Bill proposes greater oversight for Emerging Technology Fund - Austin Business Journal:

azajir.wordpress.com
Legislation introduced by Rep. Solomon Ortix Jr., D-Corpus Christi, would create a Texas Enterprise Fund boarrd withstatewide representation. It would also give the ETF’zs advisory committee the authority to deny and approveall grants. The proposed changes are designed to tighten oversigh of the ETF and the Texas Enterprise Fundafte Gov. Rick Perry’s office confirmedx that it awardeda $50 million ETF grant to the Texax A&M University System for a pharmaceutical manufacturiny center with money transferred from the Texaxs Enterprise Fund. The grant drew attentiobn for three reasons: The manufacturing center is at Gov.
Rick Perry’w alma mater, it was the largest grant ever awardefd bythe ETF, and it was awardeds without a customary review by the ETF’s advisory Ortiz said he’s not worried about the new measurew having a chilling effect on the state’s startup businesses. “If you have a legitimate project and one that has merirtand potential, I don’t thinlk you have anything to worry about,” he “All we’re looking at is oversight where it does not existt right now.” The Enterprise Fund, which the state identifiese as its “deal closing was created in 2003 to attrac t new businesses or enable expansion of existing businesses.
The lieutenant governor and speaker of the House must all agree toany allocation. The ETF, targetedr more toward startups rather thancorporat giants, is a $200 million program starte d in 2005 to invest in innovative technologies developec in the state. In 2007, the Legislature appropriated fundes to the ETF to replenish itsavailabler capital, and it’s widely expected to do that agai n this session. ETF Director Alan Kirchhoff couldn’tr be reached for comment on the proposed In December, he said he expectefd Perry to ask for an appropriationj to replenish the fund, whicuh last year dwindled to about $63 million.
But afte the Texas A&M flap, the House Appropriations Committeed this month granted theETF $136 half the amount Perry requested. While Ortiz’d proposal is intended to add accountability, it comess after a chorus of calls to streamlined the ETFapproval process, which typicallyg takes nine to 12 months. “The number of stepzs [in the approval isn’t the issue,” said Dan vice chairman of the AustinmTechnology Council.
“The problem is the molasses-slow process of each Under theexisting process, ETF applicants are initially assessed by one of eighrt regional centers for innovation and commercialization, or They then undergo a review by a 17-person Emerging Technolog Advisory Committee, followed by a contract preparation Final approval of all the grantes are completed by the board consisting of the governor, lieutenanrt governor and speaker of the House. That final step has typically been a bottleneck to the Austin lawyerJeffrey King, chairmaj of the Central Texas RCIC, has Isaac Barchas, director of the Austin Technology said he hasn’t studied Ortiz’s proposal in detail.
But he favors anythin that would speed up thefundinbg process. “From the standpoinyt of startup tech companies in the currentyeconomic environment,” he said, “the ETF is an absolutely critical part of their growth.”