LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 24, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1191  by Ellis, Rodney (Relating to the degree-granting
               authority of The University of Texas M. D. Anderson
               Cancer Center.), As Introduced
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
The bill allows The University of Texas M.D. Anderson Cancer Center to
jointly offer courses and master's and doctoral level degree programs
with The University of Texas Health Science Center at Houston Graduate
School of Biomedical Sciences.  The ability to offer joint programs
formalizes an existing relationship between the two institutions.

Because The University of Texas M.D. Anderson Cancer Center is not
recognized by the federal government as an upper-level degree granting
institution, it is required to withhold FICA taxes from graduate student
stipends paid.  Students working with M.D. Anderson faculty receive less
net pay than their counterparts working with Health Science Center at
Houston faculty for this reason.  M.D. Anderson has been adding back the
difference for its students to match Health Science Center at Houston
stipends.

The costs of the SACS accreditation process may offset savings at M.D.
Anderson for discontinuing the process of withholding FICA taxes from
graduate student stipends if the bill were enacted.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board
LBB Staff:         JK, CT, KC