1Amending the act of July 5, 2012 (P.L.1102, No.132), entitled
2"An act authorizing the State System of Higher Education and
3its employees to enter into certain economic development
4agreements; providing for approval and notice, for reports
5and for limitations; and making an inconsistent repeal"
6further providing for short title, for definitions, for
7authorization, for approval and notice and for reports.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. The title and sections 1, 3, 4, 5(a) and 6 of the
11act of July 5, 2012 (P.L.1102, No.132), known as the State
12System of Higher Education Intellectual Property Act, are
13amended to read:

14AN ACT

15Authorizing [the State System of Higher Education and its]
16State-owned universities and employees of State-owned 
17universities to enter into certain economic development
18agreements; providing for approval and notice, for reports
19and for limitations; and making an inconsistent repeal.

20Section 1. Short title.

21This act shall be known and may be cited as the [State System

1of Higher Education] State-owned University Intellectual
2Property and Services Act.

3Section 3. Definitions.

4The following words and phrases when used in this act shall
5have the meanings given to them in this section unless the
6context clearly indicates otherwise:

7"Economic development agreement." An agreement that allows a
8State-owned university to develop and market intellectual
9property owned or created by a State System of Higher Education
10employee.

11"Employee." An individual employed by a State-owned
12university.

13"Services." Any agreement between a State-owned university
14and an organization that benefits students attending the State-
15owned university.

16"State-owned university." One of the 14 institutions under
17the State System of Higher Education or any other institution
18that may be admitted to the State System of Higher Education
19subsequent to the enactment of this act in accordance with the
20provisions of the act of March 10, 1949 (P.L.30, No.14), known
21as the Public School Code of 1949.

22["System employee." An individual employed by the State
23System of Higher Education or one of its constituent
24universities.]

25Section 4. Authorization.

26(a) Economic development and service agreements.--State-
27owned universities and system employees may enter into economic
28development and service agreements that inure to the benefit of
29the State-owned universities and [system] employees, with only 
30the approval of the Council of Trustees. No approval from the
 

1State System of Higher Education is required.

2(b) Employee retained as officer or director.--Employees may
3retain a position as a result of economic development agreements
4as an officer or director of a company formed pursuant to that
5agreement.

6(c) Intellectual property products.--State-owned
7universities shall be permitted to contract for an intellectual
8property product with a company that employs an employee who has
9developed an intellectual property product.

10(d) Service agreements.--State-owned universities shall be
11permitted to contract for services with a company or
12organization that employs an employee of a State-owned
13university or for which an employee of a State-owned university
14serves as an officer or director.

15Section 5. Approval and notice.

16(a) [ Review and approval.--Agreements entered into under
17this act shall be reviewed and approved in accordance with the
18form and legality reviews of the act of October 15, 1980
19(P.L.950, No.164), known as the Commonwealth Attorneys Act.]
20(Reserved).

21* * *

22Section 6. Reports.

23[The State System of Higher Education and each] Each State-
24owned university shall monitor and report agreements entered
25into under this act on an annual basis to the Education
26Committee of the Senate and the Education Committee of the House
27of Representatives. The information shall be reported in
28compliance with any legal protections provided by copyright or
29trademark laws or other Federal or State law.

30Section 2. This act shall take effect in 60 days.