LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 3, 2001 TO: Honorable Jim Solis, Chair, House Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: HB3309 by Hochberg (Relating to the development, funding, and operation of the Southeast Texas Biotechnology Park.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3309, Committee Report 1st House, Substituted: positive impact * * of $2,941,176 through the biennium ending August 31, 2003. * * * * 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 Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 2,941,176 * * 2004 2,941,176 * * 2005 2,941,176 * * 2006 2,941,176 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * General Revenue Fund * * 0001 * * 2002 $0 * * 2003 2,941,176 * * 2004 2,941,176 * * 2005 2,941,176 * * 2006 2,941,176 * ***************************************************** Fiscal Analysis The bill would establish the Southeast Texas Biotechnology Park Coalition for the purpose of developing, funding, and operating a biotechnology research and development park in the area around the Texas Medical Center in Houston, Texas. Methodology The bill would allow the park to be developed on state owned land as well as on land acquired by the state. The bill would also require that lease revenue from the park be at market rates. It is assumed that the park would generate lease revenue of $50 million over a seventeen year period. This lease revenue would begin in the second year of the biennium and is estimated to be approximately $2.9 million per year. This analysis assumes that the lease revenue would be deposited to the General Revenue Fund. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 720 The University of Texas System LBB Staff: JK, JO, MG