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.