1-1     By:  Berlanga (Senate Sponsor - Harris)               H.B. No. 1520

 1-2           (In the Senate - Received from the House April 9, 1997;

 1-3     April 10, 1997, read first time and referred to Committee on

 1-4     International Relations, Trade, and Technology; April 21, 1997,

 1-5     reported favorably, as amended, by the following vote:  Yeas 9,

 1-6     Nays 0; April 21, 1997, sent to printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                                By:  Truan

 1-8     Amend H.B. No. 1520 as follows:

 1-9     1.  In SECTION 1, Sec. 12.020(a), (page 1, line 53), strike

1-10     "nonexclusive".

1-11     2.  In SECTION 1, Sec. 12.020(a), (page 1, line 56), strike

1-12     "nonexclusive".

1-13     3.  In SECTION 1, Sec. 12.020(c), (page 2, line 9), after "fund"

1-14     add "except as otherwise provided in Section 2054.115, Government

1-15     Code".

1-16     4.  In SECTION 1, Sec. 12.020(d), (page 2, line 11), strike ":".

1-17     5.  In SECTION 1, Sec. 12.020(d), (page 2, line 12), strike "(1)".

1-18     6.  In SECTION 1, Sec. 12.020(d), (page 2, line 16), strike "; or"

1-19     and substitute ".".

1-20     7.  In SECTION 1, Sec. 12.020(d), (page 2, lines 17 through 23),

1-21     strike Subdivision (2).

1-22     8.  In SECTION 1, Sec. 12.020(e)(4), (page 2, line 35), strike ";"

1-23     and substitute "; and".

1-24     9.  In SECTION 1, Sec. 12.020(e)(5), (page 2, line 37), strike ";

1-25     and" and substitute ".".

1-26     10.  In SECTION 1, Sec. 12.020(e), (page 2, lines 38 through 40),

1-27     strike Subdivision (6).

1-28                            A BILL TO BE ENTITLED

1-29                                   AN ACT

1-30     relating to the protection and use of certain products,

1-31     information, and technology of the Texas Department of Health.

1-32           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-33           SECTION 1.  Subchapter B, Chapter 12, Health and Safety Code,

1-34     is amended by adding Section 12.020 to read as follows:

1-35           Sec. 12.020.  PROTECTION AND USE OF INTELLECTUAL PROPERTY.

1-36     (a)  The department may:

1-37                 (1)  apply for, register, secure, hold, and protect

1-38     under the laws of the United States, any state, or any nation:

1-39                       (A)  a patent for an invention or discovery of,

1-40     or improvement to, any process, machine, manufacture, or

1-41     composition of matter;

1-42                       (B)  a copyright for an original work of

1-43     authorship fixed in any tangible medium of expression now known or

1-44     later developed that can be perceived, reproduced, or otherwise

1-45     communicated;

1-46                       (C)  a trademark, service mark, collective mark,

1-47     or certification mark for a word, name, symbol, device, or slogan,

1-48     or any combination of those items, that has been adopted and used

1-49     by the department to identify goods or services and distinguish

1-50     those goods or services from other goods or services; or

1-51                       (D)  other evidence of protection or exclusivity

1-52     issued in or for intellectual property;

1-53                 (2)  enter into a nonexclusive contract with an

1-54     individual or company for the sale, lease, marketing, or other

1-55     distribution of intellectual property of the department;

1-56                 (3)  obtain under a nonexclusive contract entered into

1-57     under Subdivision (2) a royalty, license right, or other

1-58     appropriate means of securing appropriate compensation for the

1-59     development or purchase of intellectual property of the department;

1-60     and

1-61                 (4)  waive or reduce the amount of a fee, royalty, or

1-62     other thing of monetary or nonmonetary value to be assessed by the

1-63     department if the department determines that the waiver will:

1-64                       (A)  further the goals and missions of the

 2-1     department; and

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

 2-3           (b)  Intellectual property for which the department has

 2-4     applied for or received a patent, copyright, trademark, or other

 2-5     evidence of protection or exclusivity is excepted from required

 2-6     disclosure under Chapter 552, Government Code.

 2-7           (c)  Money paid to the department under this section shall be

 2-8     deposited to the credit of the general revenue fund.

 2-9           (d)  It is not a violation of Chapter 572, Government Code,

2-10     or another law of this state:

2-11                 (1)  for an employee of the department who conceives,

2-12     creates, discovers, invents, or develops intellectual property to

2-13     own or to be awarded any amount of equity interest or participation

2-14     in the research, development, licensing, or exploitation of that

2-15     intellectual property with the approval of the commissioner; or

2-16                 (2)  for an individual, at the request of the

2-17     commissioner, to serve as a member of the board of directors or

2-18     other governing board of a business entity that has an agreement

2-19     with this state or a political subdivision of this state relating

2-20     to the research, development, licensing, or exploitation of

2-21     intellectual property in which the department has an ownership

2-22     interest.

2-23           (e)  The commissioner shall institute intellectual property

2-24     policies for the department that establish minimum standards for:

2-25                 (1)  the public disclosure or availability of products,

2-26     technology, and scientific information, including inventions,

2-27     discoveries, trade secrets, and computer software;

2-28                 (2)  review by the department of products, technology,

2-29     and scientific information, including consideration of ownership

2-30     and appropriate legal protection;

2-31                 (3)  the licensing of products, technology, and

2-32     scientific information;

2-33                 (4)  the identification of ownership and licensing

2-34     responsibilities for each class of intellectual property;

2-35                 (5)  royalty participation by inventors and the

2-36     department; and

2-37                 (6)  equity and management participation on the part of

2-38     the inventor in business entities that use technology or scientific

2-39     information created at the department.

2-40           SECTION 2.  The importance of this legislation and the

2-41     crowded condition of the calendars in both houses create an

2-42     emergency and an imperative public necessity that the

2-43     constitutional rule requiring bills to be read on three several

2-44     days in each house be suspended, and this rule is hereby suspended,

2-45     and that this Act take effect and be in force from and after its

2-46     passage, and it is so enacted.

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