By George H.B. No. 2636
77R7609 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to technology development and transfer by institutions of
1-3 higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 3, Subtitle H, Education Code is amended by
1-6 the addition of Chapter 153, as follows:
1-7 CHAPTER 153. CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER
1-8 Sec. 153.001. DEFINITIONS. In this chapter:
1-9 (a) "Center" means an office, department, or other
1-10 organizational unit established under this chapter.
1-11 (b) "Governing board" has the meaning assigned to this term
1-12 by Section 61.003 of this code.
1-13 (c) "Institution of higher education" has the meaning
1-14 assigned by Section 61.003 of this code.
1-15 (d) "Organization" has the meaning assigned by Section 1.201
1-16 of the Business and Commerce Code.
1-17 (e) "Person" has the meaning assigned by Section 1.201 of
1-18 the Business and Commerce Code.
1-19 (f) "Technology" means the application of scientific
1-20 knowledge for practical purposes and includes, but is not limited
1-21 to, inventions, discoveries, trade secrets, copyrighted materials,
1-22 tools, machines, materials, processes to do work, processes to
1-23 produce goods, processes to perform services, processes to carry
1-24 out other useful activities, trademarks and computer software.
2-1 Sec. 153.002. FINDINGS.
2-2 The legislature finds:
2-3 (a) That it is essential to the continued economic growth
2-4 and diversification of this state that technology development and
2-5 transfer be promoted and expanded;
2-6 (b) That the students, scientists, researchers, faculty and
2-7 staff of the institutions of higher education of this state have
2-8 developed and, in all likelihood, will continue to develop
2-9 technology that will contribute to the continued growth and
2-10 diversification of this state's economy; and
2-11 (c) That the electorate of this state authorized the
2-12 legislature to allow for the programs created by this chapter by
2-13 adopting Article III, section 52-a of the Constitution of the State
2-14 of Texas.
2-15 Sec. 153.003. CREATION OF CENTERS. (a) An institution of
2-16 higher education, subject to approval by its Each governing board
2-17 is authorized to establish centers to manage, transfer, market or
2-18 otherwise commercialize technology owned by itan institution of
2-19 higher education, or in which itan institution owns an interest.
2-20 The centers shall be under the management and control of the
2-21 governing board.
2-22 (b) Each center shall be administered within an institution
2-23 of higher education.
2-24 (c) Centers may provide services to multiple institutions of
2-25 higher education. An institution of higher education may contract
2-26 with a center under the control of a governing board other than its
2-27 own. Centers established under this chapter may be authorized by
3-1 the governing boards to enter into contracts with other centers
3-2 established hereunder.
3-3 Sec. 153.004. OPERATION OF CENTERS. An institution of higher
3-4 education, through a center established pursuant to this chapter,
3-5 may:
3-6 (a) accept and administer funds, including but not limited
3-7 to state appropriations, gifts, grants, contracts and donations to
3-8 aid in the establishment, maintenance, and operation of the center
3-9 or to aid in the discovery, development, protection or
3-10 commercialization of technology;
3-11 (b) solicit and enter into agreements to fund the discovery,
3-12 development, protection and commercialization of technology.
3-13 Property and services of institutions of higher education may be
3-14 utilized to achieve the purposes of this chapter;
3-15 (c) make technology owned or controlled by itan institution
3-16 of higher education available to persons for commercial
3-17 applications through license agreements, assignments, or other
3-18 forms of transfer;
3-19 (d) acquire interests in and ownership of technology;
3-20 (e) provide business, scientific and engineering services
3-21 and technical assistance to persons engaged in the development,
3-22 manufacture or marketing of technology in which itan institution of
3-23 higher education owns an interest;
3-24 (f) acquire insurance and pay premiums on insurance of any
3-25 kind and in amounts deemed necessary and advisable to accomplish
3-26 purposes of this chapter;
3-27 (g) establish and operate corporations, profit or
4-1 not-for-profit, and limited liability companies for the development
4-2 and commercialization of technology, and convey equity interests in
4-3 such entities;
4-4 (h) engage in such other related activities as required to
4-5 achieve the purposes of this chapter.
4-6 Sec. 153.005. Programs. (a) An institution of higher
4-7 education, through a Each center, may operate programs to provide
4-8 assistance to persons in commercializing technology owned by it an
4-9 institution of higher education, or in which itan institution of
4-10 higher education has an interest. Assistance may include providing
4-11 monetary support or non-monetary support, including but not limited
4-12 to, the use of premises, computers, computer software,
4-13 telecommunications terminal equipment, office equipment and
4-14 supplies, machinery, custodial services, utilities, or other
4-15 services that are customarily treated as overhead expenses by
4-16 institutions of higher education.
4-17 (b) The governing board shall adopt policies and procedures
4-18 to be used by an institution of higher education the center to
4-19 assess the qualifications of persons participating in a center's
4-20 programs, including objective criteria for admission and
4-21 measurement of progress, and standards for continuance or
4-22 termination of participation shall be approved by its governing
4-23 board.
4-24 Sec. 153.006. Support of Centers. In order to carry out the
4-25 purposes of this chapter, and to support the activities of centers
4-26 described herein, an institution of higher education each center
4-27 may:
5-1 (a) enter into agreements establishing royalties, fees and
5-2 other consideration for technology developed in whole or part by
5-3 institutions of higher education;
5-4 (b) accept equity interests in organizations that license,
5-5 manage, or otherwise administer rights to technology belonging to
5-6 it or under itsthe control of an institution of higher education in
5-7 exchange for such rights, in whole or in part;
5-8 (c) accept equity interests in organizations that licenses
5-9 or otherwise havehas rights in itsan institution of higher
5-10 education's technology as consideration for ita center providing
5-11 monetary, business, scientific or engineering services or technical
5-12 assistance.
5-13 (d) use income from the commercialization of technology to
5-14 fund the activities of the center;
5-15 (e) enter into other business arrangements as may be
5-16 appropriate for achieving the purposes of this chapter.
5-17 Sec. 153.007. No Fiduciary Duty. Except as otherwise
5-18 provided by law, neither a governing board, an institution of
5-19 higher education, a university system, a center or any employee or
5-20 member thereof owes a fiduciary duty to any person claiming an
5-21 interest in consideration received by a university system or an
5-22 institution of higher education in exchange for technology.
5-23 Sec. 153.008. Delegations of Authority. A governing board
5-24 may delegate its duties under this chapter to the chief executive
5-25 officer of an institution of higher education. The delegation
5-26 provided for in this section may be further delegated as allowed by
5-27 the policies of the governing board.
6-1 SECTION 2. EMERGENCY. The importance of this legislation and
6-2 the crowded condition of the calendars in both houses create an
6-3 emergency and an imperative public necessity that the
6-4 constitutional rule requiring bills to be read on three several
6-5 days in each house be suspended, and this rule is hereby suspended.