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INTRODUCED
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HOUSE COMMITTEE SUBSTITUTE
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No
equivalent provision.
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SECTION
1. Sections 490.001(1) and (4), Government Code, are amended to read as
follows:
(1) "Board"
["Committee"] means the Texas Emerging Technology Fund
Board [Advisory Committee].
(4)
"Award" means:
(A) for
purposes of Subchapter D, an investment in the form of equity or a
convertible note;
(B) for
purposes of Subchapter E, an investment in the form of a debt instrument;
(C) for
purposes of Subchapter F, a grant; or
(D)
other forms of contribution or investment as recommended by the board
[committee] and approved by the governor, lieutenant governor, and
speaker of the house of representatives.
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No
equivalent provision.
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SECTION
2. Section 490.003, Government Code, is amended to read as follows:
Sec.
490.003. EMERGING TECHNOLOGY INDUSTRIES. (a) An emerging technology
industry participant may be [is] eligible for funding under
this chapter if the activity to be funded:
(1) will
result in the creation of high-quality new jobs in this state, immediately
or over a longer period; [or]
(2) has
the potential to result in a medical or scientific breakthrough or a
breakthrough in the area of clean energy; or
(3)
will result in the commercialization of a scientific breakthrough derived
from research conducted at or owned by a research institution.
(b)
Emerging technology industries include industries related to:
(1)
semiconductors;
(2)
information;
(3)
computer and software technology;
(4)
energy;
(5)
manufactured energy systems;
(6)
micro-electromechanical systems;
(7) nanotechnology;
(8)
biotechnology;
(9)
medicine;
(10)
life sciences;
(11)
petroleum refining and chemical processes;
(12)
aerospace;
(13)
defense; [and]
(14) water;
and
(15)
other pursuits, as determined by the governor in consultation with the lieutenant
governor and the speaker of the house of representatives.
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No
equivalent provision.
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SECTION
3. Sections 490.005(a) and (b), Government Code, are amended to read as
follows:
(a) Not
later than January 31 of each year, the governor shall submit to the
lieutenant governor, the speaker of the house of representatives, and the
standing committee of each house of the legislature with primary
jurisdiction over economic development matters and post on the office of
the governor's Internet website a report that includes the following
information regarding awards made under the fund during each preceding
state fiscal year:
(1) the
total number and amount of awards made;
(2) the
number and amount of awards made under Subchapters D, E, and F;
(3) the
aggregate total of private sector investment, federal government funding,
and contributions from other sources obtained in connection with awards
made under each of the subchapters listed in Subdivision (2);
(4) the
name of each award recipient and the amount of the award made to the
recipient; [and]
(5) a
brief description of the equity position that the governor, on behalf of
the state, may take in companies receiving awards and the names of the
companies in which the state has taken an equity position; and
(6) a
description of the types of securities the governor, on behalf of the
state, has taken in companies that have received an award.
(b) The
annual report must also contain:
(1) the aggregate
total number of jobs, broken down according to the industry sectors
described by Section 490.003(b), actually created by all projects
[each project] receiving funding under this chapter;
(2) an
analysis of the number of jobs, broken down according to the industry
sectors described by Section 490.003(b), actually created by all
projects [each project] receiving funding under this chapter; [and]
(3) a
brief description regarding:
(A) the
methodology used to determine the information provided under Subdivisions
(1) and (2), which may be developed in consultation with the comptroller's
office;
(B) the
intended outcomes of projects funded under Subchapter D during each
preceding state fiscal year; and
(C) the
actual outcomes of all projects funded under Subchapter D during each
preceding state fiscal year, including any financial impact on the state
resulting from a liquidity event involving a company whose project was
funded under that subchapter;
(4)
the total number of jobs created by each project receiving funds under this
chapter, expressed;
(A)
in increments of 10 jobs created by the project; or
(B)
as a number that is within five percent over or under the total number of
jobs created by the project; and
(5)
the average annual salaries in the award recipients' industries.
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SECTION 1. Section 490,
Government Code, is amended to read as follows:
SUBCHAPTER B. TEXAS EMERGING
TECHNOLOGY ADVISORY COMMITTEE
Sec. 490.051. COMPOSITION OF
COMMITTEE.
The Texas Emerging Technology Advisory Committee is composed of 1517
members.
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SECTION
4. The heading to Subchapter B, Chapter 490, Government Code, is amended
to read as follows:
SUBCHAPTER
B. TEXAS EMERGING TECHNOLOGY FUND BOARD [ADVISORY COMMITTEE]
SECTION
5. Section 490.051, Government Code, is amended to read as follows:
Sec.
490.051. TEXAS EMERGING TECHNOLOGY FUND BOARD [COMPOSITION OF
COMMITTEE]. (a) The Texas Emerging Technology Fund Board is
administratively attached to the office of the governor. The governor's
office shall provide staff and other administrative support for the board.
(b) The board
[Advisory Committee] is composed of 15 [17]
members.
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Sec. 490.052. APPOINTMENT TO
COMMITTEE; NOMINATIONS.
(a) The governor shall
appoint to the committee five13
individuals nominated as provided by Subsection (b).
(a-1) The lieutenant governor
shall appoint fivetwo individuals to the committee.
(a-2) The speaker of the
house of representatives shall appoint fivetwo individuals to
the committee.
(b) The following persons
may nominate one or more individuals who are industry leaders in this state
or who are nationally recognized leaders from public or private
institutions of higher education in this state for appointment to the committee:
(1) a president of a public
or private institution of higher education in this state;
(2) a representative of the
governor's office involved in economic development activities;
(3) a representative of the
lieutenant governor's office involved in economic development activities;
(4) a representative of the
office of the speaker of the house involved in economic development
activities; and
(5) other persons considered
appropriate by the governor.
(c) The governor may
prescribe a date after which a nomination under Subsection (b) for
appointment for the next term will not be considered.
(d)
If an insufficient number of qualified individuals are nominated as
provided by Subsection (b) before the date set by the governor under
Subsection (c), the governor, lieutenant governor, or speaker of the
house may appoint any qualified individual to the board for that term.
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SECTION
6. The heading to Section 490.052, Government Code, is amended to read as
follows:
Sec.
490.052. APPOINTMENT TO BOARD [COMMITTEE]; NOMINATIONS.
SECTION
7. Sections 490.052(a), (a-1), (a-2), and (b), Government Code, are
amended to read as follows:
(a) The
governor shall appoint to the board
five [committee 13] individuals nominated as provided by
Subsection (b).
(a-1)
The lieutenant governor shall appoint five [two] individuals
to the board [committee].
(a-2)
The speaker of the house of representatives shall appoint five [two]
individuals to the board [committee].
(b) The
following persons may nominate one or more individuals who are industry
leaders in this state or who are nationally recognized leaders from public
or private institutions of higher education in this state for appointment
to the board [committee]:
(1) a
president of a public or private institution of higher education in this
state;
(2) a
representative of the governor's office involved in economic development activities;
(3) a
representative of the lieutenant governor's office involved in economic
development activities;
(4) a
representative of the office of the speaker of the house involved in
economic development activities; and
(5)
other persons considered appropriate by the governor, lieutenant governor, or speaker of the house of
representatives.
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No
equivalent provision.
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SECTION
8. Section 490.0521(a), Government Code, is amended to read as follows:
(a) Each
member of the board [committee] shall file with the office of
the governor a verified financial statement complying with Sections 572.022
through 572.0252 as is required of a state officer by Section 572.0252.
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No
equivalent provision.
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SECTION
9. Subchapter B, Chapter 490, Government Code, is amended by adding
Section 490.0522 to read as follows:
Sec.
490.0522. COMPENSATION; EXPENSES. Members of the board serve without
compensation but are entitled to reimbursement for actual and necessary
expenses incurred in attending board meetings or in performing other board
duties approved by the office of the governor.
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Sec. 490.053. PRESIDING
MEMBER. The governor, lieutenant
governor, and speaker of the house
shall, in turn, appoint a presiding member of the committee. The
selection of the presiding member will rotate between the governor,
lieutenant governor, and speaker of the house, and each presiding member
chosen will serve a two-year term.
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SECTION
10. Section 490.053, Government Code, is amended to read as follows:
Sec.
490.053. PRESIDING MEMBER. The governor shall appoint a presiding member
of the board [committee].
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Sec. 490.054. TERMS. (a)
Members of the committee appointed by
the governor, lieutenant governor, and speaker of the house serve
staggered two-year terms, subject to the pleasure
of the appointing entitygovernor.
(b) Members of the committee appointed by the lieutenant governor or
the speaker of the house of representatives serve two-year terms.
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SECTION
11. Section 490.054(a), Government Code, is amended to read as follows:
(a)
Members of the board [committee appointed by the
governor] serve staggered two-year terms, with as near as possible to one-half of the members' terms expiring
each year [subject to the
pleasure of the governor].
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Sec. 490.055. STAFF AND
FUNDING. Necessary staff and funding for the administration of the fund
shall be provided by:
(1) the office of the
governor; and
(2) gifts, grants, and
donations for overhead expenses to the office of the governor; and
(3) the advisory committee shall hire a fund manager for the purpose
of maintaining the Subchapter D grants.
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SECTION
12. Section 490.055, Government Code, is amended to read as follows:
Sec.
490.055. STAFF AND FUNDING. Necessary staff and funding for the
administration of the fund shall be provided by:
(1) the
office of the governor; [and]
(2)
gifts, grants, and donations for overhead expenses to the office of the
governor; and
(3) the fund as provided by Section 490.101.
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Sec. 490.056.
RECOMMENDATIONS FOR FUNDING. (a) The fund
manager, with the advice of the regional centers of innovation and
commercialization,committee shall make recommendations, through peer review and evaluation processes
established by the advisory committee,to the advisory board governor,
lieutenant governor, and speaker of the house of representatives
for the award of money from the fund as provided by this chapter.
(b)
The committee may establish advisory panels of knowledgeable individuals
from industry, state government, or academic occupations to assist in peer
review activities under this chapter. The final award will be made by
the advisory board.
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SECTION
13. Section 490.056, Government Code, is amended by amending Subsections
(a) and (c) and adding Subsection (a-1) to read as follows:
(a) The board [committee] shall
make recommendations, through peer review and
evaluation processes established by the board [committee], to
the governor, lieutenant governor, and speaker of the house of
representatives for the award of money from the fund under Subchapters E and F as provided by
this chapter.
(a-1) Regional centers of innovation and
commercialization formed under Subchapter I shall make recommendations to
the governor and the board for the award of money from the fund under
Subchapter D as provided by this chapter.
(c) Each entity recommended by a regional
center of innovation and commercialization [the committee] for
an award of money from the fund under Subchapter D as provided by
this chapter shall obtain and provide the following information to the
office of the governor:
(1) a federal criminal history background check
for each principal of the entity;
(2) a state criminal history background check for
each principal of the entity;
(3) a credit check for each principal of the
entity;
(4) a copy of a government-issued form of photo
identification for each principal of the entity; and
(5) information regarding whether the entity or a
principal of the entity has ever been subject to a sanction imposed by the
Securities and Exchange Commission for a violation of applicable federal
law.
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No
equivalent provision.
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SECTION
14. Section 490.057, Government Code, is amended to read as follows:
Sec.
490.057. CONFIDENTIALITY. (a) Except as provided by Subsection (b),
information collected or received by the governor's office, the board
[committee], or the board's [committee's] advisory
panels concerning the [identity,] background, finances [finance],
marketing plans, trade secrets, or other commercially or academically
sensitive information of an individual or entity having applied for,
being considered for, receiving, or having received an award from the fund
is confidential unless the individual or entity consents to disclosure of
the information.
(b) The
following information collected by the governor's office, the board
[committee], or the board's [committee's] advisory
panels under this chapter is public information and may be disclosed under
Chapter 552:
(1) the
name and address of an individual or entity receiving or having received an
award from the fund;
(2) the
amount of funding received by an award recipient from the fund;
(3) a
brief description of the project that is funded under this chapter;
(4) if
applicable, [a brief description of] the type of equity [position]
that the governor, on behalf of the state, has taken in an entity that has
received an award from the fund; [and]
(5) any
other information [designated by the committee] with the consent of[:
[(A)]
the individual or entity [receiving or having received an award from the
fund, as applicable]; and
(6)
any other information otherwise available to the public
[(B)
the governor;
[(C)
the lieutenant governor; and
[(D)
the speaker of the house of representatives].
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No
equivalent provision.
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SECTION
15. Subchapter B, Chapter 490, Government Code, is amended by adding
Sections 490.058, 490.059, and 490.060 to read as follows:
Sec.
490.058. DIVISION OF RESPONSIBILITIES. The board shall develop and
implement policies that clearly separate the policy-making responsibilities
of the board and the management responsibilities of the staff of the board.
Sec.
490.059. APPLICABILITY OF OPEN MEETINGS LAW. The board is subject to
Chapter 551.
Sec.
490.060. MEETINGS. (a) The board shall hold four regular meetings each
year and special meetings at the call of the presiding member.
(b)
Notwithstanding Chapter 551 or any other law, the board may use a telephone
conference call, videoconference, or other similar telecommunication method
in accordance with this section to establish a quorum, to hold an open or
closed meeting, to vote, or for any other meeting purpose. This subsection
applies without regard to the subject matter discussed or considered by the
board at the meeting.
(c) A
meeting held by telephone conference call, videoconference, or other
similar telecommunication method:
(1)
is subject to the notice requirements applicable to other board meetings;
(2)
may not be held unless notice of the meeting specifies the location where
the public may observe the meeting; and
(3)
must be open and audible to the public at the location specified in the
notice under Subdivision (2) during the open portions of the meeting.
(d)
The board may conduct a closed meeting under Section 551.101 to:
(1)
discuss or consider a matter that contains information that is confidential
under Section 490.057; or
(2)
hear testimony or presentations from an individual, entity, or group that
contains information that is confidential under Section 490.057.
(e)
This section does not prohibit the board from requesting the attendance at
a closed meeting of a person who is not a member of the board and who has
information regarding an applicant for or recipient of an award from the
fund.
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No
equivalent provision.
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SECTION
16. Sections 490.101(c), (d), (f), and (f-1), Government Code, are amended
to read as follows:
(c) The
fund may be used only [for]:
(1) for
the purposes described by Section 490.002; [and]
(2) for
necessary staff, administration of the fund including administration by the
office of the governor, and services and expenses related to the fund as
provided for by Section 490.055; and
(3)
to compensate the fund manager under Section 490.157.
(d) The board
[committee] may solicit and accept gifts and grants for the fund
from public and private entities.
(f) The
administration of the fund is considered to be a trusteed program within
the office of the governor. The governor may negotiate on behalf of the
state regarding awards from the fund. The governor may award money
appropriated from the fund for awards under Subchapters E and F only
with the prior approval of the lieutenant governor and speaker of the house
of representatives. The governor may award money appropriated from the
fund for awards under Subchapter D only with the prior approval of the
board.
(f-1)
For purposes of Subsection (f), an award of money appropriated from the
fund for awards under Subchapters E and F is considered disapproved
by the lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award funding before the 91st
day after the date of receipt of the proposal from the governor. The
lieutenant governor or the speaker of the house of representatives may
extend the review deadline applicable to that officer for an additional 14
days by submitting a written notice to that effect to the governor before
the expiration of the initial review period.
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No
equivalent provision.
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SECTION
17. Section 490.102(a), Government Code, is amended to read as follows:
(a)
Money appropriated to or otherwise deposited to the fund under
Section 490.101(b), including money retained in the fund from a previous
biennium [by the legislature], less amounts necessary to
administer the fund under Section 490.055, shall be allocated as follows:
(1) 46
[50] percent of the money for incentives for collaboration between
certain entities as provided by Subchapter D;
(2)
16.67 percent of the money for research award matching as provided by
Subchapter E; [and]
(3)
33.33 percent of the money for acquisition of research superiority as
provided by Subchapter F; and
(4)
four percent of the money for regional centers of innovation and
commercialization as provided by Subchapter I.
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No
equivalent provision.
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SECTION
18. Section 490.151, Government Code, is amended by adding Subsection
(a-1) and amending Subsection (b) to read as follows:
(a-1)
The following private and nonprofit entities are eligible for incentives
under this subchapter:
(1) a
private entity that is partially owned by an institution of higher
education and is seeking to commercialize technology acquired from the
partnering institution;
(2) a
private entity that is a qualified spin-out, as determined by the board, of
an institution of higher education;
(3) a
private entity seeking to commercialize technology acquired from the Lyndon
B. Johnson Space Center of the National Aeronautics and Space
Administration;
(4) a
private or nonprofit entity partnering with a research institution through
a sponsored research agreement or qualified collaborative agreement; or
(5) a
private entity that has received an award under this chapter and has
received an equity investment commitment from a qualified investor, as
determined by the board, for commercialization and growth purposes.
(b) The regional
centers of innovation and commercialization formed under Subchapter I [committee]
shall recommend proposals eligible for funding under this subchapter
[section] to the governor and the board[, lieutenant
governor, and speaker of the house of representatives].
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No
equivalent provision.
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SECTION
19. Section 490.154(a), Government Code, is amended to read as follows:
(a) An
entity participating in a regional center of innovation and
commercialization formed under Subchapter I that receives funding or
another incentive under this subchapter shall guarantee by contract with
the governor's office that the entity will perform specific actions
expected to provide benefits to this state.
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No
equivalent provision.
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SECTION
20. Subchapter D, Chapter 490, Government Code, is amended by adding
Section 490.157 to read as follows:
Sec.
490.157. FUND MANAGER. The office shall employ or contract with a fund
manager, designated by the board, to manage equity positions or other
investments received by the office of the governor in consideration for an
award made. The fund manager shall perform such duties, as determined by
the board, for the purpose of managing equity positions or other
investments made under this subchapter.
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No
equivalent provision.
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SECTION
21. Chapter 490, Government Code, is amended by adding Subchapter I, and a
heading is added to that subchapter to read as follows:
SUBCHAPTER
I. REGIONAL CENTERS OF
INNOVATION
AND COMMERCIALIZATION
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No
equivalent provision.
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SECTION
22. Sections 490.152 and 490.1521, Government Code, are transferred to
Subchapter I, Chapter 490, Government Code, as added by this Act,
redesignated as Sections 490.401 and 490.402, Government Code, and amended
to read as follows:
Sec. 490.401
[490.152]. USE OF MONEY FOR REGIONAL CENTERS OF INNOVATION
AND COMMERCIALIZATION. (a) Amounts allocated from the fund for use as
provided by this subchapter may be used by an entity described by Section
490.151(a) or an [In recommending proposals for funding, the
committee shall give specific emphasis to the formation of regional centers
of innovation and commercialization.
[(b)
An] appropriate combination of any entities described by that
subsection [Section 490.151(a) may collaborate] to form and
maintain a regional center of innovation and commercialization to serve
a region of this state.
(b)
[(c)] A regional center of innovation and commercialization shall
provide for a specified region:
(1)
research and development activities that may include initiatives to prove
the feasibility of an idea;
(2)
commercialization of the results of research and development;
(3)
incubators for new businesses and expansion of existing businesses related
to research and development; and
(4)
workforce training for businesses resulting from research and development.
(c)
[(d)] Subject to the availability of suitable partners and
resources, the board [committee] shall propose and initiate
the establishment of a regional center of innovation and commercialization
in:
(1)
Harris County;
(2)
Lubbock County;
(3)
Bexar County;
(4) the
Dallas-Fort Worth Metroplex;
(5) El
Paso County;
(6) the
Middle and Lower Rio Grande Valley; and
(7)
other suitable locations as determined by the governor in consultation with
the lieutenant governor and the speaker of the house of representatives.
Sec. 490.402
[490.1521]. MINUTES OF CERTAIN MEETINGS. (a) Each regional center
of innovation and commercialization established under Section 490.401
[490.152, including the Texas Life Science Center for Innovation and
Commercialization,] shall keep minutes of each meeting at which
applications for funding under Subchapter D [this subchapter]
are evaluated. The minutes must:
(1)
include the name of each applicant recommended by the regional center of
innovation and commercialization to the governor and board [committee]
for funding under Subchapter D; and
(2)
indicate the vote of each member of the governing body of the regional
center of innovation and commercialization, including any recusal by a
member and the member's reason for recusal, with regard to each application
reviewed.
(b) Each
regional center of innovation and commercialization shall retain a copy of
the minutes of each meeting to which this section applies for at least
three years.
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No
equivalent provision.
|
SECTION
23. Section 490.201(b), Government Code, is amended to read as follows:
(b) The board
[committee] shall recommend proposals eligible for funding under
this section to the governor, lieutenant governor, and speaker of the house
of representatives.
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No
equivalent provision.
|
SECTION
24. Section 490.253, Government Code, is amended to read as follows:
Sec.
490.253. PROPOSALS FOR FUNDING. (a) The board [committee]
shall review and consider proposals by research institutions for:
(1)
creating new research superiority;
(2)
attracting existing research superiority from institutions not located in
this state and other research entities; or
(3)
enhancing existing research superiority by attracting from outside this
state additional researchers and resources.
(b) The board
[committee] shall recommend proposals eligible for funding under
Section 490.251 and proposals solicited and identified under this section
to the governor, lieutenant governor, and speaker of the house of
representatives.
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No
equivalent provision.
|
SECTION
25. Section 490.257(b), Government Code, is amended to read as follows:
(b) The
governor, with the express written prior approval of the lieutenant
governor and the speaker of the house of representatives, may terminate
funding to an institution if the institution fails to realize a benefit
specified in the contract before a time specified in the contract, as
determined by a periodic program review conducted by the board [committee].
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No
equivalent provision.
|
SECTION
26. Sections 490.054(b), 490.056(e), and 490.153(b), Government Code, are
repealed.
|
|
No
equivalent provision.
|
SECTION
27. The terms of the members of the Texas Emerging Technology Advisory
Committee serving immediately before the effective date of this Act expire
September 1, 2013.
|
|
No
equivalent provision.
|
SECTION
28. (a) As soon as practicable after the effective date of this Act:
(1) the
governor, lieutenant governor, and speaker of the house of representatives
shall appoint members to the Texas Emerging Technology Fund Board
established under Subchapter B, Chapter 490, Government Code, in a manner
that complies with that subchapter, as amended by this Act; and
(2) the
governor shall appoint the initial presiding member of the board.
(b) At
the first meeting of members of the Texas Emerging Technology Fund Board
appointed under Subchapter B, Chapter 490, Government Code, as amended by
this Act, occurring on or after September 1, 2013:
(1) the
members appointed by the governor shall draw lots to determine which three
members will serve terms expiring September 1, 2014, and which two members
will serve terms expiring September 1, 2015;
(2) the
members appointed by the lieutenant governor shall draw lots to determine
which two members will serve terms expiring September 1, 2014, and which
three members will serve terms expiring September 1, 2015; and
(3) the
members appointed by the speaker of the house of representatives shall draw
lots to determine which two members will serve terms expiring September 1,
2014, and which three members will serve terms expiring September 1, 2015.
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SECTION 1. (continued). This
Act takes effect September 1, 2013.
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SECTION
29. This Act takes effect September 1, 2013.
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