Texas 2023 - 88th Regular

Texas Senate Bill SB1940 Compare Versions

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1	1	88R8954 MLH-D
2	2	By: Springer, et al. S.B. No. 1940
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the Texas Economic
8	8	Development and Tourism Office.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 481.003, Government Code, is amended to
11	11	read as follows:
12	12	Sec. 481.003. SUNSET PROVISION. The Texas Economic
13	13	Development and Tourism Office is subject to Chapter 325 (Texas
14	14	Sunset Act). Unless continued in existence as provided by that
15	15	chapter, the office is abolished [and this chapter expires]
16	16	September 1, 2035 [2023].
17	17	SECTION 2. Section 481.0066(d), Government Code, is amended
18	18	to read as 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	SECTION 3. Section 481.00681, Government Code, is amended
66	66	by adding Subsection (i) to read as follows:
67	67	(i) Chapter 2110 does not apply to the size, composition, or
68	68	duration of the task force.
69	69	SECTION 4. Subchapter B, Chapter 481, Government Code, is
70	70	amended by adding Section 481.0211 to read as follows:
71	71	Sec. 481.0211. ADVISORY COMMITTEES. (a) The office by rule
72	72	may establish advisory committees to make recommendations to the
73	73	office on programs, rules, and policies administered by the office.
74	74	(b) In establishing an advisory committee under this
75	75	section, the office shall adopt rules, including rules regarding:
76	76	(1) the purpose, role, responsibility, goals, and
77	77	duration of the committee;
78	78	(2) the size of and quorum requirement for the
79	79	committee;
80	80	(3) qualifications for committee membership;
81	81	(4) appointment procedures for members;
82	82	(5) terms of service for members;
83	83	(6) training requirements for members;
84	84	(7) policies to avoid conflicts of interest by
85	85	committee members;
86	86	(8) a periodic review process to evaluate the
87	87	continuing need for the committee; and
88	88	(9) policies to ensure the committee does not violate
89	89	any provisions of Chapter 551 applicable to the office or the
90	90	committee.
91	91	SECTION 5. Section 481.022, Government Code, is amended to
92	92	read as follows:
93	93	Sec. 481.022. GENERAL DUTIES OF OFFICE. The office shall:
94	94	(1) market and promote the state as a premier business
95	95	location and tourist destination;
96	96	(2) facilitate the location, expansion, and retention
97	97	of domestic and international business investment to the state;
98	98	(3) promote and administer business and community
99	99	economic development programs and services in the state, including
100	100	business incentive programs;
101	101	(4) provide to businesses and communities in the state
102	102	assistance with exporting products and services to international
103	103	markets;
104	104	(5) serve as a central source of economic research and
105	105	information; [and]
106	106	(6) establish a statewide strategy to address economic
107	107	growth and quality of life issues, a component of which is based on
108	108	the identification and development of industry clusters; and
109	109	(7) develop a plan to engage with stakeholders to
110	110	gather input and solicit feedback on the development of rules
111	111	promulgated by the office related to lending programs, including
112	112	participant selection, requirements for borrowers, terms of loans,
113	113	requirements for disbursement of funds, and other aspects of
114	114	program administration.
115	115	SECTION 6. Section 481.172, Government Code, is amended by
116	116	amending Subsection (b) and adding Subsection (b-1) to read as
117	117	follows:
118	118	(b) A memorandum of understanding entered into under
119	119	Subsection (a)(8) shall provide that the office may:
120	120	(1) strategically direct and redirect each agency's
121	121	tourism priorities and activities to:
122	122	(A) most effectively meet consumer demands and
123	123	emerging travel trends, as established by the latest market
124	124	research; and
125	125	(B) minimize duplication of efforts and realize
126	126	cost savings through economies of scale;
127	127	(2) require each agency to submit to the office for
128	128	advance approval:
129	129	(A) resources, activities, and materials related
130	130	to the promotion of tourism proposed to be provided by the agency;
131	131	(B) a biennial plan of action for the agency's
132	132	proposed tourism activities [, not later than June 1 of each year,]
133	133	that includes:
134	134	(i) priorities identified by the agency
135	135	that must include marketing, product development, and program
136	136	development;
137	137	(ii) the agency's proposed budget for
138	138	tourism activities; and
139	139	(iii) measurable goals and objectives of
140	140	the agency related to the promotion of tourism; and
141	141	(C) any proposed marketing message, material,
142	142	logo, slogan, or other communication to be used by the agency in its
143	143	tourism-related efforts, to assist the office in coordinating
144	144	tourism-related efforts conducted in this state by the agency and
145	145	the office and conducted outside of this state by the office;
146	146	(3) direct the development of a biennial [an annual]
147	147	strategic tourism plan, including a marketing plan, to increase
148	148	travel to this state, that:
149	149	(A) provides the most effective and efficient
150	150	expenditure of state funds for in-state marketing activities
151	151	conducted by the agencies and encouraged by the office and
152	152	out-of-state marketing activities conducted by the office;
153	153	(B) establishes goals, objectives, and
154	154	performance measures, including the measurement of the return on
155	155	the investment made by an agency or the office, for the
156	156	tourism-related efforts of all state agencies; and
157	157	(C) is developed not later than December
158	158	[September] 1 of each even-numbered year; and
159	159	(4) direct the agencies to share costs related to
160	160	administrative support for the state's tourism activities.
161	161	(b-1) The office may, using the input of each agency that is
162	162	a party to a memorandum of understanding under Subsection (a)(8),
163	163	establish procedures for the submission of the plan required under
164	164	Subsection (b)(2)(B).
165	165	SECTION 7. Section 481.406, Government Code, is amended by
166	166	adding Subsection (d) to read as follows:
167	167	(d) The office shall by rule develop:
168	168	(1) procedures for disbursement of money to borrowers
169	169	and lending partners for access to capital programs; and
170	170	(2) documentation and recovery effort requirements of
171	171	a participating partner for a claim against a reserve account.
172	172	SECTION 8. Section 489.105(b), Government Code, is amended
173	173	to read as follows:
174	174	(b) The fund consists of:
175	175	(1) appropriations for the implementation and
176	176	administration of this chapter;
177	177	(2) [investment earnings under the original capital
178	178	access fund established under Section 481.402;
179	179	[(3)] fees charged under Subchapter BB, Chapter 481;
180	180	(3) [(4)] interest earned on the investment of money
181	181	in the fund;
182	182	(4) [(5)] fees charged under this chapter;
183	183	(5) [(6)] investment earnings from the programs
184	184	administered by the bank;
185	185	(6) [(7)] amounts transferred under Section
186	186	2303.504(b), as amended by Article 2, Chapter 1134, Acts of the 77th
187	187	Legislature, Regular Session, 2001; and
188	188	(7) [(8) investment earnings under the Texas product
189	189	development fund under Section 489.211;
190	190	[(9) investment earnings under the Texas small
191	191	business incubator fund under Section 489.212; and
192	192	[(10)] any other amounts received by the state under
193	193	this chapter.
194	194	SECTION 9. Section 489.107, Government Code, is amended to
195	195	read as follows:
196	196	Sec. 489.107. ANNUAL REPORT. (a) On or before January 1 of
197	197	each year, the office shall submit to the legislature an annual
198	198	status report on the activities of the bank.
199	199	(b) The report under Subsection (a) must include for each
200	200	program administered by the office:
201	201	(1) the number of grants, loans, and designations
202	202	awarded in the previous fiscal year;
203	203	(2) the total number of grants, loans, and
204	204	designations awarded by the bank;
205	205	(3) the amount in dollars of all grants, loans, and
206	206	designations described by Subdivisions (1) and (2);
207	207	(4) the number of applications received in the
208	208	previous fiscal year;
209	209	(5) the number of outstanding loans and designations;
210	210	(6) a summary of each outstanding loan and
211	211	designation, including the amount outstanding and the terms of the
212	212	loan or designation;
213	213	(7) the balance of each program's fund and any reserve
214	214	account; and
215	215	(8) any challenges in administering each program,
216	216	including any proposals for statutory changes that would address
217	217	the challenges.
218	218	(c) For the small business disaster recovery loan program,
219	219	the report must include a general description of each small
220	220	business for which an applicant was awarded a loan from the fund
221	221	during the preceding fiscal year.
222	222	(d) In preparing the report under Subsection (a), the office
223	223	shall remove any identifying information pertaining to program
224	224	participants.
225	225	SECTION 10. Chapter 489, Government Code, is amended by
226	226	adding Subchapter D-1 to read as follows:
227	227	SUBCHAPTER D-1. WINDING UP OF PRODUCT DEVELOPMENT AND SMALL
228	228	BUSINESS INCUBATOR PROGRAM
229	229	Sec. 489.221. MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
230	230	UP AND FINAL LIQUIDATION. (a) In this section, "product
231	231	development and small business incubator investment portfolio"
232	232	means:
233	233	(1) the equity positions in the form of stock or other
234	234	security the bank took, on behalf of the state, in companies that
235	235	received awards under the product development and small business
236	236	incubator program; and
237	237	(2) any other investments made by the bank, on behalf
238	238	of the state, and associated assets in connection with an award made
239	239	under the product development and small business incubator program.
240	240	(b) The bank shall manage and wind up the product
241	241	development and small business incubator investment portfolio,
242	242	including revenues from loans and loan defaults, in a manner that,
243	243	to the extent feasible, provides for the maximum return on the
244	244	state's investment. In managing those investments and associated
245	245	assets through procedures and subject to restrictions that the bank
246	246	considers appropriate, the bank may acquire, exchange, sell,
247	247	supervise, manage, or retain any kind of investment or associated
248	248	assets that a prudent investor, exercising reasonable care, skill,
249	249	and caution, would acquire or retain in light of the purposes,
250	250	terms, distribution requirements, and other circumstances then
251	251	prevailing pertinent to each investment or associated asset. The
252	252	bank may recover its reasonable and necessary costs incurred in the
253	253	management of the portfolio, including costs incurred in the
254	254	retaining of professional or technical advisors, from the earnings
255	255	on the investments in the portfolio.
256	256	(c) The bank has any power necessary to accomplish the
257	257	purposes of this section.
258	258	SECTION 11. The following provisions of the Government Code
259	259	are repealed:
260	260	(1) Sections 481.0066(d-1), (d-2), (e), (e-1), and
261	261	(e-2);
262	262	(2) Section 481.401(6-a);
263	263	(3) Sections 481.406(b) and (c);
264	264	(4) Sections 481.402, 481.404, 481.405, 481.407,
265	265	481.408, 481.409, 481.410, 481.412(a), 481.415, 481.458, 481.609,
266	266	and 489.307; and
267	267	(5) Sections 489.201, 489.202, 489.203, 489.204,
268	268	489.205, 489.206, 489.207, 489.208, 489.209, 489.210, 489.213,
269	269	489.214, 489.215, 489.216, and 489.217.
270	270	SECTION 12. Not later than December 1, 2024, the Texas
271	271	Economic Development and Tourism Office shall submit the first
272	272	biennial strategic tourism plan required by Section 481.172(b)(3),
273	273	Government Code, as amended by this Act.
274	274	SECTION 13. This Act takes effect September 1, 2023.