88R13798 MLH-D
By: Campbell S.B. No. 2367
A BILL TO BE ENTITLED
AN ACT
relating to the creation of programs and funding for investment in
technology industries.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 490J to read as follows:
CHAPTER 490J. FUNDING FOR TECHNOLOGY INVESTMENT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 490J.001. DEFINITIONS. In this chapter:
(1) "Committee" means the Texas Technology Investment
Committee.
(2) "Fund" means the Texas technology investment fund.
(3) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
Sec. 490J.002. PURPOSES. The fund is established under
this chapter to develop and diversify the economy of this state by:
(1) investing in innovative technology and
industries; and
(2) attracting, creating, or expanding private sector
entities that will promote a substantial increase in high quality
jobs.
Sec. 490J.003. ELIGIBLE TECHNOLOGY INDUSTRIES. A
technology industry participant is eligible for funding under this
chapter if the activity to be funded:
(1) will produce products that compete with Chinese
companies that provide information and communications technology
and services; and
(2) either:
(A) will result in the creation of high quality
new jobs in this state, immediately or over a longer period; or
(B) has the potential to result in a medical or
scientific breakthrough.
SUBCHAPTER B. TEXAS TECHNOLOGY INVESTMENT COMMITTEE
Sec. 490J.051. COMPOSITION OF COMMITTEE. The Texas
Technology Investment Committee is composed of 17 members.
Sec. 490J.052. APPOINTMENT BY GOVERNOR; NOMINATIONS. (a)
The governor shall appoint to the committee individuals nominated
as provided by Subsection (b).
(b) The following persons may nominate one or more
individuals who are industry leaders in this state or who are
nationally recognized researchers from public or private
institutions of higher education in this state for appointment to
the committee:
(1) the Texas Higher Education Coordinating Board;
(2) a president of a public or private institution of
higher education in this state;
(3) the members of the Texas Workforce Commission;
(4) a representative of the governor's office involved
in economic development activities;
(5) a representative of the lieutenant governor's
office involved in economic development activities;
(6) a representative of the office of the speaker of
the house involved in economic development activities; and
(7) other persons considered appropriate by the
governor.
(c) The governor may prescribe a date after which a
nomination under Subsection (b) for appointment for the next term
will not be considered.
(d) If an insufficient number of qualified individuals are
nominated as provided by Subsection (b) before the date set by the
governor under Subsection (c), the governor may appoint any
qualified individual to the board for that term.
Sec. 490J.053. PRESIDING MEMBER. The governor shall
appoint a presiding member of the committee.
Sec. 490J.054. TERMS. Members of the committee serve
two-year terms, subject to the pleasure of the governor.
Sec. 490J.055. COMMITTEE STAFF AND FUNDING. Necessary
staff and funding for the committee shall be provided by:
(1) the office of the governor;
(2) the Texas Higher Education Coordinating Board;
(3) the Texas Education Agency;
(4) the Texas Workforce Commission;
(5) another public entity represented by a committee
member; and
(6) gifts, grants, and donations for overhead expenses
to the entities listed in Subdivisions (1)-(5).
Sec. 490J.056. RECOMMENDATIONS FOR FUNDING. (a) The
committee shall make recommendations, through peer review and
evaluation processes established by the committee, to the governor,
lieutenant governor, and speaker of the house of representatives
for the award of money from the fund as provided by this chapter.
(b) The committee may establish advisory panels of
knowledgeable individuals from industry, state government, or
academic occupations to assist in peer review activities under this
chapter.
Sec. 490J.057. CONFIDENTIALITY. Information collected by
the governor's office, the committee, or the committee's advisory
panels concerning the identity, background, finance, marketing
plans, trade secrets, or other commercially or academically
sensitive information of an individual or entity being considered
for an award from the fund is confidential unless the individual or
entity consents to disclosure of the information.
SUBCHAPTER C. TEXAS TECHNOLOGY INVESTMENT FUND
Sec. 490J.101. TEXAS TECHNOLOGY INVESTMENT FUND. (a) The
Texas technology investment fund is a dedicated account in the
general revenue fund.
(b) The following amounts shall be deposited in the fund:
(1) any amounts appropriated by the legislature for
the fund;
(2) benefits realized from a project undertaken with
money from the fund, as provided by a contract entered into under
Section 490J.102;
(3) gifts, grants, and other donations received for
the fund; and
(4) interest earned on the investment of money in the
fund.
(c) The fund may be used only for the purposes described by
Section 490J.002.
(d) The committee may solicit and accept gifts and grants
for the fund from public and private entities.
(e) The fund may be temporarily used by the comptroller for
cash management purposes.
(f) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awarding, by grant,
money appropriated from the fund. The governor may award money
appropriated from the fund only with the express written prior
approval of the lieutenant governor and speaker of the house of
representatives.
(g) Before awarding a grant under this chapter, the governor
shall enter into a written agreement with the entity to be awarded
the grant money. An agreement may specify that:
(1) if all or any portion of the amount of the grant is
used to build a capital improvement:
(A) the state retains a lien or other interest in
the capital improvement in proportion to the percentage of the
grant amount used to pay for the capital improvement; and
(B) the recipient of the grant shall, if the
capital improvement is sold:
(i) repay to the state the grant money used
to pay for the capital improvement, with interest at the rate and
according to the other terms provided by the agreement; and
(ii) share with the state a proportionate
amount of any profit realized from the sale; and
(2) if, as of a date certain provided in the agreement,
the grant recipient has not used grant money awarded under this
chapter for the purposes for which the grant was intended, the
recipient shall repay that amount and any related interest
applicable under the agreement to the state at the agreed rate and
on the agreed terms.
Sec. 490J.102. ALLOCATION OF PROCEEDS. (a) The contract
between the governor and a recipient awarded a grant under this
chapter shall provide for the distribution of royalties, revenue,
or other financial benefits realized from the commercialization of
intellectual or real property developed from any grant awarded from
the fund. To the extent authorized by law and not in conflict with
another agreement, the contract shall appropriately allocate by
assignment, licensing, or other means the royalties, revenue, or
other financial benefits among identifiable collaborating parties
and in a specified percentage to this state for deposit in the fund.
(b) The contract under Subsection (a) shall also specify
other matters considered necessary by the governor, lieutenant
governor, and speaker of the house of representatives.
SUBCHAPTER D. INVESTMENTS IN ELIGIBLE TECHNOLOGY
Sec. 490J.151. USE OF MONEY FOR INVESTMENT IN PROJECTS. (a)
Amounts may be awarded from the fund as provided by this chapter for
eligible technology projects with a demonstrable economic benefit
to this state.
(b) The committee shall recommend proposals eligible for
funding under this section to the governor, lieutenant governor,
and speaker of the house of representatives.
Sec. 490J.152. PRIORITY FOR FUNDING. In awarding money
from the fund under this chapter, priority shall be given to
proposals that:
(1) involve technology fields that have a reasonable
probability of enhancing this state's national and global economic
competitiveness; or
(2) have a demonstrable economic development benefit
to this state by attracting technology industries to relocate to
this state.
Sec. 490J.153. GUARANTEE OF ACTION BY PARTICIPATING ENTITY.
(a) An entity that receives funding under this chapter shall
guarantee by contract with the governor's office that the entity
will perform specific actions expected to provide benefits to this
state.
(b) If an entity fails to perform an action guaranteed by
contract under Subsection (a) before a time specified by the
contract, the entity shall return to the fund the money received by
the entity under this chapter.
Sec. 490J.154. AUTHORIZED EXPENSES. (a) A person awarded
money from the fund under this chapter may use the money to expedite
commercialization that will lead to an increase in high quality
jobs in this state and shall use the money in accordance with a
contract between the person and the committee.
(b) Authorized expenses under this section include salaries
and benefits, travel, consumable supplies, other operating
expenses, contracted research and development, capital equipment,
construction or renovation of state or private facilities, and
workforce training.
SECTION 2. (a) As soon as practicable after the effective
date of this Act, a person seeking to nominate an individual for
appointment to the Texas Technology Investment Committee under
Section 490J.052, Government Code, as added by this Act, shall make
any nominations.
(b) The governor shall appoint the Texas Technology
Investment Committee as required by Section 490J.052, Government
Code, as added by this Act, on or before September 1, 2023, or as
soon as practicable after giving persons nominating individuals for
appointment to the committee a reasonable time to make any
nominations.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.