By Harris S.B. No. 994 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.