Texas 2011 - 82nd Regular

Texas Senate Bill SB1175 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Jackson S.B. No. 1175
2	2	(J. Davis of Harris)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the Texas Enterprise Fund and the Texas emerging
8	8	technology fund.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 481.078, Government Code, is amended by
11	11	amending Subsection (e) and adding Subsections (f-1) and (h-1) to
12	12	read as follows:
13	13	(e) The administration of the fund is considered to be a
14	14	trusteed program within the office of the governor. The governor
15	15	may negotiate on behalf of the state regarding awarding, by grant,
16	16	money appropriated from the fund. The governor may award money
17	17	appropriated from the fund only with the [express written] prior
18	18	approval of the lieutenant governor and speaker of the house of
19	19	representatives. For purposes of this subsection, an award of
20	20	money appropriated from the fund is considered disapproved by the
21	21	lieutenant governor or speaker of the house of representatives if
22	22	that officer does not approve the proposal to award the grant before
23	23	the 91st day after the date of receipt of the proposal from the
24	24	governor. The lieutenant governor or the speaker of the house of
25	25	representatives may extend the review deadline applicable to that
26	26	officer for an additional 14 days by submitting a written notice to
27	27	that effect to the governor before the expiration of the initial
28	28	review period.
29	29	(f-1) A grant agreement must contain a provision:
30	30	(1) requiring the creation of a minimum number of jobs
31	31	in this state; and
32	32	(2) specifying the date by which the recipient intends
33	33	to create those jobs.
34	34	(h-1) At least 14 days before the date the governor intends
35	35	to amend a grant agreement, the governor shall notify and provide a
36	36	copy of the proposed amendment to the speaker of the house of
37	37	representatives, the lieutenant governor, and the presiding
38	38	officers of the standing committees of both houses of the
39	39	legislature with primary jurisdiction over economic development.
40	40	SECTION 2. Subdivision (4), Section 490.001, Government
41	41	Code, is amended to read as follows:
42	42	(4) "Award" means:
43	43	(A) for purposes of Subchapter D, an investment
44	44	in the form of equity or a convertible note;
45	45	(B) for purposes of Subchapter E, an investment
46	46	in the form of a debt instrument;
47	47	(C) for purposes of Subchapter F or J, a grant; or
48	48	(D) other forms of contribution or investment as
49	49	recommended by the committee and approved by the governor,
50	50	lieutenant governor, and speaker of the house of representatives.
51	51	SECTION 3. Subsections (a) and (b), Section 490.005,
52	52	Government Code, are amended to read as follows:
53	53	(a) Not later than January 1 of each year, the governor
54	54	shall submit to the lieutenant governor, the speaker of the house of
55	55	representatives, and the standing committee of each house of the
56	56	legislature with primary jurisdiction over economic development
57	57	matters and post on the office of the governor's Internet website a
58	58	report that includes the following information regarding awards
59	59	made under the fund during each [for the] preceding [three] state
60	60	fiscal year [years]:
61	61	(1) the total number and amount of awards made;
62	62	(2) the number and amount of awards made under
63	63	Subchapters D, E, [and] F, and J;
64	64	(3) the aggregate total of private sector investment,
65	65	federal government funding, and contributions from other sources
66	66	obtained in connection with awards made under each of the
67	67	subchapters listed in Subdivision (2);
68	68	(4) the name of each award recipient and the amount of
69	69	the award made to the recipient; and
70	70	(5) a brief description of the equity position that
71	71	the governor, on behalf of the state, may take in companies
72	72	receiving awards and the names of the companies in which the state
73	73	has taken an equity position.
74	74	(b) The annual report must also contain:
75	75	(1) the total number of jobs actually created by each
76	76	project receiving funding under this chapter;
77	77	(2) an analysis of the number of jobs actually created
78	78	by each project receiving funding under this chapter; and
79	79	(3) a brief description regarding:
80	80	(A) the methodology used to determine the
81	81	information provided under Subdivisions (1) and (2), which may be
82	82	developed in consultation with the comptroller's and state
83	83	auditor's offices;
84	84	(B) [(1)] the intended outcomes of projects
85	85	funded under Subchapter D during the preceding two state fiscal
86	86	years; and
87	87	(C) [(2)] the actual outcomes of all projects
88	88	funded under Subchapter D during the fund's existence, including
89	89	any financial impact on the state resulting from a liquidity event
90	90	involving a company whose project was funded under that subchapter.
91	91	SECTION 4. Subchapter A, Chapter 490, Government Code, is
92	92	amended by adding Section 490.006 to read as follows:
93	93	Sec. 490.006. VALUATION OF INVESTMENTS; INCLUSION IN ANNUAL
94	94	REPORT. The office of the governor shall annually perform a
95	95	valuation of the equity positions taken by the governor, on behalf
96	96	of the state, in companies receiving awards under the fund and of
97	97	other investments made by the governor, on behalf of the state, in
98	98	connection with an award under the fund. The valuation must:
99	99	(1) be based on a methodology that:
100	100	(A) may be developed in consultation with the
101	101	comptroller's and state auditor's offices; and
102	102	(B) is consistent with generally accepted
103	103	accounting principles; and
104	104	(2) be included with the annual report required under
105	105	Section 490.005.
106	106	SECTION 5. The heading to Section 490.052, Government Code,
107	107	is amended to read as follows:
108	108	Sec. 490.052. APPOINTMENT TO COMMITTEE [BY GOVERNOR];
109	109	NOMINATIONS.
110	110	SECTION 6. Section 490.052, Government Code, is amended by
111	111	amending Subsection (a) and adding Subsections (a-1) and (a-2) to
112	112	read as follows:
113	113	(a) The governor shall appoint to the committee 13
114	114	individuals nominated as provided by Subsection (b).
115	115	(a-1) The lieutenant governor shall appoint two senators to
116	116	the committee.
117	117	(a-2) The speaker of the house of representatives shall
118	118	appoint two members of the house of representatives to the
119	119	committee.
120	120	SECTION 7. Subchapter B, Chapter 490, Government Code, is
121	121	amended by adding Section 490.0521 to read as follows:
122	122	Sec. 490.0521. FINANCIAL STATEMENT REQUIRED. Each member
123	123	of the committee shall file with the office of the governor a
124	124	verified financial statement complying with Sections
125	125	572.022-572.0252 as is required of a state officer by Section
126	126	572.021.
127	127	SECTION 8. Section 490.054, Government Code, is amended to
128	128	read as follows:
129	129	Sec. 490.054. TERMS. (a) Members of the committee
130	130	appointed by the governor serve staggered two-year terms, subject
131	131	to the pleasure of the governor.
132	132	(b) Members of the committee appointed by the lieutenant
133	133	governor or the speaker of the house of representatives serve
134	134	two-year terms.
135	135	SECTION 9. Section 490.056, Government Code, is amended by
136	136	adding Subsections (c), (d), and (e) to read as follows:
137	137	(c) Each entity recommended by the committee for an award of
138	138	money from the fund as provided by this chapter shall obtain and
139	139	provide the following information to the office of the governor:
140	140	(1) a federal criminal history background check for
141	141	each principal of the entity;
142	142	(2) a state criminal history background check for each
143	143	principal of the entity;
144	144	(3) a credit check for each principal of the entity;
145	145	(4) a copy of a government-issued form of photo
146	146	identification for each principal of the entity; and
147	147	(5) information regarding whether the entity or a
148	148	principal of the entity has ever been subject to a sanction imposed
149	149	by the Securities and Exchange Commission for a violation of
150	150	applicable federal law.
151	151	(d) For purposes of Subsection (c), "principal" means:
152	152	(1) an officer of an entity; or
153	153	(2) a person who has at least a 10 percent ownership
154	154	interest in an entity.
155	155	(e) With each proposal to award funding submitted by the
156	156	governor to the lieutenant governor and speaker of the house of
157	157	representatives for purposes of obtaining prior approval, the
158	158	governor shall provide each officer with a copy of the information
159	159	provided by the appropriate entity under Subsection (c).
160	160	SECTION 10. Section 490.057, Government Code, is amended to
161	161	read as follows:
162	162	Sec. 490.057. CONFIDENTIALITY. (a) Except as provided by
163	163	Subsection (b), information [Information] collected by the
164	164	governor's office, the committee, or the committee's advisory
165	165	panels concerning the identity, background, finance, marketing
166	166	plans, trade secrets, or other commercially or academically
167	167	sensitive information of an individual or entity being considered
168	168	for, receiving, or having received an award from the fund is
169	169	confidential unless the individual or entity consents to disclosure
170	170	of the information.
171	171	(b) The following information collected by the governor's
172	172	office, the committee, or the committee's advisory panels under
173	173	this chapter is public information and may be disclosed under
174	174	Chapter 552:
175	175	(1) the name and address of an individual or entity
176	176	being considered for, receiving, or having received an award from
177	177	the fund;
178	178	(2) the amount of funding:
179	179	(A) applied for by an individual or entity being
180	180	considered for an award; or
181	181	(B) received by an award recipient;
182	182	(3) a brief description of the project that is the
183	183	subject of an application for funding or that is funded under this
184	184	chapter;
185	185	(4) if applicable, a brief description of the equity
186	186	position that the governor, on behalf of the state, has taken in an
187	187	entity that has received an award from the fund; and
188	188	(5) any other information designated by the committee
189	189	with the consent of:
190	190	(A) the individual or entity being considered
191	191	for, receiving, or having received an award from the fund, as
192	192	applicable;
193	193	(B) the governor;
194	194	(C) the lieutenant governor; and
195	195	(D) the speaker of the house of representatives.
196	196	SECTION 11. Section 490.101, Government Code, is amended by
197	197	amending Subsection (f) and adding Subsection (f-1) to read as
198	198	follows:
199	199	(f) The administration of the fund is considered to be a
200	200	trusteed program within the office of the governor. The governor
201	201	may negotiate on behalf of the state regarding awards from the
202	202	fund. The governor may award money appropriated from the fund only
203	203	with the [express written] prior approval of the lieutenant
204	204	governor and speaker of the house of representatives.
205	205	(f-1) For purposes of Subsection (f), an award of money
206	206	appropriated from the fund is considered disapproved by the
207	207	lieutenant governor or speaker of the house of representatives if
208	208	that officer does not approve the proposal to award funding before
209	209	the 91st day after the date of receipt of the proposal from the
210	210	governor. The lieutenant governor or the speaker of the house of
211	211	representatives may extend the review deadline applicable to that
212	212	officer for an additional 14 days by submitting a written notice to
213	213	that effect to the governor before the expiration of the initial
214	214	review period.
215	215	SECTION 12. Section 490.102, Government Code, is amended by
216	216	amending Subsection (a) and adding Subsection (c) to read as
217	217	follows:
218	218	(a) Subject to Subsection (c), money [Money] appropriated
219	219	to the fund by the legislature, less amounts necessary to
220	220	administer the fund under Section 490.055, shall be allocated as
221	221	follows:
222	222	(1) 50 percent of the money for incentives for
223	223	collaboration between certain entities as provided by Subchapter D;
224	224	(2) 16.67 percent of the money for research award
225	225	matching as provided by Subchapter E; and
226	226	(3) 33.33 percent of the money for acquisition of
227	227	research superiority as provided by Subchapter F.
228	228	(c) Each state fiscal biennium, $2 million deposited to the
229	229	fund must be allocated for making awards under this chapter to
230	230	companies that generate $250,000 or less in annual gross revenue.
231	231	SECTION 13. Subchapter D, Chapter 490, Government Code, is
232	232	amended by adding Section 490.1521 to read as follows:
233	233	Sec. 490.1521. MINUTES OF CERTAIN MEETINGS. (a) Each
234	234	regional center of innovation and commercialization established
235	235	under Section 490.152, including the Texas Life Science Center for
236	236	Innovation and Commercialization, shall keep minutes of each
237	237	meeting at which applications for funding under this subchapter are
238	238	evaluated. The minutes must:
239	239	(1) include the name of each applicant recommended by
240	240	the regional center of innovation and commercialization to the
241	241	committee for funding; and
242	242	(2) indicate the vote of each member of the governing
243	243	body of the regional center of innovation and commercialization,
244	244	including any recusal by a member and the member's reason for
245	245	recusal, with regard to each application reviewed.
246	246	(b) Each regional center of innovation and
247	247	commercialization shall retain a copy of the minutes of each
248	248	meeting to which this section applies for at least three years.
249	249	SECTION 14. Chapter 490, Government Code, is amended by
250	250	adding Subchapter J to read as follows:
251	251	SUBCHAPTER J. STRATEGIC RESEARCH INITIATIVE PROGRAMS
252	252	Sec. 490.451. USE OF MONEY FOR STRATEGIC RESEARCH
253	253	INITIATIVE PROGRAMS. (a) Notwithstanding Section 490.102, the
254	254	governor may allocate money appropriated to the fund by the
255	255	legislature to provide grants to public or private institutions of
256	256	higher education in this state for the creation of strategic
257	257	research initiative programs as provided by this subchapter.
258	258	(b) The committee shall recommend proposals eligible for
259	259	funding under this section to the governor, lieutenant governor,
260	260	and speaker of the house of representatives.
261	261	(c) The amount allocated for funding proposals under this
262	262	subchapter may not exceed $2 million in any state fiscal biennium.
263	263	Sec. 490.452. PURPOSE. In recommending proposals for
264	264	funding, the committee shall give specific emphasis to programs
265	265	designed to provide financial assistance to enable professors,
266	266	researchers, and other employees of public or private institutions
267	267	of higher education to obtain an increased amount of federal grant
268	268	money for research in this state.
269	269	Sec. 490.453. PRIORITY FOR FUNDING. In funding proposals
270	270	under this subchapter, priority shall be given to proposals that
271	271	strengthen this state's competitiveness in obtaining federal grant
272	272	money for research by:
273	273	(1) creating programs designed for and intended to
274	274	achieve this purpose;
275	275	(2) funding travel for professors, researchers, and
276	276	other employees of public or private institutions of higher
277	277	education in this state; and
278	278	(3) allowing public or private institutions of higher
279	279	education in this state to engage in innovative efforts to achieve
280	280	this purpose.
281	281	Sec. 490.454. GUARANTEE OF ACTION BY PARTICIPATING ENTITY.
282	282	(a) An institution of higher education participating in a
283	283	strategic research initiative program that receives funding under
284	284	this subchapter shall guarantee by contract with the governor's
285	285	office that the institution will perform specific actions expected
286	286	to provide benefits to this state.
287	287	(b) If an institution of higher education fails to perform
288	288	an action guaranteed by contract under Subsection (a) before a time
289	289	specified by the contract, the institution shall return to the fund
290	290	the grant money received by the institution under this subchapter.
291	291	Sec. 490.455. AUTHORIZED EXPENSES. Money awarded from the
292	292	fund under this subchapter may be used for authorized expenses,
293	293	including salaries and benefits, travel, consumable supplies,
294	294	other operating expenses, capital equipment, construction or
295	295	renovation of state or private facilities, and workforce training.
296	296	SECTION 15. Section 203.021, Labor Code, is amended by
297	297	adding Subsection (e) to read as follows:
298	298	(e) Money in the compensation fund may not be transferred to
299	299	the:
300	300	(1) Texas Enterprise Fund created under Section
301	301	481.078, Government Code; or
302	302	(2) Texas emerging technology fund established under
303	303	Section 490.101, Government Code.
304	304	SECTION 16. Section 204.123, Labor Code, is amended to read
305	305	as follows:
306	306	Sec. 204.123. TRANSFER TO [TEXAS ENTERPRISE FUND,] SKILLS
307	307	DEVELOPMENT FUND, TRAINING STABILIZATION FUND, AND COMPENSATION
308	308	FUND. (a) If, on September 1 of a year, the commission determines
309	309	that the amount in the compensation fund will exceed 100 percent of
310	310	its floor as computed under Section 204.061 on the next October 1
311	311	computation date, the commission shall transfer from the holding
312	312	fund created under Section 204.122:
313	313	(1) [from the first $160 million deposited in the
314	314	holding fund in any state fiscal biennium:
315	315	[(A) during the state fiscal biennium ending
316	316	August 31, 2007:
317	317	[(i) 67 percent to the Texas Enterprise
318	318	Fund created under Section 481.078, Government Code, except that
319	319	the amount transferred under this paragraph may not exceed the
320	320	amount appropriated by the legislature to the Texas Enterprise Fund
321	321	in that biennium; and
322	322	[(ii) 33 percent to the skills development
323	323	fund created under Section 303.003, except that the amount
324	324	transferred under this paragraph may not exceed the amount
325	325	appropriated by the legislature to the skills development program
326	326	strategies and activities in that biennium; and
327	327	[(B)] during any state fiscal biennium beginning
328	328	on or after September 1, 2007, 100[:
329	329	[(i) 75 percent to the Texas Enterprise
330	330	Fund created under Section 481.078, Government Code, except that
331	331	the amount transferred under this paragraph may not exceed the
332	332	amount appropriated by the legislature to the Texas Enterprise Fund
333	333	in that biennium; and
334	334	[(ii) 25] percent to the skills development
335	335	fund created under Section 303.003, except that the amount
336	336	transferred under this subdivision [paragraph] may not exceed the
337	337	amount appropriated by the legislature to the skills development
338	338	program strategies and activities in that biennium; and
339	339	(2) any remaining amount in the holding fund after the
340	340	distribution under Subdivision (1) to the training stabilization
341	341	fund created under Section 302.101.
342	342	(b) If, on September 1 of a year, the commission determines
343	343	that the amount in the compensation fund will be at or below 100
344	344	percent of its floor as computed under Section 204.061 on the next
345	345	October 1 computation date, the commission shall transfer to the
346	346	compensation fund as much of the amount in the holding fund as is
347	347	necessary to raise the amount in the compensation fund to 100
348	348	percent of its floor, up to and including the entire amount in the
349	349	holding fund. The commission shall transfer any remaining balance
350	350	in the holding fund to the [Texas Enterprise Fund, the] skills
351	351	development fund[,] and the training stabilization fund in the
352	352	manner [in the percentages] prescribed by Subsection (a).
353	353	SECTION 17. Subsections (b) and (c), Section 302.101, Labor
354	354	Code, are amended to read as follows:
355	355	(b) Money in the training stabilization fund may be used in
356	356	a year in which the amounts in the employment and training
357	357	investment holding fund are insufficient to meet the legislative
358	358	appropriation for that fiscal year for [either the Texas Enterprise
359	359	Fund or] the skills development program strategies and activities.
360	360	(c) Money in the training stabilization fund shall be
361	361	transferred to the [Texas Enterprise Fund and the] skills
362	362	development fund under Subsection (b) not later than September
363	363	30. [The transfer under Subsection (b) shall consist of
364	364	transferring 67 percent of the money in the training stabilization
365	365	fund to the Texas Enterprise Fund and 33 percent of the money in the
366	366	training stabilization fund to the skills development fund.] The
367	367	amount transferred from the training stabilization fund may not
368	368	exceed the amounts appropriated to the [Texas Enterprise Fund and]
369	369	skills development program strategies and activities in the fiscal
370	370	year in which the transfer is made.
371	371	SECTION 18. Subsection (e), Section 481.078, and Subsection
372	372	(f), Section 490.101, Government Code, as amended by this Act, and
373	373	Subsection (f-1), Section 490.101, Government Code, as added by
374	374	this Act, apply only to a proposal for an award from the Texas
375	375	Enterprise Fund or Texas emerging technology fund submitted by the
376	376	governor to the lieutenant governor or speaker of the house of
377	377	representatives for prior approval on or after the effective date
378	378	of this Act. A proposal submitted by the governor for prior
379	379	approval before the effective date of this Act is governed by the
380	380	law in effect on the date the proposal was submitted for that
381	381	approval, and the former law is continued in effect for that
382	382	purpose.
383	383	SECTION 19. Subsection (f-1), Section 481.078, Government
384	384	Code, as added by this Act, applies only to a grant agreement that
385	385	is entered into on or after the effective date of this Act. A grant
386	386	agreement that is entered into before the effective date of this Act
387	387	is governed by the law in effect on the date the agreement was
388	388	entered into, and the former law is continued in effect for that
389	389	purpose.
390	390	SECTION 20. (a) The terms of the members of the Texas
391	391	Emerging Technology Advisory Committee serving immediately before
392	392	the effective date of this Act expire September 1, 2011.
393	393	(b) As soon as practicable after this Act takes effect, the
394	394	governor, lieutenant governor, and speaker of the house of
395	395	representatives shall appoint members to the Texas Emerging
396	396	Technology Advisory Committee established under Subchapter B,
397	397	Chapter 490, Government Code, in a manner that complies with that
398	398	subchapter, as amended by this Act.
399	399	(c) At the first meeting of members of the Texas Emerging
400	400	Technology Advisory Committee established under Subchapter B,
401	401	Chapter 490, Government Code, as amended by this Act, occurring on
402	402	or after September 1, 2011, the members appointed by the governor
403	403	shall draw lots to determine which six members will serve a term
404	404	expiring September 1, 2012, and which seven members will serve a
405	405	term expiring September 1, 2013.
406	406	SECTION 21. Section 490.102, Government Code, as amended by
407	407	this Act, applies only to an award from the Texas emerging
408	408	technology fund that is made on or after the effective date of this
409	409	Act. An award from the Texas emerging technology fund made before
410	410	the effective date of this Act is governed by the law in effect on
411	411	the date the award was made, and the former law is continued in
412	412	effect for that purpose.
413	413	SECTION 22. This Act takes effect September 1, 2011.