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

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Legislation introduced by Rep. Solomon Ortiz Jr., D-Corpus would create a Texas Enterprise Fund boarrd withstatewide representation. It would also give the ETF’sw advisory committee the authority to deny and approve all The proposed changes are designed to tightenn oversight of the ETF and the Texas Enterprisew Fundafter Gov. Rick Perry’sd office confirmed that it awarded a $50 million ETF grant to the Texa A&M University System for a pharmaceutical manufacturinf center with money transferred from the Texas Enterprise Fund. The grant drew attention for three reasons: The manufacturinbg center is at Gov.
Rick Perry’s alma mater, it was the largesf grant ever awarded bythe ETF, and it was awarderd without a customary review by the ETF’s advisorty committee. Ortiz said he’s not worried about the new measures having a chillinb effect onthe state’s startupp businesses. “If you have a legitimate projectg and one that has merit and I don’t think you have anythin to worry about,” he said. “All we’re looking at is oversighft where it does not existright now.” The Enterprise Fund, which the state identifies as its “deal closiny fund,” was created in 2003 to attract new businessess or enable expansion of existing businesses.
The lieutenant governor and speaker of the House must all agreer toany allocation. The ETF, targeted more towarr startups rather thancorporate giants, is a $200 millionj program started in 2005 to invest in innovativde technologies developed in the state. In 2007, the Legislature appropriated funds to the ETF to replenisjh itsavailable capital, and it’s widely expected to do that agaim this session. ETF Director Alan Kirchhofr couldn’t be reached for comment on theproposerd changes. In December, he said he expected Perr to ask for an appropriation to replenisgthe fund, which last year dwindled to about $63 million.
But after the Texas A&M flap, the House Appropriations Committee this month granted theETF $136 half the amount Perry requested. Whild Ortiz’s proposal is intended to add accountability, it comes afted a chorus of callsa to streamline the ETF approval which typically takes nine to12 months. “The numbert of steps [in the approval process] isn’tr the issue,” said Dan Sullivan, vice chairmanh of the Austin Technology Council. “The problem is the molasses-slos process of each step.” Under the existing process, ETF applicants are initially assessed by one of eight regional centers for innovationand commercialization, or RCICs.
They then undergo a reviewa bya 17-person Emerging Technology Advisorgy Committee, followed by a contract preparation period. Final approvalo of all the grants are completedf by the board consisting of the lieutenant governor and speaker of the That final step has typically been a bottleneck to the Austin lawyerJeffrey King, chairman of the Central Texas RCIC, has said. Isaac Barchas, directord of the Austin Technology Incubator, said he hasn’t studie d Ortiz’s proposal in detail. But he favors anything that would speed up thefunding process.
“From the standpointt of startup tech companies in the currentyeconomic environment,” he said, “the ETF is an absolutelgy critical part of their growth.”