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;

 3-3                 (2)  shall submit an annual report for the institute to

 3-4     the governor, the lieutenant governor, the speaker of the house of

 3-5     representatives, and the executive director of the Texas Department

 3-6     of Commerce by December 1 of each year.  The report shall detail

 3-7     the efforts made by the institute to fulfill the duties outlined in

 3-8     this chapter and include specific information on the outcome of

 3-9     those efforts;

3-10                 (3)  is subject to Chapter 551, Government Code.  [The

3-11     policy board shall elect the chairman from among the policy board's

3-12     members.  The chairman serves a two-year term.  A person who has

3-13     been chairman is not eligible to be elected chairman.  The policy

3-14     board shall establish policies and strategies necessary for the

3-15     institute to accomplish the purposes of this chapter.]

3-16           SECTION 4.  Section 484.005, Government Code, is amended by

3-17     amending the heading and Subsection (a) to read as follows:

3-18           Sec. 484.005.  PUBLIC [AND PRIVATE] FUNDS.  (a)  The Texas

3-19     Department of Commerce may enter into performance-based contracts

3-20     with the institute for the purpose of providing [may receive]

3-21     state-appropriated funds for use [and use the funds] as matching

3-22     funds for federal grants for [proposals and contracts to provide

3-23     specialized equipment and facilities for members of the institute

3-24     and to assist with technology transfer to Texas industry, and as

3-25     seed funds for new] programs and purposes within the scope of the

3-26     institute.  The contract must adequately provide for the

3-27     department's oversight of the use of state funds to ensure that

 4-1     those funds are being used by the institute in accordance with the

 4-2     contract.  The institute may accept gifts, donations, and grants,

 4-3     including federal funds, to support its purposes and programs.

 4-4           SECTION 5.  Chapter 484, Government Code, is amended by

 4-5     adding Sections 484.008 and 484.009 to read as follows:

 4-6           Sec. 484.008.  INFORMATION CONFIDENTIAL.  (a)  Information

 4-7     relating to a product or process and the application or use of a

 4-8     product or process, technological and scientific information,

 4-9     including computer programs, and manufacturing and business systems

4-10     and processes of the customer, developed in whole or part by a

4-11     customer of the institute, are confidential and are not subject to

4-12     disclosure under state law or otherwise, regardless of whether the

4-13     product or process is patentable or capable of being registered

4-14     under copyright or trademark laws or has a potential for being

4-15     sold, traded, or licensed for a fee.

4-16           (b)  Nothing in this chapter prevents or restricts the

4-17     institute from obtaining information relating to a product or

4-18     process from an applicant  or recipient of institute services or

4-19     from obtaining information related to the results of services

4-20     provided to the customer.

4-21           Sec. 484.009.  IMMUNITY FROM LIABILITY.  (a)  A member of the

4-22     board or another person acting on behalf of the institute in

4-23     executing a contract, commitment, or agreement under this chapter

4-24     is not personally liable on the contract, commitment, or agreement.

4-25           (b)  A member of the board or another person acting on behalf

4-26     of the institute is not personally liable for damage or injury

4-27     resulting from the performance of duties under this chapter.

 5-1           SECTION 6.  Chapter 484, Government Code, is amended by

 5-2     adding Section 484.010 to read as follows:

 5-3           Sec. 484.010.  AUDIT.  The institute is subject to audit by

 5-4     the state auditor.

 5-5           SECTION 7.  Sections 484.004, 484.006, and 484.007,

 5-6     Government Code, are repealed.

 5-7           SECTION 8.  The Texas Department of Commerce shall conduct a

 5-8     study to determine when the institute can become a self-supporting

 5-9     entity no longer requiring state-appropriated funds.  The

5-10     department shall issue the report to the governor, the lieutenant

5-11     governor, the speaker of the house of representatives, and the

5-12     director of the Legislative Budget Board no later than December 1,

5-13     1997.

5-14           SECTION 9.  The importance of this legislation and the

5-15     crowded condition of the calendars in both houses create an

5-16     emergency and an imperative public necessity that the

5-17     constitutional rule requiring bills to be read on three several

5-18     days in each house be suspended, and this rule is hereby suspended,

5-19     and that this Act take effect and be in force from and after its

5-20     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1168 was passed by the House on April

         17, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 1168 on May 24, 1997, by the

         following vote:  Yeas 130, Nays 3, 1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1168 was passed by the Senate, with

         amendments, on May 22, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor