By: Springer H.B. No. 29
A BILL TO BE ENTITLED
AN ACT
relating to the funding of certain activities related to the
commercialization of emerging technologies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 62, Education Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
Sec. 62.161. DEFINITIONS. In this subchapter:
(1) "Distinguished researcher" means a researcher
with a national reputation who is a Nobel laureate or is a member
of, or holds promise of election to, a national honorific society,
such as the National Academy of Sciences, the National Academy of
Engineering, or the Institute of Medicine.
(2) "Eligible institution" means a general academic
teaching institution or a health-related institution.
(3) "Fund" means the governor's university research
initiative fund.
(4) "General academic teaching institution" has the
meaning assigned by Section 61.003.
(5) "Private or independent institution of higher
education" has the meaning assigned by Section 61.003.
(6) "Health-related institution" means a "medical and
dental unit" as defined by Section 61.003 and any other public
health science center, public medical school, or public dental
school established by statute or in accordance with Chapter 61.
(7) "Office" means the Texas Economic Development and
Tourism Office within the office of the governor.
(8) "Governing Board" as the meaning assigned by
Section 61.003
Sec. 62.162. ADMINISTRATION. (a) The initiative is
administered by the Texas Economic Development and Tourism Office
within the office of the governor.
(b) From money appropriated from the governor's university
research initiative fund, the office shall award matching grants to
assist eligible institutions in recruiting distinguished
researchers.
Sec. 62.163. MATCHING GRANTS. (a) An eligible institution
may apply to the office for a matching grant from the fund. For an
approved proposal, the office shall award to the institution an
amount equal to the amount committed by the institution for the
recruitment of a distinguished researcher, except as provided by
Subsection (b).
(b) A grant proposal must identify the source and amount of
the institution's matching funds and must demonstrate that the
proposal has the support of the president of the institution and of
the institution's governing board or that of board's chair, or
chancellor. The institution may commit to the match any funds of the
institution available for that purpose other than appropriated
general revenue.
(c) For awards in each fiscal year, the office may set a
deadline for applications for that year. After fully funding
awards from the amount available for that year, the office may
reopen applications for full funding or may select timely but
unfunded proposals for a reduced grant.
(d) A matching grant received by an eligible institution
under this subchapter may not be considered as a basis to reduce,
directly or indirectly, the amount of money otherwise appropriated
to the institution.
(e) A matching grant may not be used to recruit a
distinguished researcher from another eligible institution,
private or independent institution of higher education.
Sec. 62.164. AWARDS CRITERIA; PRIORITY. (a) In making
awards, the office shall give priority to proposals for the
recruitment of distinguished researchers in science, technology,
engineering, and mathematics. Within those priority subjects, the
office shall give priority to proposals that demonstrate that the
proposal:
(1) has a probability of enhancing Texas' national and
global economic competitiveness;
(2) has a probability of creating a national or
internationally recognized locus of research superiority or a
unique locus of research;
(3) who has significant funding from federal and/or
private sources that could be transferred to the eligible
institution;
(4) is interdisciplinary and collaborative; or
(5) has a strategic plan for intellectual property
development and commercialization of technology.
(b) A proposal may support the recruitment of researchers
distinguished in, or to be engaged in, basic, translational, or
applied research. A proposal may propose a recruitment for new
research capabilities of the institution or to expand existing
research capabilities.
(c) A proposal should identify a specific distinguished
researcher, in addition to the priorities considered under
Subsection (a), the office may consider:
(1) whether, but for the grant from the fund, the
recruit is likely to go elsewhere;
(2) the extent to which the recruit's research subject
matter offers opportunity for interdisciplinary and collaborative
research at the institution and with other eligible institutions;
and
(3) the commercialization track record of the recruit,
if any.
(d) Any information of a specific distinguished researcher
for recruitment that would tend to identify the recruit, is
confidential until the recruit has entered into an employment
relationship with the institution.
Sec. 62.165. ADVISORY BOARD. (a) The governor shall
appoint an advisory board to review proposals and recommend awards.
(b) The advisory board must be composed of at least nine
members. One-third of the advisory board must have a background in
finance and one-third must have an academic background in science,
technology, engineering, or mathematics.
(c) Chapter 2110, Government Code, does not apply to the
size, composition, or duration of the advisory board.
(d) An advisory board member who is or has been employed by,
or has or has had a contract for any purpose with, a general
academic teaching institution or health-related institution may
not be involved in the review or recommendation of proposals made by
that institution.
(e) An advisory board member is not required to be a
resident of Texas.
(f) Appointments to the advisory board shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of appointees.
(g) Members of the advisory board serve without
compensation but are entitled to reimbursement for actual and
necessary expenses in attending meetings of the advisory board or
performing other official duties authorized by the office.
(h) Each eligible institution that applies to the office for
a matching grant may address the board directly for 25 minutes, per
matching grant application to discuss the application with the
board.
Sec. 62.166. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
FUND. (a) The governor's university research initiative fund is a
dedicated account in the general revenue fund.
(b) The fund consists of any amounts appropriated to or
transferred to the fund by the legislature, in addition to any gifts
for purposes of the fund.
(c) Sections 403.095 and 404.071, Government Code, do not
apply to the fund.
Sec. 62.167. WIND-UP OF TEXAS EMERGING TECHNOLOGY FUND.
(a) The governor's university research initiative is the successor
to the Texas emerging technology fund. Awards from that fund, and
contracts governing awards from that fund, shall be wound up in
accordance with this section.
(b) If a contract governing an award from the Texas
emerging technology fund provided for the distribution of
royalties, revenue, or other financial benefits realized from the
commercialization of intellectual or real property developed from
an award from the fund, those financial benefits shall continue to
be distributed in accordance with the terms of the contract unless
the recipient and the governor agree otherwise. Unless otherwise
required by law, royalties or revenue accruing to the state under
such a contract shall be credited to the governor's university
research initiative fund.
(b) If money from the Texas emerging technology fund is
encumbered by contract executed before September 1, 2015, but has
not been distributed before that date, the money shall be
distributed from the governor's university research initiative
fund in accordance with the terms of the contract, unless the
recipient and the governor agree otherwise.
(c) If award money from the Texas emerging technology fund
under a contract executed before September 1, 2015, has been fully
distributed, the entity that received the award is considered to
have fully satisfied the entity's obligations and performed all
specific actions under the terms of the contract governing the
award. The recipient entity shall file with the office a final
report showing the purposes for which the award money has been
expended and, if award money remains unexpended, the purposes for
the recipient will expend the remaining money. The recipient is not
required to return to the state any award money received under the
contract.
(d) The Texas Treasury Safekeeping Trust Company shall
manage the following in accordance with prior law relating to
awards from the Texas emerging technology fund:
(1) equity positions in the form of stock or other
security taken by the governor, on behalf of the state, in companies
receiving awards before September 1, 2015; and
(2) any other investments, excluding grants, made by
the governor on the state's behalf in connection with an award from
the emerging technology fund before September 1, 2015.
(e) The Texas Treasury Safekeeping Trust Company, as soon as
practicable after September 1, 2015, shall begin winding up the
state's portfolio of equity positions and other investments
described by Subsection (d) of this section by selling the stock and
other investments when it is economically advantageous to the state
to do so. The trust company has any power necessary to accomplish
the purpose of this section. In managing these investments through
procedures and subject to restrictions that the trust company
considers appropriate, the trust company may acquire, exchange,
sell, supervise, manage, or retain any kind of investment that a
prudent investor, exercising reasonable care, skill, and caution,
would acquire or retain in light of the purposes, terms,
distribution requirements, and other circumstances then prevailing
pertinent to each investment. Proceeds shall be deposited to the
credit of the governor's university research initiative fund,
taking into consideration the expenses of managing and liquidating
the equity positions and other investments.
SECTION 2. (a) Chapter 490, Government Code, is repealed.
(b) The repeal by this Act of Chapter 490, Government Code,
does not affect the validity of an agreement between the governor
and the recipient of an award awarded under Chapter 490, or a person
to be awarded money under that chapter, that is executed before
September 1, 2015. Those agreements shall be performed as provided
by Section 62.167, Education Code, as added by this Act.
(c) A regional center of innovation and commercialization
established under Section 490.152, Government Code, is abolished on
the effective date of this Act. Each center shall transfer to the
office of the governor a copy of any meeting minutes required to be
retained under Section 490.1521, Government Code, as that section
existed immediately before that section's repeal by this Act, and
the office shall retain the minutes for the period prescribed by
that section.
(d) The Texas emerging technology fund is abolished. The
comptroller of public accounts shall transfer any unexpended
balance of that fund to the governor's university research
initiative fund.
SECTION 3. This Act takes effect September 1, 2015.