LSL H.B. 1520 75(R)    BILL ANALYSIS


PUBLIC HEALTH
H.B. 1520
By: Berlanga
3-5-97
Committee Report (Unamended)


BACKGROUND 

The Texas Department of Health (TDH) is involved with projects that result
in the purchase or development of  intellectual property. There are
numerous examples: a process being patented to test and obtain rapid
results for tuberculosis; scripted and produced health-related television
programs; and logos used for buttons, placemats, posters, and T-shirts. 

Although many of these items are marketable, TDH only has authority to
sell software for which TDH holds the copyright. Currently, marketable
property developed by TDH and paid for with taxpayer funds can be obtained
and resold by the private sector for profit. 

PURPOSE

HB 1520 authorizes the Texas Department of Health to hold, protect and
market intellectual property for the benefit of the state. 

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.  Amends Subchapter B, Chapter 12, Health and Safety Code, by
adding Sec. 12.020, "Protection and Use of Intellectual Property" as
follows:  

 Subsection (a)(1) allows TDH to apply for, register, secure, hold, and
protect under the law: a patent, a copyright, a trademark or other
products of or for intellectual property; (2) allows TDH to contract with
an individual or company for the sale, lease, marketing, or distribution
of intellectual property owned by TDH; (3) allows TDH to obtain
compensation for the development or purchase of intellectual property; (4)
allows TDH to waive or reduce compensation if a waiver furthers the goals
and missions of TDH or is a benefit to the state. 

 Subsection (b) provides that intellectual property which TDH has applied
or received a patent, trademark, copyright, or protection or exclusivity
rights for is excepted from the required disclosure provisions of Chapter
552, Government Code. 

Subsection (c) allows TDH to establish, maintain, support, and accept
gifts, grants, and donations for a Center for Public Health Development
Center. 

Subsection (d) allows the center to solicit and submit for approval by TDH
agreements for funding the discovery, development, and commercialization
of new products, technology, and scientific information, subject to Board
of Health rules. 

Subsection (e)(1) allows TDH, through the center, to own and license
rights to products, technology, and scientific information; (2) allows TDH
to own shares in a corporation involved in the development, production, or
marketing of intellectual property under license from TDH, the center, or
a corporation owned or controlled by TDH; (3) allows  TDH to participate
directly or through a subsidiary, as a general or limited partner or in
joint venture; and (4) allows TDH to carry on any other activities
determined appropriate for achieving purposes of this section. 

 Subsection (f) prohibits the center from receiving general revenue funds
through a special item appropriation in a General Appropriations Act. 

Bill Analysis HB 1520, As introduced
Page Subsection (g)  requires the center to cooperate fully with similar
programs operated by other state entities. 

Subsection (h) requires that money paid to TDH under this section be
deposited to the credit of the general revenue fund. 

Subsection (i)  establishes that it is legal for a TDH employee who
creates or discovers intellectual property to own or be awarded any amount
of equity interest or participation in the research, development,
licensing or exploitation of that intellectual property with the approval
of the TDH commissioner. An individual, at the request of the commissioner
may serve as a member of the governing board of a business that has an
agreement with the state or political subdivision of this state relating
to the research, development and marketing of intellectual property in
which TDH or the center has an ownership interest. 

Subsection (j)  requires the commissioner to institute intellectual
property policies for TDH that establish minimum standards for the
following: (1) public disclosure or availability of intellectual property,
including inventions, trade secrets, discoveries, and computer software;
(2) review by TDH of intellectual property including consideration of
ownership and legal protection; (3) licensing of products, technology and
scientific information; (4) identification of ownership and licensing
responsibilities for each class of intellectual property; (5) royalty
participation by inventors and TDH; and (6) equity and management
participation on the part of the inventor in businesses that use
intellectual property created at TDH.  

SECTION 2. Emergency Clause. Establishes effective date to be upon passage
of the Act.