SRC-MKV S.B. 1190 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1190
By: Ellis, Rodney
Education
6/14/2001
Enrolled


DIGEST AND PURPOSE 

Higher education institutions play an important role in technology research
and development.  When their work is transferred into commercial
applications, the benefits of academic research and development become
available to all.  Federal legislation authorizes and directs institutions
to engage in technology development and transfer activities.  The Texas
Legislature has directed institutions of higher education in Texas to
develop intellectual property policies to comply with the Bayh-Dole Act of
1980. Additionally, the Texas Education Code authorizes The University of
Texas System to establish a Center for Technology Development and Transfer
at The University of Texas at Austin, but no similar authority exists for
other institutions of higher education in the state.  S.B. 1190 amends the
Texas Education Code to authorize any institution of higher education to
establish centers to manage, transfer, market, or otherwise commercialize
technology owned by it or in which it owns an interest.  A center may
provide such services to other institutions.  The bill also clarifies that
such decisions must be approved by the institution's governing board.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 3H, Education Code, by adding Chapter 153, as
follows: 

CHAPTER 153.  CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER

Sec. 153.001.  DEFINITIONS.  Defines "center," "governing board,"
"institution of higher education," "organization," "person," and
"technology."  

Sec. 153.002.  FINDINGS.  Sets forth legislative findings regarding
technology development. 

Sec. 153.003.  CREATION OF CENTERS.  (a) Authorizes an institution of
higher education, subject to approval by its governing board, to establish
centers to manage, transfer, market, or otherwise commercialize technology
owned by it or in which it owns an interest. 

(b) Requires each center to be administered within an institution of higher
education. 

(c) Authorizes centers to provide services to multiple institutions of
higher education. Authorizes an institution of higher education to contract
with a center under the control of a governing board other than its own. 

Sec. 153.004.  OPERATION OF CENTERS.  (a) Authorizes an institution of
higher education, to the extent authorized by its governing board, to carry
out certain duties through a center established under this chapter. 

 (b) Authorizes property and services of institutions of higher education
to be used to achieve the purposes of this chapter. 

Sec. 153.005.  PROGRAMS.  (a) Authorizes an institution of higher
education, to the extent authorized by its governing board, through a
center, to operate programs to provide assistance to persons in
commercializing technology owned by it or in which it has an interest.
Sets forth what forms the assistance may take. 

(b) Requires the policies and procedures to be used by an institution of
higher education to assess the qualifications of persons participating in a
center's programs, including objective criteria for admission and for the
measurement of progress and standards for continuance or termination of
participation, to be approved by the institution's governing board. 

Sec. 153.006.  SUPPORT OF CENTERS.  Authorizes an institution of higher
education, in order to carry out the purposes of this chapter and to
support the activities of centers described in this chapter, to the extent
authorized by its governing board, to perform certain actions. 

Sec. 153.007.  NO FIDUCIARY DUTY.  Provides that except as otherwise
provided by law, a governing board, an institution of higher education, a
university system, a center, or any employee or member of those entities
does not owe a fiduciary duty to any person claiming an interest in
consideration received by a university system or an institution of higher
education in exchange for technology. 

Sec. 153.008.  BIENNIAL REPORT.  Requires the Texas Higher Education
Coordinating Board, not later than December 1 of each even-numbered year,
to report to the governor and to the legislature regarding activities
conducted at institutions of higher education under this chapter.  Requires
the form of the report to be developed by the Texas Higher Education
Coordinating Board in consultation with institutions of higher education
and to include certain information. 

SECTION 2.  Effective date: September 1, 2001.