H.B. No. 4850

AN ACT

relating to programs to promote economic development in the Office of the Governor and to the repeal of the governor's broadband development council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 481.0066(e), Government Code, is amended to read as follows:

(e) The governor shall appoint an aerospace and aviation advisory committee consisting of:

(1) seven qualified members to assist in the state's economic development efforts to recruit and retain aerospace and aviation jobs and investment; [and]

(2) one qualified member representing a federal entity or the United States armed forces; and

(3) one member for each active spaceport development corporation in the state who represents the interests of each respective spaceport development corporation.

SECTION 2. Section 481.167(a), Government Code, is amended to read as follows:

(a) The office shall establish the Texas Business and Community Economic Development Clearinghouse to provide information and assistance to businesses and communities in the state [through the use of a statewide toll-free telephone service].

SECTION 3. Section 481.652(b), Government Code, is amended to read as follows:

(b) The purposes of the consortium are to:

(1) leverage the expertise and capacity of institutions of higher education, industry, and nonprofit stakeholders to advise and provide input to the office regarding [develop] a comprehensive strategic plan to ensure ongoing semiconductor innovation;

(2) sustain the leadership of this state in advanced semiconductor research, design, and manufacturing;

(3) provide recommendations to the executive committee on research and funding opportunities related to semiconductor research, design, commercialization, and manufacturing [attract public and private investment in this state related to research, development, commercialization, and manufacturing of semiconductors];

(4) identify and advise the executive committee on [expand] opportunities for workforce training and development related to the research, design, and manufacturing of semiconductors; and

(5) establish a forum for public and private stakeholders across the semiconductor manufacturing industry in this state to focus on education, research and development, and commercial production.

SECTION 4. Section 481.654, Government Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows:

(b) The office shall hire or otherwise provide the staff and provide the facilities necessary to assist the consortium in performing the consortium's duties under this subchapter.

(c) The office shall hire an executive director. The executive director shall direct staff assigned to report to the executive director and assist the consortium in performing the consortium's duties under this subchapter.

SECTION 5. Section 481.655, Government Code, is amended by adding Subsections (a-1) and (a-2) to read as follows:

(a-1) An executive committee member appointed under Subsections (a)(1) through (3) serves a six-year term at the pleasure of the applicable appointing authority. The terms of executive committee members appointed under Subsections (a)(1) through (3) must be staggered so that, to the extent practicable, the terms of one of those members expires on January 31 of each odd-numbered year.

(a-2) An executive committee member who is a designee of an executive committee member described by Subsection (a)(4) or (5) serves a two-year term.

SECTION 6. Section 481.656(a), Government Code, is amended to read as follows:

(a) The executive committee shall:

(1) advise and provide input to the office regarding the [develop and execute a] comprehensive statewide strategic plan to further the purposes [objectives] of:

(A) the consortium as established under Section 481.652; and

(B) the executive committee under this section; and

(2) solicit recommendations from consortium members on funding and research opportunities related to semiconductor research, design, commercialization, and manufacturing[;

[(3) appoint an executive director of the consortium and determine the title, functions, duties, powers, and salary for the executive director; and

[(4) prepare and submit the report required by Section 481.657].

SECTION 7. Subchapter GG, Chapter 481, Government Code, is amended by adding Section 481.6565 to read as follows:

Sec. 481.6565. STRATEGIC PLAN. The office shall develop a strategic plan for the promotion of the semiconductor economy in this state.

SECTION 8. Section 481.657, Government Code, is amended to read as follows:

Sec. 481.657. BIENNIAL REPORT. Not later than December 1 of each even-numbered year, the office [executive committee] shall prepare and submit to the governor and the Legislative Budget Board a written report that outlines:

(1) activities undertaken to meet the purposes of the consortium under Section 481.652;

(2) a summary of the funding and research opportunities identified under Section 481.656(a)(2);

(3) any legislative recommendations to further the purposes of the consortium;

(4) any prospective grants or funding the consortium members expect to apply for or receive; and

(5) any research accomplishments associated with the consortium.

SECTION 9. Section 481.658(b), Government Code, is amended to read as follows:

(b) Money in the fund may be used to:

(1) provide matching funding to state entities, including institutions of higher education, for semiconductor manufacturing and design projects;

(2) award grants to business entities with an established presence in this state to encourage economic development related to semiconductor manufacturing and design; and

(3) subject to Subsection (c), pay for staff support services described by Section 481.654(b) [481.656(b)].

SECTION 10. Section 490D.051(c), Government Code, is amended to read as follows:

(c) The criteria established under Subsection (b)(1) must include a requirement that not less than 51 percent of [all or virtually] all significant parts and processing of a product originated in this state.

SECTION 11. The following provisions of the Government Code are repealed:

(1) Section 481.656(b); and

(2) Chapter 490H.

SECTION 12. This Act takes effect September 1, 2025.

______________________________ ______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 4850 was passed by the House on May 7, 2025, by the following vote: Yeas 139, Nays 3, 2 present, not voting; and that the House concurred in Senate amendments to H.B. No. 4850 on May 23, 2025, by the following vote: Yeas 115, Nays 18, 2 present, not voting.

______________________________ Chief Clerk of the House

I certify that H.B. No. 4850 was passed by the Senate, with amendments, on May 20, 2025, by the following vote: Yeas 30, Nays 1.

______________________________ Secretary of the Senate APPROVED: __________________

Date

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Governor