By Henderson                                          S.B. No. 1586
       74R6660 CLG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the Texas Manufacturing Institute.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 484.002, Government Code, is amended to
    1-5  read as follows:
    1-6        Sec. 484.002.  Duties.  The institute shall:
    1-7              (1)  identify needs within Texas' manufacturing
    1-8  infrastructure, work to meet those needs, promote Texas'
    1-9  manufacturing strengths and capabilities, and communicate the
   1-10  importance of manufacturing to the state's economic future;
   1-11              (2)  develop a program of activities that will improve
   1-12  Texas' manufacturing competitiveness <capabilities> by:
   1-13                    (A)  increasing productivity through <enhancing
   1-14  existing research, educational, and technical training programs
   1-15  aimed at developing and> transferring new technology <manufacturing
   1-16  technologies> and processes;
   1-17                    (B)  increasing access to information and
   1-18  productive use of technology; and
   1-19                    (C)  <at> increasing the skilled and competitive
   1-20  work force in manufacturing;
   1-21              (3)  take all opportunities for cooperation among
   1-22  manufacturing programs of its member institutions;
   1-23              (4)  encourage the development of the statewide
   1-24  manufacturing program among its member institutions, including the
    2-1  areas of microelectronics, electronics assembly, automation and
    2-2  robotics, concurrent engineering, computer integrated
    2-3  manufacturing, artificial intelligence applications, and flexible
    2-4  manufacturing systems; and
    2-5              (5)  seek opportunities to facilitate cooperative
    2-6  efforts among members of the institute, other educational
    2-7  institutions in this state, private research organizations,
    2-8  industry, and federal laboratories.
    2-9        SECTION 2.  Section 484.003, Government Code, is amended to
   2-10  read as follows:
   2-11        Sec. 484.003.  Policy Board.  The institute is governed by a
   2-12  policy board composed of one member appointed by each member
   2-13  institution.  The policy board shall annually elect <the chairman>
   2-14  from among the policy board's members a chairman and other officers
   2-15  as necessary for the performance of its duties.  <The chairman
   2-16  serves a two-year term.  A person who has been chairman is not
   2-17  eligible to be elected chairman.>  The policy board shall establish
   2-18  policies and strategies necessary for the institute to accomplish
   2-19  the purposes of this chapter.
   2-20        SECTION 3.  Section 484.005, Government Code, is amended to
   2-21  read as follows:
   2-22        Sec. 484.005.  Public and Private Funds.  The institute may
   2-23  receive state-appropriated funds and use the funds as matching
   2-24  funds for federal proposals and contracts to provide specialized
   2-25  equipment and facilities for members of the institute and to assist
   2-26  with technology transfer to Texas industry, and as seed funds for
   2-27  new programs within the scope of the institute.  The institute may
    3-1  accept gifts, donations, <and> grants, including state and federal
    3-2  funds, interest paid on money in accounts of a nonprofit
    3-3  corporation created under this chapter, application and membership
    3-4  fees, royalty receipts, dividend income, and other amounts received
    3-5  by the institute in carrying out <to support> its purposes and
    3-6  programs.
    3-7        SECTION 4.  Chapter 484, Government Code, is amended by
    3-8  amending Section 484.007 and adding Sections 484.008-484.011 to
    3-9  read as follows:
   3-10        Sec. 484.007.  CONFLICT OF INTEREST <STAFFING>.  A director,
   3-11  employee, or officer of the institute may not participate in or
   3-12  vote on a decision of the policy board relating to an organization
   3-13  in which the director, employee, or officer has either a direct or
   3-14  an indirect financial interest.  <Staffing to carry out the
   3-15  purposes of this chapter, to the extent required, will be provided
   3-16  by member institutions.>
   3-17        Sec. 484.008.  NONPROFIT CORPORATION.  (a)  The Texas
   3-18  Manufacturing Institute may create a corporation under the Texas
   3-19  Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
   3-20  Texas Civil Statutes) to perform the duties required of the
   3-21  institute under this chapter.
   3-22        (b)  A nonprofit corporation created under this chapter may
   3-23  not provide pecuniary gain, incidental or otherwise, to any person
   3-24  other than a public entity, except for the payment of reasonable
   3-25  fees for goods and services provided and approved in accordance
   3-26  with the bylaws of the corporation.  No part of the net income or
   3-27  net earnings of the corporation shall inure to the benefit of or be
    4-1  distributed, directly or indirectly, to an individual.
    4-2        Sec. 484.009.  ADDITIONAL POWERS AND DUTIES OF NONPROFIT
    4-3  CORPORATION.  (a)  In addition to the rights, powers, and duties
    4-4  provided by the Texas Non-Profit Corporation Act (Article 1396-1.01
    4-5  et seq., Vernon's Texas Civil Statutes), a nonprofit corporation
    4-6  created under this chapter may:
    4-7              (1)  hold patents, copyrights, trademarks, or other
    4-8  evidence of protection or exclusivity issued under the law of any
    4-9  state or country;
   4-10              (2)  enter into licensing agreements with another
   4-11  person for the receipt of fees, royalties, or other monetary or
   4-12  nonmonetary value; and
   4-13              (3)  exercise all powers necessary or appropriate to
   4-14  effect any or all of the purposes for which the corporation is
   4-15  organized.
   4-16        (b)  The nonprofit corporation may engage exclusively in the
   4-17  performance of charitable functions.
   4-18        Sec. 484.010.  TAXATION.  A nonprofit corporation created
   4-19  under this chapter is exempt from all taxation by this state or a
   4-20  municipality or other political subdivision of this state.
   4-21        Sec. 484.011.  ANNUAL REPORT.  A nonprofit corporation
   4-22  created under this chapter shall publish an annual report that
   4-23  specifically accounts for the ways in which the corporation has
   4-24  carried out the purposes of the corporation and the programs
   4-25  described in this chapter.
   4-26        SECTION 5.  The change in law made by this Act to Section
   4-27  484.003, Government Code, does not affect the entitlement of the
    5-1  person who is serving as chairman of the policy board of the Texas
    5-2  Manufacturing Institute immediately before the effective date of
    5-3  this Act to continue to hold office until the person's term
    5-4  expires.  An election for chairman of the policy board of the Texas
    5-5  Manufacturing Institute made on or after the effective date of this
    5-6  Act must be made in accordance with Section 484.003, Government
    5-7  Code, as amended by this Act.
    5-8        SECTION 6.  This Act takes effect September 1, 1995.
    5-9        SECTION 7.  The importance of this legislation and the
   5-10  crowded condition of the calendars in both houses create an
   5-11  emergency and an imperative public necessity that the
   5-12  constitutional rule requiring bills to be read on three several
   5-13  days in each house be suspended, and this rule is hereby suspended.