By Berlanga                                     H.B. No. 1520

      75R2921 SKB-D                           

                                A BILL TO BE ENTITLED

 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)  The department may establish, maintain, and support a

2-19     Center for Public Health Development and may accept and administer,

2-20     on terms and conditions acceptable to the department, gifts,

2-21     grants, and donations to aid in the establishment, maintenance, and

2-22     operation of the center.

2-23           (d)  Subject to board rules, the center may solicit and

2-24     submit for the approval of the department agreements with any

2-25     persons for funding the discovery, development, and

2-26     commercialization of new products, technology, and scientific

2-27     information.

 3-1           (e)  To carry out the purposes of the center under this

 3-2     section, the department may, through the center:

 3-3                 (1)  own and license rights to products, technology,

 3-4     and scientific information;

 3-5                 (2)  own shares in a corporation engaged in the

 3-6     development, manufacture, or marketing of products, technology, or

 3-7     scientific information under a license from the department, the

 3-8     center, or a corporation owned or controlled by the department;

 3-9                 (3)  participate as a general or limited partner either

3-10     directly or through a subsidiary corporation formed for that

3-11     purpose, in a limited partnership, general partnership, or joint

3-12     venture engaged in the development, manufacture, or marketing of

3-13     products, technology, or scientific information under a license

3-14     from the department, the center, or a corporation owned or

3-15     controlled by the department; and

3-16                 (4)  carry on any other activities the department

3-17     determines appropriate for achieving the purposes of this section.

3-18           (f)  The Center for Public Health Development established

3-19     under this section may not receive general revenue funds through a

3-20     special item appropriation in a General Appropriations Act.

3-21           (g)  The Center for Public Health Development shall cooperate

3-22     fully with similar programs operated by other state entities.

3-23           (h)  Money paid to the department under this section shall be

3-24     deposited to the credit of the general revenue fund.

3-25           (i)  It is not a violation of Chapter 572, Government Code,

3-26     or another law of this state:

3-27                 (1)  for an employee of the department who conceives,

 4-1     creates, discovers, invents, or develops intellectual property to

 4-2     own or to be awarded any amount of equity interest or participation

 4-3     in the research, development, licensing, or exploitation of that

 4-4     intellectual property with the approval of the commissioner; or

 4-5                 (2)  for an individual, at the request of the

 4-6     commissioner, to serve as a member of the board of directors or

 4-7     other governing board of a business entity that has an agreement

 4-8     with this state or a political subdivision of this state relating

 4-9     to the research, development, licensing, or exploitation of

4-10     intellectual property in which the department or the Center for

4-11     Public Health Development has an ownership interest.

4-12           (j)  The commissioner shall institute intellectual property

4-13     policies for the department that establish minimum standards for:

4-14                 (1)  the public disclosure or availability of products,

4-15     technology, and scientific information, including inventions,

4-16     discoveries, trade secrets, and computer software;

4-17                 (2)  review by the department of products, technology,

4-18     and scientific information, including consideration of ownership

4-19     and appropriate legal protection;

4-20                 (3)  the licensing of products, technology, and

4-21     scientific information;

4-22                 (4)  the identification of ownership and licensing

4-23     responsibilities for each class of intellectual property;

4-24                 (5)  royalty participation by inventors and the

4-25     department; and

4-26                 (6)  equity and management participation on the part of

4-27     the inventor in business entities that use technology or scientific

 5-1     information created at the department.

 5-2           SECTION 2.  The importance of this legislation and the

 5-3     crowded condition of the calendars in both houses create an

 5-4     emergency and an imperative public necessity that the

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

 5-6     days in each house be suspended, and this rule is hereby suspended,

 5-7     and that this Act take effect and be in force from and after its

 5-8     passage, and it is so enacted.