LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 28, 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.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3309, As Introduced: negative impact of $(17,058,824) 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 $(20,000,000) *
* 2003 2,941,176 *
* 2004 2,941,176 *
* 2005 2,941,176 *
* 2006 2,941,176 *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2002 $(20,000,000) $0 *
* 2003 0 2,941,176 *
* 2004 0 2,941,176 *
* 2005 0 2,941,176 *
* 2006 0 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 land acquired by the state. The bill would also allow state funds to
be used to develop the park infrastructure, including roads, drainage
improvements, utilities, and landscaping. These costs are estimated to
be in the first year of the biennium.
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. It is also assumed 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: 717 Texas Southern University, 783 University of
Houston System Administration, 305 General Land
Office, 480 Department of Economic Development,
720 The University of Texas System, 304
Comptroller of Public Accounts
LBB Staff: JK, JO, ER