By McCall H.B. No. 3270
2001S0428/2
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. Subtitle H, Title 3, Education Code, is amended
1-6 by adding Chapter 153 to read as follows:
1-7 CHAPTER 153. CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER
1-8 Sec. 153.001. DEFINITIONS. In this chapter:
1-9 (1) "Center" means an office, department, or other
1-10 organizational unit established under this chapter.
1-11 (2) "Governing board" has the meaning assigned by
1-12 Section 61.003.
1-13 (3) "Institution of higher education" has the meaning
1-14 assigned by Section 61.003.
1-15 (4) "Organization" has the meaning assigned by Section
1-16 1.201, Business & Commerce Code.
1-17 (5) "Person" has the meaning assigned by Section
1-18 1.201, Business & Commerce Code.
1-19 (6) "Technology" means the application of scientific
1-20 knowledge for practical purposes and includes inventions,
1-21 discoveries, trade secrets, copyrighted materials, tools, machines,
1-22 materials, processes to do work, processes to produce goods,
1-23 processes to perform services, processes to carry out other useful
1-24 activities, trademarks, and computer software.
1-25 Sec. 153.002. FINDINGS. The legislature finds that:
2-1 (1) it is essential to the continued economic growth
2-2 and diversification of this state that technology development and
2-3 transfer be promoted and expanded;
2-4 (2) the students, scientists, researchers, faculty,
2-5 and staff of the institutions of higher education of this state
2-6 have developed and, in all likelihood, will continue to develop
2-7 technology that will contribute to the continued growth and
2-8 diversification of the state's economy;
2-9 (3) the electorate of this state authorized the
2-10 legislature to allow for the programs created by this chapter by
2-11 adopting Section 52-a, Article III, Texas Constitution; and
2-12 (4) an institution of higher education is authorized
2-13 to engage in technology development and transfer activities under
2-14 the authority provided to its governing board and other state and
2-15 federal law.
2-16 Sec. 153.003. CREATION OF CENTERS. (a) An institution of
2-17 higher education, subject to approval by its governing board, is
2-18 authorized to establish centers to manage, transfer, market, or
2-19 otherwise commercialize technology owned by it or in which it owns
2-20 an interest.
2-21 (b) Each center shall be administered within an institution
2-22 of higher education.
2-23 (c) Centers may provide services to multiple institutions of
2-24 higher education. An institution of higher education may contract
2-25 with a center under the control of a governing board other than its
2-26 own.
3-1 Sec. 153.004. OPERATION OF CENTERS. (a) To the extent
3-2 authorized by its governing board, an institution of higher
3-3 education, through a center established under this chapter, may:
3-4 (1) accept and administer funds, including state
3-5 appropriations, gifts, grants, contracts, and donations, to aid in
3-6 the establishment, maintenance, and operation of the center or to
3-7 aid in the discovery, development, protection, or commercialization
3-8 of technology;
3-9 (2) solicit and enter into agreements to fund the
3-10 discovery, development, protection, and commercialization of
3-11 technology;
3-12 (3) make technology owned or controlled by it
3-13 available to persons for commercial applications through license
3-14 agreements, assignments, or other forms of transfer;
3-15 (4) acquire interests in and ownership of technology;
3-16 (5) provide business, scientific, and engineering
3-17 services and technical assistance to persons engaged in the
3-18 development, manufacture, or marketing of technology in which it
3-19 owns an interest;
3-20 (6) acquire insurance and pay premiums on insurance of
3-21 any kind and in amounts considered necessary and advisable to
3-22 accomplish purposes of this chapter;
3-23 (7) establish and operate corporations, either for
3-24 profit or not for profit, and limited liability companies for the
3-25 development and commercialization of technology and convey equity
3-26 interests in such entities; and
4-1 (8) engage in other related activities required to
4-2 achieve the purposes of this chapter.
4-3 (b) Property and services of institutions of higher
4-4 education may be used to achieve the purposes of this chapter.
4-5 Sec. 153.005. PROGRAMS. (a) To the extent authorized by
4-6 its governing board, an institution of higher education, through a
4-7 center, may operate programs to provide assistance to persons in
4-8 commercializing technology owned by it or in which it has an
4-9 interest. Assistance may include providing monetary support or
4-10 nonmonetary support, including the use of premises, computers,
4-11 computer software, telecommunications terminal equipment, office
4-12 equipment and supplies, machinery, custodial services, utilities,
4-13 or other services that are customarily treated as overhead expenses
4-14 by institutions of higher education.
4-15 (b) The policies and procedures to be used by an institution
4-16 of higher education to assess the qualifications of persons
4-17 participating in a center's programs, including objective criteria
4-18 for admission and for the measurement of progress and standards for
4-19 continuance or termination of participation, shall be approved by
4-20 the institution's governing board.
4-21 Sec. 153.006. SUPPORT OF CENTERS. In order to carry out the
4-22 purposes of this chapter and to support the activities of centers
4-23 described in this chapter, to the extent authorized by its
4-24 governing board, an institution of higher education may:
4-25 (1) enter into agreements establishing royalties,
4-26 fees, and other consideration for technology developed in whole or
5-1 part by it;
5-2 (2) accept equity interests in organizations that
5-3 license, manage, or otherwise administer rights to technology
5-4 belonging to it or under its control in exchange for such rights,
5-5 in whole or in part;
5-6 (3) accept equity interests in organizations that
5-7 license or otherwise have rights in its technology as consideration
5-8 for its providing monetary, business, scientific, or engineering
5-9 services or technical assistance;
5-10 (4) use income from the commercialization of
5-11 technology to fund the activities of the center;
5-12 (5) solicit, accept, and administer gifts, grants, and
5-13 donations; and
5-14 (6) enter into such other business arrangements as may
5-15 be appropriate for achieving the purposes of this chapter.
5-16 Sec. 153.007. NO FIDUCIARY DUTY. Except as otherwise
5-17 provided by law, a governing board, an institution of higher
5-18 education, a university system, a center, or any employee or member
5-19 of those entities does not owe a fiduciary duty to any person
5-20 claiming an interest in consideration received by a university
5-21 system or an institution of higher education in exchange for
5-22 technology.
5-23 SECTION 2. This Act takes effect September 1, 2001.