LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 27, 1995



 TO:     Honorable Ken Armbrister, Chair                   IN  RE: Senate Bill  No. 1470
         Committee on State Affairs                                      By: Turner,   Jim
         Senate
         Austin, Texas




FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1470 (Relating to intellectual property rights and publications
of the Texas Department of Transportation.) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would allow the Department of Transportation to apply
for, register, secure, hold, and protect patents, copyrights, and
trademarks for items including ideas, publications, and other
original innovations fixed in a tangible medium.  In addition,
the bill would allow the Department to enter into non-exclusive
license agreements with any third party for the receipt of fees,
royalties, or other things of monetary or nonmonetary value.

The bill would also allow the Department to recover the direct
and indirect costs of production for large quantities of
pamphlets, documents, maps, and other travel material and
authorize the free distribution of multiple copies if it
maximizes the Departments resources and promotes travel within
the state.

The bill provides that certain funds deposited to the credit of
the State Highway Fund be exempted from Sections 403.094(h) and
403.095, Government Code.  Included in this exemption are
revenues from the sale of promotional items.  The Comptroller's
current revenue estimate for the 1996-97 biennium includes
$5,000,000 for such items.  The exemption of these items from the
provisions of fund consolidation would result in a $5,000,000 
loss to General Revenue consolidated funds and a $5,000,000 gain
to the State Highway fund.  It should be noted, however, that
current provisions included in Senate Bill 2 would allocate this
revenue to the State Highway Fund.  Under the provisions of
Senate Bill 2 there would be no loss to General Revenue
Consolidated.


The fiscal implication to  the State or units of local government
cannot be determined.


Source:   Department of Transportation
          LBB Staff: JK, ML, DF