By Giddings H.B. No. 1292
A BILL TO BE ENTITLED
AN ACT
relating to the definition of a small business.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.101(3), Government Code, is amended to read as follows:
(3) "Small business" means a corporation, partnership, sole proprietorship, or other legal entity that:
(A) is formed for the purpose of making a profit;
(B) is independently owned and operated; and
(C) has fewer than 50 [100] employees or less than $3 million [$1 million] in annual gross receipts.
SECTION 2. Section 481.191(4), Government Code, is amended to read as follows:
(4) "Small business" has the meaning assigned by Section 481.101 [means a corporation, partnership, sole proprietorship, or other legal entity that:
[(A) is domiciled in this state;
[(B) is formed to make a profit;
[(C) is independently owned and operated; and
[(D) employs fewer than 100 full‑time employees].
SECTION 3. Section 481.231(2), Government Code, is amended to read as follows:
(2) "Small business" has the meaning assigned by Section 481.101 [means a corporation, partnership, sole proprietorship, or other legal entity that:
[(A) is domiciled in this state;
[(B) is formed to make a profit;
[(C) is independently owned and operated; and
[(D) employs fewer than 25 full‑time employees].
SECTION 4. Section 481.301(1), Government Code, is amended to read as follows:
(1) "Small business" has the meaning assigned by Section 481.101 [means a corporation, partnership, sole proprietorship, joint venture, or other business entity operating as a for‑profit concern, having not more than 500 employees, including employees employed by any subsidiary or affiliated business entity, that otherwise meets the requirements of the federal small business innovation research program].
SECTION 5. Section 2006.001(1), Government Code, is amended to read as follows:
(1) "Small business" has the meaning assigned by Section 481.101 [means a legal entity, including a corporation, partnership, or sole proprietorship that:
[(A) is formed for the purpose of making a profit;
[(B) is independently owned and operated; and
[(C) has fewer than 100 employees or less than $1 million in annual gross receipts].
SECTION 6. Section 2006.011(2), Government Code, is amended to read as follows:
(2) "Small business" has the meaning assigned by Section 481.101 [means a legal entity, including a corporation, partnership, or sole proprietorship that:
[(A) is formed for the purpose of making a profit;
[(B) is independently owned and operated;
[(C) is not a publicly held corporation; and
[(D) has fewer than 100 employees or less than $1 million in annual gross receipts at the end of the fiscal year preceding the year of the filing of an administrative adjudicatory proceeding or civil action in which the entity is seeking recovery under this subchapter].
SECTION 7. Article 26.02(21), Insurance Code, is amended to read as follows:
(21) "Small employer" has the meaning assigned by Section 481.101, Government Code, to small business [means a person that is actively engaged in business and that, on at least 50 percent of its working days during the preceding calendar year, employed at least three but not more than 50 eligible employees, including the employees of an affiliated employer, the majority of whom were employed in this state].
SECTION 8. Section 4.02(d), Workforce and Economic Competitiveness Act (Article 5190.7a, Vernon's Texas Civil Statutes), is amended to read as follows:
(d) In this section:
(1) "general purpose business organization" means an organization that admits to membership any for‑profit business operating within the workforce development area; and
(2) "small business" has the meaning assigned by Section 481.101, Government Code [means a private for‑profit enterprise employing not more than 500 employees].
SECTION 9. This Act takes effect September 1, 1995.
SECTION 10. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.
COMMITTEE AMENDMENT NO. 1
Amend House Bill 1292, Section 7, Article 26.02(21), Insurance Code, to read as follows:
On Page 3 of the bill, strike lines 16 through 22 labeled Subsection (21) and substitute the following:
(21) "Small employer" means a person or an entity that is actively engaged in business and that, on at least 50 percent of its working days during the preceding calendar year, employed at least three but not more than 50 eligible employees, including the employees of an affiliated employer, the majority of whom were employed in this state.
Giddings