2001 Texas Legislature Acts Favorably For Tech-Based ED

More than $800 million for science, engineering, research, and commercialization activities



Each year a few state legislatures are more active than others on issues affecting efforts to grow tech-based economies. With $385 million for research infrastructure, $45 million committed to commercialization and seed financing, nearly $150 million for university and life science research, more than $300 million for college scholarships, authorization to create university commercialization centers, a series of tax credits, and $20 million for a biotech park, the recently concluded 77th legislative session in Texas was one of the busiest and most aggressive proponents nationally for technology-based economic development (TBED).



By addressing multiple tech-related initiatives proposed by Governor Rick Perry in his State of the State message, as well as many of its members' own creation, this Texas legislature was the most supportive of science, research and tech-based economic development in recent years for the state.



Sorting through the dozens of TBED bills for all new programs and hundreds of millions of dollars to be invested is a formidable task. Liza Porteus of the National Journal’s Technology Daily reported on more than a dozen information technology and telecommunications-related bills in her June 7 column. Additional highlights pulled from 20 more bills include:



Science, Technology Research Infrastructure



House Bill (HB) 653, the capital appropriations bill for the 2002-2003 biennium, includes nearly $385 million for construction, laboratory expansion, and equipment acquisition for a statewide network of research, science and engineering facilities in the state’s universities and colleges. Seven new or expanded health science research centers, 11 renovated or new buildings dedicated to other sciences, five engineering and industrial technology facilities are financed through the bill. A breakdown of the science and tech-related items identified in HB 653 is available online at: http://www.ssti.org/Digest/Tables/061501t3.htm

Product Development and Commercialization



HB. 2914 reinstitutes the $25 million Product Development Fund, a revolving fund to support the development and commercialization of new or improved products. The bill also recreates the $20 million Small Business Incubator Fund to foster and stimulate the development of small businesses. Both funds were originally created by voter passage of a constitutional amendment in 1989 but were cancelled when the Department of Commerce was abolished in 1997.



The new legislation dictates the funds should give special preference for biotechnology or biomedical projects with the greatest likelihood for commercial success. Additional preference is to be given to SBIR award recipients and new company development.



The bill permits the state to use a variety of funding mechanisms to support the product development and incubator programs including loans, guarantees, licenses/royalties, dividends and equity investments.



Both initiatives will be supported by a single board and will be administered through the State Comptroller’s Office.

University Research, Transfer & Commercialization

• HB 1839/SB 737 creates the Texas Excellence Fund to promote increased research capacity and institutional excellence at the state’s academic institutions. The Fund will be financed by the first $50 million drawn each year from the return on investments of the state’s $2 billion higher education fund. 
• Allocations of nearly $34 million from the fund for the 2003 fiscal year are spelled out in the legislation. Future allocations from the fund will be based on the universities’ abilities to secure additional restricted research funding. Eighty percent of the funds will go to the state’s strongest research universities.
• After nearly a decade of flat funding, the Advanced Research Program/Advanced Technology Program received a $10 million increase, bumping the university-focused programs to a total of $70 million for the biennium.
• Senate Bill (SB) 1190 permits institutions of higher education to establish centers to “manage, transfer, market or otherwise commercialize technology owned by it or in which it owns an interest through license agreements, assignments or other forms of transfer.”
• HB 453 creates the Agriculture Policy Board. Among the board’s responsibilities is to review all agriculture budget issues for compliance with the guidelines and to establish priorities for agriculture-related research and agency budgets related to agriculture.

Energy Technologies

• HB 2845 creates the Fuel Cell Commercialization Initiative, including development of a statewide plan by the state energy office to accelerate the commercialization of fuel cell generation.
• SB 5 creates a state air emissions reduction plan that include funding research and development that is intended to make the state a leader in new technologies that can solve the state's environmental problems while creating new business and industry in the state. The Texas Natural Resource Conservation Commission will administer the program.
• HB 3483 establishes the Clean Coal Technology Council to pursue the research, development, evaluation, and commercialization of clean coal technologies.

Life Science Research & Commercialization

• HB 1716 creates the San Antonio Life Sciences Institute in the University of Texas system. The new institute is to specialize in research and teaching in the Life Sciences.
• HB 2510 creates the Texas Tech Diabetes Research Center at the El Paso campus.
• $27 million is allocated in the budget to support research at four state health science centers.
• The Southeast Texas Biotech Park will be established in Houston with $20 million.
• HB 2700 creates a telemedicine pilot program aimed at enhancing health care services along the Texas border. The Texas Health and Human Services Commission will be responsible for establishing telemedicine and telehealth programs in areas within 150 miles of the Texas-Mexico border.

Math, Science & Engineering Education

• HB 1144 appropriates $30 million for the Governor’s Math Initiative. Proposed in Governor Perry’s State of the State address, the initiative will provide intensive math instruction to Texas students to ensure that they have the skills necessary in a competitive, technology-based economy and will prepare Master Math Teachers.
• HB 704 creates the Careers to Classroom Program to expedite certification and placement K-12 teachers with math, science, computer science or engineering training or work experience. The program will provide $5,000 awards per year for up to two years for teachers and teaching aides accepting positions in these skill areas in economically disadvantaged areas. HB 1721 eases certification for teachers from other states. 
• SB 353 provides $10.2 million for strategies to increase the number of engineering and computer-science graduates in the state through public-private partnerships, mentoring programs and curriculum development.

Workforce Development

• The legislature tripled the funding for the TEXAS Grant I program to nearly $300 million for 2002-03. The increased funding will mean about 65,000 additional Texans will get the opportunity to earn a college degree at a four-year institution.
• SB 596, which calls for the creation of the Toward Excellence, Access, and Success (TEXAS) Grant II, will provide $10 million in grants for eligible students attending technical institutes, junior colleges and public state colleges within Texas. Eligibility for the TEXAS Grant II is based upon demonstrated financial need.
• SB 573 creates a marketing campaign to promote the importance of obtaining a college education. The budget provides $5 million for the effort.
• HB 2593 creates a pilot grant program to support technology training in targeted populations.
• HB 1723 authorizes rural counties to levy taxes to support the creation of county employment development boards for rural economic assistance in career training and development.

A comparison of Governor Perry’s first State of the State Address and passed legislation is available under legislative messages at http://www.governor.state.tx.us/current_events/news_info.htm

The bills mentioned above can be viewed online at the Texas Legislative Service site: http://www.capitol.state.tx.us/capitol.htm