Texas 2015 - 84th Regular

Texas House Bill HB29 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Springer H.B. No. 29
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the funding of certain activities related to the
7	7	commercialization of emerging technologies.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 62, Education Code, is amended by adding
10	10	Subchapter H to read as follows:
11	11	SUBCHAPTER H. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
12	12	Sec. 62.161. DEFINITIONS. In this subchapter:
13	13	(1) "Distinguished researcher" means a researcher
14	14	with a national reputation who is a Nobel laureate or is a member
15	15	of, or holds promise of election to, a national honorific society,
16	16	such as the National Academy of Sciences, the National Academy of
17	17	Engineering, or the Institute of Medicine.
18	18	(2) "Eligible institution" means a general academic
19	19	teaching institution or a health-related institution.
20	20	(3) "Fund" means the governor's university research
21	21	initiative fund.
22	22	(4) "General academic teaching institution" has the
23	23	meaning assigned by Section 61.003.
24	24	(5) "Private or independent institution of higher
25	25	education" has the meaning assigned by Section 61.003.
26	26	(6) "Health-related institution" means a "medical and
27	27	dental unit" as defined by Section 61.003 and any other public
28	28	health science center, public medical school, or public dental
29	29	school established by statute or in accordance with Chapter 61.
30	30	(7) "Office" means the Texas Economic Development and
31	31	Tourism Office within the office of the governor.
32	32	(8) "Governing Board" as the meaning assigned by
33	33	Section 61.003
34	34	Sec. 62.162. ADMINISTRATION. (a) The initiative is
35	35	administered by the Texas Economic Development and Tourism Office
36	36	within the office of the governor.
37	37	(b) From money appropriated from the governor's university
38	38	research initiative fund, the office shall award matching grants to
39	39	assist eligible institutions in recruiting distinguished
40	40	researchers.
41	41	Sec. 62.163. MATCHING GRANTS. (a) An eligible institution
42	42	may apply to the office for a matching grant from the fund. For an
43	43	approved proposal, the office shall award to the institution an
44	44	amount equal to the amount committed by the institution for the
45	45	recruitment of a distinguished researcher, except as provided by
46	46	Subsection (b).
47	47	(b) A grant proposal must identify the source and amount of
48	48	the institution's matching funds and must demonstrate that the
49	49	proposal has the support of the president of the institution and of
50	50	the institution's governing board or that of board's chair, or
51	51	chancellor. The institution may commit to the match any funds of the
52	52	institution available for that purpose other than appropriated
53	53	general revenue.
54	54	(c) For awards in each fiscal year, the office may set a
55	55	deadline for applications for that year. After fully funding
56	56	awards from the amount available for that year, the office may
57	57	reopen applications for full funding or may select timely but
58	58	unfunded proposals for a reduced grant.
59	59	(d) A matching grant received by an eligible institution
60	60	under this subchapter may not be considered as a basis to reduce,
61	61	directly or indirectly, the amount of money otherwise appropriated
62	62	to the institution.
63	63	(e) A matching grant may not be used to recruit a
64	64	distinguished researcher from another eligible institution,
65	65	private or independent institution of higher education.
66	66	Sec. 62.164. AWARDS CRITERIA; PRIORITY. (a) In making
67	67	awards, the office shall give priority to proposals for the
68	68	recruitment of distinguished researchers in science, technology,
69	69	engineering, and mathematics. Within those priority subjects, the
70	70	office shall give priority to proposals that demonstrate that the
71	71	proposal:
72	72	(1) has a probability of enhancing Texas' national and
73	73	global economic competitiveness;
74	74	(2) has a probability of creating a national or
75	75	internationally recognized locus of research superiority or a
76	76	unique locus of research;
77	77	(3) who has significant funding from federal and/or
78	78	private sources that could be transferred to the eligible
79	79	institution;
80	80	(4) is interdisciplinary and collaborative; or
81	81	(5) has a strategic plan for intellectual property
82	82	development and commercialization of technology.
83	83	(b) A proposal may support the recruitment of researchers
84	84	distinguished in, or to be engaged in, basic, translational, or
85	85	applied research. A proposal may propose a recruitment for new
86	86	research capabilities of the institution or to expand existing
87	87	research capabilities.
88	88	(c) A proposal should identify a specific distinguished
89	89	researcher, in addition to the priorities considered under
90	90	Subsection (a), the office may consider:
91	91	(1) whether, but for the grant from the fund, the
92	92	recruit is likely to go elsewhere;
93	93	(2) the extent to which the recruit's research subject
94	94	matter offers opportunity for interdisciplinary and collaborative
95	95	research at the institution and with other eligible institutions;
96	96	and
97	97	(3) the commercialization track record of the recruit,
98	98	if any.
99	99	(d) Any information of a specific distinguished researcher
100	100	for recruitment that would tend to identify the recruit, is
101	101	confidential until the recruit has entered into an employment
102	102	relationship with the institution.
103	103	Sec. 62.165. ADVISORY BOARD. (a) The governor shall
104	104	appoint an advisory board to review proposals and recommend awards.
105	105	(b) The advisory board must be composed of at least nine
106	106	members. One-third of the advisory board must have a background in
107	107	finance and one-third must have an academic background in science,
108	108	technology, engineering, or mathematics.
109	109	(c) Chapter 2110, Government Code, does not apply to the
110	110	size, composition, or duration of the advisory board.
111	111	(d) An advisory board member who is or has been employed by,
112	112	or has or has had a contract for any purpose with, a general
113	113	academic teaching institution or health-related institution may
114	114	not be involved in the review or recommendation of proposals made by
115	115	that institution.
116	116	(e) An advisory board member is not required to be a
117	117	resident of Texas.
118	118	(f) Appointments to the advisory board shall be made without
119	119	regard to the race, color, disability, sex, religion, age, or
120	120	national origin of appointees.
121	121	(g) Members of the advisory board serve without
122	122	compensation but are entitled to reimbursement for actual and
123	123	necessary expenses in attending meetings of the advisory board or
124	124	performing other official duties authorized by the office.
125	125	(h) Each eligible institution that applies to the office for
126	126	a matching grant may address the board directly for 25 minutes, per
127	127	matching grant application to discuss the application with the
128	128	board.
129	129	Sec. 62.166. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
130	130	FUND. (a) The governor's university research initiative fund is a
131	131	dedicated account in the general revenue fund.
132	132	(b) The fund consists of any amounts appropriated to or
133	133	transferred to the fund by the legislature, in addition to any gifts
134	134	for purposes of the fund.
135	135	(c) Sections 403.095 and 404.071, Government Code, do not
136	136	apply to the fund.
137	137	Sec. 62.167. WIND-UP OF TEXAS EMERGING TECHNOLOGY FUND.
138	138	(a) The governor's university research initiative is the successor
139	139	to the Texas emerging technology fund. Awards from that fund, and
140	140	contracts governing awards from that fund, shall be wound up in
141	141	accordance with this section.
142	142	(b) If a contract governing an award from the Texas
143	143	emerging technology fund provided for the distribution of
144	144	royalties, revenue, or other financial benefits realized from the
145	145	commercialization of intellectual or real property developed from
146	146	an award from the fund, those financial benefits shall continue to
147	147	be distributed in accordance with the terms of the contract unless
148	148	the recipient and the governor agree otherwise. Unless otherwise
149	149	required by law, royalties or revenue accruing to the state under
150	150	such a contract shall be credited to the governor's university
151	151	research initiative fund.
152	152	(b) If money from the Texas emerging technology fund is
153	153	encumbered by contract executed before September 1, 2015, but has
154	154	not been distributed before that date, the money shall be
155	155	distributed from the governor's university research initiative
156	156	fund in accordance with the terms of the contract, unless the
157	157	recipient and the governor agree otherwise.
158	158	(c) If award money from the Texas emerging technology fund
159	159	under a contract executed before September 1, 2015, has been fully
160	160	distributed, the entity that received the award is considered to
161	161	have fully satisfied the entity's obligations and performed all
162	162	specific actions under the terms of the contract governing the
163	163	award. The recipient entity shall file with the office a final
164	164	report showing the purposes for which the award money has been
165	165	expended and, if award money remains unexpended, the purposes for
166	166	the recipient will expend the remaining money. The recipient is not
167	167	required to return to the state any award money received under the
168	168	contract.
169	169	(d) The Texas Treasury Safekeeping Trust Company shall
170	170	manage the following in accordance with prior law relating to
171	171	awards from the Texas emerging technology fund:
172	172	(1) equity positions in the form of stock or other
173	173	security taken by the governor, on behalf of the state, in companies
174	174	receiving awards before September 1, 2015; and
175	175	(2) any other investments, excluding grants, made by
176	176	the governor on the state's behalf in connection with an award from
177	177	the emerging technology fund before September 1, 2015.
178	178	(e) The Texas Treasury Safekeeping Trust Company, as soon as
179	179	practicable after September 1, 2015, shall begin winding up the
180	180	state's portfolio of equity positions and other investments
181	181	described by Subsection (d) of this section by selling the stock and
182	182	other investments when it is economically advantageous to the state
183	183	to do so. The trust company has any power necessary to accomplish
184	184	the purpose of this section. In managing these investments through
185	185	procedures and subject to restrictions that the trust company
186	186	considers appropriate, the trust company may acquire, exchange,
187	187	sell, supervise, manage, or retain any kind of investment that a
188	188	prudent investor, exercising reasonable care, skill, and caution,
189	189	would acquire or retain in light of the purposes, terms,
190	190	distribution requirements, and other circumstances then prevailing
191	191	pertinent to each investment. Proceeds shall be deposited to the
192	192	credit of the governor's university research initiative fund,
193	193	taking into consideration the expenses of managing and liquidating
194	194	the equity positions and other investments.
195	195	SECTION 2. (a) Chapter 490, Government Code, is repealed.
196	196	(b) The repeal by this Act of Chapter 490, Government Code,
197	197	does not affect the validity of an agreement between the governor
198	198	and the recipient of an award awarded under Chapter 490, or a person
199	199	to be awarded money under that chapter, that is executed before
200	200	September 1, 2015. Those agreements shall be performed as provided
201	201	by Section 62.167, Education Code, as added by this Act.
202	202	(c) A regional center of innovation and commercialization
203	203	established under Section 490.152, Government Code, is abolished on
204	204	the effective date of this Act. Each center shall transfer to the
205	205	office of the governor a copy of any meeting minutes required to be
206	206	retained under Section 490.1521, Government Code, as that section
207	207	existed immediately before that section's repeal by this Act, and
208	208	the office shall retain the minutes for the period prescribed by
209	209	that section.
210	210	(d) The Texas emerging technology fund is abolished. The
211	211	comptroller of public accounts shall transfer any unexpended
212	212	balance of that fund to the governor's university research
213	213	initiative fund.
214	214	SECTION 3. This Act takes effect September 1, 2015.