1-1                                   AN ACT

 1-2     relating to the protection and use of certain products,

 1-3     information, and technology of the Texas Department of Health.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 12, Health and Safety Code,

 1-6     is amended by adding Section 12.020 to read as follows:

 1-7           Sec. 12.020.  PROTECTION AND USE OF INTELLECTUAL PROPERTY.

 1-8     (a)  The department may:

 1-9                 (1)  apply for, register, secure, hold, and protect

1-10     under the laws of the United States, any state, or any nation:

1-11                       (A)  a patent for an invention or discovery of,

1-12     or improvement to, any process, machine, manufacture, or

1-13     composition of matter;

1-14                       (B)  a copyright for an original work of

1-15     authorship fixed in any tangible medium of expression now known or

1-16     later developed that can be perceived, reproduced, or otherwise

1-17     communicated;

1-18                       (C)  a trademark, service mark, collective mark,

1-19     or certification mark for a word, name, symbol, device, or slogan,

1-20     or any combination of those items, that has been adopted and used

1-21     by the department to identify goods or services and distinguish

1-22     those goods or services from other goods or services; or

1-23                       (D)  other evidence of protection or exclusivity

1-24     issued in or for intellectual property;

 2-1                 (2)  enter into a contract with an individual or

 2-2     company for the sale, lease, marketing, or other distribution of

 2-3     intellectual property of the department;

 2-4                 (3)  obtain under a contract entered into under

 2-5     Subdivision (2) a royalty, license right, or other appropriate

 2-6     means of securing appropriate compensation for the development or

 2-7     purchase of intellectual property of the department; and

 2-8                 (4)  waive or reduce the amount of a fee, royalty, or

 2-9     other thing of monetary or nonmonetary value to be assessed by the

2-10     department if the department determines that the waiver will:

2-11                       (A)  further the goals and missions of the

2-12     department; and

2-13                       (B)  result in a net benefit to the state.

2-14           (b)  Intellectual property for which the department has

2-15     applied for or received a patent, copyright, trademark, or other

2-16     evidence of protection or exclusivity is excepted from required

2-17     disclosure under Chapter 552, Government Code.

2-18           (c)  Money paid to the department under this section shall be

2-19     deposited to the credit of the general revenue fund except as

2-20     otherwise provided in Section 2054.115, Government Code.

2-21           (d)  It is not a violation of Chapter 572, Government Code,

2-22     or another law of this state for an employee of the department who

2-23     conceives, creates, discovers, invents, or develops intellectual

2-24     property to own or to be awarded any amount of equity interest or

2-25     participation in the research, development, licensing, or

2-26     exploitation of that intellectual property with the approval of the

2-27     commissioner.

 3-1           (e)  The commissioner shall institute intellectual property

 3-2     policies for the department that establish minimum standards for:

 3-3                 (1)  the public disclosure or availability of products,

 3-4     technology, and scientific information, including inventions,

 3-5     discoveries, trade secrets, and computer software;

 3-6                 (2)  review by the department of products, technology,

 3-7     and scientific information, including consideration of ownership

 3-8     and appropriate legal protection;

 3-9                 (3)  the licensing of products, technology, and

3-10     scientific information;

3-11                 (4)  the identification of ownership and licensing

3-12     responsibilities for each class of intellectual property; and

3-13                 (5)  royalty participation by inventors and the

3-14     department.

3-15           SECTION 2.  The importance of this legislation and the

3-16     crowded condition of the calendars in both houses create an

3-17     emergency and an imperative public necessity that the

3-18     constitutional rule requiring bills to be read on three several

3-19     days in each house be suspended, and this rule is hereby suspended,

3-20     and that this Act take effect and be in force from and after its

3-21     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1520 was passed by the House on April

         8, 1997, by the following vote:  Yeas 145, Nays 1, 1 present, not

         voting; and that the House concurred in Senate amendments to H.B.

         No. 1520 on May 5, 1997, by the following vote:  Yeas 147, Nays 0,

         1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1520 was passed by the Senate, with

         amendments, on April 28, 1997, by the following vote:  Yeas 31,

         Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor