1-1     By:  Greenberg (Senate Sponsor - Sibley)              H.B. No. 1168

 1-2           (In the Senate - Received from the House April 18, 1997;

 1-3     April 22, 1997, read first time and referred to Committee on

 1-4     Economic Development; May 18, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 6, Nays

 1-6     0; May 18, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1168                  By:  Sibley

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the Texas Manufacturing Institute.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 484.001, Government Code, is amended to

1-13     read as follows:

1-14           Sec. 484.001.  Establishment.  The Texas Manufacturing

1-15     Institute shall be established as a nonprofit corporation,

1-16     organized under the Texas Non-Profit Corporation Act (Article

1-17     1396-1.01 et seq., Vernon's Texas Civil Statutes), to carry out the

1-18     purposes of this chapter [consists of governmental agencies,

1-19     educational institutions, and other entities, involved in the

1-20     promotion of manufacturing, that join as members of the institute].

1-21           SECTION 2.  Section 484.002, Government Code, is amended to

1-22     read as follows:

1-23           Sec. 484.002.  Duties.  The institute shall:

1-24                 (1)  identify needs within Texas' manufacturing

1-25     infrastructure, work to meet those needs, promote Texas'

1-26     manufacturing strengths and capabilities, and communicate the

1-27     importance of manufacturing to the state's economic future;

1-28                 (2)  develop a program of activities that will improve

1-29     Texas' manufacturing capabilities by enhancing existing research,

1-30     educational, and technical training programs aimed at developing

1-31     and transferring new manufacturing technologies and at increasing

1-32     the skilled work force in manufacturing;

1-33                 (3)  take all opportunities for cooperation among

1-34     manufacturing programs of participating [its member] institutions;

1-35                 (4)  encourage the development of the statewide

1-36     manufacturing program among participating [its member]

1-37     institutions, including the areas of microelectronics, electronics

1-38     assembly, automation and robotics, concurrent engineering, computer

1-39     integrated manufacturing, artificial intelligence applications, and

1-40     flexible manufacturing systems; and

1-41                 (5)  seek opportunities to facilitate cooperative

1-42     efforts among participating institutions [members of the

1-43     institute], other educational institutions in this state, private

1-44     research organizations, industry, and federal laboratories.

1-45           SECTION 3.  Section 484.003, Government Code, is amended to

1-46     read as follows:

1-47           Sec. 484.003.  GOVERNING [POLICY] BOARD.  (a)  The institute

1-48     is governed by an initial [a policy] board of directors composed of

1-49     the executive director of the Texas Department of Commerce or the

1-50     director's designee and one member appointed by the lieutenant

1-51     governor, one member appointed by the speaker of the house of

1-52     representatives, and one member appointed by each entity

1-53     participating in the institute [one member appointed by each member

1-54     institution].  The bylaws of the corporation shall provide for a

1-55     permanent board of directors, which must include the executive

1-56     director of the Texas Department of Commerce or the director's

1-57     designee, a member appointed by the lieutenant governor, and a

1-58     member appointed by the speaker.

1-59           (b)  The board of directors:

1-60                 (1)  shall submit an annual budget for the institute to

1-61     the Legislative Budget Board;

1-62                 (2)  shall submit an annual report for the institute to

1-63     the governor, the lieutenant governor, the speaker of the house of

1-64     representatives, and the executive director of the Texas Department

 2-1     of Commerce by December 1 of each year.  The report shall detail

 2-2     the efforts made by the institute to fulfill the duties outlined in

 2-3     this chapter and include specific information on the outcome of

 2-4     those efforts.

 2-5                 (3)  is subject to chapter 551, Government Code.  [The

 2-6     policy board shall elect the chairman from among the policy board's

 2-7     members.  The chairman serves a two-year term.  A person who has

 2-8     been chairman is not eligible to be elected chairman.  The policy

 2-9     board shall establish policies and strategies necessary for the

2-10     institute to accomplish the purposes of this chapter.]

2-11           SECTION 4.  Section 484.005, Government Code, is amended to

2-12     read as follows:

2-13           Sec. 484.005.  PUBLIC [AND PRIVATE] FUNDS.  (a)  The Texas

2-14     Department of Commerce may enter into performance based contracts

2-15     with the institute for the purpose of providing [may receive]

2-16     state-appropriated funds for use [and use the funds] as matching

2-17     funds for federal grants for [proposals and contracts to provide

2-18     specialized equipment and facilities for members of the institute

2-19     and to assist with technology transfer to Texas industry, and as

2-20     seed funds for new] programs and purposes within the scope of the

2-21     institute.  The contract must adequately provide for the

2-22     department's oversight of the use of state funds to ensure that

2-23     those funds are being used by the institute in accordance with the

2-24     contract.  The institute may accept gifts, donations, and grants,

2-25     including federal funds, to support its purposes and programs.

2-26           SECTION 5.  Chapter 484, Government Code, is amended by

2-27     adding Sections 484.008 and 484.009 to read as follows:

2-28           Sec. 484.008.  INFORMATION CONFIDENTIAL.  (a)  Information

2-29     relating to a product or process and the application or use of a

2-30     product or process, technological and scientific information,

2-31     including computer programs, and manufacturing and business systems

2-32     and processes of the customer, developed in whole or part by a

2-33     customer of the institute, are confidential and are not subject to

2-34     disclosure under state law or otherwise, regardless of whether the

2-35     product or process is patentable or capable of being registered

2-36     under copyright or trademark laws or has a potential for being

2-37     sold, traded, or licensed for a fee.

2-38           (b)  Nothing in this chapter prevents or restricts the

2-39     institute from obtaining information relating to a product or

2-40     process from an applicant  or recipient of institute services or

2-41     from obtaining information related to the results of services

2-42     provided to the customer.

2-43           Sec. 484.009.  IMMUNITY FROM LIABILITY.  (a)  A member of the

2-44     board or another person acting on behalf of the institute in

2-45     executing a contract, commitment, or agreement under this chapter

2-46     is not personally liable on the contract, commitment, or agreement.

2-47           (b)  A member of the board or another person acting on behalf

2-48     of the institute is not personally liable for damage or injury

2-49     resulting from the performance of duties under this chapter.

2-50           SECTION 6.  Chapter 484, Government Code, is amended by

2-51     adding Section 484.010 to read as follows:

2-52           Sec. 484.010.  AUDIT.  The institute is subject to audit by

2-53     the state auditor.

2-54           SECTION 7.  Sections 484.004, 484.006, and 484.007,

2-55     Government Code, are repealed.

2-56           SECTION 8.  The Texas Department of Commerce shall conduct a

2-57     study to determine when the institute can become a self-supporting

2-58     entity no longer requiring state-appropriated funds.  The

2-59     department shall issue the report to the governor, lieutenant

2-60     governor, the speaker of the house of representatives, and the

2-61     director of the Legislative Budget Board no later than December 1,

2-62     1997.

2-63           SECTION 9.  The importance of this legislation and the

2-64     crowded condition of the calendars in both houses create an

2-65     emergency and an imperative public necessity that the

2-66     constitutional rule requiring bills to be read on three several

2-67     days in each house be suspended, and this rule is hereby suspended,

2-68     and that this Act take effect and be in force from and after its

2-69     passage, and it is so enacted.