HBA-LJP H.B. 3270 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3270
By: McCall
Higher Education
4/8/2001
Introduced



BACKGROUND AND PURPOSE 

Institutions of higher education (institution) play an important role in
technology research and development. When that work is transferred into
commercial applications, the benefits of academic research and development
often become available to all.  Under the federal Bayh-Dole Act of 1980, an
institution is authorized to engage in technology development and then
apply the technology to commercial applications. Under current law,
institutions are required to develop intellectual property policies to
comply with federal regulations.  However, while The University of Texas
System is authorized to establish a Center for Technology Development and
Transfer at The University of Texas at Austin, there are currently no other
institutions with similar authority.  House Bill 3270 authorizes
institutions to establish and administer centers to commercialize
technology which they own or in which they own 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 3270 amends the Education Code to authorize an institution of
higher education (institution), subject to approval of its governing board,
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 each center be
administered within an institution and authorizes the use of property and
services of an institution to achieve the purposes of the center.  The bill
authorizes a center to serve multiple institutions and authorizes an
institution to contract with a center under the control of a governing
board other than its own.  With approval of its governing board, the bill
authorizes an institution, through a center to: 


_accept and administer funds to aid in the establishment and administration
of the center or to aid in the purposes of the center; 

_solicit and enter into agreements to fund the purposes of the center;

_make technology owned or controlled by the institution available to
persons for commercial applications through license agreements,
assignments, or other forms of transfer; 

_acquire interests in and ownership of technology;

_provide services and technical assistance to persons engaged in the
development, manufacture, or marketing of technology in which the
institution owns an interest; 

_acquire insurance and pay premiums on insurance of any kind and in amounts
considered necessary and advisable for purposes of the center; 
 
_establish and operate corporations and limited liability companies for the
development and commercialization of technology and convey interests in
such entities; and 

_engage in other related activities required to achieve the purposes of the
center. 

The bill sets forth provisions regarding the authorization of an
institution, according to the policies and procedures approved by the
governing board, to operate programs through centers to provide monetary
and nonmonetary assistance to persons in commercializing technology owned
by the institution or in which the institution has interest.  To support
the activities of a center, the bill authorizes an institution to enter
into agreements establishing compensation for developed technology, enter
into business arrangements to fulfill the purposes of the center, solicit,
accept, and administer gifts, grants, and donations, use income from the
commercialization of technology to fund center activities, and to accept
equity interest in certain organizations for services, technical
assistance, or for rights to technology. 

The bill provides that a governing board, an institution, 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 institution in exchange for technology. 

EFFECTIVE DATE

September 1, 2001.