Bill Text: TX HB29 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the funding of certain activities related to the commercialization of emerging technologies.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2015-04-02 - Left pending in committee [HB29 Detail]
Download: Texas-2015-HB29-Introduced.html
By: Springer | H.B. No. 29 |
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relating to the funding of certain activities related to the | ||
commercialization of emerging technologies. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 62, Education Code, is amended by adding | ||
Subchapter H to read as follows: | ||
SUBCHAPTER H. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE | ||
Sec. 62.161. DEFINITIONS. In this subchapter: | ||
(1) "Distinguished researcher" means a researcher | ||
with a national reputation who is a Nobel laureate or is a member | ||
of, or holds promise of election to, a national honorific society, | ||
such as the National Academy of Sciences, the National Academy of | ||
Engineering, or the Institute of Medicine. | ||
(2) "Eligible institution" means a general academic | ||
teaching institution or a health-related institution. | ||
(3) "Fund" means the governor's university research | ||
initiative fund. | ||
(4) "General academic teaching institution" has the | ||
meaning assigned by Section 61.003. | ||
(5) "Private or independent institution of higher | ||
education" has the meaning assigned by Section 61.003. | ||
(6) "Health-related institution" means a "medical and | ||
dental unit" as defined by Section 61.003 and any other public | ||
health science center, public medical school, or public dental | ||
school established by statute or in accordance with Chapter 61. | ||
(7) "Office" means the Texas Economic Development and | ||
Tourism Office within the office of the governor. | ||
(8) "Governing Board" as the meaning assigned by | ||
Section 61.003 | ||
Sec. 62.162. ADMINISTRATION. (a) The initiative is | ||
administered by the Texas Economic Development and Tourism Office | ||
within the office of the governor. | ||
(b) From money appropriated from the governor's university | ||
research initiative fund, the office shall award matching grants to | ||
assist eligible institutions in recruiting distinguished | ||
researchers. | ||
Sec. 62.163. MATCHING GRANTS. (a) An eligible institution | ||
may apply to the office for a matching grant from the fund. For an | ||
approved proposal, the office shall award to the institution an | ||
amount equal to the amount committed by the institution for the | ||
recruitment of a distinguished researcher, except as provided by | ||
Subsection (b). | ||
(b) A grant proposal must identify the source and amount of | ||
the institution's matching funds and must demonstrate that the | ||
proposal has the support of the president of the institution and of | ||
the institution's governing board or that of board's chair, or | ||
chancellor. The institution may commit to the match any funds of the | ||
institution available for that purpose other than appropriated | ||
general revenue. | ||
(c) For awards in each fiscal year, the office may set a | ||
deadline for applications for that year. After fully funding | ||
awards from the amount available for that year, the office may | ||
reopen applications for full funding or may select timely but | ||
unfunded proposals for a reduced grant. | ||
(d) A matching grant received by an eligible institution | ||
under this subchapter may not be considered as a basis to reduce, | ||
directly or indirectly, the amount of money otherwise appropriated | ||
to the institution. | ||
(e) A matching grant may not be used to recruit a | ||
distinguished researcher from another eligible institution, | ||
private or independent institution of higher education. | ||
Sec. 62.164. AWARDS CRITERIA; PRIORITY. (a) In making | ||
awards, the office shall give priority to proposals for the | ||
recruitment of distinguished researchers in science, technology, | ||
engineering, and mathematics. Within those priority subjects, the | ||
office shall give priority to proposals that demonstrate that the | ||
proposal: | ||
(1) has a probability of enhancing Texas' national and | ||
global economic competitiveness; | ||
(2) has a probability of creating a national or | ||
internationally recognized locus of research superiority or a | ||
unique locus of research; | ||
(3) who has significant funding from federal and/or | ||
private sources that could be transferred to the eligible | ||
institution; | ||
(4) is interdisciplinary and collaborative; or | ||
(5) has a strategic plan for intellectual property | ||
development and commercialization of technology. | ||
(b) A proposal may support the recruitment of researchers | ||
distinguished in, or to be engaged in, basic, translational, or | ||
applied research. A proposal may propose a recruitment for new | ||
research capabilities of the institution or to expand existing | ||
research capabilities. | ||
(c) A proposal should identify a specific distinguished | ||
researcher, in addition to the priorities considered under | ||
Subsection (a), the office may consider: | ||
(1) whether, but for the grant from the fund, the | ||
recruit is likely to go elsewhere; | ||
(2) the extent to which the recruit's research subject | ||
matter offers opportunity for interdisciplinary and collaborative | ||
research at the institution and with other eligible institutions; | ||
and | ||
(3) the commercialization track record of the recruit, | ||
if any. | ||
(d) Any information of a specific distinguished researcher | ||
for recruitment that would tend to identify the recruit, is | ||
confidential until the recruit has entered into an employment | ||
relationship with the institution. | ||
Sec. 62.165. ADVISORY BOARD. (a) The governor shall | ||
appoint an advisory board to review proposals and recommend awards. | ||
(b) The advisory board must be composed of at least nine | ||
members. One-third of the advisory board must have a background in | ||
finance and one-third must have an academic background in science, | ||
technology, engineering, or mathematics. | ||
(c) Chapter 2110, Government Code, does not apply to the | ||
size, composition, or duration of the advisory board. | ||
(d) An advisory board member who is or has been employed by, | ||
or has or has had a contract for any purpose with, a general | ||
academic teaching institution or health-related institution may | ||
not be involved in the review or recommendation of proposals made by | ||
that institution. | ||
(e) An advisory board member is not required to be a | ||
resident of Texas. | ||
(f) Appointments to the advisory board shall be made without | ||
regard to the race, color, disability, sex, religion, age, or | ||
national origin of appointees. | ||
(g) Members of the advisory board serve without | ||
compensation but are entitled to reimbursement for actual and | ||
necessary expenses in attending meetings of the advisory board or | ||
performing other official duties authorized by the office. | ||
(h) Each eligible institution that applies to the office for | ||
a matching grant may address the board directly for 25 minutes, per | ||
matching grant application to discuss the application with the | ||
board. | ||
Sec. 62.166. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE | ||
FUND. (a) The governor's university research initiative fund is a | ||
dedicated account in the general revenue fund. | ||
(b) The fund consists of any amounts appropriated to or | ||
transferred to the fund by the legislature, in addition to any gifts | ||
for purposes of the fund. | ||
(c) Sections 403.095 and 404.071, Government Code, do not | ||
apply to the fund. | ||
Sec. 62.167. WIND-UP OF TEXAS EMERGING TECHNOLOGY FUND. | ||
(a) The governor's university research initiative is the successor | ||
to the Texas emerging technology fund. Awards from that fund, and | ||
contracts governing awards from that fund, shall be wound up in | ||
accordance with this section. | ||
(b) If a contract governing an award from the Texas | ||
emerging technology fund provided for the distribution of | ||
royalties, revenue, or other financial benefits realized from the | ||
commercialization of intellectual or real property developed from | ||
an award from the fund, those financial benefits shall continue to | ||
be distributed in accordance with the terms of the contract unless | ||
the recipient and the governor agree otherwise. Unless otherwise | ||
required by law, royalties or revenue accruing to the state under | ||
such a contract shall be credited to the governor's university | ||
research initiative fund. | ||
(b) If money from the Texas emerging technology fund is | ||
encumbered by contract executed before September 1, 2015, but has | ||
not been distributed before that date, the money shall be | ||
distributed from the governor's university research initiative | ||
fund in accordance with the terms of the contract, unless the | ||
recipient and the governor agree otherwise. | ||
(c) If award money from the Texas emerging technology fund | ||
under a contract executed before September 1, 2015, has been fully | ||
distributed, the entity that received the award is considered to | ||
have fully satisfied the entity's obligations and performed all | ||
specific actions under the terms of the contract governing the | ||
award. The recipient entity shall file with the office a final | ||
report showing the purposes for which the award money has been | ||
expended and, if award money remains unexpended, the purposes for | ||
the recipient will expend the remaining money. The recipient is not | ||
required to return to the state any award money received under the | ||
contract. | ||
(d) The Texas Treasury Safekeeping Trust Company shall | ||
manage the following in accordance with prior law relating to | ||
awards from the Texas emerging technology fund: | ||
(1) equity positions in the form of stock or other | ||
security taken by the governor, on behalf of the state, in companies | ||
receiving awards before September 1, 2015; and | ||
(2) any other investments, excluding grants, made by | ||
the governor on the state's behalf in connection with an award from | ||
the emerging technology fund before September 1, 2015. | ||
(e) The Texas Treasury Safekeeping Trust Company, as soon as | ||
practicable after September 1, 2015, shall begin winding up the | ||
state's portfolio of equity positions and other investments | ||
described by Subsection (d) of this section by selling the stock and | ||
other investments when it is economically advantageous to the state | ||
to do so. The trust company has any power necessary to accomplish | ||
the purpose of this section. In managing these investments through | ||
procedures and subject to restrictions that the trust company | ||
considers appropriate, the trust company may acquire, exchange, | ||
sell, supervise, manage, or retain any kind of investment 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. Proceeds shall be deposited to the | ||
credit of the governor's university research initiative fund, | ||
taking into consideration the expenses of managing and liquidating | ||
the equity positions and other investments. | ||
SECTION 2. (a) Chapter 490, Government Code, is repealed. | ||
(b) The repeal by this Act of Chapter 490, Government Code, | ||
does not affect the validity of an agreement between the governor | ||
and the recipient of an award awarded under Chapter 490, or a person | ||
to be awarded money under that chapter, that is executed before | ||
September 1, 2015. Those agreements shall be performed as provided | ||
by Section 62.167, Education Code, as added by this Act. | ||
(c) A regional center of innovation and commercialization | ||
established under Section 490.152, Government Code, is abolished on | ||
the effective date of this Act. Each center shall transfer to the | ||
office of the governor a copy of any meeting minutes required to be | ||
retained under Section 490.1521, Government Code, as that section | ||
existed immediately before that section's repeal by this Act, and | ||
the office shall retain the minutes for the period prescribed by | ||
that section. | ||
(d) The Texas emerging technology fund is abolished. The | ||
comptroller of public accounts shall transfer any unexpended | ||
balance of that fund to the governor's university research | ||
initiative fund. | ||
SECTION 3. This Act takes effect September 1, 2015. |