H.B. No. 2457
 
 
 
 
AN ACT
  relating to the Texas Enterprise Fund and the Texas emerging
  technology fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 481.078, Government Code, is amended by
  amending Subsections (e) and (j) and adding Subsections (f-1),
  (f-2), and (h-1) to read as follows:
         (e)  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.  For purposes of this subsection, an award of
  money appropriated from the fund is considered disapproved by the
  lieutenant governor or speaker of the house of representatives if
  that officer does not approve the proposal to award the grant before
  the 91st day after the date of receipt of the proposal from the
  governor. The lieutenant governor or the speaker of the house of
  representatives may extend the review deadline applicable to that
  officer for an additional 14 days by submitting a written notice to
  that effect to the governor before the expiration of the initial
  review period.
         (f-1)  A grant agreement must contain a provision:
               (1)  requiring the creation of a minimum number of jobs
  in this state; and
               (2)  specifying the date by which the recipient intends
  to create those jobs.
         (f-2)  A grant agreement must contain a provision providing
  that if the recipient does not meet job creation performance
  targets as of the dates specified in the agreement, the recipient
  shall repay the grant in accordance with Subsection (j).
         (h-1)  At least 14 days before the date the governor intends
  to amend a grant agreement, the governor shall notify and provide a
  copy of the proposed amendment to the speaker of the house of
  representatives and the lieutenant governor.
         (j)  Repayment of a grant under Subsection (f)(1)(A) shall
  [may] be prorated to reflect a partial attainment of job creation
  performance targets, and may be prorated for a partial attainment
  of other performance targets.
         SECTION 2.  Sections 490.005(a) and (b), Government Code,
  are amended to read as follows:
         (a)  Not later than January 31 [1] of each year, the governor
  shall submit to the lieutenant governor, the speaker of the house of
  representatives, and the standing committee of each house of the 
  legislature with primary jurisdiction over economic development
  matters and post on the office of the governor's Internet website a
  report that includes the following information regarding awards
  made under the fund during each [for the] preceding [three] state
  fiscal year [years]:
               (1)  the total number and amount of awards made;
               (2)  the number and amount of awards made under
  Subchapters D, E, and F;
               (3)  the aggregate total of private sector investment,
  federal government funding, and contributions from other sources
  obtained in connection with awards made under each of the
  subchapters listed in Subdivision (2);
               (4)  the name of each award recipient and the amount of
  the award made to the recipient; and
               (5)  a brief description of the equity position that
  the governor, on behalf of the state, may take in companies
  receiving awards and the names of the companies in which the state
  has taken an equity position.
         (b)  The annual report must also contain:
               (1)  the total number of jobs actually created by each
  project receiving funding under this chapter;
               (2)  an analysis of the number of jobs actually created
  by each project receiving funding under this chapter; and
               (3)  a brief description regarding:
                     (A)  the methodology used to determine the
  information provided under Subdivisions (1) and (2), which may be
  developed in consultation with the comptroller's office;
                     (B) [(1)]  the intended outcomes of projects
  funded under Subchapter D during each [the] preceding [two] state
  fiscal year [years]; and
                     (C) [(2)]  the actual outcomes of all projects
  funded under Subchapter D during each preceding state fiscal year 
  [the fund's existence], including any financial impact on the state
  resulting from a liquidity event involving a company whose project
  was funded under that subchapter.
         SECTION 3.  Subchapter A, Chapter 490, Government Code, is
  amended by adding Section 490.006 to read as follows:
         Sec. 490.006.  VALUATION OF INVESTMENTS; INCLUSION IN ANNUAL
  REPORT. To the maximum extent practicable, the office of the
  governor shall annually perform a valuation of the equity positions
  taken by the governor, on behalf of the state, in companies
  receiving awards under the fund and of other investments made by the
  governor, on behalf of the state, in connection with an award under
  the fund. The valuation must:
               (1)  be based on a methodology that:
                     (A)  may be developed in consultation with the
  comptroller's office; and
                     (B)  is consistent with generally accepted
  accounting principles; and
               (2)  be included with the annual report required under
  Section 490.005.
         SECTION 4.  The heading to Section 490.052, Government Code,
  is amended to read as follows:
         Sec. 490.052.  APPOINTMENT TO COMMITTEE [BY GOVERNOR];
  NOMINATIONS.
         SECTION 5.  Section 490.052, Government Code, is amended by
  amending Subsection (a) and adding Subsections (a-1) and (a-2) to
  read as follows:
         (a)  The governor shall appoint to the committee 13 
  individuals nominated as provided by Subsection (b).
         (a-1)  The lieutenant governor shall appoint two individuals
  to the committee.
         (a-2)  The speaker of the house of representatives shall
  appoint two individuals to the committee.
         SECTION 6.  Subchapter B, Chapter 490, Government Code, is
  amended by adding Section 490.0521 to read as follows:
         Sec. 490.0521.  FINANCIAL STATEMENT REQUIRED. (a)  Each
  member of the committee shall file with the office of the governor a
  verified financial statement complying with Sections 572.022
  through 572.0252 as is required of a state officer by Section
  572.0252.
         (b)  All information obtained and maintained pursuant to
  Subsection (a), including information derived from the financial
  statements, is confidential and is not subject to disclosure under
  Chapter 552, Government Code.
         (c)  The governor, on request or in the normal course of
  official business, shall provide information that is confidential
  under Subsection (b) to the Texas State Auditor's Office.
         (d)  This section does not affect release of information for
  legislative purposes pursuant to Section 552.008, Government Code.
         SECTION 7.  Section 490.054, Government Code, is amended to
  read as follows:
         Sec. 490.054.  TERMS.  (a)  Members of the committee
  appointed by the governor serve staggered two-year terms, subject
  to the pleasure of the governor.
         (b)  Members of the committee appointed by the lieutenant
  governor or the speaker of the house of representatives serve
  two-year terms.
         SECTION 8.  Section 490.056, Government Code, is amended by
  adding Subsections (c), (d), and (e) to read as follows:
         (c)  Each entity recommended by the committee for an award of
  money from the fund as provided by this chapter shall obtain and
  provide the following information to the office of the governor:
               (1)  a federal criminal history background check for
  each principal of the entity;
               (2)  a state criminal history background check for each
  principal of the entity;
               (3)  a credit check for each principal of the entity;
               (4)  a copy of a government-issued form of photo
  identification for each principal of the entity; and
               (5)  information regarding whether the entity or a
  principal of the entity has ever been subject to a sanction imposed
  by the Securities and Exchange Commission for a violation of
  applicable federal law.
         (d)  For purposes of Subsection (c), "principal" means:
               (1)  an officer of an entity; or
               (2)  a person who has at least a 10 percent ownership
  interest in an entity.
         (e)  With each proposal to award funding submitted by the
  governor to the lieutenant governor and speaker of the house of
  representatives for purposes of obtaining prior approval, the
  governor shall provide each officer with a copy of the information
  provided by the appropriate entity under Subsection (c).
         SECTION 9.  Section 490.057, Government Code, is amended to
  read as follows:
         Sec. 490.057.  CONFIDENTIALITY. (a)  Except as provided by
  Subsection (b), information [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, receiving, or having received an award from the fund is
  confidential unless the individual or entity consents to disclosure
  of the information.
         (b)  The following information collected by the governor's
  office, the committee, or the committee's advisory panels under
  this chapter is public information and may be disclosed under
  Chapter 552:
               (1)  the name and address of an individual or entity
  receiving or having received an award from the fund;
               (2)  the amount of funding received by an award
  recipient;
               (3)  a brief description of the project that is funded
  under this chapter;
               (4)  if applicable, a brief description of the equity
  position that the governor, on behalf of the state, has taken in an
  entity that has received an award from the fund; and
               (5)  any other information designated by the committee
  with the consent of:
                     (A)  the individual or entity receiving or having
  received an award from the fund, as applicable;
                     (B)  the governor;
                     (C)  the lieutenant governor; and
                     (D)  the speaker of the house of representatives.
         SECTION 10.  Section 490.101, Government Code, is amended by
  amending Subsection (f) and adding Subsection (f-1) to read as
  follows:
         (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 awards 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.
         (f-1)  For purposes of Subsection (f), an award of money
  appropriated from the fund is considered disapproved by the
  lieutenant governor or speaker of the house of representatives if
  that officer does not approve the proposal to award funding before
  the 91st day after the date of receipt of the proposal from the
  governor.  The lieutenant governor or the speaker of the house of
  representatives may extend the review deadline applicable to that
  officer for an additional 14 days by submitting a written notice to
  that effect to the governor before the expiration of the initial
  review period.
         SECTION 11.  Subchapter D, Chapter 490, Government Code, is
  amended by adding Section 490.1521 to read as follows:
         Sec. 490.1521.  MINUTES OF CERTAIN MEETINGS. (a)  Each
  regional center of innovation and commercialization established
  under Section 490.152, including the Texas Life Science Center for
  Innovation and Commercialization, shall keep minutes of each
  meeting at which applications for funding under this subchapter are
  evaluated. The minutes must:
               (1)  include the name of each applicant recommended by
  the regional center of innovation and commercialization to the
  committee for funding; and
               (2)  indicate the vote of each member of the governing
  body of the regional center of innovation and commercialization,
  including any recusal by a member and the member's reason for
  recusal, with regard to each application reviewed.
         (b)  Each regional center of innovation and
  commercialization shall retain a copy of the minutes of each
  meeting to which this section applies for at least three years.
         SECTION 12.  Section 203.021, Labor Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  Money in the compensation fund may not be transferred to
  the:
               (1)  Texas Enterprise Fund created under Section
  481.078, Government Code; or
               (2)  Texas emerging technology fund established under
  Section 490.101, Government Code.
         SECTION 13.  Section 204.123, Labor Code, is amended to read
  as follows:
         Sec. 204.123.  TRANSFER TO [TEXAS ENTERPRISE FUND,] SKILLS
  DEVELOPMENT FUND, TRAINING STABILIZATION FUND, AND COMPENSATION
  FUND.  (a)  If, on September 1 of a year, the commission determines
  that the amount in the compensation fund will exceed 100 percent of
  its floor as computed under Section 204.061 on the next October 1
  computation date, the commission shall transfer from the holding
  fund created under Section 204.122:
               (1)  [from the first $160 million deposited in the
  holding fund in any state fiscal biennium:
                     [(A)     during the state fiscal biennium ending
  August 31, 2007:
                           [(i)     67 percent to the Texas Enterprise
  Fund created under Section 481.078, Government Code, except that
  the amount transferred under this paragraph may not exceed the
  amount appropriated by the legislature to the Texas Enterprise Fund
  in that biennium; and
                           [(ii)     33 percent to the skills development
  fund created under Section 303.003, except that the amount
  transferred under this paragraph may not exceed the amount
  appropriated by the legislature to the skills development program
  strategies and activities in that biennium; and
                     [(B)]  during any state fiscal biennium beginning
  on or after September 1, 2007, 100 [:
                           [(i)     75 percent to the Texas Enterprise
  Fund created under Section 481.078, Government Code, except that
  the amount transferred under this paragraph may not exceed the
  amount appropriated by the legislature to the Texas Enterprise Fund
  in that biennium; and
                           [(ii)  25] percent to the skills development
  fund created under Section 303.003, except that the amount
  transferred under this subdivision [paragraph] may not exceed the
  amount appropriated by the legislature to the skills development
  program strategies and activities in that biennium; and
               (2)  any remaining amount in the holding fund after the
  distribution under Subdivision (1) to the training stabilization
  fund created under Section 302.101.
         (b)  If, on September 1 of a year, the commission determines
  that the amount in the compensation fund will be at or below 100
  percent of its floor as computed under Section 204.061 on the next
  October 1 computation date, the commission shall transfer to the
  compensation fund as much of the amount in the holding fund as is
  necessary to raise the amount in the compensation fund to 100
  percent of its floor, up to and including the entire amount in the
  holding fund.  The commission shall transfer any remaining balance
  in the holding fund to the [Texas Enterprise Fund, the] skills
  development fund[,] and the training stabilization fund in the
  manner [in the percentages] prescribed by Subsection (a).
         SECTION 14.  Sections 302.101(b) and (c), Labor Code, are
  amended to read as follows:
         (b)  Money in the training stabilization fund may be used in
  a year in which the amounts in the employment and training
  investment holding fund are insufficient to meet the legislative
  appropriation for that fiscal year for [either the Texas Enterprise
  Fund or] the skills development program strategies and activities.
         (c)  Money in the training stabilization fund shall be
  transferred to the [Texas Enterprise Fund and the] skills
  development fund under Subsection (b) not later than September 30.  
  [The transfer under Subsection (b) shall consist of transferring 67
  percent of the money in the training stabilization fund to the Texas
  Enterprise Fund and 33 percent of the money in the training
  stabilization fund to the skills development fund.]  The amount
  transferred from the training stabilization fund may not exceed the
  amounts appropriated to the [Texas Enterprise Fund and] skills
  development program strategies and activities in the fiscal year in
  which the transfer is made.
         SECTION 15.  Sections 481.078(e) and 490.101(f), Government
  Code, as amended by this Act, and Section 490.101(f-1), Government
  Code, as added by this Act, apply only to a proposal for an award
  from the Texas Enterprise Fund or Texas emerging technology fund
  submitted by the governor to the lieutenant governor or speaker of
  the house of representatives for prior approval on or after the
  effective date of this Act. A proposal submitted by the governor
  for prior approval before the effective date of this Act is governed
  by the law in effect on the date the proposal was submitted for that
  approval, and the former law is continued in effect for that
  purpose.
         SECTION 16.  Section 481.078(j), Government Code, as amended
  by this Act, and Sections 481.078(f-1) and (f-2), Government Code,
  as added by this Act, apply only to a grant agreement that is
  entered into on or after the effective date of this Act. A grant
  agreement that is entered into before the effective date of this Act
  is governed by the law in effect on the date the agreement was
  entered into, and the former law is continued in effect for that
  purpose.
         SECTION 17.  (a) The terms of the members of the Texas
  Emerging Technology Advisory Committee serving immediately before
  the effective date of this Act expire September 1, 2011.
         (b)  As soon as practicable after this Act takes effect, the
  governor, lieutenant governor, and speaker of the house of
  representatives shall appoint members to the Texas Emerging
  Technology Advisory Committee established under Subchapter B,
  Chapter 490, Government Code, in a manner that complies with that
  subchapter, as amended by this Act.
         (c)  At the first meeting of members of the Texas Emerging
  Technology Advisory Committee established under Subchapter B,
  Chapter 490, Government Code, as amended by this Act, occurring on
  or after September 1, 2011, the members appointed by the governor
  shall draw lots to determine which six members will serve a term
  expiring September 1, 2012, and which seven members will serve a
  term expiring September 1, 2013.
         SECTION 18.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2457 was passed by the House on April
  21, 2011, by the following vote:  Yeas 148, Nays 0, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 2457 on May 21, 2011, 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. 2457 on May 29, 2011, by the following vote:  Yeas 145,
  Nays 2, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2457 was passed by the Senate, with
  amendments, on May 16, 2011, by the following vote:  Yeas 31, Nays
  0; 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.
  2457 on May 29, 2011, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor