88R11092 SRA-F
  By: Bonnen, Capriglione, Jetton H.B. No. 5174
  Substitute the following for H.B. No. 5174:
  By:  Hernandez C.S.H.B. No. 5174
  relating to the establishment and administration of the Texas
  Semiconductor Innovation Consortium.
         SECTION 1.  Chapter 481, Government Code, is amended by
  adding Subchapter GG to read as follows:
         Sec. 481.651.  DEFINITIONS. In this subchapter:
               (1)  "Consortium" means the Texas Semiconductor
  Innovation Consortium.
               (2)  "Executive committee" means the executive
  committee of the consortium.
               (3)  "Fund" means the Texas Semiconductor Innovation
               (4)  "Institution of higher education" has the meaning
  assigned by Section 61.003, Education Code.
         Sec. 481.652.  ESTABLISHMENT; PURPOSES.  (a)  The Texas
  Semiconductor Innovation Consortium is established as an advisory
  panel to the governor and the legislature.
         (b)  The purposes of the consortium are to:
               (1)  leverage the expertise and capacity of
  institutions of higher education, industry, and nonprofit
  stakeholders to develop a comprehensive strategic plan to ensure
  ongoing semiconductor innovation;
               (2)  sustain the leadership of this state in advanced
  semiconductor research, design, and manufacturing;
               (3)  attract public and private investment in this
  state related to research, development, commercialization, and
  manufacturing of semiconductors;
               (4)  identify and expand opportunities for workforce
  training and development related to the research, design, and
  manufacturing of semiconductors; and
               (5)  establish a forum for public and private
  stakeholders across the semiconductor manufacturing industry in
  this state to focus on education, research and development, and
  commercial production.
         Sec. 481.653.  COMPOSITION OF CONSORTIUM. (a) The
  consortium is composed of a designee of each of the following
  institutions of higher education appointed by the office of the
  president of the institution:
               (1)  The University of Texas at Arlington;
               (2)  The University of Texas at Austin;
               (3)  The University of Texas at Dallas;
               (4)  The University of Texas at El Paso;
               (5)  The University of Texas Rio Grande Valley;
               (6)  The University of Texas at San Antonio;
               (7)  Texas A&M University;
               (8)  Prairie View A&M University;
               (9)  the University of Houston;
               (10)  the University of North Texas;
               (11)  Texas Tech University;
               (12)  Texas State University;
               (13)  Lamar University;
               (14)  Lamar State College - Orange;
               (15)  Lamar State College - Port Arthur:
               (16)  Lamar Institute of Technology;
               (17)  Austin Community College; and
               (18)  Dallas Community College.
         (b)  In addition to the appointments under Subsection (a),
  the executive committee established under Section 481.655 may
  appoint any other entity or individual the executive committee
  considers necessary.
         (c)  In making appointments under Subsections (a) and (b),
  priority shall be given to individuals with experience in
  semiconductor design and manufacturing.
         Sec. 481.654.  ADMINISTRATIVE ATTACHMENT. (a)  The
  consortium is administratively attached to the office of the
         (b)  The office shall provide the staff and facilities
  necessary to assist the consortium in performing the consortium's
  duties under this subchapter.
         Sec. 481.655.  EXECUTIVE COMMITTEE COMPOSITION. (a) The
  consortium is governed by an executive committee composed of the
  following members:
               (1)  three members appointed by the governor;
               (2)  two members appointed by the lieutenant governor;
               (3)  two members appointed by the speaker of the house
  of representatives;
               (4)  the chancellor of The Texas A&M University System
  or the chancellor's designee; and
               (5)  the chancellor of The University of Texas System
  or the chancellor's designee.
         (b)  In making appointments under Subsection (a), priority
  shall be given to individuals with experience in manufacturing,
  design, industrial development, academic research, and scientific
  research in the field of semiconductors.
         (c)  In making appointments under Subsection (a), the
  governor, the lieutenant governor, and the speaker of the house of
  representatives shall coordinate to ensure that at least two
  representatives from the commercial semiconductor design and
  manufacturing sectors with an established presence in the state are
  appointed to the executive committee.
         Sec. 481.656.  DUTIES OF EXECUTIVE COMMITTEE. (a)  The
  executive committee shall:
               (1)  develop and execute a comprehensive statewide
  strategic plan to further the objectives of the consortium as
  established under Section 481.652;
               (2)  solicit recommendations from consortium members
  on funding and research opportunities related to semiconductor
  research, design, commercialization, and manufacturing;
               (3)  appoint an executive director of the consortium
  and determine the title, functions, duties, powers, and salary for
  the executive director; and
               (4)  prepare and submit the report required by Section
         (b)  The executive director may enter into agreements with
  the office of the governor for staff support services to facilitate
  the work of the consortium.
         Sec. 481.657.  BIENNIAL REPORT. Not later than December 1 of
  each even-numbered year, the executive committee shall prepare and
  submit to the governor and the Legislative Budget Board a written
  report that outlines:
               (1)  activities undertaken to meet the purposes of the
  consortium under Section 481.652;
               (2)  a summary of the funding and research
  opportunities identified under Section 481.656(a)(2);
               (3)  any legislative recommendations to further the
  purposes of the consortium;
               (4)  any prospective grants or funding the consortium
  members expect to apply for or receive; and
               (5)  any research accomplishments associated with the
         Sec. 481.658.  TEXAS SEMICONDUCTOR INNOVATION FUND. (a)  
  The Texas Semiconductor Innovation Fund is created as a dedicated
  account within the general revenue fund.  The fund consists of:
               (1)  gifts, grants, or donations to the fund; and
               (2)  money from any other source designated by the
         (b)  Money in the fund may be used to:
               (1)  provide matching funding to state entities,
  including institutions of higher education, for semiconductor
  manufacturing and design projects;
               (2)  award grants to business entities with an
  established presence in this state to encourage economic
  development related to semiconductor manufacturing and design; and
               (3)  subject to Subsection (c), pay for staff support
  services described by Section 481.656(b).
         (c)  The consortium shall request from the Legislative
  Budget Board approval to use money in the fund for the purpose
  described by Subsection (b)(3).  A request under this subsection
  shall be considered approved on the 30th day after receipt by the
  Legislative Budget Board unless expressly disapproved.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.