89R16169 MLH-F By: Parker S.B. No. 2827 A BILL TO BE ENTITLED AN ACT relating to the establishment and administration of the Texas Quantum Initiative. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 481, Government Code, is amended by adding Subchapter HH to read as follows: SUBCHAPTER HH. TEXAS QUANTUM INITIATIVE Sec. 481.681. DEFINITIONS. In this subchapter: (1) "Executive committee" means the executive committee of the initiative. (2) "Initiative" means the Texas Quantum Initiative. (3) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code. Sec. 481.682. ESTABLISHMENT; PURPOSES. (a) The Texas Quantum Initiative is established to: (1) establish and advance this state's position as a national leader in the quantum industry; and (2) accelerate the integration of quantum computing, networking, and sensing technology into the economy of this state. (b) The purposes of the initiative are to: (1) leverage the expertise and capacity of regulatory stakeholders and institutions of higher education and industry to develop a comprehensive strategic plan to ensure the development of quantum technologies in this state; (2) identify obstacles and provide recommendations to the governor and legislature regarding quantum economic opportunities and technologies; (3) provide strategic leadership with respect to quantum initiatives; (4) identify and expand opportunities for workforce training and development related to the research, design, and manufacturing of quantum computing technology; (5) support existing quantum computing and networking industries in this state; (6) attract new quantum computing and networking projects and partners to this state; (7) support the development of a quantum manufacturing supply chain in this state; and (8) develop a comprehensive strategic plan for the state to ensure ongoing quantum leadership, prioritizing commercial and practical utility, through investments in the necessary foundational infrastructure, including quantum systems and networking equipment, jobs and workforce, and real property. Sec. 481.683. ADMINISTRATIVE ATTACHMENT. (a) The initiative is administratively attached to the office of the governor. (b) The office of the governor shall provide the staff and facilities necessary to assist the initiative in performing the initiative's duties under this subchapter. Sec. 481.684. EXECUTIVE COMMITTEE COMPOSITION. (a) The initiative is governed by an executive committee composed of the following members: (1) three members appointed by the governor; (2) two members appointed by the lieutenant governor; and (3) two members appointed by the speaker of the house of representatives. (b) In making appointments under Subsection (a), priority shall be given to individuals from the quantum design and manufacturing sectors. (c) In making appointments under Subsection (a), the governor, the lieutenant governor, and the speaker of the house of representatives shall coordinate to ensure that the members of the executive committee include: (1) at least one representative from a quantum infrastructure provider who has demonstrated experience in: (A) implementing quantum networks in similar settings; and (B) deploying leading edge quantum computing systems in third-party data centers; and (2) at least one representative of a manufacturer of a quantum computing system with the ability to enable the creation and deployment of quantum solutions with commercial and practical use. (d) An executive committee member serves a two-year term. An executive committee member may be reappointed for additional terms. (e) A vacancy on the executive committee shall be filled by appointment. The authority that appointed the former member of the vacant position shall appoint a new member to the vacant position. (f) Initial executive committee appointments shall be made by October 1, 2025. This subsection expires December 31, 2025. Sec. 481.685. EXECUTIVE DIRECTOR. (a) The executive committee shall hire an executive director. The executive director shall perform the duties required by this subchapter and any duty delegated by the committee. (b) The executive director must have demonstrated an ability to lead and develop academic, commercial, or governmental partnerships and coalitions. (c) The executive director may hire staff as necessary to implement the duties of the initiative under this subchapter. Sec. 481.686. DUTIES OF EXECUTIVE COMMITTEE. The executive committee shall: (1) develop and execute a comprehensive statewide strategic plan to further the purposes of the initiative under Section 481.682; (2) solicit recommendations from institutions of higher education, initiative members, and stakeholders on funding and research opportunities related to quantum education and research, design, commercialization, community outreach, and manufacturing projects; (3) appoint and determine the salary for an executive director as hired under Section 481.685; (4) administer funds, including any funds appropriated by the legislature or available under Section 481.689, to support quantum design and manufacturing, capital projects, supply chain development, and other initiatives; and (5) prepare and submit the report required by Section 481.688. Sec. 481.687. STRATEGIC PLAN. (a) The executive committee shall develop a strategic plan for the promotion of the quantum economy in this state. The plan must include: (1) a list of potential projects that further the goals of the initiative; (2) a list of federal grant opportunities that are related to quantum technology and for which institutions in this state are eligible to apply; (3) an assessment of the availability of external funding sources for each project identified under Subdivision (1); and (4) any other information the executive committee determines is relevant to further the initiative's goals. (b) The executive committee shall submit the strategic plan required by this section not later than December 31 of each year to the governor, the lieutenant governor, and the speaker of the house of representatives. Sec. 481.688. BIENNIAL REPORT. Not later than December 1 of each even-numbered year, the executive committee shall prepare and submit to the governor and the Legislative Budget Board a written report that outlines: (1) activities undertaken to meet the purposes of the initiative under Section 481.682; (2) a summary of the funding and research opportunities identified by the executive committee; (3) any legislative recommendations to further the purposes of the initiative; (4) any prospective grants or funding the initiative members expect to apply for or receive; and (5) any research accomplishments associated with the initiative. Sec. 481.689. QUANTUM UNIVERSITY AND BUSINESS INNOVATION FOR TEXAS FUND. (a) In this section, "fund" means the Quantum University and Business Innovation for Texas Fund created by this section. (b) The Quantum University and Business Innovation for Texas Fund is created as a dedicated account within the general revenue fund. The fund consists of: (1) gifts, grants, or donations to the fund; and (2) money from any other source designated by the legislature. (c) Money in the fund may be used to: (1) provide matching funding to state entities, including institutions of higher education, for quantum manufacturing and design projects; (2) award grants to business entities to encourage economic development related to quantum manufacturing and design projects; and (3) subject to Subsection (d), pay for staff support services described by Section 481.685(c). (d) The executive committee shall request approval from the Legislative Budget Board to use money in the fund for the purpose described by Subsection (c)(3). A request under this subsection is considered approved on the 30th day after receipt by the Legislative Budget Board unless expressly denied. SECTION 2. This Act takes effect September 1, 2025.