2005 Texas Education Code CHAPTER 153. CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER

EDUCATION CODE

CHAPTER 153. CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER


	§ 153.001. DEFINITIONS.  In this chapter:                                   
		(1)  "Center" means an office, department, or other 
organizational unit established under this chapter.
		(2)  "Governing board" has the meaning assigned by 
Section 61.003.          
		(3)  "Institution of higher education" has the meaning 
assigned by Section 61.003.
		(4)  "Organization" has the meaning assigned by Section 
1.201, Business & Commerce Code.
		(5)  "Person" has the meaning assigned by Section 
1.201, Business & Commerce Code.
		(6)  "Technology" means the application of scientific 
knowledge for practical purposes and includes inventions, 
discoveries, trade secrets, copyrighted materials, tools, 
machines, materials, processes to do work, processes to produce 
goods, processes to perform services, processes to carry out other 
useful activities, trademarks, and computer software.

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.           


	§ 153.002. FINDINGS.  The legislature finds that:                           
		(1)  it is essential to the continued economic growth 
and diversification of this state that technology development and 
transfer be promoted and expanded;
		(2)  the students, scientists, researchers, faculty, 
and staff of the institutions of higher education of this state have 
developed and, in all likelihood, will continue to develop 
technology that will contribute to the continued growth and 
diversification of the state's economy;
		(3)  the electorate of this state authorized the 
legislature to allow for the programs created by this chapter by 
adopting Section 52-a, Article III, Texas Constitution;  and
		(4)  an institution of higher education is authorized 
to engage in technology development and transfer activities under 
the authority provided to its governing board and other state and 
federal law.

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.           


	§ 153.003. CREATION OF CENTERS.  (a) An institution of 
higher education, subject to approval by its governing board, is 
authorized to establish centers to manage, transfer, market, or 
otherwise commercialize technology owned by it or in which it owns 
an interest.
	(b)  Each center shall be administered within an institution 
of higher education.
	(c)  Centers may provide services to multiple institutions 
of higher education.  An institution of higher education may 
contract with a center under the control of a governing board other 
than its own.

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.           


	§ 153.004. OPERATION OF CENTERS.  (a) To the extent 
authorized by its governing board, an institution of higher 
education, through a center established under this chapter, may:
		(1)  accept and administer funds, including state 
appropriations, gifts, grants, contracts, and donations, to aid in 
the establishment, maintenance, and operation of the center or to 
aid in the discovery, development, protection, or 
commercialization of technology;
		(2)  solicit and enter into agreements to fund the 
discovery, development, protection, and commercialization of 
technology;
		(3)  make technology owned or controlled by it 
available to persons for commercial applications through license 
agreements, assignments, or other forms of transfer;
		(4)  acquire interests in and ownership of technology;                        
		(5)  provide business, scientific, and engineering 
services and technical assistance to persons engaged in the 
development, manufacture, or marketing of technology in which it 
owns an interest;
		(6)  acquire insurance and pay premiums on insurance of 
any kind and in amounts considered necessary and advisable to 
accomplish the purposes of this chapter;
		(7)  establish and operate corporations, either for 
profit or not for profit, and limited liability companies for the 
development and commercialization of technology and convey equity 
interests in such entities;  and
		(8)  engage in other related activities required to 
achieve the purposes of this chapter.
	(b)  Property and services of institutions of higher 
education may be used to achieve the purposes of this chapter.

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.           


	§ 153.005. PROGRAMS.  (a) To the extent authorized by its 
governing board, an institution of higher education, through a 
center, may operate programs to provide assistance to persons in 
commercializing technology owned by it or in which it has an 
interest.  Assistance may include providing monetary support or 
nonmonetary support, including the use of premises, computers, 
computer software, telecommunications terminal equipment, office 
equipment and supplies, machinery, custodial services, utilities, 
or other services that are customarily treated as overhead expenses 
by institutions of higher education.
	(b)  The policies and procedures to be used by an institution 
of higher education to assess the qualifications of persons 
participating in a center's programs, including objective criteria 
for admission and for the measurement of progress and standards for 
continuance or termination of participation, shall be approved by 
the institution's governing board.

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.           


	§ 153.006. SUPPORT OF CENTERS.  (a) In order to carry out 
the purposes of this chapter and to support the activities of 
centers described in this chapter, to the extent authorized by its 
governing board, an institution of higher education may:
		(1)  enter into agreements establishing royalties, 
fees, and other consideration for technology developed in whole or 
part by it;
		(2)  accept equity interests in organizations that 
license, manage, or otherwise administer rights to technology 
belonging to it or under its control in exchange for such rights, in 
whole or in part;
		(3)  accept equity interests in organizations that 
license or otherwise have rights in its technology as consideration 
for its providing monetary, business, scientific, or engineering 
services or technical assistance;
		(4)  use income from the commercialization of 
technology to fund the activities of the center;
		(5)  solicit, accept, and administer gifts, grants, and 
donations;          
		(6)  enter into contracts for legal services with a 
competent lawyer or law firm to:
			(A)  prepare, file, pursue, and maintain patent 
applications in the United States or foreign jurisdictions;
			(B)  secure copyright protection for computer 
software;                    
			(C)  prepare, file, and pursue trademark and 
service mark applications;    
			(D)  pursue litigation to prevent or stop 
infringement of any intellectual property rights of the 
institution;  or
			(E)  handle any other legal matter related to the 
operation and activities of the center;  and
		(7)  enter into such other business arrangements as may 
be appropriate for achieving the purposes of this chapter.
	(b)  The fees or other compensation paid in connection with a 
legal services contract authorized by Subsection (a) may be paid on 
a contingency fee basis, at an hourly rate, or on another basis the 
governing board of the institution considers appropriate.

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.  
Amended by Acts 2003, 78th Leg., ch. 1266, § 1.12, eff. June 20, 
2003.


	§ 153.007. NO FIDUCIARY DUTY.  Except as otherwise 
provided by law, a governing board, an institution of higher 
education, 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 an institution of higher education in exchange for 
technology.

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.           


	§ 153.008. BIENNIAL REPORT.  Not later than December 1 of 
each even-numbered year, the Texas Higher Education Coordinating 
Board shall report to the governor and to the legislature regarding 
activities conducted at institutions of higher education under this 
chapter.  The form of the report shall be developed by the Texas 
Higher Education Coordinating Board in consultation with 
institutions of higher education and shall include the following 
measures for each institution of higher education:
		(1)  revenues received from licenses, royalties, fees, 
cashed-in equity, and other forms of income permitted by this 
chapter;
		(2)  the number of shares of stock or other equity 
interest held under agreements created pursuant to this chapter;
		(3)  the fair market value of stock or other equity 
interests held in publicly-traded enterprises created pursuant to 
this chapter;
		(4)  new invention disclosures received;                                      
		(5)  the number of new patent applications filed and 
new patents granted;   
		(6)  the number of new license agreements executed;                           
		(7)  the number of new corporations, partnerships, or 
other business entities established to commercialize intellectual 
property owned by the institution of higher education;  and
		(8)  direct expenditures for all activities conducted 
under this chapter.   

Added by Acts 2001, 77th Leg., ch. 749, § 1, eff. Sept. 1, 2001.