LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 3, 1997 TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 1520 Committee on Public Health By: Berlanga House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1520 ( Relating to the protection and use of certain products, information, and technology of the Texas Department of Health.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1520-As Introduced No significant fiscal implication to the State is anticipated. FISCAL ANALYSIS The bill adds Section 12.020 to the Health and Safety Code. This new section allows the Department of Health to obtain protection for and use intellectual property. The department may apply for and hold a patent, copyright, trademark, or other evidence of protection for intellectual property. The bill allows the department to enter into a contract with an individual or company to sell, lease, or market the department's intellectual property. Intellectual property for which the department has evidence of protection is excepted from the disclosure requirements of the open records law, Chapter 552 of the Government Code. The bill allows the department to establish a Center for Public Health Development. The center may enter into agreements with any person to fund the development of new products, technology, and scientific information. Through the center, the department may own and license rights to products, technology, or information. The department may also, through the center, have an ownership interest in business entities that engage in the development, manufacture, or marketing of products, technology, or information under a license from the department. The department may accept gifts and donations to aid the center. However, the center may not receive general revenue funds through a special item appropriation in a General Appropriations Act. Money paid to the department under this section shall be deposited to the credit of the General Revenue Fund. METHODOLOGY The bill could potentially generate revenue in the following ways: 1) through donations to the center; 2) from royalties or other compensation from contracts entered into for the development or purchase of the department's intellectual property; 3) from dividends or other compensation arising from the department's ownership interest in business entities. The department estimates that any new revenues would not be significant for the five years following passage of this bill. Some costs could be incurred by the department in establishing the center; however, these costs should not be significant in relation to the size of department's budget. No fiscal implication to units of local government is anticipated. Source: Agencies: 501 Department of Health LBB Staff: JK ,BB