By: Strama H.B. No. 3584
A BILL TO BE ENTITLED
AN ACT
relating to the Texas emerging technology fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 490.001(4), Government Code, is amended
to read as follows:
(4) "Award" means:
(A) [for purposes of Subchapter D, an investment
in the form of equity or a convertible note;
[(B)] for purposes of Subchapter E, an investment
in the form of a debt instrument;
(B) [(C)] for purposes of Subchapter F, a grant;
or
(C) [(D)] other forms of contribution or
investment as recommended by the committee and approved by the
governor, lieutenant governor, and speaker of the house of
representatives.
SECTION 2. Section 490.005, Government Code, is amended by
amending Subsections (a) and (b) and adding Subsection (a-1) to
read as follows:
(a) Not later than January 1 of each year, the governor
shall submit to the legislature and post on the office of the
governor's Internet website a report that includes the following
information regarding the fund for the preceding three state fiscal
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); and
(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].
(a-1) An annual report that is required to be submitted on
or before January 1, 2014, under Subsection (a) must include the
number and amount of awards made under former Subchapter D and a
brief description of the equity position that the governor, on
behalf of the state, has taken before September 1, 2011, in
companies that received awards under former Subchapter D and the
names of those companies. This subsection expires September 1,
2014.
(b) The annual report must also contain a brief description
regarding:
(1) the intended outcomes of projects funded under
former Subchapter D before September 1, 2011, during the preceding
two state fiscal years, if the report is required to be submitted on
or before January 1, 2013; and
(2) the actual outcomes of all projects funded under
former Subchapter D before September 1, 2011, during 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. Section 490.101(h), Government Code, is amended
to read as follows:
(h) The governor may make awards in the form of loans and[,]
charge and receive reasonable interest for the loans[, take an
equity position in the form of stock or other security in
consideration of an award, and sell or otherwise trade or exchange
the security for the benefit of the fund]. Interest or proceeds
received as a result of a transaction authorized by this subsection
shall be deposited to the corpus of the fund and may be used in the
same manner as the corpus of the fund.
SECTION 4. Section 490.102(a), Government Code, is amended
to read as follows:
(a) Money appropriated to the fund by the legislature, less
amounts necessary to administer the fund under Section 490.055,
shall be allocated as follows:
(1) 50 [percent of the money for incentives for
collaboration between certain entities as provided by Subchapter D;
[(2) 16.67] percent of the money for research award
matching as provided by Subchapter E; and
(2) 50 [(3) 33.33] percent of the money for
acquisition of research superiority as provided by Subchapter F.
SECTION 5. Section 490.303, Government Code, is amended to
read as follows:
Sec. 490.303. ELIGIBILITY OF CLEAN COAL PROJECT FOR MONEY.
Notwithstanding any other provision of this subchapter, a clean
coal project constitutes an opportunity for emerging technology
suitable for consideration for a grant under Subchapter C,
[incentives as provided by Subchapter D,] grant matching as
provided by Subchapter E, and acquisition of research superiority
under Subchapter F.
SECTION 6. Subchapter D, Chapter 490, Government Code, is
repealed.
SECTION 7. Section 325, Government Code, is amended by
adding Section 325.025 to read as follows:
Sec. 325.025 UNIVERSITY INNOVATION COMMERCIALIZATION. (a)
In the two year period preceding the convening of the 83rd
Legislature, the commission shall study and make recommendations
for an alternative statewide program to accomplish the intended
purpose of commercializing university innovation, as described by
Section 490.002(1) and 490.002(3). In doing so the commission
shall consider alternative successful models for the
commercialization of university innovation, such as:
(1) The Austin Technology Incubator at The University
of Texas at Austin; and
(2) The Research Valley Partnership at Texas A&M
University in College Station.
(b) Before January 1, 2013, the commission shall prepare a
written report based on its findings in (a), and present that report
to the Legislature.
(c) Before September 1, 2012, the governor shall report to
the commission:
(1) the efficiency and effectiveness with which the
Emerging Technology Fund is administered;
(2) the extent to which the Emerging Technology Fund
has been successful in accomplishing the goal of commercializing
university innovation;
(3) an identification of all programs and activities
relating to the Emerging Technology Fund, and the extent to which
those activities are needed to accomplish the goal of
commercializing university innovation;
(4) whether alternative methods of performing any
program or activity in (3) could better accomplish the goal of
commercializing university innovation;
(5) the effect of federal intervention or loss of
federal funds if the Emerging Technology Fund is abolished; and
(6) any other information that the governor considers
appropriate or that is requested by the commission.
(d) The commission may conduct public hearings to
accomplish the requirements of this Section.
SECTION 8. This Act takes effect September 1, 2011.