LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2796 by Hughes (Relating to the Cancer Prevention Research Institute's fiscal responsibilities to the state of Texas.), As Introduced No significant fiscal implication to the State is anticipated. The Cancer Prevention and Research Institute of Texas is authorized $300,000,000 in General Obligation bond proceeds each fiscal year, as authorized by the Texas Constitution, Article III, Section 67. Any costs to implement the bill's provisions would be funded through that method of financing. The bill would amend the Health and Safety Code to expand the purpose of the Cancer Prevention and Research Institute of Texas (CPRIT) to include providing a reasonable return on investment for the state. The bill would direct the CPRIT Chief Executive Officer to hire a Chief Investment Officer. The bill would also amend the CPRIT grant award procedure to allow priority for proposals expected to be financially viable and to enter the market within 15 years of initial investment, and provide a complete return on initial investment within 20 years. The bill would also amend the CPRIT contract terms to require CPRIT grantees provide bi-annual reports on the anticipated timeline for a return on the state's investment.CPRIT anticipates $1,465,558 in fiscal year 2026 and $1,458,510 in fiscal year 2027 in General Obligation bond proceeds would be reallocated from the grant award strategies to the operating and administration strategies. The cost includes 4.0 additional FTEs and related expenses (1.0 Chief Investment Officer and 3.0 investment analysts) and $10,000 per month for a subscription fee to a major health industry intelligence database. Any increase to the General Revenue Fund related to the return on investment cannot be estimated at this time. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 542 Cancer Prevention and Research Institute of Texas LBB Staff: b > td > JMc, NPe, LCO, KCu
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 14, 2025
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2796 by Hughes (Relating to the Cancer Prevention Research Institute's fiscal responsibilities to the state of Texas.), As Introduced
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2796 by Hughes (Relating to the Cancer Prevention Research Institute's fiscal responsibilities to the state of Texas.), As Introduced
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2796 by Hughes (Relating to the Cancer Prevention Research Institute's fiscal responsibilities to the state of Texas.), As Introduced
SB2796 by Hughes (Relating to the Cancer Prevention Research Institute's fiscal responsibilities to the state of Texas.), As Introduced
No significant fiscal implication to the State is anticipated. The Cancer Prevention and Research Institute of Texas is authorized $300,000,000 in General Obligation bond proceeds each fiscal year, as authorized by the Texas Constitution, Article III, Section 67. Any costs to implement the bill's provisions would be funded through that method of financing.
No significant fiscal implication to the State is anticipated. The Cancer Prevention and Research Institute of Texas is authorized $300,000,000 in General Obligation bond proceeds each fiscal year, as authorized by the Texas Constitution, Article III, Section 67. Any costs to implement the bill's provisions would be funded through that method of financing.
The bill would amend the Health and Safety Code to expand the purpose of the Cancer Prevention and Research Institute of Texas (CPRIT) to include providing a reasonable return on investment for the state. The bill would direct the CPRIT Chief Executive Officer to hire a Chief Investment Officer. The bill would also amend the CPRIT grant award procedure to allow priority for proposals expected to be financially viable and to enter the market within 15 years of initial investment, and provide a complete return on initial investment within 20 years. The bill would also amend the CPRIT contract terms to require CPRIT grantees provide bi-annual reports on the anticipated timeline for a return on the state's investment.CPRIT anticipates $1,465,558 in fiscal year 2026 and $1,458,510 in fiscal year 2027 in General Obligation bond proceeds would be reallocated from the grant award strategies to the operating and administration strategies. The cost includes 4.0 additional FTEs and related expenses (1.0 Chief Investment Officer and 3.0 investment analysts) and $10,000 per month for a subscription fee to a major health industry intelligence database. Any increase to the General Revenue Fund related to the return on investment cannot be estimated at this time.
CPRIT anticipates $1,465,558 in fiscal year 2026 and $1,458,510 in fiscal year 2027 in General Obligation bond proceeds would be reallocated from the grant award strategies to the operating and administration strategies. The cost includes 4.0 additional FTEs and related expenses (1.0 Chief Investment Officer and 3.0 investment analysts) and $10,000 per month for a subscription fee to a major health industry intelligence database.
Any increase to the General Revenue Fund related to the return on investment cannot be estimated at this time.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 542 Cancer Prevention and Research Institute of Texas
542 Cancer Prevention and Research Institute of Texas
LBB Staff: b > td > JMc, NPe, LCO, KCu
JMc, NPe, LCO, KCu