HB 1268

relating to the creation of the Texas technology and innovation
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 489, Government Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G.  TEXAS TECHNOLOGY AND INNOVATION PROGRAM
Sec. 489.351.  DEFINITIONS.  In this subchapter:
(1)  "Federal funding program" means the small business
innovation research and small business technology transfer
programs established by 15 U.S.C. Section 638.
(2)  "Program" means the Texas technology and
innovation program established under this subchapter.
Sec. 489.352.  ESTABLISHMENT AND ADMINISTRATION OF PROGRAM.
The office shall establish and administer the Texas technology and
innovation program to foster job creation and economic development
in this state by matching or supplementing money received by a
business entity through the federal funding program.
Sec. 489.353.  ELIGIBILITY.  To be eligible to receive money
under the program, a business entity must:
(1)  meet at least one of the following conditions:
(A)  be organized under the laws of this state;
(B)  maintain a domestic headquarters in this
(C)  maintain at least one manufacturing facility
(D)  have more than half of the entity's employees
(2)  meet all requirements to receive money under the
(3)  not receive concurrent funding from another state
program or fund that serves the same purpose as the program; and
(4)  meet any additional requirements under this
subchapter for the applicable phase under which the business entity
Sec. 489.354.  APPLICATION.  (a) A business entity may apply
to receive money under the program by submitting an application
under oath to the office on a form prescribed by the office. The
(1)  the business entity's name;
(2)  the business entity's business organization
(3)  the business entity's address and any principals
(4)  certification of the information required under
(5)  any other information required by the office.
(b)  In addition to the requirements of Subsection (a), a
business entity must provide to the office, as applicable:
(1)  for "phase zero" or a similar stage of the federal
funding program process, a notification of receipt for an
application for funding under the federal funding program;
(2)  for "phase one" or a similar stage of the federal
(A)  a notice of award to the entity from a funding
agency under the federal funding program;
(B)  a final report for the applicable stage as
required by the federal funding program; and
(C)  a proposal for money under the next stage of
the federal funding program; and
(3)  for "phase two" or a similar stage of the federal
(A)  a notice of award to the entity from a funding
agency under the federal funding program; and
(B)  a final report for the applicable stage as
required by the federal funding program.
Sec. 489.355.  AWARD OF GRANT; LIMITATIONS. (a) The office
may award a "phase zero" grant under this subchapter immediately on
fulfillment of the requirements under Section 489.354(b)(1).
(b)  The office may award a "phase one" grant under this
subchapter immediately on fulfillment of the requirements under
(c)  The office may award a "phase two" grant under this
subchapter immediately on fulfillment of the requirements under
(d)  A business entity may assign a grant received under this
subchapter only with the prior written consent of the office.
(e)  A business entity may not receive more than:
(1)  one grant in each state fiscal year; and
(2)  five grants in each phase under this section.
Sec. 489.356.  FUNDING.  (a)  The office shall award grants
as provided by this subchapter from available money and any
additional money appropriated for purposes of this subchapter.
(b)  The office may solicit and receive gifts, grants, and
donations from any source to provide additional funding for grants
SECTION 2.  As soon as practicable after the effective date
of this Act, the Texas Economic Development and Tourism Office
shall adopt the rules necessary to implement Subchapter G, Chapter
489, Government Code, as added by this Act.
SECTION 3.  (a)  Notwithstanding any other section of this
Act, in a state fiscal year, the Texas Economic Development and
Tourism Office is not required to implement a provision found in
another section of this Act that is drafted as a mandatory provision
imposing a duty on the office to take an action unless money is
specifically appropriated to the office for that fiscal year to
carry out that duty.  The Texas Economic Development and Tourism
Office may implement the provision in that fiscal year to the extent
other funding is available to the office to do so.
(b)  If, as authorized by Subsection (a) of this section, the
Texas Economic Development and Tourism Office does not implement
the mandatory provision in a state fiscal year, the office, in its
legislative budget request for the next state fiscal biennium,
shall certify that fact to the Legislative Budget Board and include
a written estimate of the costs of implementing the provision in
each year of that next state fiscal biennium.
SECTION 4.  This Act takes effect September 1, 2025.