AN ACT
1-1 relating to abolishing the Texas Department of Commerce and
1-2 transferring its powers and duties to the newly created Texas
1-3 Department of Economic Development and to certain other economic
1-4 development programs in the state.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The heading to Chapter 481, Government Code, is
1-7 amended to read as follows:
1-8 CHAPTER 481. TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT [COMMERCE]
1-9 SECTION 2. Section 481.001, Government Code, is amended to
1-10 read as follows:
1-11 Sec. 481.001. DEFINITIONS. In this chapter:
1-12 (1) "Governing [Policy] board" means the governing
1-13 [policy] board of [to] the department.
1-14 (2) "Bond" includes a note, draft, bill, warrant,
1-15 debenture, certificate, or other evidence of indebtedness.
1-16 (3) "Border region" means the area composed of the
1-17 counties of Brewster, Cameron, Culberson, Dimmit, El Paso, Hidalgo,
1-18 Hudspeth, Jeff Davis, Kinney, La Salle, Maverick, Presidio, Starr,
1-19 Terrell, Val Verde, Webb, Willacy, Zapata, and Zavala.
1-20 (4) "Department" means the Texas Department of
1-21 Economic Development [Commerce].
1-22 SECTION 3. Section 481.002, Government Code, is amended to
1-23 read as follows:
2-1 Sec. 481.002. DEPARTMENT. The Texas Department of Economic
2-2 Development [Commerce] is an agency of the state.
2-3 SECTION 4. Section 481.003, Government Code, is amended to
2-4 read as follows:
2-5 Sec. 481.003. SUNSET PROVISION. The Texas Department of
2-6 Economic Development [Commerce] is subject to Chapter 325 (Texas
2-7 Sunset Act). Unless continued in existence as provided by that
2-8 chapter, the department is abolished and this chapter expires
2-9 September 1, 2001.
2-10 SECTION 5. Section 481.004, Government Code, is amended to
2-11 read as follows:
2-12 Sec. 481.004. GOVERNING [POLICY] BOARD. (a) The governing
2-13 [policy] board is composed of nine[:]
2-14 [(1) six] public members appointed by the governor
2-15 with the advice and consent of the senate, which members shall be
2-16 appointed to give geographical representation on the governing
2-17 [policy] board to all regions of the state[; and]
2-18 [(2) the following ex officio members:]
2-19 [(A) the chairperson of the State Job Training
2-20 Coordinating Council and the chairperson shall in no event be
2-21 permitted to claim or receive state per diem for service on the
2-22 policy board;]
2-23 [(B) the presiding officer of the International
2-24 Trade Commission; and]
2-25 [(C) the presiding officer of the Texas-Mexico
3-1 Authority].
3-2 (b) Members [Appointed members] of the governing [policy]
3-3 board serve for six-year terms with the terms of three [two]
3-4 members expiring February 1 of each odd-numbered year. [Ex officio
3-5 members have the same powers and duties as appointed members.]
3-6 (c) Appointments to the governing [policy] board shall be
3-7 made without regard to the race, color, handicap, sex, religion,
3-8 age, or national origin of the appointees.
3-9 (d) In making appointments under this section, the governor
3-10 shall attempt to include members of different minority groups
3-11 including females, African Americans, Hispanic Americans, Native
3-12 Americans, Asian Americans, and persons who are disabled.
3-13 (e) At least one member of the governing [policy] board must
3-14 be a resident of a county with a population of less than 30,000, at
3-15 least one other member must have experience in international trade,
3-16 at least one other member must have experience in tourism, and at
3-17 least one other member must be an economic development
3-18 practitioner.
3-19 SECTION 6. Section 481.0041, Government Code, is amended to
3-20 read as follows:
3-21 Sec. 481.0041. REMOVAL OF GOVERNING [POLICY] BOARD MEMBERS.
3-22 (a) It is a ground for removal from the governing [policy] board
3-23 if a member:
3-24 (1) does not have at the time of appointment the
3-25 qualifications required by Section 481.0042;
4-1 (2) does not maintain during service on the governing
4-2 [policy] board the qualifications required by Section 481.0042;
4-3 (3) violates a prohibition established by Section
4-4 481.0042;
4-5 (4) cannot discharge the member's duties for a
4-6 substantial part of the term for which the member is appointed
4-7 because of illness or disability; or
4-8 (5) is absent from more than half of the regularly
4-9 scheduled governing [policy] board meetings that the member is
4-10 eligible to attend during a calendar year unless the absence is
4-11 excused by majority vote of the governing [policy] board.
4-12 (b) The validity of an action of the governing [policy]
4-13 board is not affected by the fact that it is taken when a ground
4-14 for removal of a governing [policy] board member exists.
4-15 (c) If the executive director has knowledge that a potential
4-16 ground for removal exists, the executive director shall notify the
4-17 presiding officer of the governing [policy] board of the ground.
4-18 The presiding officer shall then notify the governor that a
4-19 potential ground for removal exists.
4-20 SECTION 7. Subsections (a), (b), and (e), Section 481.0042,
4-21 Government Code, are amended to read as follows:
4-22 (a) A person may not serve as a public member of the
4-23 governing [policy] board or be the executive director or an
4-24 employee of the department if the person:
4-25 (1) is employed by, participates in the management of,
5-1 or is a paid consultant of a business entity that contracts with
5-2 the department;
5-3 (2) owns or controls, directly or indirectly, more
5-4 than a 10 percent interest in a business entity or other
5-5 organization that contracts with the department;
5-6 (3) uses or receives a substantial amount of tangible
5-7 goods, services, or funds from the department, other than
5-8 compensation or reimbursement authorized by law for employee
5-9 salaries and benefits or for governing [policy] board membership,
5-10 attendance, and expenses; or
5-11 (4) is an officer, employee, or paid consultant of a
5-12 trade association of businesses that contracts with the department.
5-13 (b) A person may not serve as a public member of the
5-14 governing [policy] board or be the executive director or an
5-15 employee of the department if the person's spouse:
5-16 (1) participates in the management of or is a paid
5-17 consultant of a business entity that contracts with the department;
5-18 (2) owns or controls, directly or indirectly, more
5-19 than a 10 percent interest in a business entity or other
5-20 organization that contracts with the department;
5-21 (3) uses or receives a substantial amount of tangible
5-22 goods, services, or funds from the department; or
5-23 (4) is an officer, manager, or paid consultant of a
5-24 trade association of businesses that contracts with the department.
5-25 (e) A person may not be a member of the governing [policy]
6-1 board or the executive director or an employee of the department if
6-2 the person is required to register as a lobbyist under Chapter
6-3 305[, Government Code,] because of the person's activities for
6-4 compensation on behalf of a business entity that has an interest in
6-5 a contract with the department or a profession related to the
6-6 operation of the department.
6-7 SECTION 8. Section 481.0043, Government Code, is amended to
6-8 read as follows:
6-9 Sec. 481.0043. OFFICERS; COMPENSATION; MEETINGS. (a) The
6-10 governor designates the presiding officer of the governing [policy]
6-11 board. The governing [policy] board shall elect from among its
6-12 members an assistant presiding officer and a secretary.
6-13 (b) The governing [policy] board shall meet at least eight
6-14 times each year [quarterly].
6-15 (c) A member of the governing [policy] board may not receive
6-16 compensation for service on the governing [policy] board. A member
6-17 is entitled to receive reimbursement, subject to any applicable
6-18 limitation on reimbursement provided by the General Appropriations
6-19 Act, for actual and necessary travel expenses incurred in
6-20 performing services as a member of the governing [policy] board.
6-21 (d) The governing [policy] board shall develop and implement
6-22 policies that provide the public with a reasonable opportunity to
6-23 appear before the governing [policy] board and to speak on any
6-24 issue under the jurisdiction of the governing [policy] board.
6-25 SECTION 9. Section 481.0044, Government Code, is amended to
7-1 read as follows:
7-2 Sec. 481.0044. GENERAL POWERS AND DUTIES. (a) The
7-3 governing [policy] board shall adopt rules necessary for the
7-4 administration of department programs and may adopt rules for its
7-5 internal management and control.
7-6 (b) The governing [policy] board shall perform the duties
7-7 assigned to the department under this chapter or other law.
7-8 (c) The governing [policy] board possesses the powers and
7-9 shall perform the duties assigned by law to the department.
7-10 (d) The governing [policy] board shall report to the
7-11 governor annually and to the legislature at each regular session on
7-12 the department's activities. The report must include:
7-13 (1) a description of the activities of the governing
7-14 board and the department during the preceding calendar year;
7-15 (2) a description of the efforts of the governing
7-16 board and the department to promote and market the department's
7-17 economic development programs and services, including the Texas
7-18 Business and Community Economic Development Clearinghouse;
7-19 (3) a description of the efforts of the governing
7-20 board and the department to obtain federal and private funding to
7-21 accomplish the goals of the department;
7-22 (4) recommendations to the legislature on issues
7-23 related to economic development and the business climate of the
7-24 state; and
7-25 (5) an assessment of the effectiveness of the
8-1 agreements executed under Section 481.028(b). [The policy board
8-2 may make recommendations in those reports on matters under its
8-3 jurisdiction.]
8-4 SECTION 10. Section 481.005, Government Code, is amended to
8-5 read as follows:
8-6 Sec. 481.005. EXECUTIVE DIRECTOR; GOVERNING [POLICY] BOARD
8-7 DUTIES. (a) The governing board [governor] shall employ an
8-8 [appoint the] executive director of the department who [with the
8-9 advice and consent of the senate. The executive director] serves
8-10 at the pleasure of the governing board [a two-year term expiring
8-11 February 1 of each odd-numbered year].
8-12 (b) The executive director shall execute a bond payable to
8-13 the state in an amount set by the members of the governing [policy]
8-14 board conditioned on the faithful performance of the duties of the
8-15 position [office]. Premiums for the bond are payable from
8-16 appropriations to the department. The executive director must have
8-17 demonstrated experience in the areas of economic development or
8-18 tourism and executive and organizational ability.
8-19 (c) The executive director shall manage the affairs of the
8-20 department under the direction of the governing board. The
8-21 executive director shall provide administrative support to the
8-22 members of the governing [policy] board that is necessary for the
8-23 performance of the functions of the members.
8-24 (d) The members of the governing [policy] board shall direct
8-25 the activities of the department and, in performing that duty,
9-1 shall establish policy, adopt rules, evaluate the implementation of
9-2 new legislation that affects the department's duties, review and
9-3 comment on the department's budget, prepare an annual report of the
9-4 department's activities, conduct investigations and studies, and
9-5 develop long-range plans for the future goals and needs of the
9-6 department. The members of the policy board may not be involved in
9-7 the daily operation of the department. [Except for duties related
9-8 to the approval and issuance of bonds by the department, the policy
9-9 board may delegate to the executive director the duties of the
9-10 policy board under this chapter and other law that are not covered
9-11 by the description of the members' duties under this subsection.]
9-12 SECTION 11. Subsection (a), Section 481.006, Government
9-13 Code, is amended to read as follows:
9-14 (a) The governing board [executive director] shall establish
9-15 the divisions within the department, which may include:
9-16 (1) an administrative division;
9-17 (2) an information and referral [a promotion and
9-18 marketing] division;
9-19 (3) a research[, planning,] and data services
9-20 division;
9-21 (4) a [domestic] business development division;
9-22 (5) an international trade [business development]
9-23 division;
9-24 (6) a promotion and marketing [job training] division;
9-25 and
10-1 (7) a tourism division.
10-2 SECTION 12. Subchapter A, Chapter 481, Government Code, is
10-3 amended by adding Sections 481.0065 through 481.0068 to read as
10-4 follows:
10-5 Sec. 481.0065. OFFICE OF DEFENSE AFFAIRS. (a) The
10-6 department shall establish and maintain an Office of Defense
10-7 Affairs.
10-8 (b) The Office of Defense Affairs shall:
10-9 (1) conduct a statewide assessment of active military
10-10 installations and current missions to prepare a proactive statewide
10-11 strategy to prevent future defense closures and realignments;
10-12 (2) use the assessment developed under Subdivision (1)
10-13 to assist defense-dependent communities to develop a long-term
10-14 strategy to prepare for future base realignments and closures;
10-15 (3) provide information to defense-dependent
10-16 communities regarding federal actions affecting military
10-17 installations and missions;
10-18 (4) serve as a clearinghouse for defense economic
10-19 adjustment and transition information and activities along with the
10-20 Texas Business and Community Economic Development Clearinghouse;
10-21 and
10-22 (5) provide assistance to defense-dependent
10-23 communities that have experienced a defense-related closure or
10-24 realignment.
10-25 (c) The department may enter into an agreement with a
11-1 private contractor to perform the assessment required under
11-2 Subsection (b)(1).
11-3 Sec. 481.0066. TEXAS STRATEGIC MILITARY PLANNING COMMISSION.
11-4 (a) In this chapter, "commission" means the Texas Strategic
11-5 Military Planning Commission.
11-6 (b) The commission is composed of:
11-7 (1) nine public members, appointed by the governor;
11-8 and
11-9 (2) the following ex officio members:
11-10 (A) the chair of the committee of the Texas
11-11 House of Representatives that has primary jurisdiction of matters
11-12 concerning state, federal, and international relations; and
11-13 (B) the chair of the committee of the Texas
11-14 Senate that has primary jurisdiction of matters concerning veteran
11-15 affairs and military installations.
11-16 (c) The nine public members of the commission serve
11-17 staggered terms of three years with the terms of one-third of the
11-18 members expiring February 1 of each year. A legislative member
11-19 vacates the person's position on the commission if the person
11-20 ceases to be the chair of the applicable legislative committee.
11-21 (d) The governor shall designate the presiding officer of
11-22 the commission from among the members of the commission.
11-23 (e) A public member of the commission is not entitled to
11-24 compensation but is entitled to reimbursement, from commission
11-25 funds, for the travel expenses incurred by the member while
12-1 conducting the business of the commission, as provided by the
12-2 General Appropriations Act. The entitlement of a legislative
12-3 member to compensation or reimbursement for travel expenses is
12-4 governed by the law applying to the member's service in that
12-5 underlying position, and any payments to the member shall be made
12-6 from the appropriate funds of the applicable house of the
12-7 legislature.
12-8 (f) The commission shall meet at least quarterly. The
12-9 commission is a governmental body for purposes of the open meetings
12-10 law, Chapter 551.
12-11 (g) Article 6252-33, Revised Statutes, does not apply to the
12-12 commission.
12-13 (h) The commission shall serve as an advisory committee to
12-14 the Office of Defense Affairs in the department on the effect of
12-15 the military on the economy of this state and make recommendations
12-16 regarding:
12-17 (1) the development of a contingency plan to support
12-18 and promote the military in connection with the possible reduction,
12-19 closure, or conversion of federal military bases in this state;
12-20 (2) the development of policies and plans to support
12-21 the long-term viability and prosperity of the military, active and
12-22 civilian, in this state;
12-23 (3) the development of methods to improve private and
12-24 public employment opportunities for former members of the military
12-25 residing in this state; and
13-1 (4) the compilation of information for use in a
13-2 quarterly economic impact statement prepared by the department
13-3 detailing the effect of the military on the economy of this state.
13-4 Sec. 481.0067. OFFICE OF RURAL AFFAIRS. (a) The department
13-5 shall establish and maintain an Office of Rural Affairs. The
13-6 office shall be headed by a rural affairs director. To be eligible
13-7 to serve as the rural affairs director, a person must have
13-8 demonstrated a strong commitment to and involvement in economic
13-9 development activities in rural areas.
13-10 (b) The Office of Rural Affairs shall:
13-11 (1) develop a rural resource guide and provide the
13-12 information to rural areas through print and electronic media and
13-13 through use of the Texas Business and Community Economic
13-14 Development Clearinghouse;
13-15 (2) provide information to state agencies on the
13-16 effects of proposed policies or actions that affect rural areas;
13-17 (3) cosponsor meetings, to the extent practical, in
13-18 cooperation with public and private educational institutions to
13-19 disseminate information beneficial to rural areas;
13-20 (4) identify potential opportunities for businesses in
13-21 rural areas and assist these businesses to maximize those
13-22 opportunities;
13-23 (5) conduct an analysis of the available federal,
13-24 state, and local government and rural economic development business
13-25 outreach and data services in rural areas of this state by
14-1 examining the availability of:
14-2 (A) computerized economic development databases
14-3 that provide data for existing and prospective businesses and
14-4 communities in rural areas of this state; and
14-5 (B) business information outreach service
14-6 offices or centers that provide comprehensive technical assistance,
14-7 research, consulting services, training, and other services to
14-8 businesses in rural areas; and
14-9 (6) perform any other functions necessary to carry out
14-10 the purposes of this section.
14-11 (c) In administering this section, the department may:
14-12 (1) employ and set the compensation of personnel to
14-13 carry out the Office of Rural Affairs' functions under this
14-14 section; and
14-15 (2) consult with:
14-16 (A) experts and authorities in the fields of
14-17 rural development, economic development, and community development;
14-18 (B) individuals with regulatory, legal,
14-19 economic, or financial expertise, including members of the academic
14-20 community; and
14-21 (C) individuals who represent the public
14-22 interest.
14-23 (d) Each state agency must, on request, furnish the Office
14-24 of Rural Affairs with reports and other information necessary to
14-25 enable the Office of Rural Affairs to carry out the purposes of
15-1 this section.
15-2 (e) The Office of Rural Affairs may accept gifts, grants,
15-3 and donations from sources other than the state for the purpose of
15-4 performing specific projects, studies, or procedures or to provide
15-5 assistance to rural areas.
15-6 (f) Not later than September 1 of each even-numbered year,
15-7 the department shall submit to the governor and the legislature a
15-8 report containing specific information regarding each of the
15-9 functions performed by the Office of Rural Affairs, including
15-10 recommendations regarding issues that affect the rural areas of the
15-11 state.
15-12 Sec. 481.0068. OFFICE OF SMALL BUSINESS ASSISTANCE.
15-13 (a) The Office of Small Business Assistance is an office within
15-14 the department and shall be headed by a small business director.
15-15 (b) The Office of Small Business Assistance shall:
15-16 (1) examine the role of small and historically
15-17 underutilized businesses in the state's economy and the
15-18 contribution of small and historically underutilized businesses in
15-19 generating economic activity, expanding employment opportunities,
15-20 promoting exports, stimulating innovation and entrepreneurship, and
15-21 bringing new and untested products and services to the marketplace;
15-22 (2) serve as the principal focal point in the state
15-23 for small and historically underutilized businesses by:
15-24 (A) providing to the legislature information on
15-25 the effects of proposed policies or actions;
16-1 (B) assisting state agencies in determining the
16-2 impact proposed rules have on small businesses as required by
16-3 Section 2006.002; and
16-4 (C) assisting the agencies in reducing the
16-5 adverse effect that rules have on small businesses, if appropriate;
16-6 (3) evaluate the effectiveness of efforts of state
16-7 agencies and other entities to assist small and historically
16-8 underutilized businesses and make appropriate recommendations to
16-9 the legislature and state agencies to assist the development and
16-10 strengthening of small and historically underutilized businesses;
16-11 (4) identify regulations that inhibit small and
16-12 historically underutilized business development and to the extent
16-13 possible identify conflicting state policy goals;
16-14 (5) determine the availability of financial and other
16-15 resources to small and historically underutilized businesses and
16-16 recommend methods for:
16-17 (A) increasing the availability of equity
16-18 capital and other forms of financial assistance to small and
16-19 historically underutilized businesses;
16-20 (B) generating markets for the goods and
16-21 services of small and historically underutilized businesses;
16-22 (C) providing more effective education,
16-23 training, and management and technical assistance to small and
16-24 historically underutilized businesses; and
16-25 (D) providing assistance to small and
17-1 historically underutilized businesses in complying with federal,
17-2 state, and local laws;
17-3 (6) identify the reasons for small and historically
17-4 underutilized business successes and failures, ascertain the
17-5 related factors that are particularly important in this state, and
17-6 recommend actions for increasing the success rate of small and
17-7 historically underutilized businesses;
17-8 (7) serve as a focal point for receiving comments and
17-9 suggestions concerning state government policies and activities
17-10 that affect small and historically underutilized businesses;
17-11 (8) develop and suggest proposals for changes in state
17-12 policies and activities that adversely affect small and
17-13 historically underutilized businesses;
17-14 (9) provide to state agencies information on the
17-15 effects of proposed policies or actions that affect small and
17-16 historically underutilized businesses;
17-17 (10) provide information and assistance relating to
17-18 establishing, operating, or expanding small and historically
17-19 underutilized businesses;
17-20 (11) assist small and historically underutilized
17-21 businesses by:
17-22 (A) identifying:
17-23 (i) sources of financial assistance for
17-24 those businesses; and
17-25 (ii) financial barriers to those
18-1 businesses;
18-2 (B) working with relevant organizations to
18-3 identify financing programs that aid small businesses in overcoming
18-4 financial barriers;
18-5 (C) matching those businesses with sources of
18-6 financial assistance and credit enhancement; and
18-7 (D) assisting those businesses with the
18-8 preparation of applications for government loans, loan guarantees,
18-9 and credit enhancement programs;
18-10 (12) sponsor meetings, to the extent practicable in
18-11 cooperation with public and private educational institutions, to
18-12 provide training and disseminate information beneficial to small
18-13 and historically underutilized businesses;
18-14 (13) assist small and historically underutilized
18-15 businesses in their dealings with federal, state, and local
18-16 governmental agencies and provide information regarding
18-17 governmental requirements affecting small and historically
18-18 underutilized businesses;
18-19 (14) perform research, studies, and analyses of
18-20 matters affecting the interests of small and historically
18-21 underutilized businesses;
18-22 (15) use available resources within the state, such as
18-23 small business development centers, educational institutions, and
18-24 nonprofit associations, to coordinate the provision of management
18-25 and technical assistance to small and historically underutilized
19-1 businesses in a systematic manner;
19-2 (16) publish newsletters, brochures, and other
19-3 documents containing information useful to small and historically
19-4 underutilized businesses;
19-5 (17) identify successful small and historically
19-6 underutilized business assistance programs provided by other states
19-7 and determine the feasibility of adapting those programs for
19-8 implementation in this state;
19-9 (18) establish an outreach program to make the
19-10 existence of the office known to small and historically
19-11 underutilized businesses and potential clients throughout the
19-12 state;
19-13 (19) enlist the cooperation and assistance of public
19-14 and private agencies, businesses, and other organizations in
19-15 disseminating information about the programs and services provided
19-16 by the state that benefit small businesses and how small businesses
19-17 can participate in or make use of those programs and services;
19-18 (20) defer to the small business stationary source
19-19 assistance program as defined by Section 382.0365, Health and
19-20 Safety Code, on advocacy and technical assistance related to
19-21 environmental programs that regulate small businesses; and
19-22 (21) perform any other functions necessary to carry
19-23 out the purposes of this section.
19-24 (c) Each state agency must, on request, furnish the Office
19-25 of Small Business Assistance with reports and other information
20-1 necessary to enable the Office of Small Business Assistance to
20-2 carry out the purposes of this section.
20-3 (d) The Office of Small Business Assistance may accept
20-4 gifts, grants, and donations from sources other than the state for
20-5 the purpose of performing specific projects and studies or to
20-6 provide assistance to small businesses.
20-7 (e) Not later than September 1 of each even-numbered year,
20-8 the department shall submit to the governor and the legislature a
20-9 report containing specific information regarding each of the
20-10 functions performed by the Office of Small Business Assistance,
20-11 including recommendations regarding issues that affect small
20-12 businesses of the state.
20-13 SECTION 13. Section 481.007, Government Code, is amended to
20-14 read as follows:
20-15 Sec. 481.007. ADVISORY COMMITTEES [BOARDS]. The executive
20-16 director or the governing [policy] board may appoint advisory
20-17 committees to assist the executive director or the governing
20-18 [policy] board in the performance of their duties. A member of an
20-19 advisory committee appointed by the executive director or the
20-20 governing [policy] board may not receive compensation for service
20-21 on the advisory committee. A member appointed under this section
20-22 is entitled to receive reimbursement, subject to any applicable
20-23 limitation on reimbursement provided by the General Appropriations
20-24 Act, for actual and necessary expenses included in performing
20-25 service as a member of the advisory committee.
21-1 SECTION 14. Section 481.008, Government Code, is amended to
21-2 read as follows:
21-3 Sec. 481.008. AUDIT[; REPORT]. (a) The financial
21-4 transactions of the department are subject to audit by:
21-5 (1) the state auditor in accordance with Chapter 321;
21-6 or
21-7 (2) a private auditing firm.
21-8 (b) The state auditor shall inform the presiding officer of
21-9 the governing board when a financial audit of the department is not
21-10 included in the audit plan for the state for a fiscal year. The
21-11 governing board shall ensure that the department is audited under
21-12 Subsection (a)(2) during those fiscal years.
21-13 SECTION 15. Subsections (a), (b), and (c), Section 481.010,
21-14 Government Code, are amended to read as follows:
21-15 (a) The executive director shall employ personnel necessary
21-16 for the performance of department functions. In addition to other
21-17 personnel, the executive director shall employ a human rights
21-18 officer and an internal auditor. The internal auditor shall report
21-19 directly to the governing [policy] board and may consult with the
21-20 executive director or the executive director's designee.
21-21 (b) The executive director shall provide to governing
21-22 [policy] board members and department employees, as often as
21-23 necessary, information regarding their qualifications for office or
21-24 employment under this chapter and their responsibilities under
21-25 applicable laws relating to standards of conduct for state officers
22-1 or employees.
22-2 (c) The governing [policy] board and executive director
22-3 shall jointly develop and implement policies that clearly define
22-4 the respective responsibilities of the members of the governing
22-5 [policy] board and the executive director and staff of the
22-6 department in accordance with this chapter.
22-7 SECTION 16. Subsections (c) and (d), Section 481.012,
22-8 Government Code, are amended to read as follows:
22-9 (c) The governing [policy] board shall prepare and maintain
22-10 a written plan that describes how a person who does not speak
22-11 English can be provided reasonable access to the department's
22-12 programs. The governing [policy] board shall also comply with
22-13 federal and state laws for program and facility accessibility.
22-14 (d) The governing [policy] board by rule shall establish
22-15 methods by which consumers and service recipients are notified of
22-16 the name, mailing address, and telephone number of the department
22-17 for the purpose of directing complaints to the department.
22-18 SECTION 17. Section 481.022, Government Code, is amended to
22-19 read as follows:
22-20 Sec. 481.022. GENERAL DUTIES OF DEPARTMENT. [(a)] The
22-21 department shall [plan, organize, and implement programs for]:
22-22 (1) facilitate the location, expansion, and retention
22-23 of domestic and international business investment to the
22-24 [attracting and locating new businesses in this] state;
22-25 (2) provide statewide toll-free information and
23-1 referrals for business and community economic development
23-2 [encouraging the growth and expansion of existing businesses,
23-3 including tourism, in this state];
23-4 (3) promote and administer business and community
23-5 economic development programs and services in the state [working
23-6 with local governments and organizations to improve their
23-7 communities]; [and]
23-8 (4) provide to businesses in the state assistance with
23-9 exporting products and services to international markets;
23-10 (5) promote the state as a premier tourist and
23-11 business travel destination;
23-12 (6) provide businesses and local communities with
23-13 timely and useful research and data services;
23-14 (7) aggressively market and promote the business
23-15 climate in the state and the state economic development business
23-16 assistance programs and services through the use of available media
23-17 and resources, including the Internet; and
23-18 (8) seek funding of the department programs and
23-19 activities from federal, state, and private sources [emphasizing
23-20 rural economic development].
23-21 [(b) To carry out its duties, the department shall:]
23-22 [(1) promote this state as a location for business
23-23 activity and an attraction for tourism;]
23-24 [(2) prepare and administer a statewide business
23-25 development program designed to create job opportunities and
24-1 increase personal income throughout this state;]
24-2 [(3) prepare and administer a program of
24-3 encouragement, support, and development of small and minority
24-4 business ownership throughout this state;]
24-5 [(4) stimulate the expansion of international markets
24-6 for products and services from this state and encourage foreign
24-7 business development in this state;]
24-8 [(5) assist local governments with advisory and
24-9 technical services in matters relating to community and economic
24-10 development;]
24-11 [(6) provide financial aid to local governments for
24-12 programs authorized by law to receive the assistance;]
24-13 [(7) act as an information center and referral agency
24-14 for information of state and federal programs affecting business
24-15 and local government;]
24-16 [(8) conduct research on problems relating to
24-17 community and economic development in this state;]
24-18 [(9) collect, publish, and disseminate information
24-19 useful to local governments and businesses, including data on
24-20 employment, housing, population characteristics, and land use
24-21 patterns in the state;]
24-22 [(10) encourage cooperation between local governments,
24-23 businesses, and the public, if appropriate;]
24-24 [(11) advise and inform the governor and the
24-25 legislature concerning matters relating to community and economic
25-1 development and make recommendations for necessary action;]
25-2 [(12) coordinate the development of training programs
25-3 between appropriate state agencies and educational institutions to
25-4 prepare this state's labor force to meet changing economic
25-5 circumstances;]
25-6 [(13) work with local governments, local economic
25-7 development organizations, and small business development centers
25-8 to develop a referral system to promote community and economic
25-9 development throughout this state;]
25-10 [(14) plan and implement a concerted, targeted effort
25-11 to more effectively address pressing economic problems and to
25-12 maximize the potential of the border region for the benefit of the
25-13 entire state;]
25-14 [(15) work with local community efforts to use federal
25-15 funds to meet community needs, particularly in providing social and
25-16 emergency services to residents of this state having low incomes;]
25-17 [(16) encourage maquiladora projects; and]
25-18 [(17) pay for tourism and other business recruitment
25-19 expenses.]
25-20 SECTION 18. Section 481.023, Government Code, is amended to
25-21 read as follows:
25-22 Sec. 481.023. ADMINISTRATION OF OTHER STATUTES. (a) The
25-23 department shall perform the administrative duties [formerly
25-24 assigned to the Texas Economic Development Commission including
25-25 duties] prescribed under:
26-1 (1) the Act for Development of Employment, Industrial
26-2 and Health Resources of 1971 (Article 5190.1, Vernon's Texas Civil
26-3 Statutes); and
26-4 (2) [Chapter 696, Acts of the 69th Legislature,
26-5 Regular Session, 1985 (Article 5190.4a, Vernon's Texas Civil
26-6 Statutes), relating to industrial training programs; and]
26-7 [(3)] the Development Corporation Act of 1979 (Article
26-8 5190.6, Vernon's Texas Civil Statutes).
26-9 (b) The department shall perform the administrative duties
26-10 formerly assigned to the Texas Economic Development Commission and
26-11 the Enterprise Zone Board under Chapter 2303.
26-12 (c) The department may not use money from the general
26-13 revenue fund to support the Texas leverage fund [shall perform the
26-14 administrative duties formerly assigned to the Texas Department of
26-15 Community Affairs under Chapter 301, Labor Code, and the community
26-16 development block grant program].
26-17 [(d) Any business or industry seeking employee training,
26-18 retraining, or manpower development services at public expense may
26-19 request assistance from the department. The department shall seek
26-20 advice from the Texas Higher Education Coordinating Board in
26-21 identifying the appropriate institution of higher education to
26-22 provide such services. The rules of the coordinating board
26-23 concerning out-of-district and off-campus courses developed to
26-24 assist industrial start-up and employee upgrading apply in
26-25 providing those services. The department and the coordinating
27-1 board shall ensure that appropriate rules are developed to apply to
27-2 any entities involved in the delivery of education and training for
27-3 industrial start-up and employee upgrading that are not currently
27-4 covered.]
27-5 SECTION 19. Subsections (a) and (f), Section 481.024,
27-6 Government Code, are amended to read as follows:
27-7 (a) The Texas Economic Development Corporation on behalf of
27-8 the state shall carry out the public purposes of this chapter. The
27-9 creation of the corporation does not limit or impair the rights,
27-10 powers, and duties of the department provided by this chapter. The
27-11 corporate existence of the Texas Economic Development Corporation
27-12 begins on the issuance of a certificate of incorporation by the
27-13 secretary of state. The members of the governing [policy] board
27-14 serve ex officio as the board of directors of the corporation. The
27-15 corporation has the powers and is subject to the limitations
27-16 provided for the department by this chapter in carrying out the
27-17 public purposes of this chapter. The corporation has the rights
27-18 and powers of a nonprofit corporation incorporated under the Texas
27-19 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
27-20 Texas Civil Statutes) except to the extent inconsistent with this
27-21 section. The corporation may contract with the department and with
27-22 bond counsel, financial advisors, or underwriters as its board of
27-23 directors considers necessary.
27-24 (f) The [Texas Economic Development Foundation, the] Texas
27-25 Economic Development Corporation[,] and any other corporation whose
28-1 charter specifically dedicates the corporation's activities to the
28-2 benefit of the Texas Department of Economic Development or its
28-3 predecessor agency [Commerce] shall file an annual report of the
28-4 financial activity of the corporation. The annual report shall be
28-5 filed prior to the 90th day after the last day for the
28-6 corporation's fiscal year and shall be prepared in accordance with
28-7 generally accepted accounting principles. The report must include
28-8 a statement of support, revenue, and expenses and change in fund
28-9 balances, a statement of functional expenses, and balance sheets
28-10 for all funds.
28-11 SECTION 20. Subsection (b), Section 481.028, Government
28-12 Code, is amended to read as follows:
28-13 (b) The department shall enter into an agreement as required
28-14 by Subsection (a) with the:
28-15 (1) Department of Agriculture regarding each agency's
28-16 international marketing efforts and business finance programs;
28-17 (2) Texas Workforce [Employment] Commission regarding
28-18 the skills development fund, and the dissemination of
28-19 employment-related data, statistics, and analyses, and the use of
28-20 field offices to distribute information of interest to businesses
28-21 and communities in the state, including applications for Smart Jobs
28-22 grants[, Texas Higher Education Coordinating Board, and Central
28-23 Education Agency regarding each agency's work force development
28-24 efforts and literacy programs];
28-25 (3) General Land Office regarding each agency's rural
29-1 economic development efforts;
29-2 (4) Texas Department of Housing and Community Affairs
29-3 regarding each agency's community development programs;
29-4 (5) Texas Department of Transportation and Parks and
29-5 Wildlife Department regarding each agency's efforts to promote
29-6 tourism;
29-7 (6) Texas Natural Resource Conservation Commission
29-8 regarding small business finance and permits, the marketing of
29-9 recyclable products, and business permits;
29-10 (7) office of the [state] comptroller regarding the
29-11 dissemination of economic data, statistics, [development] and
29-12 analyses and the use of field offices to distribute information to
29-13 businesses and local communities in the state;
29-14 (8) Texas Historical Commission regarding community
29-15 preservation, restoration, and revitalization;
29-16 (9) [Texas Department of Human Services regarding work
29-17 force development;]
29-18 [(10)] General Services Commission regarding providing
29-19 procurement information, certification, and technical assistance to
29-20 small and historically underutilized businesses;
29-21 (10) [(11)] Alternative Fuels Council regarding the
29-22 promotion of alternative fuels; [and]
29-23 (11) [(12)] institutions of higher education regarding
29-24 work force development, literacy, and technology transfer; and
29-25 (12) Texas Agricultural Finance Authority regarding
30-1 the marketing and promotion of the programs administered by the
30-2 authority.
30-3 SECTION 21. Section 481.029, Government Code, is amended to
30-4 read as follows:
30-5 Sec. 481.029. COST RECOVERY. The department shall recover
30-6 the cost of providing direct technical assistance, [and] management
30-7 training services, and other services to businesses and communities
30-8 when reasonable and practical.
30-9 SECTION 22. Subchapter C, Chapter 481, Government Code, is
30-10 amended to read as follows:
30-11 SUBCHAPTER C. TEXAS STRATEGIC ECONOMIC DEVELOPMENT
30-12 PLANNING COMMISSION [POLICY]
30-13 Sec. 481.0301. DEFINITION. In this subchapter, "commission"
30-14 means the Texas Strategic Economic Development Planning Commission.
30-15 Sec. 481.031. COMMISSION [LEGISLATIVE FINDINGS; INTENT].
30-16 (a) The Texas Strategic Economic Development Planning Commission
30-17 is composed of [The legislature finds that]:
30-18 (1) 11 public members appointed by the governor [the
30-19 changing nature of the state's economy requires a more diversified
30-20 approach to promote economic growth and job creation]; [and]
30-21 (2) two senators appointed by the lieutenant governor;
30-22 and
30-23 (3) two representatives appointed by the speaker of
30-24 the house of representatives [the state does not have a long-term
30-25 economic development policy and has suffered from lack of a
31-1 long-term plan in its attempt to resolve the economic problems that
31-2 continue to plague the state].
31-3 (b) The governor shall designate a presiding officer and an
31-4 assistant presiding officer from among the members [It is the
31-5 policy of this state, in the interest of promoting the general
31-6 welfare, to formulate a comprehensive plan for diversifying and
31-7 developing the economy of the state].
31-8 (c) The commission shall meet at least quarterly and shall
31-9 hold special meetings at the call of the governor.
31-10 (d) A public member of the commission is not entitled to
31-11 compensation but is entitled to reimbursement, from amounts
31-12 appropriated to the governor's office, of travel expenses incurred
31-13 by the member while conducting the business of the commission, as
31-14 provided by the General Appropriations Act. The entitlement of a
31-15 legislative member to compensation or reimbursement for travel
31-16 expenses is governed by the law applying to the member's service in
31-17 that underlying position, and any payments to the member shall be
31-18 made from the appropriated funds of the applicable house of the
31-19 legislature.
31-20 (e) The governor's office shall provide the administrative
31-21 support necessary to carry out the purposes of this subchapter.
31-22 The governor may enter into an agreement with a private contractor
31-23 to compile the strategic plan required under Section 481.032.
31-24 (f) The commission shall work with other state agencies that
31-25 affect economic development in the state, including the department,
32-1 the Science and Technology Council, the Texas Department of Housing
32-2 and Community Affairs, the Texas Workforce Commission, and the
32-3 comptroller.
32-4 (g) An affirmative vote of a majority of the entire
32-5 membership of the commission is necessary for an action of the
32-6 commission.
32-7 (h) The commission is a governmental body for purposes of
32-8 the open meetings law, Chapter 551.
32-9 Sec. 481.032. DUTIES OF COMMISSION [AND FUNCTIONS].
32-10 (a) The commission [department] shall:
32-11 (1) develop a comprehensive, long-range domestic and
32-12 international strategic plan for economic development in
32-13 [diversifying and developing the economy of] the state;
32-14 (2) develop strategies to encourage investment in
32-15 rural and distressed areas of the state;
32-16 (3) examine the competitive advantages and
32-17 disadvantages of this state as a place to do business and make
32-18 recommendations for improving the business climate of the state;
32-19 (4) develop measurable economic development goals and
32-20 propose specific courses of action to meet those goals
32-21 [(3) evaluate the performance of existing state economic
32-22 development efforts for consistency and coordination and for their
32-23 effect on job creation and evaluate the long-term benefits to the
32-24 state of those efforts];
32-25 (5) study the potential for establishing a permanent
33-1 mechanism for use by state agencies to communicate on economic
33-2 development issues [(4) review economic development policy
33-3 recommendations made by other agencies or organizations and
33-4 recommend to the governor and legislature those strategies,
33-5 policies, and programs that the department considers to be in the
33-6 best interest of the state];
33-7 (6) [(5)] study the economic development programs and
33-8 policies of other states and determine the feasibility of adapting
33-9 those programs or policies for implementation in this state; and
33-10 (7) study the potential for consolidating certain
33-11 economic development functions and programs.
33-12 (b) The commission may:
33-13 (1) [(6) undertake specialized studies and prepare
33-14 specialized reports;]
33-15 [(7)] hold public hearings and receive recommendations
33-16 from interested persons;
33-17 (2) [(8)] as appropriate, appoint task forces or other
33-18 panels [from within or outside the membership of the department] to
33-19 study and report on specific issues, including international trade
33-20 and direct foreign investment;
33-21 [(9) conduct a biennial review of economic development
33-22 activities in the state;] and
33-23 (3) [(10)] perform other duties and functions
33-24 necessary to carry out the purposes of this chapter.
33-25 Sec. 481.033. STRATEGIC PLAN [POLICY AND PROGRAM
34-1 RECOMMENDATIONS]. (a) Before November 1, 1998, the commission
34-2 shall submit to the governor, lieutenant governor, and speaker of
34-3 the house of representatives a strategic plan for economic
34-4 development. A copy of the strategic plan shall also be
34-5 distributed to other state agencies that impact the economic
34-6 development of the state.
34-7 (b) The governor's office shall provide oversight for the
34-8 implementation of the strategic plan. [The department may
34-9 recommend policies and programs for:]
34-10 [(1) fostering the creation of new businesses,
34-11 including high technology businesses, and the retention and
34-12 expansion of existing business enterprises;]
34-13 [(2) increasing the availability of capital for
34-14 business start-ups and expansions;]
34-15 [(3) encouraging and strengthening local economic
34-16 development efforts and improving coordination between state and
34-17 local economic development activities;]
34-18 [(4) improving the skills of the state's work force
34-19 and enhancing the coordination of state and local job training and
34-20 retraining activities;]
34-21 [(5) improving agricultural productivity and otherwise
34-22 maximizing the state's agricultural capabilities;]
34-23 [(6) attracting new industries and investment to the
34-24 state;]
34-25 [(7) developing the state's university-based and
35-1 private sector research and development resources and obtaining
35-2 additional federal research and development funding;]
35-3 [(8) establishing more effective working relationships
35-4 among state agencies engaged in economic development functions;]
35-5 [(9) increasing the export of the state's agricultural
35-6 products and other goods;]
35-7 [(10) enhancing tourism; and]
35-8 [(11) establishing state economic development offices
35-9 in foreign countries.]
35-10 Sec. 481.034. ABOLITION OF COMMISSION. The Texas Strategic
35-11 Economic Development Planning Commission is abolished and this
35-12 subchapter expires February 1, 1999.
35-13 SECTION 23. The heading to Subchapter D, Chapter 481,
35-14 Government Code, is amended to read as follows:
35-15 SUBCHAPTER D. INTERNATIONAL [WORLD] TRADE
35-16 SECTION 24. Section 481.041, Government Code, is amended to
35-17 read as follows:
35-18 Sec. 481.041. LEGISLATIVE FINDINGS. The legislature finds
35-19 that:
35-20 (1) the development and expansion of international
35-21 trade and the export of products and services from this state to
35-22 foreign purchasers are essential to the economic growth of the
35-23 state and to the full employment, welfare, and prosperity of its
35-24 citizens; and
35-25 (2) the measures authorized and the assistance
36-1 provided by this subchapter, especially with respect to financing,
36-2 are in the public interest and serve a public purpose of the state
36-3 in promoting the economic welfare of the citizens of the state
36-4 [economically by stimulating the expansion of international markets
36-5 for products and services from this state].
36-6 SECTION 25. Section 481.043, Government Code, is amended to
36-7 read as follows:
36-8 Sec. 481.043. GENERAL POWERS AND DUTIES RELATING TO
36-9 INTERNATIONAL [WORLD] TRADE. [(a)] The department shall:
36-10 (1) provide businesses in the state with technical
36-11 assistance, information, and referrals related to the export of
36-12 products and services, including export finance and international
36-13 business practices [assist, promote, encourage, develop, and
36-14 advance economic prosperity and employment throughout this state by
36-15 fostering the expansion of exports of manufactured goods and
36-16 services to foreign purchasers];
36-17 (2) coordinate the representation of exporters in the
36-18 state at international trade shows, missions, marts, seminars, and
36-19 other appropriate promotional venues;
36-20 (3) cooperate and act in conjunction with other public
36-21 and private organizations to promote and advance export trade
36-22 activities in this state; and
36-23 (4) disseminate trade leads to exporters in the state
36-24 through the use of the Internet and other available media.
36-25 [(3) design and implement programs to provide
37-1 financial assistance, particularly to small and medium-sized
37-2 businesses, to support export development;]
37-3 [(4) formulate and develop programs to stimulate and
37-4 encourage increased international trade along the entire border
37-5 region; and]
37-6 [(5) provide financial counseling to potential and
37-7 existing exporters.]
37-8 [(b) In carrying out its duties, the department may:]
37-9 [(1) conduct research and analysis relating to:]
37-10 [(A) foreign commerce;]
37-11 [(B) the manner in which business is conducted
37-12 in foreign marketplaces;]
37-13 [(C) methods of stimulating reverse investment;]
37-14 [(D) international tourism; and]
37-15 [(E) governmental incentives and disincentives
37-16 to foreign trade activity in this state;]
37-17 [(2) accept inquiries from foreign businesses and
37-18 governments and introduce the inquiring businesses or governments
37-19 to the appropriate association or state businesses;]
37-20 [(3) cooperate with other persons in developing
37-21 marketing programs and disseminating information about the state
37-22 economy and the opportunities for and advantages of doing business
37-23 in this state;]
37-24 [(4) represent the interests of state businesses
37-25 engaged in foreign trade and aid others representing those
38-1 interests through trade delegations, missions, marts, seminars, and
38-2 other appropriate promotional methods;]
38-3 [(5) recruit foreign capital investment and encourage
38-4 foreign business development in the state;]
38-5 [(6) encourage travel from foreign countries;]
38-6 [(7) seek funding of the department programs and
38-7 activities from federal, state, local, and private sources;]
38-8 [(8) periodically study and report to the legislature
38-9 on the effect of state tax laws on international trade activity in
38-10 this state;]
38-11 [(9) encourage the development of programs by which
38-12 experienced executives from private businesses volunteer their
38-13 services to the state to aid the development of foreign commerce;]
38-14 [(10) collect and distribute to foreign commercial
38-15 libraries directories, catalogs, brochures, and other information
38-16 of value to foreign businesses considering doing business in this
38-17 state;]
38-18 [(11) provide speakers bureau services for civic
38-19 organizations and other private groups in the state;]
38-20 [(12) develop programs of mutual assistance between
38-21 banks, shipping agents, combination export managers, freight
38-22 forwarders, international consultants, ports, and other trade
38-23 intermediaries of this state;]
38-24 [(13) encourage and assist expansion of international
38-25 trade activities of chambers of commerce, development commissions,
39-1 trade associations, ports, and similar organizations in the state;]
39-2 [(14) establish an export finance awareness program to
39-3 provide information to banking organizations about methods used by
39-4 banks to provide financing for businesses engaged in exporting and
39-5 about other state and federal programs to promote and expedite
39-6 export financing;]
39-7 [(15) provide businesses with counseling and
39-8 management programs, technical assistance, advice, and information
39-9 relating to development of export opportunities and programs;]
39-10 [(16) promote export trading companies;]
39-11 [(17) provide for, in cooperation with trade
39-12 associations, chambers of commerce, or other appropriate private
39-13 entities, the establishment of state offices in Asia, Europe, and
39-14 Central and South America to identify export markets for Texas
39-15 services and products, identify sources of investment capital, and
39-16 otherwise represent the interests of the state; and]
39-17 [(18) impose reasonable fees for its programs,
39-18 services, and publications.]
39-19 [(c) In carrying out its duties and powers, the department
39-20 shall give emphasis and priority to matters relating to trade with
39-21 Mexico.]
39-22 SECTION 26. Subsection (a), Section 481.059, Government
39-23 Code, as amended by Chapters 18 and 602, Acts of the 72nd
39-24 Legislature, Regular Session, 1991, is amended to read as follows:
39-25 (a) The Texas exporters loan fund is a fund in the state
40-1 treasury. The fund consists of appropriations or transfers made to
40-2 the fund, [guarantee] fees, other money received from operation of
40-3 the program established by this section, and interest paid on money
40-4 in the fund. [Notwithstanding Section 481.056 of this code, the
40-5 department may deposit proceeds of bonds issued under this chapter
40-6 in the fund.] Money in the fund may be used to establish a reserve
40-7 fund[,] in an amount determined by the department [as appropriate,
40-8 for bonds issued under this chapter or to insure] and [guarantee
40-9 the bonds in any other manner] to carry out the purposes of this
40-10 section. [Reserve funds for the issuance of bonds under
40-11 Subchapters Q and U may only be created on approval of the Product
40-12 Development Advisory Board or the Product Commercialization
40-13 Advisory Board, as applicable.] If any appropriations are made to
40-14 the department from the general revenue fund to carry out this
40-15 section for a fiscal year, at the end of that fiscal year the
40-16 unexpended balance of those appropriations shall be transferred to
40-17 the Texas exporters loan fund.
40-18 SECTION 27. The heading to Subchapter E, Chapter 481,
40-19 Government Code, is amended to read as follows:
40-20 SUBCHAPTER E. [DOMESTIC] BUSINESS DEVELOPMENT--GENERAL PROVISIONS
40-21 SECTION 28. Section 481.071, Government Code, is amended to
40-22 read as follows:
40-23 Sec. 481.071. LEGISLATIVE FINDINGS. The legislature finds
40-24 that:
40-25 (1) the department should focus business development
41-1 efforts on rural areas, the border region, and small business
41-2 [development and expansion of business, commerce, and industry are
41-3 essential to the economic growth of the state and to the full
41-4 employment, welfare, and prosperity of its citizens]; [and]
41-5 (2) the measures authorized by this subchapter and the
41-6 assistance provided by this subchapter, especially with respect to
41-7 financing, are in the public interest and serve a public purpose of
41-8 the state;
41-9 (3) the economic future of Texas and its citizens
41-10 depends on the ability of businesses to secure low-cost capital
41-11 that promotes the high-quality jobs that improve the living
41-12 standards of all Texans; and
41-13 (4) the department should actively seek private
41-14 funding to supplement the department's marketing and advertising
41-15 efforts [economically by the securing and retaining of private
41-16 business enterprises and the resulting maintenance of a higher
41-17 level of employment, economic activity, and stability].
41-18 SECTION 29. Subchapter E, Chapter 481, Government Code, is
41-19 amended by adding Section 481.0725 to read as follows:
41-20 Sec. 481.0725. GENERAL POWERS AND DUTIES. The department
41-21 shall:
41-22 (1) focus business recruitment, expansion, and
41-23 retention efforts on industry sectors with the highest potential
41-24 for creating high-wage, high-skill jobs;
41-25 (2) provide businesses with site selection assistance
42-1 and communities with investment leads;
42-2 (3) develop a comprehensive business recruitment
42-3 marketing plan;
42-4 (4) participate in international and domestic trade
42-5 shows, trade missions, marketing trips, and seminars; and
42-6 (5) produce and disseminate information through the
42-7 use of available media and resources, including the Internet, to
42-8 promote business assistance programs and the overall business
42-9 climate in the state.
42-10 SECTION 30. Subsection (b), Section 481.073, Government
42-11 Code, is amended to read as follows:
42-12 (b) The governing [policy] board has the powers that are
42-13 necessary to accomplish the purposes of this subchapter, including
42-14 the powers granted to industrial development corporations by
42-15 Section 23 of the Development Corporation Act, except those
42-16 provided by Subsections (a)(7), (8), (9), and (10) of that section,
42-17 and Sections 26, 27, and 29 of that Act.
42-18 SECTION 31. Subsection (a), Section 481.075, Government
42-19 Code, is amended to read as follows:
42-20 (a) The department shall adopt rules to establish criteria
42-21 for determining which users may participate in programs established
42-22 by the department under this subchapter. The department shall
42-23 adopt collateral or security requirements to ensure the full
42-24 repayment of any loan, lease, or installment sale and the solvency
42-25 of any program implemented under this subchapter. The governing
43-1 [policy] board must approve all leases and sale and loan agreements
43-2 made under this subchapter except that the governing [policy] board
43-3 may delegate this approval authority to the executive director.
43-4 SECTION 32. Section 481.077, Government Code, is amended by
43-5 adding Subsection (f) to read as follows:
43-6 (f) The department shall transfer the corporation to the
43-7 private sector not later than May 1, 1998, and may not use money
43-8 from the general revenue fund to support the corporation after May
43-9 1, 1998. The department shall submit a report to the legislature
43-10 and the comptroller detailing the plan for the transfer not later
43-11 than December 1, 1997.
43-12 SECTION 33. The heading to Subchapter H, Chapter 481,
43-13 Government Code, is amended to read as follows:
43-14 SUBCHAPTER H. BUSINESS DEVELOPMENT--PERMIT ASSISTANCE [OFFICE]
43-15 SECTION 34. The heading to Subchapter J, Chapter 481,
43-16 Government Code, is amended to read as follows:
43-17 SUBCHAPTER J. BUSINESS DEVELOPMENT--SMART JOBS FUND PROGRAM
43-18 SECTION 35. Section 481.151, Government Code, is amended to
43-19 read as follows:
43-20 Sec. 481.151. DEFINITIONS. In this subchapter:
43-21 (1) "Business development" includes relocation,
43-22 expansion, turnover, diversification, or technological change.
43-23 (2) "Demand occupation" means an occupation in which,
43-24 as a result of business development, there are or will be positive
43-25 growth-to-replacement ratios within the next 12 to 24 months,
44-1 according to the best available sources of state and local labor
44-2 market information.
44-3 (3) "Emerging occupation" means an occupation that
44-4 arises from forces related to technological changes in the
44-5 workplace and the work of which cannot be performed by workers from
44-6 other occupations without at least two months of customized
44-7 education or training.
44-8 (4) "Employee" means an individual who performs
44-9 services for another under a contract of hire, whether express or
44-10 implied, or oral or written.
44-11 (5) [(4)] "Employer" means a person that employs one
44-12 or more employees.
44-13 (6) [(5)] "Executive director" means the executive
44-14 director of the department.
44-15 (7) [(6)] "Existing employer" means an employer that:
44-16 (A) has been liable to pay contributions under
44-17 Subtitle A, Title 4, Labor Code ([the] Texas Unemployment
44-18 Compensation Act) [(Article 5221b-1 et seq., Vernon's Texas Civil
44-19 Statutes)] for more than one year;
44-20 (B) has employees; and
44-21 (C) is in compliance with the reporting and
44-22 payment requirements of that Act, as determined by the Texas
44-23 Workforce [Employment] Commission.
44-24 (8) [(7)] "Family wage job" means a job that offers:
44-25 (A) wages equal to or greater than the state
45-1 average weekly wage;
45-2 (B) benefits, such as vacation leave, sick
45-3 leave, and insurance coverage;
45-4 (C) reasonable opportunities for continued skill
45-5 development and career path advancement; and
45-6 (D) a substantial likelihood of long-term job
45-7 security.
45-8 (9) [(8)] "In-kind contribution" means a noncash
45-9 contribution of goods and services provided by an employer as all
45-10 or part of the employer's matching share of a grant or project.
45-11 (10) [(9)] "Job" means employment on a basis
45-12 customarily considered full-time for the applicable occupation and
45-13 industry.
45-14 (11) "Manufacturing occupation" means an occupation
45-15 that is involved in the mechanical or chemical transformation of
45-16 materials or substances into new products.
45-17 (12) "Micro-business" means an eligible business with
45-18 not more than 20 employees.
45-19 (13) [(10)] "Minority employer" means a business
45-20 entity at least 51 percent of which is owned by minority group
45-21 members or, in the case of a corporation, at least 51 percent of
45-22 the shares of which are owned by minority group members and that:
45-23 (A) is managed and, in daily operations, is
45-24 controlled by minority group members; and
45-25 (B) is a domestic business entity with a home or
46-1 branch office located in this state and is not a branch or
46-2 subsidiary of a foreign corporation or other foreign business
46-3 entity.
46-4 (14) [(11)] "Minority group members" include:
46-5 (A) African-Americans;
46-6 (B) American Indians;
46-7 (C) Asian-Americans; [and]
46-8 (D) Mexican-Americans and other Americans of
46-9 Hispanic origin; and
46-10 (E) women.
46-11 (15) [(12)] "Program" means the smart jobs fund
46-12 program created under this subchapter.
46-13 (16) [(13)] "Project" means a specific employment
46-14 training project developed and implemented under this subchapter.
46-15 (17) [(14)] "Provider" means a person that provides
46-16 employment-related training. The term includes employers, employer
46-17 associations, labor organizations, community-based organizations,
46-18 training consultants, public and private schools, technical
46-19 institutes, junior or community colleges, senior colleges,
46-20 universities, and proprietary schools, as defined by Section
46-21 132.001, Education Code.
46-22 (18) "Small business" has the meaning assigned that
46-23 term by Section 481.101.
46-24 (19) [(15)] "State average weekly wage" means the
46-25 annual average of the average weekly wage of manufacturing
47-1 production workers in this state as of September 1 of each year, as
47-2 determined by the Texas Workforce [Employment] Commission [under
47-3 Section 3(b), Texas Unemployment Compensation Act (Article 5221b-1,
47-4 Vernon's Texas Civil Statutes)], adjusted for regional variances.
47-5 (20) [(16)] "Targeted industry" means an industry that
47-6 promotes high-skill, high-wage jobs using Texas-available material
47-7 and human resources, as determined by the department.
47-8 (21) [(17)] "Trainee" means a participant in a project
47-9 funded under this subchapter.
47-10 (22) [(18)] "Wages" means all forms of compensation or
47-11 remuneration, excluding benefits, payable for a specific period to
47-12 an employee for personal services rendered by that employee.
47-13 SECTION 36. Section 481.154, Government Code, is amended to
47-14 read as follows:
47-15 Sec. 481.154. FUNDING. (a) The smart jobs fund is
47-16 established as a special trust fund in the custody of the state
47-17 treasurer separate and apart from all public money or funds of this
47-18 state. The fund is composed of:
47-19 (1) money transferred into the fund under Section
47-20 204.123, Labor Code [9e, Texas Unemployment Compensation Act
47-21 (Article 5221b-1 et seq., Vernon's Texas Civil Statutes)];
47-22 (2) gifts, grants, and other donations received by the
47-23 department for the fund; and
47-24 (3) any amounts appropriated by the legislature for
47-25 the program.
48-1 (b) The program is funded through the smart jobs fund.
48-2 (c) Money in the smart jobs fund may be used for program
48-3 administration, marketing expenses, and evaluation of the program.
48-4 These costs of the department in any fiscal year may not exceed
48-5 five percent of the total amount appropriated for the program for
48-6 [funds deposited in the smart jobs fund in] that year.
48-7 (d) If, during any three consecutive months, the balance in
48-8 the smart jobs fund exceeds 0.15 percent of the total taxable wages
48-9 for the four calendar quarters ending the preceding June 30, as
48-10 computed under Section 204.062(c), Labor Code [7(c)(8), Texas
48-11 Unemployment Compensation Act (Article 5221b-5, Vernon's Texas
48-12 Civil Statutes)], the executive director shall immediately transfer
48-13 the excess to the Unemployment Compensation Fund created under
48-14 Section 203.021, Labor Code [9(a), Texas Unemployment Compensation
48-15 Act (Article 5221b-7, Vernon's Texas Civil Statutes)].
48-16 SECTION 37. Section 481.155, Government Code, is amended to
48-17 read as follows:
48-18 Sec. 481.155. Grants. (a) The executive director may award
48-19 grants for projects that meet the requirements of this chapter. It
48-20 is the intent of the legislature that, to the greatest extent
48-21 practicable, money from the smart jobs fund shall be spent in all
48-22 areas of the state. The executive director may award a grant or a
48-23 combination of grants in any fiscal year to a single employer in
48-24 excess of $1,500,000 or at a rate greater than 10 percent of the
48-25 annual wages of the new or existing job being created or retained
49-1 with the grant only if:
49-2 (1) the employer locates or expands in an enterprise
49-3 zone;
49-4 (2) the employer locates or expands in an adversely
49-5 affected defense-dependent community;
49-6 (3) the employer locates or expands in an area having
49-7 an unemployment rate 1-1/2 times greater than the statewide average
49-8 at the time of the application;
49-9 (4) the employer locates or expands in a county with a
49-10 population of less than 75,000;
49-11 (5) at least 25 percent of the employees hired or
49-12 retained by the employer are economically disadvantaged individuals
49-13 as defined by Section 2303.402(c); or
49-14 (6) the employer is a small business or a
49-15 micro-business.
49-16 (b) The executive director shall attempt to ensure that at
49-17 least 20 percent of the total dollar amount of grants awarded under
49-18 the program are awarded to minority employers.
49-19 (c) [(b)] The program is job-driven. A grant may not be
49-20 awarded unless each employer participating in the project certifies
49-21 that:
49-22 (1) a job or job opening exists or will exist at the
49-23 end of the project for which the grant is sought; and
49-24 (2) the job or job opening will be filled by a
49-25 participant in the project.
50-1 (d) [(c)] A grant may not be awarded for a project under
50-2 this section unless each employer participating in the project
50-3 certifies that the starting wage for a new job created through the
50-4 project will be equal to or greater than the prevailing wage for
50-5 that occupation in the local labor market area [greater than 66 2/3
50-6 percent of the state average weekly wage] and that the wage for a
50-7 job existing on the date that the project is scheduled to begin
50-8 will be increased to the greater of:
50-9 (1) three [10] percent for a small business or five
50-10 percent for a business that is not a small business over the wage
50-11 in effect on the day before the date on which the project is
50-12 scheduled to begin for that job; or
50-13 (2) 100 percent of the prevailing wage for that
50-14 occupation in the local labor market area [75 percent of the state
50-15 average weekly wage].
50-16 (e) [(d)] An employer may apply for a grant under this
50-17 chapter, and an employer who is a micro-business may request a
50-18 modification of the requirements provided by Subsection (d) and
50-19 Section 481.159(c), if:
50-20 (1) the employer is required to reduce or eliminate
50-21 the employer's work force because of reductions in overall
50-22 employment within an industry;
50-23 (2) [or] a substantial change in the skills required
50-24 to continue the employer's business exists because of technological
50-25 changes; or
51-1 (3) other reasonable factors, as determined by[. In
51-2 awarding a grant under this subsection,] the executive director,
51-3 exist [may modify the requirements of Subsection (c)].
51-4 (f) Grants awarded under this section [subsection] for which
51-5 the executive director has modified the requirements of Subsection
51-6 (d) [(c)] may not, in any fiscal year, exceed 10 percent of the
51-7 total dollar amount of grants awarded under the program in that
51-8 year.
51-9 (g) [(e)] Unless modified by the executive director under
51-10 rules adopted by the policy board, a grant may not be awarded for a
51-11 project unless each employer participating in the project certifies
51-12 that it will continue to spend on nonmanagerial training an amount
51-13 from private sources equal to the average amount spent by that
51-14 employer on such training for the most recent two-year period.
51-15 (h) [(f)] A grant may not be awarded for a project if the
51-16 project will impair existing contracts for services or collective
51-17 bargaining agreements, except that a project inconsistent with the
51-18 terms of a collective bargaining agreement may be undertaken with
51-19 the written concurrence of the collective bargaining unit and the
51-20 employer or employers who are parties to the agreement.
51-21 (i) [(g)] During each state fiscal year the executive
51-22 director shall attempt to ensure that at least 50 percent of the
51-23 total dollar amount of grants awarded under this section is awarded
51-24 to small businesses, as defined by Section 481.101.
51-25 (j) [(h)] In awarding a grant under this section, the
52-1 executive director shall give priority to a project that is located
52-2 in an enterprise zone as defined by Section 2303.003.
52-3 SECTION 38. Subsection (a), Section 481.156, Government
52-4 Code, is amended to read as follows:
52-5 (a) The following may apply for a grant under this
52-6 subchapter:
52-7 (1) one or more employers to secure training for
52-8 demand occupations, emerging occupations, or manufacturing
52-9 occupations [in a particular industry];
52-10 (2) one or more employers acting in partnership with
52-11 an employer organization, labor organization, or community-based
52-12 organization to secure training for demand occupations, emerging
52-13 occupations, or manufacturing occupations [in a particular
52-14 industry]; or
52-15 (3) one or more employers acting in partnership with a
52-16 consortium composed of [one or] more than one provider [providers]
52-17 to secure training for demand occupations, emerging occupations, or
52-18 manufacturing occupations [in a particular industry].
52-19 SECTION 39. Subsection (c), Section 481.159, Government
52-20 Code, is amended to read as follows:
52-21 (c) Each contract must provide a schedule for payment of
52-22 smart jobs fund money. Twenty-five percent of allowable
52-23 expenditures [the grant award] shall be withheld by the department
52-24 for 90 days after the date of completion of the contract [project].
52-25 If at least 85 percent [all] of the trainees in the project have
53-1 been retained in employment for that 90-day period and have
53-2 successfully achieved the skills and competencies, wage
53-3 requirements, and other contractual obligations, the amount of
53-4 allowable expenditures [the grant award] withheld shall be remitted
53-5 to the employer. [For each trainee who is not retained in
53-6 employment for that 90-day period, the amount withheld shall be
53-7 reduced by the amount of the training costs for that trainee that
53-8 is derived from grant money, and any balance shall be remitted to
53-9 the employer.] If there is a negative balance, the employer is
53-10 liable for the amount of the negative balance and shall remit that
53-11 amount to the department not later than the 30th day after the date
53-12 on which the employer is notified of the negative balance by the
53-13 department.
53-14 SECTION 40. Subsection (b), Section 481.160, Government
53-15 Code, is amended to read as follows:
53-16 (b) The annual report must include for that fiscal year:
53-17 (1) the number of employers receiving grants under the
53-18 program;
53-19 (2) the total amount of grants awarded;
53-20 (3) the value, expressed in dollars and as a
53-21 percentage of total training expenditures, of matching
53-22 contributions made by employers;
53-23 (4) the number of small businesses, as defined by
53-24 Section 481.101(3), that receive grants under the program and the
53-25 total amount of the grants awarded to those businesses;
54-1 (5) the number of businesses located in enterprise
54-2 zones, as that term is defined by Chapter 2303, that receive grants
54-3 under the program and the total amount of the grants awarded to
54-4 those businesses;
54-5 (6) the geographical distribution of employers
54-6 receiving grants under the program;
54-7 (7) the total number of jobs created, enhanced, or
54-8 retained under the program, reported by region of the state and by
54-9 occupation;
54-10 (8) the wage levels of trainees entering or returning
54-11 to the work force, broken down by current employees undergoing
54-12 retraining and new hires, at three months and[,] one year[, and
54-13 three years] after the conclusion of their training;
54-14 (9) the number and percentage of participating
54-15 employers that provide workers' compensation insurance coverage and
54-16 the number and percentage of employees covered;
54-17 (10) the number and percentage of participating
54-18 employers that offer health care insurance coverage and the number
54-19 and percentage of employees covered;
54-20 (11) the number and percentage of women employers and
54-21 minority employers receiving grants under the program and the total
54-22 amount of the grants awarded, broken out by group;
54-23 (12) the number and percentage of women, minority
54-24 group members, and disabled individuals participating as trainees
54-25 in training projects, broken out by group; and
55-1 (13) the number and percentage of women private
55-2 providers and private providers who are minority group members
55-3 utilized by employers in training projects, broken out by group.
55-4 SECTION 41. Section 481.172, Government Code, is amended to
55-5 read as follows:
55-6 Sec. 481.172. DUTIES. The department shall:
55-7 (1) promote and advertise within the United States and
55-8 in foreign countries, by radio, television, newspaper, the
55-9 Internet, and other means considered appropriate, tourism in this
55-10 state by non-Texans, including persons from foreign countries, and
55-11 distribute promotional materials through appropriate distribution
55-12 channels [agencies, including the United States Travel and Tourism
55-13 Agency];
55-14 (2) represent the state in domestic and international
55-15 travel trade shows, trade missions, and seminars;
55-16 (3) encourage travel by Texans to this state's scenic,
55-17 historical, natural, agricultural, educational, recreational, and
55-18 other attractions;
55-19 [(3) coordinate and stimulate orderly and accelerated
55-20 development of tourist attractions throughout this state;]
55-21 (4) conduct a public relations campaign to create a
55-22 responsible and accurate national and international image of this
55-23 state;
55-24 (5) use current market research to develop a tourism
55-25 marketing plan to increase travel to the state by domestic and
56-1 international visitors;
56-2 (6) develop methods to attract tourist attractions to
56-3 the state;
56-4 (7) assist communities to develop tourist attractions;
56-5 and
56-6 (8) cooperate fully with the Parks and Wildlife
56-7 Department, the Texas Department of Transportation, the Texas
56-8 Historical Commission, and the Texas Commission on the Arts in all
56-9 matters relating to promotion of tourism[;]
56-10 [(6) cooperate with the Texas Transportation
56-11 Commission in the administration of the commission's collateral
56-12 program of highway map distribution and operation of travel
56-13 information bureaus and other tourist-related functions of the
56-14 commission; and]
56-15 [(7) encourage communities, organizations, and
56-16 individuals in this state to cooperate with its program by their
56-17 activities and use of their own funds and collaborate with those
56-18 organizations and other governmental entities in the pursuit of the
56-19 objectives of this subchapter].
56-20 SECTION 42. Subsection (b), Section 481.174, Government
56-21 Code, is amended to read as follows:
56-22 (b) The governing [policy] board shall adopt rules to
56-23 implement the sale of advertisements under Subsection (a),
56-24 including rules regulating:
56-25 (1) the cost of advertisements;
57-1 (2) the type of products or services that may be
57-2 advertised;
57-3 (3) the size of advertisements; and
57-4 (4) refunds on advertisements that are not run.
57-5 SECTION 43. The heading to Subchapter N, Chapter 481,
57-6 Government Code, is amended to read as follows:
57-7 SUBCHAPTER N. BUSINESS DEVELOPMENT--[HISTORICALLY UNDERUTILIZED
57-8 BUSINESS AND SMALL BUSINESS] LINKED DEPOSIT PROGRAM
57-9 SECTION 44. Chapter 481, Government Code, is amended by
57-10 adding Subchapters K and P to read as follows:
57-11 SUBCHAPTER K. INFORMATION AND REFERRAL
57-12 Sec. 481.166. LEGISLATIVE FINDINGS. The legislature finds
57-13 that:
57-14 (1) economic development programs and services are
57-15 located in a number of state agencies;
57-16 (2) businesses and communities need a single point of
57-17 contact on business and community economic development programs and
57-18 services; and
57-19 (3) state agencies need to work together to provide
57-20 outreach and assistance to local governments and businesses.
57-21 Sec. 481.167. TEXAS BUSINESS AND COMMUNITY ECONOMIC
57-22 DEVELOPMENT CLEARINGHOUSE. (a) The department shall establish the
57-23 Texas Business and Community Economic Development Clearinghouse to
57-24 provide information and assistance to businesses and communities in
57-25 the state through the use of a statewide toll-free telephone
58-1 service.
58-2 (b) The clearinghouse shall collect and disseminate
58-3 information on federal, state, local, and private:
58-4 (1) business development programs, including financial
58-5 assistance and business incentive programs;
58-6 (2) business development services, including technical
58-7 assistance, workshops, business incubators, training, and useful
58-8 publications;
58-9 (3) rural and urban community economic development
58-10 programs, including loans, grants, and other funding sources;
58-11 (4) rural and urban community economic development
58-12 services, including technical assistance, workshops, training, and
58-13 useful publications;
58-14 (5) small business programs and services and useful
58-15 publications;
58-16 (6) defense economic adjustment programs and services
58-17 and useful publications; and
58-18 (7) international trade programs, services, and useful
58-19 publications.
58-20 (c) The clearinghouse shall provide access to the
58-21 information compiled under this subchapter in a user-friendly
58-22 format through the use of the Internet.
58-23 (d) The department shall obtain from other state agencies
58-24 appropriate information needed by the department to carry out its
58-25 duties under this subchapter.
59-1 (e) The comptroller shall assist the department in
59-2 furthering the purposes of this subchapter by allowing the
59-3 department to use the field offices and personnel of the
59-4 comptroller to disseminate brochures, documents, and other
59-5 information useful to businesses in the state.
59-6 SUBCHAPTER P. RESEARCH AND DATA SERVICES
59-7 Sec. 481.211. POWERS AND DUTIES. The department shall:
59-8 (1) compile and update demographic and economic
59-9 information on the state;
59-10 (2) develop and update information products for local
59-11 communities on community economic development issues and practices
59-12 that encourage regional cooperation; and
59-13 (3) compile and disseminate information on economic
59-14 and industrial development trends and issues, including NAFTA,
59-15 emerging industries, and patterns of international trade and
59-16 investment.
59-17 Sec. 481.212. COMPILATION AND DISTRIBUTION OF DATA AND
59-18 RESEARCH. (a) To serve as a one-stop center for business-related
59-19 information, the department shall obtain from other state agencies
59-20 and organizations, including the comptroller and the Texas
59-21 Workforce Commission, business-related statistics and data.
59-22 (b) To maximize the accessibility of business-related data,
59-23 the department shall create a web site to publish business-related
59-24 information on the Internet. The web site must provide connections
59-25 to other business-related web sites.
60-1 (c) The department may charge a reasonable access fee in
60-2 connection with this subchapter.
60-3 SECTION 45. Section 484.001, Government Code, is amended to
60-4 read as follows:
60-5 Sec. 484.001. ESTABLISHMENT. The Texas Manufacturing
60-6 Institute shall be established as a nonprofit corporation,
60-7 organized under the Texas Non-Profit Corporation Act (Article
60-8 1396-1.01 et seq., Vernon's Texas Civil Statutes), to carry out the
60-9 purposes of this chapter [consists of governmental agencies,
60-10 educational institutions, and other entities, involved in the
60-11 promotion of manufacturing, that join as members of the institute].
60-12 SECTION 46. Section 484.002, Government Code, is amended to
60-13 read as follows:
60-14 Sec. 484.002. DUTIES. The institute shall:
60-15 (1) identify needs within Texas' manufacturing
60-16 infrastructure, work to meet those needs, promote Texas'
60-17 manufacturing strengths and capabilities, and communicate the
60-18 importance of manufacturing to the state's economic future;
60-19 (2) develop a program of activities that will improve
60-20 Texas' manufacturing capabilities by enhancing existing research,
60-21 educational, and technical training programs aimed at developing
60-22 and transferring new manufacturing technologies and at increasing
60-23 the skilled work force in manufacturing;
60-24 (3) take all opportunities for cooperation among
60-25 manufacturing programs of participating [its member] institutions;
61-1 (4) encourage the development of the statewide
61-2 manufacturing program among participating [its member]
61-3 institutions, including the areas of microelectronics, electronics
61-4 assembly, automation and robotics, concurrent engineering, computer
61-5 integrated manufacturing, artificial intelligence applications, and
61-6 flexible manufacturing systems; and
61-7 (5) seek opportunities to facilitate cooperative
61-8 efforts among participating institutions [members of the
61-9 institute], other educational institutions in this state, private
61-10 research organizations, industry, and federal laboratories.
61-11 SECTION 47. Section 484.003, Government Code, is amended to
61-12 read as follows:
61-13 Sec. 484.003. Governing [POLICY] BOARD. (a) The institute
61-14 is governed by an initial [a policy] board of directors composed of
61-15 the executive director of the Texas Department of Economic
61-16 Development or the director's designee and one member appointed by
61-17 the lieutenant governor, one member appointed by the speaker of the
61-18 house of representatives, and one member appointed by each entity
61-19 participating in the institute [one member appointed by each member
61-20 institution]. The bylaws of the corporation shall provide for a
61-21 permanent board of directors, which must include the executive
61-22 director of the Texas Department of Economic Development or the
61-23 director's designee, a member appointed by the lieutenant governor,
61-24 and a member appointed by the speaker.
61-25 (b) The board of directors:
62-1 (1) shall submit an annual budget for the institute to
62-2 the Legislative Budget Board;
62-3 (2) shall submit an annual report for the institute to
62-4 the governor, the lieutenant governor, the speaker of the house of
62-5 representatives, and the executive director of the Texas Department
62-6 of Economic Development by December 1 of each year. The report
62-7 shall detail the efforts made by the institute to fulfill the
62-8 duties outlined in this chapter and include specific information on
62-9 the outcome of those efforts; and
62-10 (3) is subject to Chapter 551. [The policy board
62-11 shall elect the chairman from among the policy board's members.
62-12 The chairman serves a two-year term. A person who has been
62-13 chairman is not eligible to be elected chairman. The policy board
62-14 shall establish policies and strategies necessary for the institute
62-15 to accomplish the purposes of this chapter.]
62-16 SECTION 48. Section 484.005, Government Code, is amended to
62-17 read as follows:
62-18 Sec. 484.005. PUBLIC [AND PRIVATE] FUNDS. The Texas
62-19 Department of Economic Development may enter into performance-based
62-20 contracts with the institute for the purpose of providing [may
62-21 receive] state-appropriated funds for use [and use the funds] as
62-22 matching funds for federal grants for [proposals and contracts to
62-23 provide specialized equipment and facilities for members of the
62-24 institute and to assist with technology transfer to Texas industry,
62-25 and as seed funds for new] programs and purposes within the scope
63-1 of the institute. The contract must adequately provide for the
63-2 department's oversight of the use of state funds to ensure that
63-3 those funds are being used by the institute in accordance with the
63-4 contract. The institute may accept gifts, donations, and grants,
63-5 including federal funds, to support its purposes and programs.
63-6 SECTION 49. Chapter 484, Government Code, is amended by
63-7 adding Sections 484.008, 484.009, and 484.010 to read as follows:
63-8 Sec. 484.008. INFORMATION CONFIDENTIAL. (a) Information
63-9 relating to a product or process and the application or use of a
63-10 product or process, technological and scientific information,
63-11 including computer programs, and manufacturing and business systems
63-12 and processes of the customer, developed in whole or part by a
63-13 customer of the institute, are confidential and are not subject to
63-14 disclosure under state law or otherwise, regardless of whether the
63-15 product or process is patentable or capable of being registered
63-16 under copyright or trademark laws or has a potential for being
63-17 sold, traded, or licensed for a fee.
63-18 (b) Nothing in this chapter prevents or restricts the
63-19 institute from obtaining information relating to a product or
63-20 process from an applicant or recipient of institute services or
63-21 from obtaining information related to the results of services
63-22 provided to the customer.
63-23 Sec. 484.009. IMMUNITY FROM LIABILITY. (a) A member of the
63-24 board or another person acting on behalf of the institute in
63-25 executing a contract, commitment, or agreement under this chapter
64-1 is not personally liable on the contract, commitment, or agreement.
64-2 (b) A member of the board or another person acting on behalf
64-3 of the institute is not personally liable for damage or injury
64-4 resulting from the performance of duties under this chapter.
64-5 Sec. 484.010. AUDIT. The institute is subject to audit by
64-6 the state auditor.
64-7 SECTION 50. Section 2006.002, Government Code, is amended by
64-8 adding Subsection (f) to read as follows:
64-9 (f) To reduce an adverse effect of rules on
64-10 micro-businesses, a state agency may adopt provisions concerning
64-11 micro-businesses similar to those outlined in Subsection (b) for
64-12 small businesses.
64-13 SECTION 51. (a) Sections 481.0075, 481.026, 481.042,
64-14 481.044, 481.046, 481.048 through 481.058, 481.060, 481.061,
64-15 481.074, 481.078, 481.081 through 481.0831, 481.0841 through
64-16 481.086, 481.088 through 481.093, 483.001 through 483.006, 484.004,
64-17 and 484.006 through 484.007, Government Code, are repealed.
64-18 (b) Subchapters G, I, M, Q, R, S, T, U, V, X, and Y, Chapter
64-19 481, Government Code, are repealed.
64-20 (c) Subchapter AA, Chapter 481, Government Code, as added by
64-21 Chapter 899, Acts of the 73rd Legislature, 1993, is repealed.
64-22 SECTION 52. (a) This Act takes effect September 1, 1997.
64-23 (b) The Texas Department of Commerce is abolished and its
64-24 powers and duties are transferred to the Texas Department of
64-25 Economic Development. A reference in law to the Texas Department
65-1 of Commerce means the Texas Department of Economic Development.
65-2 (c) The terms of office of the members of the policy board
65-3 of the Texas Department of Commerce expire on the effective date of
65-4 this Act. As soon as possible after the effective date of this
65-5 Act, the governor shall make appointments to the governing board of
65-6 the Texas Department of Economic Development. In making those
65-7 appointments, the governor shall appoint three members to terms
65-8 expiring February 1, 1999, three to terms expiring February 1,
65-9 2001, and three to terms expiring February 1, 2003.
65-10 (d) The person appointed to perform the duties of executive
65-11 director of the Texas Department of Commerce abolished by this Act
65-12 is eligible to serve as the executive director of the Texas
65-13 Department of Economic Development.
65-14 (e) The governor or the person appointed by the governor to
65-15 be the presiding officer of the governing board of the Texas
65-16 Department of Economic Development may designate a person to
65-17 perform ministerial duties necessary for posting notice of and
65-18 holding the first meeting of the governing board of the Texas
65-19 Department of Economic Development.
65-20 (f) The Texas Department of Economic Development has all the
65-21 powers and duties provided by law and all the property, funds,
65-22 rules, employees, unspent appropriations, documents, rights, and
65-23 obligations of the abolished Texas Department of Commerce, except
65-24 to the extent the laws governing the Texas Department of Commerce's
65-25 powers and duties are amended by this Act.
66-1 (g) The rules, policies, procedures, and decisions of the
66-2 Texas Department of Commerce are continued in effect as rules,
66-3 policies, procedures, and decisions of the Texas Department of
66-4 Economic Development until superseded by a rule or other
66-5 appropriate action of the Texas Department of Economic Development.
66-6 (h) The validity of a rule, form, or procedure adopted,
66-7 contract or acquisition made, proceeding begun, obligation
66-8 incurred, right accrued, or other action taken by or in connection
66-9 with the authority of the Texas Department of Commerce before it is
66-10 abolished under Subsection (b) of this section is not affected by
66-11 this Act. To the extent those actions continue to have any effect
66-12 on or after September 1, 1997, they are considered to be the
66-13 actions of the Texas Department of Economic Development.
66-14 (i) As soon as possible after the effective date of this
66-15 Act, the governor shall appoint the initial public members of the
66-16 Texas Strategic Military Planning Commission. In making the
66-17 initial appointments, the governor shall designate three members
66-18 for terms expiring February 1, 1998, three members for terms
66-19 expiring February 1, 1999, and three members for terms expiring
66-20 February 1, 2000.
66-21 (j) As soon as possible after the effective date of this
66-22 Act, the governor, the lieutenant governor, and the speaker of the
66-23 house of representatives shall appoint the members of the Texas
66-24 Strategic Economic Development Planning Commission.
66-25 (k) The Texas Department of Economic Development shall
67-1 conduct a study to determine when the Texas Manufacturing Institute
67-2 can become a self-supporting entity no longer requiring
67-3 state-appropriated funds. The department shall issue the report to
67-4 the governor, lieutenant governor, speaker of the house of
67-5 representatives, and director of the Legislative Budget Board not
67-6 later than December 1, 1997.
67-7 (l) On May 1, 1998, or an earlier date provided by an
67-8 interagency agreement between the Texas Department of
67-9 Transportation and the Texas Department of Economic Development,
67-10 the travel information program operated by the Texas Department of
67-11 Transportation, other than the operation of the Travel Information
67-12 Centers and the production and publication of the Texas Highways
67-13 magazine, is transferred to the Texas Department of Economic
67-14 Development.
67-15 (m) The Texas Department of Economic Development shall use
67-16 existing stationery, supplies, promotional materials, and other
67-17 similar items formerly used by the Texas Department of Commerce
67-18 until the supply of the items is exhausted.
67-19 SECTION 53. The importance of this legislation and the
67-20 crowded condition of the calendars in both houses create an
67-21 emergency and an imperative public necessity that the
67-22 constitutional rule requiring bills to be read on three several
67-23 days in each house be suspended, and this rule is hereby suspended.
S.B. No. 932
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 932 passed the Senate on
April 16, 1997, by a viva-voce vote; May 20, 1997, Senate refused
to concur in House amendments and requested appointment of
Conference Committee; May 21, 1997, House granted request of the
Senate; June 1, 1997, Senate adopted Conference Committee Report by
a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 932 passed the House, with
amendments, on May 16, 1997, by a non-record vote; May 21, 1997,
House granted request of the Senate for appointment of Conference
Committee; June 1, 1997, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor