88R4024 MLH-D
By: Button H.B. No. 2466
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a grant matching program for the federal
small business innovation research and small business technology
transfer programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 489, Government Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS
TECHNOLOGY TRANSFER GRANT MATCHING PROGRAM
Sec. 489.351. DEFINITIONS. In this subchapter:
(1) "Federal funding program" means the small business
innovation research and small business technology transfer
programs established by 15 U.S.C. Section 638.
(2) "Grant matching program" means the small business
innovation research and small business technology transfer grant
matching program established under this subchapter.
Sec. 489.352. ESTABLISHMENT AND ADMINISTRATION OF GRANT
MATCHING PROGRAM. The office shall establish and administer the
small business innovation research and small business technology
transfer grant matching program to foster job creation and economic
development in this state by matching or supplementing money
received by a business entity through the federal funding program.
Sec. 489.353. ELIGIBILITY. To be eligible to receive money
under the grant matching program, a business entity must:
(1) be organized under the laws of this state;
(2) meet all requirements to receive money under the
federal funding program;
(3) not receive concurrent funding from another state
program or fund that serves the same purpose as the grant matching
program; and
(4) meet any additional requirements under this
subchapter for the applicable phase under which the business entity
applies to receive money.
Sec. 489.354. APPLICATION. (a) A business entity may apply
to receive money under the grant matching program by submitting an
application under oath to the office on a form prescribed by the
office. The application must include:
(1) the business entity's name;
(2) the business entity's business organization
structure;
(3) the business entity's address and any principals
listed at a different address;
(4) certification of the information required under
Section 489.353; and
(5) any other information required by the office.
(b) In addition to the requirements of Subsection (a), a
business entity must provide to the office, as applicable:
(1) for "phase zero" or a similar stage of the federal
funding program process, a notification of receipt for an
application for funding under the federal funding program;
(2) for "phase one" or a similar stage of the federal
funding program process:
(A) a notice of award to the entity from a funding
agency under the federal funding program;
(B) a final report for the applicable stage as
required by the federal funding program; and
(C) a proposal for money under the next stage of
the federal funding program; and
(3) for "phase two" or a similar stage of the federal
funding program process:
(A) a notice of award to the entity from a funding
agency under the federal funding program; and
(B) a final report for the applicable stage as
required by the federal funding program.
Sec. 489.355. AWARD OF GRANT; LIMITATIONS. (a) The office
may award a "phase zero" grant under this subchapter of not more
than $2,500 immediately on fulfillment of the requirements under
Section 489.354(b)(1). A business entity may not receive more than
five grants under this subsection.
(b) The office may award a "phase one" grant under this
subchapter of not more than $100,000, with 50 percent of the money
to be awarded on receipt of the notice of an award described by
Section 489.354(b)(2)(A) and 50 percent of the money to be awarded
on receipt of the proposal described by Section 489.354(b)(2)(C). A
business entity may only receive one grant under this subsection in
a single fiscal year. A business entity may not receive more than
five grants under this subsection.
(c) The office may award a "phase two" grant under this
subchapter of not more than $100,000 each year for not more than two
years. Disbursement for the first year of the award must occur
immediately on fulfillment of the requirements under Section
489.354(b)(3). Disbursement for the second year of the award may
occur on the anniversary of the first disbursement if the business
entity provides certification to the office that the entity will
continue to receive funding under the federal funding program for a
second year. A business entity may only receive one grant under this
subsection in a single fiscal year. A business entity may not
receive more than five grants under this subsection.
(d) A business entity may assign a grant received under this
subchapter only with the prior written consent of the office.
Sec. 489.356. FUNDING. The office shall award grants as
provided by this subchapter from available money and any additional
money appropriated for purposes of this subchapter.
SECTION 2. As soon as practicable after the effective date
of this Act, the Texas Economic Development and Tourism Office
shall adopt the rules necessary to implement Subchapter G, Chapter
489, Government Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2023.