LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 27, 1995 TO: Honorable Pete Patterson, Chair IN RE: House Bill No. 2744 Committee on Agriculture & Livestock By: Romo House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2744 (Relating to the fee paid for inspection of compost.) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Texas Agriculture Code by changing the definition of compost and requiring an inspection fee on compost if it is labeled and sold as commercial fertilizer. The inspection fee for compost would be 25 percent of the fee for other commercial fertilizers. Currently, commercial fertilizer fees are deposited into the Texas Fertilizer Control Fund which is a local institutional fund of the Texas A&M University System. The inspection fee for commercial fertilizer is 32 cents per ton. Assuming that the administrative costs of inspecting fertilizer is 32 cents per ton, and the fee for inspecting compost would be 8 cents per ton, then a deficit situation could exist between the costs for administering and inspecting the compost, and the fee revenue collected. However, because the amount of compost requiring inspection cannot be determined, the fiscal impact to the Texas Fertilizer Control Fund cannot be determined. The fiscal implication to the State cannot be determined. No fiscal implication to units of local government is anticipated. Source: Comptroller of Public Accounts, Department of Agriculture LBB Staff: JK, JH, DF