Relating to programs to promote economic development in the Office of the Governor and to the repeal of the governor's broadband development council, the official text

H.B. No. 4850

AN ACT

relating to programs to promote economic development in the Office

of the Governor and to the repeal of the governor's broadband

development council.

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

SECTION 1. Section 481.0066(e), Government Code, is amended

to read as follows:

(e) The governor shall appoint an aerospace and aviation

advisory committee consisting of:

(1) seven qualified members to assist in the state's

economic development efforts to recruit and retain aerospace and

aviation jobs and investment; [and]

(2) one qualified member representing a federal entity

or the United States armed forces; and

(3) one member for each active spaceport development

corporation in the state who represents the interests of each

respective spaceport development corporation.

SECTION 2. Section 481.167(a), Government Code, is amended

to read as follows:

(a) The office shall establish the Texas Business and

Community Economic Development Clearinghouse to provide

information and assistance to businesses and communities in the

state [through the use of a statewide toll-free telephone service].

SECTION 3. Section 481.652(b), Government Code, is amended

to read as follows:

(b) The purposes of the consortium are to:

(1) leverage the expertise and capacity of

institutions of higher education, industry, and nonprofit

stakeholders to advise and provide input to the office regarding

[develop] a comprehensive strategic plan to ensure ongoing

semiconductor innovation;

(2) sustain the leadership of this state in advanced

semiconductor research, design, and manufacturing;

(3) provide recommendations to the executive

committee on research and funding opportunities related to

semiconductor research, design, commercialization, and

manufacturing [attract public and private investment in this state

related to research, development, commercialization, and

manufacturing of semiconductors];

(4) identify and advise the executive committee on

[expand] opportunities for workforce training and development

related to the research, design, and manufacturing of

semiconductors; and

(5) establish a forum for public and private

stakeholders across the semiconductor manufacturing industry in

this state to focus on education, research and development, and

commercial production.

SECTION 4. Section 481.654, Government Code, is amended by

amending Subsection (b) and adding Subsection (c) to read as

follows:

(b) The office shall hire or otherwise provide the staff and

provide the facilities necessary to assist the consortium in

performing the consortium's duties under this subchapter.

(c) The office shall hire an executive director. The

executive director shall direct staff assigned to report to the

executive director and assist the consortium in performing the

consortium's duties under this subchapter.

SECTION 5. Section 481.655, Government Code, is amended by

adding Subsections (a-1) and (a-2) to read as follows:

(a-1) An executive committee member appointed under

Subsections (a)(1) through (3) serves a six-year term at the

pleasure of the applicable appointing authority. The terms of

executive committee members appointed under Subsections (a)(1)

through (3) must be staggered so that, to the extent practicable,

the terms of one of those members expires on January 31 of each

odd-numbered year.

(a-2) An executive committee member who is a designee of an

executive committee member described by Subsection (a)(4) or (5)

serves a two-year term.

SECTION 6. Section 481.656(a), Government Code, is amended

to read as follows:

(a) The executive committee shall:

(1) advise and provide input to the office regarding

the [develop and execute a] comprehensive statewide strategic plan

to further the purposes [objectives] of:

(A) the consortium as established under Section

481.652; and

(B) the executive committee under this section;

and

(2) solicit recommendations from consortium members

on funding and research opportunities related to semiconductor

research, design, commercialization, and manufacturing[;

[(3) appoint an executive director of the consortium

and determine the title, functions, duties, powers, and salary for

the executive director; and

[(4) prepare and submit the report required by Section

481.657].

SECTION 7. Subchapter GG, Chapter 481, Government Code, is

amended by adding Section 481.6565 to read as follows:

Sec. 481.6565. STRATEGIC PLAN. The office shall develop a

strategic plan for the promotion of the semiconductor economy in

this state.

SECTION 8. Section 481.657, Government Code, is amended to

read as follows:

Sec. 481.657. BIENNIAL REPORT. Not later than December 1 of

each even-numbered year, the office [executive committee] shall

prepare and submit to the governor and the Legislative Budget Board

a written report that outlines:

(1) activities undertaken to meet the purposes of the

consortium under Section 481.652;

(2) a summary of the funding and research

opportunities identified under Section 481.656(a)(2);

(3) any legislative recommendations to further the

purposes of the consortium;

(4) any prospective grants or funding the consortium

members expect to apply for or receive; and

(5) any research accomplishments associated with the

consortium.

SECTION 9. Section 481.658(b), Government Code, is amended

to read as follows:

(b) Money in the fund may be used to:

(1) provide matching funding to state entities,

including institutions of higher education, for semiconductor

manufacturing and design projects;

(2) award grants to business entities with an

established presence in this state to encourage economic

development related to semiconductor manufacturing and design; and

(3) subject to Subsection (c), pay for staff support

services described by Section 481.654(b) [481.656(b)].

SECTION 10. Section 490D.051(c), Government Code, is

amended to read as follows:

(c) The criteria established under Subsection (b)(1) must

include a requirement that not less than 51 percent of [all or

virtually] all significant parts and processing of a product

originated in this state.

SECTION 11. The following provisions of the Government Code

are repealed:

(1) Section 481.656(b); and

(2) Chapter 490H.

SECTION 12. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 4850 was passed by the House on May 7,

2025, by the following vote: Yeas 139, Nays 3, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 4850 on May 23, 2025, by the following vote: Yeas 115, Nays 18,

2 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 4850 was passed by the Senate, with

amendments, on May 20, 2025, by the following vote: Yeas 30, Nays

1.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor