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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas emerging technology fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 490.001, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended by amending Subdivision (1) and adding Subdivision (4) |
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to read as follows: |
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(1) "Committee" means the Texas Emerging Technology |
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Advisory Committee. |
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(4) "Award" means: |
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(A) for purposes of Subchapter D, an investment |
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in the form of equity or a convertible note; |
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(B) for purposes of Subchapter E, an investment |
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in the form of a debt instrument; |
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(C) for purposes of Subchapter F, a grant; or |
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(D) other forms of contribution or investment as |
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recommended by the committee and approved by the governor, |
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lieutenant governor, and speaker of the house of representatives. |
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SECTION 2. The heading to Subchapter B, Chapter 490, |
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Government Code, as added by Chapter 280, Acts of the 79th |
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Legislature, Regular Session, 2005, is amended to read as follows: |
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SUBCHAPTER B. TEXAS EMERGING TECHNOLOGY ADVISORY COMMITTEE |
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SECTION 3. Section 490.051, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.051. COMPOSITION OF COMMITTEE. The Texas Emerging |
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Technology Advisory Committee is composed of 17 members. |
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SECTION 4. Subsection (b), Section 490.052, Government |
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Code, as added by Chapter 280, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended to read as follows: |
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(b) The following persons may nominate one or more |
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individuals who are industry leaders in this state or who are |
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nationally recognized leaders [researchers] from public or private |
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institutions of higher education in this state for appointment to |
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the committee: |
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(1) [the Texas Higher Education Coordinating Board;
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[(2)
a president of a public or private institution of
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higher education in this state;
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[(3) the members of the Texas Workforce Commission;
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[(4)] a representative of the governor's office |
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involved in economic development activities; |
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(2) [(5)] a representative of the lieutenant |
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governor's office involved in economic development activities; |
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(3) [(6)] a representative of the office of the |
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speaker of the house involved in economic development activities; |
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and |
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(4) [(7)] other persons considered appropriate by the |
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governor. |
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SECTION 5. Section 490.054, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.054. TERMS. Members of the committee serve |
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staggered two-year terms, subject to the pleasure of the governor. |
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SECTION 6. Section 490.055, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.055. [COMMITTEE] STAFF AND FUNDING. Necessary |
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staff and funding for the administration of the fund [committee] |
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shall be provided by: |
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(1) the office of the governor; |
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(2) [the Texas Higher Education Coordinating Board;
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[(3) the Texas Education Agency;
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[(4) the Texas Workforce Commission;
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[(5)
another public entity represented by a committee
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member; and
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[(6)] gifts, grants, and donations for overhead |
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expenses to the office of the governor; and |
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(3) any amount provided by the General Appropriations |
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Act to the office of the governor to administer the fund [entities
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listed in Subdivisions (1)-(5)]. |
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SECTION 7. Section 490.101, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended by amending Subsections (c), (f), and (g) and adding |
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Subsections (h) and (i) to read as follows: |
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(c) The fund may be used only for: |
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(1) the purposes described by Section 490.002; and |
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(2) necessary staff, administration of the fund |
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including administration by the office of the governor, and |
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services and expenses related to the fund as provided for by Section |
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490.055. |
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(f) The administration of the fund is considered to be a |
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trusteed program within the office of the governor. The governor |
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may negotiate on behalf of the state regarding awards [awarding, by
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grant, money appropriated] from the fund. The governor may award |
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money appropriated from the fund only with the express written |
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prior approval of the lieutenant governor and speaker of the house |
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of representatives. |
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(g) Before making an award [awarding a grant] under this |
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chapter, the governor shall enter into a written agreement with the |
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entity to receive the award [be awarded the grant money]. An |
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agreement may specify that: |
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(1) if all or any portion of the amount of the award |
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[grant] is used to build a capital improvement: |
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(A) the state retains a lien or other interest in |
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the capital improvement in proportion to the percentage of the |
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award [grant] amount used to pay for the capital improvement; and |
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(B) the recipient of the award [grant] shall, if |
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the capital improvement is sold: |
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(i) repay to the state the award [grant
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money] used to pay for the capital improvement, with interest at the |
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rate and according to the other terms provided by the agreement; and |
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(ii) share with the state a proportionate |
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amount of any profit realized from the sale; and |
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(2) if, as of a date certain provided in the agreement, |
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the award [grant] recipient has not used the award received [grant
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money awarded] under this chapter for the purposes for which the |
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award [grant] was intended, the recipient shall repay that amount |
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and any related interest applicable under the agreement to the |
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state at the agreed rate and on the agreed terms. |
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(h) The governor may make awards in the form of loans, |
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charge and receive reasonable interest for the loans, take an |
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equity position in the form of stock or other security in |
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consideration of an award, and sell or otherwise trade or exchange |
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the security for the benefit of the fund. Interest or proceeds |
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received as a result of a transaction authorized by this subsection |
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shall be deposited to the corpus of the fund and may be used in the |
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same manner as the corpus of the fund. |
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(i) The contract between the governor and a recipient of an |
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award under this chapter may set the terms relating to an award. |
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SECTION 8. Subsection (a), Section 490.102, Government |
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Code, as added by Chapter 280, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended to read as follows: |
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(a) Money appropriated to the fund by the legislature, less |
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amounts necessary to administer the fund under Section 490.055, |
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shall be allocated as follows: |
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(1) 50 percent of the money for incentives for |
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collaboration between certain entities as provided by Subchapter D; |
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(2) 16.67 [25] percent of the money for research award |
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[grant] matching as provided by Subchapter E; and |
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(3) 33.33 [25] percent of the money for acquisition of |
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research superiority as provided by Subchapter F. |
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SECTION 9. Subsection (a), Section 490.103, Government |
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Code, as added by Chapter 280, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended to read as follows: |
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(a) The contract between the governor and a recipient of an |
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award [awarded a grant] under this chapter shall provide for the |
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distribution of royalties, revenue, or other financial benefits |
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realized from the commercialization of intellectual or real |
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property developed from any award [grant awarded] from the fund. To |
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the extent authorized by law and not in conflict with another |
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agreement, the contract shall appropriately allocate by |
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assignment, licensing, or other means the royalties, revenue, or |
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other financial benefits among identifiable collaborating parties |
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and in a specified percentage to this state for deposit in the fund. |
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SECTION 10. The heading to Subchapter D, Chapter 490, |
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Government Code, as added by Chapter 280, Acts of the 79th |
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Legislature, Regular Session, 2005, is amended to read as follows: |
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SUBCHAPTER D. INCENTIVES FOR [TO CREATE REGIONAL CENTERS OF
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INNOVATION AND] COMMERCIALIZATION ACTIVITIES |
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SECTION 11. Subsection (a), Section 490.151, Government |
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Code, as added by Chapter 280, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended to read as follows: |
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(a) Amounts allocated from the fund for use as provided by |
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this subchapter shall be reserved for incentives for private or |
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nonprofit entities to collaborate with public or private |
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institutions of higher education or other entities considered |
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appropriate by the committee in this state on emerging technology |
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projects with a demonstrable economic benefit to this state. |
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SECTION 12. Section 490.153, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.153. PRIORITY FOR FUNDING. (a) In allocating |
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[awarding] money from the fund under this subchapter, priority |
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shall be given to proposals that: |
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(1) involve emerging scientific or technology fields |
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that have a reasonable probability of enhancing this state's |
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national and global economic competitiveness; |
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(2) may result in a medical or scientific |
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breakthrough; |
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(3) are collaborative between any combination of |
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private or nonprofit entities and public or private agencies or |
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institutions in this state; |
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(4) are matched with other available funds, including |
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funds from the private or nonprofit entity or institution of higher |
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education collaborating on the project; or |
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(5) have a demonstrable economic development benefit |
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to this state. |
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(b) An amount not to exceed two percent of the amount |
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allocated for a fiscal biennium for incentives under this |
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subchapter may be invested directly in the regional centers of |
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innovation and commercialization as recommended by the committee |
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and approved by the governor, lieutenant governor, and speaker of |
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the house of representatives to support commercialization |
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activities. |
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SECTION 13. Section 490.155, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.155. GUARANTEE OF COMMERCIALIZATION OR |
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MANUFACTURING IN TEXAS. A person or entity receiving [awarded] |
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money from the fund under this subchapter must guarantee by |
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contract that a substantial percentage of any new or expanded |
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commercialization or manufacturing [of any real or intellectual
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product] resulting from the award will be established in this |
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state. |
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SECTION 14. Subsection (a), Section 490.156, Government |
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Code, as added by Chapter 280, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended to read as follows: |
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(a) A person receiving [awarded] money from the fund under |
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this subchapter may use the money to expedite commercialization |
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that will lead to an increase in high-quality jobs in this state and |
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shall use the money in accordance with a contract between the person |
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and the office of the governor [committee]. |
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SECTION 15. The heading to Subchapter E, Chapter 490, |
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Government Code, as added by Chapter 280, Acts of the 79th |
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Legislature, Regular Session, 2005, is amended to read as follows: |
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SUBCHAPTER E. RESEARCH AWARD [GRANT] MATCHING |
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SECTION 16. The heading to Section 490.201, Government |
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Code, as added by Chapter 280, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended to read as follows: |
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Sec. 490.201. USE OF MONEY FOR RESEARCH AWARD [GRANT] |
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MATCHING. |
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SECTION 17. Section 490.202, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.202. PRIORITY FOR FUNDING. In allocating |
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[awarding] money from the fund under this subchapter, priority |
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shall be given to proposals that accelerate commercialization into |
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production by targeting programs that: |
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(1) address federal or other major research sponsors' |
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priorities in emerging scientific or technology fields; |
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(2) are interdisciplinary; |
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(3) are collaborative with a combination of public or |
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private institutions of higher education in this state; |
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(4) are likely to result in a medical or scientific |
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breakthrough; or |
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(5) have a demonstrable economic development benefit |
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to this state. |
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SECTION 18. Subsection (a), Section 490.253, Government |
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Code, as added by Chapter 280, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended to read as follows: |
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(a) The committee shall review and consider [solicit and
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identify] proposals by public institutions of higher education for: |
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(1) creating new research superiority; |
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(2) attracting existing research superiority from |
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institutions not located in this state and other research entities; |
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or |
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(3) enhancing existing research superiority by |
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attracting from outside this state additional researchers and |
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resources. |
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SECTION 19. Section 490.254, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.254. PRIORITY FOR FUNDING. In allocating |
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[awarding] money from the fund under this subchapter, priority |
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shall be given to proposals that: |
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(1) involve scientific or technical fields that have a |
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reasonable probability of enhancing this state's national and |
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global economic competitiveness; |
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(2) may result in a medical or scientific |
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breakthrough; |
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(3) are interdisciplinary; |
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(4) have attracted or may attract federal and other |
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funding for research superiority; |
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(5) are likely to create a nationally or |
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internationally recognized locus of research superiority; or |
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(6) are matched with other funds available to the |
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institution seeking funding under this subchapter. |
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SECTION 20. Section 490.255, Government Code, as added by |
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Chapter 280, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.255. AUTHORIZED EXPENSES. Money allocated |
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[awarded] from the fund under this subchapter may be used for |
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research and research capability acquisition, including salaries |
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and benefits, travel, consumable supplies, other operating |
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expenses, capital equipment, and construction or renovation of |
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facilities. |
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SECTION 21. (a) The changes in law made by this Act to |
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Sections 490.052 and 490.054, Government Code, as added by Chapter |
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280, Acts of the 79th Legislature, Regular Session, 2005, apply |
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only to a member of the Texas Emerging Technology Advisory |
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Committee for a term beginning on or after September 1, 2007. |
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(b) At the first meeting of the Texas Emerging Technology |
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Advisory Committee after September 1, 2007, the committee members |
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shall draw lots to determine which eight members will serve |
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one-year terms beginning on the date on which the next term |
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beginning on or after September 1, 2007, begins. |
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SECTION 22. This Act takes effect September 1, 2007. |
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