Relating to the creation and operation of a science park district in certain counties.

89(R) HB 112 - Senate Committee Report version - Bill Text

By: Button, et al. (Senate Sponsor - Parker)

H.B. No. 112

(In the Senate - Received from the House May 14, 2025;

May 21, 2025, read first time and referred to Committee on Economic

Development; May 25, 2025, reported favorably by the following

vote: Yeas 4, Nays 1; May 25, 2025, sent to printer.)
Click here to see the committee vote

A BILL TO BE ENTITLED

AN ACT

relating to the creation and operation of a science park district in

certain counties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 12, Local Government Code, is

amended by adding Chapter 398 to read as follows:

CHAPTER 398. TEXAS SCIENCE PARK DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 398.001. DEFINITIONS. In this chapter:

(1)

"Board" means the board of directors of a

district.

(2)

"Commission" means the Texas Science Park

Commission.

(3) "Director" means a member of the board.

(4)

"District" means a Texas science park district

created under this chapter.

Sec.

398.002.

APPLICABILITY. This chapter applies only in

a county:

(1) with a population of 800,000 or more; or

(2)

adjacent to a county with a population of 800,000

or more.

Sec.

398.003.

PURPOSE; DECLARATION OF INTENT.

(a) The

creation of a Texas science park district under this chapter is

essential to accomplish the purposes of Section 52-a, Article III,

Texas Constitution, and other public purposes stated in this

chapter.

(b) The purpose of a Texas science park district is to:

(1)

establish an ecosystem that supports the creation

of a resilient domestic supply chain to safeguard both national and

state security;

(2)

promote scientific research and technological

innovation;

(3)

support the establishment and growth of technology

companies;

(4)

promote and encourage commercial development and

workforce development;

(5)

facilitate collaboration between higher

education, the science and technology industry, and government; and

(6) support the development of infrastructure.

(c)

The district will not act as the agent or

instrumentality of any private interest even though the district

will benefit many private interests as well as the public.

SUBCHAPTER B. CREATION OF DISTRICT; TEMPORARY BOARD

Sec.

398.051.

CREATION OF TEXAS SCIENCE PARK DISTRICT. (a)

The owner or owners of territory composed of a number of acres that

is at least equal to the minimum established under Section 398.052

may petition the Texas Economic Development and Tourism Office for

creation of a district for that territory.

(b) A petition described by Subsection (a) must:

(1)

describe the territory to be included in the

proposed district; and

(2)

demonstrate that the territory meets the

requirements of Section 398.052 and any additional requirements

determined by the commission.

(c)

If the Texas Economic Development and Tourism Office

determines that a petition described by Subsection (a) conforms to

the requirements of this chapter and that the creation of the

district would be of benefit to the territory to be included in the

district, the office may approve the creation of the district and

appoint the temporary board in accordance with Section 398.053.

(d)

If the Texas Economic Development and Tourism Office

finds that the petition does not conform to the requirements of this

chapter or that the creation of the district is not of benefit to

the territory in the proposed district, the office shall either

deny the petition or require petitioners to amend the petition.

Sec.

398.052.

REQUIREMENTS FOR DISTRICT TERRITORY. (a)

The territory for which a district may be created under this chapter

must:

(1)

have access to, or an actionable plan to have

access to, reliable, high-capacity electric generation or storage;

(2)

have access to abundant and sustainable water

sources; and

(3)

be located near a major transportation network,

including a major highway, rail line, seaport, or international

airport.

(b)

The commission shall establish a minimum number of acres

that the territory of a district to be created under this chapter

must include at the time a petition is submitted for the creation of

the district.

Sec.

398.053.

TEMPORARY BOARD.

(a) After the Texas

Economic Development and Tourism Office approves the creation of a

district, the office shall request the appointment of a temporary

board of directors for the district to include:

(1)

three temporary directors appointed by the

governor;

(2)

three temporary directors appointed by the

lieutenant governor; and

(3)

three temporary directors appointed by the

governor based on recommendations from the speaker of the house of

representatives.

(b)

The commission shall establish qualifications for

knowledge and experience that a person must possess in order to be

appointed as a temporary director under this section.

(c) The temporary board shall:

(1) develop a strategic plan for the district;

(2) approve initial projects and resource allocation;

(3)

establish policies for the operation and

development of the district; and

(4)

submit to the governor, comptroller, and members

of the legislature a report detailing the activities, expenditures,

and progress of the district on the first and second anniversaries

of the creation of the district.

(d)

The temporary board has all of the powers and duties of a

board elected under Subchapter C.

(e)

The temporary directors shall serve staggered terms of

one or two years. At the first meeting of the temporary board, the

directors shall draw lots to determine which four directors serve a

term of one year and which five directors serve a term of two years.

(f)

A vacancy in the office of temporary director shall be

filled by appointment by the appropriate appointing official.

(g)

An official who appoints a temporary director may

appoint a successor temporary director if the term of the director

expires before the election called for the director's successor

under Section 398.101 is held.

SUBCHAPTER C. DISTRICT ADMINISTRATION

Sec.

398.101.

BOARD OF DIRECTORS; TERMS.

(a) The district

is governed by a board of nine elected directors.

(b) Directors serve staggered two-year terms.

(c)

The temporary board shall call an election for four

director positions to be held on an authorized uniform election

date under Section 41.001, Election Code, as soon as practicable

after the district is created.

The board shall call an election for

the remaining five director positions to be held on an authorized

uniform election date under Section 41.001, Election Code, in the

year following the first election.

(d)

A temporary director, or a successor temporary

director, serves until the date a successor for the director is

elected.

(e)

The election shall be held in accordance with the

Election Code, to the extent not inconsistent with this chapter.

(f)

A vacancy in the office of director shall be filled by

the remaining members of the board for the unexpired term.

Sec.

398.102.

QUALIFICATIONS. To serve as a director, a

person must be at least 18 years old and:

(1)

a qualified voter of the county in which the

district is located;

(2)

an owner of stock, whether beneficial or

otherwise, of a corporate owner of property in the district;

(3)

an owner of a beneficial interest in a trust that

owns property in the district; or

(4)

an agent, employee, or tenant of a person covered

by Subdivision (1), (2), or (3).

Sec.

398.103.

BOND. The board may require an officer or

employee to execute a bond payable to the district and conditioned

on the faithful performance of the person's duties.

Sec.

398.104.

COMPENSATION; EXPENSES.

(a) A director

serves without compensation but may be reimbursed for a reasonable

and necessary expense incurred in performing an official duty.

(b) To receive reimbursement under Subsection (a):

(1)

the director must report the expense to the board;

and

(2) the board must approve the expense.

Sec.

398.105.

REMOVAL OF DIRECTOR. A majority of the

directors, after notice and hearing, may remove a director for

misconduct or failure to carry out the director's duties.

Sec.

398.106.

OFFICERS. The directors shall select from

among the directors a president, a vice president, a secretary, and

any other officers the board considers necessary.

Sec.

398.107.

MEETINGS.

(a) A board shall hold regular

meetings at times to be fixed by the board or special meetings as

necessary.

(b)

The board shall hold its meetings at a designated

meeting place.

Sec.

398.108.

QUORUM; OFFICERS' DUTIES.

(a) Five

directors constitute a quorum and a concurrence of five is

sufficient in any matter relating to the business of the district.

(b)

The president presides at all board meetings and is the

chief executive officer of the district.

(c)

The vice president acts as the president if the

president is incapacitated or absent from a meeting.

(d)

The secretary acts as the president if both the

president and vice president are incapacitated or absent from a

meeting.

(e)

The secretary is responsible for ensuring that all the

records and books of the district are properly kept.

(f)

The board may appoint another director or an employee as

assistant or deputy secretary to assist the secretary. The

assistant or deputy secretary may certify the authenticity of any

record of the district.

Sec. 398.109. BYLAWS. The board may adopt bylaws to govern:

(1)

the time, place, and manner of conducting board

meetings;

(2)

the powers, duties, and responsibilities of the

board's officers and employees;

(3)

the disbursement of money by a check, draft, or

warrant;

(4) the appointment and authority of board committees;

(5) the keeping of accounts and other records; and

(6) any other matter the board considers appropriate.

SUBCHAPTER D. POWERS AND DUTIES

Sec.

398.151.

GENERAL POWERS.

(a) A district has the

powers necessary or convenient to carry out and effect the purposes

and provisions of this chapter, including:

(1)

a power granted to a municipal management district

by Section 375.092 or 375.096, other than a power granted by Section

375.092(h);

(2)

operating education and training programs in

collaboration with a university system or public technical

institute in this state;

(3)

facilitating internships, cooperative education

programs, and workforce development initiatives; and

(4)

entering into agreements and otherwise

collaborating with:

(A)

universities and research institutions in

this state;

(B)

private corporations or companies operating

domestically and internationally, other than a company owned by an

entity affiliated with a country designated as a country of

particular concern in the United States secretary of state's

designations under the International Religious Freedom Act of 1998

(22 U.S.C. Section 6401 et seq.) in effect on September 1, 2025;

(C)

an agency of the United States that

regulates, provides funding for, or promotes science and

technology; and

(D)

a state agency that regulates, provides

funding for, or promotes economic development and workforce

development.

(b)

A district may accept gifts, grants, and donations from

any source, including private and nonprofit organizations.

Sec.

398.152.

DISTRICT PRIORITIES.

(a) A district shall

prioritize the development of state-of-the-art facilities,

including:

(1) research and development centers;

(2) technology incubators and accelerators;

(3) advanced manufacturing facilities; and

(4)

office space for new businesses and technology

firms.

(b)

The district shall adopt guidelines for district

projects to:

(1) minimize environmental impacts;

(2) promote energy efficiency;

(3)

ensure that businesses operating in the district

are not significantly negatively affected by environmental or

physical externalities created by a district project, such as

vibrations; and

(4)

balance the effective functioning of businesses in

the district and national security concerns associated with any

district project that requires:

(A) a secure supply chain;

(B)

protection of infrastructure and other

critical resources; or

(C)

security from threats of terrorism,

cyberattacks, and natural disasters.

Sec.

398.153.

REAL PROPERTY RESTRICTIONS.

(a) The

district may adopt restrictions on the use of real property in the

district.

(b)

A restriction adopted under this section must be

compatible with and equal to or more stringent than a restriction

adopted by each municipality or county that overlaps the territory

in which the restriction is adopted.

Sec.

398.154.

ANNUAL REPORT. The district shall submit to

the governor, comptroller, and members of the legislature an annual

report detailing the activities, expenditures, and progress of the

district.

SUBCHAPTER E.

GENERAL FINANCIAL PROVISIONS

Sec.

398.201.

DISBURSEMENTS AND TRANSFERS OF MONEY. The

board by resolution shall establish the number of directors'

signatures and the procedure required for a disbursement or

transfer of district money.

Sec.

398.202.

MONEY USED FOR PROJECTS OR SERVICES. The

district may acquire, construct, finance, operate, or maintain a

project or service authorized under this chapter using any money

available to the district for that purpose.

SUBCHAPTER F. BONDS

Sec.

398.251.

ISSUANCE OF BONDS. The district may issue

bonds for the purpose of defraying all or part of the cost of any

project for a district purpose.

Sec.

398.252.

MANNER OF REPAYMENT OF BONDS.

The board may

provide for the payment of principal of and interest and redemption

price on bonds:

(1)

by pledging all or any part of the revenues or

other compensation from a project or any part of a project,

including revenues and receipts derived by the district from the

lease or sale of the project;

(2)

by pledging all or any part of any grant, donation,

revenue, or income received or to be received from any public or

private source; or

(3) from a combination of such sources.

Sec.

398.253.

USE OF BOND PROCEEDS. The district may use

bond proceeds to:

(1)

pay interest on the bonds during and after the

period of the acquisition or construction of a project;

(2) pay administrative and operating expenses;

(3)

create a reserve fund for the payment of principal

and interest on the bonds; and

(4)

pay all expenses incurred or that will be incurred

in the issuance, sale, and delivery of the bonds.

SUBCHAPTER G. ACCOUNTABILITY

Sec.

398.301.

AUDIT. Notwithstanding Section

403.0241(b)(2), Government Code, the board shall transmit records

and other information to the comptroller annually for purposes of

providing the comptroller with information on the district to

include in the Special Purpose District Public Information Database

established under Section 403.0241, Government Code.

Sec.

398.302.

PUBLIC MEETINGS. The board shall hold at

least one public meeting each quarter of the calendar year for the

sole purpose of receiving public input on major projects and

initiatives in the district.

SUBCHAPTER H.

TEXAS SCIENCE PARK COMMISSION

Sec.

398.351.

CREATION OF COMMISSION; COMPOSITION.

(a)

The Texas Science Park Commission is established within the Texas

Economic Development and Tourism Office.

(b)

The commission is composed of the following seven

members:

(1)

two members appointed by the governor from a list

of not less than five nominees submitted by the lieutenant

governor;

(2)

two members appointed by the governor from a list

of not less than five nominees submitted by the speaker of the house

of representatives; and

(3)

three members of the public appointed by the

governor.

(c)

In making an appointment under Subsection (b), the

governor may reject one or more of the nominees on a list submitted

to the governor under Subsection (b) and request a new list of

different nominees.

(d)

The governor shall appoint from the seven members

appointed to the commission a chairperson of the commission.

Sec.

398.352.

COMPREHENSIVE PLAN. The commission shall

develop a comprehensive plan for the creation and operation of

districts.

The plan must:

(1)

identify parameters for consideration in

determining potential locations and infrastructure needs for

districts, including vulnerability to natural hazards and access to

water, wastewater treatment, energy generation, and energy

reserves;

(2)

identify potential funding sources for

infrastructure development by districts;

(3)

establish strategies for a district to partner

with academic institutions, industry stakeholders, and local and

state agencies;

(4)

include strategies for the governance and

operations of a district;

(5)

identify available economic development

incentives at the local, state, and national levels and recommend

any necessary legislative measures to allow a district to apply for

and receive those incentives;

(6)

identify any other incentives that could benefit

property located in a district, including ad valorem tax relief,

inclusion in a tax increment reinvestment zone, and other cost

share initiatives and programs;

(7)

identify the types of industry, including support

industries, districts should benefit;

(8)

recommend a limit on the number of districts that

may be created in this state; and

(9)

recommend an expiration date for the authority of

the office to approve the creation of districts under this chapter.

Sec.

398.353.

ADMINISTRATIVE SUPPORT; FUNDING.

(a)

The

Texas Economic Development and Tourism Office shall provide

administrative support and resources, including funding from the

office's budget, as necessary to the commission to support the

fulfillment of the commission's duties.

The office may supplement

the commission's funding with gifts, grants, or donations received

by the office.

(b)

A legislative member of the commission may provide

staffing and administrative support from the member's office to the

commission.

Sec.

398.354.

REPORT. Not later than December 1, 2026, the

commission shall prepare and submit to the governor, the lieutenant

governor, the speaker of the house of representatives, and each

standing committee of each house of the legislature with primary

jurisdiction over business and commerce a report that includes the

commission's plan and recommendations.

Sec.

398.355.

ABOLISHMENT. The commission is abolished

September 1, 2027.

SECTION 2. This Act takes effect September 1, 2025.

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