1-1 By: Harris S.B. No. 994 1-2 (In the Senate - Filed March 6, 1997; March 11, 1997, read 1-3 first time and referred to Committee on International Relations, 1-4 Trade, and Technology; April 3, 1997, reported favorably by the 1-5 following vote: Yeas 7, Nays 1; April 3, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the protection and use of certain products, 1-9 information, and technology of the Texas Department of Health. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter B, Chapter 12, Health and Safety Code, 1-12 is amended by adding Section 12.020 to read as follows: 1-13 Sec. 12.020. PROTECTION AND USE OF INTELLECTUAL PROPERTY. 1-14 (a) The department may: 1-15 (1) apply for, register, secure, hold, and protect 1-16 under the laws of the United States, any state, or any nation: 1-17 (A) a patent for an invention or discovery of, 1-18 or improvement to, any process, machine, manufacture, or 1-19 composition of matter; 1-20 (B) a copyright for an original work of 1-21 authorship fixed in any tangible medium of expression now known or 1-22 later developed that can be perceived, reproduced, or otherwise 1-23 communicated; 1-24 (C) a trademark, service mark, collective mark, 1-25 or certification mark for a word, name, symbol, device, or slogan, 1-26 or any combination of those items, that has been adopted and used 1-27 by the department to identify goods or services and distinguish 1-28 those goods or services from other goods or services; or 1-29 (D) other evidence of protection or exclusivity 1-30 issued in or for intellectual property; 1-31 (2) enter into a contract with an individual or 1-32 company for the sale, lease, marketing, or other distribution of 1-33 intellectual property of the department; 1-34 (3) obtain under a contract entered into under 1-35 Subdivision (2) a royalty, license right, or other appropriate 1-36 means of securing appropriate compensation for the development or 1-37 purchase of intellectual property of the department; and 1-38 (4) waive or reduce the amount of a fee, royalty, or 1-39 other thing of monetary or nonmonetary value to be assessed by the 1-40 department if the department determines that the waiver will: 1-41 (A) further the goals and missions of the 1-42 department; and 1-43 (B) result in a net benefit to the state. 1-44 (b) Intellectual property for which the department has 1-45 applied for or received a patent, copyright, trademark, or other 1-46 evidence of protection or exclusivity is excepted from required 1-47 disclosure under Chapter 552, Government Code. 1-48 (c) The department may establish, maintain, and support a 1-49 Center for Public Health Development and may accept and administer, 1-50 on terms and conditions acceptable to the department, gifts, 1-51 grants, and donations to aid in the establishment, maintenance, and 1-52 operation of the center. 1-53 (d) Subject to board rules, the center may solicit and 1-54 submit for the approval of the department agreements with any 1-55 persons for funding the discovery, development, and 1-56 commercialization of new products, technology, and scientific 1-57 information. 1-58 (e) To carry out the purposes of the center under this 1-59 section, the department may, through the center: 1-60 (1) own and license rights to products, technology, 1-61 and scientific information; 1-62 (2) own shares in a corporation engaged in the 1-63 development, manufacture, or marketing of products, technology, or 1-64 scientific information under a license from the department, the 2-1 center, or a corporation owned or controlled by the department; 2-2 (3) participate as a general or limited partner either 2-3 directly or through a subsidiary corporation formed for that 2-4 purpose, in a limited partnership, general partnership, or joint 2-5 venture engaged in the development, manufacture, or marketing of 2-6 products, technology, or scientific information under a license 2-7 from the department, the center, or a corporation owned or 2-8 controlled by the department; and 2-9 (4) carry on any other activities the department 2-10 determines appropriate for achieving the purposes of this section. 2-11 (f) The Center for Public Health Development established 2-12 under this section may not receive general revenue funds through a 2-13 special item appropriation in a General Appropriations Act. 2-14 (g) The Center for Public Health Development shall cooperate 2-15 fully with similar programs operated by other state entities. 2-16 (h) Money paid to the department under this section shall be 2-17 deposited to the credit of the general revenue fund. 2-18 (i) It is not a violation of Chapter 572, Government Code, 2-19 or another law of this state: 2-20 (1) for an employee of the department who conceives, 2-21 creates, discovers, invents, or develops intellectual property to 2-22 own or to be awarded any amount of equity interest or participation 2-23 in the research, development, licensing, or exploitation of that 2-24 intellectual property with the approval of the commissioner; or 2-25 (2) for an individual, at the request of the 2-26 commissioner, to serve as a member of the board of directors or 2-27 other governing board of a business entity that has an agreement 2-28 with this state or a political subdivision of this state relating 2-29 to the research, development, licensing, or exploitation of 2-30 intellectual property in which the department or the Center for 2-31 Public Health Development has an ownership interest. 2-32 (j) The commissioner shall institute intellectual property 2-33 policies for the department that establish minimum standards for: 2-34 (1) the public disclosure or availability of products, 2-35 technology, and scientific information, including inventions, 2-36 discoveries, trade secrets, and computer software; 2-37 (2) review by the department of products, technology, 2-38 and scientific information, including consideration of ownership 2-39 and appropriate legal protection; 2-40 (3) the licensing of products, technology, and 2-41 scientific information; 2-42 (4) the identification of ownership and licensing 2-43 responsibilities for each class of intellectual property; 2-44 (5) royalty participation by inventors and the 2-45 department; and 2-46 (6) equity and management participation on the part of 2-47 the inventor in business entities that use technology or scientific 2-48 information created at the department. 2-49 SECTION 2. The importance of this legislation and the 2-50 crowded condition of the calendars in both houses create an 2-51 emergency and an imperative public necessity that the 2-52 constitutional rule requiring bills to be read on three several 2-53 days in each house be suspended, and this rule is hereby suspended, 2-54 and that this Act take effect and be in force from and after its 2-55 passage, and it is so enacted. 2-56 * * * * *