Bill Text: TX HB3160 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to use of money from the Texas Enterprise Fund for certain projects involving the commercialization of property derived from research at or through institutions of higher education.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2017-04-20 - Left pending in committee [HB3160 Detail]

Download: Texas-2017-HB3160-Introduced.html

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85R12614 CLG-D
By: Button H.B. No. 3160

A BILL TO BE ENTITLED
AN ACT
relating to use of money from the Texas Enterprise Fund for certain
projects involving the commercialization of property derived from
research at or through institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 481.078(c) and (f), Government Code,
are amended to read as follows:
(c) Except as provided by Subsections (d) and (d-1), the
fund may be used only for:
(1) economic development, infrastructure development,
community development, job training programs, and business
incentives; and
(2) projects for commercialization of property
derived from research developed at or through public or private
institutions of higher education as provided by Section 481.081.
(f) Before awarding a grant from the fund [under this
section], the governor shall enter into a written agreement with
the entity to be awarded the grant money. If the entity is awarded a
grant for a purpose described by Subsection (c)(1), the agreement
must specify [specifying] that:
(1) if the governor finds that the grant recipient has
not met each of the performance targets specified in the agreement
as of a date certain provided in the agreement:
(A) the recipient shall repay the grant and any
related interest to the state at the agreed rate and on the agreed
terms;
(B) the governor will not distribute to the
recipient any grant money that remains to be awarded under the
agreement; and
(C) the governor may assess specified penalties
for noncompliance against the recipient;
(2) if all or any portion of the amount of the grant is
used to build a capital improvement, the state may:
(A) retain 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) require the recipient of the grant, if the
capital improvement is sold, to:
(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
(3) if, as of a date certain provided in the agreement,
the grant recipient has not used grant money awarded under this
section for the purposes for which the grant was intended, the
recipient shall repay that amount and any related interest to the
state at the agreed rate and on the agreed terms.
SECTION 2. Section 481.079(a-1), Government Code, is
amended to read as follows:
(a-1) For grants awarded for a purpose specified by Section
481.078(d-1) or 481.081, the report must include only the amount
and purpose of each grant.
SECTION 3. Subchapter E, Chapter 481, Government Code, is
amended by adding Section 481.081 to read as follows:
Sec. 481.081. TEXAS ENTERPRISE FUND: GRANT FOR UNIVERSITY
RESEARCH DEVELOPMENT WITH PRIVATE SPONSORSHIP. (a) In this
section:
(1) "Fund" means the Texas Enterprise Fund under
Section 481.078.
(2) "Public or private institution of higher
education" means an institution of higher education or a private or
independent institution of higher education as those terms are
defined by Section 61.003, Education Code.
(b) The governor may provide grants to public or private
institutions of higher education from the fund to supplement other
funding for projects involving the commercialization of
intellectual property or other property derived from research
developed at or through a public or private institution of higher
education. To be eligible for a grant under this section, a project
must be supported by funding provided by one or more private
entities participating in the project, in addition to any funding
provided by the public or private institution of higher education.
(c) The amount of a grant awarded under this section may not
exceed 50 percent of the total amount of investment in the project
provided by the applicable public or private institution of higher
education and the participating private entity or entities.
SECTION 4. This Act takes effect September 1, 2017.