HBA-TYH H.B. 2022 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2022
By: Garcia
State Affairs
7/22/1999
Enrolled


BACKGROUND AND PURPOSE 

In the comptroller's 1998 Texas Performance Review (TPR), small businesses
employing four or fewer workers were reported to account for 54 percent of
all establishments in Texas.  Another 20 percent of businesses employed
five to nine workers, 12 percent employed 10 to 19 workers, nine percent of
businesses in Texas has 20 to 49 employees, and three percent employed 50
to 99 persons. Only two percent of all Texas businesses employed 100 or
more persons.  Small businesses accounted for about 40 percent of all
private-sector non-farm jobs. 

In focus groups conducted by TPR with businesses throughout the state,
participants expressed a desire for a single place to obtain basic
registration requirements and information, both state and federal, on any
licensing a new business may need.  New business owners did not always know
which agencies have regulatory authority over their operation.  There was
no single contact that has access to all the pertinent information. 

Prior to the 76th Legislature, the Texas Department of Economic Development
(department) had an Office of Small Business Assistance (office) that
provided information to businesses but it only provided state permit
information.  Providing this referral service has taken up much time and
has left other office functions unimplemented.  H.B. 2022 requires the
office to be headed by a small business advocate designated by the
governor, requires the office to develop a "one-stop" approach for all
small business needs, and includes the governing board of the department in
the list of entities to which the department is required to submit a
biennial report. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 481.0068(a), (b), and (e), Government Code, as
follows: 

(a)  Requires the Office of Small Business Assistance (office) to be headed
by a small business advocate (advocate), rather than by a small business
director designated by the governor.  Provides that person must have
demonstrated a strong commitment to small business efforts to be eligible
to serve as advocate. 

(b)  Requires the office to develop a "one-stop" approach for all small
business needs, including competitive activity with state agencies and
political subdivisions.  Makes a conforming change. 

(e)  Includes the governing board of the Texas Department of Economic
Development (department) in the list of entities to which the department is
required to submit a biennial report. 

SECTION 2.  Requires the governor, not later than January 1, 2000, to
designate a small business advocate as required by Section 481.0068,
Government Code, as amended by this Act.  

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.