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SENATE ENGROSSED
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HOUSE COMMITTEE
SUBSTITUTE
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No
equivalent provision.
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SECTION 1. The heading to
Chapter 490, Government Code, is amended to read as follows:
CHAPTER 490. WINDING UP
CONTRACTS AND STATE'S INVESTMENT PORTFOLIO IN CONNECTION WITH AWARDS FROM
TEXAS [FUNDING FOR] EMERGING TECHNOLOGY FUND
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No
equivalent provision. (But see Secs. 62.166 and 62.167,
Education Code, below.)
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SECTION 2. Subchapter C,
Chapter 490, Government Code, is amended by adding Sections 490.104 and
490.105 to read as follows:
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SECTION 1. Chapter 62,
Education Code, is amended by adding Subchapter H to read as follows:
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No
equivalent provision. (But see Secs. 490.104 and 490.105, Government
Code, below, and see SECTION 5 below.)
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SUBCHAPTER H. GOVERNOR'S
UNIVERSITY RESEARCH INITIATIVE
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No
equivalent provision.
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Sec. 62.161.
DEFINITIONS. In this subchapter:
(1) "Distinguished
researcher" means a researcher who is:
(A) a Nobel laureate; or
(B) a member of the
National Academy of Sciences, the National Academy of Engineering, the
Institute of Medicine, or the National Research Council.
(2) "Eligible
institution" means a general academic teaching institution or medical
and dental unit.
(3) "Fund"
means the governor's university research initiative fund established under
this subchapter.
(4) "General
academic teaching institution" has the meaning assigned by Section
61.003.
(5) "Medical and
dental unit" has the meaning assigned by Section 61.003.
(6) "Office"
means the Texas Economic Development and Tourism Office within the office
of the governor.
(7) "Private or
independent institution of higher education" has the meaning assigned
by Section 61.003.
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No
equivalent provision.
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Sec. 62.162.
ADMINISTRATION OF INITIATIVE. (a) The governor's university research
initiative is administered by the Texas Economic Development and Tourism
Office within the office of the governor.
(b) The office may adopt
any rules the office considers necessary to administer this subchapter.
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No
equivalent provision.
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Sec. 62.163. MATCHING
GRANTS TO RECRUIT DISTINGUISHED RESEARCHERS. (a) From the governor's
university research initiative fund, the office shall award matching grants
to assist eligible institutions in recruiting distinguished researchers.
(b) An eligible
institution may apply to the office for a matching grant from the fund. If
the office approves a grant application, the office shall award to the
applicant institution a grant amount equal to the amount committed by the
institution for the recruitment of a distinguished researcher.
(c) A matching grant may
not be used by an eligible institution to recruit a distinguished
researcher from:
(1) another eligible
institution; or
(2) a private or
independent institution of higher education.
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No
equivalent provision.
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Sec. 62.164. GRANT AWARD
PRIORITIES. In awarding grants, the office shall give priority to grant
proposals that involve the recruitment of distinguished researchers in the
fields of science, technology, engineering, and mathematics. With respect
to proposals involving those fields, the office shall give priority to
proposals that demonstrate a reasonable likelihood of contributing
substantially to this state's national and global economic competitiveness.
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No
equivalent provision.
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Sec. 62.165. GOVERNOR'S
UNIVERSITY RESEARCH INITIATIVE FUND. (a) The governor's university
research initiative fund is a dedicated account in the general revenue
fund.
(b) The fund consists of:
(1) amounts appropriated
or otherwise allocated or transferred by law to the fund;
(2) money deposited to
the fund under Section 62.166; and
(3) gifts, grants, and
other donations received for the fund.
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No
equivalent provision.
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Sec. 62.166. WINDING UP
OF CONTRACTS AND AWARDS IN CONNECTION WITH FORMER TEXAS EMERGING TECHNOLOGY
FUND.
(a) The governor's
university research initiative is the successor to the former Texas
emerging technology fund. Awards from the former Texas emerging technology
fund, and contracts governing awards from that fund, shall be wound up in
accordance with this section.
(b) If a contract
governing an award from the former Texas emerging technology fund provides
for the distribution of royalties, revenue, or other financial benefits to
the state, including royalties, revenue, or other financial benefits
realized from the commercialization of intellectual or real property
developed from an award from the fund, those royalties, revenues, or other
financial benefits shall continue to be distributed in accordance with the
terms of the contract unless the award recipient and the governor agree
otherwise. Unless otherwise required by law, royalties, revenue, or other
financial benefits accruing to the state under a contract described by this
subsection shall be credited to the governor's university research
initiative fund.
No
equivalent provision. (But see Subsec. (e) below.)
(c) If money awarded from
the former Texas emerging technology fund is encumbered by a contract
executed before September 1, 2015, but has not been distributed before that
date, the money shall be distributed from the governor's university
research initiative fund in accordance with the terms of the contract,
unless the award recipient and the governor agree otherwise.
(d) If money awarded from
the former Texas emerging technology fund under a contract executed before
September 1, 2015, has been fully distributed, the entity that received the
award is considered to have fully satisfied the entity's obligations and
fully performed all specific actions under the terms of the contract
governing the award. The entity shall file with the office a final report
showing the purposes for which the award money has been spent and, if award
money remains unspent, the purposes for which the recipient will spend the
remaining money. The entity is not required to return to the state any
award money received under the contract.
(e) The Texas Treasury
Safekeeping Trust Company shall manage the following:
(1) equity positions in
the form of stock or other security taken by the governor, on behalf of the
state, in companies receiving awards under former Chapter 490, Government
Code, before September 1, 2015; and
(2) any other
investments, excluding grants, made by the governor on the state's behalf
in connection with an award made under former Chapter 490, Government Code,
before September 1, 2015.
(f) As soon as practicable after September 1, 2015,
the Texas Treasury Safekeeping Trust Company shall begin winding up the
state's portfolio of equity positions and
other investments described by Subsection (e) by selling the stock and
other investments when it is economically advantageous to the state to do
so.
The trust company has any
power necessary in performing duties under this subsection and Subsections
(e) and (g) to accomplish the purpose of this section.
In managing those
investments through procedures and subject to restrictions that the trust
company considers appropriate, the trust company may acquire, exchange,
sell, supervise, manage, or retain any kind of investment that a prudent
investor, exercising reasonable care, skill, and caution, would acquire or
retain in light of the purposes, terms, distribution requirements, and
other circumstances then prevailing pertinent to each investment.
(g) Proceeds or other
earnings from the sale of stock or other investments in the state's
portfolio of equity positions and other investments described by Subsection
(e) shall be deposited to the credit of the governor's university research
initiative fund, taking into consideration the expenses of managing and
liquidating the equity positions and other investments.
No
equivalent provision.
(See Subsec. (f), part,
above.)
No
equivalent provision.
No
equivalent provision.
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Sec. 490.104. MANAGEMENT
OF INVESTMENT PORTFOLIO; WINDING UP AND FINAL LIQUIDATION.
No
equivalent provision.
No
equivalent provision.
(a) In this section,
"state's emerging technology investment portfolio" means:
(1) the equity positions
in the form of stock or other security the governor took, on behalf of the
state, in companies that received awards under the Texas emerging
technology fund; and
(2) any other investments
made by the governor, on behalf of the state, in connection with an award
made under the Texas emerging technology fund.
No
equivalent provision. (But see SECTION 5(e) below.)
No
equivalent provision.
No
equivalent provision. (But see Subsecs. (a) above and (b) below.)
(b) The Texas Treasury
Safekeeping Trust Company shall manage and wind up the state's emerging
technology investment portfolio. The trust
company shall wind up the portfolio in a manner that, to the extent
feasible, provides for the maximum return on the state's investment.
(See Subsec. (d) below.)
In managing those
investments through procedures and subject to restrictions that the trust
company considers appropriate, the trust company may acquire, exchange,
sell, supervise, manage, or retain any kind of investment that a prudent
investor, exercising reasonable care, skill, and caution, would acquire or
retain in light of the purposes, terms, distribution requirements, and
other circumstances then prevailing pertinent to each investment.
The trust company may recover its reasonable and necessary costs
incurred in the management of the portfolio from the earnings on the
investments in the portfolio.
No
equivalent provision.
(c) Any realized proceeds
or other earnings from the sale of stock or other investments in the
state's emerging technology investment portfolio, less the amount permitted
to be retained for payment of its costs for managing the portfolio as
provided by Subsection (b), shall be remitted by the Texas Treasury
Safekeeping Trust Company to the comptroller for deposit in the general
revenue fund.
(d) The Texas Treasury
Safekeeping Trust Company has any power necessary to accomplish the
purposes of this section.
(e) On final liquidation
of the state's emerging technology investment portfolio, the Texas Treasury
Safekeeping Trust Company shall promptly notify the comptroller of that
occurrence. As soon as practicable after receiving that notice, the
comptroller shall verify that the final liquidation has been completed and,
if the comptroller so verifies, shall certify to the governor that the
final liquidation of the portfolio has been completed. The governor shall
post notice of the certification on the office of the governor's Internet
website.
(f) Any balance remaining
in the Texas emerging technology fund on final liquidation by the Texas
Treasury Safekeeping Trust Company shall be remitted to the comptroller for
deposit in the general revenue fund.
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Sec. 62.167.
CONFIDENTIALITY OF INFORMATION CONCERNING AWARDS FROM FORMER TEXAS EMERGING
TECHNOLOGY FUND.
(a) Except as provided by
Subsection (b), information collected under
former Chapter 490, Government Code, concerning the identity,
background, finance, marketing plans, trade secrets, or other commercially
or academically sensitive information of an individual or entity that was
considered for or received an award from the former
Texas emerging technology fund is confidential unless the individual or
entity consents to disclosure of the information.
(b) The following
information collected in connection with the former
Texas emerging technology fund is public information and may be disclosed
under Chapter 552, Government Code:
(1) the name and address
of an individual or entity that received an award from the former Texas emerging technology fund;
(2) the amount of funding
received by an award recipient;
(3) a brief description
of the project funded under former
Chapter 490, Government Code;
(4) if applicable, a
brief description of the equity position that the governor, on behalf of
the state, has taken in an entity that received an award from the former Texas emerging technology fund; and
(5) any other information
with the consent of:
(A) the governor;
(B) the lieutenant
governor;
(C) the speaker of the
house of representatives; and
(D) the individual or
entity that received an award from the former
Texas emerging technology fund, if the information relates to that
individual or entity.
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Sec. 490.105.
CONFIDENTIALITY OF CERTAIN INFORMATION.
(a) Except as provided by
Subsection (b), information concerning the identity, background, finance,
marketing plans, trade secrets, or other commercially or academically
sensitive information of an individual or entity that was considered for or
received an award from the Texas emerging technology fund is confidential
unless the individual or entity consents to disclosure of the information.
(b) The following
information collected in connection with the Texas emerging technology fund
is public information and may be disclosed under Chapter 552, Government
Code:
(1) the name and address
of an individual or entity that received an award from the fund;
(2) the amount of funding
received by an award recipient;
(3) a brief description
of the project funded by the award;
(4) if applicable, a
brief description of the equity position that the governor, on behalf of
the state, has taken in an entity that received an award from the fund; and
(5) any other information
with the consent of:
(A) the governor;
(B) the lieutenant
governor;
(C) the speaker of the
house of representatives; and
(D) the individual or
entity that received an award from the fund, if the information relates to
that individual or entity.
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Sec. 62.168. REPORTING
REQUIREMENTS. (a) Before the beginning of each regular session of the
legislature the governor shall submit to the lieutenant governor, the
speaker of the house of representatives, and the standing committees of
each house of the legislature with primary jurisdiction over economic
development and higher education matters and post on the office of the
governor's Internet website a report on grants made from the governor's
university research initiative fund that states:
(1) the total amount of
matching funds granted by the office;
(2) the total amount of
matching funds granted to each institution;
(3) a brief description
of each distinguished researcher recruited by each institution, including
any amount of external research funding that followed the distinguished
researcher to the recruiting institution;
(4) a brief description
of the expenditures made from the matching grant funds for each
distinguished researcher; and
(5) when available, a
brief description of each distinguished researcher's contribution to the
state's economic competitiveness, including but not limited to:
(A) any patents issued to
the distinguished researcher after accepting employment by the recruiting
institution; and
(B) any external research
funding, public or private, earned by the distinguished researcher after
accepting employment by the recruiting institution.
(a-1) The report may not
include information that is made confidential by law.
(b) The governor may
require a recipient of a grant under the governor's university research
initiative to submit, on a form the governor provides, information required
to complete the report.
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No
equivalent provision.
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No
equivalent provision.
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SECTION 3. Section 490.101,
Government Code, is amended by adding Subsection (b-1) to read as follows:
(b-1) The fund may be
used only for the purposes described by Section 490.104.
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SECTION 2. (a) Chapter 490, Government Code, is repealed.
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SECTION 4. The following
laws are repealed:
(1)
Sections 490.101(c), (d), (e), (f), (f-1), (g), (h), and (i), Government
Code;
(2)
Section 490.102, Government Code; and
(3)
Subchapters A, B, D, E, F, and G, Chapter 490, Government Code.
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(b) The repeal by this Act
of Chapter 490, Government Code, does not affect the validity of an
agreement between the governor and the recipient of an award awarded under
Chapter 490, or a person to be awarded money under that chapter, that is
executed before September 1, 2015. Those agreements shall be performed as
provided by Section 62.166, Education Code, as added by this Act.
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No
equivalent provision. (But see SECTION 5(d) below.)
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No
equivalent provision. (But see SECTION 2(d) below.)
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SECTION 5. (a) The Texas
emerging technology fund is continued solely for the purposes of winding up
the contracts governing awards from that fund and the state's portfolio of
equity positions and other investments in connection with awards from that
fund in accordance with Section 490.104, Government Code, as added by this
Act. The Texas emerging technology fund is abolished and Sections
490.101(a), (b), and (b-1), Government Code, are repealed when the
comptroller certifies to the governor as provided by Section 490.104,
Government Code, as added by this Act, that the final liquidation of the
state's portfolio of equity positions and other investments by the Texas
Treasury Safekeeping Trust Company has been completed.
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No
equivalent provision.
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(a-1) On or after the
effective date of this Act, any unencumbered balance of the Texas emerging
technology fund may be appropriated only to one or more 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;
(3) the Texas Enterprise
Fund established under Section 481.078, Government Code; and
(4) the comptroller for the
purposes of managing the state's portfolio of equity positions and other
investments in connection with awards from the Texas emerging technology
fund in accordance with Section 490.104, Government Code, as added by this
Act.
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No
equivalent provision.
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(b) The authority of the
Texas research university fund to receive the appropriation described by
Subsection (a-1) 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.
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No
equivalent provision.
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(c) On or after the
effective date of this Act, the following payments or other amounts shall
be deposited to the credit of the Texas emerging technology fund to be used
by the Texas Treasury Safekeeping Trust Company solely for the purposes of
winding up the state's portfolio of equity positions and other investments
as provided by Sections 490.101(b-1) and 490.104, Government Code, as added
by this Act:
(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 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(g), 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(g), 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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No
equivalent provision. (But see SECTION 2(b) above.)
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(d) 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 the recipient of an award
awarded under Chapter 490, or a person to be awarded money under that
chapter, that is executed before September 1, 2015.
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No
equivalent provision. (But see Sec. 62.166(c), Education Code,
above.)
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(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 before that date
shall be distributed from the Texas emerging technology fund in accordance
with the terms of the agreement, unless the award recipient and the
governor agree otherwise.
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(c) 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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(f) Same as engrossed
version.
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(d) The Texas emerging
technology fund is abolished. On the effective date of this Act, the
comptroller of public accounts shall transfer any unexpended balance of
that fund as follows:
(1) 50 percent of the
balance to the credit of the Texas Enterprise Fund under Section 481.078,
Government Code; and
(2) 50 percent of the
balance to the credit of the governor's university research initiative fund
established under Subchapter H, Chapter 62, Education Code, as added by
this Act.
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No
equivalent provision. (But see SECTION 5(a) above.)
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(e) 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 Chapter 490, Government Code, before
September 1, 2015; and
(2) all powers, duties,
functions, and activities related to other investments, excluding grants, made by the governor, on
behalf of the state, in connection with an award made under Chapter 490,
Government Code, before September 1, 2015.
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(g) 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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(f) Notwithstanding the
repeal by this Act of Chapter 490, Government Code, that chapter is continued in effect for the limited purpose
of winding down contracts governing awards from the Texas emerging
technology fund and the state's portfolio of equity positions and other
investments in connection with awards from that fund in accordance with Section 62.166, Education Code, as added by this
Act.
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(h) Notwithstanding the
repeal by this Act of provisions of
Chapter 490, Government Code, those
provisions of Chapter 490 are continued in effect for the limited
purpose of winding up contracts governing awards from the Texas emerging
technology fund and the state's portfolio of equity positions and other
investments in connection with awards from that fund in accordance with Section 490.104, Government Code, as added by
this Act.
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SECTION 3. This Act takes
effect September 1, 2015.
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SECTION 6. Same as engrossed
version.
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