SRC-SLL H.B. 1168 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1168
By: Greenberg (Sibley)
Economic Development
5-12-97
Engrossed


DIGEST 

Currently, the Texas Manufacturing Institute (institute) is an advisory
committee to the Texas Department of Commerce that oversees the operation
of the Texas Manufacturing Assistance Centers.  These centers provide
advisory and technical assistance to small manufacturers.  This bill will
establish the institute as a nonprofit corporation and provide regulations
for the institute. 

PURPOSE

As proposed, H.B. 1168 establishes the Texas Manufacturing Institute as a
nonprofit corporation and provides regulations for the institute. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 484.001, Government Code, to require the Texas
Manufacturing Institute (institute) to be established as a nonprofit
corporation, organized under Article 1396-1.01 et seq., V.T.C.S. (Texas
Non-Profit Corporation Act), to carry out the purposes of this chapter.
Deletes existing text providing that the institute consists of certain
entities involved in the promotion of manufacturing, that join as members
of the institute. 

SECTION 2. Amends Section 484.002, Government Code, to make conforming
changes. 

SECTION 3. Amends Section 484.003, Government Code, as follows:

Sec.  484.003.  New heading: GOVERNING BOARD.  Provides that the institute
is governed by an initial board of directors (board) composed of certain
individuals.  Requires the bylaws of the institute to provide for a
permanent board of directors composed of certain individuals.  Requires
the board to submit an annual budget for the institute to the Legislative
Budget Board and is subject to Chapter 551, Government Code.  Deletes
existing text regarding the chairman of the policy board. 

SECTION 4. Amends Section 484.005, Government Code, as follows:

Sec.  484.005.  New heading: PUBLIC FUNDS.  Authorizes the Texas
Department of Commerce (department) to contract with the institute for the
purpose of providing stateappropriated funds for use as matching funds for
federal grants for programs and purposes within the scope of the
institute.  Requires the contract to adequately provide for the
department's oversight of the use of state funds to ensure that those
funds are being used by the institute in accordance with the contract.
Deletes existing text regarding specialized equipment and facilities. 

SECTION 5. Amends Chapter 484, Government Code, by adding Sections 484.008
and 484.009, as follows: 

Sec.  484.008.  INFORMATION CONFIDENTIAL.  Sets forth regulations
regarding the  confidentiality of information developed in whole or part
by a customer of the institute. 

Sec.  484.009.  IMMUNITY FROM LIABILITY.  Provides that a member of the
board or another person acting on behalf of the institute in executing a
contract, commitment, or agreement under this chapter is not personally
liable on the contract, commitment, or agreement.  Provides that a member
of the board or another person acting on behalf of the institute is not
personally liable for damage or injury resulting from the performance of
duties under this chapter. 

SECTION 6. Amends Chapter 484, Government Code, by adding Section 484.010,
as follows: 

Sec.  484.010.  AUDIT.  Provides that the institute is subject to audit by
the state auditor. 

SECTION 7. Repealers: Sections 484.004, 484.006, and 484.007, Government
Code (Technical Advisory Council, Disbursement Policy, and Staffing). 

SECTION 8. Requires the department to conduct a study to determine when
the institute can become a self-supporting entity no longer requiring
state appropriation.  Requires the department to issue the report to the
legislature no later than January 1, 1998. 

SECTION 9. Emergency clause.
  Effective date: upon passage.