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A BILL TO BE ENTITLED
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AN ACT
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relating to the abolishment of the Texas emerging technology fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 490, Government Code, is |
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amended to read as follows: |
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CHAPTER 490. WINDING UP CONTRACTS AND STATE'S INVESTMENT PORTFOLIO |
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IN CONNECTION WITH AWARDS FROM TEXAS [FUNDING FOR] EMERGING |
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TECHNOLOGY FUND |
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SECTION 2. Subchapter C, Chapter 490, Government Code, is |
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amended by adding Sections 490.104 and 490.105 to read as follows: |
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Sec. 490.104. MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING |
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UP AND FINAL LIQUIDATION. (a) In this section, "state's emerging |
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technology investment portfolio" means: |
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(1) the equity positions in the form of stock or other |
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security the governor took, on behalf of the state, in companies |
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that received awards under the Texas emerging technology fund; and |
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(2) any other investments made by the governor, on |
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behalf of the state, in connection with an award made under the |
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Texas emerging technology fund. |
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(b) The Texas Treasury Safekeeping Trust Company shall |
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manage and wind up the state's emerging technology investment |
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portfolio. The trust company shall wind up the portfolio in a manner |
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that, to the extent feasible, provides for the maximum return on the |
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state's investment. In managing those investments through |
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procedures and subject to restrictions that the trust company |
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considers appropriate, the trust company may acquire, exchange, |
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sell, supervise, manage, or retain any kind of investment that a |
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prudent investor, exercising reasonable care, skill, and caution, |
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would acquire or retain in light of the purposes, terms, |
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distribution requirements, and other circumstances then prevailing |
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pertinent to each investment. The trust company may recover its |
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reasonable and necessary costs incurred in the management of the |
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portfolio from the earnings on the investments in the portfolio. |
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(c) Any realized proceeds or other earnings from the sale of |
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stock or other investments in the state's emerging technology |
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investment portfolio, less the amount permitted to be retained for |
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payment of its costs for managing the portfolio as provided by |
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Subsection (b), shall be remitted by the Texas Treasury Safekeeping |
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Trust Company to the comptroller for deposit in the general revenue |
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fund. |
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(d) The Texas Treasury Safekeeping Trust Company has any |
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power necessary to accomplish the purposes of this section. |
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(e) On final liquidation of the state's emerging technology |
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investment portfolio, the Texas Treasury Safekeeping Trust Company |
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shall promptly notify the comptroller of that occurrence. As soon |
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as practicable after receiving that notice, the comptroller shall |
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verify that the final liquidation has been completed and, if the |
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comptroller so verifies, shall certify to the governor that the |
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final liquidation of the portfolio has been completed. The governor |
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shall post notice of the certification on the office of the |
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governor's Internet website. |
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(f) Any balance remaining in the Texas emerging technology |
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fund on final liquidation by the Texas Treasury Safekeeping Trust |
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Company shall be remitted to the comptroller for deposit in the |
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general revenue fund. |
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Sec. 490.105. CONFIDENTIALITY OF CERTAIN INFORMATION. |
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(a) Except as provided by Subsection (b), information concerning |
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the identity, background, finance, marketing plans, trade secrets, |
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or other commercially or academically sensitive information of an |
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individual or entity that was considered for or received an award |
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from the Texas emerging technology fund is confidential unless the |
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individual or entity consents to disclosure of the information. |
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(b) The following information collected in connection with |
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the Texas emerging technology fund is public information and may be |
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disclosed under Chapter 552, Government Code: |
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(1) the name and address of an individual or entity |
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that received an award from the fund; |
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(2) the amount of funding received by an award |
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recipient; |
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(3) a brief description of the project funded by the |
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award; |
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(4) if applicable, a brief description of the equity |
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position that the governor, on behalf of the state, has taken in an |
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entity that received an award from the fund; and |
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(5) any other information with the consent of: |
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(A) the governor; |
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(B) the lieutenant governor; |
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(C) the speaker of the house of representatives; |
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and |
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(D) the individual or entity that received an |
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award from the fund, if the information relates to that individual |
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or entity. |
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SECTION 3. Section 490.101, Government Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) The fund may be used only for the purposes described |
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by Section 490.104. |
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SECTION 4. The following laws are repealed: |
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(1) Sections 490.101(c), (d), (e), (f), (f-1), (g), |
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(h), and (i), Government Code; |
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(2) Section 490.102, Government Code; and |
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(3) Subchapters A, B, D, E, F, and G, Chapter 490, |
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Government Code. |
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SECTION 5. (a) The Texas emerging technology fund is |
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continued solely for the purposes of winding up the contracts |
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governing awards from that fund and the state's portfolio of equity |
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positions and other investments in connection with awards from that |
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fund in accordance with Section 490.104, Government Code, as added |
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by this Act. The Texas emerging technology fund is abolished and |
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Sections 490.101(a), (b), and (b-1), Government Code, are repealed |
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when the comptroller certifies to the governor as provided by |
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Section 490.104, Government Code, as added by this Act, that the |
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final liquidation of the state's portfolio of equity positions and |
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other investments by the Texas Treasury Safekeeping Trust Company |
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has been completed. |
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(a-1) On or after the effective date of this Act, any |
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unencumbered balance of the Texas emerging technology fund may be |
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appropriated only to one or more of the following: |
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(1) the Texas Research Incentive Program (TRIP) under |
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Subchapter F, Chapter 62, Education Code; |
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(2) the Texas research university fund, subject to |
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Subsection (b) of this section; |
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(3) the Texas Enterprise Fund established under |
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Section 481.078, Government Code; and |
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(4) the comptroller for the purposes of managing the |
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state's portfolio of equity positions and other investments in |
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connection with awards from the Texas emerging technology fund in |
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accordance with Section 490.104, Government Code, as added by this |
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Act. |
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(b) The authority of the Texas research university fund to |
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receive the appropriation described by Subsection (a-1) of this |
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section is contingent on passage and enactment of H.B. 1000, or |
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similar legislation relating to state support for general academic |
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teaching institutions in this state by the 84th Legislature, |
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Regular Session, 2015, that renames the existing Texas competitive |
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knowledge fund and changes the purposes for which the fund can be |
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used. |
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(c) On or after the effective date of this Act, the |
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following payments or other amounts shall be deposited to the |
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credit of the Texas emerging technology fund to be used by the Texas |
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Treasury Safekeeping Trust Company solely for the purposes of |
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winding up the state's portfolio of equity positions and other |
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investments as provided by Sections 490.101(b-1) and 490.104, |
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Government Code, as added by this Act: |
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(1) any royalties, revenues, and other financial |
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benefits realized from a project undertaken with money from the |
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Texas emerging technology fund, as provided by a contract described |
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by Section 490.103, Government Code; |
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(2) any interest or proceeds received as a result of a |
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transaction authorized by former Section 490.101(h), Government |
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Code; |
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(3) any money returned or repaid to the state by an |
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award recipient pursuant to an agreement entered into under former |
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Section 490.101(g), Government Code; |
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(4) any money derived from an interest the state |
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retained in a capital improvement pursuant to an agreement entered |
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into under former Section 490.101(g), Government Code; and |
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(5) any fund money returned by an entity that fails to |
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perform an action guaranteed by a contract entered into under |
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former Section 490.154 or 490.203, Government Code. |
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(d) The abolishment by this Act of the Texas emerging |
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technology fund and the repeal of provisions of Chapter 490, |
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Government Code, relating to that fund do not affect the validity of |
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an agreement between the governor and the recipient of an award |
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awarded under Chapter 490, or a person to be awarded money under |
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that chapter, that is executed before September 1, 2015. |
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(e) Money from the Texas emerging technology fund that is |
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encumbered because the money is awarded or otherwise obligated by |
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agreement before September 1, 2015, but under the terms of the award |
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or agreement will not be distributed before that date shall be |
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distributed from the Texas emerging technology fund in accordance |
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with the terms of the agreement, unless the award recipient and the |
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governor agree otherwise. |
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(f) A regional center of innovation and commercialization |
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established under Section 490.152, Government Code, is abolished on |
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the effective date of this Act. Each center shall transfer to the |
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office of the governor a copy of any meeting minutes required to be |
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retained under Section 490.1521, Government Code, as that section |
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existed immediately before that section's repeal by this Act, and |
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the office shall retain the minutes for the period prescribed by |
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that section. |
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(g) Except as provided by this Act, on September 1, 2015, |
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the following powers, duties, functions, and activities performed |
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by the office of the governor immediately before that date are |
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transferred to the Texas Treasury Safekeeping Trust Company: |
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(1) all powers, duties, functions, and activities |
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related to equity positions in the form of stock or other security |
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the governor has taken, on behalf of the state, in companies that |
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received awards under the Texas emerging technology fund before |
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September 1, 2015; and |
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(2) all powers, duties, functions, and activities |
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related to other investments made by the governor, on behalf of the |
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state, in connection with an award made under the Texas emerging |
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technology fund before September 1, 2015. |
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(h) Notwithstanding the repeal by this Act of provisions of |
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Chapter 490, Government Code, those provisions of Chapter 490 are |
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continued in effect for the limited purpose of winding up contracts |
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governing awards from the Texas emerging technology fund and the |
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state's portfolio of equity positions and other investments in |
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connection with awards from that fund in accordance with Section |
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490.104, Government Code, as added by this Act. |
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SECTION 6. This Act takes effect September 1, 2015. |