LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 9, 1995
TO: Honorable Bill Sims, Chair IN RE: Committee Substitute
Committee on Natural Resources for Senate
Senate Bill 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.) 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 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;
eliminate certain limitation of liability provisions of the used
oil program; reduce the fee on the sale of automotive oil from
two cents per quart to one cent; establish the fee on the sale of
used oil as of January 1, 2000; and limit Texas Natural Resource
Conservation Commission (TNRCC) administrative costs from the
Used Oil Recycling Fund to six percent of the fund.
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. 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 bill would provide for the Department of Commerce to process
used oil recycling grants for various entities awarded by an
advisory committee appointed by the TNRCC during calendar year
1995. The administrative costs to the Department of Commerce to
process grants cannot be determined.
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 Loss to Used Oil Loss to Hazardous of Used Oil
Recycling Fund 146 and Solid Waste Recycling Fund 146
Remediation Fund
550
1996 $2,064,000 $1,972,000 $86,400
1997 4,206,000 1,992,000 128,216
1998 4,206,000 1,992,000 88,715
1999 4,206,000 1,992,000 88,715
2000 6,087,000 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, Department of Commerce,
Natural Resource Conservation Commission
LBB Staff: JK, JB, DF