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                                 * * * * *