By Greenberg                                          H.B. No. 1168

                                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 484.001, Government Code, is amended to

 1-5     read as follows:

 1-6           Sec. 484.001.  ESTABLISHMENT.  The Texas Manufacturing

 1-7     Institute shall be established as a nonprofit corporation,

 1-8     organized under the Texas Non-Profit Corporation Act (Article

 1-9     1396-1.01 et seq., Vernon's Texas Civil Statutes), to carry out the

1-10     purposes of this chapter [consists of governmental agencies,

1-11     educational institutions, and other entities, involved in the

1-12     promotion of manufacturing, that join as members of the institute].

1-13           SECTION 2.  Section 484.002, Government Code, is amended to

1-14     read as follows:

1-15           Sec. 484.002.  DUTIES.  The institute shall:

1-16                 (1)  identify needs within Texas' manufacturing

1-17     infrastructure, work to meet those needs, promote Texas'

1-18     manufacturing strengths and capabilities, and communicate the

1-19     importance of manufacturing to the state's economic future;

1-20                 (2)  develop a program of activities that will improve

1-21     Texas' manufacturing capabilities by enhancing existing research,

1-22     educational, and technical training programs aimed at developing

1-23     and transferring new manufacturing technologies and at increasing

1-24     the skilled work force in manufacturing;

 2-1                 (3)  take all opportunities for cooperation among

 2-2     manufacturing programs of participating [its member] institutions;

 2-3                 (4)  encourage the development of the statewide

 2-4     manufacturing program among participating [its member]

 2-5     institutions, including the areas of microelectronics, electronics

 2-6     assembly, automation and robotics, concurrent engineering, computer

 2-7     integrated manufacturing, artificial intelligence applications, and

 2-8     flexible manufacturing systems; and

 2-9                 (5)  seek opportunities to facilitate cooperative

2-10     efforts among participating institutions [members of the

2-11     institute], other educational institutions in this state, private

2-12     research organizations, industry, and federal laboratories.

2-13           SECTION 3.  Section 484.003, Government Code, is amended to

2-14     read as follows:

2-15           Sec. 484.003.  Governing [POLICY] BOARD.  (a)  The institute

2-16     is governed by an initial [a policy] board of directors composed of

2-17     the executive director of the Texas Department of Commerce or the

2-18     director's designee and one member appointed by the lieutenant

2-19     governor, one member appointed by the speaker of the house of

2-20     representatives, and one member appointed by each entity

2-21     participating in the institute [one member appointed by each member

2-22     institution].  The bylaws of the corporation shall provide for a

2-23     permanent board of directors, which must include the executive

2-24     director of the Texas Department of Commerce or the director's

2-25     designee, a member appointed by the lieutenant governor, and a

2-26     member appointed by the speaker.

2-27           (b)  The board of directors:

 3-1                 (1)  shall submit an annual budget for the institute to

 3-2     the Legislative Budget Board; and

 3-3                 (2)  is subject to Chapter 551, Government Code.  [The

 3-4     policy board shall elect the chairman from among the policy board's

 3-5     members.  The chairman serves a two-year term.  A person who has

 3-6     been chairman is not eligible to be elected chairman.  The policy

 3-7     board shall establish policies and strategies necessary for the

 3-8     institute to accomplish the purposes of this chapter.]

 3-9           SECTION 4.  Section 484.005, Government Code, is amended to

3-10     read as follows:

3-11           Sec. 484.005.  PUBLIC [AND PRIVATE] FUNDS.  The Texas

3-12     Department of Commerce may contract with the institute for the

3-13     purpose of providing [may receive] state-appropriated funds for use

3-14     [and use the funds] as matching funds for federal grants for

3-15     [proposals and contracts to provide specialized equipment and

3-16     facilities for members of the institute and to assist with

3-17     technology transfer to Texas industry, and as seed funds for new]

3-18     programs and purposes within the scope of the institute.  The

3-19     contract must adequately provide for the department's oversight of

3-20     the use of state funds to ensure that those funds are being used by

3-21     the institute in accordance with the contract.  The institute may

3-22     accept gifts, donations, and grants, including federal funds, to

3-23     support its purposes and programs.

3-24           SECTION 5.  Chapter 484, Government Code, is amended by

3-25     adding Sections 484.008 and 484.009 to read as follows:

3-26           Sec. 484.008.  INFORMATION CONFIDENTIAL.  (a)  Information

3-27     relating to a product or process and the application or use of a

 4-1     product or process, technological and scientific information,

 4-2     including computer programs, and manufacturing and business systems

 4-3     and processes of the customer, developed in whole or part by a

 4-4     customer of the institute, are confidential and are not subject to

 4-5     disclosure under state law or otherwise, regardless of whether the

 4-6     product or process is patentable or capable of being registered

 4-7     under copyright or trademark laws or has a potential for being

 4-8     sold, traded, or licensed for a fee.

 4-9           (b)  Nothing in this chapter prevents or restricts the

4-10     institute from obtaining information relating to a product or

4-11     process from an applicant or recipient of institute services or

4-12     from obtaining information related to the results of services

4-13     provided to the customer.

4-14           Sec. 484.009.  IMMUNITY FROM LIABILITY.  (a)  A member of the

4-15     board or another person acting on behalf of the institute in

4-16     executing a contract, commitment, or agreement under this chapter

4-17     is not personally liable on the contract, commitment, or agreement.

4-18           (b)  A member of the board or another person acting on behalf

4-19     of the institute is not personally liable for damage or injury

4-20     resulting from the performance of duties under this chapter.

4-21           SECTION 6.  Chapter 484, Government Code, is amended by

4-22     adding Section 484.010 to read as follows:

4-23           Sec. 484.010.  AUDIT.  The institute is subject to audit by

4-24     the state auditor.

4-25           SECTION 7.  Sections 484.004, 484.006, and 484.007,

4-26     Government Code, are repealed.

4-27           SECTION 8.  The Texas Department of Commerce shall conduct a

 5-1     study to determine when the Texas Manufacturing Institute can

 5-2     become a self-supporting entity no longer requiring state

 5-3     appropriations.  The department shall issue the report to the

 5-4     legislature no later than January 1, 1998.

 5-5           SECTION 9.  The importance of this legislation and the

 5-6     crowded condition of the calendars in both houses create an

 5-7     emergency and an imperative public necessity that the

 5-8     constitutional rule requiring bills to be read on three several

 5-9     days in each house be suspended, and this rule is hereby suspended,

5-10     and that this Act take effect and be in force from and after its

5-11     passage, and it is so enacted.