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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding of certain activities related to the |
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commercialization of emerging technologies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 62, Education Code, is amended by adding |
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Subchapter H to read as follows: |
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SUBCHAPTER H. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE |
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Sec. 62.161. DEFINITIONS. In this subchapter: |
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(1) "Distinguished researcher" means a researcher |
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with a national reputation who is a Nobel laureate or is a member |
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of, or holds promise of election to, a national honorific society, |
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such as the National Academy of Sciences, the National Academy of |
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Engineering, or the Institute of Medicine. |
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(2) "Eligible institution" means a general academic |
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teaching institution or a health-related institution. |
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(3) "Fund" means the governor's university research |
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initiative fund. |
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(4) "General academic teaching institution" has the |
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meaning assigned by Section 61.003. |
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(5) "Private or independent institution of higher |
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education" has the meaning assigned by Section 61.003. |
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(6) "Health-related institution" means a "medical and |
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dental unit" as defined by Section 61.003 and any other public |
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health science center, public medical school, or public dental |
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school established by statute or in accordance with Chapter 61. |
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(7) "Office" means the Texas Economic Development and |
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Tourism Office within the office of the governor. |
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(8) "Governing Board" as the meaning assigned by |
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Section 61.003 |
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Sec. 62.162. ADMINISTRATION. (a) The initiative is |
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administered by the Texas Economic Development and Tourism Office |
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within the office of the governor. |
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(b) From money appropriated from the governor's university |
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research initiative fund, the office shall award matching grants to |
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assist eligible institutions in recruiting distinguished |
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researchers. |
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Sec. 62.163. MATCHING GRANTS. (a) An eligible institution |
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may apply to the office for a matching grant from the fund. For an |
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approved proposal, the office shall award to the institution an |
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amount equal to the amount committed by the institution for the |
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recruitment of a distinguished researcher, except as provided by |
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Subsection (b). |
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(b) A grant proposal must identify the source and amount of |
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the institution's matching funds and must demonstrate that the |
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proposal has the support of the president of the institution and of |
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the institution's governing board or that of board's chair, or |
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chancellor. The institution may commit to the match any funds of the |
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institution available for that purpose other than appropriated |
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general revenue. |
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(c) For awards in each fiscal year, the office may set a |
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deadline for applications for that year. After fully funding |
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awards from the amount available for that year, the office may |
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reopen applications for full funding or may select timely but |
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unfunded proposals for a reduced grant. |
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(d) A matching grant received by an eligible institution |
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under this subchapter may not be considered as a basis to reduce, |
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directly or indirectly, the amount of money otherwise appropriated |
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to the institution. |
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(e) A matching grant may not be used to recruit a |
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distinguished researcher from another eligible institution, |
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private or independent institution of higher education. |
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Sec. 62.164. AWARDS CRITERIA; PRIORITY. (a) In making |
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awards, the office shall give priority to proposals for the |
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recruitment of distinguished researchers in science, technology, |
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engineering, and mathematics. Within those priority subjects, the |
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office shall give priority to proposals that demonstrate that the |
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proposal: |
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(1) has a probability of enhancing Texas' national and |
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global economic competitiveness; |
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(2) has a probability of creating a national or |
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internationally recognized locus of research superiority or a |
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unique locus of research; |
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(3) who has significant funding from federal and/or |
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private sources that could be transferred to the eligible |
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institution; |
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(4) is interdisciplinary and collaborative; or |
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(5) has a strategic plan for intellectual property |
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development and commercialization of technology. |
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(b) A proposal may support the recruitment of researchers |
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distinguished in, or to be engaged in, basic, translational, or |
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applied research. A proposal may propose a recruitment for new |
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research capabilities of the institution or to expand existing |
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research capabilities. |
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(c) A proposal should identify a specific distinguished |
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researcher, in addition to the priorities considered under |
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Subsection (a), the office may consider: |
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(1) whether, but for the grant from the fund, the |
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recruit is likely to go elsewhere; |
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(2) the extent to which the recruit's research subject |
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matter offers opportunity for interdisciplinary and collaborative |
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research at the institution and with other eligible institutions; |
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and |
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(3) the commercialization track record of the recruit, |
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if any. |
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(d) Any information of a specific distinguished researcher |
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for recruitment that would tend to identify the recruit, is |
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confidential until the recruit has entered into an employment |
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relationship with the institution. |
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Sec. 62.165. ADVISORY BOARD. (a) The governor shall |
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appoint an advisory board to review proposals and recommend awards. |
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(b) The advisory board must be composed of at least nine |
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members. One-third of the advisory board must have a background in |
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finance and one-third must have an academic background in science, |
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technology, engineering, or mathematics. |
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(c) Chapter 2110, Government Code, does not apply to the |
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size, composition, or duration of the advisory board. |
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(d) An advisory board member who is or has been employed by, |
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or has or has had a contract for any purpose with, a general |
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academic teaching institution or health-related institution may |
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not be involved in the review or recommendation of proposals made by |
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that institution. |
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(e) An advisory board member is not required to be a |
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resident of Texas. |
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(f) Appointments to the advisory board shall be made without |
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regard to the race, color, disability, sex, religion, age, or |
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national origin of appointees. |
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(g) Members of the advisory board serve without |
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compensation but are entitled to reimbursement for actual and |
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necessary expenses in attending meetings of the advisory board or |
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performing other official duties authorized by the office. |
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(h) Each eligible institution that applies to the office for |
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a matching grant may address the board directly for 25 minutes, per |
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matching grant application to discuss the application with the |
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board. |
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Sec. 62.166. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE |
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FUND. (a) The governor's university research initiative fund is a |
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dedicated account in the general revenue fund. |
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(b) The fund consists of any amounts appropriated to or |
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transferred to the fund by the legislature, in addition to any gifts |
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for purposes of the fund. |
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(c) Sections 403.095 and 404.071, Government Code, do not |
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apply to the fund. |
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Sec. 62.167. WIND-UP OF TEXAS EMERGING TECHNOLOGY FUND. |
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(a) The governor's university research initiative is the successor |
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to the Texas emerging technology fund. Awards from that fund, and |
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contracts governing awards from that fund, shall be wound up in |
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accordance with this section. |
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(b) If a contract governing an award from the Texas |
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emerging technology fund provided for the distribution of |
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royalties, revenue, or other financial benefits realized from the |
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commercialization of intellectual or real property developed from |
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an award from the fund, those financial benefits shall continue to |
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be distributed in accordance with the terms of the contract unless |
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the recipient and the governor agree otherwise. Unless otherwise |
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required by law, royalties or revenue accruing to the state under |
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such a contract shall be credited to the governor's university |
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research initiative fund. |
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(b) If money from the Texas emerging technology fund is |
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encumbered by contract executed before September 1, 2015, but has |
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not been distributed before that date, the money shall be |
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distributed from the governor's university research initiative |
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fund in accordance with the terms of the contract, unless the |
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recipient and the governor agree otherwise. |
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(c) If award money from the Texas emerging technology fund |
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under a contract executed before September 1, 2015, has been fully |
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distributed, the entity that received the award is considered to |
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have fully satisfied the entity's obligations and performed all |
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specific actions under the terms of the contract governing the |
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award. The recipient entity shall file with the office a final |
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report showing the purposes for which the award money has been |
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expended and, if award money remains unexpended, the purposes for |
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the recipient will expend the remaining money. The recipient is not |
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required to return to the state any award money received under the |
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contract. |
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(d) The Texas Treasury Safekeeping Trust Company shall |
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manage the following in accordance with prior law relating to |
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awards from the Texas emerging technology fund: |
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(1) equity positions in the form of stock or other |
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security taken by the governor, on behalf of the state, in companies |
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receiving awards before September 1, 2015; and |
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(2) any other investments, excluding grants, made by |
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the governor on the state's behalf in connection with an award from |
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the emerging technology fund before September 1, 2015. |
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(e) The Texas Treasury Safekeeping Trust Company, as soon as |
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practicable after September 1, 2015, shall begin winding up the |
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state's portfolio of equity positions and other investments |
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described by Subsection (d) of this section by selling the stock and |
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other investments when it is economically advantageous to the state |
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to do so. The trust company has any power necessary to accomplish |
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the purpose of this section. In managing these investments through |
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procedures and subject to restrictions that the trust company |
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considers appropriate, the trust company may acquire, exchange, |
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sell, supervise, manage, or retain any kind of investment that a |
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prudent investor, exercising reasonable care, skill, and caution, |
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would acquire or retain in light of the purposes, terms, |
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distribution requirements, and other circumstances then prevailing |
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pertinent to each investment. Proceeds shall be deposited to the |
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credit of the governor's university research initiative fund, |
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taking into consideration the expenses of managing and liquidating |
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the equity positions and other investments. |
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SECTION 2. (a) Chapter 490, Government Code, is repealed. |
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(b) The repeal by this Act of Chapter 490, Government Code, |
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does not affect the validity of an agreement between the governor |
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and the recipient of an award awarded under Chapter 490, or a person |
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to be awarded money under that chapter, that is executed before |
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September 1, 2015. Those agreements shall be performed as provided |
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by Section 62.167, Education Code, as added by this Act. |
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(c) A regional center of innovation and commercialization |
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established under Section 490.152, Government Code, is abolished on |
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the effective date of this Act. Each center shall transfer to the |
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office of the governor a copy of any meeting minutes required to be |
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retained under Section 490.1521, Government Code, as that section |
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existed immediately before that section's repeal by this Act, and |
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the office shall retain the minutes for the period prescribed by |
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that section. |
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(d) The Texas emerging technology fund is abolished. The |
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comptroller of public accounts shall transfer any unexpended |
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balance of that fund to the governor's university research |
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initiative fund. |
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SECTION 3. This Act takes effect September 1, 2015. |