Texas 2025 - 89th Regular

Texas House Bill HB346 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	89R2823 LRM-D
2	2	By: Harris Davila H.B. No. 346
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to support for new businesses.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter B, Chapter 405, Government Code, is
12	12	amended by adding Section 405.025 to read as follows:
13	13	Sec. 405.025. ELIMINATION OF FIRST YEAR BUSINESS ENTITY
14	14	FEES. The secretary of state shall, in coordination with
15	15	appropriate state and local governmental entities, work to
16	16	eliminate all fees relating to licensing and registration required
17	17	to be paid by a business entity in the entity's first year of
18	18	business, to the extent authorized by law.
19	19	SECTION 2. Subchapter E, Chapter 481, Government Code, is
20	20	amended by adding Section 481.081 to read as follows:
21	21	Sec. 481.081. SUPPORT FOR NEW BUSINESS ORGANIZATIONS. To
22	22	the extent possible, the office shall encourage the appropriate
23	23	state entities to allocate at least five percent of funding
24	24	budgeted for economic development programs, including community
25	25	development block grants, to support businesses that:
26	26	(1) were established within the previous five years;
27	27	and
28	28	(2) have a principal place of business in this state.
29	29	SECTION 3. Subchapter B, Chapter 2155, Government Code, is
30	30	amended by adding Section 2155.0735 to read as follows:
31	31	Sec. 2155.0735. PARTICIPATION BY NEW BUSINESSES IN STATE
32	32	PURCHASING. (a) In this section, "new business" means a business
33	33	in operation for less than five years with its principal place of
34	34	business in this state.
35	35	(b) The comptroller shall make reasonable efforts to
36	36	increase the number of contracts for the purchase of goods or
37	37	services awarded by state agencies to new businesses to at least
38	38	five percent of awarded contracts in a state fiscal year.
39	39	SECTION 4. Subchapter B, Chapter 2155, Government Code, is
40	40	amended by adding Section 2155.092 to read as follows:
41	41	Sec. 2155.092. REPORTING CONTRACTS WITH NEW BUSINESS. (a)
42	42	In this section, "new business" means a business that has been in
43	43	operation for less than five years and has its principal place of
44	44	business in this state.
45	45	(b) Not later than September 1 of each year, the comptroller
46	46	shall file a report with the legislature that identifies:
47	47	(1) the number of state contracts awarded to new
48	48	businesses during the previous year;
49	49	(2) the dollar value of all state contracts awarded to
50	50	new businesses during the previous year;
51	51	(3) the number of state contracts awarded to new
52	52	businesses that qualify as a historically underutilized business,
53	53	as defined by Section 2161.001, during the previous year;
54	54	(4) the geographic area of the state, including the
55	55	city and county, where each new business awarded a state contract in
56	56	the previous year is located;
57	57	(5) the percentage of all state contracts awarded to
58	58	new businesses during the previous year; and
59	59	(6) the percentage of the total dollar value of all
60	60	state contracts awarded to new businesses during the previous year.
61	61	(c) As part of the report required by Subsection (b) that
62	62	must be filed before September 1, 2026, the comptroller, in
63	63	conjunction with the Texas Economic Development and Tourism Office
64	64	within the office of the governor, shall make recommendations to
65	65	improve access by new businesses to state contracting, including
66	66	new businesses owned by statistically underrepresented demographic
67	67	groups and in statistically underrepresented geographic areas of
68	68	the state. This subsection expires January 1, 2027.
69	69	SECTION 5. Subchapter D, Chapter 301, Labor Code, is
70	70	amended by adding Section 301.0701 to read as follows:
71	71	Sec. 301.0701. ANNUAL REPORT ON ECONOMIC DEVELOPMENT. Not
72	72	later than September 1 each year, the commission shall submit a
73	73	report to the legislature on economic development in this state.
74	74	The report must include:
75	75	(1) the proportion of economic development funding,
76	76	including community development block grants, that supports
77	77	programs for:
78	78	(A) an individual who started a new business
79	79	within the preceding five years; or
80	80	(B) organizations that provide services to
81	81	individuals described by Paragraph (A); and
82	82	(2) the total amount of economic development funding
83	83	provided to programs described by Subdivision (1).
84	84	SECTION 6. Subchapter A, Chapter 302, Labor Code, is
85	85	amended by adding Section 302.0021 to read as follows:
86	86	Sec. 302.0021. ANNUAL WORKFORCE DEVELOPMENT FUNDING
87	87	REPORT. Not later than September 1 of each year, the commission
88	88	shall prepare and submit to the legislature a report on workforce
89	89	development funding. The report must include information on the
90	90	total amount of funding allocated by the division and any local
91	91	workforce development boards, and the percentage of all workforce
92	92	development funding that total represents, to support
93	93	organizations, services, and programs for:
94	94	(1) individuals starting a new business; and
95	95	(2) businesses established in the preceding five years
96	96	whose primary place of business is in this state.
97	97	SECTION 7. Subchapter D, Chapter 302, Labor Code, is
98	98	amended by adding Section 302.0615 to read as follows:
99	99	Sec. 302.0615. ALLOCATION OF FUNDS TO SUPPORT NEW
100	100	BUSINESSES. Unless superseded by federal law and notwithstanding
101	101	any other provision of this subchapter or other law, the commission
102	102	shall make reasonable efforts to ensure that at least five percent
103	103	of workforce development funds allocated by the commission in a
104	104	state fiscal year, including any funds distributed by local
105	105	workforce development boards, are used to support programs or
106	106	organizations that provide support to:
107	107	(1) persons establishing a business in this state; or
108	108	(2) businesses that:
109	109	(A) have been in operation for less than five
110	110	years; and
111	111	(B) have their principal place of business in
112	112	this state.
113	113	SECTION 8. Not later than September 1, 2026, the
114	114	comptroller of public accounts shall prepare and submit the first
115	115	annual report required by Section 2155.092, Government Code, as
116	116	added by this Act.
117	117	SECTION 9. Not later than September 1, 2026, the Texas
118	118	Workforce Commission shall prepare and submit the first annual
119	119	report required by Sections 301.0701 and 302.0021, Labor Code, as
120	120	added by this Act.
121	121	SECTION 10. This Act takes effect September 1, 2025.