H.B. No. 2457
AN ACT
relating to the Texas Enterprise Fund and the Texas emerging
technology fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.078, Government Code, is amended by
amending Subsections (e) and (j) and adding Subsections (f-1),
(f-2), and (h-1) to read as follows:
(e) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awarding, by grant,
money appropriated from the fund. The governor may award money
appropriated from the fund only with the [express written] prior
approval of the lieutenant governor and speaker of the house of
representatives. For purposes of this subsection, an award of
money appropriated from the fund is considered disapproved by the
lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award the grant before
the 91st day after the date of receipt of the proposal from the
governor. The lieutenant governor or the speaker of the house of
representatives may extend the review deadline applicable to that
officer for an additional 14 days by submitting a written notice to
that effect to the governor before the expiration of the initial
review period.
(f-1) A grant agreement must contain a provision:
(1) requiring the creation of a minimum number of jobs
in this state; and
(2) specifying the date by which the recipient intends
to create those jobs.
(f-2) A grant agreement must contain a provision providing
that if the recipient does not meet job creation performance
targets as of the dates specified in the agreement, the recipient
shall repay the grant in accordance with Subsection (j).
(h-1) At least 14 days before the date the governor intends
to amend a grant agreement, the governor shall notify and provide a
copy of the proposed amendment to the speaker of the house of
representatives and the lieutenant governor.
(j) Repayment of a grant under Subsection (f)(1)(A) shall
[may] be prorated to reflect a partial attainment of job creation
performance targets, and may be prorated for a partial attainment
of other performance targets.
SECTION 2. Sections 490.005(a) and (b), Government Code,
are amended to read as follows:
(a) Not later than January 31 [1] of each year, the governor
shall submit to the lieutenant governor, the speaker of the house of
representatives, and the standing committee of each house of the
legislature with primary jurisdiction over economic development
matters and post on the office of the governor's Internet website a
report that includes the following information regarding awards
made under the fund during each [for the] preceding [three] state
fiscal year [years]:
(1) the total number and amount of awards made;
(2) the number and amount of awards made under
Subchapters D, E, and F;
(3) the aggregate total of private sector investment,
federal government funding, and contributions from other sources
obtained in connection with awards made under each of the
subchapters listed in Subdivision (2);
(4) the name of each award recipient and the amount of
the award made to the recipient; and
(5) a brief description of the equity position that
the governor, on behalf of the state, may take in companies
receiving awards and the names of the companies in which the state
has taken an equity position.
(b) The annual report must also contain:
(1) the total number of jobs actually created by each
project receiving funding under this chapter;
(2) an analysis of the number of jobs actually created
by each project receiving funding under this chapter; and
(3) a brief description regarding:
(A) the methodology used to determine the
information provided under Subdivisions (1) and (2), which may be
developed in consultation with the comptroller's office;
(B) [(1)] the intended outcomes of projects
funded under Subchapter D during each [the] preceding [two] state
fiscal year [years]; and
(C) [(2)] the actual outcomes of all projects
funded under Subchapter D during each preceding state fiscal year
[the fund's existence], including any financial impact on the state
resulting from a liquidity event involving a company whose project
was funded under that subchapter.
SECTION 3. Subchapter A, Chapter 490, Government Code, is
amended by adding Section 490.006 to read as follows:
Sec. 490.006. VALUATION OF INVESTMENTS; INCLUSION IN ANNUAL
REPORT. To the maximum extent practicable, the office of the
governor shall annually perform a valuation of the equity positions
taken by the governor, on behalf of the state, in companies
receiving awards under the fund and of other investments made by the
governor, on behalf of the state, in connection with an award under
the fund. The valuation must:
(1) be based on a methodology that:
(A) may be developed in consultation with the
comptroller's office; and
(B) is consistent with generally accepted
accounting principles; and
(2) be included with the annual report required under
Section 490.005.
SECTION 4. The heading to Section 490.052, Government Code,
is amended to read as follows:
Sec. 490.052. APPOINTMENT TO COMMITTEE [BY GOVERNOR];
NOMINATIONS.
SECTION 5. Section 490.052, Government Code, is amended by
amending Subsection (a) and adding Subsections (a-1) and (a-2) to
read as follows:
(a) The governor shall appoint to the committee 13
individuals nominated as provided by Subsection (b).
(a-1) The lieutenant governor shall appoint two individuals
to the committee.
(a-2) The speaker of the house of representatives shall
appoint two individuals to the committee.
SECTION 6. Subchapter B, Chapter 490, Government Code, is
amended by adding Section 490.0521 to read as follows:
Sec. 490.0521. FINANCIAL STATEMENT REQUIRED. (a) Each
member of the committee shall file with the office of the governor a
verified financial statement complying with Sections 572.022
through 572.0252 as is required of a state officer by Section
572.0252.
(b) All information obtained and maintained pursuant to
Subsection (a), including information derived from the financial
statements, is confidential and is not subject to disclosure under
Chapter 552, Government Code.
(c) The governor, on request or in the normal course of
official business, shall provide information that is confidential
under Subsection (b) to the Texas State Auditor's Office.
(d) This section does not affect release of information for
legislative purposes pursuant to Section 552.008, Government Code.
SECTION 7. Section 490.054, Government Code, is amended to
read as follows:
Sec. 490.054. TERMS. (a) Members of the committee
appointed by the governor serve staggered two-year terms, subject
to the pleasure of the governor.
(b) Members of the committee appointed by the lieutenant
governor or the speaker of the house of representatives serve
two-year terms.
SECTION 8. Section 490.056, Government Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) Each entity recommended by the committee for an award of
money from the fund as provided by this chapter shall obtain and
provide the following information to the office of the governor:
(1) a federal criminal history background check for
each principal of the entity;
(2) a state criminal history background check for each
principal of the entity;
(3) a credit check for each principal of the entity;
(4) a copy of a government-issued form of photo
identification for each principal of the entity; and
(5) information regarding whether the entity or a
principal of the entity has ever been subject to a sanction imposed
by the Securities and Exchange Commission for a violation of
applicable federal law.
(d) For purposes of Subsection (c), "principal" means:
(1) an officer of an entity; or
(2) a person who has at least a 10 percent ownership
interest in an entity.
(e) With each proposal to award funding submitted by the
governor to the lieutenant governor and speaker of the house of
representatives for purposes of obtaining prior approval, the
governor shall provide each officer with a copy of the information
provided by the appropriate entity under Subsection (c).
SECTION 9. Section 490.057, Government Code, is amended to
read as follows:
Sec. 490.057. CONFIDENTIALITY. (a) Except as provided by
Subsection (b), information [Information] collected by the
governor's office, the committee, or the committee's advisory
panels concerning the identity, background, finance, marketing
plans, trade secrets, or other commercially or academically
sensitive information of an individual or entity being considered
for, receiving, or having received an award from the fund is
confidential unless the individual or entity consents to disclosure
of the information.
(b) The following information collected by the governor's
office, the committee, or the committee's advisory panels under
this chapter is public information and may be disclosed under
Chapter 552:
(1) the name and address of an individual or entity
receiving or having received an award from the fund;
(2) the amount of funding received by an award
recipient;
(3) a brief description of the project that is funded
under this chapter;
(4) if applicable, a brief description of the equity
position that the governor, on behalf of the state, has taken in an
entity that has received an award from the fund; and
(5) any other information designated by the committee
with the consent of:
(A) the individual or entity receiving or having
received an award from the fund, as applicable;
(B) the governor;
(C) the lieutenant governor; and
(D) the speaker of the house of representatives.
SECTION 10. Section 490.101, Government Code, is amended by
amending Subsection (f) and adding Subsection (f-1) to read as
follows:
(f) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awards from the
fund. The governor may award money appropriated from the fund only
with the [express written] prior approval of the lieutenant
governor and speaker of the house of representatives.
(f-1) For purposes of Subsection (f), an award of money
appropriated from the fund is considered disapproved by the
lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award funding before
the 91st day after the date of receipt of the proposal from the
governor. The lieutenant governor or the speaker of the house of
representatives may extend the review deadline applicable to that
officer for an additional 14 days by submitting a written notice to
that effect to the governor before the expiration of the initial
review period.
SECTION 11. Subchapter D, Chapter 490, Government Code, is
amended by adding Section 490.1521 to read as follows:
Sec. 490.1521. MINUTES OF CERTAIN MEETINGS. (a) Each
regional center of innovation and commercialization established
under Section 490.152, including the Texas Life Science Center for
Innovation and Commercialization, shall keep minutes of each
meeting at which applications for funding under this subchapter are
evaluated. The minutes must:
(1) include the name of each applicant recommended by
the regional center of innovation and commercialization to the
committee for funding; and
(2) indicate the vote of each member of the governing
body of the regional center of innovation and commercialization,
including any recusal by a member and the member's reason for
recusal, with regard to each application reviewed.
(b) Each regional center of innovation and
commercialization shall retain a copy of the minutes of each
meeting to which this section applies for at least three years.
SECTION 12. Section 203.021, Labor Code, is amended by
adding Subsection (e) to read as follows:
(e) Money in the compensation fund may not be transferred to
the:
(1) Texas Enterprise Fund created under Section
481.078, Government Code; or
(2) Texas emerging technology fund established under
Section 490.101, Government Code.
SECTION 13. Section 204.123, Labor Code, is amended to read
as follows:
Sec. 204.123. TRANSFER TO [TEXAS ENTERPRISE FUND,] SKILLS
DEVELOPMENT FUND, TRAINING STABILIZATION FUND, AND COMPENSATION
FUND. (a) If, on September 1 of a year, the commission determines
that the amount in the compensation fund will exceed 100 percent of
its floor as computed under Section 204.061 on the next October 1
computation date, the commission shall transfer from the holding
fund created under Section 204.122:
(1) [from the first $160 million deposited in the
holding fund in any state fiscal biennium:
[(A) during the state fiscal biennium ending
August 31, 2007:
[(i) 67 percent to the Texas Enterprise
Fund created under Section 481.078, Government Code, except that
the amount transferred under this paragraph may not exceed the
amount appropriated by the legislature to the Texas Enterprise Fund
in that biennium; and
[(ii) 33 percent to the skills development
fund created under Section 303.003, except that the amount
transferred under this paragraph may not exceed the amount
appropriated by the legislature to the skills development program
strategies and activities in that biennium; and
[(B)] during any state fiscal biennium beginning
on or after September 1, 2007, 100 [:
[(i) 75 percent to the Texas Enterprise
Fund created under Section 481.078, Government Code, except that
the amount transferred under this paragraph may not exceed the
amount appropriated by the legislature to the Texas Enterprise Fund
in that biennium; and
[(ii) 25] percent to the skills development
fund created under Section 303.003, except that the amount
transferred under this subdivision [paragraph] may not exceed the
amount appropriated by the legislature to the skills development
program strategies and activities in that biennium; and
(2) any remaining amount in the holding fund after the
distribution under Subdivision (1) to the training stabilization
fund created under Section 302.101.
(b) If, on September 1 of a year, the commission determines
that the amount in the compensation fund will be at or below 100
percent of its floor as computed under Section 204.061 on the next
October 1 computation date, the commission shall transfer to the
compensation fund as much of the amount in the holding fund as is
necessary to raise the amount in the compensation fund to 100
percent of its floor, up to and including the entire amount in the
holding fund. The commission shall transfer any remaining balance
in the holding fund to the [Texas Enterprise Fund, the] skills
development fund[,] and the training stabilization fund in the
manner [in the percentages] prescribed by Subsection (a).
SECTION 14. Sections 302.101(b) and (c), Labor Code, are
amended to read as follows:
(b) Money in the training stabilization fund may be used in
a year in which the amounts in the employment and training
investment holding fund are insufficient to meet the legislative
appropriation for that fiscal year for [either the Texas Enterprise
Fund or] the skills development program strategies and activities.
(c) Money in the training stabilization fund shall be
transferred to the [Texas Enterprise Fund and the] skills
development fund under Subsection (b) not later than September 30.
[The transfer under Subsection (b) shall consist of transferring 67
percent of the money in the training stabilization fund to the Texas
Enterprise Fund and 33 percent of the money in the training
stabilization fund to the skills development fund.] The amount
transferred from the training stabilization fund may not exceed the
amounts appropriated to the [Texas Enterprise Fund and] skills
development program strategies and activities in the fiscal year in
which the transfer is made.
SECTION 15. Sections 481.078(e) and 490.101(f), Government
Code, as amended by this Act, and Section 490.101(f-1), Government
Code, as added by this Act, apply only to a proposal for an award
from the Texas Enterprise Fund or Texas emerging technology fund
submitted by the governor to the lieutenant governor or speaker of
the house of representatives for prior approval on or after the
effective date of this Act. A proposal submitted by the governor
for prior approval before the effective date of this Act is governed
by the law in effect on the date the proposal was submitted for that
approval, and the former law is continued in effect for that
purpose.
SECTION 16. Section 481.078(j), Government Code, as amended
by this Act, and Sections 481.078(f-1) and (f-2), Government Code,
as added by this Act, apply only to a grant agreement that is
entered into on or after the effective date of this Act. A grant
agreement that is entered into before the effective date of this Act
is governed by the law in effect on the date the agreement was
entered into, and the former law is continued in effect for that
purpose.
SECTION 17. (a) The terms of the members of the Texas
Emerging Technology Advisory Committee serving immediately before
the effective date of this Act expire September 1, 2011.
(b) As soon as practicable after this Act takes effect, the
governor, lieutenant governor, and speaker of the house of
representatives shall appoint members to the Texas Emerging
Technology Advisory Committee established under Subchapter B,
Chapter 490, Government Code, in a manner that complies with that
subchapter, as amended by this Act.
(c) At the first meeting of members of the Texas Emerging
Technology Advisory Committee established under Subchapter B,
Chapter 490, Government Code, as amended by this Act, occurring on
or after September 1, 2011, the members appointed by the governor
shall draw lots to determine which six members will serve a term
expiring September 1, 2012, and which seven members will serve a
term expiring September 1, 2013.
SECTION 18. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2457 was passed by the House on April
21, 2011, by the following vote: Yeas 148, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 2457 on May 21, 2011, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 2457 on May 29, 2011, by the following vote: Yeas 145,
Nays 2, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2457 was passed by the Senate, with
amendments, on May 16, 2011, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
2457 on May 29, 2011, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor