LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 17, 1995
TO: Honorable Warren Chisum, Chair IN RE: Committee Substitute
Committee on Environmental Regulation forSenate Bill
House of Representatives No. 1683
Austin, Texas By: Nixon
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
1683 (Relating to the collection, management, and recycling of
used oil and used oil filters; providing penalties.) this office
has determined the following:
The bill would amend sections of Chapter 371 of he Health and
Safety Code concerning used oil collection, management and
recycling.
The bill would provide for necessary changes to ensure that the
state's used oil recycling program is consistent with the federal
program for used oil and oil filter management. These changes
would authorize grants to both public and private entities to
encourage recycling of used oil; provide new management standards
and disposal options for used oil filters; exempt certain
registered do-it yourselfers and used oil collection facilities
from the used oil fee; require registration of used oil
distributors by the State Comptroller; create an advisory
committee for the used oil grant program; and reduce the fee on
the sale of automotive oil from two cents per quart to one cent
as of September 1, 1997.
The reduction in the Used Oil Recycling fee rate as provided for
by the bill would reduce revenues to the dedicated Used Oil
Recycling Fund Account in the General Revenue Fund by up to 50
percent annually beginning in fiscal year 1998. The Used Oil
Recycling Fund would, however, receive a revenue gain from the 25
percent of sales fees that are currently transferred to the
dedicated Hazardous and Solid Waste Remediation Fee Fund Account
in the General Revenue Fund. These fees would be set aside for
environmental restoration.
The fiscal impact of exempting certain facilities from paying the
Used Oil Recycling fee cannot be determined.
The bill would require the State Comptroller to assume new
administrative and enforcement responsibilities. Increased
administrative costs to the State Comptroller are estimated to
range between $86,000 and $128,000 annually and would include
three new full-time-equivalent positions.
The reduction in the Used Oil Recycling fee rate as provided for
by the bill would reduce the amount of money available to local
units of governments for the construction and operation of used
oil collection centers.
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 Revenue Probable Cost Out
Year Gain/(Loss) Loss Loss to Hazardous of Used Oil
to Used Oil and Solid Waste Recycling Fund 146
Recycling Fund 146 Remediation Fund
550
1996 $1,960,000 $1,972,000 $86,400
1997 1,977,000 1,992,000 128,216
1998 (1,389,000) 1,992,000 88,715
1999 (2,223,000) 1,992,000 88,715
2000 (2,223,000) 1,992,000 89,243
Fiscal Change in
Year Number of State
Employees from
FY 1995
1996 3.0
1997 3.0
1998 3.0
1999 3.0
2000 3.0
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: Comptroller of Public Accounts, Natural Resource
Conservation Commission
LBB Staff: JK, JB, DF