Bill Text: TX HB1515 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the continuation and functions of and certain programs subject to rules adopted by the Texas Economic Development and Tourism Office.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Passed) 2023-06-12 - Effective on 9/1/23 [HB1515 Detail]

Download: Texas-2023-HB1515-Comm_Sub.html
  88R20850 MLH-D
 
  By: Clardy, Holland, Canales, Goldman, H.B. No. 1515
      Bell of Kaufman
 
  Substitute the following for H.B. No. 1515:
 
  By:  Button C.S.H.B. No. 1515
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the continuation and functions of the Texas Economic
  Development and Tourism Office.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 481.003, Government Code, is amended to
  read as follows:
         Sec. 481.003.  SUNSET PROVISION. The Texas Economic
  Development and Tourism Office is subject to Chapter 325 (Texas
  Sunset Act).  Unless continued in existence as provided by that
  chapter, the office is abolished [and this chapter expires]
  September 1, 2035 [2023].
         SECTION 2.  Section 481.0066(d), Government Code, is amended
  to read as follows:
         (d)  The aerospace and aviation office shall:
               (1)  analyze space-related and aviation-related
  research currently conducted in this state and may conduct
  activities designed to further that research;
               (2)  analyze the state's economic position in the
  aerospace and aviation industries;
               (3)  develop short-term and long-term business
  strategies as part of an industry-specific strategic plan to
  promote the retention, development, and expansion of aerospace and
  aviation industry facilities in the state that is consistent with
  and complementary of the office strategic plan;
               (4)  [make specific recommendations to the legislature
  and the governor regarding the promotion of those industries;
               [(5)] as part of and to further the purposes of the
  industry-specific strategic plan described by Subdivision (3),
  develop short-term and long-term policy initiatives or recommend
  reforms the state may undertake or implement to:
                     (A)  increase investment in aerospace and
  aviation activities;
                     (B)  support the retention, development, and
  expansion of spaceports in this state;
                     (C)  identify and encourage educational,
  economic, and defense-related opportunities for aerospace and
  aviation activities;
                     (D)  determine the appropriate level of funding
  for the spaceport trust fund created under Section 481.0069 and
  support ongoing projects that have been assisted by the fund,
  including recommending to the legislature an appropriate funding
  level for the fund;
                     (E)  partner with the Texas Higher Education
  Coordinating Board to foster technological advancement and
  economic development for spaceport activities by strengthening
  higher education programs and supporting aerospace activities; and
                     (F)  partner with the Texas Workforce Commission
  to support initiatives that address the high technology skills and
  staff resources needed to better promote the state's efforts in
  becoming the leading space exploration state in the nation;
               (5) [(6)]  act as a liaison with other state and
  federal entities with related economic, educational, and defense
  responsibilities to support the marketing of the state's aerospace
  and aviation capabilities;
               (6) [(7)]  provide technical support and expertise to
  the state and to local spaceport authorities regarding aerospace
  and aviation business matters; and
               (7) [(8)]  be responsible for the promotion and
  development of spaceports in this state.
         SECTION 3.  Section 481.00681, Government Code, is amended
  by adding Subsection (i) to read as follows:
         (i)  Chapter 2110 does not apply to the size, composition, or
  duration of the task force.
         SECTION 4.  Subchapter B, Chapter 481, Government Code, is
  amended by adding Section 481.0211 to read as follows:
         Sec. 481.0211.  ADVISORY COMMITTEES. (a)  The office by rule
  may establish advisory committees to make recommendations to the
  office on programs, rules, and policies administered by the office.
         (b)  In establishing an advisory committee under this
  section, the office shall adopt rules, including rules regarding:
               (1)  the purpose, role, responsibility, goals, and
  duration of the committee;
               (2)  the size of and quorum requirement for the
  committee;
               (3)  qualifications for committee membership;
               (4)  appointment procedures for members;
               (5)  terms of service for members;
               (6)  training requirements for members;
               (7)  policies to avoid conflicts of interest by
  committee members;
               (8)  a periodic review process to evaluate the
  continuing need for the committee; and
               (9)  policies to ensure the committee does not violate
  any provisions of Chapter 551 applicable to the office or the
  committee.
         (c)  When the office establishes an advisory committee to
  make recommendations with regard to the aerospace and aviation
  industry, the governor shall appoint members of the committee.
         SECTION 5.  Section 481.022, Government Code, is amended to
  read as follows:
         Sec. 481.022.  GENERAL DUTIES OF OFFICE. The office shall:
               (1)  market and promote the state as a premier business
  location and tourist destination;
               (2)  facilitate the location, expansion, and retention
  of domestic and international business investment to the state;
               (3)  promote and administer business and community
  economic development programs and services in the state, including
  business incentive programs;
               (4)  provide to businesses and communities in the state
  assistance with exporting products and services to international
  markets;
               (5)  serve as a central source of economic research and
  information; [and]
               (6)  establish a statewide strategy to address economic
  growth and quality of life issues, a component of which is based on
  the identification and development of industry clusters; and
               (7)  develop a plan to engage with stakeholders to
  gather input and solicit feedback on the development of rules
  promulgated by the office related to lending programs, including
  participant selection, requirements for borrowers, terms of loans,
  requirements for disbursement of funds, and other aspects of
  program administration.
         SECTION 6.  Section 481.172, Government Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  A memorandum of understanding entered into under
  Subsection (a)(8) shall provide that the office may:
               (1)  strategically direct and redirect each agency's
  tourism priorities and activities to:
                     (A)  most effectively meet consumer demands and
  emerging travel trends, as established by the latest market
  research; and
                     (B)  minimize duplication of efforts and realize
  cost savings through economies of scale;
               (2)  require each agency to submit to the office for
  advance approval:
                     (A)  resources, activities, and materials related
  to the promotion of tourism proposed to be provided by the agency;
                     (B)  a biennial plan of action for the agency's
  proposed tourism activities [, not later than June 1 of each year,]
  that includes:
                           (i)  priorities identified by the agency
  that must include marketing, product development, and program
  development;
                           (ii)  the agency's proposed budget for
  tourism activities; and
                           (iii)  measurable goals and objectives of
  the agency related to the promotion of tourism; and
                     (C)  any proposed marketing message, material,
  logo, slogan, or other communication to be used by the agency in its
  tourism-related efforts, to assist the office in coordinating
  tourism-related efforts conducted in this state by the agency and
  the office and conducted outside of this state by the office;
               (3)  direct the development of a biennial [an annual]
  strategic tourism plan, including a marketing plan, to increase
  travel to this state, that:
                     (A)  provides the most effective and efficient
  expenditure of state funds for in-state marketing activities
  conducted by the agencies and encouraged by the office and
  out-of-state marketing activities conducted by the office;
                     (B)  establishes goals, objectives, and
  performance measures, including the measurement of the return on
  the investment made by an agency or the office, for the
  tourism-related efforts of all state agencies; and
                     (C)  is developed not later than December
  [September] 1 of each even-numbered year; and
               (4)  direct the agencies to share costs related to
  administrative support for the state's tourism activities.
         (b-1)  The office may, using the input of each agency that is
  a party to a memorandum of understanding under Subsection (a)(8),
  establish procedures for the submission of the plan required under
  Subsection (b)(2)(B).
         SECTION 7.  Section 481.406, Government Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  The office shall by rule develop:
               (1)  procedures for disbursement of money to borrowers
  and lending partners for access to capital programs; and
               (2)  documentation and recovery effort requirements of
  a participating partner for a claim against a reserve account.
         SECTION 8.  Section 489.105(b), Government Code, is amended
  to read as follows:
         (b)  The fund consists of:
               (1)  appropriations for the implementation and
  administration of this chapter;
               (2)  [investment earnings under the original capital
  access fund established under Section 481.402;
               [(3)]  fees charged under Subchapter BB, Chapter 481;
               (3) [(4)]  interest earned on the investment of money
  in the fund;
               (4) [(5)]  fees charged under this chapter;
               (5) [(6)]  investment earnings from the programs
  administered by the bank;
               (6) [(7)]  amounts transferred under Section
  2303.504(b)[, as amended by Article 2, Chapter 1134, Acts of the
  77th Legislature, Regular Session, 2001];
               (7) [(8)]  investment earnings under the Texas product
  development fund under Section 489.211;
               (8) [(9)]  investment earnings under the Texas small
  business incubator fund under Section 489.212; and
               (9) [(10)]  any other amounts received by the state
  under this chapter.
         SECTION 9.  Section 489.107, Government Code, is amended to
  read as follows:
         Sec. 489.107.  ANNUAL REPORT.  (a)  On or before January 1 of
  each year, the office shall submit to the legislature an annual
  status report on the activities of the bank.
         (b)  The report under Subsection (a) must include for each
  program administered by the office:
               (1)  the number of grants, loans, and designations
  awarded in the previous fiscal year;
               (2)  the total number of grants, loans, and
  designations awarded by the bank;
               (3)  the amount in dollars of all grants, loans, and
  designations described by Subdivisions (1) and (2);
               (4)  the number of applications received in the
  previous fiscal year;
               (5)  the number of outstanding loans and designations;
               (6)  a summary of each outstanding loan and
  designation, including the amount outstanding and the terms of the
  loan or designation;
               (7)  the balance of each program's fund and any reserve
  account; and
               (8)  any challenges in administering each program,
  including any proposals for statutory changes that would address
  the challenges.
         (c)  For the small business disaster recovery loan program,
  the report must include a general description of each small
  business for which an applicant was awarded a loan from the fund
  during the preceding fiscal year.
         (d)  In preparing the report under Subsection (a), the office
  shall remove any identifying information pertaining to program
  participants.
         SECTION 10.  Sections 489.211(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The Texas product development fund is a [revolving] fund
  in the state treasury.
         (b)  The product fund is composed of proceeds of bonds issued
  under this subchapter, financing application fees, loan
  repayments, guarantee fees, royalty receipts, dividend income,
  money appropriated by the legislature for authorized purposes of
  the product fund, amounts received by the state from loans, loan
  guarantees, and equity investments made under this subchapter,
  amounts received by the state from federal grants or other sources,
  [amounts transferred from the original capital access fund under
  Section 481.415,] and any other amounts received under this
  subchapter and required by the bank to be deposited in the product
  fund.  The product fund contains a program account, an interest and
  sinking account, and other accounts that the bank authorizes to be
  created and maintained.  Money in the product fund is available for
  use by the bank [board] under this subchapter.  Investment earnings
  under the product fund must be transferred to the fund created under
  Section 489.105.  Notwithstanding any other provision of this
  subchapter, any money in the product fund may be used for debt
  service, bond redemption, or any costs associated with debt service
  or bond redemption.
         SECTION 11.  Sections 489.212(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The Texas small business incubator fund is a [revolving]
  fund in the state treasury.
         (b)  The small business fund is composed of proceeds of bonds
  issued under this subchapter, financing application fees, loan
  repayments, guarantee fees, royalty receipts, dividend income,
  money appropriated by the legislature for authorized purposes of
  the small business fund, amounts received by the state from loans,
  loan guarantees, and equity investments made under this subchapter,
  amounts received by the state from federal grants or other sources,
  [amounts transferred from the original capital access fund under
  Section 481.415,] and any other amounts received under this
  subchapter and required by the bank to be deposited in the small
  business fund.  The small business fund contains a project account,
  an interest and sinking account, and other accounts that the bank
  authorizes to be created and maintained.  Money in the small
  business fund is available for use by the bank [board] under this
  subchapter.  Investment earnings under the small business fund
  must be transferred to the fund created under Section
  489.105.  Notwithstanding any other provision of this subchapter,
  any money in the small business fund may be used for debt service,
  bond redemption, or any costs associated with debt service or bond
  redemption.
         SECTION 12.  Section 489.215(b), Government Code, is amended
  to read as follows:
         (b)  This section applies to information in any form provided
  by or on behalf of an applicant for financing or a recipient of
  financing under this subchapter, including information contained
  in, accompanying, or derived from any application or report, that
  relates to a product, to the development, application, manufacture,
  or use of a product, or to the markets, market prospects, or
  marketing of a product and that is proprietary information of
  actual or potential commercial value to the applicant or recipient
  that has not been disclosed to the public.  Confidential
  information includes scientific and technological information,
  including computer programs and software, and marketing and
  business operation information, regardless of whether the product
  to which the information relates is patentable or capable of being
  registered under copyright or trademark laws or has a potential for
  being sold, traded, or licensed for a fee.  This section does not
  make confidential information in an account, voucher, or contract
  relating to the receipt or expenditure of public funds by the bank,
  board, or the department or its successor under this subchapter.
  This section applies to any information collected in winding up the
  product development and small business incubator program
  investment portfolio under Subchapter D-1.
         SECTION 13.  Chapter 489, Government Code, is amended by
  adding Subchapter D-1 to read as follows:
  SUBCHAPTER D-1.  WINDING UP OF PRODUCT DEVELOPMENT AND SMALL
  BUSINESS INCUBATOR PROGRAM
         Sec. 489.221.  MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
  UP AND FINAL LIQUIDATION.  (a)  In this section, "product
  development and small business incubator program investment
  portfolio" means:
               (1)  the equity positions in the form of stock or other
  security the bank took, on behalf of the state, in companies that
  received financing under the product development and small business
  incubator program; and
               (2)  any other investments made by the bank, on behalf
  of the state, and associated assets in connection with financing
  made under the product development and small business incubator
  program.
         (b)  The bank shall manage and wind up the product
  development and small business incubator program investment
  portfolio, including revenues and associated assets from financing
  and defaults on financing, in a manner that, to the extent feasible,
  provides for the maximum return on the state's investment.  In
  managing those investments and associated assets through
  procedures and subject to restrictions that the bank considers
  appropriate, the bank may acquire, exchange, sell, supervise,
  manage, or retain any kind of investment or associated assets that a
  prudent investor, exercising reasonable care, skill, and caution,
  would acquire or retain in light of the purposes, terms,
  distribution requirements, and other circumstances then prevailing
  pertinent to each investment or associated asset.  The bank may
  recover its reasonable and necessary costs incurred in the
  management of the portfolio, including costs incurred in the
  retaining of professional or technical advisors, from the earnings
  on the investments in the portfolio.
         (c)  On completion of the winding up process under Subsection
  (b), the bank shall deposit any remaining investment earnings to
  the credit of the Texas economic development bank fund, as required
  under Sections 489.211 and 489.212.
         (d)  The bank has any power necessary to accomplish the
  purposes of this section.
         SECTION 14.  The following provisions of the Government Code
  are repealed:
               (1)  Sections 481.0066(d-1), (d-2), (e), (e-1), and
  (e-2);
               (2)  Section 481.401(6-a);
               (3)  Sections 481.406(b) and (c);
               (4)  Sections 481.402, 481.404, 481.405, 481.407,
  481.408, 481.409, 481.410, 481.412(a), 481.415, 481.458, 481.609,
  and 489.307; and
               (5)  Sections 489.201, 489.202, 489.203, 489.204,
  489.205, 489.206, 489.207, 489.208, 489.209, 489.210, 489.211(c),
  489.212(c), 489.213, 489.214, 489.215(c), 489.216, and 489.217.
         SECTION 15.  Not later than December 1, 2024, the Texas
  Economic Development and Tourism Office shall submit the first
  biennial strategic tourism plan required by Section 481.172(b)(3),
  Government Code, as amended by this Act.
         SECTION 16.  A member of an advisory committee repealed by
  this Act may be reappointed to serve as a member of a new advisory
  committee established under Section 481.0211, Government Code, as
  added by this Act.
         SECTION 17.  This Act takes effect September 1, 2023.
feedback