88R8954 MLH-D
By: Springer, et al. S.B. No. 1940
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Economic
Development and Tourism Office.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.003, Government Code, is amended to
read as follows:
Sec. 481.003. SUNSET PROVISION. The Texas Economic
Development and Tourism Office is subject to Chapter 325 (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the office is abolished [and this chapter expires]
September 1, 2035 [2023].
SECTION 2. Section 481.0066(d), Government Code, is amended
to read as follows:
(d) The aerospace and aviation office shall:
(1) analyze space-related and aviation-related
research currently conducted in this state and may conduct
activities designed to further that research;
(2) analyze the state's economic position in the
aerospace and aviation industries;
(3) develop short-term and long-term business
strategies as part of an industry-specific strategic plan to
promote the retention, development, and expansion of aerospace and
aviation industry facilities in the state that is consistent with
and complementary of the office strategic plan;
(4) [make specific recommendations to the legislature
and the governor regarding the promotion of those industries;
[(5)] as part of and to further the purposes of the
industry-specific strategic plan described by Subdivision (3),
develop short-term and long-term policy initiatives or recommend
reforms the state may undertake or implement to:
(A) increase investment in aerospace and
aviation activities;
(B) support the retention, development, and
expansion of spaceports in this state;
(C) identify and encourage educational,
economic, and defense-related opportunities for aerospace and
aviation activities;
(D) determine the appropriate level of funding
for the spaceport trust fund created under Section 481.0069 and
support ongoing projects that have been assisted by the fund,
including recommending to the legislature an appropriate funding
level for the fund;
(E) partner with the Texas Higher Education
Coordinating Board to foster technological advancement and
economic development for spaceport activities by strengthening
higher education programs and supporting aerospace activities; and
(F) partner with the Texas Workforce Commission
to support initiatives that address the high technology skills and
staff resources needed to better promote the state's efforts in
becoming the leading space exploration state in the nation;
(5) [(6)] act as a liaison with other state and
federal entities with related economic, educational, and defense
responsibilities to support the marketing of the state's aerospace
and aviation capabilities;
(6) [(7)] provide technical support and expertise to
the state and to local spaceport authorities regarding aerospace
and aviation business matters; and
(7) [(8)] be responsible for the promotion and
development of spaceports in this state.
SECTION 3. Section 481.00681, Government Code, is amended
by adding Subsection (i) to read as follows:
(i) Chapter 2110 does not apply to the size, composition, or
duration of the task force.
SECTION 4. Subchapter B, Chapter 481, Government Code, is
amended by adding Section 481.0211 to read as follows:
Sec. 481.0211. ADVISORY COMMITTEES. (a) The office by rule
may establish advisory committees to make recommendations to the
office on programs, rules, and policies administered by the office.
(b) In establishing an advisory committee under this
section, the office shall adopt rules, including rules regarding:
(1) the purpose, role, responsibility, goals, and
duration of the committee;
(2) the size of and quorum requirement for the
committee;
(3) qualifications for committee membership;
(4) appointment procedures for members;
(5) terms of service for members;
(6) training requirements for members;
(7) policies to avoid conflicts of interest by
committee members;
(8) a periodic review process to evaluate the
continuing need for the committee; and
(9) policies to ensure the committee does not violate
any provisions of Chapter 551 applicable to the office or the
committee.
SECTION 5. Section 481.022, Government Code, is amended to
read as follows:
Sec. 481.022. GENERAL DUTIES OF OFFICE. The office shall:
(1) market and promote the state as a premier business
location and tourist destination;
(2) facilitate the location, expansion, and retention
of domestic and international business investment to the state;
(3) promote and administer business and community
economic development programs and services in the state, including
business incentive programs;
(4) provide to businesses and communities in the state
assistance with exporting products and services to international
markets;
(5) serve as a central source of economic research and
information; [and]
(6) establish a statewide strategy to address economic
growth and quality of life issues, a component of which is based on
the identification and development of industry clusters; and
(7) develop a plan to engage with stakeholders to
gather input and solicit feedback on the development of rules
promulgated by the office related to lending programs, including
participant selection, requirements for borrowers, terms of loans,
requirements for disbursement of funds, and other aspects of
program administration.
SECTION 6. Section 481.172, Government Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) A memorandum of understanding entered into under
Subsection (a)(8) shall provide that the office may:
(1) strategically direct and redirect each agency's
tourism priorities and activities to:
(A) most effectively meet consumer demands and
emerging travel trends, as established by the latest market
research; and
(B) minimize duplication of efforts and realize
cost savings through economies of scale;
(2) require each agency to submit to the office for
advance approval:
(A) resources, activities, and materials related
to the promotion of tourism proposed to be provided by the agency;
(B) a biennial plan of action for the agency's
proposed tourism activities [, not later than June 1 of each year,]
that includes:
(i) priorities identified by the agency
that must include marketing, product development, and program
development;
(ii) the agency's proposed budget for
tourism activities; and
(iii) measurable goals and objectives of
the agency related to the promotion of tourism; and
(C) any proposed marketing message, material,
logo, slogan, or other communication to be used by the agency in its
tourism-related efforts, to assist the office in coordinating
tourism-related efforts conducted in this state by the agency and
the office and conducted outside of this state by the office;
(3) direct the development of a biennial [an annual]
strategic tourism plan, including a marketing plan, to increase
travel to this state, that:
(A) provides the most effective and efficient
expenditure of state funds for in-state marketing activities
conducted by the agencies and encouraged by the office and
out-of-state marketing activities conducted by the office;
(B) establishes goals, objectives, and
performance measures, including the measurement of the return on
the investment made by an agency or the office, for the
tourism-related efforts of all state agencies; and
(C) is developed not later than December
[September] 1 of each even-numbered year; and
(4) direct the agencies to share costs related to
administrative support for the state's tourism activities.
(b-1) The office may, using the input of each agency that is
a party to a memorandum of understanding under Subsection (a)(8),
establish procedures for the submission of the plan required under
Subsection (b)(2)(B).
SECTION 7. Section 481.406, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) The office shall by rule develop:
(1) procedures for disbursement of money to borrowers
and lending partners for access to capital programs; and
(2) documentation and recovery effort requirements of
a participating partner for a claim against a reserve account.
SECTION 8. Section 489.105(b), Government Code, is amended
to read as follows:
(b) The fund consists of:
(1) appropriations for the implementation and
administration of this chapter;
(2) [investment earnings under the original capital
access fund established under Section 481.402;
[(3)] fees charged under Subchapter BB, Chapter 481;
(3) [(4)] interest earned on the investment of money
in the fund;
(4) [(5)] fees charged under this chapter;
(5) [(6)] investment earnings from the programs
administered by the bank;
(6) [(7)] amounts transferred under Section
2303.504(b), as amended by Article 2, Chapter 1134, Acts of the 77th
Legislature, Regular Session, 2001; and
(7) [(8) investment earnings under the Texas product
development fund under Section 489.211;
[(9) investment earnings under the Texas small
business incubator fund under Section 489.212; and
[(10)] any other amounts received by the state under
this chapter.
SECTION 9. Section 489.107, Government Code, is amended to
read as follows:
Sec. 489.107. ANNUAL REPORT. (a) On or before January 1 of
each year, the office shall submit to the legislature an annual
status report on the activities of the bank.
(b) The report under Subsection (a) must include for each
program administered by the office:
(1) the number of grants, loans, and designations
awarded in the previous fiscal year;
(2) the total number of grants, loans, and
designations awarded by the bank;
(3) the amount in dollars of all grants, loans, and
designations described by Subdivisions (1) and (2);
(4) the number of applications received in the
previous fiscal year;
(5) the number of outstanding loans and designations;
(6) a summary of each outstanding loan and
designation, including the amount outstanding and the terms of the
loan or designation;
(7) the balance of each program's fund and any reserve
account; and
(8) any challenges in administering each program,
including any proposals for statutory changes that would address
the challenges.
(c) For the small business disaster recovery loan program,
the report must include a general description of each small
business for which an applicant was awarded a loan from the fund
during the preceding fiscal year.
(d) In preparing the report under Subsection (a), the office
shall remove any identifying information pertaining to program
participants.
SECTION 10. Chapter 489, Government Code, is amended by
adding Subchapter D-1 to read as follows:
SUBCHAPTER D-1. WINDING UP OF PRODUCT DEVELOPMENT AND SMALL
BUSINESS INCUBATOR PROGRAM
Sec. 489.221. MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
UP AND FINAL LIQUIDATION. (a) In this section, "product
development and small business incubator investment portfolio"
means:
(1) the equity positions in the form of stock or other
security the bank took, on behalf of the state, in companies that
received awards under the product development and small business
incubator program; and
(2) any other investments made by the bank, on behalf
of the state, and associated assets in connection with an award made
under the product development and small business incubator program.
(b) The bank shall manage and wind up the product
development and small business incubator investment portfolio,
including revenues from loans and loan defaults, in a manner that,
to the extent feasible, provides for the maximum return on the
state's investment. In managing those investments and associated
assets through procedures and subject to restrictions that the bank
considers appropriate, the bank may acquire, exchange, sell,
supervise, manage, or retain any kind of investment or associated
assets 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 or associated asset. The
bank may recover its reasonable and necessary costs incurred in the
management of the portfolio, including costs incurred in the
retaining of professional or technical advisors, from the earnings
on the investments in the portfolio.
(c) The bank has any power necessary to accomplish the
purposes of this section.
SECTION 11. The following provisions of the Government Code
are repealed:
(1) Sections 481.0066(d-1), (d-2), (e), (e-1), and
(e-2);
(2) Section 481.401(6-a);
(3) Sections 481.406(b) and (c);
(4) Sections 481.402, 481.404, 481.405, 481.407,
481.408, 481.409, 481.410, 481.412(a), 481.415, 481.458, 481.609,
and 489.307; and
(5) Sections 489.201, 489.202, 489.203, 489.204,
489.205, 489.206, 489.207, 489.208, 489.209, 489.210, 489.213,
489.214, 489.215, 489.216, and 489.217.
SECTION 12. Not later than December 1, 2024, the Texas
Economic Development and Tourism Office shall submit the first
biennial strategic tourism plan required by Section 481.172(b)(3),
Government Code, as amended by this Act.
SECTION 13. This Act takes effect September 1, 2023.