BILL ANALYSIS

H.B. 4751

By: Capriglione

Delivery of Government Efficiency

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that quantum computing could represent the next frontier in technological innovation, with the potential to revolutionize industries from energy and healthcare to finance, manufacturing, logistics, and cybersecurity and that by investing in quantum infrastructure, workforce development, and industry partnerships, Texas can leverage its robust network of research universities, technology companies, and manufacturing capacity to drive economic growth and job creation. The bill author has also informed the committee that creating an initiative to establish and advance the state's position as a national leader in the quantum industry will not only attract new quantum companies and research projects to Texas, but also prepare our state to compete for federal grants, private sector investment, and global partnerships in this emerging space. H.B. 4751 seeks to foster the continued development and growth of the quantum industry in Texas by creating the Texas Quantum Initiative.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4751 amends the Government Code to establish the Texas Quantum Initiative to establish and advance the state's position as a national leader in the quantum industry and accelerate the integration of quantum computing, networking, and sensing technology into the state economy. The bill establishes the following as the purposes of the initiative:

·to leverage the expertise and capacity of regulatory stakeholders and public institutions of higher education and industry to develop a comprehensive strategic plan to ensure the development of quantum technologies in Texas;

·to identify obstacles and provide recommendations to the governor and legislature regarding quantum economic opportunities and technologies;

·to provide strategic leadership with respect to quantum initiatives;

·to identify and expand opportunities for workforce training and development related to the research, design, and manufacturing of quantum computing technology;

·to support existing quantum computing and networking industries in Texas;

·to attract new quantum computing and networking projects and partners to Texas;

·to support the development of a quantum manufacturing supply chain in Texas; and

·to develop a comprehensive strategic plan for the state to ensure ongoing quantum leadership, prioritizing commercial and practical utility, through investments in the necessary foundational infrastructure, including quantum systems and networking equipment, jobs and workforce, and real property.

H.B. 4751 establishes that the initiative is administratively attached to the office of the governor and requires the office to provide the staff and facilities necessary to assist the initiative in performing the initiative's duties. The bill establishes that the initiative is governed by an executive committee composed of three members appointed by the governor, two members appointed by the lieutenant governor, and two members appointed by the speaker of the house of representatives. The bill requires priority to be given to individuals from the quantum design and manufacturing sectors in making such appointments.

H.B. 4751 requires the governor, the lieutenant governor, and the speaker of the house to coordinate to ensure that the members of the executive committee include the following:

·at least one representative from a quantum infrastructure provider who has demonstrated experience in implementing quantum networks in similar settings and deploying leading edge quantum computing systems in third-party data centers; and

·at least one representative of a manufacturer of a quantum computing system with the ability to enable the creation and deployment of quantum solutions with commercial and practical use.

The bill establishes that an executive committee member serves a two-year term and authorizes an executive committee member to be reappointed for additional terms. The bill requires a vacancy on the executive committee to be filled by an appointment from the authority that appointed the former member of the vacant position. In a temporary provision set to expire December 31, 2025, the bill requires the initial executive committee appointments to be made by October 1, 2025.

H.B. 4751 requires the executive committee to hire an executive director and requires the executive director to perform the duties required by the bill and any duty delegated by the committee. The bill requires the executive director to have demonstrated an ability to lead and develop academic, commercial, or governmental partnerships and coalitions. The bill authorizes the executive director to hire staff as necessary to implement the duties of the initiative.

H.B. 4751 requires the executive committee to perform the following duties:

·develop and execute a comprehensive statewide strategic plan to further the purposes of the initiative;

·solicit recommendations from public institutions of higher education, initiative members, and stakeholders on funding and research opportunities related to quantum education and research, design, commercialization, community outreach, and manufacturing projects;

·appoint and determine the salary for an executive director;

·administer funds, including any funds appropriated by the legislature or available in the fund created by the bill, to support quantum design and manufacturing, capital projects, supply chain development, and other initiatives; and

·prepare and submit the biennial report required by the bill.

H.B. 4751 requires the executive committee to develop a strategic plan for the promotion of the quantum economy in Texas. The plan must include the following components:

·a list of potential projects that further the goals of the initiative;

·a list of federal grant opportunities that are related to quantum technology and for which institutions in Texas are eligible to apply;

·an assessment of the availability of external funding sources for each potential project identified under the plan; and

·any other information the executive committee determines is relevant to further the initiative's goals.

The bill requires the executive committee to submit the strategic plan not later than December 31 of each year to the governor, the lieutenant governor, and the speaker of the house of representatives.

H.B. 4751 requires the executive committee, not later than December 1 of each even-numbered year, to prepare and submit to the governor and the Legislative Budget Board (LBB) a written report that outlines activities undertaken to meet the purposes of the initiative, a summary of the funding and research opportunities identified by the executive committee, any legislative recommendations to further the purposes of the initiative, any prospective grants or funding the initiative members expect to apply for or receive, and any research accomplishments associated with the initiative.

H.B. 4751 creates the Quantum University and Business Innovation for Texas Fund as a dedicated account within the general revenue fund consisting of gifts, grants, or donations to the fund and money from any other source designated by the legislature. The bill authorizes money in the fund to be used to do the following:

·provide matching funding to state entities, including public institutions of higher education, for quantum manufacturing and design projects;

·award grants to business entities to encourage economic development related to quantum manufacturing and design projects; and

·pay for staff support services to implement the duties of the initiative.

The bill requires the executive committee to request approval from the LBB to use money in the fund to pay for staff support services. Such a request is considered approved on the 30th day after receipt by the LBB unless expressly denied.

EFFECTIVE DATE

September 1, 2025.