LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 11, 1997
TO: Honorable Warren Chisum, Chair IN RE: House Bill No. 1131, Committee Report 1st House, Substituted
Committee on Environmental Regulation By: Puente
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1131 ( Relating
to the creation by the attorney general of an environmental
hotline.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1131-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a
net negative impact of $(1,196,766) to General Revenue Related
Funds through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend Chapter 402, Subchapter B of the Government
Code and would require the attorney general to establish, publish,
and maintain a toll-free environmental hotline to receive information
on violations and suspected violations of environmental laws.
The bill would also require the attorney general to compensate
individuals 10 percent of assessed fines or civil or administrative
penalty amounts (but not more than $1,000) for reporting information
that substantially contributes to the assessment of a criminal,
civil or administrative penalty for the violation of an environmental
law.
The bill would create a special account in the General
Revenue Fund to be used to maintain the toll-free hotline, to
investigate violations, and to make payments to persons eligible
to receive compensation for reporting environmental violations.
The account would consist of no more than 10 percent of the
fines or civil or administrative penalties ordered or agreed
to by the alleged violators and collected by the state in a
fiscal year.
The bill would take effect September 1, 1997.
Methodolgy
The Office of the Attorney General estimates that any additional
costs resulting from the implementation of this bill could be
absorbed within the current staff and resources. The Comptroller
of Public Accounts does not anticipate any internal administrative
costs associated with the bill.
The Texas Natural Resource
Conservation Commission (TNRCC) estimates that implementation
of the bill would result in the following based on fiscal year
1996 activities:
-- an annual loss to the General Revenue Fund
of approximately $598,000 (10% of collected penalties);
--
an increase in General Revenue costs of $299,000 each year (payments
to individuals);
-- an annual revenue gain of $598,000 to
the special account (10% of collected penalties); and
-- additional
costs range from $269,000 to $300,000 each year due to a projected
increase in the number of complaint investigations.
This
estimate assumes a loss to the General Revenue Fund based on
10 percent of penalties being deposited to the new special account.
It also assumes that the maximum 10 percent of annual assessed
and collected fines and penalties will be reallocated to the
credit of the new account, and that costs associated with the
payments to eligible individuals and for investigations will
be paid from that account. No estimate of increased penalty
revenue is included.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Revenue Probable Change in Number
Gain/(Loss) from Gain/(Loss) from Savings/(Cost) of State
General Revenue New - GR Dedicated from New - GR Employees from
Fund Dedicated FY 1997
0001 NEW-DED NEW-DED
1998 ($598,383) $598,383 ($595,322) 4.0
1998 (598,383) 598,383 (568,322) 4.0
2000 (598,383) 598,383 (568,322) 4.0
2001 (598,383) 598,383 (568,322) 4.0
2002 (598,383) 598,383 (568,322) 4.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($598,383)
1999 (598,383)
2000 (598,383)
2001 (598,383)
2002 (598,383)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies: 302 Office of the Attorney General
582 Natural Resources Conservation Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,BB ,MS