LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 6, 1995
TO: Honorable Robert M. Saunders, Chair IN RE: Committee Substitute
Committee on Land and Resource for Senate
Management Bill No. 226
House of Representatives By: Cain
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 inactive pit subject to the exemption that is
determined to be a danger to the public. The bill would add a
definition of "unsafe inactive" pits subject to this subsection
and would require that the cost of constructing barriers for
these pits be paid by the commission out of its appropriations.
Based on a limited survey, the agency finds that of the
estimated 2000 exempted pits, approximately 5%, or 100 pits,
would meet the criteria in the definition and would need a
barrier constructed. The resulting cost to the Commission for
constructing an adequate guardrail barrier for the 100 pits is
estimated to be approximately $600,000. Although the bill would
result in a decrease in FTEs for the quarry and pit regulation
program, the agency estimates that the added responsibility of
constructing barriers for inactive pits would require four (4)
additional personnel. However, since information as to the
amount required to fund these FTEs has not been provided, the
cost of this provision cannot be determined.
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 to 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)
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
No fiscal implication to units of local government is
anticipated.
Source: Railroad Commission
LBB Staff: JK, KW, DF