1-1 By: Sibley S.B. No. 932
1-2 (In the Senate - Filed March 4, 1997; March 10, 1997, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 10, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 1; April 10, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 932 By: Sibley
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to abolishing the Texas Department of Commerce and
1-11 transferring its powers and duties to the newly created Texas
1-12 Department of Economic Development and Tourism and to certain other
1-13 economic development programs in the state.
1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. The heading to Chapter 481, Government Code, is
1-16 amended to read as follows:
1-17 CHAPTER 481. TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT AND
1-18 TOURISM [COMMERCE]
1-19 SECTION 2. Section 481.001, Government Code, is amended to
1-20 read as follows:
1-21 Sec. 481.001. DEFINITIONS. In this chapter:
1-22 (1) "Governing [Policy] board" means the governing
1-23 [policy] board of [to] the department.
1-24 (2) "Bond" includes a note, draft, bill, warrant,
1-25 debenture, certificate, or other evidence of indebtedness.
1-26 (3) ["Border region" means the area composed of the
1-27 counties of Brewster, Cameron, Culberson, Dimmit, El Paso, Hidalgo,
1-28 Hudspeth, Jeff Davis, Kinney, La Salle, Maverick, Presidio, Starr,
1-29 Terrell, Val Verde, Webb, Willacy, Zapata, and Zavala.]
1-30 [(4)] "Department" means the Texas Department of
1-31 Economic Development and Tourism [Commerce].
1-32 SECTION 3. Section 481.002, Government Code, is amended to
1-33 read as follows:
1-34 Sec. 481.002. DEPARTMENT. The Texas Department of Economic
1-35 Development and Tourism [Commerce] is an agency of the state.
1-36 SECTION 4. Section 481.003, Government Code, is amended to
1-37 read as follows:
1-38 Sec. 481.003. SUNSET PROVISION. The Texas Department of
1-39 Economic Development and Tourism [Commerce] is subject to Chapter
1-40 325 (Texas Sunset Act). Unless continued in existence as provided
1-41 by that chapter, the department is abolished and this chapter
1-42 expires September 1, 2001.
1-43 SECTION 5. Section 481.004, Government Code, is amended to
1-44 read as follows:
1-45 Sec. 481.004. GOVERNING [POLICY] BOARD. (a) The governing
1-46 [policy] board is composed of nine[:]
1-47 [(1) six] public members appointed by the governor
1-48 with the advice and consent of the senate, which members shall be
1-49 appointed to give geographical representation on the governing
1-50 [policy] board to all regions of the state[; and]
1-51 [(2) the following ex officio members:]
1-52 [(A) the chairperson of the State Job Training
1-53 Coordinating Council and the chairperson shall in no event be
1-54 permitted to claim or receive state per diem for service on the
1-55 policy board;]
1-56 [(B) the presiding officer of the International
1-57 Trade Commission; and]
1-58 [(C) the presiding officer of the Texas-Mexico
1-59 Authority].
1-60 (b) Members [Appointed members] of the governing [policy]
1-61 board serve for six-year terms with the terms of three [two]
1-62 members expiring February 1 of each odd-numbered year. [Ex officio
1-63 members have the same powers and duties as appointed members.]
1-64 (c) Appointments to the governing [policy] board shall be
2-1 made without regard to the race, color, handicap, sex, religion,
2-2 age, or national origin of the appointees.
2-3 (d) In making appointments under this section, the governor
2-4 shall attempt to include members of different minority groups
2-5 including females, African Americans, Hispanic Americans, Native
2-6 Americans, Asian Americans, and persons who are disabled.
2-7 (e) At least one member of the governing [policy] board must
2-8 be a resident of a county with a population of less than 30,000, at
2-9 least one other member must have experience in international trade,
2-10 and at least one other member must have experience in tourism.
2-11 SECTION 6. Section 481.0041, Government Code, is amended to
2-12 read as follows:
2-13 Sec. 481.0041. REMOVAL OF GOVERNING [POLICY] BOARD MEMBERS.
2-14 (a) It is a ground for removal from the governing [policy] board
2-15 if a member:
2-16 (1) does not have at the time of appointment the
2-17 qualifications required by Section 481.0042;
2-18 (2) does not maintain during service on the governing
2-19 [policy] board the qualifications required by Section 481.0042;
2-20 (3) violates a prohibition established by Section
2-21 481.0042;
2-22 (4) cannot discharge the member's duties for a
2-23 substantial part of the term for which the member is appointed
2-24 because of illness or disability; or
2-25 (5) is absent from more than half of the regularly
2-26 scheduled governing [policy] board meetings that the member is
2-27 eligible to attend during a calendar year unless the absence is
2-28 excused by majority vote of the governing [policy] board.
2-29 (b) The validity of an action of the governing [policy]
2-30 board is not affected by the fact that it is taken when a ground
2-31 for removal of a governing [policy] board member exists.
2-32 (c) If the executive director has knowledge that a potential
2-33 ground for removal exists, the executive director shall notify the
2-34 presiding officer of the governing [policy] board of the ground.
2-35 The presiding officer shall then notify the governor that a
2-36 potential ground for removal exists.
2-37 SECTION 7. Subsections (a), (b), and (e), Section 481.0042
2-38 Government Code, are amended to read as follows:
2-39 (a) A person may not serve as a public member of the
2-40 governing [policy] board or be the executive director or an
2-41 employee of the department if the person:
2-42 (1) is employed by, participates in the management of,
2-43 or is a paid consultant of a business entity that contracts with
2-44 the department;
2-45 (2) owns or controls, directly or indirectly, more
2-46 than a 10 percent interest in a business entity or other
2-47 organization that contracts with the department;
2-48 (3) uses or receives a substantial amount of tangible
2-49 goods, services, or funds from the department, other than
2-50 compensation or reimbursement authorized by law for employee
2-51 salaries and benefits or for governing [policy] board membership,
2-52 attendance, and expenses; or
2-53 (4) is an officer, employee, or paid consultant of a
2-54 trade association of businesses that contracts with the department.
2-55 (b) A person may not serve as a public member of the
2-56 governing [policy] board or be the executive director or an
2-57 employee of the department if the person's spouse:
2-58 (1) participates in the management of or is a paid
2-59 consultant of a business entity that contracts with the department;
2-60 (2) owns or controls, directly or indirectly, more
2-61 than a 10 percent interest in a business entity or other
2-62 organization that contracts with the department;
2-63 (3) uses or receives a substantial amount of tangible
2-64 goods, services, or funds from the department; or
2-65 (4) is an officer, manager, or paid consultant of a
2-66 trade association of businesses that contracts with the department.
2-67 (e) A person may not be a member of the governing [policy]
2-68 board or the executive director or an employee of the department if
2-69 the person is required to register as a lobbyist under Chapter
3-1 305[, Government Code,] because of the person's activities for
3-2 compensation on behalf of a business entity that has an interest in
3-3 a contract with the department or a profession related to the
3-4 operation of the department.
3-5 SECTION 8. Section 481.0043, Government Code, is amended to
3-6 read as follows:
3-7 Sec. 481.0043. OFFICERS; COMPENSATION; MEETINGS. (a) The
3-8 governor designates the presiding officer of the governing [policy]
3-9 board. The governing [policy] board shall elect from among its
3-10 members an assistant presiding officer and a secretary.
3-11 (b) The governing [policy] board shall meet at least eight
3-12 times each year [quarterly].
3-13 (c) A member of the governing [policy] board may not receive
3-14 compensation for service on the governing [policy] board. A member
3-15 is entitled to receive reimbursement, subject to any applicable
3-16 limitation on reimbursement provided by the General Appropriations
3-17 Act, for actual and necessary expenses incurred in performing
3-18 services as a member of the governing [policy] board.
3-19 (d) The governing [policy] board shall develop and implement
3-20 policies that provide the public with a reasonable opportunity to
3-21 appear before the governing [policy] board and to speak on any
3-22 issue under the jurisdiction of the governing [policy] board.
3-23 SECTION 9. Section 481.0044, Government Code, is amended to
3-24 read as follows:
3-25 Sec. 481.0044. GENERAL POWERS AND DUTIES. (a) The governing
3-26 [policy] board shall adopt rules necessary for the administration
3-27 of department programs and may adopt rules for its internal
3-28 management and control.
3-29 (b) The governing [policy] board shall perform the duties
3-30 assigned to the department under this chapter or other law.
3-31 (c) The governing [policy] board possesses the powers and
3-32 shall perform the duties assigned by law to the department.
3-33 (d) The governing [policy] board shall report to the
3-34 governor annually and to the legislature at each regular session on
3-35 the department's activities. The report must include:
3-36 (1) a description of the activities of the governing
3-37 board and the department during the preceding calendar year;
3-38 (2) a description of the efforts of the governing
3-39 board and the department to promote and market the department's
3-40 economic development programs and services, including the Texas
3-41 Business and Community Economic Development Clearinghouse;
3-42 (3) a description of the efforts of the governing
3-43 board and the department to obtain federal and private funding to
3-44 accomplish the goals of the department;
3-45 (4) recommendations to the legislature on issues
3-46 related to economic development and the business climate of the
3-47 state;
3-48 (5) information pertaining to the implementation of
3-49 the strategic plan developed under Subchapter C; and
3-50 (6) an assessment of the effectiveness of the
3-51 agreements executed under Section 481.028(b). [The policy board
3-52 may make recommendations in those reports on matters under its
3-53 jurisdiction.]
3-54 SECTION 10. Section 481.005, Government Code, is amended to
3-55 read as follows:
3-56 Sec. 481.005. EXECUTIVE DIRECTOR; GOVERNING [POLICY] BOARD
3-57 DUTIES. (a) The governing board [governor] shall employ an
3-58 [appoint the] executive director of the department who [with the
3-59 advice and consent of the senate. The executive director] serves
3-60 at the pleasure of the governing board [a two-year term expiring
3-61 February 1 of each odd-numbered year].
3-62 (b) The executive director shall execute a bond payable to
3-63 the state in an amount set by the members of the governing [policy]
3-64 board conditioned on the faithful performance of the duties of the
3-65 position [office]. Premiums for the bond are payable from
3-66 appropriations to the department. The executive director must have
3-67 demonstrated experience in the areas of economic development or
3-68 tourism and executive and organizational ability.
3-69 (c) The executive director shall manage the affairs of the
4-1 department under the direction of the governing board. The
4-2 executive director shall provide administrative support to the
4-3 members of the governing [policy] board that is necessary for the
4-4 performance of the functions of the members.
4-5 (d) The members of the governing [policy] board shall direct
4-6 the activities of the department and, in performing that duty,
4-7 shall establish policy, adopt rules, evaluate the implementation of
4-8 new legislation that affects the department's duties, review and
4-9 comment on the department's budget, prepare an annual report of the
4-10 department's activities, conduct investigations and studies, and
4-11 develop long-range plans for the future goals and needs of the
4-12 department. The members of the policy board may not be involved in
4-13 the daily operation of the department. [Except for duties related
4-14 to the approval and issuance of bonds by the department, the policy
4-15 board may delegate to the executive director the duties of the
4-16 policy board under this chapter and other law that are not covered
4-17 by the description of the members' duties under this subsection.]
4-18 SECTION 11. Subsection (a), Section 481.006, Government
4-19 Code, is amended to read as follows:
4-20 (a) The governing board [executive director] shall establish
4-21 the divisions within the department, which may include:
4-22 (1) an administrative division;
4-23 (2) an information and referral [a promotion and
4-24 marketing] division;
4-25 (3) a research[, planning,] and data services
4-26 division;
4-27 (4) a [domestic] business development division;
4-28 (5) an international trade [business development]
4-29 division;
4-30 (6) a promotion and marketing [job training] division;
4-31 and
4-32 (7) a tourism division.
4-33 SECTION 12. Subchapter A, Chapter 481, Government Code, is
4-34 amended by adding Section 481.0065 to read as follows:
4-35 Sec. 481.0065. OFFICE OF DEFENSE AFFAIRS. (a) The
4-36 department shall establish and maintain an Office of Defense
4-37 Affairs.
4-38 (b) The Office of Defense Affairs shall:
4-39 (1) conduct a statewide assessment of active military
4-40 installations and current missions to prepare a proactive statewide
4-41 strategy to prevent future defense closures and realignments;
4-42 (2) use the assessment conducted under Subdivision (1)
4-43 to assist defense-dependent communities to develop a long-term
4-44 strategy to prepare for future base realignments and closures;
4-45 (3) provide information to defense-dependent
4-46 communities regarding federal actions affecting military
4-47 installations and missions;
4-48 (4) serve as a clearinghouse for defense economic
4-49 adjustment and transition information and activities; and
4-50 (5) provide assistance to defense-dependent
4-51 communities that have experienced a defense-related closure or
4-52 realignment.
4-53 (c) The department may enter into an agreement with a
4-54 private contractor to perform the assessment required under
4-55 Subsection (b).
4-56 SECTION 13. Section 481.007, Government Code, is amended to
4-57 read as follows:
4-58 Sec. 481.007. ADVISORY COMMITTEES [BOARDS]. The executive
4-59 director or the governing [policy] board may appoint advisory
4-60 committees to assist the executive director or the governing
4-61 [policy] board in the performance of their duties. A member of an
4-62 advisory committee appointed by the executive director or the
4-63 governing [policy] board may not receive compensation for service
4-64 on the advisory committee. A member appointed under this section
4-65 is entitled to receive reimbursement, subject to any applicable
4-66 limitation on reimbursement provided by the General Appropriations
4-67 Act, for actual and necessary expenses included in performing
4-68 service as a member of the advisory committee.
4-69 SECTION 14. Subsections (a), (b), and (c), Section 481.010,
5-1 Government Code, are amended to read as follows:
5-2 (a) The executive director shall employ personnel necessary
5-3 for the performance of department functions. In addition to other
5-4 personnel, the executive director shall employ a human rights
5-5 officer and an internal auditor. The internal auditor shall report
5-6 directly to the governing [policy] board and may consult with the
5-7 executive director or the executive director's designee.
5-8 (b) The executive director shall provide to governing
5-9 [policy] board members and department employees, as often as
5-10 necessary, information regarding their qualifications for office or
5-11 employment under this chapter and their responsibilities under
5-12 applicable laws relating to standards of conduct for state officers
5-13 or employees.
5-14 (c) The governing [policy] board and executive director
5-15 shall jointly develop and implement policies that clearly define
5-16 the respective responsibilities of the members of the governing
5-17 [policy] board and the executive director and staff of the
5-18 department in accordance with this chapter.
5-19 SECTION 15. Subsections (c) and (d), Section 481.012,
5-20 Government Code, are amended to read as follows:
5-21 (c) The governing [policy] board shall prepare and maintain
5-22 a written plan that describes how a person who does not speak
5-23 English can be provided reasonable access to the department's
5-24 programs. The governing [policy] board shall also comply with
5-25 federal and state laws for program and facility accessibility.
5-26 (d) The governing [policy] board by rule shall establish
5-27 methods by which consumers and service recipients are notified of
5-28 the name, mailing address, and telephone number of the department
5-29 for the purpose of directing complaints to the department.
5-30 SECTION 16. Section 481.022, Government Code, is amended to
5-31 read as follows:
5-32 Sec. 481.022. GENERAL DUTIES OF DEPARTMENT. [(a)] The
5-33 department shall [plan, organize, and implement programs for]:
5-34 (1) facilitate the location, expansion, and retention
5-35 of domestic and international business investment to the
5-36 [attracting and locating new businesses in this] state;
5-37 (2) provide statewide toll-free information and
5-38 referrals for business and community economic development
5-39 [encouraging the growth and expansion of existing businesses,
5-40 including tourism, in this state];
5-41 (3) promote and administer business and community
5-42 economic development programs and services in the state [working
5-43 with local governments and organizations to improve their
5-44 communities]; [and]
5-45 (4) provide to businesses in the state assistance with
5-46 exporting products and services to international markets;
5-47 (5) promote the state as a premier tourist and
5-48 business travel destination;
5-49 (6) provide businesses and local communities with
5-50 timely and useful research and data services;
5-51 (7) aggressively market and promote the business
5-52 climate in the state and the state economic development business
5-53 assistance programs and services through the use of available media
5-54 and resources, including the Internet; and
5-55 (8) seek funding of the department programs and
5-56 activities from federal, state, and private sources [emphasizing
5-57 rural economic development].
5-58 [(b) To carry out its duties, the department shall:]
5-59 [(1) promote this state as a location for business
5-60 activity and an attraction for tourism;]
5-61 [(2) prepare and administer a statewide business
5-62 development program designed to create job opportunities and
5-63 increase personal income throughout this state;]
5-64 [(3) prepare and administer a program of
5-65 encouragement, support, and development of small and minority
5-66 business ownership throughout this state;]
5-67 [(4) stimulate the expansion of international markets
5-68 for products and services from this state and encourage foreign
5-69 business development in this state;]
6-1 [(5) assist local governments with advisory and
6-2 technical services in matters relating to community and economic
6-3 development;]
6-4 [(6) provide financial aid to local governments for
6-5 programs authorized by law to receive the assistance;]
6-6 [(7) act as an information center and referral agency
6-7 for information of state and federal programs affecting business
6-8 and local government;]
6-9 [(8) conduct research on problems relating to
6-10 community and economic development in this state;]
6-11 [(9) collect, publish, and disseminate information
6-12 useful to local governments and businesses, including data on
6-13 employment, housing, population characteristics, and land use
6-14 patterns in the state;]
6-15 [(10) encourage cooperation between local governments,
6-16 businesses, and the public, if appropriate;]
6-17 [(11) advise and inform the governor and the
6-18 legislature concerning matters relating to community and economic
6-19 development and make recommendations for necessary action;]
6-20 [(12) coordinate the development of training programs
6-21 between appropriate state agencies and educational institutions to
6-22 prepare this state's labor force to meet changing economic
6-23 circumstances;]
6-24 [(13) work with local governments, local economic
6-25 development organizations, and small business development centers
6-26 to develop a referral system to promote community and economic
6-27 development throughout this state;]
6-28 [(14) plan and implement a concerted, targeted effort
6-29 to more effectively address pressing economic problems and to
6-30 maximize the potential of the border region for the benefit of the
6-31 entire state;]
6-32 [(15) work with local community efforts to use federal
6-33 funds to meet community needs, particularly in providing social and
6-34 emergency services to residents of this state having low incomes;]
6-35 [(16) encourage maquiladora projects; and]
6-36 [(17) pay for tourism and other business recruitment
6-37 expenses.]
6-38 SECTION 17. Section 481.023, Government Code, is amended to
6-39 read as follows:
6-40 Sec. 481.023. ADMINISTRATION OF OTHER STATUTES. (a) The
6-41 department shall perform the administrative duties [formerly
6-42 assigned to the Texas Economic Development Commission including
6-43 duties] prescribed under:
6-44 (1) the Act for Development of Employment, Industrial
6-45 and Health Resources of 1971 (Article 5190.1, Vernon's Texas Civil
6-46 Statutes); and
6-47 (2) [Chapter 696, Acts of the 69th Legislature,
6-48 Regular Session, 1985 (Article 5190.4a, Vernon's Texas Civil
6-49 Statutes), relating to industrial training programs; and]
6-50 [(3)] the Development Corporation Act of 1979 (Article
6-51 5190.6, Vernon's Texas Civil Statutes).
6-52 (b) The department shall perform the administrative duties
6-53 formerly assigned to the Texas Economic Development Commission and
6-54 the Enterprise Zone Board under Chapter 2303.
6-55 (c) The department may not use appropriated funds to support
6-56 the Texas leverage fund [shall perform the administrative duties
6-57 formerly assigned to the Texas Department of Community Affairs
6-58 under Chapter 301, Labor Code, and the community development block
6-59 grant program].
6-60 [(d) Any business or industry seeking employee training,
6-61 retraining, or manpower development services at public expense may
6-62 request assistance from the department. The department shall seek
6-63 advice from the Texas Higher Education Coordinating Board in
6-64 identifying the appropriate institution of higher education to
6-65 provide such services. The rules of the coordinating board
6-66 concerning out-of-district and off-campus courses developed to
6-67 assist industrial start-up and employee upgrading apply in
6-68 providing those services. The department and the coordinating
6-69 board shall ensure that appropriate rules are developed to apply to
7-1 any entities involved in the delivery of education and training for
7-2 industrial start-up and employee upgrading that are not currently
7-3 covered.]
7-4 SECTION 18. Subsections (a) and (f), Section 481.024,
7-5 Government Code, are amended to read as follows:
7-6 (a) The Texas Economic Development Corporation on behalf of
7-7 the state shall carry out the public purposes of this chapter. The
7-8 creation of the corporation does not limit or impair the rights,
7-9 powers, and duties of the department provided by this chapter. The
7-10 corporate existence of the Texas Economic Development Corporation
7-11 begins on the issuance of a certificate of incorporation by the
7-12 secretary of state. The members of the governing [policy] board
7-13 serve ex officio as the board of directors of the corporation. The
7-14 corporation has the powers and is subject to the limitations
7-15 provided for the department by this chapter in carrying out the
7-16 public purposes of this chapter. The corporation has the rights
7-17 and powers of a nonprofit corporation incorporated under the Texas
7-18 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
7-19 Texas Civil Statutes) except to the extent inconsistent with this
7-20 section. The corporation may contract with the department and with
7-21 bond counsel, financial advisors, or underwriters as its board of
7-22 directors considers necessary.
7-23 (f) The [Texas Economic Development Foundation, the] Texas
7-24 Economic Development Corporation[,] and any other corporation whose
7-25 charter specifically dedicates the corporation's activities to the
7-26 benefit of the Texas Department of Economic Development and Tourism
7-27 [Commerce] shall file an annual report of the financial activity of
7-28 the corporation. The annual report shall be filed prior to the
7-29 90th day after the last day for the corporation's fiscal year and
7-30 shall be prepared in accordance with generally accepted accounting
7-31 principles. The report must include a statement of support,
7-32 revenue, and expenses and change in fund balances, a statement of
7-33 functional expenses, and balance sheets for all funds.
7-34 SECTION 19. Subsection (b), Section 481.028, Government
7-35 Code, is amended to read as follows:
7-36 (b) The department shall enter into an agreement as required
7-37 by Subsection (a) with the:
7-38 (1) Department of Agriculture regarding each agency's
7-39 international marketing efforts and business finance programs;
7-40 (2) Texas Workforce [Employment] Commission regarding
7-41 the skills development fund, and the dissemination of
7-42 employment-related data, statistics, and analyses, and the use of
7-43 field offices to distribute information of interest to businesses
7-44 and communities in the state, including applications for Smart Jobs
7-45 grants [, Texas Higher Education Coordinating Board, and Central
7-46 Education Agency regarding each agency's work force development
7-47 efforts and literacy programs];
7-48 (3) General Land Office regarding each agency's rural
7-49 economic development efforts;
7-50 (4) Texas Department of Housing and Community Affairs
7-51 regarding each agency's community development programs;
7-52 (5) Texas Department of Transportation and Parks and
7-53 Wildlife Department regarding each agency's efforts to promote
7-54 tourism;
7-55 (6) Texas Natural Resource Conservation Commission
7-56 regarding small business finance and permits, the marketing of
7-57 recyclable products, and business permits;
7-58 (7) office of the [state] comptroller regarding the
7-59 dissemination of economic data, statistics, [development] and
7-60 analyses and the use of field offices to distribute information to
7-61 businesses and local communities in the state;
7-62 (8) Texas Historical Commission regarding community
7-63 preservation, restoration, and revitalization;
7-64 (9) [Texas Department of Human Services regarding work
7-65 force development;]
7-66 [(10)] General Services Commission regarding providing
7-67 procurement information, certification, and technical assistance to
7-68 small and historically underutilized businesses;
7-69 (10) [(11)] Alternative Fuels Council regarding the
8-1 promotion of alternative fuels; and
8-2 (11) [(12)] institutions of higher education regarding
8-3 work force development, literacy, and technology transfer.
8-4 SECTION 20. Section 481.029, Government Code, is amended to
8-5 read as follows:
8-6 Sec. 481.029. COST RECOVERY. The department shall recover
8-7 the cost of providing direct technical assistance, [and] management
8-8 training services, and other services to businesses and communities
8-9 when reasonable and practical.
8-10 SECTION 21. Subchapter C, Chapter 481, Government Code, is
8-11 amended to read as follows:
8-12 SUBCHAPTER C. TEXAS STRATEGIC ECONOMIC DEVELOPMENT
8-13 PLANNING COMMISSION [POLICY]
8-14 Sec. 481.0301. DEFINITION. In this subchapter, "commission"
8-15 means the Texas Strategic Economic Development Planning Commission.
8-16 Sec. 481.031. COMMISSION [LEGISLATIVE FINDINGS; INTENT].
8-17 (a) The Texas Strategic Economic Development Planning Commission
8-18 is composed of [The legislature finds that]:
8-19 (1) 10 public members appointed by the governor [the
8-20 changing nature of the state's economy requires a more diversified
8-21 approach to promote economic growth and job creation]; and
8-22 (2) the following ex officio members:
8-23 (A) the presiding officer of the Science and
8-24 Technology Council or the presiding officer's designee;
8-25 (B) the presiding officer of the governing board
8-26 of the department or the presiding officer's designee;
8-27 (C) the presiding officer of the Texas
8-28 Department of Housing and Community Affairs or the presiding
8-29 officer's designee;
8-30 (D) the presiding officer of the Texas Workforce
8-31 Commission or the presiding officer's designee; and
8-32 (E) the comptroller or the comptroller's
8-33 designee [the state does not have a long-term economic development
8-34 policy and has suffered from lack of a long-term plan in its
8-35 attempt to resolve the economic problems that continue to plague
8-36 the state].
8-37 (b) The governor shall designate a presiding officer and an
8-38 assistant presiding officer from among the members [It is the
8-39 policy of this state, in the interest of promoting the general
8-40 welfare, to formulate a comprehensive plan for diversifying and
8-41 developing the economy of the state].
8-42 (c) The commission shall meet at least quarterly and shall
8-43 hold special meetings at the call of the governor.
8-44 (d) A public member of the commission is not entitled to
8-45 compensation but is entitled to reimbursement of travel expenses
8-46 incurred by the member while conducting the business of the
8-47 commission, as provided by the General Appropriations Act.
8-48 (e) The governor's office shall provide the administrative
8-49 support necessary to carry out the purposes of this chapter. The
8-50 governor may enter into an agreement with a private contractor to
8-51 compile information for the strategic plan required under Section
8-52 481.032.
8-53 (f) The commission shall work with other state agencies that
8-54 impact economic development in the state.
8-55 (g) An affirmative vote of a majority of the entire
8-56 membership of the commission is necessary for an action of the
8-57 commission.
8-58 Sec. 481.032. DUTIES OF COMMISSION [AND FUNCTIONS].
8-59 (a) The commission [department] shall:
8-60 (1) develop a comprehensive, long-range domestic and
8-61 international strategic plan for economic development in
8-62 [diversifying and developing the economy of] the state;
8-63 (2) develop strategies to encourage investment in
8-64 rural and distressed areas of the state;
8-65 (3) examine the competitive advantages and
8-66 disadvantages of this state as a place to do business and make
8-67 recommendations for improving the business climate of the state,
8-68 including methods to eliminate or reduce duplicative and
8-69 unnecessary state agency rules and regulations that affect the
9-1 business climate;
9-2 (4) develop measurable economic development goals and
9-3 propose specific courses of action to meet those goals [(3)
9-4 evaluate the performance of existing state economic development
9-5 efforts for consistency and coordination and for their effect on
9-6 job creation and evaluate the long-term benefits to the state of
9-7 those efforts];
9-8 (5) study the potential for establishing a permanent
9-9 mechanism for use by state agencies to communicate on economic
9-10 development issues [(4) review economic development policy
9-11 recommendations made by other agencies or organizations and
9-12 recommend to the governor and legislature those strategies,
9-13 policies, and programs that the department considers to be in the
9-14 best interest of the state]; and
9-15 (6) [(5)] study the economic development programs and
9-16 policies of other states and determine the feasibility of adapting
9-17 those programs or policies for implementation in this state.[;]
9-18 (b) The commission may:
9-19 (1) [(6) undertake specialized studies and prepare
9-20 specialized reports;]
9-21 [(7)] hold public hearings and receive recommendations
9-22 from interested persons;
9-23 (2) [(8)] as appropriate, appoint task forces or other
9-24 panels [from within or outside the membership of the department] to
9-25 study and report on specific issues, including international trade
9-26 and direct foreign investment;
9-27 [(9) conduct a biennial review of economic development
9-28 activities in the state;] and
9-29 (3) [(10)] perform other duties and functions
9-30 necessary to carry out the purposes of this chapter.
9-31 Sec. 481.033. STRATEGIC PLAN [POLICY AND PROGRAM
9-32 RECOMMENDATIONS]. (a) Before November 1, 1998, the commission
9-33 shall submit to the governor, lieutenant governor, and speaker of
9-34 the house of representatives a strategic plan for economic
9-35 development. A copy of the strategic plan shall also be
9-36 distributed to other state agencies that affect the economic
9-37 development of the state.
9-38 (b) The governing board and the department shall provide
9-39 oversight for the implementation of the strategic plan.
9-40 Sec. 481.034. ABOLITION OF COMMISSION. The Texas Strategic
9-41 Economic Development Policy Commission is abolished and this
9-42 subchapter expires February 1, 1999. [The department may recommend
9-43 policies and programs for:]
9-44 [(1) fostering the creation of new businesses,
9-45 including high technology businesses, and the retention and
9-46 expansion of existing business enterprises;]
9-47 [(2) increasing the availability of capital for
9-48 business start-ups and expansions;]
9-49 [(3) encouraging and strengthening local economic
9-50 development efforts and improving coordination between state and
9-51 local economic development activities;]
9-52 [(4) improving the skills of the state's work force
9-53 and enhancing the coordination of state and local job training and
9-54 retraining activities;]
9-55 [(5) improving agricultural productivity and otherwise
9-56 maximizing the state's agricultural capabilities;]
9-57 [(6) attracting new industries and investment to the
9-58 state;]
9-59 [(7) developing the state's university-based and
9-60 private sector research and development resources and obtaining
9-61 additional federal research and development funding;]
9-62 [(8) establishing more effective working relationships
9-63 among state agencies engaged in economic development functions;]
9-64 [(9) increasing the export of the state's agricultural
9-65 products and other goods;]
9-66 [(10) enhancing tourism; and]
9-67 [(11) establishing state economic development offices
9-68 in foreign countries.]
9-69 SECTION 22. The heading to Subchapter D, Chapter 481,
10-1 Government Code, is amended to read as follows:
10-2 SUBCHAPTER D. INTERNATIONAL [WORLD] TRADE
10-3 SECTION 23. Section 481.041, Government Code, is amended to
10-4 read as follows:
10-5 Sec. 481.041. LEGISLATIVE FINDINGS. The legislature finds
10-6 that:
10-7 (1) the development and expansion of international
10-8 trade and the export of products and services from this state to
10-9 foreign purchasers are essential to the economic growth of the
10-10 state and to the full employment, welfare, and prosperity of its
10-11 citizens; and
10-12 (2) the measures authorized and the assistance
10-13 provided by this subchapter, especially with respect to financing,
10-14 are in the public interest and serve a public purpose of the state
10-15 in promoting the economic welfare of the citizens of the state
10-16 [economically by stimulating the expansion of international markets
10-17 for products and services from this state].
10-18 SECTION 24. Section 481.043, Government Code, is amended to
10-19 read as follows:
10-20 Sec. 481.043. GENERAL POWERS AND DUTIES RELATING TO
10-21 INTERNATIONAL [WORLD] TRADE. [(a)] The department shall:
10-22 (1) provide businesses in the state with technical
10-23 assistance, information, and referrals related to the export of
10-24 products and services, including export finance and international
10-25 business practices [assist, promote, encourage, develop, and
10-26 advance economic prosperity and employment throughout this state by
10-27 fostering the expansion of exports of manufactured goods and
10-28 services to foreign purchasers];
10-29 (2) coordinate the representation of exporters in the
10-30 state at international trade shows, missions, marts, seminars, and
10-31 other appropriate promotional venues;
10-32 (3) cooperate and act in conjunction with other public
10-33 and private organizations to promote and advance export trade
10-34 activities in this state; and
10-35 (4) disseminate trade leads to exporters in the state
10-36 through the use of the Internet and other available media
10-37 [(3) design and implement programs to provide
10-38 financial assistance, particularly to small and medium-sized
10-39 businesses, to support export development;]
10-40 [(4) formulate and develop programs to stimulate and
10-41 encourage increased international trade along the entire border
10-42 region; and]
10-43 [(5) provide financial counseling to potential and
10-44 existing exporters].
10-45 [(b) In carrying out its duties, the department may:]
10-46 [(1) conduct research and analysis relating to:]
10-47 [(A) foreign commerce;]
10-48 [(B) the manner in which business is conducted
10-49 in foreign marketplaces;]
10-50 [(C) methods of stimulating reverse investment;]
10-51 [(D) international tourism; and]
10-52 [(E) governmental incentives and disincentives
10-53 to foreign trade activity in this state;]
10-54 [(2) accept inquiries from foreign businesses and
10-55 governments and introduce the inquiring businesses or governments
10-56 to the appropriate association or state businesses;]
10-57 [(3) cooperate with other persons in developing
10-58 marketing programs and disseminating information about the state
10-59 economy and the opportunities for and advantages of doing business
10-60 in this state;]
10-61 [(4) represent the interests of state businesses
10-62 engaged in foreign trade and aid others representing those
10-63 interests through trade delegations, missions, marts, seminars, and
10-64 other appropriate promotional methods;]
10-65 [(5) recruit foreign capital investment and encourage
10-66 foreign business development in the state;]
10-67 [(6) encourage travel from foreign countries;]
10-68 [(7) seek funding of the department programs and
10-69 activities from federal, state, local, and private sources;]
11-1 [(8) periodically study and report to the legislature
11-2 on the effect of state tax laws on international trade activity in
11-3 this state;]
11-4 [(9) encourage the development of programs by which
11-5 experienced executives from private businesses volunteer their
11-6 services to the state to aid the development of foreign commerce;]
11-7 [(10) collect and distribute to foreign commercial
11-8 libraries directories, catalogs, brochures, and other information
11-9 of value to foreign businesses considering doing business in this
11-10 state;]
11-11 [(11) provide speakers bureau services for civic
11-12 organizations and other private groups in the state;]
11-13 [(12) develop programs of mutual assistance between
11-14 banks, shipping agents, combination export managers, freight
11-15 forwarders, international consultants, ports, and other trade
11-16 intermediaries of this state;]
11-17 [(13) encourage and assist expansion of international
11-18 trade activities of chambers of commerce, development commissions,
11-19 trade associations, ports, and similar organizations in the state;]
11-20 [(14) establish an export finance awareness program to
11-21 provide information to banking organizations about methods used by
11-22 banks to provide financing for businesses engaged in exporting and
11-23 about other state and federal programs to promote and expedite
11-24 export financing;]
11-25 [(15) provide businesses with counseling and
11-26 management programs, technical assistance, advice, and information
11-27 relating to development of export opportunities and programs;]
11-28 [(16) promote export trading companies;]
11-29 [(17) provide for, in cooperation with trade
11-30 associations, chambers of commerce, or other appropriate private
11-31 entities, the establishment of state offices in Asia, Europe, and
11-32 Central and South America to identify export markets for Texas
11-33 services and products, identify sources of investment capital, and
11-34 otherwise represent the interests of the state; and]
11-35 [(18) impose reasonable fees for its programs,
11-36 services, and publications.]
11-37 [(c) In carrying out its duties and powers, the department
11-38 shall give emphasis and priority to matters relating to trade with
11-39 Mexico.]
11-40 SECTION 25. Subsection (a), Section 481.059, Government
11-41 Code, as amended by Chapters 18 and 602, Acts of the 72nd
11-42 Legislature, Regular Session, 1991, is amended to read as follows:
11-43 (a) The Texas exporters loan fund is a fund in the state
11-44 treasury. The fund consists of appropriations or transfers made to
11-45 the fund, [guarantee] fees, other money received from operation of
11-46 the program established by this section, and interest paid on money
11-47 in the fund. [Notwithstanding Section 481.056 of this code, the
11-48 department may deposit proceeds of bonds issued under this chapter
11-49 in the fund.] Money in the fund may be used to establish a reserve
11-50 fund[,] in an amount determined by the department [as appropriate,
11-51 for bonds issued under this chapter or to insure] and [guarantee
11-52 the bonds in any other manner] to carry out the purposes of this
11-53 section. [Reserve funds for the issuance of bonds under Subchapters
11-54 Q and U may only be created on approval of the Product Development
11-55 Advisory Board or the Product Commercialization Advisory Board, as
11-56 applicable.] If any appropriations are made to the department from
11-57 the general revenue fund to carry out this section for a fiscal
11-58 year, at the end of that fiscal year the unexpended balance of
11-59 those appropriations shall be transferred to the Texas exporters
11-60 loan fund.
11-61 SECTION 26. The heading to Subchapter E, Chapter 481,
11-62 Government Code, is amended to read as follows:
11-63 SUBCHAPTER E. [DOMESTIC] BUSINESS DEVELOPMENT--GENERAL PROVISIONS
11-64 SECTION 27. Section 481.071, Government Code, is amended to
11-65 read as follows:
11-66 Sec. 481.071. LEGISLATIVE FINDINGS. The legislature finds
11-67 that:
11-68 (1) the department should focus business development
11-69 efforts on rural areas and small business [development and
12-1 expansion of business, commerce, and industry are essential to the
12-2 economic growth of the state and to the full employment, welfare,
12-3 and prosperity of its citizens]; [and]
12-4 (2) the measures authorized by this subchapter and the
12-5 assistance provided by this subchapter, especially with respect to
12-6 financing, are in the public interest and serve a public purpose of
12-7 the state; and
12-8 (3) the department should actively seek private
12-9 funding to supplement the department's marketing and advertising
12-10 efforts [economically by the securing and retaining of private
12-11 business enterprises and the resulting maintenance of a higher
12-12 level of employment, economic activity, and stability].
12-13 SECTION 28. Subchapter E, Chapter 481, Government Code, is
12-14 amended by adding Section 481.0725 to read as follows:
12-15 Sec. 481.0725. GENERAL POWERS AND DUTIES. The department
12-16 shall:
12-17 (1) focus business recruitment, expansion, and
12-18 retention efforts on industry sectors with the highest potential
12-19 for creating high-wage, high-skill jobs;
12-20 (2) provide businesses with site selection assistance
12-21 and communities with investment leads;
12-22 (3) develop a comprehensive business recruitment
12-23 marketing plan;
12-24 (4) participate in international and domestic trade
12-25 shows, trade missions, marketing trips, and seminars; and
12-26 (5) produce and disseminate information through the
12-27 use of available media and resources, including the Internet, to
12-28 promote business assistance programs and the overall business
12-29 climate in the state.
12-30 SECTION 29. Subsection (b), Section 481.073, Government
12-31 Code, is amended to read as follows:
12-32 (b) The governing [policy] board has the powers that are
12-33 necessary to accomplish the purposes of this subchapter, including
12-34 the powers granted to industrial development corporations by
12-35 Section 23 of the Development Corporation Act, except those
12-36 provided by Subsections (a)(7), (8), (9), and (10) of that section,
12-37 and Sections 26, 27, and 29 of that Act.
12-38 SECTION 30. Subsection (a), Section 481.075, Government
12-39 Code, is amended to read as follows:
12-40 (a) The department shall adopt rules to establish criteria
12-41 for determining which users may participate in programs established
12-42 by the department under this subchapter. The department shall
12-43 adopt collateral or security requirements to ensure the full
12-44 repayment of any loan, lease, or installment sale and the solvency
12-45 of any program implemented under this subchapter. The governing
12-46 [policy] board must approve all leases and sale and loan agreements
12-47 made under this subchapter except that the governing [policy] board
12-48 may delegate this approval authority to the executive director.
12-49 SECTION 31. Section 481.077, Government Code, is amended by
12-50 adding Subsection (f) to read as follows:
12-51 (f) The department shall transfer the corporation to the
12-52 private sector not later than June 1, 1999. The department shall
12-53 submit a report to the legislature and the comptroller detailing
12-54 the plan for the transfer not later than December 1, 1997.
12-55 SECTION 32. The heading to Subchapter H, Chapter 481,
12-56 Government Code, is amended to read as follows:
12-57 SUBCHAPTER H. BUSINESS DEVELOPMENT--PERMIT ASSISTANCE [OFFICE]
12-58 SECTION 33. The heading to Subchapter J, Chapter 481,
12-59 Government Code, is amended to read as follows:
12-60 SUBCHAPTER J. BUSINESS DEVELOPMENT--SMART JOBS FUND PROGRAM
12-61 SECTION 34. Section 481.153, Government Code, is amended to
12-62 read as follows:
12-63 Sec. 481.153. RULES. The governing [policy] board shall
12-64 adopt rules as necessary to implement the program.
12-65 SECTION 35. Subsection (b), Section 481.157, Government
12-66 Code, is amended to read as follows:
12-67 (b) The governing [policy] board may adopt rules modifying
12-68 the requirements of Subsection (a) for employers with fewer than 50
12-69 employees and may also adopt rules modifying the requirements of
13-1 Subsection (a) for projects that provide significant economic
13-2 benefits to an entire region of the state.
13-3 SECTION 36. Section 481.172, Government Code, is amended to
13-4 read as follows:
13-5 Sec. 481.172. DUTIES. The department shall:
13-6 (1) promote and advertise within the United States and
13-7 in foreign countries, by radio, television, newspaper, the
13-8 Internet, and other means considered appropriate, tourism in this
13-9 state by non-Texans, including persons from foreign countries, and
13-10 distribute promotional materials through appropriate distribution
13-11 channels [agencies, including the United States Travel and Tourism
13-12 Agency];
13-13 (2) represent the state in domestic and international
13-14 travel trade shows, trade missions, and seminars;
13-15 (3) encourage travel by Texans to this state's scenic,
13-16 historical, natural, agricultural, educational, recreational, and
13-17 other attractions;
13-18 [(3) coordinate and stimulate orderly and accelerated
13-19 development of tourist attractions throughout this state;]
13-20 (4) conduct a public relations campaign to create a
13-21 responsible and accurate national and international image of this
13-22 state;
13-23 (5) use current market research to develop a tourism
13-24 marketing plan to increase travel to the state by domestic and
13-25 international visitors;
13-26 (6) develop methods to attract tourist attractions to
13-27 the state;
13-28 (7) assist communities to develop tourist attractions;
13-29 and
13-30 (8) cooperate fully with the Parks and Wildlife
13-31 Department, the Texas Department of Transportation, the Texas
13-32 Historical Commission, and the Texas Commission on the Arts in all
13-33 matters relating to promotion of tourism[;]
13-34 [(6) cooperate with the Texas Transportation
13-35 Commission in the administration of the commission's collateral
13-36 program of highway map distribution and operation of travel
13-37 information bureaus and other tourist-related functions of the
13-38 commission; and]
13-39 [(7) encourage communities, organizations, and
13-40 individuals in this state to cooperate with its program by their
13-41 activities and use of their own funds and collaborate with those
13-42 organizations and other governmental entities in the pursuit of the
13-43 objectives of this subchapter].
13-44 SECTION 37. The heading to Subchapter N, Chapter 481,
13-45 Government Code, is amended to read as follows:
13-46 SUBCHAPTER N. BUSINESS DEVELOPMENT--[HISTORICALLY UNDERUTILIZED
13-47 BUSINESS AND SMALL BUSINESS] LINKED DEPOSIT PROGRAM
13-48 SECTION 38. Chapter 481, Government Code, is amended by
13-49 adding Subchapters K and P to read as follows:
13-50 SUBCHAPTER K. INFORMATION AND REFERRAL
13-51 Sec. 481.166. LEGISLATIVE FINDINGS. The legislature finds
13-52 that:
13-53 (1) economic development programs and services are
13-54 located in a number of state agencies;
13-55 (2) businesses and communities need a single point of
13-56 contact on business and community economic development programs and
13-57 services; and
13-58 (3) state agencies need to work together to provide
13-59 outreach and assistance to local governments and businesses.
13-60 Sec. 481.167. TEXAS BUSINESS AND COMMUNITY ECONOMIC
13-61 DEVELOPMENT CLEARINGHOUSE. (a) The department shall establish the
13-62 Texas Business and Community Economic Development Clearinghouse to
13-63 provide information and assistance to businesses and communities in
13-64 the state through the use of a statewide toll-free telephone
13-65 service.
13-66 (b) The clearinghouse shall collect and disseminate
13-67 information on federal, state, local, and private:
13-68 (1) business development programs, including financial
13-69 assistance and business incentive programs;
14-1 (2) business development services, including technical
14-2 assistance, workshops, business incubators, training, and useful
14-3 publications;
14-4 (3) rural and urban community economic development
14-5 programs, including loans, grants, and other funding sources;
14-6 (4) rural and urban community economic development
14-7 services, including technical assistance, workshops, training, and
14-8 useful publications;
14-9 (5) small business programs and services and useful
14-10 publications;
14-11 (6) defense economic adjustment programs and services
14-12 and useful publications; and
14-13 (7) international trade programs, services, and useful
14-14 publications.
14-15 (c) The clearinghouse shall provide access to the
14-16 information compiled under this subchapter in a user-friendly
14-17 format through the use of the Internet.
14-18 (d) The department shall obtain from other state agencies
14-19 appropriate information needed by the department to carry out its
14-20 duties under this subchapter.
14-21 (e) The comptroller shall assist the department in
14-22 furthering the purposes of this subchapter by allowing the
14-23 department to use the field offices and personnel of the
14-24 comptroller to disseminate brochures, documents, and other
14-25 information useful to businesses in the state.
14-26 SUBCHAPTER P. RESEARCH AND DATA SERVICES
14-27 Sec. 481.211. POWERS AND DUTIES. The department shall:
14-28 (1) compile and update demographic and economic
14-29 information on the state;
14-30 (2) develop and update information products for local
14-31 communities on community economic development issues and practices
14-32 that encourage regional cooperation; and
14-33 (3) compile and disseminate information on economic
14-34 and industrial development trends and issues, including NAFTA,
14-35 emerging industries, and patterns of international trade and
14-36 investment.
14-37 Sec. 481.212. COMPILATION AND DISTRIBUTION OF DATA AND
14-38 RESEARCH. (a) To serve as a one-stop center for business-related
14-39 information, the department shall obtain from other state agencies
14-40 and organizations, including the comptroller and the Texas
14-41 Workforce Commission, business-related statistics and data.
14-42 (b) To maximize the accessibility of business-related data,
14-43 the department shall create a web site to publish business-related
14-44 information on the Internet. The web site must provide connections
14-45 to other business-related web sites.
14-46 (c) The department may charge a reasonable access fee in
14-47 connection with this subchapter.
14-48 SECTION 39. Chapter 484, Government Code, is amended to read
14-49 as follows:
14-50 CHAPTER 484. TEXAS MANUFACTURING INSTITUTE
14-51 Sec. 484.001. ESTABLISHMENT. The Texas Manufacturing
14-52 Institute shall be established as a nonprofit corporation,
14-53 organized under the Texas Non-Profit Corporation Act (Article
14-54 1396-1.01 et seq., Vernon's Texas Civil Statutes), to carry out the
14-55 purposes of this chapter [consists of governmental agencies,
14-56 educational institutions, and other entities, involved in the
14-57 promotion of manufacturing, that join as members of the institute].
14-58 Sec. 484.002. DUTIES. The institute shall:
14-59 (1) identify needs within Texas' manufacturing
14-60 infrastructure, work to meet those needs, promote Texas'
14-61 manufacturing strengths and capabilities, and communicate the
14-62 importance of manufacturing to the state's economic future;
14-63 (2) develop a program of activities that will improve
14-64 Texas' manufacturing capabilities by enhancing existing research,
14-65 educational, and technical training programs aimed at developing
14-66 and transferring new manufacturing technologies and at increasing
14-67 the skilled work force in manufacturing;
14-68 (3) take all opportunities for cooperation among
14-69 manufacturing programs of participating [its member] institutions;
15-1 (4) encourage the development of the statewide
15-2 manufacturing program among participating [its member]
15-3 institutions, including the areas of microelectronics, electronics
15-4 assembly, automation and robotics, concurrent engineering, computer
15-5 integrated manufacturing, artificial intelligence applications, and
15-6 flexible manufacturing systems; and
15-7 (5) seek opportunities to facilitate cooperative
15-8 efforts among participating institutions [members of the
15-9 institute], other educational institutions in this state, private
15-10 research organizations, industry, and federal laboratories.
15-11 Sec. 484.003. Governing [POLICY] BOARD. The institute is
15-12 governed by an initial [a policy] board of directors composed of
15-13 the executive director of the Texas Department of Economic
15-14 Development and Tourism or the director's designee and one member
15-15 appointed by the lieutenant governor, one member appointed by the
15-16 speaker of the house of representatives, and one member appointed
15-17 by each entity participating in the institute [one member appointed
15-18 by each member institution]. The bylaws of the corporation shall
15-19 provide for a permanent board of directors, which must include the
15-20 executive director of the Texas Department of Economic Development
15-21 and Tourism or the director's designee, a member appointed by the
15-22 lieutenant governor, and a member appointed by the speaker of the
15-23 house of representatives. [The policy board shall elect the
15-24 chairman from among the policy board's members. The chairman
15-25 serves a two-year term. A person who has been chairman is not
15-26 eligible to be elected chairman. The policy board shall establish
15-27 policies and strategies necessary for the institute to accomplish
15-28 the purposes of this chapter.]
15-29 Sec. 484.004. CONFIDENTIALITY [TECHNICAL ADVISORY COUNCIL].
15-30 (a) Information relating to a product or process and the
15-31 application or use of a product or process, technological and
15-32 scientific information, including computer programs, and
15-33 manufacturing and business systems and processes of the customer,
15-34 developed in whole or part by a customer of the institute, are
15-35 confidential and are not subject to disclosure under state law or
15-36 otherwise, regardless of whether the product or process is
15-37 patentable or capable of being registered under copyright or
15-38 trademark laws or has a potential for being sold, traded, or
15-39 licensed for a fee.
15-40 (b) Nothing in this chapter prevents or restricts the
15-41 institute from obtaining information relating to a product or
15-42 process from an applicant or recipient of institute services or
15-43 from obtaining information related to the results of services
15-44 provided to the customer. [The policy board shall appoint a
15-45 technical advisory council to develop recommendations on the
15-46 educational and technical program priorities for the institute.
15-47 The technical advisory council consists of one representative from
15-48 each member institution, together with an equal number of
15-49 representatives from manufacturing industry, a representative of
15-50 community and junior colleges, and a senior representative from a
15-51 professional engineering society. The technical advisory council
15-52 shall be responsible for those activities assigned to it by the
15-53 policy board.]
15-54 Sec. 484.005. PUBLIC [AND PRIVATE] FUNDS. The Texas
15-55 Department of Economic Development and Tourism may contract with
15-56 the institute for the purpose of providing [may receive]
15-57 state-appropriated funds for use [and use the funds] as matching
15-58 funds for federal grants for [proposals and contracts to provide
15-59 specialized equipment and facilities for members of the institute
15-60 and to assist with technology transfer to Texas industry, and as
15-61 seed funds for new] programs and purposes within the scope of the
15-62 institute. The contract must adequately provide for the
15-63 department's oversight of the use of state funds to ensure that
15-64 those funds are being used by the institute in accordance with the
15-65 contract. The institute may accept gifts, donations, and grants,
15-66 including federal funds, to support its purposes and programs.
15-67 Sec. 484.006. IMMUNITY FROM LIABILITY [DISBURSEMENT POLICY].
15-68 (a) A member of the governing board or any person acting on behalf
15-69 of [Disbursement of funds received by] the institute in executing a
16-1 contract, commitment, or agreement under this chapter is not
16-2 personally liable on the contract, commitment, or agreement [shall
16-3 be in accordance with policy determined by the policy board subject
16-4 to the laws of the state and the policies of member institutions.
16-5 The disbursement policy must recognize the state core support for
16-6 each institution, matching requirements for federal grants and
16-7 contracts, and new cooperative initiatives. Disbursement of funds
16-8 shall reflect the division of labor as specified in the submitted
16-9 proposal].
16-10 (b) A member of the board or another person acting on behalf
16-11 of the institute is not personally liable for damage or injury
16-12 resulting from the performance of duties under this chapter.
16-13 Sec. 484.007. TRANSFER TO PRIVATE SECTOR [STAFFING].
16-14 (a) The governing board shall submit a plan for transferring the
16-15 institute to the private sector to the governor, the legislature,
16-16 and the executive director of the Texas Department of Economic
16-17 Development and Tourism not later than December 1, 1997.
16-18 (b) The transfer of the Texas Manufacturing Institute to the
16-19 private sector shall be completed not later than September 1, 1999.
16-20 [Staffing to carry out the purposes of this chapter, to the extent
16-21 required, will be provided by member institutions.]
16-22 SECTION 40. (a) Sections 481.0075, 481.026, 481.042,
16-23 481.044, 481.046, 481.048 through 481.058, 481.060, 481.061,
16-24 481.074, 481.078, 481.081 through 481.0831, 481.0841 through
16-25 481.086, 481.088 through 481.093, and 483.001 through 483.006,
16-26 Government Code, are repealed.
16-27 (b) Subchapters G, I, M, Q, R, S, T, U, V, X, and Y, Chapter
16-28 481, Government Code, are repealed.
16-29 (c) Subchapter AA, Chapter 481, Government Code, as added by
16-30 Chapter 899, Acts of the 73rd Legislature, 1993, is repealed.
16-31 SECTION 41. (a) This Act takes effect September 1, 1997.
16-32 (b) The Texas Department of Commerce is abolished and its
16-33 powers and duties are transferred to the Texas Department of
16-34 Economic Development and Tourism. A reference in law to the Texas
16-35 Department of Commerce means the Texas Department of Economic
16-36 Development and Tourism.
16-37 (c) The terms of office of the members of the policy board
16-38 of the Texas Department of Commerce expire on the effective date of
16-39 this Act. As soon as possible after the effective date of this
16-40 Act, the governor shall make appointments to the governing board of
16-41 the Texas Department of Economic Development and Tourism. In
16-42 making those appointments, the governor shall appoint three members
16-43 to terms expiring February 1, 1999, three to terms expiring
16-44 February 1, 2001, and three to terms expiring February 1, 2003.
16-45 (d) The person appointed to perform the duties of executive
16-46 director of the Texas Department of Commerce abolished by this Act
16-47 may continue to perform those duties and complete the term of
16-48 office established under the prior law governing the authority of
16-49 the executive director, and the prior law is continued in effect
16-50 for that purpose.
16-51 (e) The governor or the person appointed by the governor to
16-52 be the presiding officer of the governing board of the Texas
16-53 Department of Economic Development and Tourism may designate a
16-54 person to perform ministerial duties necessary for posting notice
16-55 of and holding the first meeting of the governing board of the
16-56 Texas Department of Economic Development and Tourism.
16-57 (f) The Texas Department of Economic Development and Tourism
16-58 has all the powers and duties provided by law and all the property,
16-59 funds, rules, employees, unspent appropriations, documents, rights,
16-60 and obligations of the abolished Texas Department of Commerce,
16-61 except to the extent the laws governing the Texas Department of
16-62 Commerce's powers and duties are amended by this Act.
16-63 (g) The rules, policies, procedures, and decisions of the
16-64 Texas Department of Commerce are continued in effect as rules,
16-65 policies, procedures, and decisions of the Texas Department of
16-66 Economic Development and Tourism until superseded by a rule or
16-67 other appropriate action of the Texas Department of Economic
16-68 Development and Tourism.
16-69 (h) The validity of a rule, form, or procedure adopted,
17-1 contract or acquisition made, proceeding begun, obligation
17-2 incurred, right accrued, or other action taken by or in connection
17-3 with the authority of the Texas Department of Commerce before it is
17-4 abolished under Subsection (b) of this section is not affected by
17-5 this Act. To the extent those actions continue to have any effect
17-6 on or after September 1, 1997, they are considered to be the
17-7 actions of the Texas Department of Economic Development and
17-8 Tourism.
17-9 SECTION 42. The importance of this legislation and the
17-10 crowded condition of the calendars in both houses create an
17-11 emergency and an imperative public necessity that the
17-12 constitutional rule requiring bills to be read on three several
17-13 days in each house be suspended, and this rule is hereby suspended.
17-14 * * * * *