LEGISLATIVE BUDGET BOARD 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 spaceport. 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. Methodology 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 anticipated. 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