Bill Text: TX SB2367 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the creation of programs and funding for investment in technology industries.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Natural Resources & Economic Development [SB2367 Detail]
Download: Texas-2023-SB2367-Introduced.html
88R13798 MLH-D | ||
By: Campbell | S.B. No. 2367 |
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relating to the creation of programs and funding for investment in | ||
technology industries. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle F, Title 4, Government Code, is amended | ||
by adding Chapter 490J to read as follows: | ||
CHAPTER 490J. FUNDING FOR TECHNOLOGY INVESTMENT | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 490J.001. DEFINITIONS. In this chapter: | ||
(1) "Committee" means the Texas Technology Investment | ||
Committee. | ||
(2) "Fund" means the Texas technology investment fund. | ||
(3) "Institution of higher education" has the meaning | ||
assigned by Section 61.003, Education Code. | ||
Sec. 490J.002. PURPOSES. The fund is established under | ||
this chapter to develop and diversify the economy of this state by: | ||
(1) investing in innovative technology and | ||
industries; and | ||
(2) attracting, creating, or expanding private sector | ||
entities that will promote a substantial increase in high quality | ||
jobs. | ||
Sec. 490J.003. ELIGIBLE TECHNOLOGY INDUSTRIES. A | ||
technology industry participant is eligible for funding under this | ||
chapter if the activity to be funded: | ||
(1) will produce products that compete with Chinese | ||
companies that provide information and communications technology | ||
and services; and | ||
(2) either: | ||
(A) will result in the creation of high quality | ||
new jobs in this state, immediately or over a longer period; or | ||
(B) has the potential to result in a medical or | ||
scientific breakthrough. | ||
SUBCHAPTER B. TEXAS TECHNOLOGY INVESTMENT COMMITTEE | ||
Sec. 490J.051. COMPOSITION OF COMMITTEE. The Texas | ||
Technology Investment Committee is composed of 17 members. | ||
Sec. 490J.052. APPOINTMENT BY GOVERNOR; NOMINATIONS. (a) | ||
The governor shall appoint to the committee individuals nominated | ||
as provided by Subsection (b). | ||
(b) The following persons may nominate one or more | ||
individuals who are industry leaders in this state or who are | ||
nationally recognized researchers from public or private | ||
institutions of higher education in this state for appointment to | ||
the committee: | ||
(1) the Texas Higher Education Coordinating Board; | ||
(2) a president of a public or private institution of | ||
higher education in this state; | ||
(3) the members of the Texas Workforce Commission; | ||
(4) a representative of the governor's office involved | ||
in economic development activities; | ||
(5) a representative of the lieutenant governor's | ||
office involved in economic development activities; | ||
(6) a representative of the office of the speaker of | ||
the house involved in economic development activities; and | ||
(7) other persons considered appropriate by the | ||
governor. | ||
(c) The governor may prescribe a date after which a | ||
nomination under Subsection (b) for appointment for the next term | ||
will not be considered. | ||
(d) If an insufficient number of qualified individuals are | ||
nominated as provided by Subsection (b) before the date set by the | ||
governor under Subsection (c), the governor may appoint any | ||
qualified individual to the board for that term. | ||
Sec. 490J.053. PRESIDING MEMBER. The governor shall | ||
appoint a presiding member of the committee. | ||
Sec. 490J.054. TERMS. Members of the committee serve | ||
two-year terms, subject to the pleasure of the governor. | ||
Sec. 490J.055. COMMITTEE STAFF AND FUNDING. Necessary | ||
staff and funding for the committee shall be provided by: | ||
(1) the office of the governor; | ||
(2) the Texas Higher Education Coordinating Board; | ||
(3) the Texas Education Agency; | ||
(4) the Texas Workforce Commission; | ||
(5) another public entity represented by a committee | ||
member; and | ||
(6) gifts, grants, and donations for overhead expenses | ||
to the entities listed in Subdivisions (1)-(5). | ||
Sec. 490J.056. RECOMMENDATIONS FOR FUNDING. (a) The | ||
committee shall make recommendations, through peer review and | ||
evaluation processes established by the committee, to the governor, | ||
lieutenant governor, and speaker of the house of representatives | ||
for the award of money from the fund as provided by this chapter. | ||
(b) The committee may establish advisory panels of | ||
knowledgeable individuals from industry, state government, or | ||
academic occupations to assist in peer review activities under this | ||
chapter. | ||
Sec. 490J.057. CONFIDENTIALITY. Information collected by | ||
the governor's office, the committee, or the committee's advisory | ||
panels concerning the identity, background, finance, marketing | ||
plans, trade secrets, or other commercially or academically | ||
sensitive information of an individual or entity being considered | ||
for an award from the fund is confidential unless the individual or | ||
entity consents to disclosure of the information. | ||
SUBCHAPTER C. TEXAS TECHNOLOGY INVESTMENT FUND | ||
Sec. 490J.101. TEXAS TECHNOLOGY INVESTMENT FUND. (a) The | ||
Texas technology investment fund is a dedicated account in the | ||
general revenue fund. | ||
(b) The following amounts shall be deposited in the fund: | ||
(1) any amounts appropriated by the legislature for | ||
the fund; | ||
(2) benefits realized from a project undertaken with | ||
money from the fund, as provided by a contract entered into under | ||
Section 490J.102; | ||
(3) gifts, grants, and other donations received for | ||
the fund; and | ||
(4) interest earned on the investment of money in the | ||
fund. | ||
(c) The fund may be used only for the purposes described by | ||
Section 490J.002. | ||
(d) The committee may solicit and accept gifts and grants | ||
for the fund from public and private entities. | ||
(e) The fund may be temporarily used by the comptroller for | ||
cash management purposes. | ||
(f) The administration of the fund is considered to be a | ||
trusteed program within the office of the governor. The governor | ||
may negotiate on behalf of the state regarding awarding, by grant, | ||
money appropriated from the fund. The governor may award money | ||
appropriated from the fund only with the express written prior | ||
approval of the lieutenant governor and speaker of the house of | ||
representatives. | ||
(g) Before awarding a grant under this chapter, the governor | ||
shall enter into a written agreement with the entity to be awarded | ||
the grant money. An agreement may specify that: | ||
(1) if all or any portion of the amount of the grant is | ||
used to build a capital improvement: | ||
(A) the state retains a lien or other interest in | ||
the capital improvement in proportion to the percentage of the | ||
grant amount used to pay for the capital improvement; and | ||
(B) the recipient of the grant shall, if the | ||
capital improvement is sold: | ||
(i) repay to the state the grant money used | ||
to pay for the capital improvement, with interest at the rate and | ||
according to the other terms provided by the agreement; and | ||
(ii) share with the state a proportionate | ||
amount of any profit realized from the sale; and | ||
(2) if, as of a date certain provided in the agreement, | ||
the grant recipient has not used grant money awarded under this | ||
chapter for the purposes for which the grant was intended, the | ||
recipient shall repay that amount and any related interest | ||
applicable under the agreement to the state at the agreed rate and | ||
on the agreed terms. | ||
Sec. 490J.102. ALLOCATION OF PROCEEDS. (a) The contract | ||
between the governor and a recipient awarded a grant under this | ||
chapter shall provide for the distribution of royalties, revenue, | ||
or other financial benefits realized from the commercialization of | ||
intellectual or real property developed from any grant awarded from | ||
the fund. To the extent authorized by law and not in conflict with | ||
another agreement, the contract shall appropriately allocate by | ||
assignment, licensing, or other means the royalties, revenue, or | ||
other financial benefits among identifiable collaborating parties | ||
and in a specified percentage to this state for deposit in the fund. | ||
(b) The contract under Subsection (a) shall also specify | ||
other matters considered necessary by the governor, lieutenant | ||
governor, and speaker of the house of representatives. | ||
SUBCHAPTER D. INVESTMENTS IN ELIGIBLE TECHNOLOGY | ||
Sec. 490J.151. USE OF MONEY FOR INVESTMENT IN PROJECTS. (a) | ||
Amounts may be awarded from the fund as provided by this chapter for | ||
eligible technology projects with a demonstrable economic benefit | ||
to this state. | ||
(b) The committee shall recommend proposals eligible for | ||
funding under this section to the governor, lieutenant governor, | ||
and speaker of the house of representatives. | ||
Sec. 490J.152. PRIORITY FOR FUNDING. In awarding money | ||
from the fund under this chapter, priority shall be given to | ||
proposals that: | ||
(1) involve technology fields that have a reasonable | ||
probability of enhancing this state's national and global economic | ||
competitiveness; or | ||
(2) have a demonstrable economic development benefit | ||
to this state by attracting technology industries to relocate to | ||
this state. | ||
Sec. 490J.153. GUARANTEE OF ACTION BY PARTICIPATING ENTITY. | ||
(a) An entity that receives funding under this chapter shall | ||
guarantee by contract with the governor's office that the entity | ||
will perform specific actions expected to provide benefits to this | ||
state. | ||
(b) If an entity fails to perform an action guaranteed by | ||
contract under Subsection (a) before a time specified by the | ||
contract, the entity shall return to the fund the money received by | ||
the entity under this chapter. | ||
Sec. 490J.154. AUTHORIZED EXPENSES. (a) A person awarded | ||
money from the fund under this chapter may use the money to expedite | ||
commercialization that will lead to an increase in high quality | ||
jobs in this state and shall use the money in accordance with a | ||
contract between the person and the committee. | ||
(b) Authorized expenses under this section include salaries | ||
and benefits, travel, consumable supplies, other operating | ||
expenses, contracted research and development, capital equipment, | ||
construction or renovation of state or private facilities, and | ||
workforce training. | ||
SECTION 2. (a) As soon as practicable after the effective | ||
date of this Act, a person seeking to nominate an individual for | ||
appointment to the Texas Technology Investment Committee under | ||
Section 490J.052, Government Code, as added by this Act, shall make | ||
any nominations. | ||
(b) The governor shall appoint the Texas Technology | ||
Investment Committee as required by Section 490J.052, Government | ||
Code, as added by this Act, on or before September 1, 2023, or as | ||
soon as practicable after giving persons nominating individuals for | ||
appointment to the committee a reasonable time to make any | ||
nominations. | ||
SECTION 3. 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. |