Texas 2023 - 88th Regular

Texas Senate Bill SB2367 Compare Versions

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1	1	88R13798 MLH-D
2	2	By: Campbell S.B. No. 2367
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of programs and funding for investment in
8	8	technology industries.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle F, Title 4, Government Code, is amended
11	11	by adding Chapter 490J to read as follows:
12	12	CHAPTER 490J. FUNDING FOR TECHNOLOGY INVESTMENT
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 490J.001. DEFINITIONS. In this chapter:
15	15	(1) "Committee" means the Texas Technology Investment
16	16	Committee.
17	17	(2) "Fund" means the Texas technology investment fund.
18	18	(3) "Institution of higher education" has the meaning
19	19	assigned by Section 61.003, Education Code.
20	20	Sec. 490J.002. PURPOSES. The fund is established under
21	21	this chapter to develop and diversify the economy of this state by:
22	22	(1) investing in innovative technology and
23	23	industries; and
24	24	(2) attracting, creating, or expanding private sector
25	25	entities that will promote a substantial increase in high quality
26	26	jobs.
27	27	Sec. 490J.003. ELIGIBLE TECHNOLOGY INDUSTRIES. A
28	28	technology industry participant is eligible for funding under this
29	29	chapter if the activity to be funded:
30	30	(1) will produce products that compete with Chinese
31	31	companies that provide information and communications technology
32	32	and services; and
33	33	(2) either:
34	34	(A) will result in the creation of high quality
35	35	new jobs in this state, immediately or over a longer period; or
36	36	(B) has the potential to result in a medical or
37	37	scientific breakthrough.
38	38	SUBCHAPTER B. TEXAS TECHNOLOGY INVESTMENT COMMITTEE
39	39	Sec. 490J.051. COMPOSITION OF COMMITTEE. The Texas
40	40	Technology Investment Committee is composed of 17 members.
41	41	Sec. 490J.052. APPOINTMENT BY GOVERNOR; NOMINATIONS. (a)
42	42	The governor shall appoint to the committee individuals nominated
43	43	as provided by Subsection (b).
44	44	(b) The following persons may nominate one or more
45	45	individuals who are industry leaders in this state or who are
46	46	nationally recognized researchers from public or private
47	47	institutions of higher education in this state for appointment to
48	48	the committee:
49	49	(1) the Texas Higher Education Coordinating Board;
50	50	(2) a president of a public or private institution of
51	51	higher education in this state;
52	52	(3) the members of the Texas Workforce Commission;
53	53	(4) a representative of the governor's office involved
54	54	in economic development activities;
55	55	(5) a representative of the lieutenant governor's
56	56	office involved in economic development activities;
57	57	(6) a representative of the office of the speaker of
58	58	the house involved in economic development activities; and
59	59	(7) other persons considered appropriate by the
60	60	governor.
61	61	(c) The governor may prescribe a date after which a
62	62	nomination under Subsection (b) for appointment for the next term
63	63	will not be considered.
64	64	(d) If an insufficient number of qualified individuals are
65	65	nominated as provided by Subsection (b) before the date set by the
66	66	governor under Subsection (c), the governor may appoint any
67	67	qualified individual to the board for that term.
68	68	Sec. 490J.053. PRESIDING MEMBER. The governor shall
69	69	appoint a presiding member of the committee.
70	70	Sec. 490J.054. TERMS. Members of the committee serve
71	71	two-year terms, subject to the pleasure of the governor.
72	72	Sec. 490J.055. COMMITTEE STAFF AND FUNDING. Necessary
73	73	staff and funding for the committee shall be provided by:
74	74	(1) the office of the governor;
75	75	(2) the Texas Higher Education Coordinating Board;
76	76	(3) the Texas Education Agency;
77	77	(4) the Texas Workforce Commission;
78	78	(5) another public entity represented by a committee
79	79	member; and
80	80	(6) gifts, grants, and donations for overhead expenses
81	81	to the entities listed in Subdivisions (1)-(5).
82	82	Sec. 490J.056. RECOMMENDATIONS FOR FUNDING. (a) The
83	83	committee shall make recommendations, through peer review and
84	84	evaluation processes established by the committee, to the governor,
85	85	lieutenant governor, and speaker of the house of representatives
86	86	for the award of money from the fund as provided by this chapter.
87	87	(b) The committee may establish advisory panels of
88	88	knowledgeable individuals from industry, state government, or
89	89	academic occupations to assist in peer review activities under this
90	90	chapter.
91	91	Sec. 490J.057. CONFIDENTIALITY. Information collected by
92	92	the governor's office, the committee, or the committee's advisory
93	93	panels concerning the identity, background, finance, marketing
94	94	plans, trade secrets, or other commercially or academically
95	95	sensitive information of an individual or entity being considered
96	96	for an award from the fund is confidential unless the individual or
97	97	entity consents to disclosure of the information.
98	98	SUBCHAPTER C. TEXAS TECHNOLOGY INVESTMENT FUND
99	99	Sec. 490J.101. TEXAS TECHNOLOGY INVESTMENT FUND. (a) The
100	100	Texas technology investment fund is a dedicated account in the
101	101	general revenue fund.
102	102	(b) The following amounts shall be deposited in the fund:
103	103	(1) any amounts appropriated by the legislature for
104	104	the fund;
105	105	(2) benefits realized from a project undertaken with
106	106	money from the fund, as provided by a contract entered into under
107	107	Section 490J.102;
108	108	(3) gifts, grants, and other donations received for
109	109	the fund; and
110	110	(4) interest earned on the investment of money in the
111	111	fund.
112	112	(c) The fund may be used only for the purposes described by
113	113	Section 490J.002.
114	114	(d) The committee may solicit and accept gifts and grants
115	115	for the fund from public and private entities.
116	116	(e) The fund may be temporarily used by the comptroller for
117	117	cash management purposes.
118	118	(f) The administration of the fund is considered to be a
119	119	trusteed program within the office of the governor. The governor
120	120	may negotiate on behalf of the state regarding awarding, by grant,
121	121	money appropriated from the fund. The governor may award money
122	122	appropriated from the fund only with the express written prior
123	123	approval of the lieutenant governor and speaker of the house of
124	124	representatives.
125	125	(g) Before awarding a grant under this chapter, the governor
126	126	shall enter into a written agreement with the entity to be awarded
127	127	the grant money. An agreement may specify that:
128	128	(1) if all or any portion of the amount of the grant is
129	129	used to build a capital improvement:
130	130	(A) the state retains a lien or other interest in
131	131	the capital improvement in proportion to the percentage of the
132	132	grant amount used to pay for the capital improvement; and
133	133	(B) the recipient of the grant shall, if the
134	134	capital improvement is sold:
135	135	(i) repay to the state the grant money used
136	136	to pay for the capital improvement, with interest at the rate and
137	137	according to the other terms provided by the agreement; and
138	138	(ii) share with the state a proportionate
139	139	amount of any profit realized from the sale; and
140	140	(2) if, as of a date certain provided in the agreement,
141	141	the grant recipient has not used grant money awarded under this
142	142	chapter for the purposes for which the grant was intended, the
143	143	recipient shall repay that amount and any related interest
144	144	applicable under the agreement to the state at the agreed rate and
145	145	on the agreed terms.
146	146	Sec. 490J.102. ALLOCATION OF PROCEEDS. (a) The contract
147	147	between the governor and a recipient awarded a grant under this
148	148	chapter shall provide for the distribution of royalties, revenue,
149	149	or other financial benefits realized from the commercialization of
150	150	intellectual or real property developed from any grant awarded from
151	151	the fund. To the extent authorized by law and not in conflict with
152	152	another agreement, the contract shall appropriately allocate by
153	153	assignment, licensing, or other means the royalties, revenue, or
154	154	other financial benefits among identifiable collaborating parties
155	155	and in a specified percentage to this state for deposit in the fund.
156	156	(b) The contract under Subsection (a) shall also specify
157	157	other matters considered necessary by the governor, lieutenant
158	158	governor, and speaker of the house of representatives.
159	159	SUBCHAPTER D. INVESTMENTS IN ELIGIBLE TECHNOLOGY
160	160	Sec. 490J.151. USE OF MONEY FOR INVESTMENT IN PROJECTS. (a)
161	161	Amounts may be awarded from the fund as provided by this chapter for
162	162	eligible technology projects with a demonstrable economic benefit
163	163	to this state.
164	164	(b) The committee shall recommend proposals eligible for
165	165	funding under this section to the governor, lieutenant governor,
166	166	and speaker of the house of representatives.
167	167	Sec. 490J.152. PRIORITY FOR FUNDING. In awarding money
168	168	from the fund under this chapter, priority shall be given to
169	169	proposals that:
170	170	(1) involve technology fields that have a reasonable
171	171	probability of enhancing this state's national and global economic
172	172	competitiveness; or
173	173	(2) have a demonstrable economic development benefit
174	174	to this state by attracting technology industries to relocate to
175	175	this state.
176	176	Sec. 490J.153. GUARANTEE OF ACTION BY PARTICIPATING ENTITY.
177	177	(a) An entity that receives funding under this chapter shall
178	178	guarantee by contract with the governor's office that the entity
179	179	will perform specific actions expected to provide benefits to this
180	180	state.
181	181	(b) If an entity fails to perform an action guaranteed by
182	182	contract under Subsection (a) before a time specified by the
183	183	contract, the entity shall return to the fund the money received by
184	184	the entity under this chapter.
185	185	Sec. 490J.154. AUTHORIZED EXPENSES. (a) A person awarded
186	186	money from the fund under this chapter may use the money to expedite
187	187	commercialization that will lead to an increase in high quality
188	188	jobs in this state and shall use the money in accordance with a
189	189	contract between the person and the committee.
190	190	(b) Authorized expenses under this section include salaries
191	191	and benefits, travel, consumable supplies, other operating
192	192	expenses, contracted research and development, capital equipment,
193	193	construction or renovation of state or private facilities, and
194	194	workforce training.
195	195	SECTION 2. (a) As soon as practicable after the effective
196	196	date of this Act, a person seeking to nominate an individual for
197	197	appointment to the Texas Technology Investment Committee under
198	198	Section 490J.052, Government Code, as added by this Act, shall make
199	199	any nominations.
200	200	(b) The governor shall appoint the Texas Technology
201	201	Investment Committee as required by Section 490J.052, Government
202	202	Code, as added by this Act, on or before September 1, 2023, or as
203	203	soon as practicable after giving persons nominating individuals for
204	204	appointment to the committee a reasonable time to make any
205	205	nominations.
206	206	SECTION 3. This Act takes effect immediately if it receives
207	207	a vote of two-thirds of all the members elected to each house, as
208	208	provided by Section 39, Article III, Texas Constitution. If this
209	209	Act does not receive the vote necessary for immediate effect, this
210	210	Act takes effect September 1, 2023.