By: Fraser, Lucio S.B. No. 632
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the governor's university research
initiative and to the abolishment of the Texas emerging technology
fund.
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 who
is:
(A) a Nobel laureate; or
(B) a member of the National Academy of Sciences,
the National Academy of Engineering, the Institute of Medicine, or
the National Research Council.
(2) "Eligible institution" means a general academic
teaching institution or medical and dental unit.
(3) "Fund" means the governor's university research
initiative fund established under this subchapter.
(4) "General academic teaching institution" has the
meaning assigned by Section 61.003.
(5) "Medical and dental unit" has the meaning assigned
by Section 61.003.
(6) "Office" means the Texas Economic Development and
Tourism Office within the office of the governor.
(7) "Private or independent institution of higher
education" has the meaning assigned by Section 61.003.
Sec. 62.162. ADMINISTRATION OF INITIATIVE. (a) The
governor's university research initiative is administered by the
Texas Economic Development and Tourism Office within the office of
the governor.
(b) The office may adopt any rules the office considers
necessary to administer this subchapter.
Sec. 62.163. MATCHING GRANTS TO RECRUIT DISTINGUISHED
RESEARCHERS. (a) From the governor's university research
initiative fund, the office shall award matching grants to assist
eligible institutions in recruiting distinguished researchers.
(b) An eligible institution may apply to the office for a
matching grant from the fund. If the office approves a grant
application, the office shall award to the applicant institution a
grant amount equal to the amount committed by the institution for
the recruitment of a distinguished researcher.
(c) A matching grant may not be used by an eligible
institution to recruit a distinguished researcher from:
(1) another eligible institution; or
(2) a private or independent institution of higher
education.
Sec. 62.164. GRANT AWARD PRIORITIES. In awarding grants,
the office shall give priority to grant proposals that involve the
recruitment of distinguished researchers in the fields of science,
technology, engineering, and mathematics. With respect to
proposals involving those fields, the office shall give priority to
proposals that demonstrate a reasonable likelihood of contributing
substantially to this state's national and global economic
competitiveness.
Sec. 62.165. 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:
(1) amounts appropriated or otherwise allocated or
transferred by law to the fund;
(2) money deposited to the fund under Section 62.166;
and
(3) gifts, grants, and other donations received for
the fund.
Sec. 62.166. WINDING UP OF CONTRACTS AND AWARDS IN
CONNECTION WITH FORMER TEXAS EMERGING TECHNOLOGY FUND. (a) The
governor's university research initiative is the successor to the
former Texas emerging technology fund. Awards from the former
Texas emerging technology 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 former Texas
emerging technology fund provides for the distribution of
royalties, revenue, or other financial benefits to the state,
including royalties, revenue, or other financial benefits realized
from the commercialization of intellectual or real property
developed from an award from the fund, those royalties, revenues,
or other financial benefits shall continue to be distributed in
accordance with the terms of the contract unless the award
recipient and the governor agree otherwise. Unless otherwise
required by law, royalties, revenue, or other financial benefits
accruing to the state under a contract described by this subsection
shall be credited to the governor's university research initiative
fund.
(c) If money awarded from the former Texas emerging
technology fund is encumbered by a 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 award recipient and the governor agree
otherwise.
(d) If money awarded from the former 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
fully performed all specific actions under the terms of the
contract governing the award. The entity shall file with the office
a final report showing the purposes for which the award money has
been spent and, if award money remains unspent, the purposes for
which the recipient will spend the remaining money. The entity is
not required to return to the state any award money received under
the contract.
(e) The Texas Treasury Safekeeping Trust Company shall
manage the following:
(1) equity positions in the form of stock or other
security taken by the governor, on behalf of the state, in companies
receiving awards under former Chapter 490, Government Code, 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 made
under former Chapter 490, Government Code, before September 1,
2015.
(f) As soon as practicable after September 1, 2015, the
Texas Treasury Safekeeping Trust Company shall begin winding up the
state's portfolio of equity positions and other investments
described by Subsection (e) 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 in performing duties
under this subsection and Subsections (e) and (g) to accomplish the
purpose of this section. In managing those 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.
(g) Proceeds or other earnings from the sale of stock or
other investments in the state's portfolio of equity positions and
other investments described by Subsection (e) 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.
Sec. 62.167. CONFIDENTIALITY OF INFORMATION CONCERNING
AWARDS FROM FORMER TEXAS EMERGING TECHNOLOGY FUND. (a) Except as
provided by Subsection (b), information collected under former
Chapter 490, Government Code, concerning the identity, background,
finance, marketing plans, trade secrets, or other commercially or
academically sensitive information of an individual or entity that
was considered for or received an award from the former Texas
emerging technology fund is confidential unless the individual or
entity consents to disclosure of the information.
(b) The following information collected in connection with
the former Texas emerging technology fund is public information and
may be disclosed under Chapter 552, Government Code:
(1) the name and address of an individual or entity
that received an award from the former Texas emerging technology
fund;
(2) the amount of funding received by an award
recipient;
(3) a brief description of the project funded under
former Chapter 490, Government Code;
(4) if applicable, a brief description of the equity
position that the governor, on behalf of the state, has taken in an
entity that received an award from the former Texas emerging
technology fund; and
(5) any other information with the consent of:
(A) the governor;
(B) the lieutenant governor;
(C) the speaker of the house of representatives;
and
(D) the individual or entity that received an
award from the former Texas emerging technology fund, if the
information relates to that individual or entity.
Sec. 62.168. REPORTING REQUIREMENTS. (a) Before the
beginning of each regular session of the legislature the governor
shall submit to the lieutenant governor, the speaker of the house of
representatives, and the standing committees of each house of the
legislature with primary jurisdiction over economic development
and higher education matters and post on the office of the
governor's Internet website a report on grants made from the
governor's university research initiative fund that states:
(1) the total amount of matching funds granted by the
office;
(2) the total amount of matching funds granted to each
institution;
(3) a brief description of each distinguished
researcher recruited by each institution, including any amount of
external research funding that followed the distinguished
researcher to the recruiting institution;
(4) a brief description of the expenditures made from
the matching grant funds for each distinguished researcher; and
(5) when available, a brief description of each
distinguished researcher's contribution to the state's economic
competitiveness, including but not limited to:
(A) any patents issued to the distinguished
researcher after accepting employment by the recruiting
institution; and
(B) any external research funding, public or
private, earned by the distinguished researcher after accepting
employment by the recruiting institution.
(a-1) The report may not include information that is made
confidential by law.
(b) The governor may require a recipient of a grant under
the governor's university research initiative to submit, on a form
the governor provides, information required to complete the report.
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 62.166, 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. On the
effective date of this Act, the comptroller of public accounts
shall transfer any unexpended balance of that fund as follows:
(1) 50 percent of the balance to the credit of the
Texas Enterprise Fund under Section 481.078, Government Code; and
(2) 50 percent of the balance to the credit of the
governor's university research initiative fund established under
Subchapter H, Chapter 62, Education Code, as added by this Act.
(e) On September 1, 2015, the following powers, duties,
functions, and activities performed by the office of the governor
immediately before that date are transferred to the Texas Treasury
Safekeeping Trust Company:
(1) all powers, duties, functions, and activities
related to equity positions in the form of stock or other security
the governor has taken, on behalf of the state, in companies that
received awards under Chapter 490, Government Code, before
September 1, 2015; and
(2) all powers, duties, functions, and activities
related to other investments, excluding grants, made by the
governor, on behalf of the state, in connection with an award made
under Chapter 490, Government Code, before September 1, 2015.
(f) Notwithstanding the repeal by this Act of Chapter 490,
Government Code, that chapter is continued in effect for the
limited purpose of winding down contracts governing awards from the
Texas emerging technology fund and the state's portfolio of equity
positions and other investments in connection with awards from that
fund in accordance with Section 62.166, Education Code, as added by
this Act.
SECTION 3. This Act takes effect September 1, 2015.