H.B. No. 5174

	AN ACT
	relating to the establishment and administration of the Texas
	Semiconductor Innovation Consortium.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 481, Government Code, is amended by
	adding Subchapter GG to read as follows:
	SUBCHAPTER GG. TEXAS SEMICONDUCTOR INNOVATION CONSORTIUM
	Sec. 481.651.  DEFINITIONS. In this subchapter:
	(1)  "Consortium" means the Texas Semiconductor
	Innovation Consortium.
	(2)  "Executive committee" means the executive
	committee of the consortium.
	(3)  "Fund" means the Texas Semiconductor Innovation
	Fund.
	(4)  "Institution of higher education" has the meaning
	assigned by Section 61.003, Education Code.
	Sec. 481.652.  ESTABLISHMENT; PURPOSES.  (a)  The Texas
	Semiconductor Innovation Consortium is established as an advisory
	panel to the governor and the legislature.
	(b)  The purposes of the consortium are to:
	(1)  leverage the expertise and capacity of
	institutions of higher education, industry, and nonprofit
	stakeholders to develop a comprehensive strategic plan to ensure
	ongoing semiconductor innovation;
	(2)  sustain the leadership of this state in advanced
	semiconductor research, design, and manufacturing;
	(3)  attract public and private investment in this
	state related to research, development, commercialization, and
	manufacturing of semiconductors;
	(4)  identify and expand opportunities for workforce
	training and development related to the research, design, and
	manufacturing of semiconductors; and
	(5)  establish a forum for public and private
	stakeholders across the semiconductor manufacturing industry in
	this state to focus on education, research and development, and
	commercial production.
	Sec. 481.653.  COMPOSITION OF CONSORTIUM. (a) The
	consortium is composed of a designee of each of the following
	institutions of higher education appointed by the office of the
	president of the institution:
	(1)  The University of Texas at Arlington;
	(2)  The University of Texas at Austin;
	(3)  The University of Texas at Dallas;
	(4)  The University of Texas at El Paso;
	(5)  The University of Texas Rio Grande Valley;
	(6)  The University of Texas at San Antonio;
	(7)  Texas A&M University;
	(8)  Prairie View A&M University;
	(9)  the University of Houston;
	(10)  the University of North Texas;
	(11)  Texas Tech University;
	(12)  Texas State University;
	(13)  Texas State Technical College System;
	(14)  Lamar University;
	(15)  Lamar State College - Orange;
	(16)  Lamar State College - Port Arthur;
	(17)  Lamar Institute of Technology;
	(18)  Austin Community College; and
	(19)  Dallas Community College.
	(b)  In addition to the appointments under Subsection (a),
	the executive committee established under Section 481.655 may
	appoint any other entity or individual the executive committee
	considers necessary.
	(c)  In making appointments under Subsections (a) and (b),
	priority shall be given to individuals with experience in
	semiconductor design and manufacturing.
	Sec. 481.654.  ADMINISTRATIVE ATTACHMENT. (a)  The
	consortium is administratively attached to the office of the
	governor.
	(b)  The office shall provide the staff and facilities
	necessary to assist the consortium in performing the consortium's
	duties under this subchapter.
	Sec. 481.655.  EXECUTIVE COMMITTEE COMPOSITION. (a) The
	consortium 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;
	(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; and
	(5)  the chancellor of The University of Texas System
	or the chancellor's designee.
	(b)  In making appointments under Subsection (a), priority
	shall be given to individuals with experience in manufacturing,
	design, industrial development, academic research, and scientific
	research in the field of semiconductors.
	(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 at least two
	representatives from the commercial semiconductor design and
	manufacturing sectors with an established presence in the state are
	appointed to the executive committee.
	Sec. 481.656.  DUTIES OF EXECUTIVE COMMITTEE. (a)  The
	executive committee shall:
	(1)  develop and execute a comprehensive statewide
	strategic plan to further the objectives of the consortium as
	established under Section 481.652;
	(2)  solicit recommendations from consortium members
	on funding and research opportunities related to semiconductor
	research, design, commercialization, and manufacturing;
	(3)  appoint an executive director of the consortium
	and determine the title, functions, duties, powers, and salary for
	the executive director; and
	(4)  prepare and submit the report required by Section
	481.657.
	(b)  The executive director may enter into agreements with
	the office of the governor for staff support services to facilitate
	the work of the consortium.
	Sec. 481.657.  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
	consortium under Section 481.652;
	(2)  a summary of the funding and research
	opportunities identified under Section 481.656(a)(2);
	(3)  any legislative recommendations to further the
	purposes of the consortium;
	(4)  any prospective grants or funding the consortium
	members expect to apply for or receive; and
	(5)  any research accomplishments associated with the
	consortium.
	Sec. 481.658.  TEXAS SEMICONDUCTOR INNOVATION FUND. (a)
	The Texas Semiconductor Innovation 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.
	(b)  Money in the fund may be used to:
	(1)  provide matching funding to state entities,
	including institutions of higher education, for semiconductor
	manufacturing and design projects;
	(2)  award grants to business entities with an
	established presence in this state to encourage economic
	development related to semiconductor manufacturing and design; and
	(3)  subject to Subsection (c), pay for staff support
	services described by Section 481.656(b).
	(c)  The consortium shall request from the Legislative
	Budget Board approval to use money in the fund for the purpose
	described by Subsection (b)(3).  A request under this subsection
	shall be considered approved on the 30th day after receipt by the
	Legislative Budget Board unless expressly disapproved.
	SECTION 2.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2023.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 5174 was passed by the House on May 5,
	2023, by the following vote:  Yeas 128, Nays 17, 1 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 5174 on May 17, 2023, by the following vote:  Yeas 136, Nays 9,
	1 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 5174 was passed by the Senate, with
	amendments, on May 15, 2023, by the following vote:  Yeas 29, Nays
	2.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor