BILL ANALYSIS

 

 

Senate Research Center

H.B. 4850

 

By: Button et al. (King)

 

Economic Development

 

5/9/2025

 

Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

This legislation makes changes to and repeals some of the functions of the Office of Economic Development and Tourism within the Office of the Governor (governor's office). The bill changes the threshold for what qualifies as a "Made in Texas" product, repeals the Governor's Broadband Development Council, adds an additional member to the Aerospace and Aviation Advisory Committee, and eliminates an outdated requirement that the governor's office provide a toll-free phone number.

 

H.B. 4850 amends current law relating to programs to promote economic development in the Office of the Governor and to the repeal of the Texas Entrepreneurship Network.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 481.0066(e), Government Code, to require the governor to appoint an aerospace and aviation advisory committee consisting of certain members, including one qualified member representing a federal entity or the United States armed forces, and to make nonsubstantive changes.

 

SECTION 2. Amends Section 481.167(a), Government Code, to require the Texas Economic Development and Tourism Office (office) to establish the Texas Business and Community Economic Development Clearinghouse to provide information and assistance to businesses and communities in the state, rather than to provide information and assistance to businesses and communities in the state through the use of a statewide toll-free telephone service.

 

SECTION 3. Amends Section 481.652(b), Government Code, as follows:

 

(b) Provides that the purposes of the Texas Semiconductor Innovation Consortium (consortium) are certain goals, including to leverage the expertise and capacity of institutions of higher education, industry, and nonprofit stakeholders to advise and provide input to the office regarding a comprehensive strategic plan to ensure ongoing semiconductor innovation, rather than to develop a comprehensive strategic plan to ensure ongoing semiconductor innovation; to provide recommendations to the executive committee on research and funding opportunities related to semiconductor research, design, commercialization, and manufacturing; and to identify and advise the executive committee on, rather than identify and expand, opportunities for workforce training and development related to the research, design, and manufacturing of semiconductors. Deletes existing text providing that the purposes of the consortium are to attract public and private investment in this state related to research, development, commercialization, and manufacturing of semiconductors.

 

SECTION 4. Amends Section 481.654, Government Code, by amending Subsection (b) and adding Subsection (c), as follows:

 

(b) Requires the office to hire or otherwise provide the staff and provide the facilities necessary to assist the consortium in performing the consortium's duties under Subchapter GG (Texas Semiconductor Innovation Consortium).

 

(c) Requires the office to hire an executive director. Requires the executive director to direct consortium staff and assist the consortium in performing the consortium's duties under this subchapter.

 

SECTION 5. Amends Section 481.655, Government Code, by adding Subsections (a-1) and (a-2), as follows:

 

(a-1) Provides that a member of the executive committee of the consortium (executive committee) appointed under Subsections (a)(1) (relating to providing that the consortium is governed by an executive committee composed of certain members including three members appointed by the governor) through (3) (relating to providing that the consortium is governed by an executive committee composed of certain members including two members appointed by the speaker of the house of representatives) serves a six-year term at the pleasure of the applicable appointing authority. Requires that the terms of executive committee members appointed under Subsections (a)(1) through (3) be staggered so that, to the extent practicable, the terms of one of those members expires on January 31 of each odd-numbered year.

 

(a-2) Provides that an executive committee member who is a designee of an executive committee member described by Subsection (a)(4) (relating to providing that the consortium is governed by an executive committee composed of certain members including the chancellor of The Texas A&M University System or the chancellor's designee) or (5) (relating to providing that the consortium is governed by an executive committee composed of certain members including the chancellor of The University of Texas System or the chancellor's designee) serves a two-year term.

 

SECTION 6. Amends Section 481.656(a), Government Code, as follows:

 

(a) Requires the executive committee to perform certain tasks, including advise and provide input to the office regarding the comprehensive statewide strategic plan to further the purposes of certain entities, including the executive committee under Section 481.656 (Duties of Executive Committee). Deletes existing text requiring the executive committee to develop and execute a comprehensive strategic plan to further the objectives of certain entities, appoint an executive director and determine the title, functions, duties, powers, and salary for the executive director, and prepare and submit the report required by Section 481.657 (Biennial Report). Makes nonsubstantive changes.

 

SECTION 7. Amends Subchapter GG, Chapter 481, Government Code, by adding Section 481.6565, as follows:

 

Sec. 481.6565. STRATEGIC PLAN. Requires the office to develop a strategic plan for the promotion of the semiconductor economy in this state.

 

SECTION 8. Amends Section 481.657, Government Code, to require the office, rather than the executive committee, not later than December 1 of each even-numbered year, to prepare and submit to the governor and the Legislative Budget Board a written report that outlines certain information.

 

SECTION 9. Amends Section 490D.051(c), Government Code, to require that the criteria established under Subsection (b)(1) (relating to requiring the office, in establishing the "Made in Texas" labeling program, by rule to establish certain criteria) include a requirement that not less than 51 percent, rather than all or virtually all, of all significant parts and processing of a product originated in this state.

 

SECTION 10. Repealer: Section 481.656(b) (relating to authorizing the executive director to enter into agreements with the office of the governor for the staff support services to facilitate the work of the consortium), Government Code.

 

Repealer: Chapter 490H (Governor's Broadband Development Council), Government Code.

 

SECTION 11. Effective date: September 1, 2025.