LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 26, 1995 TO: Honorable Robert M. Saunders, Chair IN RE: Senate BillNo. 226, Committee on Land and Resource as engrossed Management By: Cain House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 226 (Relating to exempting certain property owners from certain requirements relating to abandoned or inactive pits.) this office has determined the following: The bill would add Section 133.055, Natural Resources Code, to establish an exemption to the requirement that persons responsible for an inactive or abandoned quarry or pit construct a barrier and obtain a safety certificate. The section would exempt persons from the requirements if they became owners of an existing pit prior to August 26, 1991, the pit was inactive when purchased or acquired, has not been active since, and was not created by that person. The provisions of the bill would result in a revenue loss to the General Revenue Fund-Consolidated, Quarries and Pits Receipts, No. 043 . The number of regulated quarries and pits would be significantly reduced, since inactive/abandoned pits purchased or otherwise obtained prior to August 26, 1991, would be exempted from safety certification. Under the bill, the agency would deal primarily with transfers of active pits and any new pits that might apply for certification. As a result of reduced fee revenue, the number of FTEs involved in regulating abandoned quarries and pits would be reduced from 1.01 to .01 in FYs 1996 and 1997. The bill as amended would add a subsection authorizing the Railroad Commission to require the construction of a barrier for an abandoned or active pit subject to the exemption that is determined to be a danger to the public. The cost for the barrier would be paid by the commission out of its appropriations. Although the cost of this provision cannot be estimated exactly, the agency indicates that if only 25% of the estimated 2000 exempted pits were deemed dangerous and required barriers, the resulting cost to the Commission could be an estimated $1,000,000. 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 Revenue Probable Savings Change in Year Loss from GR from GR Number of State Consolidated - Consolidated - Employees from Texas Aggregate Texas Aggregate FY 1995 Quarry 043 Quarry 043 1996 $39,000 $39,000 (1.0) 1997 39,000 39,000 (1.0) 1998 19,500 19,500 (.5) 1999 9,500 9,500 (.2) 2000 4,500 4,500 (.1) No fiscal implication to units of local government is anticipated. Source: Railroad Commission LBB Staff: JK, KW, DF