SRC-HRD S.B. 994 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 994
By: Harris
International Relations, Trade & Technology
3-27-97
As Filed


DIGEST 

Currently, Texas law provides that the Texas Department of Health 
(department) has the authority 
to market software developed within the agency.  Other products 
developed within the agency, such 
as a new tuberculosis test, health-related television programs, 
various logos, etc., must be disclosed 
as public information with certain statutory limitations on 
charges for the information.   The private 
sector can then resell the information that was developed with 
taxpayer funds.  This bill would 
exempt intellectual property from the Public Information Act; 
authorize the department to apply for, 
register, secure, hold, and protect patents, copyrights, 
trademarks, service marks or other evidence 
of protection or exclusivity issued under the laws of the United 
States, any state or any nation, 
including ideas, publications and other innovations fixed in a 
tangible medium.  Furthermore, this 
bill would require money received from the selling of such 
properties to be deposited to the credit 
of the state funds from which the development was financed.  This 
bill also allows the department 
to establish a Center for Public Health Development. 

PURPOSE

As proposed, S.B. 994 authorizes the Texas Department of Health 
to apply for, register, secure, hold, 
and protect certain intellectual property under the law and 
provides that such property is exempted 
from the Public Information Act.  This bill also allows the Texas 
Department of Health to establish 
a Center for Public Health Development. 

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 Chapter 12B, Health and Safety Code, by adding 
Section 12.020, as follows:

Sec. 12.020.  PROTECTION AND USE OF INTELLECTUAL PROPERTY.  
(a) (1) 
Authorizes the Texas Department of Health (department) to 
apply for, register, secure, hold, 
and protect under the laws of the United States, any state, 
or any nation a certain patent, 
trademark, copyright, or other evidence of protection or 
exclusivity issued in or for 
intellectual property.  

(2) Authorizes the department to enter into a contract 
with an individual or company 
for the sale, lease, marketing, or other distribution of 
intellectual property of the 
department.  

(3) Authorizes the department to obtain under a contract 
entered into under 
Subdivision (2) a royalty, license right, or other 
appropriate means of securing 
appropriate compensation for the development or purchase 
of intellectual property of 
the department. 

(4) Authorizes the department to waive or reduce the 
amount of a fee, royalty, or other 
things of monetary or nonmonetary value to be assessed 
by the department if the 
department determines that the waiver will further the 
goals and missions of the 
department and result in a net benefit to the state.  
 
(b) Provides an exception from disclosure under Chapter 
552, Government Code, for 
certain intellectual property.  

(c) Authorizes the department to establish, maintain, and 
support a Center for Public 
Health Development (center) and to accept and administer, 
on certain terms and 
conditions, gifts, grants, and donations to aid in the 
establishment, maintenance, and 
operation of the center.  

(d) Authorizes the center, subject to Texas Board of 
Health rules, to solicit and submit for 
the approval of the department agreements with any persons 
for funding the discovery, 
development, and commercialization of new products, 
technology, and scientific 
information.

(e) Authorizes the department, in order to carry out the 
purposes of the center under this 
section, to own certain license rights and shares, 
participate in certain businesses, and to 
carry on any other activities the department determines 
appropriate for achieving the 
purposes of this section.  

(f) Prohibits the center established under this section 
from receiving general revenue 
funds through a special item appropriation in a General 
Appropriations Act.  Requires the 
center to cooperate fully with similar programs operated 
by other state entities. 

(h) Requires money paid to the department under this 
section to be deposited to the credit 
of the general revenue fund.

(i) Provides that it is not a violation of Chapter 572, 
Government Code, or another law of 
this state for an employee of the department to take 
certain action in regards to intellectual 
property; or for an individual, at the request of the 
Commissioner of Health 
(commissioner), to serve as a member of the board of 
directors or other governing board 
of a business entity that has a certain agreement with 
this state or a political subdivision 
of this state.

(j) Requires the commissioner to institute intellectual 
property policies for the department 
that establish certain minimum standards.

SECTION 2. Emergency clause.