LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 28, 1995



 TO:     Honorable Warren Chisum, Chair         IN RE:  House Bill No. 3036
         Committee on Environmental Regulation          By: Chisum
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
3036 (Relating to the vehicle emissions inspection and
maintenance program.) this office has determined the following:

The bill would provide for a redesigned state-administered 
vehicle emissions inspection and maintenance program. Vehicles
that are less than four years old in the state's four
nonattainment areas would only be required to go to test and
repair facilities that use lower technology equipment. Vehicles
that are older than four years would be required to go to test-
only facilities but could be retested (if they fail) at test and
repair facilities.

The bill would allow owners of vehicles that are less than four
years old to pay a $10 mitigation fee and waive the test.
Mitigation fees would be dedicated to a vehicle scrappage bill
authorized by the bill.

The bill would require the Texas Natural Resource Conservation
Commission (TNRCC) to operate a modified, partially decentralized
vehicle emissions inspection and maintenance program. Because the
number of facilities that would be authorized to perform testing
will significantly increase in a decentralized program, there
will be the need for additional staff and associated support
expenses for licensing, inspection and oversight, and
certification of repair technicians.

The costs to the Clean Air Fund to implement the provisions of
the bill are assumed to be offset by vehicle emissions fees    




authorized by the bill. The costs of the vehicle scrappage 
program authorized by the bill are not included in this analysis
but are assumed to be equivalent and offsetting.

County tax assessors will be required to collect vehicle emission
certificates or other verifications of compliance, waivers, and
mitigation fees and submit to the Comptroller. Tax assessors may
retain 50 cents from each instrument collected. Tax assessors in
affected counties must report annually regarding their activities
under the bill.















The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



            Fiscal   Probable Cost to    Probable Gain to      Change in    
             Year   Clean Air Fund 151  Clean Air Fund 151  Number of State 
                                                             Employees from 
                                                                FY 1995     
                                                                            
          1996              $3,066,511          $3,066,511              36.0
          1997               2,823,511           2,823,511              36.0
                                                                            
          1998               2,823,511           2,823,511              36.0
                                                                            
          1999               2,823,511           2,823,511              36.0
          2000               2,823,511           2,823,511              36.0
                                                                            
                                                                            
                                                                            
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

The fiscal implication to  units of local government cannot be
determined.    




Source:   Natural Resource Conservation Commission
          LBB Staff: JK, JB, DF