The 81st Legislative Session was notably marked by the economic downturn affecting Texas, as well as the entire nation. Fortunately, Texas was in a better position than most states as we prepared a budget for state agencies and programs for the coming biennium. A large reason behind Texas’ success is our business community, and especially our small businesses. Small businesses truly are the backbone of our local, state and national economy due to their leadership, innovation and, most notably, because they create two-thirds of all new jobs in our communities.

The state of Texas greatly values the hard work and dedication small business owners and employees give towards their chosen craft. During the recent session of the Texas Legislature, many strides were taken to provide support and assistance to our small businesses. These efforts helped lead Directorship Magazine to recognize Texas as the best state for business. In fact, almost $21 million will be spent in the fiscal year 2010-11 by the state of Texas to encourage and facilitate business and economic development opportunities.

As one of the fastest growing cities in America, the foundation Round Rock has established is truly paying off as families and businesses continue to flock to the area. This was highlighted by Mayor McGraw’s recent interview for a CNBC segment titled “Where The Jobs Are.” It is imperative that we continue to work at a local and state level to ensure the pro-business atmosphere for our future success. For this reason, I worked on several key bills during the Legislative Session to ensure Round Rock and Texas continue to attract new businesses and economic development opportunities.

One of the most important bills I helped pass will provide immediate tax relief for small businesses in Texas. House Bill 4765 temporarily raises the total revenue exemption from $300,000 to $1,000,000 for tax reports due in 2010 and 2011 (tax years 2009 and 2010 respectively). After that period, the total revenue exemption returns to $300,000. This law will help keep small businesses afloat while the economy continues to recover.

Furthermore, House Bill 4765 will exempt businesses that earn an annual revenue up to $1 million from paying the margins tax until December 31st, 2011. This legislation will raise the “small business” tax exemption from its current level of $300,000 up to $1 million for the years 2010 and 2011. After that period, the tax level will return to $600,000 which will still be twice the current threshold. Raising the exemption to $1 million will provide approximately 40,000 Texas business owners with an average of $4,413 in tax relief each year. In maintaining the exemption at $600,000 in the following years, it is expected that approximately 60,000 small businesses will realize an average annual tax relief of $2,500. I believe that this law will provide much-needed support and stabilization for Texas small businesses. House Bill 4765 has been signed by the Governor and will go into effect January 1, 2010.

During my term as State Representative, I have made it a priority to work closely with the Governor’s Office in regards to the Texas Enterprise Fund. Currently, the Texas Enterprise Fund is intended to create economic development incentives, but there were no statutes requiring that the incentives be directed to encourage small business growth. That is why I was proud to help pass House Bill 394 which requires the Governor to consider Texas-based small businesses when making grants from the fund. With so many current and prospective companies looking to relocate or expand in Williamson County, it is vital to explore all avenues to help expand the economic development opportunities in the region. This law was signed by the Governor and went into effect September 1st.

In addition, the Legislature passed a new measure relating to health care options for small businesses. Over 40 percent of uninsured Texans are employed by Texas businesses with 25 or fewer employees. Under Texas law, an insurance carrier is not permitted to offer varying contribution rates as an option to small employers. However, Senate Bill 80 authorizes an insurance carrier to offer a small employer health benefit plan. This new measure will provide small businesses with a viable option to extend health care options and coverage to their employees. This law was signed by the Governor and is already in effect.

Small businesses are the footprint of our communities and cannot go without appreciation. It is this sprit of entrepreneurship that allows small business owners to truly experience the American Dream of creating and developing a concept for a business, and working tirelessly to reap the fruits of their labors. We must also thank these business owners who consistently and selflessly give of their time and their efforts to serve the greater good of the region. I believe all successful small businesses understand that to flourish, it takes not only hard work and determination, but the support of an entire community.

I would like to thank the small business community for all of their hard work throughout these tough times. It is my belief that these new laws will provide much-needed support for small businesses, and I look forward to crafting legislation in future sessions to ensure Texas continues to rank as one of the top places for business.