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A BILL TO BE ENTITLED
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AN ACT
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relating to use of money from the Texas Enterprise Fund for certain |
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projects involving the commercialization of property derived from |
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research at or through institutions of higher education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 481.078(c) and (f), Government Code, |
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are amended to read as follows: |
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(c) Except as provided by Subsections (d) and (d-1), the |
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fund may be used only for: |
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(1) economic development, infrastructure development, |
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community development, job training programs, and business |
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incentives; and |
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(2) projects for commercialization of property |
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derived from research developed at or through public or private |
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institutions of higher education as provided by Section 481.081. |
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(f) Before awarding a grant from the fund [under this
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section], the governor shall enter into a written agreement with |
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the entity to be awarded the grant money. If the entity is awarded a |
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grant for a purpose described by Subsection (c)(1), the agreement |
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must specify [specifying] that: |
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(1) if the governor finds that the grant recipient has |
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not met each of the performance targets specified in the agreement |
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as of a date certain provided in the agreement: |
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(A) the recipient shall repay the grant and any |
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related interest to the state at the agreed rate and on the agreed |
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terms; |
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(B) the governor will not distribute to the |
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recipient any grant money that remains to be awarded under the |
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agreement; and |
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(C) the governor may assess specified penalties |
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for noncompliance against the recipient; |
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(2) if all or any portion of the amount of the grant is |
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used to build a capital improvement, the state may: |
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(A) retain a lien or other interest in the |
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capital improvement in proportion to the percentage of the grant |
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amount used to pay for the capital improvement; and |
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(B) require the recipient of the grant, if the |
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capital improvement is sold, to: |
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(i) repay to the state the grant money used |
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to pay for the capital improvement, with interest at the rate and |
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according to the other terms provided by the agreement; and |
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(ii) share with the state a proportionate |
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amount of any profit realized from the sale; and |
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(3) if, as of a date certain provided in the agreement, |
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the grant recipient has not used grant money awarded under this |
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section for the purposes for which the grant was intended, the |
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recipient shall repay that amount and any related interest to the |
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state at the agreed rate and on the agreed terms. |
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SECTION 2. Section 481.079(a-1), Government Code, is |
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amended to read as follows: |
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(a-1) For grants awarded for a purpose specified by Section |
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481.078(d-1) or 481.081, the report must include only the amount |
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and purpose of each grant. |
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SECTION 3. Subchapter E, Chapter 481, Government Code, is |
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amended by adding Section 481.081 to read as follows: |
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Sec. 481.081. TEXAS ENTERPRISE FUND: GRANT FOR UNIVERSITY |
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RESEARCH DEVELOPMENT WITH PRIVATE SPONSORSHIP. (a) In this |
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section: |
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(1) "Fund" means the Texas Enterprise Fund under |
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Section 481.078. |
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(2) "Public or private institution of higher |
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education" means an institution of higher education or a private or |
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independent institution of higher education as those terms are |
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defined by Section 61.003, Education Code. |
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(b) The governor may provide grants to public or private |
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institutions of higher education from the fund to supplement other |
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funding for projects involving the commercialization of |
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intellectual property or other property derived from research |
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developed at or through a public or private institution of higher |
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education. To be eligible for a grant under this section, a project |
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must be supported by funding provided by one or more private |
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entities participating in the project, in addition to any funding |
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provided by the public or private institution of higher education. |
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(c) The amount of a grant awarded under this section may not |
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exceed 50 percent of the total amount of investment in the project |
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provided by the applicable public or private institution of higher |
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education and the participating private entity or entities. |
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SECTION 4. This Act takes effect September 1, 2017. |