|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the Texas emerging technology fund. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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]. |
|
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]. |
|
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. |
|
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. |
|
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]. |
|
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. |
|
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. |
|
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. |
|
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]. |
|
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. |
|
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. |
|
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 |
|
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. |
|
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. |
|
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. |
|
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]. |
|
SECTION 26. Sections 490.054(b), 490.056(e), and |
|
490.153(b), Government Code, are repealed. |
|
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. |
|
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. |
|
SECTION 29. This Act takes effect September 1, 2013. |