By: Button, Rodriguez of Travis, Ashby, H.B. No. 26
      Springer, Parker, et al.
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to state economic development measures, including
  administration of the Texas Enterprise Fund, creation of the
  Economic Incentive Oversight Board and the governor's university
  research initiative, abolishment of the Texas emerging technology
  fund and certain programs administered by the Texas Economic
  Development Bank, and renaming the Major Events trust fund to the
  Major Events Reimbursement Program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  TRUSTEED PROGRAMS WITHIN OFFICE OF GOVERNOR
         SECTION 1.01.  Section 481.078, Government Code, is amended
  by amending Subsections (c), (d-1), (e), (e-1), (f), and (k) and
  adding Subsections (e-2), (e-3), (m), and (n) 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.
         (d-1)  The fund may be used for the Texas homeless housing
  and services program administered by the Texas Department of
  Housing and Community Affairs under Section 2306.2585. The
  governor may transfer appropriations from the fund to the Texas
  Department of Housing and Community Affairs to fund the Texas
  homeless housing and services program. Subsections (e-2) [(e-1)],
  (f), (f-1), (f-2), (g), (h), (h-1), (i), and (j) and Section 481.080
  do not apply to a grant awarded for a purpose specified by this
  subsection.
         (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.
         (e-1)  The governor may award money appropriated from the
  fund only with the 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 31st [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.
         (e-2) [(e-1)]  To be eligible to receive a grant under this
  section, the entity must:
               (1)  be in good standing under the laws of the state in
  which the entity was formed or organized, as evidenced by a
  certificate issued by the secretary of state or the state official
  having custody of the records pertaining to entities or other
  organizations formed under the laws of that state; and
               (2)  owe no delinquent taxes to a taxing unit of this
  state.
         (e-3)  An entity seeking a grant is ineligible to receive the
  grant if, during the period beginning on the 90th day before the
  date on which the entity applies for the grant and ending on the
  date the grant is to be awarded, the entity:
               (1)  offers, confers, or agrees to confer a benefit, as
  defined by Section 36.01, Penal Code, with a value that exceeds $500
  in a calendar year on an officer or employee with the authority to
  award the grant; or
               (2)  makes political contributions, as defined by
  Section 251.001, Election Code, that in the aggregate exceed $500
  in a calendar year to an officer or employee with the authority to
  award the grant.
         (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.
         (k)  To encourage the development and location of small
  businesses in this state, the governor shall make [consider making]
  grants from the fund:
               (1)  to recipients that are small businesses in this
  state that commit to using the grants to create additional jobs;
               (2)  to recipients that are small businesses from
  outside the state that commit to relocate to this state; or
               (3)  for individual projects that create 100 or fewer
  additional jobs.
         (m)  The office of the governor shall adopt rules for the
  operation of the trusteed program established under this section.
  The rules must include:
               (1)  forms and procedures for applications for and the
  award of grants;
               (2)  procedures for evaluating grant applications;
               (3)  provisions governing the grant agreement process; 
               (4)  methods and procedures for monitoring grant
  recipients and projects or activities for which a grant is awarded
  from the fund to determine whether and to what extent the grant
  recipients comply with job creation performance targets, capital
  investment commitments, or other specified performance targets in
  the grant agreement, including requirements that grant recipients
  provide to the office periodic compliance updates; 
               (5)  document retention requirements for grant
  recipients that are consistent with applicable state law; and
               (6)  conflict of interest provisions to ensure that
  persons involved in the operation of the program, including persons
  involved in evaluating applications for or awarding grants from the
  fund or in monitoring grant recipients or determining compliance
  with the terms of grant agreements, do not have a substantial
  interest in any grant recipient or grant awarded from the fund.
         (n)  A grant recipient that, during the period beginning on
  the date the grant is awarded and ending on the 180th day after the
  date the grant is awarded, takes an action described by Subsection
  (e-3)(1) or (2) shall repay the grant to the state.
         SECTION 1.02.  Section 481.079, Government Code, is amended
  by amending Subsections (a) and (a-1) and adding Subsection (d) to
  read as follows:
         (a)  Before the beginning of each regular session of the
  legislature, the governor shall submit to the lieutenant governor,
  the speaker of the house of representatives, and each other member
  of the legislature a report on grants made under Section 481.078
  that states:
               (1)  the number of direct jobs each recipient committed
  to create in this state, categorized by region and qualified census
  tract;
               (2)  the number of direct jobs each recipient created
  in this state, categorized by region and qualified census tract;
               (3)  the median wage of the jobs each recipient created
  in this state, categorized by region and qualified census tract;
               (4)  the amount of capital investment each recipient
  committed to expend or allocate per project in this state,
  categorized by region and qualified census tract;
               (5)  the amount of capital investment each recipient
  expended or allocated per project in this state, categorized by
  region and qualified census tract;
               (6)  the total amount of grants made to each recipient;
               (7)  the average amount of money granted in this state
  for each job created in this state by grant recipients, categorized
  by region and qualified census tract;
               (8)  the number of jobs created in this state by grant
  recipients in each sector of the North American Industry
  Classification System (NAICS); [and]
               (9)  of the number of direct jobs each recipient
  created in this state, the number of positions created that provide
  health benefits for employees, categorized by region and qualified
  census tract; and
               (10)  the typical anticipated or actual duration of the
  jobs created by each grant recipient.
         (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.
         (d)  In this section:
               (1)  "Qualified census tract" has the meaning assigned
  by Section 143(j), Internal Revenue Code of 1986 (26 U.S.C. Section
  143(j)).
               (2)  "Region" means the central region, gulf coast and
  east region, lower south region, or north and northeast region of
  this state, as designated by the office.
         SECTION 1.03.  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 1.04.  Subchapter C, Chapter 490, Government Code,
  is amended by adding Section 490.104 to read as follows:
         Sec. 490.104.  MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
  UP AND FINAL LIQUIDATION. (a) In this section, "state's emerging
  technology investment portfolio" means:
               (1)  the equity positions in the form of stock or other
  security the governor took, on behalf of the state, in companies
  that received awards under the Texas emerging technology fund; and
               (2)  any other investments made by the governor, on
  behalf of the state, in connection with an award made under the
  Texas emerging technology fund.
         (b)  The Texas Treasury Safekeeping Trust Company shall
  manage and wind up the state's emerging technology investment
  portfolio. The trust company shall wind up the portfolio in a
  manner that, to the extent feasible, provides for the maximum
  return on the state's investment while also ensuring the return of
  the state's investment. In managing those 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. The trust company may recover its
  reasonable and necessary costs incurred in the management of the
  portfolio, including costs incurred in the retaining of
  professional or technical advisors, from the earnings on the
  investments in the portfolio.
         (c)  Any realized proceeds or other earnings from the sale of
  stock or other investments in the state's emerging technology
  investment portfolio, less the amount permitted to be retained for
  payment of its costs for managing the portfolio as provided by
  Subsection (b), shall be remitted by the Texas Treasury Safekeeping
  Trust Company to the comptroller for deposit in the general revenue
  fund.
         (d)  The Texas Treasury Safekeeping Trust Company has any
  power necessary to accomplish the purposes of this section.
         (e)  On final liquidation of the state's emerging technology
  investment portfolio, the Texas Treasury Safekeeping Trust Company
  shall promptly notify the comptroller of that occurrence. As soon
  as practicable after receiving that notice, the comptroller shall
  verify that the final liquidation has been completed and, if the
  comptroller so verifies, shall certify to the governor that the
  final liquidation of the portfolio has been completed. The governor
  shall post notice of the certification on the office of the
  governor's Internet website.
         SECTION 1.05.  Effective September 1, 2016, Subchapter C,
  Chapter 490, Government Code, is amended by adding Section 490.105
  to read as follows:
         Sec. 490.105.  VALUATION OF STATE'S INVESTMENT PORTFOLIO;
  BIENNIAL REPORT. (a) To the maximum extent practicable, the Texas
  Treasury Safekeeping Trust Company biennially shall perform a
  valuation of the equity positions the governor took, on behalf of
  the state, in companies that received awards under the Texas
  emerging technology fund and of other investments made by the
  governor, on behalf of the state, in connection with an award under
  that fund. The valuation must be based on a methodology that is
  consistent with generally accepted accounting principles.
         (b)  Not later than January 31 of each odd-numbered year, the
  Texas Treasury Safekeeping Trust Company 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 trust company's Internet website a report of any valuation
  performed under this section during the preceding state fiscal
  year.
         SECTION 1.06.  The heading to Chapter 490, Government Code,
  is amended to read as follows:
  CHAPTER 490. WINDING UP CONTRACTS AND STATE'S INVESTMENT PORTFOLIO
  IN CONNECTION WITH AWARDS FROM TEXAS [FUNDING FOR] EMERGING
  TECHNOLOGY FUND
         SECTION 1.07.  Section 490.001(4), Government Code, is
  amended to read as follows:
               (4)  "Award" means:
                     (A)  for purposes of former Subchapter D, an
  investment in the form of equity or a convertible note;
                     (B)  for purposes of former Subchapter E, an
  investment in the form of a debt instrument;
                     (C)  for purposes of former Subchapter F, a grant;
  or
                     (D)  other forms of contribution or investment as
  recommended by the former Texas Emerging Technology Advisory
  Committee [committee] and approved by the governor, lieutenant
  governor, and speaker of the house of representatives before
  amendment of this chapter by the 84th Legislature, Regular Session,
  2015.
         SECTION 1.08.  The heading to Section 490.005, Government
  Code, is amended to read as follows:
         Sec. 490.005.  REPORT ON AWARDS FROM FUND [ANNUAL REPORT].
         SECTION 1.09.  Section 490.005, Government Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (d) to
  read as follows:
         (a)  Not later than January 31, 2016 [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 for each preceding state
  fiscal year the following information regarding awards made under
  the fund [during each preceding state fiscal year]:
               (1)  the total number and amount of awards made;
               (2)  the number and amount of awards made under former
  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, has taken [may take] in
  companies that received [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 that received an award from the fund [receiving funding
  under this chapter];
               (2)  an analysis of the number of jobs actually created
  by each project that received an award from the fund [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)  the intended outcomes of projects funded
  under former Subchapter D [during each preceding state fiscal
  year]; and
                     (C)  the actual outcomes of all projects funded
  under former Subchapter D [during each preceding state fiscal
  year], including any financial impact on the state resulting from a
  liquidity event involving a company whose project was funded under
  that subchapter.
         (d)  This section expires September 1, 2017.
         SECTION 1.10.  Effective September 1, 2016, Subchapter A,
  Chapter 490, Government Code, is amended by adding Section 490.0051
  to read as follows:
         Sec. 490.0051.  ANNUAL REPORT ON PROJECTS FUNDED; JOB
  CREATION AND OUTCOMES. (a) Not later than January 31 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 contains for each preceding state
  fiscal year the following information regarding awards made under
  the fund:
               (1)  the total number of jobs actually created by each
  project that received an award from the fund;
               (2)  an analysis of the number of jobs actually created
  by each project that received an award from the fund; 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)  the intended outcomes of all projects funded
  under former Subchapter D; and
                     (C)  the actual outcomes of all projects funded
  under former Subchapter D, including any financial impact on the
  state resulting from a liquidity event involving a company whose
  project was funded under that subchapter.
         (b)  The governor shall exclude from the report information
  that is made confidential by law.
         (c)  This section expires September 1, 2030.
         SECTION 1.11.  Section 490.006, Government Code, is amended
  to read as follows:
         Sec. 490.006.  VALUATION OF INVESTMENTS; [INCLUSION IN]
  ANNUAL REPORT. (a) 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 that received [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:
               (1) [(A)]  may be developed in consultation with the
  comptroller's office; and
               (2) [(B)]  is consistent with generally accepted
  accounting principles[; and
               [(2)     be included with the annual report required under
  Section 490.005].
         (b)  Except as provided by Subsection (c), not later than
  January 31, 2016, 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 of any valuation
  performed under this section during the preceding state fiscal
  year.
         (c)  A valuation performed for the state fiscal year ending
  August 31, 2015, must be included with the report required under
  Section 490.005.
         (d)  This section expires September 1, 2016.
         SECTION 1.12.  The heading to Subchapter B, Chapter 490,
  Government Code, is amended to read as follows:
  SUBCHAPTER B. MISCELLANEOUS PROVISIONS [TEXAS EMERGING TECHNOLOGY
  ADVISORY COMMITTEE]
         SECTION 1.13.  Section 490.057, Government Code, is amended
  to read as follows:
         Sec. 490.057.  CONFIDENTIALITY. (a) Except as provided by
  Subsection (b), information collected by the governor's office, the
  former Texas Emerging Technology Advisory Committee [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 that was [being] considered for or [,
  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 former Texas Emerging Technology Advisory Committee
  [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
  that [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 that [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 1.14.  Section 490.101, Government Code, is amended
  by adding Subsection (b-1) to read as follows:
         (b-1)  The fund may be used only for the purposes described
  by Section 490.104.
         SECTION 1.15.  The following laws are repealed:
               (1)  Sections 490.001(1), (3), and (5), Government
  Code;
               (2)  Sections 490.002 and 490.003, Government Code;
               (3)  Sections 490.051, 490.052, 490.0521, 490.053,
  490.054, 490.055, and 490.056, Government Code;
               (4)  Sections 490.101(c), (d), (e), (f), (f-1), (g),
  (h), and (i), Government Code;
               (5)  Section 490.102, Government Code; and
               (6)  Subchapters D, E, F, and G, Chapter 490,
  Government Code.
         SECTION 1.16.  (a) The Texas emerging technology fund is
  continued solely for the purposes of winding up the contracts
  governing awards from that fund and the state's portfolio of equity
  positions and other investments in connection with awards from that
  fund in accordance with Section 490.104, Government Code, as added
  by this Act. The Texas emerging technology fund is abolished and
  Sections 490.101(a), (b), and (b-1), Government Code, are repealed
  when the comptroller certifies to the governor as provided by
  Section 490.104, Government Code, as added by this Act, that the
  final liquidation of the state's portfolio of equity positions and
  other investments by the Texas Treasury Safekeeping Trust Company
  has been completed. Any unencumbered fund balance remaining when
  the Texas emerging technology fund is abolished may be appropriated
  in accordance with Subsection (a-1) of this section.
         (a-1)  Any unencumbered balance of the Texas emerging
  technology fund may be appropriated only to one or more of the
  following:
               (1)  the Texas Research Incentive Program (TRIP) under
  Subchapter F, Chapter 62, Education Code;
               (2)  the Texas research university fund, subject to
  Subsection (b) of this section;
               (3)  the governor's university research initiative fund
  established under Subchapter H, Chapter 62, Education Code, as
  added by this Act;
               (4)  the Texas Enterprise Fund established under
  Section 481.078, Government Code; and
               (5)  the comptroller for the purposes of expenses
  incurred in managing the state's portfolio of equity positions and
  other investments in connection with awards from the Texas emerging
  technology fund in accordance with Section 490.104, Government
  Code, as added by this article.
         (b)  The authority of the Texas research university fund to
  receive the appropriation described by Subsection (a-1) of this
  section is contingent on passage and enactment of H.B. 1000, or
  similar legislation relating to state support for general academic
  teaching institutions in this state by the 84th Legislature,
  Regular Session, 2015, that renames the existing Texas competitive
  knowledge fund and changes the purposes for which the fund can be
  used.
         (c)  The abolishment by this article of the Texas emerging
  technology fund and the repeal of provisions of Chapter 490,
  Government Code, relating to that fund do not affect the validity of
  an agreement between the governor and an award recipient or a person
  to be awarded money that is entered into under Chapter 490 before
  September 1, 2015.
         (d)  Money that was deposited in the Texas emerging
  technology fund as a gift, grant, or donation under Chapter 490,
  Government Code, and that is encumbered by the specific terms of the
  gift, grant, or donation may be spent only in accordance with the
  terms of the gift, grant, or donation.
         (e)  Money from the Texas emerging technology fund that is
  encumbered because the money is awarded or otherwise obligated by
  agreement before September 1, 2015, but under the terms of the award
  or agreement will not be distributed until a later date shall be
  distributed in accordance with the terms of the award or agreement.
  If the governor determines that the money will not be distributed in
  accordance with the terms of the award or agreement, the governor
  shall certify that fact to the comptroller. On that certification,
  the comptroller shall make that money available in the general
  revenue fund to be used in accordance with legislative
  appropriation.
         (f)  On or after the effective date of this Act, the
  following payments or other amounts shall be sent to the
  comptroller for deposit to the Texas emerging technology fund to be
  used solely for the purposes of winding down the state's portfolio
  of equity positions and other investments as provided by Sections
  490.101(b-1) and 490.104, Government Code, as added by this Act:
               (1)  any royalties, revenues, and other financial
  benefits realized from a project undertaken with money from the
  Texas emerging technology fund, as provided by a contract described
  by Section 490.103, Government Code;
               (2)  any interest or proceeds received as a result of a
  transaction authorized by former Section 490.101(h), Government
  Code;
               (3)  any money returned or repaid to the state by an
  award recipient pursuant to an agreement entered into under former
  Section 490.101(g), Government Code;
               (4)  any money derived from an interest the state
  retained in a capital improvement pursuant to an agreement entered
  into under former Section 490.101(g), Government Code; and
               (5)  any fund money returned by an entity that fails to
  perform an action guaranteed by a contract entered into under
  former Section 490.154 or 490.203, Government Code.
         SECTION 1.17.  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 article, and the office shall retain the minutes for
  the period prescribed by that section.
         SECTION 1.18.  On September 1, 2015, the Texas Emerging
  Technology Advisory Committee established under Subchapter B,
  Chapter 490, Government Code, is abolished.
         SECTION 1.19.  Except as provided by this Act, on September
  1, 2015, the following powers, duties, functions, and activities
  performed by the office of the governor immediately before that
  date are transferred to the Texas Treasury Safekeeping Trust
  Company:
               (1)  all powers, duties, functions, and activities
  related to equity positions in the form of stock or other security
  the governor has taken, on behalf of the state, in companies that
  received awards under the Texas emerging technology fund before
  September 1, 2015; and
               (2)  all powers, duties, functions, and activities
  related to other investments made by the governor, on behalf of the
  state, in connection with an award made under the Texas emerging
  technology fund before September 1, 2015.
         SECTION 1.20.  If a conflict exists between this Act and
  another Act of the 84th Legislature, Regular Session, 2015, that
  relates to the Texas emerging technology fund, this Act controls
  without regard to the relative dates of enactment.
  ARTICLE 2.  ECONOMIC INCENTIVE OVERSIGHT BOARD
         SECTION 2.01.  Subtitle F, Title 4, Government Code, is
  amended by adding Chapter 490G to read as follows:
  CHAPTER 490G. ECONOMIC INCENTIVE OVERSIGHT BOARD
         Sec. 490G.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the Economic Incentive Oversight
  Board.
               (2)  "Monetary incentive" means a grant, loan, or other
  form of monetary incentive paid from state revenues, including a
  state trust fund, that a business entity or other person may receive
  in exchange for or as a result of conducting an activity with an
  economic development purpose.
               (2-a)  "Rural county" means a county with a population
  of less than 60,000.
               (3)  "Tax incentive" means any exemption, deduction,
  credit, exclusion, waiver, rebate, discount, deferral, or other
  abatement or reduction of state tax liability of a business entity
  or other person that the person may receive in exchange for or as a
  result of conducting an activity with an economic development
  purpose.
         Sec. 490G.002.  ESTABLISHMENT AND COMPOSITION. (a) The
  Economic Incentive Oversight Board is an advisory body composed of
  eight members as follows:
               (1)  two public members appointed by the speaker of the
  house of representatives, one of whom must be from a rural county;
               (2)  two public members appointed by the lieutenant
  governor, one of whom must be from a rural county;
               (3)  two public members appointed by the comptroller;
  and
               (4)  two public members appointed by the governor.
         (b)  In appointing members of the board, each appointing
  officer shall appoint one member who has expertise in the area of
  economic development.
         (b-1)  An individual is ineligible to serve on the board if
  during the 120-day period preceding the date of appointment the
  individual made a political contribution to the governor, the
  comptroller, the lieutenant governor, or the speaker of the house
  of representatives or to a candidate for election or selection to
  any of those offices.
         (c)  A member of the board serves at the pleasure of the
  appointing officer.
         (d)  The board members are entitled to reimbursement for
  actual and necessary expenses incurred by the members in serving on
  the board as provided by Chapter 660 and the General Appropriations
  Act.
         (e)  The office of the governor shall provide administrative
  support and staff to the board.
         Sec. 490G.003.  PRESIDING OFFICER. The governor shall
  appoint the presiding officer of the board.
         Sec. 490G.004.  MEETINGS. (a)  The board shall meet at least
  quarterly at the call of the presiding officer.
         (b)  The board may hold a meeting by telephone conference
  call or videoconference.
         (c)  A board meeting held under Subsection (b) is subject to
  the requirements of Subchapter F, Chapter 551, Government Code,
  except that a quorum of the board is not required to be physically
  present at one location of the meeting.
         Sec. 490G.005.  REVIEW OF CERTAIN STATE INCENTIVE PROGRAMS;
  PERFORMANCE MATRIX.  (a)  The board shall examine the effectiveness
  and efficiency of programs and funds administered by the office of
  the governor, the comptroller, or the Department of Agriculture
  that award to business entities and other persons state monetary or
  tax incentives for which the governor, comptroller, or department
  has discretion in determining whether or not to award the
  incentives.
         (b)  The board shall develop a performance matrix that
  clearly establishes the economic performance indicators, measures,
  and metrics that will guide the board's evaluations of those
  programs and funds.
         (c)  In developing the performance matrix, the board shall
  consider whether the performance matrix should address the
  following factors in relation to each business entity or other
  person that receives a state monetary or tax incentive under a
  program or from a fund described by Subsection (a):
               (1)  economic factors, including:
                     (A)  the investment made by the business entity or
  other person in the economic development activity associated with
  the receipt of the incentive;
                     (B)  the economic output produced by the
  associated economic development activity, including:
                           (i)  direct project gains from economic
  output, including contractor, supplier, and employee spending and
  construction and event expenditures; and
                           (ii)  ancillary or indirect benefits from
  contractor, supplier, and employee spending and construction and
  event expenditures; and
                     (C)  the jobs created by the associated economic
  development activity and:
                           (i)  the wages and benefits paid for those
  jobs; and
                           (ii)  the general locations at which the
  persons hired for those jobs resided at the time the persons were
  hired, disaggregated by country, state, and county;
               (2)  fiscal factors, including:
                     (A)  the amount of state monetary and tax
  incentives received by the business entity or other person;
                     (B)  the additional taxes and other revenue paid
  to this state and to local governments because of the associated
  economic development activity; and
                     (C)  the public service and infrastructure costs
  of the associated economic development activity; and
               (3)  intangible factors the board considers
  appropriate.
         Sec. 490G.006.  SCHEDULE OF REVIEW; RECOMMENDATION TO
  LEGISLATIVE AUDIT COMMITTEE.  (a)  The board shall develop a
  schedule for the periodic review of each state incentive program or
  fund described by Section 490G.005 for the purposes of making
  recommendations on whether to continue the program or fund or
  whether to improve program or fund effectiveness and efficiency.  
  The board shall review and make recommendations to the legislature
  regarding each program or fund according to the review schedule.
         (b)  After conducting a review of a state incentive program
  or fund under this chapter, the board may recommend to the
  legislative audit committee that an audit of the program or fund be
  included in the audit plan under Section 321.013.
         Sec. 490G.007.  ANNUAL REPORT. Not later than January 1 of
  each year, the board shall submit to the lieutenant governor, the
  speaker of the house of representatives, and each standing
  committee of the senate and house of representatives with primary
  jurisdiction over economic development a report containing
  findings and recommendations resulting from each review of state
  incentive programs and funds conducted by the board under this
  chapter during the preceding calendar year.
         Sec. 490G.008.  CONFLICTS OF INTEREST. (a)  A member of the
  board who has a substantial interest in a business entity or other
  person that previously applied for or received a state monetary or
  tax incentive from a program or fund subject to review by the board
  shall disclose that interest in writing to the board and the Texas
  Ethics Commission.
         (b)  A board member who has a business, commercial, or other
  relationship, other than an interest described by Subsection (a),
  that could reasonably be expected to diminish the person's
  independence of judgment in the performance of the person's
  responsibilities in relation to the board shall disclose the
  relationship in writing to the board and the Texas Ethics
  Commission.
         (c)  A member of the board may not make a political
  contribution to the governor, the comptroller, the lieutenant
  governor, or the speaker of the house of representatives or to a
  candidate for election or selection to any of those offices.
         Sec. 490G.009.  CONFIDENTIALITY OF INFORMATION.  The
  provision of information that is confidential by law to the board
  does not affect the confidentiality of the information.
         SECTION 2.02. (a) As soon as practicable after the effective
  date of this Act, the appointing officials shall appoint members to
  the Economic Incentive Oversight Board established under Chapter
  490G, Government Code, as added by this article.
         (b)  Notwithstanding Section 490G.007, Government Code, as
  added by this article, the Economic Incentive Oversight Board shall
  submit the report required by that section beginning with the
  report due on January 1, 2017.
  ARTICLE 3.  ONLINE INFORMATION AND APPLICATION SYSTEM FOR
  STATE INCENTIVES
         SECTION 3.01.  Subtitle G, Title 10, Government Code, is
  amended by adding Chapter 2301 to read as follows:
  CHAPTER 2301. ELECTRONIC ECONOMIC DEVELOPMENT INCENTIVES
  INFORMATION AND APPLICATION SYSTEM
         Sec. 2301.001.  DEFINITIONS. In this chapter:
               (1)  "Department," "electronic government project,"
  and "state electronic Internet portal" have the meanings assigned
  by Section 2054.003.
               (2)  "Monetary incentive" means a grant, loan, or other
  form of monetary incentive paid from state revenues, including a
  state trust fund, that a business entity or other person may receive
  in exchange for or as a result of conducting an activity with an
  economic development purpose.
               (3)  "State agency" means a department, commission,
  board, office, council, authority, or other state agency in the
  executive branch of state government.
               (4)  "Tax incentive" means any exemption, deduction,
  credit, exclusion, waiver, rebate, discount, deferral, or other
  abatement or reduction of state tax liability of a business entity
  or other person that the person may receive in exchange for or as a
  result of conducting an activity with an economic development
  purpose.
         Sec. 2301.002.  ESTABLISHMENT OF PROJECT.  The department
  shall establish an electronic government project to develop an
  Internet website accessible through the state electronic Internet
  portal that:
               (1)  provides a single location that a business entity
  considering relocating to or expanding in this state may use to
  receive information relating to state monetary and tax incentives
  for which the entity may be qualified;
               (2)  includes an interactive tool that allows a
  business entity to determine whether the entity may be eligible for
  any state monetary or tax incentive in this state;
               (3)  allows, when feasible, the business entity to fill
  out one application for all:
                     (A)  state monetary incentives for which the
  entity may be eligible; and
                     (B)  state tax incentives for which the entity may
  be eligible, other than a tax incentive for which the entity, or a
  transaction involving the entity, qualifies for by operation of
  law; and
               (4)  allows, when feasible, for the application to be
  submitted to each state agency that offers the monetary or tax
  incentive described by Subdivision (3).
         Sec. 2301.003.  ESTABLISHING AND OPERATING PROJECT;
  COORDINATION. In establishing and operating the electronic
  government project under this chapter, the department, in
  coordination with the Texas Economic Development and Tourism Office
  and the comptroller, shall direct, coordinate, and assist state
  agencies in establishing and using:
               (1)  a common electronic application and reporting
  system, including:
                     (A)  a standard format for announcing monetary and
  tax incentive opportunities;
                     (B)  standard data elements for use in creating
  monetary and tax incentive opportunity announcement summaries,
  including existing monetary and tax incentives and search
  functions; and
                     (C)  a common application form for a person to use
  in applying for the following from multiple state agencies:
                           (i)  all state monetary incentives for which
  the entity may be eligible; and
                           (ii)  all state tax incentives for which the
  entity may be eligible, other than a tax incentive for which the
  entity, or a transaction involving the entity, qualifies for by
  operation of law; and
               (2)  a process for:
                     (A)  improving interagency coordination of
  information collection and sharing of data relating to monetary and
  tax incentives; and
                     (B)  improving the timeliness, completeness, and
  quality of applications received by a state agency for monetary and
  tax incentives described by Subdivision (1).
  ARTICLE 4.  PROGRAMS ADMINISTERED BY TEXAS ECONOMIC DEVELOPMENT
  BANK
         SECTION 4.01.  The following laws are repealed:
               (1)  Subchapter N, Chapter 481, Government Code; and
               (2)  Chapter 503, Local Government Code.
         SECTION 4.02.  Section 447.013(i), Government Code, is
  amended to read as follows:
         (i)  A recipient of a grant or loan under this section is
  encouraged to purchase goods and services from small businesses and
  historically underutilized businesses, as those terms are defined
  by former Section 481.191, as that section existed on January 1,
  2015 [Government Code].
         SECTION 4.03.  Section 489.108, Government Code, is amended
  to read as follows:
         Sec. 489.108.  PROGRAMS, SERVICES, AND FUNDS UNDER BANK'S
  DIRECTION. Notwithstanding any other law, the bank shall perform
  the duties and functions of the office with respect to the following
  programs, services, and funds:
               (1)  [the Texas Small Business Industrial Development
  Corporation established under Chapter 503, Local Government Code;
               [(2)]  the capital access program established under
  Section 481.405;
               (2) [(3)]  the Texas leverage fund;
               (3) [(4)     the linked deposit program established under
  Section 481.193;
               [(5)]  the enterprise zone program established under
  Chapter 2303;
               (4) [(6)]  the industrial revenue bond program;
               (5) [(7)]  the defense economic readjustment zone
  program established under Chapter 2310;
               (6) [(8)]  the Empowerment Zone and Enterprise
  Community grant program established under Section 481.025; and
               (7) [(9)]  the renewal community program.
         SECTION 4.04.  Section 39.909(a), Utilities Code, is amended
  to read as follows:
         (a)  In this section, "small business" and "historically
  underutilized business" have the meanings assigned by former
  Section 481.191, Government Code, as that section existed on
  January 1, 2015.
         SECTION 4.05.  Section 52.256(a), Utilities Code, is amended
  to read as follows:
         (a)  In this section, "small business" and "historically
  underutilized business" have the meanings assigned by former
  Section 481.191, Government Code, as that section existed on
  January 1, 2015.
         SECTION 4.06.  (a) The Texas Economic Development Bank shall
  reject any application for a linked deposit loan submitted to the
  bank before the effective date of this Act for which a linked
  deposit has not been made in accordance with Subchapter N, Chapter
  481, Government Code, as that subchapter existed immediately before
  being repealed by this article.
         (b)  Notwithstanding the repeal by this article of
  Subchapter N, Chapter 481, Government Code, Subchapter N is
  continued in effect for the limited purpose of allowing the Texas
  Economic Development Bank to administer linked deposits made before
  the effective date of this Act and to pursue the bank's remedies
  under that subchapter if:
               (1)  a recipient of a loan to which a deposit is linked
  defaults on the loan; or
               (2)  a lending institution that makes a loan for which a
  linked deposit is made fails to comply with that subchapter.
         SECTION 4.07.  As soon as practicable after the effective
  date of this Act, the Texas Economic Development Bank shall send to
  the comptroller for deposit in the general revenue fund any revenue
  or other money of the Texas Small Business Industrial Development
  Corporation held in financial institutions as provided by Section
  503.055, Local Government Code, as that section existed immediately
  before that section's repeal by this article.
  ARTICLE 5. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
         SECTION 5.01.  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)  "Advisory board" means the governor's university
  research initiative advisory board.
               (2)  "Distinguished researcher" means a researcher who
  is:
                     (A)  a Nobel laureate or the recipient of an
  equivalent honor; or
                     (B)  a member of a national honorific society,
  such as the National Academy of Sciences, the National Academy of
  Engineering, or the Institute of Medicine, or an equivalent
  honorific organization.
               (3)  "Eligible institution" means a general academic
  teaching institution or health-related institution.
               (4)  "Fund" means the governor's university research
  initiative fund established under this subchapter.
               (5)  "General academic teaching institution" has the
  meaning assigned by Section 61.003.
               (6)  "Governing board" has the meaning assigned by
  Section 61.003.
               (7)  "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.
               (8)  "Office" means the Texas Economic Development and
  Tourism Office within the office of the governor.
               (9)  "Private or independent institution of higher
  education" has the meaning assigned by Section 61.003.
         Sec. 62.162.  ADMINISTRATION OF INITIATIVE. (a) The
  governor's university research initiative is administered by the
  Texas Economic Development and Tourism Office within the office of
  the governor.
         (b)  From the governor's university research initiative
  fund, the office shall award matching grants to assist eligible
  institutions in recruiting distinguished researchers.
         (c)  The office may adopt any rules the office considers
  necessary to administer this subchapter.
         Sec. 62.163.  MATCHING GRANTS. (a) An eligible institution
  may apply to the office for a matching grant from the fund. Before
  approval or disapproval of a grant application, the office shall
  consider the recommendation of the advisory board regarding the
  grant proposal. If the office approves a grant application, the
  office shall award to the applicant institution a grant amount
  equal to the amount committed by the institution for the
  recruitment of a distinguished researcher, except as provided by
  Subsection (c)(2).
         (b)  A grant application must identify the source and amount
  of the eligible institution's matching funds and must demonstrate
  that the proposed use of the grant has the support of the
  institution's president and of the institution's governing board,
  the chair of the institution's governing board, or the chancellor
  of the university system, if the institution is a component of a
  university system. An applicant eligible institution may commit
  for matching purposes any funds of the institution available for
  that purpose other than appropriated general revenue.
         (c)  The office may set a deadline for grant applications for
  each state fiscal year. After fully funding approved grant
  applications received during an application period for a state
  fiscal year, the office may reopen applications for that year and:
               (1)  award the full amount of matching funds from the
  fund for new applications; or
               (2)  approve previously disapproved applications
  submitted before the original application deadline for receipt of a
  reduced grant amount.
         (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 by an eligible
  institution to recruit a distinguished researcher or other employee
  from:
               (1)  another eligible institution; or
               (2)  a private or independent institution of higher
  education.
         (f)  The office shall require an application and all
  supporting documentation to be submitted to the office
  electronically in the manner prescribed by the office.
         Sec. 62.164.  GRANT AWARD CRITERIA; PRIORITIES. (a) The
  office may award grants only to grant proposals that involve the
  recruitment of distinguished researchers in the fields of science,
  technology, engineering, mathematics, and medicine. The office
  shall give priority to proposals that:
               (1)  demonstrate a reasonable probability of enhancing
  Texas' national and global economic competitiveness;
               (2)  demonstrate a reasonable probability of creating a
  nationally or internationally recognized locus of research
  superiority or a unique locus of research;
               (3)  are matched with a significant amount of funding
  from a federal or private source that may be transferred to the
  eligible institution;
               (4)  are interdisciplinary and collaborative; or
               (5)  include a strategic plan for intellectual property
  development and commercialization of technology.
         (b)  The office may award a grant to a proposal that:
               (1)  supports the recruitment of a distinguished
  researcher distinguished in, or to be engaged in, basic,
  translational, or applied research; or
               (2)  proposes the recruitment of a distinguished
  researcher for new research capabilities of the eligible
  institution or to expand the institution's existing research
  capabilities.
         (c)  A grant proposal should identify a specific
  distinguished researcher being recruited. In addition to the
  factors considered in evaluating proposals considered a priority
  under Subsection (a), the office may consider:
               (1)  the likelihood that the researcher being recruited
  will not accept a research position with the applicant eligible
  institution without the institution's receipt of a matching grant
  under this subchapter;
               (2)  the extent to which the subject matter of the
  researcher's research offers the opportunity for interdisciplinary
  and collaborative research at the applicant eligible institution
  and with other eligible institutions; and
               (3)  any commercialization track record of the
  researcher being recruited.
         Sec. 62.165.  CONFIDENTIALITY. Information collected or
  obtained by the office or the advisory board concerning the
  identity of a particular distinguished researcher who is the
  subject of a grant proposal under this subchapter is confidential
  unless the researcher and the applicant eligible institution
  consent to disclosure of the information. The information remains
  confidential until the date, if any, on which the researcher enters
  into an employment relationship with the recruiting institution as
  contemplated in the grant proposal.
         Sec. 62.166.  ADVISORY BOARD. (a) The governor's university
  research initiative advisory board is established to assist the
  office with the review and evaluation of applications for funding
  of grant proposals under this subchapter. The advisory board shall
  make recommendations to the office for approval or disapproval of
  those applications.
         (b)  The advisory board must be composed of at least nine
  members appointed by the governor. Of the members of the board:
               (1)  one-third of the members, as nearly as possible,
  must have a background in finance;
               (2)  one-third of the members, as nearly as possible,
  must have an academic background in science, technology,
  engineering, or mathematics; and
               (3)  one-third of the members, as nearly as possible,
  must be public members.
         (c)  Chapter 2110, Government Code, does not apply to the
  size, composition, or duration of the advisory board.
         (d)  A member of the advisory board who is or has been
  employed by, is or has been a party to a contract for any purpose
  with, or is a student or former student of an applicant eligible
  institution may not be involved in the review, evaluation, or
  recommendation of a grant proposal made by that institution.
         (e)  An advisory board member is not required to be a
  resident of this state.
         (f)  Appointments to the advisory board shall be made without
  regard to the race, color, disability, sex, religion, age, or
  national origin of the 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 board or performing
  other official duties authorized by the office.
         Sec. 62.167.  TIMELY ACTION ON APPLICATIONS.  (a)  The
  advisory board shall meet in person or by teleconference to
  consider grant applications under this subchapter and shall strive
  to present to the office the board's recommendation for approval or
  disapproval of an application not later than the 14th day after the
  date the board receives the application.
         (b)  The office shall make a final decision regarding
  approval of a grant application not later than the 14th day after
  the date the office receives the advisory board's recommendation.
         Sec. 62.168.  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:
               (1)  amounts appropriated or otherwise allocated or
  transferred by law to the fund; and
               (2)  gifts, grants, and other donations received for
  the fund.
         (c)  Sections 403.095 and 404.071, Government Code, do not
  apply to the fund.
         (d)  The fund may be used by the office only for the purposes
  of this subchapter, including for necessary expenses incurred in
  the administration of the fund and this subchapter.
  ARTICLE 6. RENAMING OF MAJOR EVENTS TRUST FUND
         SECTION 6.01.  The heading to Section 5A, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 5A.  PAYMENT OF STATE AND MUNICIPAL OR COUNTY
  OBLIGATIONS UNDER[;] MAJOR EVENTS REIMBURSEMENT PROGRAM [TRUST
  FUND].
         SECTION 6.02.  Sections 5A(a-1), (d), (d-1), (e), (f), (g),
  (h), (j), (k), (l), (m), (w), and (y), Chapter 1507 (S.B. 456), Acts
  of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
  Vernon's Texas Civil Statutes), are amended to read as follows:
         (a-1)  An event not listed in Subsection (a)(4) of this
  section is ineligible for funding under this section.  A listed
  event may receive funding through the Major Events Reimbursement
  Program under this section only if:
               (1)  a site selection organization selects a site
  located in this state for the event to be held one time or, for an
  event scheduled to be held each year for a period of years under an
  event contract, or an event support contract, one time each year for
  the period of years, after considering, through a highly
  competitive selection process, one or more sites that are not
  located in this state;
               (2)  a site selection organization selects a site in
  this state as:
                     (A)  the sole site for the event; or
                     (B)  the sole site for the event in a region
  composed of this state and one or more adjoining states;
               (3)  the event is held not more than one time in any
  year; and
               (4)  the amount of the incremental increase in tax
  receipts determined by the comptroller under Subsection (b) of this
  section equals or exceeds $1 million, provided that for an event
  scheduled to be held each year for a period of years under an event
  contract or event support contract, the incremental increase in tax
  receipts shall be calculated as if the event did not occur in the
  prior year.
         (d)  Each endorsing municipality or endorsing county
  participating in the Major Events Reimbursement Program shall remit
  to the comptroller and the comptroller shall deposit into a trust
  fund created by the comptroller and designated as the Major Events
  reimbursement program [trust] fund the amount of the municipality's
  or county's hotel occupancy tax revenue determined under Subsection
  (b)(4) or (b)(5) of this section, less any amount of the revenue
  that the municipality or county determines is necessary to meet the
  obligations of the municipality or county.  The comptroller shall
  retain the amount of sales and use tax revenue and mixed beverage
  tax revenue determined under Subsection (b)(2) or (b)(3) of this
  section from the amounts otherwise required to be sent to the
  municipality under Sections 321.502 and 183.051(b), Tax Code, or to
  the county under Sections 323.502 and 183.051(b), Tax Code, and
  deposit into the [trust] fund the tax revenues, less any amount of
  the revenue that the municipality or county determines is necessary
  to meet the obligations of the municipality or county.  The
  comptroller shall begin retaining and depositing the local tax
  revenues with the first distribution of that tax revenue that
  occurs after the first day of the one-year period described by
  Subsection (b) of this section or at a time otherwise determined to
  be practicable by the comptroller and shall discontinue retaining
  the local tax revenues under this subsection when the amount of the
  applicable tax revenue determined under Subsection (b)(2) or (b)(3)
  of this section has been retained.  The Major Events reimbursement
  program [trust] fund is established outside the state treasury and
  is held in trust by the comptroller for administration of this
  Act.  Money in the [trust] fund may be disbursed by the comptroller
  without appropriation only as provided by this section.
         (d-1)  Not later than the 90th day after the last day of an
  event eligible for funding under the Major Events Reimbursement
  Program and in lieu of the local tax revenues remitted to or
  retained by the comptroller under Subsection (d) of this section, a
  municipality or county may remit to the comptroller for deposit in
  the Major Events reimbursement program [trust] fund other local
  funds in an amount equal to the total amount of local tax revenue
  determined under Subsections (b)(2) through (5) of this
  section.  The amount deposited by the comptroller into the Major
  Events reimbursement program [trust] fund under this subsection is
  subject to Subsection (f) of this section.
         (e)  In addition to the tax revenue deposited in the Major
  Events reimbursement program [trust] fund under Subsection (d) of
  this section, an endorsing municipality or endorsing county may
  guarantee its obligations under an event support contract and this
  section by pledging surcharges from user fees, including parking or
  ticket fees, charged in connection with the event.  An endorsing
  municipality or endorsing county may collect and remit to the
  comptroller surcharges and user fees attributable to the event for
  deposit into the Major Events reimbursement program [trust] fund.
         (f)  The comptroller shall deposit into the Major Events
  reimbursement program [trust] fund a portion of the state tax
  revenue not to exceed the amount determined under Subsection (b)(1)
  of this section in an amount equal to the prevailing state sales tax
  rate [6.25] times the amount of the local revenue retained or
  remitted under this section, including:
               (1)  local sales and use tax revenue;
               (2)  mixed beverage tax revenue;
               (3)  hotel occupancy tax revenue; and
               (4)  surcharge and user fee revenue.
         (g)  To meet its obligations under a game support contract or
  event support contract to improve, construct, renovate, or acquire
  facilities or to acquire equipment, an endorsing municipality by
  ordinance or an endorsing county by order may authorize the
  issuance of notes.  An endorsing municipality or endorsing county
  may provide that the notes be paid from and secured by amounts on
  deposit or amounts to be deposited into the Major Events
  reimbursement program [trust] fund or surcharges from user fees,
  including parking or ticket fees, charged in connection with the
  event.  Any note issued must mature not later than seven years from
  its date of issuance.
         (h)  The funds in the Major Events reimbursement program
  [trust] fund may be used to pay the principal of and interest on
  notes issued by an endorsing municipality or endorsing county under
  Subsection (g) of this section and to fulfill obligations of the
  state or an endorsing municipality or endorsing county to a site
  selection organization under a game support contract or event
  support contract.  Subject to Subsection (k) of this section, the
  obligations may include the payment of costs relating to the
  preparations necessary or desirable for the conduct of the event
  and the payment of costs of conducting the event, including
  improvements or renovations to existing facilities or other
  facilities and costs of acquisition or construction of new
  facilities or other facilities.
         (j)  Not later than the 30th day after the date a request of a
  local organizing committee, endorsing municipality, or endorsing
  county is submitted to the comptroller under Subsection (b-1) of
  this section, the comptroller shall provide an estimate of the
  total amount of tax revenue that would be deposited in the Major
  Events reimbursement program [trust] fund under this section in
  connection with that event, if the event were to be held in this
  state at a site selected pursuant to an application by a local
  organizing committee, endorsing municipality, or endorsing county.
  A local organizing committee, endorsing municipality, or endorsing
  county may submit the comptroller's estimate to a site selection
  organization.
         (k)  The comptroller may make a disbursement from the Major
  Events reimbursement program [trust] fund on the prior approval of
  each contributing endorsing municipality or endorsing county for a
  purpose for which a local organizing committee, an endorsing
  municipality, or an endorsing county or the state is obligated
  under a game support contract or event support contract.  If an
  obligation is incurred under a games support contract or event
  support contract to make a structural improvement to the site or to
  add a fixture to the site for purposes of an event and that
  improvement or fixture is expected to derive most of its value in
  subsequent uses of the site for future events, a disbursement from
  the [trust] fund made for purposes of that obligation is limited to
  five percent of the cost of the improvement or fixture and the
  remainder of the obligation is not eligible for a disbursement from
  the [trust] fund, unless the improvement or fixture is for a
  publicly owned facility.  In considering whether to make a
  disbursement from the [trust] fund, the comptroller may not
  consider a contingency clause in an event support contract as
  relieving a local organizing committee's, endorsing
  municipality's, or endorsing county's obligation to pay a cost
  under the contract.  A disbursement may not be made from the
  [trust] fund that the comptroller determines would be used for the
  purpose of soliciting the relocation of a professional sports
  franchise located in this state.
         (l)  If a disbursement is made from the Major Events
  reimbursement program [trust] fund under Subsection (k), the
  obligation shall be satisfied proportionately from the state and
  local revenue in the [trust] fund.
         (m)  On payment of all state, municipal, or county
  obligations under a game support contract or event support contract
  related to the location of any particular event in the state, the
  comptroller shall remit to each endorsing entity, in proportion to
  the amount contributed by the entity, any money remaining in the
  [trust] fund.
         (w)  Not later than 10 months after the last day of an event
  eligible for disbursements from the Major Events reimbursement
  program [trust] fund for costs associated with the event, the
  comptroller using existing resources shall  complete a study in the
  market area of the event on the measurable economic impact directly
  attributable to the preparation for and presentation of the event
  and related activities.  The comptroller shall post on the
  comptroller's Internet website:
               (1)  the results of the study conducted under this
  subsection, including any source documentation or other
  information relied on by the comptroller for the study;
               (2)  the amount of incremental increase in tax receipts
  for the event determined under Subsection (b) of this section;
               (3)  the site selection organization documentation
  described in Subsection (p)(3) of this section;
               (4)  any source documentation or information described
  under Subsection (i) of this section that was relied on by the
  comptroller in making the determination of the amount of
  incremental increase in tax receipts under Subsection (b) of this
  section; and
               (5)  documentation verifying that:
                     (A)  a request submitted by a local organizing
  committee, endorsing municipality, or endorsing county under
  Subsection (p) of this section is complete and certified as such by
  the comptroller;
                     (B)  the determination on the amount of
  incremental increases in tax receipts under Subsection (b) of this
  section considered the information submitted by a local organizing
  committee, endorsing municipality, or endorsing county as required
  under Subsection (b-1) of this section; and
                     (C)  each deadline established under this section
  was timely met.
         (y)  After the conclusion of an event, the comptroller shall
  compare information on the actual attendance figures provided to
  the comptroller under Subsection (i) of this section with the
  estimated attendance numbers used to determine the incremental
  increase in tax receipts under Subsection (b) of this section.  If
  the actual attendance figures are significantly lower than the
  estimated attendance numbers, the comptroller may reduce the amount
  of a disbursement for an endorsing entity under the Major Events
  reimbursement program [trust] fund in proportion to the discrepancy
  between the actual and estimated attendance and in proportion to
  the amount contributed to the fund by the entity.  The comptroller
  by rule shall define "significantly lower" for purposes of this
  subsection and provide the manner in which a disbursement may be
  proportionately reduced.  This subsection does not affect the
  remittance of any money remaining in the fund in accordance with
  Subsection (m) of this section.
  ARTICLE 7.  EFFECTIVE DATE
         SECTION 7.01.  Except as otherwise provided by this Act,
  this Act takes effect September 1, 2015.