Text: SSB03094 Text: SSB03096 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 262B.101 DEFINITIONS.
1 2 As used in this division, unless the context otherwise
1 3 requires:
1 4 1. "Department chairperson" means the chairperson of the
1 5 department in which a university faculty member, who is
1 6 participating in or wishes to participate in a technology
1 7 commercialization company, is employed.
1 8 2. "Staff member" means a university staff member holding
1 9 an unclassified appointment, a graduate associate, or a
1 10 student employee.
1 11 3. "Staff supervisor" means the supervisor of a university
1 12 staff member, graduate associate, or student employee, who is
1 13 participating in or wishes to participate in a technology
1 14 commercialization company.
1 15 4. "Technology commercialization company" means a private
1 16 entity that is owned in whole or in part by a university
1 17 employee and that has as a purpose the development and
1 18 commercialization of university-owned technology created by
1 19 the university employee.
1 20 5. "University" means a university under the control of
1 21 the state board of regents.
1 22 6. "University employee" means a faculty member or a staff
1 23 member at a university.
1 24 Sec. 2. NEW SECTION. 262B.102 TECHNOLOGY TRANSFER
1 25 OVERSIGHT COMMITTEE – CONFLICT-OF-INTEREST ADMINISTRATOR –
1 26 LICENSING AUTHORITY.
1 27 Each university shall appoint or designate all of the
1 28 following:
1 29 1. A technology transfer oversight committee that shall be
1 30 responsible for the approval and oversight of technology
1 31 commercialization companies.
1 32 2. A conflict-of-interest administrator who shall be
1 33 responsible for assisting university employees in identifying,
1 34 managing, and eliminating conflicts of interest. The
1 35 conflict-of-interest administrator shall facilitate the
2 1 development of conflict-of-interest management plans for
2 2 university employees participating in a technology
2 3 commercialization company.
2 4 3. A licensing authority who shall establish the terms of
2 5 any transaction between a technology commercialization company
2 6 and the university.
2 7 Sec. 3. NEW SECTION. 262B.103 APPLICABILITY.
2 8 This division applies to a university employee who meets
2 9 all of the following criteria:
2 10 1. The university employee is specifically assigned to
2 11 engage in research and development activities.
2 12 2. The university employee creates intellectual property
2 13 owned by the university.
2 14 3. The university employee desires to hold an ownership
2 15 interest in a technology commercialization company.
2 16 Sec. 4. NEW SECTION. 262B.104 DEPARTMENT CHAIRPERSONS –
2 17 STAFF SUPERVISORS.
2 18 1. A department chairperson is responsible for all of the
2 19 following:
2 20 a. Ensuring that a university employee who participates in
2 21 a technology commercialization company complies with
2 22 applicable university policies governing the terms and
2 23 conditions of employment and academic and research activities.
2 24 b. Ensuring that a university employee who participates in
2 25 a technology commercialization company complies with the paid
2 26 external consulting and faculty conflict-of-interest policies.
2 27 c. Reviewing and making recommendations regarding the
2 28 property of private business activities reported by university
2 29 employees in disclosure forms required by faculty conflict-of-
2 30 interest policies.
2 31 2. A staff supervisor is responsible for all of the
2 32 following:
2 33 a. Ensuring that a university employee who participates in
2 34 a technology commercialization company complies with
2 35 applicable university policies governing the terms and
3 1 conditions of employment and academic and research activities.
3 2 b. Ensuring that a university employee who participates in
3 3 a technology commercialization company complies with policies
3 4 regarding conflicts of interest and employment outside the
3 5 university.
3 6 c. Reviewing and making recommendations regarding the
3 7 property of private business activities reported by university
3 8 employees in disclosure forms required by the policies
3 9 regarding conflicts of interest and employment outside the
3 10 university.
3 11 Sec. 5. NEW SECTION. 262B.105 APPROVAL PROCESS.
3 12 1. In order for a university employee to participate in a
3 13 technology commercialization company, the university employee
3 14 shall obtain approval from the department chairperson and any
3 15 other supervisor designated by the university. The licensing
3 16 authority shall establish the terms of the transaction between
3 17 the technology commercialization company and the university.
3 18 The conflict-of-interest administrator shall facilitate the
3 19 development of a conflict-of-interest management plan.
3 20 2. The technology transfer oversight committee shall
3 21 review the sufficiency of business terms and conflict-of-
3 22 interest management plans relating to a technology
3 23 commercialization company. Written approval from the
3 24 technology transfer oversight committee must be obtained
3 25 before any business agreements relating to a technology
3 26 commercialization company and the university are finalized.
3 27 3. A university employee may discuss initial formation of
3 28 a technology commercialization company with the licensing
3 29 authority. Discussions relating to the initial formation of a
3 30 technology commercialization company shall not include
3 31 negotiation of option and licensing terms. Negotiation of
3 32 option and licensing terms shall only be conducted by a third
3 33 party on behalf of the university employee. The third party
3 34 shall be selected by the university employee.
3 35 4. In order to receive exclusive license to a university
4 1 technology, a technology commercialization company must submit
4 2 a business plan to the licensing authority. The licensing
4 3 authority must determine if the business plan is viable. A
4 4 viable business plan shall include, at a minimum, all of the
4 5 following:
4 6 a. A capitalization plan demonstrating access to funds
4 7 necessary for company growth.
4 8 b. A proposed management team.
4 9 c. Milestones for product development and commercial sale.
4 10 5. In return for the exclusive license to the university
4 11 technology, a technology commercialization company shall grant
4 12 a foundation affiliated with the university an equity interest
4 13 in the company as negotiated by the licensing authority.
4 14 6. a. A department chairperson or staff supervisor shall
4 15 be an active participant in discussions with the technology
4 16 transfer oversight committee and in the development of the
4 17 conflict-of-interest management plan relating to a technology
4 18 commercialization company.
4 19 b. A department chairperson or staff supervisor that has a
4 20 financial interest or is a coparticipant with a university
4 21 employee in a technology commercialization company shall not
4 22 be an active participant under paragraph "a" and the
4 23 university shall designate an appropriate person to be an
4 24 active participant under paragraph "a".
4 25 c. If a technology transfer oversight committee determines
4 26 that it is not possible for a department chairperson, staff
4 27 supervisor, or any other person designated by the university
4 28 to provide effective active participation under paragraph "a",
4 29 the committee shall not approve any business agreements
4 30 relating to the technology commercialization company and the
4 31 university.
4 32 Sec. 6. NEW SECTION. 262B.106 UNIVERSITY EMPLOYEES –
4 33 DUTIES.
4 34 1. While a faculty member is encouraged to develop
4 35 discoveries and inventions with commercial potential, the
5 1 faculty member shall do so with due regard to the broader
5 2 teaching and research mission of the university. A faculty
5 3 member shall not allow a financial opportunity arising out of
5 4 research to influence their teaching duties or interfere with
5 5 relationships with other university employees. Student
5 6 research assignments shall be based on student interest and
5 7 academic development. The cooperative nature of the academic
5 8 environment shall be respected and promoted by the sharing of
5 9 information and participating in joint research efforts
5 10 between university employees.
5 11 2. A faculty member shall not allow private business
5 12 activities to interfere with the performance of any
5 13 university-related teaching, research, or service obligations.
5 14 Authorized private business activities shall be undertaken in
5 15 accordance with university policy and pursuant to any formal
5 16 consulting and conflict-of-interest management plans signed by
5 17 the faculty member, technology commercialization company, and
5 18 the university, and approved by the department chairperson,
5 19 the conflict-of-interest administrator, the licensing
5 20 authority, and the legal department of the university.
5 21 3. A staff member may engage in activities relating to a
5 22 technology commercialization company during regularly assigned
5 23 working hours only if the staff member takes approved leave.
5 24 When activities relating to a technology commercialization
5 25 company are performed outside regularly assigned working
5 26 hours, the activities must be in accordance with university
5 27 conflict-of-interest policies and outside employment policies
5 28 and in accordance with a formal conflict-of-interest
5 29 management plan signed by the staff member, the technology
5 30 commercialization company, and the university, and approved by
5 31 the staff supervisor, the conflict-of-interest administrator,
5 32 the licensing authority, and the legal department of the
5 33 university.
5 34 4. A staff member may pursue research projects as
5 35 authorized by a staff supervisor; however, staff supervisors
6 1 should authorize only those staff research projects that will
6 2 advance the missions of the university and the department,
6 3 without regard to the financial interests of individual
6 4 university employees.
6 5 Sec. 7. NEW SECTION. 262B.107 CONFLICTS OF INTEREST.
6 6 1. University facilities, equipment, and other resources
6 7 may be used for research benefiting a technology
6 8 commercialization company only pursuant to a contractual
6 9 arrangement with the university.
6 10 2. A university employee may hold a management position in
6 11 a technology commercialization company.
6 12 3. A university employee engaged in approved private
6 13 business activities who is unable to perform all of their
6 14 university responsibilities shall reduce private business
6 15 activities or request a reduction of appointment or other
6 16 approved leave.
6 17 4. Graduate and undergraduate students may use university
6 18 facilities, equipment, and other resources to perform research
6 19 benefiting a technology commercialization company only
6 20 pursuant to a sponsored research agreement. Such research
6 21 shall not be used to satisfy the criteria for a thesis or
6 22 dissertation if the material is restricted from publication
6 23 and a student shall be informed in writing of this restriction
6 24 prior to the start of their research.
6 25 5. Prior to a student being employed by a technology
6 26 commercialization company, the student, supervising faculty
6 27 member or staff member, chairperson of the student's
6 28 department, chairperson of the graduate studies committee, and
6 29 a company representative must sign an agreement disclosing the
6 30 student's rights and obligations.
6 31 6. A student shall not be employed by a technology
6 32 commercialization company in which a faculty member has an
6 33 ownership interest if any of the following circumstances
6 34 exist:
6 35 a. The student is enrolled in a course taught by the
7 1 faculty member.
7 2 b. The faculty member is a member of the student's thesis
7 3 or dissertation committee.
7 4 c. The faculty member is the student's advisor or the
7 5 director of the student's thesis or dissertation research.
7 6 7. A technology commercialization company shall not enter
7 7 into any agreement with the university for the purchase, sale,
7 8 or rental of equipment, supplies, or services other than those
7 9 authorized by the technology transfer oversight committee.
7 10 8. A university employee that is not directly involved
7 11 with research and development of technology licensed to a
7 12 technology commercialization company shall not hold an equity
7 13 interest in the company.
7 14 9. University regulatory review boards may be utilized for
7 15 research benefiting a technology commercialization company
7 16 only pursuant to a sponsored research agreement.
7 17 10. A university employee shall not assume the role of
7 18 principal investigator in a sponsored research project funded
7 19 by a technology commercialization company in which the
7 20 university employee has an interest if the project involves
7 21 the use of human subjects or if the project involves
7 22 veterinary clinical trials involving the use of animals. In
7 23 any other case, a university employee may assume the role of
7 24 principal investigator if a formal research integrity plan is
7 25 approved by the technology transfer oversight committee, the
7 26 conflict-of-interest administrator, and the legal department
7 27 of the university.
7 28 11. An agreement for a sponsored research project funded
7 29 by a technology commercialization company shall include, at a
7 30 minimum, a requirement for full university publication rights
7 31 and fully negotiated cost recoveries.
7 32 12. A university employee participating in an approved
7 33 technology commercialization company continues to be subject
7 34 to university policy regarding patents and copyrights. A new
7 35 invention or discovery made as a result of a university
8 1 employee's research efforts for the company, including those
8 2 made under formal consulting agreements, shall be owned by the
8 3 university if university property, equipment, or resources
8 4 were used during the research efforts. The company shall be
8 5 offered the exclusive option to the technology. A new
8 6 invention or discovery developed by a university employee for
8 7 the company must be disclosed to the licensing authority.
8 8 EXPLANATION
8 9 This bill relates to the commercialization of technology
8 10 owned by a university under the control of the state board of
8 11 regents.
8 12 The bill provides that each university shall appoint or
8 13 designate a technology transfer oversight committee, a
8 14 conflict-of-interest administrator, and a licensing authority.
8 15 The bill provides that the technology transfer oversight
8 16 committee shall be responsible for the approval and oversight
8 17 of technology commercialization companies. The bill defines
8 18 "technology commercialization company" as a private entity
8 19 that is owned in whole or in part by a university employee and
8 20 that has as a purpose the development and commercialization of
8 21 university-owned technology created by the university
8 22 employee. The bill provides that a conflict-of-interest
8 23 administrator shall be responsible for assisting university
8 24 employees in identifying, managing, and eliminating conflicts
8 25 of interest and shall facilitate the development of conflict-
8 26 of-interest management plans for university employees
8 27 participating in a technology commercialization company. The
8 28 bill provides that a licensing authority shall establish the
8 29 terms of any transaction between a technology
8 30 commercialization company and the university.
8 31 The bill applies to a university employee who is
8 32 specifically assigned to engage in research and development
8 33 activities, creates intellectual property owned by the
8 34 university, and desires to hold an ownership interest in a
8 35 technology commercialization company.
9 1 The bill provides that a department chairperson and staff
9 2 supervisor shall ensure that a university employee who
9 3 participates in a technology commercialization company
9 4 complies with applicable university policies governing the
9 5 terms and conditions of employment and academic and research
9 6 activities and relevant external employment and conflict-of-
9 7 interest policies. A department chairperson and staff
9 8 supervisor shall review and make recommendations regarding the
9 9 property of private business activities reported by university
9 10 employees in certain disclosure forms.
9 11 The bill provides that, in order for a university employee
9 12 to participate in a technology commercialization company, the
9 13 university employee shall obtain approval from the department
9 14 chairperson and any other supervisor designated by the
9 15 university. The bill provides that the licensing authority
9 16 shall establish the terms of the transaction between the
9 17 technology commercialization company and the university. The
9 18 conflict-of-interest administrator shall facilitate the
9 19 development of a conflict-of-interest management plan. The
9 20 bill provides that the technology transfer oversight committee
9 21 shall review the sufficiency of business terms and conflict-
9 22 of-interest management plans relating to a technology
9 23 commercialization company. The bill requires written approval
9 24 from the technology transfer oversight committee to be
9 25 obtained before any business agreements relating to a
9 26 technology commercialization company and the university are
9 27 finalized.
9 28 The bill provides that a university employee may discuss
9 29 initial formation of a technology commercialization company
9 30 with the licensing authority, but that discussions relating to
9 31 the initial formation shall not include negotiation of option
9 32 and licensing terms.
9 33 The bill provides that, in order to receive exclusive
9 34 license to a university technology, a technology
9 35 commercialization company must submit a business plan to the
10 1 licensing authority. The licensing authority must determine
10 2 if the business plan is viable and that a viable plan
10 3 includes, at a minimum, a capitalization plan demonstrating
10 4 access to funds necessary for company growth, a proposed
10 5 management team, and milestones for product development and
10 6 commercial sale.
10 7 The bill provides that, in return for the exclusive license
10 8 to the university technology, a technology commercialization
10 9 company shall grant a foundation affiliated with the
10 10 university an equity interest in the company as negotiated by
10 11 the licensing authority.
10 12 The bill provides that a department chairperson or staff
10 13 supervisor must be an active participant in discussions with
10 14 the technology transfer oversight committee and in the
10 15 development of the conflict-of-interest management plan
10 16 relating to a technology commercialization company. The bill
10 17 provides for alternatives if a department chairperson or staff
10 18 supervisor has a financial interest or is a coparticipant with
10 19 a university employee in a technology commercialization
10 20 company.
10 21 The bill provides that while a faculty member is encouraged
10 22 to develop discoveries and inventions with commercial
10 23 potential, the faculty member is required to do so with due
10 24 regard to the broader teaching and research mission of the
10 25 university. The bill includes several provisions regarding
10 26 preservation of that mission.
10 27 The bill provides that a faculty member shall not allow
10 28 private business activities to interfere with the performance
10 29 of any university-related teaching, research, or service
10 30 obligations. The bill provides that authorized private
10 31 business activities shall be undertaken in accordance with
10 32 university policy and pursuant to any formal consulting and
10 33 conflict-of-interest management plans signed by the faculty
10 34 member, technology commercialization company, and the
10 35 university, and approved by the department chairperson, the
11 1 conflict-of-interest administrator, the licensing authority,
11 2 and the legal department of the university.
11 3 The bill provides that a staff member may engage in
11 4 activities relating to a technology commercialization company
11 5 during regularly assigned working hours only if the staff
11 6 member takes approved leave. The bill provides that when
11 7 activities relating to a technology commercialization company
11 8 are performed outside regularly assigned working hours, the
11 9 activities must in accordance with university conflict-of-
11 10 interest policies and outside employment policies and in
11 11 accordance with a formal conflict-of-interest management plan
11 12 signed by the staff member, the technology commercialization
11 13 company, and the university, and approved by the staff
11 14 supervisor, the conflict-of-interest administrator, the
11 15 licensing authority, and the legal department of the
11 16 university.
11 17 The bill provides that a staff member may pursue research
11 18 projects as authorized by a staff supervisor; however, staff
11 19 supervisors should authorize only those staff research
11 20 projects that will advance the missions of the university and
11 21 the department, without regard to the financial interests of
11 22 individual employees.
11 23 The bill provides that university facilities, equipment,
11 24 and other resources may be used for research benefiting a
11 25 technology commercialization company only pursuant to a
11 26 contractual arrangement with the university.
11 27 The bill provides that a university employee may hold a
11 28 management position in a technology commercialization company.
11 29 The bill requires a university employee engaged in approved
11 30 private business activities who is unable to perform all of
11 31 their university responsibilities to reduce private business
11 32 activities or request a reduction of appointment or other
11 33 approved leave.
11 34 The bill provides that graduate and undergraduate students
11 35 may use university facilities, equipment, and other resources
12 1 to perform research benefiting a technology commercialization
12 2 company only pursuant to a sponsored research agreement and
12 3 provides that such research shall not be used to satisfy the
12 4 criteria for a thesis or dissertation if the material is
12 5 restricted from publication and a student shall be informed in
12 6 writing of this restriction prior to the start of their
12 7 research. The bill provides that prior to a student being
12 8 employed by a technology commercialization company, the
12 9 student, the supervising faculty member or staff member, the
12 10 chairperson of the student's department, the chairperson of
12 11 the graduate studies committee, and a company representative
12 12 must sign an agreement disclosing the student's rights and
12 13 obligations. The bill provides that a student shall not be
12 14 employed by a technology commercialization company in which a
12 15 faculty member has an ownership interest if certain
12 16 circumstances exist.
12 17 The bill provides that a technology commercialization
12 18 company shall not enter into any agreement with the university
12 19 for the purchase, sale, or rental of equipment, supplies, or
12 20 services other than those authorized by the technology
12 21 transfer oversight committee.
12 22 The bill provides that a university employee that is not
12 23 directly involved with research and development of technology
12 24 licensed to a technology commercialization company shall not
12 25 hold an equity interest in the company.
12 26 The bill provides that university regulatory review boards
12 27 may be utilized for research benefiting a technology
12 28 commercialization company only pursuant to a sponsored
12 29 research agreement.
12 30 The bill provides that a university employee shall not
12 31 assume the role of principal investigator in a sponsored
12 32 research project funded by a technology commercialization
12 33 company in which the university employee has an interest if
12 34 the project involves the use of human subjects or if the
12 35 project involves veterinary clinical trials involving the use
13 1 of animals. The bill provides that, in any other case, a
13 2 university employee may assume the role of principal
13 3 investigator if a formal research integrity plan is approved
13 4 by the technology transfer oversight committee, the conflict-
13 5 of-interest administrator, and the legal department of the
13 6 university. The bill provides that an agreement for a
13 7 sponsored research project funded by a technology
13 8 commercialization company must include, at a minimum, a
13 9 requirement for full university publication rights and fully
13 10 negotiated cost recoveries.
13 11 The bill provides that a university employee participating
13 12 in an approved technology commercialization company continues
13 13 to be subject to university policy regarding patents and
13 14 copyrights.
13 15 LSB 6272SC 80
13 16 tm/sh/8.1
Text: SSB03094 Text: SSB03096 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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