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.