LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 2, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  Senate Bill No. 606, Committee Report 2nd House, as amended
          Committee on Higher Education                              By: Lucio
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB606 ( Relating 
to the establishment and operation of a regional academic health 
center by the University of Texas System.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB606-Committee Report 2nd House, as amended
         
No significant fiscal implication to the State is anticipated, 
except to the extent that funds are specifically appropriated 
for debt service.
         

         
 
Fiscal Analysis
 
The bill would authorize the University 
of Texas System Board of Regents to establish and operate a 
Regional Academic Health Center (RAHC), serving Cameron, Hidalgo, 
Starr and Willacy counties.  The RAHC would be managed by an 
undesignated University of Texas component institution.  Operating 
costs of the RAHC would be paid from operating funds of the 
component institution and from funds of any other public or 
private entity.  The RAHC would provide undergraduate clinical, 
postgraduate and residency training programs, or other levels 
of medical educational work.  The bill would authorize a public 
or private entity to provide adequate physical facilities for 
use by the RAHC, including library, auditorium, research, and 
medical education buildings.  Physical facilities may be constructed, 
maintained or operated with state funds.  The bill would require 
that a teaching hospital be furnished and operated at no cost 
or expense to the state.  
 
Methodology
 
Because the bill 
would require the RAHC to be funded with the operating budget 
and from available funds of another public or private entity, 
it is assumed that costs to the state for operations would be 
funded within current operations and funding available to other 
public or private entities.

The bill would authorize the 
use of state funds for construction, maintenance or operations 
of facilities.  Because no specific authority for issuance of 
tuition revenue bonds exists pursuant to Chapter 55 of the Texas 
Education Code, no costs for debt service is included.  However, 
to the extent funds are specifically appropriated, or tuition 
revenue bonds authorized, there could be a fiscal impact to 
the state.
 
Similar annual fiscal implications would continue 
as long as the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,LP ,CF