Texas 2023 - 88th Regular

Texas House Bill HB1515 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 1515
2	2
3	3
4	4	AN ACT
5	5	relating to the continuation and functions of and certain programs
6	6	subject to rules adopted by the Texas Economic Development and
7	7	Tourism Office.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 481.003, Government Code, is amended to
10	10	read as follows:
11	11	Sec. 481.003. SUNSET PROVISION. The Texas Economic
12	12	Development and Tourism Office is subject to Chapter 325 (Texas
13	13	Sunset Act). Unless continued in existence as provided by that
14	14	chapter, the office is abolished [and this chapter expires]
15	15	September 1, 2035 [2023].
16	16	SECTION 2. Section 481.0066, Government Code, is amended by
17	17	amending Subsection (d) and adding Subsection (f) to read as
18	18	follows:
19	19	(d) The aerospace and aviation office shall:
20	20	(1) analyze space-related and aviation-related
21	21	research currently conducted in this state and may conduct
22	22	activities designed to further that research;
23	23	(2) analyze the state's economic position in the
24	24	aerospace and aviation industries;
25	25	(3) develop short-term and long-term business
26	26	strategies as part of an industry-specific strategic plan to
27	27	promote the retention, development, and expansion of aerospace and
28	28	aviation industry facilities in the state that is consistent with
29	29	and complementary of the office strategic plan;
30	30	(4) [make specific recommendations to the legislature
31	31	and the governor regarding the promotion of those industries;
32	32	[(5)] as part of and to further the purposes of the
33	33	industry-specific strategic plan described by Subdivision (3),
34	34	develop short-term and long-term policy initiatives or recommend
35	35	reforms the state may undertake or implement to:
36	36	(A) increase investment in aerospace and
37	37	aviation activities;
38	38	(B) support the retention, development, and
39	39	expansion of spaceports in this state;
40	40	(C) identify and encourage educational,
41	41	economic, and defense-related opportunities for aerospace and
42	42	aviation activities;
43	43	(D) determine the appropriate level of funding
44	44	for the spaceport trust fund created under Section 481.0069 and
45	45	support ongoing projects that have been assisted by the fund,
46	46	including recommending to the legislature an appropriate funding
47	47	level for the fund;
48	48	(E) partner with the Texas Higher Education
49	49	Coordinating Board to foster technological advancement and
50	50	economic development for spaceport activities by strengthening
51	51	higher education programs and supporting aerospace activities; and
52	52	(F) partner with the Texas Workforce Commission
53	53	to support initiatives that address the high technology skills and
54	54	staff resources needed to better promote the state's efforts in
55	55	becoming the leading space exploration state in the nation;
56	56	(5) [(6)] act as a liaison with other state and
57	57	federal entities with related economic, educational, and defense
58	58	responsibilities to support the marketing of the state's aerospace
59	59	and aviation capabilities;
60	60	(6) [(7)] provide technical support and expertise to
61	61	the state and to local spaceport authorities regarding aerospace
62	62	and aviation business matters; and
63	63	(7) [(8)] be responsible for the promotion and
64	64	development of spaceports in this state.
65	65	(f) Chapter 2110 does not apply to the size, composition, or
66	66	duration of the aerospace and aviation advisory committee.
67	67	SECTION 3. Section 481.00681, Government Code, is amended
68	68	by adding Subsection (i) to read as follows:
69	69	(i) Chapter 2110 does not apply to the size, composition, or
70	70	duration of the task force.
71	71	SECTION 4. Subchapter B, Chapter 481, Government Code, is
72	72	amended by adding Section 481.0211 to read as follows:
73	73	Sec. 481.0211. ADVISORY COMMITTEES. (a) The office by rule
74	74	may establish advisory committees to make recommendations to the
75	75	office on programs, rules, and policies administered by the office.
76	76	(b) In establishing an advisory committee under this
77	77	section, the office shall adopt rules, including rules regarding:
78	78	(1) the purpose, role, responsibility, goals, and
79	79	duration of the committee;
80	80	(2) the size of and quorum requirement for the
81	81	committee;
82	82	(3) qualifications for committee membership;
83	83	(4) appointment procedures for members;
84	84	(5) terms of service for members;
85	85	(6) training requirements for members;
86	86	(7) policies to avoid conflicts of interest by
87	87	committee members;
88	88	(8) a periodic review process to evaluate the
89	89	continuing need for the committee; and
90	90	(9) policies to ensure the committee does not violate
91	91	any provisions of Chapter 551 applicable to the office or the
92	92	committee.
93	93	SECTION 5. Section 481.022, Government Code, is amended to
94	94	read as follows:
95	95	Sec. 481.022. GENERAL DUTIES OF OFFICE. The office shall:
96	96	(1) market and promote the state as a premier business
97	97	location and tourist destination;
98	98	(2) facilitate the location, expansion, and retention
99	99	of domestic and international business investment to the state;
100	100	(3) promote and administer business and community
101	101	economic development programs and services in the state, including
102	102	business incentive programs;
103	103	(4) provide to businesses and communities in the state
104	104	assistance with exporting products and services to international
105	105	markets;
106	106	(5) serve as a central source of economic research and
107	107	information; [and]
108	108	(6) establish a statewide strategy to address economic
109	109	growth and quality of life issues, a component of which is based on
110	110	the identification and development of industry clusters; and
111	111	(7) develop a plan to engage with stakeholders to
112	112	gather input and solicit feedback on the development of rules
113	113	promulgated by the office related to lending programs, including
114	114	participant selection, requirements for borrowers, terms of loans,
115	115	requirements for disbursement of funds, and other aspects of
116	116	program administration.
117	117	SECTION 6. Section 481.172, Government Code, is amended by
118	118	amending Subsection (b) and adding Subsection (b-1) to read as
119	119	follows:
120	120	(b) A memorandum of understanding entered into under
121	121	Subsection (a)(8) shall provide that the office may:
122	122	(1) strategically direct and redirect each agency's
123	123	tourism priorities and activities to:
124	124	(A) most effectively meet consumer demands and
125	125	emerging travel trends, as established by the latest market
126	126	research; and
127	127	(B) minimize duplication of efforts and realize
128	128	cost savings through economies of scale;
129	129	(2) require each agency to submit to the office for
130	130	advance approval:
131	131	(A) resources, activities, and materials related
132	132	to the promotion of tourism proposed to be provided by the agency;
133	133	(B) a biennial plan of action for the agency's
134	134	proposed tourism activities [, not later than June 1 of each year,]
135	135	that includes:
136	136	(i) priorities identified by the agency
137	137	that must include marketing, product development, and program
138	138	development;
139	139	(ii) the agency's proposed budget for
140	140	tourism activities; and
141	141	(iii) measurable goals and objectives of
142	142	the agency related to the promotion of tourism; and
143	143	(C) any proposed marketing message, material,
144	144	logo, slogan, or other communication to be used by the agency in its
145	145	tourism-related efforts, to assist the office in coordinating
146	146	tourism-related efforts conducted in this state by the agency and
147	147	the office and conducted outside of this state by the office;
148	148	(3) direct the development of a biennial [an annual]
149	149	strategic tourism plan, including a marketing plan, to increase
150	150	travel to this state, that:
151	151	(A) provides the most effective and efficient
152	152	expenditure of state funds for in-state marketing activities
153	153	conducted by the agencies and encouraged by the office and
154	154	out-of-state marketing activities conducted by the office;
155	155	(B) establishes goals, objectives, and
156	156	performance measures, including the measurement of the return on
157	157	the investment made by an agency or the office, for the
158	158	tourism-related efforts of all state agencies; and
159	159	(C) is developed not later than December
160	160	[September] 1 of each even-numbered year; and
161	161	(4) direct the agencies to share costs related to
162	162	administrative support for the state's tourism activities.
163	163	(b-1) The office may, using the input of each agency that is
164	164	a party to a memorandum of understanding under Subsection (a)(8),
165	165	establish procedures for the submission of the plan required under
166	166	Subsection (b)(2)(B).
167	167	SECTION 7. Section 481.406, Government Code, is amended by
168	168	adding Subsection (d) to read as follows:
169	169	(d) The office shall by rule develop:
170	170	(1) procedures for disbursement of money to borrowers
171	171	and lending partners for access to capital programs; and
172	172	(2) documentation and recovery effort requirements of
173	173	a participating partner for a claim against a reserve account.
174	174	SECTION 8. Section 489.105(b), Government Code, is amended
175	175	to read as follows:
176	176	(b) The fund consists of:
177	177	(1) appropriations for the implementation and
178	178	administration of this chapter;
179	179	(2) [investment earnings under the original capital
180	180	access fund established under Section 481.402;
181	181	[(3)] fees charged under Subchapter BB, Chapter 481;
182	182	(3) [(4)] interest earned on the investment of money
183	183	in the fund;
184	184	(4) [(5)] fees charged under this chapter;
185	185	(5) [(6)] investment earnings from the programs
186	186	administered by the bank;
187	187	(6) [(7)] amounts transferred under Section
188	188	2303.504(b)[, as amended by Article 2, Chapter 1134, Acts of the
189	189	77th Legislature, Regular Session, 2001];
190	190	(7) [(8)] investment earnings under the Texas product
191	191	development fund under Section 489.211;
192	192	(8) [(9)] investment earnings under the Texas small
193	193	business incubator fund under Section 489.212; and
194	194	(9) [(10)] any other amounts received by the state
195	195	under this chapter.
196	196	SECTION 9. Section 489.107, Government Code, is amended to
197	197	read as follows:
198	198	Sec. 489.107. ANNUAL REPORT. (a) On or before January 1 of
199	199	each year, the office shall submit to the legislature an annual
200	200	status report on the activities of the bank.
201	201	(b) The report under Subsection (a) must include for each
202	202	program administered by the office:
203	203	(1) the number of grants, loans, and designations
204	204	awarded in the previous fiscal year;
205	205	(2) the total number of grants, loans, and
206	206	designations awarded by the bank;
207	207	(3) the amount in dollars of all grants, loans, and
208	208	designations described by Subdivisions (1) and (2);
209	209	(4) the number of applications received in the
210	210	previous fiscal year;
211	211	(5) the number of outstanding loans and designations;
212	212	(6) a summary of each outstanding loan and
213	213	designation, including the amount outstanding and the terms of the
214	214	loan or designation;
215	215	(7) the balance of each program's fund and any reserve
216	216	account; and
217	217	(8) any challenges in administering each program,
218	218	including any proposals for statutory changes that would address
219	219	the challenges.
220	220	(c) For the small business disaster recovery loan program,
221	221	the report must include a general description of each small
222	222	business for which an applicant was awarded a loan from the fund
223	223	during the preceding fiscal year.
224	224	(d) In preparing the report under Subsection (a), the office
225	225	shall remove any identifying information pertaining to program
226	226	participants.
227	227	SECTION 10. Sections 489.211(a) and (b), Government Code,
228	228	are amended to read as follows:
229	229	(a) The Texas product development fund is a [revolving] fund
230	230	in the state treasury.
231	231	(b) The product fund is composed of proceeds of bonds issued
232	232	under this subchapter, financing application fees, loan
233	233	repayments, guarantee fees, royalty receipts, dividend income,
234	234	money appropriated by the legislature for authorized purposes of
235	235	the product fund, amounts received by the state from loans, loan
236	236	guarantees, and equity investments made under this subchapter,
237	237	amounts received by the state from federal grants or other sources,
238	238	[amounts transferred from the original capital access fund under
239	239	Section 481.415,] and any other amounts received under this
240	240	subchapter and required by the bank to be deposited in the product
241	241	fund. The product fund contains a program account, an interest and
242	242	sinking account, and other accounts that the bank authorizes to be
243	243	created and maintained. Money in the product fund is available for
244	244	use by the bank [board] under this subchapter. Investment earnings
245	245	under the product fund must be transferred to the fund created under
246	246	Section 489.105. Notwithstanding any other provision of this
247	247	subchapter, any money in the product fund may be used for debt
248	248	service, bond redemption, or any costs associated with debt service
249	249	or bond redemption.
250	250	SECTION 11. Sections 489.212(a) and (b), Government Code,
251	251	are amended to read as follows:
252	252	(a) The Texas small business incubator fund is a [revolving]
253	253	fund in the state treasury.
254	254	(b) The small business fund is composed of proceeds of bonds
255	255	issued under this subchapter, financing application fees, loan
256	256	repayments, guarantee fees, royalty receipts, dividend income,
257	257	money appropriated by the legislature for authorized purposes of
258	258	the small business fund, amounts received by the state from loans,
259	259	loan guarantees, and equity investments made under this subchapter,
260	260	amounts received by the state from federal grants or other sources,
261	261	[amounts transferred from the original capital access fund under
262	262	Section 481.415,] and any other amounts received under this
263	263	subchapter and required by the bank to be deposited in the small
264	264	business fund. The small business fund contains a project account,
265	265	an interest and sinking account, and other accounts that the bank
266	266	authorizes to be created and maintained. Money in the small
267	267	business fund is available for use by the bank [board] under this
268	268	subchapter. Investment earnings under the small business fund
269	269	must be transferred to the fund created under Section
270	270	489.105. Notwithstanding any other provision of this subchapter,
271	271	any money in the small business fund may be used for debt service,
272	272	bond redemption, or any costs associated with debt service or bond
273	273	redemption.
274	274	SECTION 12. Section 489.215(b), Government Code, is amended
275	275	to read as follows:
276	276	(b) This section applies to information in any form provided
277	277	by or on behalf of an applicant for financing or a recipient of
278	278	financing under this subchapter, including information contained
279	279	in, accompanying, or derived from any application or report, that
280	280	relates to a product, to the development, application, manufacture,
281	281	or use of a product, or to the markets, market prospects, or
282	282	marketing of a product and that is proprietary information of
283	283	actual or potential commercial value to the applicant or recipient
284	284	that has not been disclosed to the public. Confidential
285	285	information includes scientific and technological information,
286	286	including computer programs and software, and marketing and
287	287	business operation information, regardless of whether the product
288	288	to which the information relates is patentable or capable of being
289	289	registered under copyright or trademark laws or has a potential for
290	290	being sold, traded, or licensed for a fee. This section does not
291	291	make confidential information in an account, voucher, or contract
292	292	relating to the receipt or expenditure of public funds by the bank,
293	293	board, or the department or its successor under this subchapter.
294	294	This section applies to any information collected in winding up the
295	295	product development and small business incubator program
296	296	investment portfolio under Subchapter D-1.
297	297	SECTION 13. Chapter 489, Government Code, is amended by
298	298	adding Subchapter D-1 to read as follows:
299	299	SUBCHAPTER D-1. WINDING UP OF PRODUCT DEVELOPMENT AND SMALL
300	300	BUSINESS INCUBATOR PROGRAM
301	301	Sec. 489.221. MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
302	302	UP AND FINAL LIQUIDATION. (a) In this section, "product
303	303	development and small business incubator program investment
304	304	portfolio" means:
305	305	(1) the equity positions in the form of stock or other
306	306	security the bank took, on behalf of the state, in companies that
307	307	received financing under the product development and small business
308	308	incubator program; and
309	309	(2) any other investments made by the bank, on behalf
310	310	of the state, and associated assets in connection with financing
311	311	made under the product development and small business incubator
312	312	program.
313	313	(b) The bank shall manage and wind up the product
314	314	development and small business incubator program investment
315	315	portfolio, including revenues and associated assets from financing
316	316	and defaults on financing, in a manner that, to the extent feasible,
317	317	provides for the maximum return on the state's investment. In
318	318	managing those investments and associated assets through
319	319	procedures and subject to restrictions that the bank considers
320	320	appropriate, the bank may acquire, exchange, sell, supervise,
321	321	manage, or retain any kind of investment or associated assets that a
322	322	prudent investor, exercising reasonable care, skill, and caution,
323	323	would acquire or retain in light of the purposes, terms,
324	324	distribution requirements, and other circumstances then prevailing
325	325	pertinent to each investment or associated asset. The bank may
326	326	recover its reasonable and necessary costs incurred in the
327	327	management of the portfolio, including costs incurred in the
328	328	retaining of professional or technical advisors, from the earnings
329	329	on the investments in the portfolio.
330	330	(c) On completion of the winding up process under Subsection
331	331	(b), the bank shall deposit any remaining investment earnings to
332	332	the credit of the Texas economic development bank fund, as required
333	333	under Sections 489.211 and 489.212.
334	334	(d) The bank has any power necessary to accomplish the
335	335	purposes of this section.
336	336	SECTION 14. Section 2303.003(7), Government Code, is
337	337	amended to read as follows:
338	338	(7) "Qualified employee" means a person who:
339	339	(A) is a resident of this state;
340	340	(B) works for a qualified business;
341	341	(C) [(B)] receives wages from the qualified
342	342	business from which employment taxes are deducted; and
343	343	(D) meets one of the following qualifications:
344	344	(i) the person [(C)] performs at least 50
345	345	percent of the person's service for the business at the qualified
346	346	business site;
347	347	(ii) [, or] if the person engages in the
348	348	transportation of goods or services, the person reports to the
349	349	qualified business site and resides within 50 miles of the
350	350	qualified business site; or
351	351	(iii) if the person engages in services
352	352	off-site, the person is assigned to the qualified business site and
353	353	resides within 25 miles of the qualified business site.
354	354	SECTION 15. Section 2303.4052, Government Code, is amended
355	355	to read as follows:
356	356	Sec. 2303.4052. REQUIRED INFORMATION FROM NOMINATING BODY.
357	357	(a) Before nominating the project or activity of a qualified
358	358	business for designation as an enterprise project, the nominating
359	359	body must submit to the bank:
360	360	(1) a certified copy of the ordinance or order, as
361	361	appropriate, or reference to an ordinance or order as required by
362	362	Section 2303.4051;
363	363	(2) a certified copy of the minutes of all public
364	364	hearings conducted with respect to local incentives available to
365	365	qualified businesses within the jurisdiction of the governmental
366	366	entity nominating the project or activity, regardless of whether
367	367	those businesses are located in an enterprise zone;
368	368	(3) the name, title, address, telephone number, and
369	369	electronic mail address of the nominating body's liaison designated
370	370	under Section 2303.204;
371	371	(4) if the business is seeking job retention benefits,
372	372	documentation showing the number of employment positions at the
373	373	qualified business site;
374	374	(5) any interlocal agreement required under Section
375	375	2303.004(c) that states:
376	376	(A) which governing body has the administration
377	377	authority under Section 2303.201; and
378	378	(B) that both the county in which the project or
379	379	activity is located and the municipality in whose jurisdiction the
380	380	project or activity is located approve the nomination of the
381	381	project or activity; and
382	382	(6) any additional information the bank may require.
383	383	(b) The nominating body may electronically submit in a
384	384	manner prescribed by the bank a digital scan of a certified copy of
385	385	the documentation required by Subsections (a)(1) and (2).
386	386	SECTION 16. The following provisions of the Government Code
387	387	are repealed:
388	388	(1) Sections 481.0066(d-1) and (d-2);
389	389	(2) Section 481.401(6-a);
390	390	(3) Sections 481.406(b) and (c);
391	391	(4) Sections 481.402, 481.404, 481.405, 481.407,
392	392	481.408, 481.409, 481.410, 481.412(a), 481.415, 481.458, 481.609,
393	393	and 489.307; and
394	394	(5) Sections 489.201, 489.202, 489.203, 489.204,
395	395	489.205, 489.206, 489.207, 489.208, 489.209, 489.210, 489.211(c),
396	396	489.212(c), 489.213, 489.214, 489.215(c), 489.216, and 489.217.
397	397	SECTION 17. Not later than December 1, 2024, the Texas
398	398	Economic Development and Tourism Office shall submit the first
399	399	biennial strategic tourism plan required by Section 481.172(b)(3),
400	400	Government Code, as amended by this Act.
401	401	SECTION 18. A member of an advisory committee repealed by
402	402	this Act may be reappointed to serve as a member of a new advisory
403	403	committee established under Section 481.0211, Government Code, as
404	404	added by this Act.
405	405	SECTION 19. (a) Except as provided by Subsection (b) of
406	406	this section, Section 2303.003, Government Code, as amended by this
407	407	Act, applies to an application for an enterprise project
408	408	designation under the enterprise zone program under Chapter 2303,
409	409	Government Code, as amended by this Act, that is submitted on or
410	410	after the effective date of this Act. An application for an
411	411	enterprise project designation under the enterprise zone program
412	412	that is submitted before the effective date of this Act is governed
413	413	by the law in effect on the date the application was submitted, and
414	414	the former law is continued in effect for that purpose.
415	415	(b) Section 2303.003(7)(D), Government Code, as added by
416	416	this Act, applies to an enterprise project that is under audit or
417	417	subject to audit by the comptroller of public accounts on or after
418	418	the effective date of this Act.
419	419	SECTION 20. This Act takes effect September 1, 2023.
420	420	______________________________ ______________________________
421	421	President of the Senate Speaker of the House
422	422	I certify that H.B. No. 1515 was passed by the House on April
423	423	14, 2023, by the following vote: Yeas 132, Nays 12, 1 present, not
424	424	voting; and that the House concurred in Senate amendments to H.B.
425	425	No. 1515 on May 25, 2023, by the following vote: Yeas 121, Nays 21,
426	426	2 present, not voting.
427	427	______________________________
428	428	Chief Clerk of the House
429	429	I certify that H.B. No. 1515 was passed by the Senate, with
430	430	amendments, on May 17, 2023, by the following vote: Yeas 28, Nays
431	431	3.
432	432	______________________________
433	433	Secretary of the Senate
434	434	APPROVED: __________________
435	435	Date
436	436	__________________
437	437	Governor