HBA-JLV C.S.H.B. 3309 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3309
By: Hochberg
Economic Development
4/6/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas is recognized as a leading technology state, and the life science
industry has become an increasingly important contributor to the new Texas
economy.  Currently, Texas exports valuable biotechnologies to other states
that then profit from their commercialization.  Of the Texas institutions
that provide life science research, several are centered in Houston's Texas
Medical Center-University Corridor (TMC-University Corridor).  Many believe
that Texas will be able to attract and retain more entrepreneurial talent,
leading scientists, and established biotechnology enterprises with the
creation of a biotechnology park.  C.S.H.B. 3309 creates the Southeast
Texas Biotechnology Park in the TMC-University Corridor in Houston. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 3309 amends the Government Code to establish the Southeast Texas
Biotechnology Park Coalition (coalition).  The bill provides that the
coalition is composed of public and private health-related institutions and
other private nonprofit and governmental institutions, and is established
for the purpose of developing, funding, and operating a biotechnology
research and development park to be known as the Southeast Texas
Biotechnology Park (park).  The bill requires the park to be operated for
the purposes of: 

_furthering the mission of the coalition members;

_economic development of the state, including the production of net revenue
to the state and coalition members, from the commercialization of
biotechnology research; 
            
 _recruiting and retaining leading scientists and established biotechnology
enterprises; and 

_supporting the growth and development of new biotechnology.

The bill requires the park to be located in the area of Houston, known as
the Texas Medical Center.  The bill authorizes the membership of the
coalition to include any interested governmental or private nonprofit
institution.  The bill authorizes the coalition to establish a nonprofit
corporation to develop and operate the park.  The bill provides that the
park may be developed on land owned by the State of Texas and made
available for that purpose, as well as on land acquired by the state, the
nonprofit corporation, or a member institution.  The bill requires the park
to be developed as a public-private partnership in which both public
institutions and private entities contribute to the development, funding,
and operation of the park.  The bill provides that leases producing revenue
to state institutions participating in the development of the park shall be
at market rates. 


 EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3309 modifies the original to remove provisions authorizing the
state to appropriate funds for purposes of developing the infrastructure of
the park.  The substitute also removes provisions providing that funds
appropriated to a state agency for that purpose may be identified as a
trusteed program and are required to be accounted for separately from other
appropriations to the agency.