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REFERENCE TITLE: community colleges; research; development |
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State of Arizona Senate Fifty-second Legislature Second Regular Session 2016
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SB 1314 |
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Introduced by Senator Allen S
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AN ACT
amending Title 15, chapter 12, article 3, Arizona Revised Statutes, by adding sections 15-1454 and 15-1455; relating to community colleges.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 12, article 3, Arizona Revised Statutes, is amended by adding sections 15-1454 and 15-1455, to read:
15-1454. Community college research or development purposes; product or services development; corporations; financial aid; agreements
A. A community college district governing board by resolution may organize one or more corporations under title 10 to stimulate the flow of capital into the development of specific products or services that have advanced beyond the theoretical stage and are capable of being reduced to practice on a commercial scale. At least one‑half of any voting shares of such a corporation shall be held by the district board, or a majority of the directors, trustees or members of the corporation shall be designated or appointed by the district board. A member or employee of the district board may not receive any direct or indirect compensation, other than reimbursement for actual expenses incurred in the performance of duties as a member, director or trustee of a corporation organized under this section.
B. A corporation may not be organized unless the district board finds in its organizational resolution that the formation of such a corporation will stimulate and encourage the development of new products or services in this state in situations in which financial aid would not otherwise be reasonably available from conventional lending sources. In addition to the powers a corporation may have, each corporation may:
1. Enter into product development agreements with persons doing business in this state, on such terms and conditions as are consistent with the research or development purposes of the district board, to advance financial aid to those persons for the development of specific products or services, procedures and techniques to be developed and produced in this state and condition those agreements on contractual assurances that the benefits of increasing or maintaining employment and tax revenues remain in this state and accrue to it.
2. Acquire, lease, purchase, manage, hold and dispose of real and personal property in this state and lease, convey or deal in or enter into contracts with respect to that property on any terms necessary or incidental to carrying out research or development purposes.
3. Hold patents, copyrights, trademarks or any other evidences of protection or exclusivity as to any products issued under the laws of the United States or any state or nation.
C. Before organizing a corporation under this section, the district board shall develop a procedure for applications for financial aid to be forwarded, together with an application fee prescribed by the district board, to the district board. The district board shall investigate and prepare a report concerning the advisability of approving the proposed financial aid for the applicant and concerning any other factors deemed relevant. The investigation and report shall include such facts about the applicant as the applicant's history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects and integrity of management as well as the feasibility of the proposed project to be granted financial aid, including the state of development of the product or service as well as the likelihood of its commercial feasibility. After consideration of the report and after any other action as is deemed appropriate, the district board shall approve or deny the application and shall promptly notify the applicant of its decision. Approval shall be conditioned on the applicant's payment to the district board, within a reasonable time after notification of approval as the district board may specify, of a commitment fee prescribed by the district board.
D. The district board may receive and accept aid or contributions of monies from any source, including gifts or grants from private sources or from any department or agency of the United States or this state, for the purposes of carrying out this section.
E. The district board may enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit-sharing agreements concerning the research, development, production, storing or marketing of new products or services.
F. Expenditures pursuant to this section may not be included as local revenues under the expenditure limitations established pursuant to article IX, section 21, Constitution of Arizona.
15-1455. Transfer of technology developed by community colleges; intellectual property; policies; officer or employee interest in private entity
A. A community college district governing board shall maintain intellectual property policies that allow, on a case-by-case negotiated basis, the licensing, assignment or other transfer of intellectual property owned by the district board to third parties if the transfer is in the best interest of this state and the community college system or otherwise promotes the dissemination of community college research and development for the public benefit.
B. Notwithstanding title 38, chapter 3, article 8, the community college district governing board, a community college or an entity authorized to manage intellectual property on behalf of the district board or a community college may enter into agreements to transfer intellectual property owned by the district board to an officer or employee of an institution under the jurisdiction of the district board or to an entity in which an officer or employee maintains a substantial interest as defined by section 38-502.
C. Before concluding an agreement for the transfer of any intellectual property owned by the district board to an officer or employee of the district board or a community college or to an entity in which an officer or employee of the district board or a community college maintains a substantial interest, the district board or community college shall do all of the following:
1. Identify, on a case-by-case basis, individual and institutional conflicts of interest and conflicts of commitment that may arise as a result of the proposed transfer.
2. Determine whether the potential conflicts are manageable.
3. If the potential conflicts are manageable, develop a conflict management plan and enter into agreements as necessary for the appropriate management and oversight of the potential conflicts in conformance with policies of the district board and the community college.
D. The district board shall maintain appropriate policies and procedures for the implementation of this section.
E. Expenditures pursuant to this section may not be included as local revenues under the expenditure limitations established pursuant to article IX, section 21, Constitution of Arizona.