LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 4, 1995
TO: Honorable Eddie Lucio, Chair IN RE: Senate Bill No. 372
Subcommittee on Agriculture By: Armbrister
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
372 (Relating to the continuation and functions of the Department
of Agriculture and certain associated entities, including the
Texas Agricultural Finance Authority, The Agriculture Resources
Protection Authority, the State Seed and Plant Board, and the
Produce Recovery Fund Board, and generally to matters regarding
agriculture in this state; providing penalties.) 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 continue the Texas Department of Agriculture and
make several changes to the Agriculture Code. Some of the
significant changes include restructuring and refocusing the
Agriculture Resources Protection Authority, transferring the
authority to oversee all agriculture finance programs to the
Texas Agricultural Finance Authority, requiring the Department to
recover 100 percent of the costs of administering most regulatory
programs, transferring administrative hearings to the State
Office of Administrative Hearings, and authorizing the
privatization of weighing and measuring device inspections.
The amount set forth for the administration of this agency in the
General Appropriation Bill, as introduced, (FY 96 = $22,552,094;
FY 97 = $22,552,094) would be contingent upon passage of S.B.
372, or similar legislation. The appropriations would be
financed from the General Revenue Fund, federal funds, Texas
Agricultural Fund No. 683, Aquaculture Fund No. 678, and other
funds, and would provide for approximately 524 employees.
The bill would increase the number of members on the Agriculture
Resources Protection Authority by six members with an estimated
cost of $4,608 per year.
The bill would require the Department to recover 100 percent of
most regulatory program costs. The provision removes all
regulatory program fee limits set in statute and requires the
Department to collect fees sufficient to recover costs. This
provision applies only to regulatory programs. The Department is
authorized to exempt programs from full cost recovery if
increased fees are contrary to program goals. This provision has
an estimated net revenue gain to the state of $2,927,006 in the
first year and $4,390,510 per year thereafter.
The bill would also transfer administrative hearings from the
Department to State Office of Administrative Hearings (SOAH).
This provision is not expected to result in any overall fiscal
impact to the state. TDA is anticipated to enter into
interagency contracts with SOAH to conduct administrative
procedure hearings. The amounts of the interagency contracts
that accomplish the transfer have not been determined. The
reduction in hearings personnel at TDA would be offset by the
increase in personnel at SOAH.
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 Out Probable Revenue Change in
Year of General Gain to General Number of State
Revenue Fund 001 Revenue Fund 001 Employees from
FY 1995
1996 $4,608 $2,927,006 .0
1997 4,608 4,390,510 .0
1998 4,608 4,390,510 .0
1999 4,608 4,390,510 .0
2000 4,608 4,390,510 .0
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: Sunset Advisory Commission, Comptroller of Public
Accounts, Department of Agriculture
LBB Staff: JK, JH, DF