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