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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 481.078,
Government Code, is amended by amending Subsections (c), (d-1), (e), (e-1),
(f), and (k) and adding Subsections (e-2), (e-3), and (m) to read as
follows:
(c) Except as provided by
Subsections (d) and (d-1), the fund may be used only for:
(1) economic
development, infrastructure development, community development, job
training programs, and business incentives; and
(2) projects for
commercialization of property derived from research developed at or through
public or private institutions of higher education as provided by Section
481.081.
(d-1) The fund may be used
for the Texas homeless housing and services program administered by the
Texas Department of Housing and Community Affairs under Section 2306.2585.
The governor may transfer appropriations from the fund to the Texas
Department of Housing and Community Affairs to fund the Texas homeless
housing and services program. Subsections (e-3) [(e-1)],
(f), (f-1), (f-2), (g), (h), (h-1), (i), and (j) and Section 481.080 do not
apply to a grant awarded for a purpose specified by this subsection.
(e) 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
awarding, by grant, money appropriated from the fund.
(e-1) Of the amount of money available in each state fiscal year
for distribution from the fund for awarding grants:
(1) 20 percent may be used only for grants to small businesses as
provided by Subsection (k);
(2) 15 percent may be used only for grants to public or private
institutions of higher education for projects involving commercialization
of property as provided by Section 481.081; and
(3) 65 percent may be used only for the other purposes for which
money from the fund may be used.
(e-2) The governor
may award money appropriated from the fund only with the prior approval of
the lieutenant governor and speaker of the house of representatives. For
purposes of this subsection, an award of money appropriated from the fund
is considered disapproved by the lieutenant governor or speaker of the
house of representatives if that officer does not approve the proposal to
award the grant 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.
(e-3) [(e-1)]
To be eligible to receive a grant under this section, the entity must:
(1) be in good standing
under the laws of the state in which the entity was formed or organized, as
evidenced by a certificate issued by the secretary of state or the state
official having custody of the records pertaining to entities or other
organizations formed under the laws of that state; and
(2) owe no delinquent taxes
to a taxing unit of this state.
(f) Before awarding a grant from
the fund [under this section], the governor shall enter into a
written agreement with the entity to be awarded the grant money. If the
entity is awarded a grant for a purpose described by Subsection (c)(1), the
agreement must specify [specifying] that:
(1) if the governor finds
that the grant recipient has not met each of the performance targets
specified in the agreement as of a date certain provided in the agreement:
(A) the recipient shall
repay the grant and any related interest to the state at the agreed rate
and on the agreed terms;
(B) the governor will not
distribute to the recipient any grant money that remains to be awarded
under the agreement; and
(C) the governor may assess
specified penalties for noncompliance against the recipient;
(2) if all or any portion of
the amount of the grant is used to build a capital improvement, the state
may:
(A) retain a lien or other
interest in the capital improvement in proportion to the percentage of the
grant amount used to pay for the capital improvement; and
(B) require the recipient of
the grant, if the capital improvement is sold, to:
(i) repay to the state the
grant money used to pay for the capital improvement, with interest at the
rate and according to the other terms provided by the agreement; and
(ii) share with the state a
proportionate amount of any profit realized from the sale; and
(3) if, as of a date certain
provided in the agreement, the grant recipient has not used grant money
awarded under this section for the purposes for which the grant was
intended, the recipient shall repay that amount and any related interest to
the state at the agreed rate and on the agreed terms.
(k) To encourage the
development and location of small businesses in this state, the governor
shall make [consider making] grants from the fund:
(1) to recipients that are
small businesses in this state that commit to using the grants to create
additional jobs;
(2) to recipients that are
small businesses from outside the state that commit to relocate to this
state; or
(3) for individual projects
that create 100 or fewer additional jobs.
(m) The office of the
governor shall adopt rules for the operation of the trusteed program
established under this section. The rules must include:
(1) forms and procedures
for applications for and the award of grants;
(2) procedures for
evaluating grant applications;
(3) provisions governing
the grant agreement process;
(4) methods and
procedures for monitoring grant recipients and projects or activities for
which a grant is awarded from the fund to determine whether and to what
extent the grant recipients comply with job creation performance targets,
capital investment commitments, or other specified performance targets in
the grant agreement, including requirements that grant recipients provide
to the office periodic compliance updates;
(5) document retention
requirements for grant recipients that are consistent with applicable state
law; and
(6) conflict of interest
provisions to ensure that persons involved in the operation of the program,
including persons involved in evaluating applications for or awarding
grants from the fund or in monitoring grant recipients or determining
compliance with the terms of grant agreements, do not have a substantial
interest in any grant recipient or grant awarded from the fund.
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SECTION 1. Section 481.078,
Government Code, is amended by amending Subsections (c), (d-1), (e), (e-1),
(f), and (k) and adding Subsections (e-2) and (m) to read as follows:
(c) Except as provided by
Subsections (d) and (d-1), the fund may be used only for:
(1) economic
development, infrastructure development, community development, job
training programs, and business incentives; and
(2) projects for
commercialization of property derived from research developed at or through
public or private institutions of higher education as provided by Section
481.081.
(d-1) The fund may be used
for the Texas homeless housing and services program administered by the
Texas Department of Housing and Community Affairs under Section 2306.2585.
The governor may transfer appropriations from the fund to the Texas
Department of Housing and Community Affairs to fund the Texas homeless
housing and services program. Subsections (e-2) [(e-1)],
(f), (f-1), (f-2), (g), (h), (h-1), (i), and (j) and Section 481.080 do not
apply to a grant awarded for a purpose specified by this subsection.
(e) 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
awarding, by grant, money appropriated from the fund.
(e-1) The governor
may award money appropriated from the fund only with the prior approval of
the lieutenant governor and speaker of the house of representatives. For
purposes of this subsection, an award of money appropriated from the fund
is considered disapproved by the lieutenant governor or speaker of the
house of representatives if that officer does not approve the proposal to
award the grant before the 31st [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.
(e-2) [(e-1)]
To be eligible to receive a grant under this section, the entity must:
(1) be in good standing
under the laws of the state in which the entity was formed or organized, as
evidenced by a certificate issued by the secretary of state or the state
official having custody of the records pertaining to entities or other
organizations formed under the laws of that state; and
(2) owe no delinquent taxes
to a taxing unit of this state.
(f) Before awarding a grant from
the fund [under this section], the governor shall enter into a
written agreement with the entity to be awarded the grant money. If the
entity is awarded a grant for a purpose described by Subsection (c)(1), the
agreement must specify [specifying] that:
(1) if the governor finds
that the grant recipient has not met each of the performance targets
specified in the agreement as of a date certain provided in the agreement:
(A) the recipient shall
repay the grant and any related interest to the state at the agreed rate
and on the agreed terms;
(B) the governor will not
distribute to the recipient any grant money that remains to be awarded
under the agreement; and
(C) the governor may assess
specified penalties for noncompliance against the recipient;
(2) if all or any portion of
the amount of the grant is used to build a capital improvement, the state
may:
(A) retain a lien or other
interest in the capital improvement in proportion to the percentage of the
grant amount used to pay for the capital improvement; and
(B) require the recipient of
the grant, if the capital improvement is sold, to:
(i) repay to the state the
grant money used to pay for the capital improvement, with interest at the
rate and according to the other terms provided by the agreement; and
(ii) share with the state a
proportionate amount of any profit realized from the sale; and
(3) if, as of a date certain
provided in the agreement, the grant recipient has not used grant money
awarded under this section for the purposes for which the grant was
intended, the recipient shall repay that amount and any related interest to
the state at the agreed rate and on the agreed terms.
(k) To encourage the
development and location of small businesses in this state, the governor
shall make [consider making] grants from the fund:
(1) to recipients that are
small businesses in this state that commit to using the grants to create
additional jobs;
(2) to recipients that are
small businesses from outside the state that commit to relocate to this
state; or
(3) for individual projects
that create 100 or fewer additional jobs.
(m) The office of the
governor shall adopt rules for the operation of the trusteed program
established under this section. The rules must include:
(1) forms and procedures
for applications for and the award of grants;
(2) procedures for
evaluating grant applications;
(3) provisions governing
the grant agreement process;
(4) methods and
procedures for monitoring grant recipients and projects or activities for
which a grant is awarded from the fund to determine whether and to what
extent the grant recipients comply with job creation performance targets,
capital investment commitments, or other specified performance targets in
the grant agreement, including requirements that grant recipients provide
to the office periodic compliance updates;
(5) document retention
requirements for grant recipients that are consistent with applicable state
law; and
(6) conflict of interest
provisions to ensure that persons involved in the operation of the program,
including persons involved in evaluating applications for or awarding
grants from the fund or in monitoring grant recipients or determining
compliance with the terms of grant agreements, do not have a substantial
interest in any grant recipient or grant awarded from the fund.
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SECTION 2. Section
481.079(a-1), Government Code, is amended.
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SECTION 2. Same as introduced
version.
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SECTION 3. Subchapter E,
Chapter 481, Government Code, is amended by adding Section 481.081 to read
as follows:
Sec. 481.081. TEXAS
ENTERPRISE FUND: GRANT FOR UNIVERSITY RESEARCH DEVELOPMENT WITH PRIVATE
SPONSORSHIP. (a) In this section:
(1) "Fund"
means the Texas Enterprise Fund under Section 481.078.
(2) "Public or
private institution of higher education" means an institution of
higher education or a private or independent institution of higher
education as those terms are defined by Section 61.003, Education Code.
(b) The governor shall
provide grants from the fund to supplement other funding for projects
involving the commercialization of intellectual property or other property
derived from research developed at or through a public or private
institution of higher education. To be eligible for a grant under this
section, a project must be supported by funding provided by one or more
private entities participating in the project, in addition to any funding
provided by the public or private institution of higher education.
(c) The amount of a grant
awarded under this section may not exceed 50 percent of the total amount of
investment in the project provided by the applicable public or private
institution of higher education and the participating private entity or
entities.
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SECTION 3. Subchapter E,
Chapter 481, Government Code, is amended by adding Section 481.081 to read
as follows:
Sec. 481.081. TEXAS
ENTERPRISE FUND: GRANT FOR UNIVERSITY RESEARCH DEVELOPMENT WITH PRIVATE
SPONSORSHIP. (a) In this section:
(1) "Fund"
means the Texas Enterprise Fund under Section 481.078.
(2) "Public or
private institution of higher education" means an institution of
higher education or a private or independent institution of higher
education as those terms are defined by Section 61.003, Education Code.
(b) The governor shall
provide grants to public or private
institutions of higher education from the fund to supplement other
funding for projects involving the commercialization of intellectual
property or other property derived from research developed at or through a
public or private institution of higher education. To be eligible for a
grant under this section, a project must be supported by funding provided
by one or more private entities participating in the project, in addition
to any funding provided by the public or private institution of higher
education.
(c) The amount of a grant
awarded under this section may not exceed 50 percent of the total amount of
investment in the project provided by the applicable public or private
institution of higher education and the participating private entity or
entities.
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SECTION 4. Subchapter G,
Chapter 404, Government Code, is amended by adding Section 404.1031.
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SECTION 4. Same as introduced
version.
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SECTION 5. Effective
September 1, 2016, Subchapter G, Chapter 404, Government Code, is amended
by adding Section 404.1032 to read as follows:
Sec. 404.1032. VALUATION
OF INVESTMENTS FROM FORMER FUND; ANNUAL REPORT. (a) To the maximum extent
practicable, the trust company annually shall perform a valuation of the
equity positions the governor took, on behalf of the state, in companies
that received awards under the former Texas emerging technology fund and of
other investments made by the governor, on behalf of the state, in
connection with an award under that fund. The valuation must be based on a
methodology that is consistent with generally accepted accounting
principles.
(b) Not later than
January 31 of each year, the trust company 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 trust company's Internet website a report of any valuation
performed under this section during the preceding state fiscal year.
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SECTION 5. Effective
September 1, 2016, Subchapter G, Chapter 404, Government Code, is amended
by adding Section 404.1032 to read as follows:
Sec. 404.1032. VALUATION
OF INVESTMENTS FROM FORMER FUND; ANNUAL REPORT. (a) To the maximum extent
practicable, the trust company annually shall perform a valuation of the
equity positions the governor took, on behalf of the state, in companies
that received awards under the former Texas emerging technology fund and of
other investments made by the governor, on behalf of the state, in
connection with an award under that fund. The valuation must be based on a
methodology that is consistent with generally accepted accounting
principles.
(b) Not later than
January 31 of each year, the trust company 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 trust company's Internet
website a report of any valuation performed under this section during the
preceding state fiscal year.
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SECTION 6. The heading to
Chapter 490, Government Code, is amended.
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SECTION 6. Same as introduced
version.
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SECTION 7. Sections 490.001(2)
and (4), Government Code, are amended.
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SECTION 7. Same as introduced
version.
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SECTION 8. The heading to
Section 490.005, Government Code, is amended.
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SECTION 8. Same as introduced
version.
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SECTION 9. Section 490.005,
Government Code, is amended.
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SECTION 9. Same as introduced
version.
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SECTION 10. Effective
September 1, 2016, Subchapter A, Chapter 490, Government Code, is amended.
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SECTION 10. Same as
introduced version.
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SECTION 11. Section 490.006,
Government Code, is amended.
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SECTION 11. Same as
introduced version.
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SECTION 12. The heading to
Subchapter B, Chapter 490, Government Code, is amended.
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SECTION 12. Same as
introduced version.
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SECTION 13. Section 490.057,
Government Code, is amended.
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SECTION 13. Same as
introduced version.
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SECTION 14. Section
50D.013(a), Agriculture Code, is amended.
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SECTION 14. Same as
introduced version.
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SECTION 15. Section
203.021(e), Labor Code, is amended.
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SECTION 15. Same as
introduced version.
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SECTION 16. The following
laws are repealed:
(1) Sections 490.001(1),
(3), and (5), Government Code;
(2) Sections 490.002 and
490.003, Government Code;
(3) Sections 490.051,
490.052, 490.0521, 490.053, 490.054, 490.055, and 490.056, Government Code;
and
(4) Subchapters C, D, E, F,
and G, Chapter 490, Government Code.
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SECTION 16. Same as
introduced version.
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SECTION 17. (a) On
September 1, 2015, the Texas emerging technology fund is abolished and, except as provided by Subsections (c) and (d) of
this section, the comptroller shall transfer the unencumbered
balance of the fund as follows:
(1) 50 percent of the balance to the credit of the Texas
Research Incentive Program (TRIP) under Subchapter F, Chapter 62, Education
Code; and
(2)
50 percent of the balance to the credit of the skills development fund
program under Chapter 303, Labor Code.
(b) The abolishment by this
Act of the Texas emerging technology fund and the repeal of provisions of
Chapter 490, Government Code, relating to that fund do not affect the
validity of an agreement between the governor and an award recipient or a
person to be awarded money that is entered into under Chapter 490 before
September 1, 2015.
(c) Money that was deposited
in the Texas emerging technology fund as a gift, grant, or donation under
Chapter 490, Government Code, and that is encumbered by the specific terms
of the gift, grant, or donation may be spent only in accordance with the
terms of the gift, grant, or donation.
(d) Money from the Texas
emerging technology fund that is encumbered because the money is awarded or
otherwise obligated by agreement before September 1, 2015, but under the
terms of the award or agreement will not be distributed until a later date
shall be distributed in accordance with the terms of the award or
agreement. If the governor determines that the money will not be
distributed in accordance with the terms of the award or agreement, the
governor shall certify that fact to the comptroller. On that
certification, the comptroller shall make that money available in the
general revenue fund to be used in accordance with legislative
appropriation.
(e) On or after the
effective date of this Act, subject to any amounts used to recover costs
under Section 404.1031(b), Government Code, as added by this Act, the
following payments or other amounts shall be sent to the comptroller for
deposit to the general revenue fund:
(1) any royalties, revenues,
and other financial benefits realized from a project undertaken with money
from the Texas emerging technology fund, as provided by a contract
described by former Section 490.103, Government Code;
(2) any interest or proceeds
received as a result of a transaction authorized by former Section
490.101(h), Government Code;
(3) any money returned or
repaid to the state by an award recipient pursuant to an agreement entered
into under former Section 490.101, Government Code;
(4) any money derived from
an interest the state retained in a capital improvement pursuant to an
agreement entered into under former Section 490.101, Government Code; and
(5) any fund money returned
by an entity that fails to perform an action guaranteed by a contract
entered into under former Section 490.154 or 490.203, Government Code.
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SECTION 17. (a) On
September 1, 2015, the Texas emerging technology fund is abolished. Any
unencumbered balance of the fund may be
appropriated only to any of the following:
(1) the Texas Research
Incentive Program (TRIP) under Subchapter F, Chapter 62, Education Code;
(2)
the Texas research university fund, subject to Subsection (b) of this
section; and
(3)
the comptroller for the purposes of expenses incurred in managing the
state's portfolio of equity positions and other investments in connection
with awards from the former Texas emerging technology fund in accordance
with Section 404.1031, Government Code, as added by this Act.
(b)
The authority of the Texas research university fund to receive the
appropriation described by Subsection (a) of this section is contingent on
passage and enactment of H.B. 1000, or similar legislation relating to
state support for general academic teaching institutions in this state by
the 84th Legislature, Regular Session, 2015, that renames the existing
Texas competitive knowledge fund and changes the purposes for which the
fund can be used.
(c) The abolishment by this
Act of the Texas emerging technology fund and the repeal of provisions of
Chapter 490, Government Code, relating to that fund do not affect the
validity of an agreement between the governor and an award recipient or a
person to be awarded money that is entered into under Chapter 490 before
September 1, 2015.
(d) Money that was deposited
in the Texas emerging technology fund as a gift, grant, or donation under
Chapter 490, Government Code, and that is encumbered by the specific terms
of the gift, grant, or donation may be spent only in accordance with the
terms of the gift, grant, or donation.
(e) Money from the Texas
emerging technology fund that is encumbered because the money is awarded or
otherwise obligated by agreement before September 1, 2015, but under the
terms of the award or agreement will not be distributed until a later date
shall be distributed in accordance with the terms of the award or
agreement. If the governor determines that the money will not be distributed
in accordance with the terms of the award or agreement, the governor shall
certify that fact to the comptroller. On that certification, the
comptroller shall make that money available in the general revenue fund to
be used in accordance with legislative appropriation.
(f) On or after the
effective date of this Act, subject to any amounts used to recover costs
under Section 404.1031(b), Government Code, as added by this Act, the
following payments or other amounts shall be sent to the comptroller for deposit
to the general revenue fund to be used in
accordance with legislative appropriation:
(1) any royalties, revenues,
and other financial benefits realized from a project undertaken with money
from the Texas emerging technology fund, as provided by a contract
described by former Section 490.103, Government Code;
(2) any interest or proceeds
received as a result of a transaction authorized by former Section
490.101(h), Government Code;
(3) any money returned or
repaid to the state by an award recipient pursuant to an agreement entered
into under former Section 490.101, Government Code;
(4) any money derived from
an interest the state retained in a capital improvement pursuant to an
agreement entered into under former Section 490.101, Government Code; and
(5) any fund money returned
by an entity that fails to perform an action guaranteed by a contract
entered into under former Section 490.154 or 490.203, Government Code.
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SECTION 18. A regional
center of innovation and commercialization established under Section
490.152, Government Code, is abolished on the effective date of this Act.
Each center shall transfer to the office of the governor a copy of any
meeting minutes required to be retained under Section 490.1521, Government
Code, as that section existed immediately before that section's repeal by
this Act, and the office shall retain the minutes for the period prescribed
by that section.
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SECTION 18. Same as
introduced version.
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SECTION 19. On September 1,
2015, the Texas Emerging Technology Advisory Committee established under
Subchapter B, Chapter 490, Government Code, is abolished.
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SECTION 19. Same as
introduced version.
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SECTION 20. Except as
provided by this Act, on September 1, 2015, the following powers, duties,
functions, and activities performed by the office of the governor
immediately before that date are transferred to the Texas Treasury
Safekeeping Trust Company:
(1) all powers, duties,
functions, and activities related to equity positions in the form of stock
or other security the governor has taken, on behalf of the state, in
companies that received awards under the Texas emerging technology fund
before September 1, 2015; and
(2) all powers, duties,
functions, and activities related to other investments made by the
governor, on behalf of the state, in connection with an award made under
the Texas emerging technology fund before September 1, 2015.
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SECTION 20. Same as
introduced version.
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SECTION 21. If a conflict
exists between this Act and another Act of the 84th Legislature, Regular
Session, 2015, that relates to the Texas emerging technology fund, this Act
controls without regard to the relative dates of enactment.
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SECTION 21. Same as
introduced version.
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SECTION 22. Except as
otherwise provided by this Act, this Act takes effect September 1, 2015.
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SECTION 22. Same as
introduced version.
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