AN ACT

 1-1     relating to programs of institutions of higher education that

 1-2     address small business research and development.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter C, Chapter 61, Education Code, is

 1-5     amended by adding Section 61.0775 to read as follows:

 1-6           Sec. 61.0775.  BUSINESS RESEARCH AND DEVELOPMENT.  (a)  The

 1-7     board shall designate an institution of higher education with

 1-8     appropriate facilities and resources to conduct a continuing study

 1-9     of the programs and other efforts of institutions of higher

1-10     education to address the needs of small businesses in this state

1-11     for assistance in research, development, and prototyping.

1-12           (b)  At times the board considers appropriate, the

1-13     institution conducting the continuing study shall make

1-14     recommendations on actions that may be taken to address the needs

1-15     of small businesses as described by Subsection (a) in the most

1-16     cost-effective manner, including through the participation of

1-17     institutions of higher education in partnerships, ventures, or

1-18     projects that promote the commercialization of technology for or by

1-19     small businesses.  The board shall deliver the recommendations to

1-20     appropriate institutions of higher education and to the

1-21     legislature.

1-22           SECTION 2.  This Act takes effect September 1, 1997.

1-23           SECTION 3.  The importance of this legislation and the

 2-1     crowded condition of the calendars in both houses create an

 2-2     emergency and an imperative public necessity that the

 2-3     constitutional rule requiring bills to be read on three several

 2-4     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1040 passed the Senate on

         April 22, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 18, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1040 passed the House, with

         amendment, on May 16, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor