GEC C.S.H.B. 1168 75(R) BILL ANALYSIS BUSINESS & INDUSTRY C.S.H.B. 1168 By: Greenberg 3-25-97 Committee Report (Substituted) BACKGROUND In 1995, The Texas Department of Commerce received federal funding and was appropriated state funds to establish the Texas Manufacturing Assistance Center using the advice and guidance of the Texas Manufacturing Institute. Since September 1995, TMAC has helped over 700 small manufacturers, opened 16 offices around Texas, and hired 55 field engineers to work hands-on with small companies. The uncertain legal status of TMI makes it impossible to act as anything but in an advisory capacity. By clarifying the legal status of TMI we can set the stage for transition to a true public-private partnership as a 501(c)(3) with the authority to operate TMAC, enter into new contracts, generate additional revenue and solicit industry support.. PURPOSE The purpose of this bill is to authorize the creation of an independent, not-for-profit Texas Manufacturing Institute. This institute will administer the Texas Manufacturing Assistance Center, a program designed to identify the needs of manufacturers, develop programs, and facilitate cooperative efforts among government, industry, and higher education. 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. SECTION BY SECTION ANALYSIS SECTION 1 Section 484.001 ESTABLISHMENT The Texas Manufacturing Institute consists of governmental agencies, educational institutions, and other entities who promote manufacturing. The Institute shall be established as a non-profit organization. SECTION 2 Section 484.002 Government Code, is amended POLICY BOARD The board will consist of: the Executive Director of the Texas Department of Commerce, one member from each institution, one appointed by the lieutenant governor and one appointed by the speaker of the house. The chairman, elected from the policy board members, will serve two years and will not be re-elected. SECTION 3 Section 484.003 484.003 GOVERNING BOARD The policy board and the executive director of the department of commerce, and one member of each institution, one appointed by the lieutenant governor and one by the speaker of the house will govern the institute. The chairman, one of the policy board members, will be elected by the board. The chairman will serve a two year term. No chairman will be reelected. The board will establish policies. (this section is new) Sec. 484.008 INFORMATION CONFIDENTIAL (a)Specific information regarding product, process, technology, computer information or scientific information is not subject to disclosure under law. (b)TDOC is free to obtain information about products and processes from recipients of institute services. Sec. 484.009 IMMUNITY FROM LIABILITY (a) No board member, or other person acting on behalf of the institute in executing a contract, is personally liable on contract commitment or agreement. (b) No board member or person acting on behalf of the institute, is personally liable for work related damage or injury. SECTION 4 Section 484.004, Government Code, is repealed. SECTION 5 The lieutenant governor and the speaker of the house will make their appointments as soon as practicable after the Act passes. Until appointments are made, a quorum will be a majority of qualified members. SECTION 6 Effective immediately SECTION 7 Emergency clause COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1 This Texas Manufacturing Institute shall establish a nonprofit under the Texas Corporation Act (Article 1396-1.01 et seq., Vernon's) to promote manufacturing. The substitute does not list agencies involved. SECTION 2 The substitute adds Sec. 484.002, the duties of the institute: (1) identify needs of Texas manufacturers, promote strengths, and communicate importance. (2) improve research, educational and technical training programs,. (3)Take advantage of possible collaborations. (4) Encourage development of statewide manufacturing programs including electronics assembly, automation and robotics, concurrent engineering, computer integrated manufacturing, artificial intelligence and flexible manufacturing systems. SECTION 3 is changed from Policy board to Governing board. The substitute states that the board of directors will be composed of: the executive director of the Department of Commerce or the director's designeee, one member appointed by the governor, one by the lieutenant governor, one by the speaker of the house of representatives and one from each participating entity. The bylaws to be prepared upon incorporation will reflect this board composition. The substitute removes all language about the chair. SECTION 4 484.005 was changed to read Public Funds (this is a new addition to the committee substitute) The Texas Department of Commerce may contract with the institute for the purposes of providing state-appropriated funds for use as matching funds for federal grants for institute programs and purposes. The contract will provide for department oversight. The institute may accept gifts, donations and grants for its purposes and programs. SECTION 5 484.008 Information Confidential (a) This section is almost identical to the original bill. The language, manufacturing and business systems and processes of the customer was added to the list of information not subject to disclosure (b) Nothing in this chapter restricts the institute (referred to as the Department of Commerce in original bill) from obtaining applicant information. 484.009 Immunity from Liability. No changes from the original bill. SECTION 6 In addition to 484.004 as repealed in the original, the substitute repeals 484.006 and 484.007. SECTION 7 Emergency clause