and has its principal place of
  business in this state.
         (b)  Not later than September 1 of each year, the comptroller
  shall file a report with the legislature that identifies:
               (1)  the number of state contracts awarded to new
  businesses during the previous year;
               (2)  the dollar value of all state contracts awarded to
  new businesses during the previous year;
               (3)  the number of state contracts awarded to new
  businesses that qualify as a historically underutilized business,
  as defined by Section 2161.001, during the previous year;
               (4)  the geographic area of the state, including the
  city and county, where each new business awarded a state contract in
  the previous year is located;
               (5)  the percentage of all state contracts awarded to
  new businesses during the previous year; and
               (6)  the percentage of the total dollar value of all
  state contracts awarded to new businesses during the previous year.
         (c)  As part of the report required by Subsection (b) that
  must be filed before September 1, 2024, the comptroller, in
  conjunction with the Texas Economic Development and Tourism Office
  within the office of the governor, shall make recommendations to
  improve access by new businesses to state contracting, including
  new businesses owned by statistically underrepresented demographic
  groups and in statistically underrepresented geographic areas of
  the state. This subsection expires January 1, 2025.
         SECTION 5.  Subchapter D, Chapter 301, Labor Code, is
  amended by adding Section 301.0701 to read as follows:
         Sec. 301.0701.  ANNUAL REPORT ON ECONOMIC DEVELOPMENT. Not
  later than September 1 each year, the commission shall submit a
  report to the legislature on economic development in this state.  
  The report must include:
               (1)  the proportion of economic development funding,
  including community development block grants, that supports
  programs for:
                     (A)  an individual who started a new business
  within the preceding five years; or
                     (B)  organizations that provide services to
  individuals described by Paragraph A; and
               (2)  the total amount of economic development funding
  provided to programs described by Subdivision (1).
         SECTION 6.  Subchapter A, Chapter 302, Labor Code, is
  amended by adding Section 302.00215 to read as follows:
         Sec. 302.00215.  ANNUAL WORKFORCE DEVELOPMENT FUNDING
  REPORT. Not later than September 1 of each year, the commission
  shall prepare and submit to the legislature a report on workforce
  development funding. The report must include information on the
  total amount of funding allocated by the division and any local
  workforce development boards, and the percentage of all workforce
  development funding that total represents, to support
  organizations, services, and programs for:
               (1)  individuals starting a new business; and
               (2)  businesses established in the preceding five years
  whose primary place of business is in this state. 
         SECTION 7.  Subchapter D, Chapter 302, Labor Code, is
  amended by adding Section 302.0615 to read as follows:
         Sec. 302.0615.  ALLOCATION OF FUNDS TO SUPPORT NEW
  BUSINESSES. Unless superseded by federal law and notwithstanding
  any other provision of this subchapter or other law, the commission
  shall make reasonable efforts to ensure that at least five percent
  of workforce development funds allocated by the commission in a
  state fiscal year, including any funds distributed by local
  workforce development boards, are used to support programs or
  organizations that provide support to:
               (1)  persons establishing a business in this state; or
               (2)  businesses that:
                     (A)  have been in operation for less than five
  years; and
                     (B)  have their principal place of business in
  this state.
         SECTION 8.  Not later than September 1, 2024, the Texas
  Workforce Commission shall prepare and submit the first annual
  report required by Section 302.00215, Labor Code, as added by this
  Act.
         SECTION 9.  This Act takes effect September 1, 2023.