Bill Text: TX HB1389 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the funding of certain activities related to the commercialization of emerging technologies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-04-02 - Left pending in committee [HB1389 Detail]

Download: Texas-2015-HB1389-Introduced.html

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84R9332 CLG-D
By: Villalba H.B. No. 1389

A BILL TO BE ENTITLED
AN ACT
relating to the funding of certain activities related to the
commercialization of emerging technologies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 490, Government Code, is
repealed.
SECTION 2. Section 490.001(4), Government Code, is amended
to read as follows:
(4) "Award" means:
(A) for purposes of former Subchapter D, an
investment in the form of equity or a convertible note;
(B) for purposes of Subchapter E, an investment
in the form of a debt instrument;
(C) for purposes of Subchapter F, a grant; or
(D) other forms of contribution or investment as
recommended by the committee and approved by the governor,
lieutenant governor, and speaker of the house of representatives.
SECTION 3. Sections 490.005(a) and (b), Government Code,
are amended to read as follows:
(a) Not later than January 31 of each year, the governor
shall submit to the lieutenant governor, the speaker of the house of
representatives, and the standing committee of each house of the
legislature with primary jurisdiction over economic development
matters and post on the office of the governor's Internet website a
report that includes the following information regarding awards
made under the fund during each preceding state fiscal year:
(1) the total number and amount of awards made;
(2) the number and amount of awards made under
Subchapters [D ,] E[,] and F;
(3) the aggregate total of private sector investment,
federal government funding, and contributions from other sources
obtained in connection with awards made under each of the
subchapters listed in Subdivision (2);
(4) the name of each award recipient and the amount of
the award made to the recipient; and
(5) a brief description of any [the] equity position
that the governor, on behalf of the state, may take in companies
receiving awards and the names of the companies in which the state
has taken an equity position.
(b) The annual report must also contain:
(1) the total number of jobs actually created by each
project receiving funding under this chapter;
(2) an analysis of the number of jobs actually created
by each project receiving funding under this chapter; and
(3) a brief description regarding:
(A) the methodology used to determine the
information provided under Subdivisions (1) and (2), which may be
developed in consultation with the comptroller's office;
(B) the intended outcomes of projects funded
under former Subchapter D during each preceding state fiscal year
for which funding from the fund was provided for projects and
activities under that subchapter; and
(C) the actual outcomes of all projects funded
under former Subchapter D during each preceding state fiscal year
for which funding from the fund was provided for projects and
activities under that subchapter, including any financial impact on
the state resulting from a liquidity event involving a company
whose project was funded under that subchapter.
SECTION 4. Subchapter A, Chapter 490, Government Code, is
amended by adding Section 490.007 to read as follows:
Sec. 490.007. GUARANTEE OF ACTION BY CERTAIN PARTICIPATING
ENTITIES. (a) This section applies only to an entity that
participated in a regional center of innovation and
commercialization established under former Subchapter D and
received funding or another incentive under that subchapter.
(b) If an entity fails to perform an action guaranteed by
contract with the governor's office under former Section 490.154(a)
before a time specified by the contract, the entity shall return to
the fund the money received by the entity under former Subchapter D.
SECTION 5. Section 490.102(a), Government Code, is amended
to read as follows:
(a) Money appropriated to the fund by the legislature, less
amounts necessary to administer the fund under Section 490.055,
shall be allocated as follows:
(1) 33.34 [50 percent of the money for incentives for
collaboration between certain entities as provided by Subchapter D;
[(2) 16.67] percent of the money for research award
matching as provided by Subchapter E; and
(2) 66.66 [(3) 33.33] percent of the money for
acquisition of research superiority as provided by Subchapter F.
SECTION 6. Section 490.303, Government Code, is amended to
read as follows:
Sec. 490.303. ELIGIBILITY OF CLEAN COAL PROJECT FOR MONEY.
Notwithstanding any other provision of this subchapter, a clean
coal project constitutes an opportunity for emerging technology
suitable for consideration for a grant under Subchapter C,
[incentives as provided by Subchapter D,] grant matching as
provided by Subchapter E, and acquisition of research superiority
under Subchapter F.
SECTION 7. (a) The repeal by this Act of Subchapter D,
Chapter 490, Government Code, relating to certain
commercialization of emerging technology activities funded by the
Texas emerging technology fund, does not affect the validity of an
agreement between the governor and the recipient of an award
awarded under Subchapter D, Chapter 490, or a person to be awarded
money under that subchapter that is entered into under Chapter 490
before September 1, 2015.
(b) Money from the Texas emerging technology fund that is
encumbered because the money is awarded under Subchapter D, Chapter
490, Government Code, or otherwise obligated by agreement before
September 1, 2015, but under the terms of the award or agreement
will not be distributed until a later date shall be distributed in
accordance with the terms of the award or agreement.
(c) On or after the effective date of this Act, any fund
money returned by an entity that received an award under Subchapter
D, Chapter 490, Government Code, and that fails to perform an action
guaranteed by a contract entered into under Section 490.154,
Government Code, shall be sent to the comptroller. The comptroller
shall deposit 50 percent of the money received under this
subsection to the credit of the Texas Enterprise Fund and 50 percent
of the money to the credit of the Texas emerging technology fund.
SECTION 8. (a) Notwithstanding Section 490.005(a),
Government Code, as amended by this Act, the report due under that
section by January 31, 2016, must also include the specified
information required by Subdivisions (1)-(5) of that section
regarding awards made under Subchapter D, Chapter 490, Government
Code, during the 2015 state fiscal year and each preceding state
fiscal year.
(b) Notwithstanding Sections 490.005(a) and (b), Government
Code, as amended by this Act, the report due under Section
490.005(a) by January 31, 2016, must also contain the specified
information required by Section 490.005(b) regarding projects
receiving funding under Subchapter D, Chapter 490, Government Code,
during the 2015 state fiscal year and each preceding state fiscal
year.
SECTION 9. A regional center of innovation and
commercialization established under Section 490.152, Government
Code, is abolished on the effective date of this Act. Each center
shall transfer to the office of the governor a copy of any meeting
minutes required to be retained under Section 490.1521, Government
Code, as that section existed immediately before that section's
repeal by this Act, and the office shall retain the minutes for the
period prescribed by that section.
SECTION 10. This Act takes effect September 1, 2015.