LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION March 27, 2017 TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB224 by Watson (Relating to the sunset review date for the Cancer Prevention and Research Institute of Texas and the time for awarding cancer research and prevention grants.), As Introduced No significant fiscal implication to the State is anticipated through fiscal year 2020. However, beginning in fiscal year 2021, there is an estimated negative impact of ($11,400,000) in General Revenue each fiscal year through fiscal year 2041 for additional debt service payments by the Texas Public Finance Authority. The bill would amend Health and Safety Code relating to the sunset review date for the Cancer Prevention and Research Institute of Texas (CPRIT) and the time for awarding cancer research and prevention grants. The bill would extend CPRIT's sunset date by two years from September 1, 2021, to September 1, 2023. The bill would also extend the period that the CPRIT oversight committee may award grants by two years from August 31, 2020, to August 31, 2022.According to CPRIT, under current statutory restrictions, there would be an estimated $146.0 million in unissued bond authority of the $3.0 billion approved by Texas Constitution, Art. III, Sec. 67. This includes $90.0 million in bond authority that CPRIT cannot award due to limits in current statute and $56.0 million in available authority from grants that have ended without expending their full award, an amount that will likely increase as additional grants end. The change in the sunset date would allow the agency to utilize all available authority. This analysis assumes all $146.0 million in bond proceeds would be issued and awarded as grants in fiscal year 2021. Additional agency administrative costs for the 2022-23 biennium are estimated to be $4.0 million in Other Funds - Bond Proceeds each fiscal year, based on current expenditures on grant compliance and administration. Beginning in fiscal year 2021, the issuance and award of $146.0 million in additional bond authority will result in additional debt service paid by Texas Public Finance Authority, estimated to average $11.4 million per year in General Revenue for 20 years.The Sunset Advisory Commission indicates that the duties and responsibilities associated with implementing the provisions of the bill could be accomplished within the agency's existing resources.The bill would take effect immediately upon receiving two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2017. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:347 Public Finance Authority, 542 Cancer Prevention and Research Institute of Texas, 116 Sunset Advisory Commission LBB Staff: UP, LBe, KCA, NV
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
March 27, 2017
TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB224 by Watson (Relating to the sunset review date for the Cancer Prevention and Research Institute of Texas and the time for awarding cancer research and prevention grants.), As Introduced
TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB224 by Watson (Relating to the sunset review date for the Cancer Prevention and Research Institute of Texas and the time for awarding cancer research and prevention grants.), As Introduced
Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB224 by Watson (Relating to the sunset review date for the Cancer Prevention and Research Institute of Texas and the time for awarding cancer research and prevention grants.), As Introduced
SB224 by Watson (Relating to the sunset review date for the Cancer Prevention and Research Institute of Texas and the time for awarding cancer research and prevention grants.), As Introduced
No significant fiscal implication to the State is anticipated through fiscal year 2020. However, beginning in fiscal year 2021, there is an estimated negative impact of ($11,400,000) in General Revenue each fiscal year through fiscal year 2041 for additional debt service payments by the Texas Public Finance Authority.
No significant fiscal implication to the State is anticipated through fiscal year 2020. However, beginning in fiscal year 2021, there is an estimated negative impact of ($11,400,000) in General Revenue each fiscal year through fiscal year 2041 for additional debt service payments by the Texas Public Finance Authority.
The bill would amend Health and Safety Code relating to the sunset review date for the Cancer Prevention and Research Institute of Texas (CPRIT) and the time for awarding cancer research and prevention grants. The bill would extend CPRIT's sunset date by two years from September 1, 2021, to September 1, 2023. The bill would also extend the period that the CPRIT oversight committee may award grants by two years from August 31, 2020, to August 31, 2022.According to CPRIT, under current statutory restrictions, there would be an estimated $146.0 million in unissued bond authority of the $3.0 billion approved by Texas Constitution, Art. III, Sec. 67. This includes $90.0 million in bond authority that CPRIT cannot award due to limits in current statute and $56.0 million in available authority from grants that have ended without expending their full award, an amount that will likely increase as additional grants end. The change in the sunset date would allow the agency to utilize all available authority. This analysis assumes all $146.0 million in bond proceeds would be issued and awarded as grants in fiscal year 2021. Additional agency administrative costs for the 2022-23 biennium are estimated to be $4.0 million in Other Funds - Bond Proceeds each fiscal year, based on current expenditures on grant compliance and administration. Beginning in fiscal year 2021, the issuance and award of $146.0 million in additional bond authority will result in additional debt service paid by Texas Public Finance Authority, estimated to average $11.4 million per year in General Revenue for 20 years.The Sunset Advisory Commission indicates that the duties and responsibilities associated with implementing the provisions of the bill could be accomplished within the agency's existing resources.The bill would take effect immediately upon receiving two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2017.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 347 Public Finance Authority, 542 Cancer Prevention and Research Institute of Texas, 116 Sunset Advisory Commission
347 Public Finance Authority, 542 Cancer Prevention and Research Institute of Texas, 116 Sunset Advisory Commission
LBB Staff: UP, LBe, KCA, NV
UP, LBe, KCA, NV