84R31165 CLG-D
By: Fraser, et al. S.B. No. 632
(Button)
Substitute the following for S.B. No. 632: No.
A BILL TO BE ENTITLED
AN ACT
relating to the abolishment of the Texas emerging technology fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 490, Government Code, is
amended to read as follows:
CHAPTER 490. WINDING UP CONTRACTS AND STATE'S INVESTMENT PORTFOLIO
IN CONNECTION WITH AWARDS FROM TEXAS [FUNDING FOR] EMERGING
TECHNOLOGY FUND
SECTION 2. Subchapter C, Chapter 490, Government Code, is
amended by adding Sections 490.104 and 490.105 to read as follows:
Sec. 490.104. MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
UP AND FINAL LIQUIDATION. (a) In this section, "state's emerging
technology investment portfolio" means:
(1) the equity positions in the form of stock or other
security the governor took, on behalf of the state, in companies
that received awards under the Texas emerging technology fund; and
(2) any other investments made by the governor, on
behalf of the state, in connection with an award made under the
Texas emerging technology fund.
(b) The Texas Treasury Safekeeping Trust Company shall
manage and wind up the state's emerging technology investment
portfolio. The trust company shall wind up the portfolio in a manner
that, to the extent feasible, provides for the maximum return on the
state's investment. 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. The trust company may recover its
reasonable and necessary costs incurred in the management of the
portfolio from the earnings on the investments in the portfolio.
(c) Any realized proceeds or other earnings from the sale of
stock or other investments in the state's emerging technology
investment portfolio, less the amount permitted to be retained for
payment of its costs for managing the portfolio as provided by
Subsection (b), shall be remitted by the Texas Treasury Safekeeping
Trust Company to the comptroller for deposit in the general revenue
fund.
(d) The Texas Treasury Safekeeping Trust Company has any
power necessary to accomplish the purposes of this section.
(e) On final liquidation of the state's emerging technology
investment portfolio, the Texas Treasury Safekeeping Trust Company
shall promptly notify the comptroller of that occurrence. As soon
as practicable after receiving that notice, the comptroller shall
verify that the final liquidation has been completed and, if the
comptroller so verifies, shall certify to the governor that the
final liquidation of the portfolio has been completed. The governor
shall post notice of the certification on the office of the
governor's Internet website.
(f) Any balance remaining in the Texas emerging technology
fund on final liquidation by the Texas Treasury Safekeeping Trust
Company shall be remitted to the comptroller for deposit in the
general revenue fund.
Sec. 490.105. CONFIDENTIALITY OF CERTAIN INFORMATION.
(a) Except as provided by Subsection (b), information 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 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 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 fund;
(2) the amount of funding received by an award
recipient;
(3) a brief description of the project funded by the
award;
(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 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 fund, if the information relates to that individual
or entity.
SECTION 3. Section 490.101, Government Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) The fund may be used only for the purposes described
by Section 490.104.
SECTION 4. The following laws are repealed:
(1) Sections 490.101(c), (d), (e), (f), (f-1), (g),
(h), and (i), Government Code;
(2) Section 490.102, Government Code; and
(3) Subchapters A, B, D, E, F, and G, Chapter 490,
Government Code.
SECTION 5. (a) The Texas emerging technology fund is
continued solely for the purposes of winding up the contracts
governing awards from that fund and the state's portfolio of equity
positions and other investments in connection with awards from that
fund in accordance with Section 490.104, Government Code, as added
by this Act. The Texas emerging technology fund is abolished and
Sections 490.101(a), (b), and (b-1), Government Code, are repealed
when the comptroller certifies to the governor as provided by
Section 490.104, Government Code, as added by this Act, that the
final liquidation of the state's portfolio of equity positions and
other investments by the Texas Treasury Safekeeping Trust Company
has been completed.
(a-1) On or after the effective date of this Act, any
unencumbered balance of the Texas emerging technology fund may be
appropriated only to one or more of the following:
(1) the Texas Research Incentive Program (TRIP) under
Subchapter F, Chapter 62, Education Code;
(2) the Texas research university fund, subject to
Subsection (b) of this section;
(3) the Texas Enterprise Fund established under
Section 481.078, Government Code; and
(4) the comptroller for the purposes of managing the
state's portfolio of equity positions and other investments in
connection with awards from the Texas emerging technology fund in
accordance with Section 490.104, Government Code, as added by this
Act.
(b) The authority of the Texas research university fund to
receive the appropriation described by Subsection (a-1) of this
section is contingent on passage and enactment of H.B. 1000, or
similar legislation relating to state support for general academic
teaching institutions in this state by the 84th Legislature,
Regular Session, 2015, that renames the existing Texas competitive
knowledge fund and changes the purposes for which the fund can be
used.
(c) On or after the effective date of this Act, the
following payments or other amounts shall be deposited to the
credit of the Texas emerging technology fund to be used by the Texas
Treasury Safekeeping Trust Company solely for the purposes of
winding up the state's portfolio of equity positions and other
investments as provided by Sections 490.101(b-1) and 490.104,
Government Code, as added by this Act:
(1) any royalties, revenues, and other financial
benefits realized from a project undertaken with money from the
Texas emerging technology fund, as provided by a contract described
by Section 490.103, Government Code;
(2) any interest or proceeds received as a result of a
transaction authorized by former Section 490.101(h), Government
Code;
(3) any money returned or repaid to the state by an
award recipient pursuant to an agreement entered into under former
Section 490.101(g), Government Code;
(4) any money derived from an interest the state
retained in a capital improvement pursuant to an agreement entered
into under former Section 490.101(g), Government Code; and
(5) any fund money returned by an entity that fails to
perform an action guaranteed by a contract entered into under
former Section 490.154 or 490.203, Government Code.
(d) The abolishment by this Act of the Texas emerging
technology fund and the repeal of provisions of Chapter 490,
Government Code, relating to that fund do 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.
(e) Money from the Texas emerging technology fund that is
encumbered because the money is awarded or otherwise obligated by
agreement before September 1, 2015, but under the terms of the award
or agreement will not be distributed before that date shall be
distributed from the Texas emerging technology fund in accordance
with the terms of the agreement, unless the award recipient and the
governor agree otherwise.
(f) 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.
(g) Except as provided by this Act, 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 the Texas emerging technology fund before
September 1, 2015; and
(2) all powers, duties, functions, and activities
related to other investments made by the governor, on behalf of the
state, in connection with an award made under the Texas emerging
technology fund before September 1, 2015.
(h) Notwithstanding the repeal by this Act of provisions of
Chapter 490, Government Code, those provisions of Chapter 490 are
continued in effect for the limited purpose of winding up 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
490.104, Government Code, as added by this Act.
SECTION 6. This Act takes effect September 1, 2015.