Austin, Texas
                    FISCAL NOTE, 76th Regular Session
                              April 15, 1999
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  SB1092  by Brown, J. E. "Buster" (Relating to the
               establishment of a spaceport authority; granting the
               power of eminent domain and the right to issue bonds.),
               As Introduced
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1092, As Introduced:  negative impact of $(21,000,000) through      *
*  the biennium ending August 31, 2001.                                  *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
General Revenue-Related Funds, Five-Year Net Impact:
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                        $(10,500,000)  *
          *       2001                         (10,500,000)  *
          *       2002                         (10,500,000)  *
          *       2003                         (10,500,000)  *
          *       2004                         (10,500,000)  *
All Funds, Five-Year Impact:
*Fiscal      Probable        Probable        Probable       Change in     *
* Year    Savings/(Cost)     Revenue      Savings/(Cost) Number of State  *
*          from General    Gain/(Loss)    from New - GR   Employees from  *
*          Revenue Fund   from New - GR  Dedicated Texas     FY 1999      *
*              0001      Dedicated Texas    Spaceport                     *
*                           Spaceport        Account                      *
*                            Account                                      *
*  2000     $(10,500,000)     $10,500,000   $(10,500,000)             2.0 *
*  2001      (10,500,000)      10,500,000    (10,500,000)             2.0 *
*  2002      (10,500,000)      10,500,000    (10,500,000)             2.0 *
*  2003      (10,500,000)      10,500,000    (10,500,000)             2.0 *
*  2004      (10,500,000)      10,500,000    (10,500,000)             2.0 *
Fiscal Analysis
This bill would amend the Government Code to add Chapter 2312, relating
to spaceports.  The bill would define a spacecraft to include a satellite
and a spaceport to be an area intended to launch or land a spacecraft.
A "spaceport authority" could be established by a county, or by a county
and any combination of municipalities, and it would be able to issue
revenue bonds.  A spaceport authority would be required to design,
construct, and operate a spaceport through private enterprise.  A
spaceport authority could exercise the power of eminent domain.  It would
be governed by a board of seven spaceport commissioners.

The Texas Aerospace Commission and the Texas Higher Education
Coordinating Board would be required to cooperate with and advise the
board of spaceport commissioners regarding the development of a plan for
higher education courses and degree programs to be offered at or near the

A spaceport authority would be required to immediately register with the
Comptroller.  If one had not registered before September 1, 2003, the
bill would expire on that date.

A spaceport authority's property, income, and operations would be exempt
from taxes imposed by the state or a political subdivision of the state.
In lieu of taxes, the spaceport authority would be required to make
payment to each political subdivision in an amount equal to the ad
valorem taxes that would have otherwise been paid on the land owned by
the spaceport authority.  Certain other personal property purchased by or
related to a spaceport would be exempt from property tax and from the
sales tax.

The bill would establish a new GR-Account-Texas Spaceport.  Money could
be appropriated to the new account to provide a grant to an eligible
spaceport authority.

The bill would take effect September 1, 1999.
It is estimated that $10 million would be appropriated annually to the
General Revenue-Dedicated Texas Spaceport Account to meet the demand of
funding requests and grant awards for this type of project.  This
estimate is based on current state appropriations of $19 million in
Florida and $7.7 million in California for similar projects

It is estimated the Texas Aerospace Commission would incur annual
administrative costs of $500,000 and would need two FTE's to implement
the bill.
Local Government Impact
No significant fiscal implication to units of local government is
Source Agencies:   352   Bond Review Board, 354   Texas Aerospace
                   Commission, 781   Higher Education Coordinating
                   Board, 304   Comptroller of Public Accounts
LBB Staff:         JK, SD, RT