HBA-JLV H.B. 2636 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2636
By: George
Higher Education
4/8/2001
Introduced



BACKGROUND AND PURPOSE 

In 1980, the Bayh-Dole Act created a uniform patent policy among the many
federal agencies that  fund research, enabling institutions of higher
education (institution) to retain title to inventions made under
federally-funded research programs and encouraging institutions to
participate in technology transfer practices.  The Act provides an
incentive for universities to market their innovations and for the industry
to make high-risk investments.  Many believe that the increase in
university-industry partnerships are helping to move new technological
discoveries from the laboratory to the marketplace faster and more
efficiently. House Bill 2636 authorizes an institution to establish centers
to manage, transfer, market, or otherwise commercialize technology owned by
the institution or technology in which the institution owns an interest. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2636 amends the Education Code to authorize an institution of
higher education (institution) to establish centers to manage, transfer,
market or otherwise commercialize technology owned by the institution or in
which the institution owns an interest.  The bill requires that the centers
be under the management and control of the governing board of the
institution (board) and requires that each center be administered within an
institution.  The bill authorizes the centers to provide services to
multiple institutions. The bill authorizes an institution to contract with
a center under the control of a governing board other than its own.  The
bill provides that a center may be authorized by its board to enter into
contracts with other centers.  

The bill authorizes an institution, through a center, to accept and
administer funds, solicit and enter into agreements, make technology
available for transfer, acquire interests in and ownership of technology,
provide assistance to persons involved with the technology of the
institution, acquire insurance, establish and operate companies, and engage
in any other related activities to the development and transfer of
technology.  The bill authorizes an institution, through a center, to
provide assistance to persons commercializing technology owned by an
institution, or in which an institution has an interest. 

The bill requires the board to adopt policies and procedures to be used by
an institution to assess the qualifications of persons participating in a
center's programs.  The bill also authorizes an institution to enter into
certain agreements, accept equity agreements in certain organizations, use
income from the commercialization of technology to fund the center, and
enter into other business arrangements. 

The bill provides that a board, an institution, a university system, a
center or any employee thereof does not owe a fiduciary duty to any person
claiming interest in consideration received by a university system or an
institution in exchange for technology.  The bill authorizes a board to
delegate its duties to the chief executive officer of an institution. 

 EFFECTIVE DATE

The Act takes effect the 91st day after adjournment.