LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 1, 1997
         
         
      TO: Honorable Carlos F. Truan, Chair            IN RE:  Senate Bill No. 994
          Committee on International Relations, Trade & Technology                              By: Harris
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB994 ( 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 SB994-As Introduced
         
No 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 ,TH