By Sibley                                        S.B. No. 932

      75R6475 MLS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to abolishing the Texas Department of Commerce and

 1-3     transferring its powers and duties to the newly created Texas

 1-4     Department of Economic Development and Tourism and to certain other

 1-5     economic development programs in the state.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  The heading to Chapter 481, Government Code, is

 1-8     amended to read as follows:

 1-9          CHAPTER 481. TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT AND

1-10                             TOURISM [COMMERCE]

1-11           SECTION 2.  Section 481.001, Government  Code, is amended to

1-12     read as follows:

1-13           Sec. 481.001.  DEFINITIONS.  In this chapter:

1-14                 (1)  "Governing [Policy] board" means the governing

1-15     [policy] board of [to] the department.

1-16                 (2)  "Bond" includes a note, draft, bill, warrant,

1-17     debenture, certificate, or other evidence of indebtedness.

1-18                 (3)  ["Border region" means the area composed of the

1-19     counties of Brewster, Cameron, Culberson, Dimmit, El Paso, Hidalgo,

1-20     Hudspeth, Jeff Davis, Kinney, La Salle, Maverick, Presidio, Starr,

1-21     Terrell, Val Verde, Webb, Willacy, Zapata, and Zavala.]

1-22                 [(4)]  "Department" means the Texas Department of

1-23     Economic Development and Tourism [Commerce].

1-24           SECTION 3.  Section 481.002, Government Code, is amended to

 2-1     read as follows:

 2-2           Sec. 481.002.  DEPARTMENT.  The Texas Department of Economic

 2-3     Development and Tourism [Commerce] is an agency of the state.

 2-4           SECTION 4.  Section 481.003, Government Code, is amended to

 2-5     read as follows:

 2-6           Sec. 481.003.  SUNSET PROVISION.  The Texas Department of

 2-7     Economic Development and Tourism [Commerce] is subject to Chapter

 2-8     325 (Texas  Sunset Act). Unless continued in existence as provided

 2-9     by that chapter, the department is abolished and this chapter

2-10     expires September 1, 2001.

2-11           SECTION 5.  Section 481.004, Government Code, is amended to

2-12     read as follows:

2-13           Sec. 481.004.  GOVERNING [POLICY] BOARD.  (a)  The governing

2-14     [policy] board is composed of nine[:]

2-15                 [(1)  six] public members appointed by the governor

2-16     with the advice and consent of the senate, which members shall be

2-17     appointed to give geographical representation on the governing

2-18     [policy] board to all regions of the state[; and]

2-19                 [(2)  the following ex officio members:]

2-20                       [(A)  the chairperson of the State Job Training

2-21     Coordinating Council and the chairperson shall in no event be

2-22     permitted to claim or receive state per diem for service on the

2-23     policy board;]

2-24                       [(B)  the presiding officer of the International

2-25     Trade Commission; and]

2-26                       [(C)  the presiding officer of the Texas-Mexico

2-27     Authority].

 3-1           (b)  Members [Appointed members] of the governing [policy]

 3-2     board serve for six-year terms with the terms of three [two]

 3-3     members expiring February 1 of each odd-numbered year. [Ex officio

 3-4     members have the same powers and duties as appointed members.]

 3-5           (c)  Appointments to the governing [policy] board shall be

 3-6     made without regard to the race, color, handicap, sex, religion,

 3-7     age, or national origin of the appointees.

 3-8           (d)  In making appointments under this section, the governor

 3-9     shall attempt to include members of different minority groups

3-10     including females, African Americans, Hispanic Americans, Native

3-11     Americans, Asian Americans, and persons who are disabled.

3-12           (e)  At least one member of the governing [policy] board must

3-13     be a resident of a county with a population of less than 200,000,

3-14     at least one other member must have experience in international

3-15     trade, at least one other member must have experience in small

3-16     business, and at least one other member must have experience in

3-17     tourism [30,000].

3-18           SECTION 6.  Section 481.0041, Government Code, is amended to

3-19     read as follows:

3-20           Sec. 481.0041.  REMOVAL OF GOVERNING [POLICY] BOARD MEMBERS.

3-21     (a)  It is a ground for removal from the governing [policy] board

3-22     if a member:

3-23                 (1)  does not have at the time of appointment the

3-24     qualifications required by Section 481.0042;

3-25                 (2)  does not maintain during service on the governing

3-26     [policy] board the qualifications required by Section 481.0042;

3-27                 (3)  violates a prohibition established by Section

 4-1     481.0042;

 4-2                 (4)  cannot discharge the member's duties for a

 4-3     substantial part of the term for which the member is appointed

 4-4     because of illness or disability;  or

 4-5                 (5)  is absent from more than half of the regularly

 4-6     scheduled governing [policy] board meetings that the member is

 4-7     eligible to attend during a calendar year unless the absence is

 4-8     excused by majority vote of the governing [policy] board.

 4-9           (b)  The validity of an action of the governing [policy]

4-10     board is not affected by the fact that it is taken when a ground

4-11     for removal of a governing [policy] board member exists.

4-12           (c)  If the executive director has knowledge that a potential

4-13     ground for removal exists, the executive director shall notify the

4-14     presiding officer of the governing [policy] board of the ground.

4-15     The presiding officer shall then notify the governor that a

4-16     potential ground for removal exists.

4-17           SECTION 7.  Sections 481.0042(a), (b), and (e), Government

4-18     Code, are amended to read as follows:

4-19           (a)  A person may not serve as a public member of the

4-20     governing [policy] board or be the executive director or an

4-21     employee of the department if the person:

4-22                 (1)  is employed by, participates in the management of,

4-23     or is a paid consultant of a business entity that contracts with

4-24     the department;

4-25                 (2)  owns or controls, directly or indirectly, more

4-26     than a 10 percent interest in a business entity or other

4-27     organization that contracts with the department;

 5-1                 (3)  uses or receives a substantial amount of tangible

 5-2     goods, services, or funds from the department, other than

 5-3     compensation or reimbursement authorized by law for employee

 5-4     salaries and benefits or for governing [policy] board membership,

 5-5     attendance, and expenses; or

 5-6                 (4)  is an officer, employee, or paid consultant of a

 5-7     trade association of businesses that contracts with the department.

 5-8           (b)  A person may not serve as a public member of the

 5-9     governing [policy] board or be the executive director or an

5-10     employee of the department if the person's spouse:

5-11                 (1)  participates in the management of or is a paid

5-12     consultant of a business entity that contracts with the department;

5-13                 (2)  owns or controls, directly or indirectly, more

5-14     than a 10 percent interest in a business entity or other

5-15     organization that contracts with the department;

5-16                 (3)  uses or receives a substantial amount of tangible

5-17     goods, services, or funds from the department;  or

5-18                 (4)  is an officer, manager, or paid consultant of a

5-19     trade association of businesses that contracts with the department.

5-20           (e)  A person may not be a member of the governing [policy]

5-21     board or the executive director or an employee of the department if

5-22     the person is required to register as a lobbyist under Chapter

5-23     305[, Government Code,] because of the person's activities for

5-24     compensation on behalf of a business entity that has an interest in

5-25     a contract with the department or a profession related to the

5-26     operation of the department.

5-27           SECTION 8.  Section 481.0043, Government Code, is amended to

 6-1     read as follows:

 6-2           Sec. 481.0043. OFFICERS; COMPENSATION; MEETINGS.  (a) The

 6-3     governor designates the presiding officer of the governing [policy]

 6-4     board.  The governing [policy] board shall elect from among its

 6-5     members an assistant presiding officer and a secretary.

 6-6           (b)  The governing [policy] board shall meet at least

 6-7     quarterly.

 6-8           (c)  A member of the governing [policy] board may not receive

 6-9     compensation for service on the governing [policy] board.  A member

6-10     is  entitled to receive reimbursement, subject to any applicable

6-11     limitation on reimbursement provided by the General Appropriations

6-12     Act, for actual and necessary expenses incurred in performing

6-13     services as a member of the governing [policy] board.

6-14           (d)  The governing [policy] board shall develop and implement

6-15     policies that provide the public with a reasonable opportunity to

6-16     appear before the governing [policy] board and to speak on any

6-17     issue under the jurisdiction of the governing [policy] board.

6-18           SECTION 9.  Section 481.0044, Government Code, is amended to

6-19     read as follows:

6-20           Sec. 481.0044. GENERAL POWERS AND DUTIES.  (a) The governing

6-21     [policy] board shall adopt rules necessary for the administration

6-22     of department programs and may adopt rules for its internal

6-23     management and control.

6-24           (b)  The governing [policy] board shall perform the duties

6-25     assigned to the department under this chapter or other law.

6-26           (c)  The governing [policy] board possesses the powers and

6-27     shall perform the duties assigned by law to the department.

 7-1           (d)  The governing [policy] board shall report to the

 7-2     governor annually and to the legislature at each regular session on

 7-3     the department's activities.  The report must include:

 7-4                 (1)  a description of the activities of the governing

 7-5     board and the department during the preceding calendar year;

 7-6                 (2)  a description of the efforts of the governing

 7-7     board and the department to promote and market the department's

 7-8     economic development programs and services, including the Texas

 7-9     Business and Community Economic Development Clearinghouse;

7-10                 (3)  a description of the efforts of the governing

7-11     board and the department to obtain federal and private funding to

7-12     accomplish the goals of the department;

7-13                 (4)  recommendations to the legislature on issues

7-14     related to economic development and the business climate of the

7-15     state; and

7-16                 (5)  information pertaining to the implementation of

7-17     the strategic plan developed under Subchapter C.  [The policy board

7-18     may make recommendations in those reports on matters under its

7-19     jurisdiction.]

7-20           SECTION 10.  Section 481.005, Government Code, is amended to

7-21     read as follows:

7-22           Sec. 481.005.  EXECUTIVE DIRECTOR; GOVERNING [POLICY] BOARD

7-23     DUTIES.  (a)  The governing board [governor] shall employ an

7-24     [appoint the] executive director of the department who [with the

7-25     advice and consent of the senate.  The executive director] serves

7-26     at the  pleasure of the governing board [a two-year term expiring

7-27     February 1 of each odd-numbered year].

 8-1           (b)  The executive director shall execute a bond payable to

 8-2     the state in an amount set by the members of the governing [policy]

 8-3     board conditioned on the faithful performance of the duties of the

 8-4     position [office].  Premiums for the bond are payable from

 8-5     appropriations to the department.  The executive director must have

 8-6     demonstrated experience in the areas of economic development or

 8-7     tourism [executive and organizational ability].

 8-8           (c)  The executive director shall manage the affairs of the

 8-9     department under the direction of the governing board.  The

8-10     executive director shall provide administrative support to the

8-11     members of the governing [policy] board that is necessary for the

8-12     performance of the functions of the members.

8-13           (d)  The members of the governing [policy] board shall direct

8-14     the activities of the department and, in performing that duty,

8-15     shall establish policy, adopt rules, evaluate the implementation of

8-16     new legislation that affects the department's duties, review and

8-17     comment on the department's budget, prepare an annual report of the

8-18     department's activities, conduct investigations and studies, and

8-19     develop long-range plans for the future goals and needs of the

8-20     department.  [The members of the policy board may not be involved

8-21     in the daily operation of the department.  Except for duties

8-22     related to the approval and issuance of bonds by the department,

8-23     the policy board may delegate to the executive director the duties

8-24     of the policy board under this  chapter and other law that are not

8-25     covered by the description of the members' duties under this

8-26     subsection.]

8-27           SECTION 11.  Section 481.006(a), Government Code, is amended

 9-1     to read as follows:

 9-2           (a)  The governing board [executive director] shall establish

 9-3     the divisions within the department, which may include:

 9-4                 (1)  an administrative division;

 9-5                 (2)  an information and referral [a promotion and

 9-6     marketing] division;

 9-7                 (3)  a research[, planning,] and data services

 9-8     division;

 9-9                 (4)  a [domestic] business development division;

9-10                 (5)  an international trade [business development]

9-11     division;

9-12                 (6)  a promotion and marketing [job training] division;

9-13     and

9-14                 (7)  a tourism division.

9-15           SECTION 12.  Section 481.007, Government Code, is amended to

9-16     read as follows:  

9-17           Sec. 481.007.  ADVISORY COMMITTEES [BOARDS].  The executive

9-18     director or the governing [policy] board may appoint advisory

9-19     committees to assist the  executive director or the governing

9-20     [policy] board in the performance of their duties.  A member of an

9-21     advisory committee appointed by the executive director or the

9-22     governing [policy] board may not receive compensation for service

9-23     on the advisory committee.  A member appointed under this section

9-24     is entitled to receive reimbursement, subject to any applicable

9-25     limitation on reimbursement provided by the General Appropriations

9-26     Act, for actual and necessary expenses included in performing

9-27     service as a member of the advisory committee.

 10-1          SECTION 13.  Sections 481.010(a), (b), and (c), Government

 10-2    Code, are amended to read as follows:

 10-3          (a)  The executive director shall employ personnel necessary

 10-4    for the performance of department functions.  In addition to other

 10-5    personnel, the executive director shall employ a human rights

 10-6    officer and an internal auditor.  The internal auditor shall report

 10-7    directly to the governing [policy] board and may consult with the

 10-8    executive director or the executive director's designee.

 10-9          (b)  The executive director shall provide to governing

10-10    [policy] board members and department employees, as often as

10-11    necessary, information regarding their qualifications for office or

10-12    employment under this chapter and their responsibilities under

10-13    applicable laws relating to standards of conduct for state officers

10-14    or employees.

10-15          (c)  The governing [policy] board and executive director

10-16    shall jointly develop and implement policies that clearly define

10-17    the respective responsibilities of the members of the governing

10-18    [policy] board and the executive director and staff of the

10-19    department in accordance with this chapter.

10-20          SECTION 14.  Sections 481.012(c) and (d), Government Code,

10-21    are amended to read as follows:

10-22          (c)  The governing [policy] board shall prepare and maintain

10-23    a written plan that describes how a person who does not speak

10-24    English can be provided reasonable access to the department's

10-25    programs.  The governing [policy] board shall also comply with

10-26    federal and state laws for program and facility accessibility.

10-27          (d)  The governing [policy] board by rule shall establish

 11-1    methods by which consumers and service recipients are notified of

 11-2    the name, mailing address, and telephone number of the department

 11-3    for the purpose of directing complaints to the department.

 11-4          SECTION 15.  Section 481.022, Government Code, is amended to

 11-5    read as follows:

 11-6          Sec. 481.022.  GENERAL DUTIES OF DEPARTMENT.  [(a)]  The

 11-7    department shall [plan, organize, and implement programs for]:

 11-8                (1)  facilitate the location, expansion, and retention

 11-9    of new and existing domestic and international business investment

11-10    to the [attracting and locating new businesses in  this] state;

11-11                (2)  provide one-stop assistance and referrals for

11-12    business and community economic development [encouraging the growth

11-13    and expansion of  existing businesses, including tourism, in this

11-14    state];

11-15                (3)  promote and administer business and community

11-16    economic development programs and services in the state [working

11-17    with local governments and organizations to improve their

11-18    communities]; [and]

11-19                (4)  provide to businesses in the state assistance with

11-20    exporting products and services to international markets;

11-21                (5)  promote the state as a premier tourist and

11-22    business travel destination;

11-23                (6)  compile, publish, and disseminate timely and

11-24    useful research and data services;

11-25                (7)  aggressively market and promote the business

11-26    climate in the state and the state economic development business

11-27    assistance programs through the use of available media and

 12-1    resources, including the Internet; and

 12-2                (8)  seek funding of the department programs and

 12-3    activities from federal, state, local, and private sources

 12-4    [emphasizing rural economic development].

 12-5          [(b)  To carry out its duties, the department shall:]

 12-6                [(1)  promote this state as a location for business

 12-7    activity and an attraction for tourism;]

 12-8                [(2)  prepare and administer a statewide business

 12-9    development program designed to create job opportunities and

12-10    increase personal income throughout this state;]

12-11                [(3)  prepare and administer a program of

12-12    encouragement, support, and development of small and minority

12-13    business ownership throughout this state;]

12-14                [(4)  stimulate the expansion of international markets

12-15    for products and services from this state and encourage foreign

12-16    business development in this state;]

12-17                [(5)  assist local governments with advisory and

12-18    technical services in matters relating to community and economic

12-19    development;]

12-20                [(6)  provide financial aid to local governments for

12-21    programs authorized by law to receive the assistance;]

12-22                [(7)  act as an information center and referral agency

12-23    for information of state and federal programs affecting business

12-24    and local government;]

12-25                [(8)  conduct research on problems relating to

12-26    community and economic development in this state;]

12-27                [(9)  collect, publish, and disseminate information

 13-1    useful to local governments and businesses, including data on

 13-2    employment, housing, population characteristics, and land use

 13-3    patterns in the state;]

 13-4                [(10)  encourage cooperation between local governments,

 13-5    businesses, and the public, if appropriate;]

 13-6                [(11)  advise and inform the governor and the

 13-7    legislature concerning matters relating to community and economic

 13-8    development and make recommendations for necessary action;]

 13-9                [(12)  coordinate the development of training programs

13-10    between appropriate state agencies and educational institutions to

13-11    prepare this state's labor force to meet changing economic

13-12    circumstances;]

13-13                [(13)  work with local governments, local economic

13-14    development organizations, and small business development centers

13-15    to develop a referral system to promote community and economic

13-16    development throughout this state;]

13-17                [(14)  plan and implement a concerted, targeted effort

13-18    to more effectively address pressing economic problems and to

13-19    maximize the potential of the border region for the benefit of the

13-20    entire state;]

13-21                [(15)  work with local community efforts to use federal

13-22    funds to meet community needs, particularly in providing social and

13-23    emergency services to residents of this state having low incomes;]

13-24                [(16)  encourage maquiladora projects; and]

13-25                [(17)  pay for tourism and other business recruitment

13-26    expenses.]

13-27          SECTION 16.  Section 481.023, Government Code, is amended to

 14-1    read as follows:  

 14-2          Sec. 481.023.  ADMINISTRATION OF OTHER STATUTES.  (a)  The

 14-3    department shall perform the administrative duties [formerly

 14-4    assigned to the Texas Economic Development Commission including

 14-5    duties] prescribed under:

 14-6                (1)  the Act for Development of Employment, Industrial

 14-7    and Health Resources of 1971 (Article 5190.1, Vernon's Texas Civil

 14-8    Statutes);

 14-9                (2)  [Chapter 696, Acts of the 69th Legislature,

14-10    Regular Session, 1985 (Article 5190.4a, Vernon's Texas Civil

14-11    Statutes), relating to industrial training programs; and]

14-12                [(3)]  the Development Corporation Act of 1979 (Article

14-13    5190.6, Vernon's Texas Civil Statutes);

14-14                (3)  the smart jobs fund program;

14-15                (4)  the enterprise zone program; and

14-16                (5)  the department's linked deposit program.

14-17          (b)  The department shall perform the administrative duties

14-18    formerly assigned to the Texas Economic Development Commission and

14-19    the Enterprise Zone Board under Chapter 2303.

14-20          (c)  The department shall administer:

14-21                (1)  the Texas capital fund;

14-22                (2)  the Texas leverage fund; and

14-23                (3)  the Texas exporters loan fund [perform the

14-24    administrative duties formerly assigned to the Texas Department of

14-25    Community Affairs under Chapter 301, Labor Code, and the community

14-26    development block grant program].

14-27          [(d)  Any business or industry seeking employee training,

 15-1    retraining, or manpower development services at public expense may

 15-2    request assistance from the department.  The department shall seek

 15-3    advice from the Texas Higher Education Coordinating Board in

 15-4    identifying the appropriate institution of higher education to

 15-5    provide such services.  The rules of the coordinating board

 15-6    concerning out-of-district and off-campus courses developed to

 15-7    assist industrial start-up and employee upgrading apply in

 15-8    providing those services.  The department and the coordinating

 15-9    board shall ensure that appropriate rules are developed to apply to

15-10    any entities involved in the delivery of education and training for

15-11    industrial start-up and employee upgrading that are not currently

15-12    covered.]

15-13          SECTION 17.  Sections 481.024(a) and (f), Government Code,

15-14    are amended to read as follows:

15-15          (a)  The Texas Economic Development Corporation on behalf of

15-16    the state shall carry out the public purposes of this chapter.  The

15-17    creation of the corporation does not limit or impair the rights,

15-18    powers, and duties of the department provided by this chapter.  The

15-19    corporate existence of the Texas Economic Development Corporation

15-20    begins on the issuance of a certificate of incorporation by the

15-21    secretary of state.  The members of the governing [policy] board

15-22    serve ex officio as the board of directors of the corporation.  The

15-23    corporation has the powers and is subject to the limitations

15-24    provided for the department by this chapter in carrying out the

15-25    public purposes of this chapter.  The corporation has the rights

15-26    and powers of a nonprofit corporation incorporated under the Texas

15-27    Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

 16-1    Texas Civil Statutes) except to the extent inconsistent with this

 16-2    section.  The corporation may contract with the department and with

 16-3    bond counsel, financial advisors, or underwriters as its board of

 16-4    directors considers necessary.

 16-5          (f)  The Texas Economic Development Foundation, the Texas

 16-6    Economic Development Corporation, and any other corporation whose

 16-7    charter specifically dedicates the corporation's activities to the

 16-8    benefit of the Texas Department of Economic Development and Tourism

 16-9    [Commerce] shall file an annual report of the financial activity of

16-10    the corporation.  The annual report shall be filed prior to the

16-11    90th day after the last day for the corporation's fiscal year and

16-12    shall be prepared in accordance with generally accepted accounting

16-13    principles.  The report must include a statement of support,

16-14    revenue, and expenses and change in fund balances, a statement of

16-15    functional expenses, and balance sheets for all funds.

16-16          SECTION 18.  Section 481.028(b), Government Code, is amended

16-17    to read as follows:

16-18          (b)  The department shall enter into an agreement as required

16-19    by Subsection (a) with the:

16-20                (1)  Department of Agriculture regarding each agency's

16-21    international marketing efforts and business finance programs;

16-22                (2)  Texas Workforce [Employment] Commission regarding

16-23    the job training programs financed by the skills development fund

16-24    [, Texas Higher Education Coordinating Board, and Central Education

16-25    Agency regarding each agency's work force development efforts and

16-26    literacy programs];

16-27                (3)  General Land Office regarding each agency's rural

 17-1    economic development efforts;

 17-2                (4)  Texas Department of Housing and Community Affairs

 17-3    regarding each agency's community development programs;

 17-4                (5)  Texas Department of Transportation and Parks and

 17-5    Wildlife Department regarding each agency's efforts to promote

 17-6    tourism;

 17-7                (6)  Texas Natural Resource Conservation Commission

 17-8    regarding small business finance and permits, the marketing of

 17-9    recyclable products, and business permits;

17-10                (7)  office of the [state] comptroller regarding

17-11    economic development and analyses;

17-12                (8)  Texas Historical Commission regarding community

17-13    preservation, restoration, and revitalization;

17-14                (9)  [Texas Department of Human Services regarding work

17-15    force development;]

17-16                [(10)]  General Services Commission regarding providing

17-17    procurement information, certification, and technical assistance to

17-18    small and historically underutilized businesses; and

17-19                (10) [(11)]  Alternative Fuels Council regarding the

17-20    promotion of alternative fuels[; and]

17-21                [(12)  institutions of higher education regarding work

17-22    force development, literacy, and technology transfer].

17-23          SECTION 19.  Section 481.029, Government Code, is amended to

17-24    read as follows:

17-25          Sec. 481.029.  COST RECOVERY.  The department shall recover

17-26    the cost of providing publications [direct technical assistance]

17-27    and [management training] services to businesses [business] and

 18-1    communities when reasonable and practical.

 18-2          SECTION 20.  Subchapter C, Chapter 481, Government Code, is

 18-3    amended to read as follows:

 18-4            SUBCHAPTER C. TEXAS STRATEGIC ECONOMIC DEVELOPMENT

 18-5                       PLANNING COMMISSION [POLICY]

 18-6          Sec. 481.0301.  DEFINITION.  In this subchapter, "commission"

 18-7    means the Texas Strategic Economic Development Planning Commission.

 18-8          Sec. 481.031.  COMMISSION [LEGISLATIVE FINDINGS; INTENT].

 18-9    (a)  The Texas Strategic Economic Development Planning Commission

18-10    is composed of [The legislature finds that]:

18-11                (1)  two public members appointed by the governor [the

18-12    changing nature of the state's economy requires a more diversified

18-13    approach to promote economic growth and job creation]; [and]

18-14                (2)  two public members appointed by the lieutenant

18-15    governor;

18-16                (3)  two public members appointed by the speaker of the

18-17    house of representatives; and

18-18                (4)  the governing board of the department [the state

18-19    does not have a long-term economic development policy and has

18-20    suffered from lack of a long-term plan in its attempt to resolve

18-21    the economic problems that continue to plague the state].

18-22          (b)  The commission shall elect a presiding officer and an

18-23    assistant presiding officer from among its members [It is the

18-24    policy of this state, in the interest of promoting the general

18-25    welfare, to formulate a comprehensive plan for diversifying and

18-26    developing the economy of the state].

18-27          (c)  The commission shall meet at least quarterly and shall

 19-1    hold special meetings at the call of the governor.

 19-2          (d)  A public member of the commission is not entitled to

 19-3    compensation but is entitled to reimbursement of travel expenses

 19-4    incurred by the member while conducting the business of the

 19-5    commission, as provided by the General Appropriations Act.

 19-6          (e)  The executive director and staff of the department shall

 19-7    serve as the executive director and the staff of the commission and

 19-8    shall, under the direction of the commission, perform the

 19-9    administrative duties necessary to carry out the purposes of this

19-10    chapter.

19-11          (f)  The commission shall work with other state agencies that

19-12    impact economic development in the state, including:

19-13                (1)  the Texas Department of Housing and Community

19-14    Affairs;

19-15                (2)  the Texas Education Agency;

19-16                (3)  the Texas Workforce Commission;

19-17                (4)  the Texas Department of Transportation; and

19-18                (5)  the Texas Natural Resource and Conservation

19-19    Commission.

19-20          (g)  An affirmative vote of a majority of the entire

19-21    membership of the commission is necessary for an action of the

19-22    commission.

19-23          Sec. 481.032.  DUTIES OF COMMISSION [AND FUNCTIONS].  The

19-24    commission [department] shall:

19-25                (1)  develop a comprehensive, long-range domestic and

19-26    international strategic plan for economic development in

19-27    [diversifying and developing the economy of] the state;

 20-1                (2)  develop strategies to encourage investment in

 20-2    rural and distressed areas of the state;

 20-3                (3)  examine the competitive advantages and

 20-4    disadvantages of this state as a place to do business and make

 20-5    recommendations for improving the business climate of the state;

 20-6                (4) [(3)]  develop measurable economic development

 20-7    goals and propose specific courses of action to meet those goals

 20-8    [evaluate the performance of  existing state economic development

 20-9    efforts for consistency and coordination and for their effect on

20-10    job creation and evaluate the long-term benefits to the state of

20-11    those efforts];

20-12                (5) [(4)]  study the potential for establishing a

20-13    permanent mechanism for use by state agencies to communicate on

20-14    economic development issues [review economic development policy

20-15    recommendations made by other agencies or organizations and

20-16    recommend to the governor and legislature those strategies,

20-17    policies, and programs that the department considers to be in the

20-18    best interest of the state];

20-19                (6) [(5)]  study the economic development programs and

20-20    policies of other states and determine the feasibility of adapting

20-21    those programs or policies for implementation in this state;

20-22                [(6)  undertake specialized studies and prepare

20-23    specialized reports;]

20-24                (7)  hold public hearings and receive recommendations

20-25    from interested persons;

20-26                (8)  as appropriate, appoint task forces or other

20-27    panels [from within or outside the membership of the department] to

 21-1    study and report on specific issues, including international trade

 21-2    and direct foreign investment;

 21-3                [(9)  conduct a biennial review of economic development

 21-4    activities in the state;] and

 21-5                (9) [(10)]  perform other duties and functions

 21-6    necessary to carry out the purposes of this chapter.

 21-7          Sec. 481.033.  STRATEGIC PLAN [POLICY AND PROGRAM

 21-8    RECOMMENDATIONS].  (a)  Before December 1, 1998, the commission

 21-9    shall submit to the governor, lieutenant governor, and speaker of

21-10    the house of representatives a strategic plan for economic

21-11    development.  A copy of the strategic plan shall also be

21-12    distributed to other state agencies that impact the economic

21-13    development of the state.

21-14          (b)  The department shall provide oversight for the

21-15    implementation of the strategic plan.  [The department may

21-16    recommend policies and programs for:]

21-17                [(1)  fostering the creation of new businesses,

21-18    including high technology businesses, and the retention and

21-19    expansion of existing business enterprises;]

21-20                [(2)  increasing the availability of capital for

21-21    business start-ups and expansions;]

21-22                [(3)  encouraging and strengthening local economic

21-23    development efforts and improving coordination between state and

21-24    local economic development activities;]

21-25                [(4)  improving the skills of the state's work force

21-26    and enhancing the coordination of state and local job training and

21-27    retraining activities;]

 22-1                [(5)  improving agricultural productivity and otherwise

 22-2    maximizing the state's agricultural capabilities;]

 22-3                [(6)  attracting new industries and investment to the

 22-4    state;]

 22-5                [(7)  developing the state's university-based and

 22-6    private sector research and development resources and obtaining

 22-7    additional federal research and development funding;]

 22-8                [(8)  establishing more effective working relationships

 22-9    among state agencies engaged in economic development functions;]

22-10                [(9)  increasing the export of the state's agricultural

22-11    products and other goods;]

22-12                [(10)  enhancing tourism; and]

22-13                [(11)  establishing state economic development offices

22-14    in foreign countries.]

22-15          Sec. 481.034.  ABOLITION OF COMMISSION.  The Texas Strategic

22-16    Economic Development Policy Commission is abolished and this

22-17    subchapter expires December 1, 1998.

22-18          SECTION 21.  The heading to Subchapter D, Chapter 481,

22-19    Government Code, is amended to read as follows:

22-20                 SUBCHAPTER D. INTERNATIONAL [WORLD] TRADE

22-21          SECTION 22.  Section 481.041, Government Code, is amended to

22-22    read as follows:

22-23          Sec. 481.041.  LEGISLATIVE FINDINGS.  The legislature finds

22-24    that:

22-25                (1)  the development and expansion of international

22-26    trade and the export of products and services from this state to

22-27    foreign purchasers are essential to the economic growth of the

 23-1    state and to the full employment, welfare, and prosperity of its

 23-2    citizens; and

 23-3                (2)  the measures authorized and the assistance

 23-4    provided by this subchapter[, especially with respect to

 23-5    financing,] are in the public interest and serve a public purpose

 23-6    of the state in promoting the economic welfare of the citizens of

 23-7    the state [economically by stimulating the expansion of

 23-8    international markets for products and services from this state].

 23-9          SECTION 23.  Section 481.043, Government Code, is amended to

23-10    read as follows:

23-11          Sec. 481.043.  GENERAL POWERS AND DUTIES RELATING TO

23-12    INTERNATIONAL [WORLD] TRADE.  [(a)] The department shall:

23-13                (1)  provide businesses in the state with technical

23-14    assistance and referrals related to the export of products and

23-15    services, including export finance [assist, promote, encourage,

23-16    develop, and  advance economic prosperity and employment throughout

23-17    this state by fostering the expansion of exports of manufactured

23-18    goods and services to foreign purchasers];

23-19                (2)  coordinate the representation of exporters in the

23-20    state at international trade shows, missions, marts, seminars, and

23-21    other appropriate promotional venues [cooperate and act in

23-22    conjunction  with other public and private organizations to promote

23-23    and advance export trade activities in this state]; and

23-24                (3)  disseminate trade leads to exporters in the state

23-25    through the use of the Internet and other available media [design

23-26    and implement programs to provide financial assistance,

23-27    particularly to small and medium-sized businesses, to support

 24-1    export development;]

 24-2                [(4)  formulate and develop programs to stimulate and

 24-3    encourage increased international trade along the entire border

 24-4    region; and]

 24-5                [(5)  provide financial counseling to potential and

 24-6    existing exporters].

 24-7          [(b)  In carrying out its duties, the department may:]

 24-8                [(1)  conduct research and analysis relating to:]

 24-9                      [(A)  foreign commerce;]

24-10                      [(B)  the manner in which business is conducted

24-11    in foreign marketplaces;]

24-12                      [(C)  methods of stimulating reverse investment;]

24-13                      [(D)  international tourism; and]

24-14                      [(E)  governmental incentives and disincentives

24-15    to foreign trade activity in this state;]

24-16                [(2)  accept inquiries from foreign businesses and

24-17    governments and introduce the inquiring businesses or governments

24-18    to the appropriate association or state businesses;]

24-19                [(3)  cooperate with other persons in developing

24-20    marketing programs and disseminating information about the state

24-21    economy and the opportunities for and advantages of doing business

24-22    in this state;]

24-23                [(4)  represent the interests of state businesses

24-24    engaged in foreign trade and aid others representing those

24-25    interests through trade delegations, missions, marts, seminars, and

24-26    other appropriate promotional methods;]

24-27                [(5)  recruit foreign capital investment and encourage

 25-1    foreign business development in the state;]

 25-2                [(6)  encourage travel from foreign countries;]

 25-3                [(7)  seek funding of the department programs and

 25-4    activities from federal, state, local, and private sources;]

 25-5                [(8)  periodically study and report to the legislature

 25-6    on the effect of state tax laws on international trade activity in

 25-7    this state;]

 25-8                [(9)  encourage the development of programs by which

 25-9    experienced executives from private businesses volunteer their

25-10    services to the state to aid the development of foreign commerce;]

25-11                [(10)  collect and distribute to foreign commercial

25-12    libraries directories, catalogs, brochures, and other information

25-13    of value to foreign businesses considering doing business in this

25-14    state;]

25-15                [(11)  provide speakers bureau services for civic

25-16    organizations and other private groups in the state;]

25-17                [(12)  develop programs of mutual assistance between

25-18    banks, shipping agents, combination export managers, freight

25-19    forwarders, international consultants, ports, and other trade

25-20    intermediaries of this state;]

25-21                [(13)  encourage and assist expansion of international

25-22    trade activities of chambers of commerce, development commissions,

25-23    trade associations, ports, and similar organizations in the state;]

25-24                [(14)  establish an export finance awareness program to

25-25    provide information to banking organizations about methods used by

25-26    banks to provide financing for businesses engaged in exporting and

25-27    about other state and federal programs to promote and expedite

 26-1    export financing;]

 26-2                [(15)  provide businesses with counseling and

 26-3    management programs, technical assistance, advice, and information

 26-4    relating to development of export opportunities and programs;]

 26-5                [(16)  promote export trading companies;]

 26-6                [(17)  provide for, in cooperation with trade

 26-7    associations, chambers of commerce, or other appropriate private

 26-8    entities, the establishment of state offices in Asia, Europe, and

 26-9    Central and South America to identify export markets for Texas

26-10    services and products, identify sources of investment capital, and

26-11    otherwise represent the interests of the state; and]

26-12                [(18)  impose reasonable fees for its programs,

26-13    services, and publications.]

26-14          [(c)  In carrying out its duties and powers, the department

26-15    shall give emphasis and priority to matters relating to trade with

26-16    Mexico.]

26-17          SECTION 24.  Section 481.059(a), Government Code, as amended

26-18    by Chapters 18 and 602, Acts of the 72nd Legislature, Regular

26-19    Session, 1991, is amended to read as follows:

26-20          (a)  The Texas exporters loan fund is a fund in the state

26-21    treasury.  The fund consists of appropriations or transfers made to

26-22    the fund, [guarantee] fees, other money received from operation of

26-23    the program established by this section, and interest paid on money

26-24    in the fund. [Notwithstanding Section 481.056 of this code, the

26-25    department may deposit proceeds of bonds issued under this chapter

26-26    in the fund.]  Money in the fund may be used to establish a reserve

26-27    fund[,] in an amount determined by the department [as appropriate,

 27-1    for bonds issued under this chapter or to insure] and [guarantee

 27-2    the bonds in any other manner] to carry out the purposes of this

 27-3    section. [Reserve funds for the issuance of bonds under Subchapters

 27-4    Q and U may only be created on approval of the Product Development

 27-5    Advisory Board or the Product Commercialization Advisory Board, as

 27-6    applicable.]  If any appropriations are made to the department from

 27-7    the general revenue fund to carry out this section for a fiscal

 27-8    year, at the end of that fiscal year the unexpended balance of

 27-9    those appropriations shall be transferred to the Texas exporters

27-10    loan fund.

27-11          SECTION 25.  The heading to Subchapter E, Chapter 481,

27-12    Government Code, is amended to read as follows:

27-13    SUBCHAPTER E.  [DOMESTIC] BUSINESS DEVELOPMENT--GENERAL PROVISIONS

27-14          SECTION 26.  Section 481.071, Government Code, is amended to

27-15    read as follows:

27-16          Sec. 481.071.  LEGISLATIVE FINDINGS. The legislature finds

27-17    that:

27-18                (1)  the department should target high-wage, high-skill

27-19    employment opportunities [development and expansion of business,

27-20    commerce, and industry are essential to the economic growth of the

27-21    state and to the full employment, welfare, and prosperity of its

27-22    citizens]; [and]

27-23                (2)  the measures authorized by this subchapter and the

27-24    assistance provided by this subchapter, especially with respect to

27-25    financing, are in the public interest and serve a public purpose of

27-26    the state; and

27-27                (3)  the department should actively seek private

 28-1    funding to supplement the department's marketing and advertising

 28-2    efforts [economically by the securing and retaining of private

 28-3    business enterprises and the resulting maintenance of a higher

 28-4    level of employment, economic activity, and stability].

 28-5          SECTION 27.  Subchapter E, Chapter 481, Government Code, is

 28-6    amended by adding Section 481.0725 to read as follows:

 28-7          Sec. 481.0725.  GENERAL POWERS AND DUTIES.  The department

 28-8    shall:

 28-9                (1)  focus business recruitment, expansion, and

28-10    retention efforts on industry sectors with the highest potential

28-11    for creating high-wage, high-skill jobs;

28-12                (2)  provide businesses with site selection assistance;

28-13                (3)  develop a comprehensive business recruitment

28-14    marketing plan;

28-15                (4)  participate in international and domestic trade

28-16    shows, trade missions, marketing trips, and seminars; and

28-17                (5)  produce and disseminate information through the

28-18    use of available media and resources, including the Internet, to

28-19    promote business assistance programs and the overall business

28-20    climate in the state.

28-21          SECTION 28.  Section 481.073(b), Government Code, is amended

28-22    to read as follows:

28-23          (b)  The governing [policy] board has the powers that are

28-24    necessary to accomplish the purposes of this subchapter, including

28-25    the powers granted to industrial development corporations by

28-26    Section 23 of the Development Corporation Act, except those

28-27    provided by Subsections (a)(7), (8), (9), and (10) of that section,

 29-1    and Sections 26, 27, and 29 of that Act.

 29-2          SECTION 29.  Section 481.075(a), Government Code, is amended

 29-3    to read as follows:

 29-4          (a)  The department shall adopt rules to establish criteria

 29-5    for determining which users may participate in programs established

 29-6    by the department under this subchapter.  The department shall

 29-7    adopt collateral or security requirements to ensure the full

 29-8    repayment of any loan, lease, or installment sale and the solvency

 29-9    of any program implemented under this subchapter.  The governing

29-10    [policy] board must approve all leases and sale and loan agreements

29-11    made under this subchapter except that the governing [policy] board

29-12    may delegate this approval authority to the executive director.

29-13          SECTION 30.  Section 481.077, Government Code, is amended by

29-14    adding Subsection (f) to read as follows:

29-15          (f)  The department shall transfer the corporation to the

29-16    private sector not later than September 1, 1999.  The department

29-17    shall submit a report to the legislature and the comptroller

29-18    detailing the plan for the transfer not later than December 1,

29-19    1997.

29-20          SECTION 31.  The heading to Subchapter H, Chapter 481,

29-21    Government Code, is amended to read as follows:

29-22      SUBCHAPTER H.  BUSINESS DEVELOPMENT--PERMIT ASSISTANCE [OFFICE]

29-23          SECTION 32.  The heading to Subchapter J, Chapter 481,

29-24    Government Code, is amended to read as follows:

29-25       SUBCHAPTER J.  BUSINESS DEVELOPMENT--SMART JOBS FUND PROGRAM

29-26          SECTION 33.  Section 481.153, Government Code, is amended to

29-27    read as follows:

 30-1          Sec. 481.153.  RULES.  The governing [policy] board shall

 30-2    adopt rules as necessary to implement the program.

 30-3          SECTION 34.  Section 481.157(b), Government Code, is amended

 30-4    to read as follows:

 30-5          (b)  The governing [policy] board may adopt rules modifying

 30-6    the requirements of Subsection (a) for employers with fewer than 50

 30-7    employees and may also adopt rules modifying the requirements of

 30-8    Subsection (a) for projects that provide significant economic

 30-9    benefits to an entire region of the state.

30-10          SECTION 35.  Section 481.172, Government Code, is amended to

30-11    read as follows:

30-12          Sec. 481.172.  DUTIES.  The department shall:

30-13                (1)  promote and advertise within the United States and

30-14    in foreign countries, by radio, television, newspaper, the

30-15    Internet, and other means considered appropriate, tourism in this

30-16    state by non-Texans, including persons from foreign countries, and

30-17    distribute promotional materials through appropriate agencies,

30-18    including the United States Travel and Tourism Administration

30-19    [Agency];

30-20                (2)  represent the state in domestic and international

30-21    travel trade shows, trade missions, and seminars [encourage travel

30-22    by Texans to this state's scenic, historical, natural,

30-23    agricultural, educational, recreational, and other attractions];

30-24                (3)  develop methods to attract major [coordinate and

30-25    stimulate orderly and accelerated development of] tourist

30-26    attractions to the [throughout this] state;

30-27                (4)  use current market research to develop a tourism

 31-1    marketing plan to increase travel to the state by domestic and

 31-2    international visitors [conduct a public relations campaign to

 31-3    create a responsible and accurate national and international image

 31-4    of this state];

 31-5                (5)  coordinate [cooperate fully] with the Parks and

 31-6    Wildlife Department, the Texas Department of Transportation, the

 31-7    Texas  Historical Commission, and the Texas Commission on the Arts

 31-8    in all matters relating to promotion of tourism; and

 31-9                (6)  assist communities to develop tourist attractions

31-10    [cooperate with the Texas Transportation Commission in the

31-11    administration of the commission's collateral program of highway

31-12    map distribution and operation of travel information bureaus and

31-13    other tourist-related functions of the commission;  and]

31-14                [(7)  encourage communities, organizations, and

31-15    individuals in this state to cooperate with its program by their

31-16    activities and use of their own funds and collaborate with those

31-17    organizations and other governmental entities in the pursuit of the

31-18    objectives of this subchapter].

31-19          SECTION 36.  The heading to Subchapter N, Chapter 481,

31-20    Government Code, is amended to read as follows:

31-21     SUBCHAPTER N.  BUSINESS DEVELOPMENT--[HISTORICALLY UNDERUTILIZED

31-22            BUSINESS AND SMALL BUSINESS] LINKED DEPOSIT PROGRAM

31-23          SECTION 37.  Chapter 481, Government Code, is amended by

31-24    adding Subchapters K and P to read as follows:

31-25                  SUBCHAPTER K.  INFORMATION AND REFERRAL

31-26          Sec. 481.166.  LEGISLATIVE FINDINGS.  The legislature finds

31-27    that:

 32-1                (1)  economic development programs and services are

 32-2    located in a number of state agencies;

 32-3                (2)  businesses and communities need a single point of

 32-4    contact on business and community economic development programs and

 32-5    services; and

 32-6                (3)  state agencies need to work together to provide

 32-7    outreach and assistance to local governments and small businesses.

 32-8          Sec. 481.167.  TEXAS BUSINESS AND COMMUNITY ECONOMIC

 32-9    DEVELOPMENT CLEARINGHOUSE.  (a)  The department shall establish the

32-10    Texas Business and Community Economic Development Clearinghouse to

32-11    provide assistance to businesses and communities in the state

32-12    through the use of a statewide toll-free telephone service.

32-13          (b)  The clearinghouse shall collect and disseminate

32-14    information on federal, state, local, and private:

32-15                (1)  business development programs, including financial

32-16    assistance and business incentive programs;

32-17                (2)  business development services, including technical

32-18    assistance, workshops, business incubators, training, and useful

32-19    publications;

32-20                (3)  rural and urban community economic development

32-21    programs, including loans, grants, and other funding sources;

32-22                (4)  rural and urban community economic development

32-23    services, including technical assistance, workshops, training, and

32-24    useful publications;

32-25                (5)  small business programs and services; and

32-26                (6)  defense economic adjustment programs and services.

32-27          (c)  The clearinghouse shall develop and establish a

 33-1    user-friendly database for all relevant programs that is accessible

 33-2    through the Internet.

 33-3          (d)  The department shall obtain from other state agencies

 33-4    appropriate information needed by the department to carry out its

 33-5    duties under this subchapter.

 33-6          (e)  The comptroller shall assist the department in

 33-7    furthering the purposes of this subchapter by allowing the

 33-8    department to use the field offices and personnel of the

 33-9    comptroller to disseminate brochures, documents, and other

33-10    information useful to businesses in the state.

33-11                 SUBCHAPTER P.  RESEARCH AND DATA SERVICES

33-12          Sec. 481.211.  POWERS AND DUTIES.  The department shall:

33-13                (1)  compile and update demographic and economic

33-14    information on the state;

33-15                (2)  develop and update training materials on local

33-16    community economic development practices; and

33-17                (3)  research, publish, and disseminate information on:

33-18                      (A)  economic and industrial development trends

33-19    and issues, including NAFTA, emerging industries, and patterns of

33-20    international trade and investment;

33-21                      (B)  economic development programs and efforts

33-22    administered by other states and nations; and

33-23                      (C)  economic and community development problems

33-24    facing state and local communities.

33-25          Sec. 481.212.  COMPILATION AND DISTRIBUTION OF DATA AND

33-26    RESEARCH.  (a)  To serve as a one-stop center for business-related

33-27    information, the department shall obtain from other state agencies

 34-1    and organizations business-related statistics and data.

 34-2          (b)  To maximize the accessibility of business-related data,

 34-3    the department shall create a web site to publish business-related

 34-4    information on the Internet.

 34-5          SECTION 38.  Chapter 484, Government Code, is amended to read

 34-6    as follows:

 34-7                CHAPTER 484.  TEXAS MANUFACTURING INSTITUTE

 34-8          Sec. 484.001.  ESTABLISHMENT.  The Texas Manufacturing

 34-9    Institute shall be established as a nonprofit corporation to carry

34-10    out the purposes of  this chapter [consists of governmental

34-11    agencies, educational institutions, and other entities, involved in

34-12    the promotion of manufacturing, that join as members of the

34-13    institute].

34-14          Sec. 484.002.  DUTIES.  The institute shall:

34-15                (1)  identify needs within Texas' manufacturing

34-16    infrastructure, work to meet those needs, promote Texas'

34-17    manufacturing strengths and capabilities, and communicate the

34-18    importance of manufacturing to the state's economic future;

34-19                (2)  develop a program of activities that will improve

34-20    Texas' manufacturing capabilities by enhancing existing research,

34-21    educational, and technical training programs aimed at developing

34-22    and transferring new manufacturing technologies and at increasing

34-23    the skilled work force in manufacturing;

34-24                (3)  take all opportunities for cooperation among

34-25    manufacturing programs of participating [its member] institutions;

34-26                (4)  encourage the development of the statewide

34-27    manufacturing program among participating [its member]

 35-1    institutions, including the areas of microelectronics, electronics

 35-2    assembly, automation and robotics, concurrent engineering, computer

 35-3    integrated manufacturing, artificial intelligence applications, and

 35-4    flexible manufacturing systems;  and

 35-5                (5)  seek opportunities to facilitate cooperative

 35-6    efforts among participating institutions [members of the

 35-7    institute], other educational institutions in this state, private

 35-8    research organizations, industry, and federal laboratories.

 35-9          Sec. 484.003.  GOVERNING [POLICY] BOARD.  The institute is

35-10    governed by an initial [a policy] board composed of one member

35-11    appointed  by each participating agency and [member] institution.

35-12    Board members shall be appointed and elected according to the

35-13    bylaws of the  corporation.  The executive director of the Texas

35-14    Department of Economic Development and Tourism shall serve as a

35-15    permanent member of the board.  [The policy board shall elect the

35-16    chairman from among the policy board's members.  The chairman

35-17    serves a two-year term.  A person who has been chairman is not

35-18    eligible to be elected chairman.  The policy board shall establish

35-19    policies and strategies necessary for the institute to accomplish

35-20    the purposes of this chapter.]

35-21          Sec. 484.004.  CONFIDENTIALITY [TECHNICAL ADVISORY COUNCIL].

35-22    Information collected by [The policy board shall appoint a

35-23    technical advisory council to develop recommendations on the

35-24    educational and technical program priorities for] the institute

35-25    relating to a product or process, the application or use of a

35-26    product, or other technological and scientific information is

35-27    confidential and not subject to disclosure.  [The technical

 36-1    advisory council consists of one representative from each member

 36-2    institution, together with an equal number of representatives from

 36-3    manufacturing industry, a representative of community and junior

 36-4    colleges, and a senior representative from a professional

 36-5    engineering society. The technical advisory council shall be

 36-6    responsible for those activities assigned to it by the policy

 36-7    board.]

 36-8          Sec. 484.005.  PUBLIC AND PRIVATE FUNDS.  The institute may

 36-9    receive state-appropriated funds and use the funds as matching

36-10    funds for federal proposals and contracts to provide specialized

36-11    equipment and facilities for members of the institute and to assist

36-12    with technology transfer to Texas industry, and as seed funds for

36-13    new programs within the scope of the institute.  The institute may

36-14    accept gifts, donations, and grants, including federal funds, to

36-15    support its purposes and programs.

36-16          Sec. 484.006.  IMMUNITY FROM LIABILITY [DISBURSEMENT POLICY].

36-17    A member of the governing board or any other person acting on

36-18    behalf of [Disbursement of funds received by] the institute in

36-19    executing a contract, commitment, or agreement under this chapter

36-20    is not personally liable for the contents of the contract,

36-21    commitment, or agreement [shall be in accordance with policy

36-22    determined by the policy board subject to the laws of the state and

36-23    the policies of member institutions.  The disbursement policy must

36-24    recognize the state core support for each institution, matching

36-25    requirements for federal grants and contracts, and new cooperative

36-26    initiatives.   Disbursement of funds shall reflect the division of

36-27    labor as specified in the submitted proposal].

 37-1          Sec. 484.007.  TRANSFER TO PRIVATE SECTOR [STAFFING].  (a)

 37-2    The governing board shall submit a plan for transferring the

 37-3    institute to the private sector to the governor, the legislature,

 37-4    and the executive director of the Texas Department of Economic

 37-5    Development and Tourism not later than December 1, 1997.

 37-6          (b)  The transfer of the Texas Manufacturing Institute to the

 37-7    private sector shall be completed not later than September 1, 1999.

 37-8    [Staffing to carry out the purposes of this chapter, to the extent

 37-9    required, will be provided by member institutions.]

37-10          SECTION 39.  (a)  Sections 481.0075, 481.026, 481.042,

37-11    481.044, 481.046, 481.048-481.058, 481.060, 481.061, 481.074, and

37-12    481.078, Government Code, are repealed.

37-13          (b)  Subchapters F, G, I, M, O, Q, R, S, T, U, V, X, and Y,

37-14    Chapter 481, Government Code, are repealed.

37-15          (c)  Subchapter AA, Chapter 481, Government Code, as added by

37-16    Chapter 899, Acts of the 73rd Legislature, Regular Session, 1993,

37-17    is repealed.

37-18          SECTION 40.  (a)  This Act takes effect September 1, 1997.

37-19          (b)  The Texas Department of Commerce is abolished and its

37-20    powers and duties are transferred to the Texas Department of

37-21    Economic Development and Tourism.  A reference in law to the Texas

37-22    Department of Commerce means the Texas Department of Economic

37-23    Development and Tourism.

37-24          (c)  The terms of office of the members of the policy board

37-25    of the Texas Department of Commerce expire on the effective date of

37-26    this Act.  As soon as possible after the effective date of this

37-27    Act, the governor shall make appointments to the governing board of

 38-1    the Texas Department of Economic Development and Tourism.  In

 38-2    making those appointments, the governor shall appoint three members

 38-3    to terms expiring February 1, 1999, three to terms expiring

 38-4    February 1, 2001, and three to terms expiring February 1, 2003.

 38-5          (d)  The person appointed to perform the duties of executive

 38-6    director of the Texas Department of Commerce abolished by this Act

 38-7    may continue to perform those duties and complete the term of

 38-8    office established under the prior law governing the authority of

 38-9    the executive director, and the prior law is continued in effect

38-10    for that purpose.

38-11          (e)  The governor or the person appointed by the governor to

38-12    be the presiding officer of the governing board of the Texas

38-13    Department of Economic Development and Tourism may designate a

38-14    person to perform ministerial duties necessary for posting notice

38-15    of and holding the first meeting of the governing board of the

38-16    Texas Department of Economic Development and Tourism.

38-17          (f)  The Texas Department of Economic Development and Tourism

38-18    has all the powers and duties provided by law and all the property,

38-19    funds, rules, employees, unspent appropriations, documents, rights,

38-20    and obligations of the abolished Texas Department of Commerce,

38-21    except to the extent the laws governing the Texas Department of

38-22    Commerce's powers and duties are amended by this Act.

38-23          (g)  The rules, policies, procedures, and decisions of the

38-24    Texas Department of Commerce are continued in effect as rules,

38-25    policies, procedures, and decisions of the Texas Department of

38-26    Economic Development and Tourism until superseded by a rule or

38-27    other appropriate action of the Texas Department of Economic

 39-1    Development and Tourism.

 39-2          (h)  The validity of a rule, form, or procedure adopted,

 39-3    contract or acquisition made, proceeding begun, obligation

 39-4    incurred, right accrued, or other action taken by or in connection

 39-5    with the authority of the Texas Department of Commerce before it is

 39-6    abolished under Subsection (b) of this section is not affected by

 39-7    this Act.  To the extent those actions continue to have any effect

 39-8    on or after September 1, 1997, they are considered to be the

 39-9    actions of the Texas Department of Economic Development and

39-10    Tourism.

39-11          SECTION 41.  The importance of this legislation and the

39-12    crowded condition of the calendars in both houses create an

39-13    emergency and an imperative public necessity that the

39-14    constitutional rule requiring bills to be read on three several

39-15    days in each house be suspended, and this rule is hereby suspended.