Bill Text: TX HB3447 | 2023-2024 | 88th Legislature | Enrolled

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Bill Title: Relating to the establishment and administration of the Texas Space Commission and the Texas Aerospace Research and Space Economy Consortium.

Spectrum: Slight Partisan Bill (Democrat 7-4)

Status: (Passed) 2023-06-13 - Effective on 9/1/23 [HB3447 Detail]

Download: Texas-2023-HB3447-Enrolled.html

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H.B. No. 3447

AN ACT
relating to the establishment and administration of the Texas Space
Commission and the Texas Aerospace Research and Space Economy
Consortium.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 482 to read as follows:
CHAPTER 482. TEXAS AEROSPACE AND TECHNOLOGY SUPPORT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 482.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
commission.
(2) "Commission" means the Texas Space Commission.
(3) "Fund" means the space exploration and aeronautics
research fund.
(4) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
SUBCHAPTER B. TEXAS SPACE COMMISSION
Sec. 482.101. ESTABLISHMENT; PURPOSE. (a) The Texas Space
Commission is established to strengthen this state's proven
leadership in civil, commercial, and military aerospace activity.
(b) The purpose of the commission is to promote innovation
in the fields of space exploration and commercial aerospace
opportunities, including the integration of space, aeronautics,
and aviation industries into the economy of this state.
Sec. 482.102. ADMINISTRATIVE ATTACHMENT. (a) The
commission is administratively attached to the office of the
governor, and the office of the governor shall provide
administrative support to the commission as provided by this
section. The equal employment opportunity officer and the internal
auditor of the office of the governor shall serve the same functions
for the commission as they serve for the office of the governor.
(b) The office of the governor and the board shall enter
into a memorandum of understanding detailing:
(1) the administrative support the commission
requires from the office of the governor to fulfill the purposes of
this chapter;
(2) the reimbursement of administrative expenses to
the office of the governor; and
(3) any other provisions available by law to ensure
the efficient operation of the commission as attached to the office
of the governor.
Sec. 482.103. SUNSET PROVISION. The commission is subject
to Chapter 325 (Texas Sunset Act). Unless continued in existence as
provided by that chapter, the commission is abolished and this
chapter expires September 1, 2032.
Sec. 482.104. STATE AUDITOR. Nothing in this chapter
limits the authority of the state auditor under Chapter 321 or other
law.
Sec. 482.105. BOARD OF DIRECTORS. (a) The commission is
governed by a nine-member board of directors. The board is composed
of:
(1) three members appointed by the governor;
(2) three members appointed by the lieutenant
governor; and
(3) three members appointed by the speaker of the
house of representatives.
(b) In making appointments under Subsection (a), the
governor, lieutenant governor, and speaker of the house of
representatives shall prioritize appointing individuals with
experience in:
(1) commercial aerospace;
(2) civil aviation;
(3) military aerospace;
(4) space economic development;
(5) space-related academic research; and
(6) nonprofit support of the space economy.
(c) Members of the board appointed by the governor,
lieutenant governor, and speaker of the house serve at the pleasure
of the appointing office for staggered six-year terms, with the
terms of two members expiring on January 31 of each odd-numbered
year.
(d) If a vacancy occurs on the board, the appropriate
appointing authority shall appoint a successor, in the same manner
as the original appointment, to serve for the remainder of the
unexpired term. The appropriate appointing authority shall appoint
the successor not later than the 30th day after the date the vacancy
occurs.
(e) Not later than the 30th day after the date a board
member's term expires, the appropriate appointing authority shall
appoint a replacement.
(f) The board shall elect a presiding officer from among the
members of the board.
Sec. 482.106. EXECUTIVE DIRECTOR. (a) The board shall hire
an executive director. The executive director shall perform the
duties required by this chapter and any duty delegated by the board.
(b) The executive director must have a demonstrated ability
to lead and develop academic, commercial, military, or governmental
partnerships and coalitions.
(c) The executive director may hire staff as necessary to
implement the duties of the commission under this chapter.
Sec. 482.107. BOARD OF DIRECTORS: AUTHORITY. (a) The board
shall:
(1) direct the activities of, establish goals for, and
provide oversight to the commission;
(2) develop and execute a strategic plan in accordance
with Section 482.201;
(3) establish the appropriate standards and executive
bodies to ensure the proper use of funds authorized under this
chapter for research and facilities development;
(4) identify research and funding opportunities for
entities within this state that:
(A) strengthen and enhance this state's proven
leadership position in civil, commercial, and military aeronautics
research and development and space flight infrastructure;
(B) enhance the integration of the space,
aeronautics, astronautics, and aviation industries into this
state's economy; and
(C) promote and further research involving
materials derived from or developed through space exploration and
space flight;
(5) capitalize, promote, and assist in the development
of workforce training to further the development of emerging
technologies required for all aspects of space exploration; and
(6) solicit proposals on funding and research
opportunities related to the objectives in this chapter from the
Texas Aerospace Research and Space Economy Consortium established
under Subchapter G.
(b) The board shall employ a chief compliance officer to
monitor and report to the board regarding compliance with this
chapter and rules adopted under this chapter. The chief compliance
officer shall ensure that all grant proposals comply with this
chapter and rules adopted under this chapter before the proposals
are submitted to the board for approval.
(c) The board may:
(1) establish ad hoc advisory committees as necessary
to carry out the board's duties under this chapter;
(2) adopt and use an official seal;
(3) solicit and accept gifts or grants, and contract
with any entity;
(4) acquire and convey property or an interest in
property;
(5) procure insurance and pay premiums on insurance of
any type, in accounts, and from insurers as the board considers
necessary and advisable to accomplish any of the commission's
purposes;
(6) make grants to public or private persons with an
established presence within this state to encourage economic
development related to space and aerospace;
(7) make grants to enhance the capacity of
institutions of higher education to participate in and support
classified research;
(8) provide matching funding to external funding
provided by relevant federal agencies, private industry, or private
research organizations; and
(9) engage in the planning and implementation of
aerospace-related educational opportunities within this state in
coordination with the Texas Aerospace Research and Space Economy
Consortium established under Subchapter G.
SUBCHAPTER C. STRATEGIC PLAN
Sec. 482.201. STRATEGIC PLAN. (a) The commission shall
develop and annually update a strategic plan for the promotion of
space, aeronautics, and aviation economic development in this
state.
(b) The strategic plan must include a list of potential
projects that further the purpose of the commission, and, for each
project:
(1) the estimated total cost for completion, including
a potential state matching cost; and
(2) an assessment of the availability of external
funding sources.
(c) The strategic plan may include any other information the
commission determines is relevant to furthering the purpose of the
commission.
(d) The board shall submit the strategic plan to the
governor, the lieutenant governor, and the speaker of the house of
representatives not later than December 31 of each year.
SUBCHAPTER D. SPACE EXPLORATION AND AERONAUTICS RESEARCH FUND
Sec. 482.301. SPACE EXPLORATION AND AERONAUTICS RESEARCH
FUND; ESTABLISHMENT. (a) The space exploration and aeronautics
research fund is established to provide grants to eligible entities
as provided by this chapter.
(b) The fund is a trust fund outside the treasury with the
comptroller and administered by the commission.
(c) The fund is composed of:
(1) gifts, grants, and donations provided to the
commission; and
(2) money from any source designated by the
legislature.
Sec. 482.302. SPACE EXPLORATION AND AERONAUTICS RESEARCH
FUND; GRANTS. (a) Using money available in the fund, the
commission may provide grants to eligible entities described by
Subsection (b) for the purposes of:
(1) development of emerging technologies required for
any aspect of human space flight;
(2) research involving any aspect of space exploration
and space flight;
(3) workforce training to promote space exploration
and space flight;
(4) curation of post-mission materials involved in
space exploration and space flight; and
(5) development of infrastructure useful or necessary
for the establishment or maintenance of a spaceport.
(b) The following entities are eligible for a grant made
under this subchapter:
(1) a business or nonprofit entity involved in the
space exploration, research, or aeronautics industry; and
(2) a governmental entity with which the commission
has entered into an intergovernmental agreement for that purpose.
(c) The board shall comply with the provisions of this
chapter in developing the procedures for administration and
approval of grants through the fund.
(d) The commission shall provide written notification to
the Legislative Budget Board not later than the 30th day after the
date a grant award is made from the fund.
SUBCHAPTER E. ETHICS AND AUDIT
Sec. 482.401. CONFLICT OF INTEREST. (a) The board shall
adopt conflict-of-interest rules to govern members of the board and
commission employees.
(b) A board member or commission employee shall recuse
himself or herself, as provided by Section 482.402, if the board
member or employee, or a person who is related to the board member
or employee within the second degree of affinity or consanguinity,
has a professional or financial interest in an entity receiving or
applying to receive money from the commission.
(c) A person has a financial interest in an entity receiving
or applying to receive money from the commission if the person:
(1) owns or controls, directly or indirectly, an
ownership interest, including sharing in profits, proceeds, or
capital gains, in an entity, or in a foundation or similar
organization affiliated with an entity, receiving or applying to
receive money from the commission; or
(2) could reasonably foresee that an action or
recommendation by the board or commission could result in a
financial benefit to the person.
(d) Nothing in this subchapter limits the authority of the
board to adopt additional conflict-of-interest standards.
Sec. 482.402. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
(a) If a board member has a conflict of interest as described by
Section 482.401 regarding an application that comes before the
board for review or other action, the board member shall:
(1) provide written notice to the executive director
and the presiding officer of the board or the next ranking member of
the board if the presiding officer has the conflict of interest;
(2) disclose the conflict of interest in an open
meeting of the board; and
(3) recuse himself or herself from participating in
the review, discussion, deliberation, and vote on the application
and from accessing information regarding the matter to be decided.
(b) If a commission employee has a conflict of interest
described by Section 482.401 regarding an application that comes
before the employee for review or other action, the employee shall:
(1) provide written notice to the executive director
of the conflict of interest; and
(2) recuse himself or herself from participating in
the review of the application and be prevented from accessing
information regarding the matter to be decided.
(c) A board member or commission employee with a conflict of
interest may seek a waiver as provided by Section 482.403.
(d) A board member or commission employee who reports a
potential conflict of interest or another impropriety or
self-dealing of the member or employee and who fully complies with
the recommendations of the general counsel and recusal requirements
is considered in compliance with the conflict-of-interest
provisions of this subchapter. The member or employee is subject to
other applicable laws, rules, requirements, and prohibitions.
(e) A board member or commission employee who intentionally
violates this section is subject to removal from further
participation in the commission's review process.
Sec. 482.403. EXCEPTIONAL CIRCUMSTANCES REQUIRING
PARTICIPATION; INVESTIGATION OF UNREPORTED CONFLICT OF INTEREST.
(a) The board shall adopt rules governing the waiver of the
conflict-of-interest requirements of this subchapter under
exceptional circumstances for a board member or commission
employee. The rules must:
(1) authorize the executive director or a board member
to propose granting a waiver by submitting to the presiding officer
of the board a written statement about the conflict of interest, the
exceptional circumstance requiring the waiver, and any proposed
limitations to the waiver;
(2) require a proposed waiver to be publicly reported
at a meeting of the board;
(3) require a majority vote of the board members
present and voting to grant a waiver; and
(4) require the commission to retain documentation of
each waiver granted.
(b) The board shall adopt rules governing the investigation
and consequences of unreported conflicts of interest.
Sec. 482.404. CODE OF CONDUCT. (a) The board shall adopt a
code of conduct applicable to each board member and commission
employee.
(b) The code of conduct at a minimum must include provisions
prohibiting the member, the employee, or the member's or employee's
spouse from:
(1) accepting or soliciting any gift, favor, or
service that could reasonably influence the member or employee in
the discharge of official duties or that the member, employee, or
spouse of the member or employee knows or should know is being
offered with the intent to influence the member's or employee's
official conduct;
(2) accepting employment or engaging in any business
or professional activity that would reasonably require or induce
the member or employee to disclose confidential information
acquired in the member's or employee's official position;
(3) accepting other employment or compensation that
could reasonably impair the member's or employee's independent
judgment in the performance of official duties;
(4) making personal investments or having a financial
interest that could reasonably create a substantial conflict
between the member's or employee's private interest and the member's
or employee's official duties;
(5) intentionally or knowingly soliciting, accepting,
or agreeing to accept any benefit for exercising the member's
official powers or performing the member's or employee's official
duties in favor of another;
(6) leasing, directly or indirectly, any property,
capital equipment, employee, or service to any entity that receives
a grant from the commission;
(7) submitting a grant application for funding by the
board;
(8) serving on the board of directors of an
organization established with a grant from the commission; or
(9) serving on the board of directors of a grant
recipient.
SUBCHAPTER F. PROCEDURE FOR MAKING AWARDS
Sec. 482.501. RULES FOR GRANT AWARD PROCEDURE. (a) The
board shall adopt rules regarding the procedure for awarding grants
to an applicant under this chapter, including a procedure for the
Texas Aerospace Research and Space Economy Consortium to make
recommendations to the board for grant awards.
(b) The board may not award a grant to an applicant who has
made a gift or grant to the commission or a nonprofit organization
established to provide support to the commission.
Sec. 482.502. MULTIYEAR PROJECTS. The board may grant
money for a multiyear project. The board shall specify the total
amount of money approved to fund the multiyear project. The total
amount specified is considered for purposes of this subchapter to
have been awarded in the state fiscal year that the project is
approved by the board. The board shall distribute only the money
that will be expended during that fiscal year. The board shall
distribute the remaining grant money as the money is needed in each
subsequent state fiscal year.
Sec. 482.503. PREFERENCE FOR TEXAS SUPPLIERS. The board
shall establish standards to ensure that grant recipients purchase
goods and services from suppliers in this state to the extent
reasonably possible, in a good faith effort to achieve a goal of
more than 50 percent of those purchases from suppliers in this
state.
Sec. 482.504. GRANT EVALUATION. (a) The executive
director shall determine the grant review process under this
section. The executive director may terminate grants that do not
meet contractual obligations.
(b) The executive director shall report at least annually to
the board on the progress and continued merit of each grant funded
by the commission.
(c) The board shall establish and implement reporting
requirements to ensure that each grant recipient complies with the
terms and conditions in the grant contract, including verification
of the amounts of matching money dedicated to the research that is
the subject of the grant award to the grant recipient.
(d) The commission shall implement a system to:
(1) track the dates on which grant recipient reports
are due and are received by the commission; and
(2) monitor the status of any required report that is
not timely submitted to the commission by a grant recipient.
Sec. 482.505. GRANT RECORDS. The commission shall maintain
complete records of:
(1) the review of each grant application submitted to
the board, including an application reviewed in accordance with
rules adopted under this chapter, even if the grant application is
not funded by the board or is withdrawn after submission;
(2) each grant recipient's financial reports,
including the amount of matching money dedicated to the research
specified for the grant award;
(3) each grant recipient's progress reports; and
(4) the board's review of the grant recipient's
financial reports and progress reports.
SUBCHAPTER G. TEXAS AEROSPACE RESEARCH AND SPACE ECONOMY
CONSORTIUM
Sec. 482.601. DEFINITIONS. In this subchapter:
(1) "Consortium" means the Texas Aerospace Research
and Space Economy Consortium.
(2) "Executive committee" means the executive
committee of the consortium.
Sec. 482.602. SUNSET PROVISION. The consortium is subject
to Chapter 325 (Texas Sunset Act). Unless continued in existence as
provided by that chapter, the consortium is abolished and this
subchapter expires September 1, 2032.
Sec. 482.603. ESTABLISHMENT; PURPOSE. The Texas Aerospace
Research and Space Economy Consortium is established to:
(1) identify research opportunities for entities
within this state that:
(A) strengthen this state's proven leadership in
civil, commercial, and military aerospace activity;
(B) enhance this state's position in aeronautics
research and development, astronautics, space commercialization,
and space flight infrastructure; and
(C) enhance the integration of the space,
aeronautics, astronautics, and aviation industries into this
state's economy; and
(2) provide funding and research recommendations to
the commission.
Sec. 482.604. CONSORTIUM COMPOSITION. The consortium is
composed of:
(1) each institution of higher education; and
(2) any other entity that the executive committee
considers necessary.
Sec. 482.605. ADMINISTRATIVE ATTACHMENT. The consortium is
administratively attached to the office of the governor for the
purpose of receiving and administering appropriations and other
funds under this subchapter. The office of the governor is not
responsible for providing to the consortium staff, human resources,
contract monitoring, purchasing, or any other administrative
support services.
Sec. 482.606. EXECUTIVE COMMITTEE COMPOSITION. (a) The
consortium is governed by an independent executive committee
composed of the following nine members:
(1) two members appointed by the governor;
(2) two members appointed by the lieutenant governor;
(3) two members appointed by the speaker of the house
of representatives;
(4) the chancellor of The Texas A&M University System
or the chancellor's designee;
(5) the chancellor of The University of Texas System
or the chancellor's designee; and
(6) the president of Rice University or the
president's designee.
(b) In making appointments under Subsection (a), the
governor, the lieutenant governor, and the speaker of the house of
representatives, respectively, shall:
(1) prioritize appointing individuals with experience
in:
(A) aeronautics;
(B) space economic development; and
(C) academic engagement with the space economy;
and
(2) ensure that the appointments reflect, to the
extent possible, the ethnic and geographic diversity of this state.
(c) A vacancy on the executive committee is filled in the
same manner as the initial appointment.
(d) The executive committee shall:
(1) elect a presiding officer from among the members
of the committee; and
(2) meet at the call of the presiding officer.
Sec. 482.607. GIFTS, GRANTS, AND DONATIONS. The executive
committee may solicit and accept on behalf of the consortium gifts,
grants, or donations from any public or private source for the
purpose of carrying out this subchapter.
Sec. 482.608. GENERAL DUTIES. (a) The executive committee
shall:
(1) develop and execute a comprehensive statewide
strategic plan to further the purposes of the consortium;
(2) gather and coordinate recommendations from
consortium members on funding and research opportunities in
accordance with the purposes of the consortium; and
(3) establish procedures and policies for the
administration of the consortium, including:
(A) procedures for documenting compliance by
members of the committee and consortium and consortium staff with
applicable laws governing conflicts of interest;
(B) designation of a member of the committee as
the committee's liaison to the commission; and
(C) procedures for entering into contracts with
The Texas A&M University System as necessary for that system to
provide administrative and staff support to the consortium.
(b) A member of the consortium may participate in consortium
fact-finding and strategic planning and the formation of
recommendations for purposes of Subsections (a)(1) and (a)(2).
Before assisting the executive committee as provided by this
subsection, a member of the consortium must designate a liaison to
the executive committee to represent that member.
Sec. 482.609. BIENNIAL REPORT. Not later than December 31
of each even-numbered year, the executive committee shall submit to
the commission a written report that includes for that biennium:
(1) the activities and objectives of the consortium;
(2) a synopsis of the funding and research
opportunities identified by the consortium;
(3) legislative recommendations, if any;
(4) prospective grants or funding the consortium
members expect to receive, if any; and
(5) research accomplishments associated with the
consortium, if any.
SECTION 2. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3447 was passed by the House on May 1,
2023, by the following vote: Yeas 128, Nays 16, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3447 on May 23, 2023, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3447 on May 28, 2023, by the following vote: Yeas 125,
Nays 11, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3447 was passed by the Senate, with
amendments, on May 16, 2023, by the following vote: Yeas 29, Nays
2; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3447 on May 28, 2023, by the following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor