CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER

Tex. EDUC Code ch. 153

in effect

Tex. EDUC Code § 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, Sec. 1, eff. Sept. 1, 2001.

Tex. EDUC Code § 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, Sec. 1, eff. Sept. 1, 2001.

Tex. EDUC Code § 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, Sec. 1, eff. Sept. 1, 2001.

Tex. EDUC Code § 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, Sec. 1, eff. Sept. 1, 2001.

Tex. EDUC Code § 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, Sec. 1, eff. Sept. 1, 2001.

Tex. EDUC Code § 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 the institution; (2) accept equity interests in, convertible promissory debt instruments issued by, or a combination of equity interests in and convertible promissory debt instruments issued by organizations that license, manage, or otherwise administer rights to technology belonging to the institution or under its control in exchange for such rights, in whole or in part; (3) accept equity interests in, convertible promissory debt instruments issued by, or a combination of equity interests in and convertible promissory debt instruments issued by organizations that license or otherwise have rights in the institution's 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, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 1.12, eff. June 20, 2003. Acts 2013, 83rd Leg., R.S., Ch. 338 (H.B. 2051 ), Sec. 1, eff. June 14, 2013.

Tex. EDUC Code § 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, Sec. 1, eff. Sept. 1, 2001.

Source: TX Statutes (Official Site)URL: https://statutes.capitol.texas.gov/Fetched: 6/28/2026