HBA-LJP C.S.H.B. 2936 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2936 By: Ehrhardt Ways & Means 4/19/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Many appraisal districts in Texas have costly information systems (systems) to aid in highly technological projects. Most software for these systems have a high commercial value which private firms may try to use for commercial ventures. If appraisal districts were able to charge a fee for the use of these systems, then the appraisal districts may be able to recoup the cost of the systems and protect the software from being used for commercial ventures without authorization. C.S.H.B. 2936 authorizes an appraisal district to enforce the protection of an idea, publication, or other original innovation fixed in specified tangible mediums and to implement a fee for the use these mediums. 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 C.S.H.B. 2936 amends the Tax Code to authorize an appraisal district to apply for, register, secure, hold, and protect under the laws of the United States, any state, or any nation a patent, copyright, trademark, or other evidence of protection or exclusivity issued in or for an idea, publication, or other original innovation fixed in specified tangible mediums. The bill authorizes an appraisal district to enter into a nonexclusive license agreement with a third party for the receipt of a fee, royalty, or other binding thing of monetary or nonmonetary value. The bill requires the board of directors of the appraisal district to establish the amount of the fee, royalty, or other thing of value that the district will receive under a license agreement. The bill sets forth the conditions that the amount of the fee, royalty, or other thing value must be based on. The bill requires that money received by an appraisal district be deposited to the credit of the district's general fund. EFFECTIVE DATE January 1, 2002. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2936 modifies the original bill to conform to Texas Legislative Council style and format. The substitute requires the board of directors of an appraisal district to establish the amount of the fee, royalty, or other thing of value that the district will receive under a license agreement relating to the protection or exclusivity issued in or for an idea, publication, or other original innovation fixed in specified tangible mediums. The substitute sets forth the conditions on which the amount of the fee, royalty, or other thing value must be based and requires that the money received by the appraisal district be deposited to the credit of the district's general fund, rather than be deposited in the appraisal district budget.