LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 4, 1997
TO: Honorable Warren Chisum, Chair IN RE: House Bill No. 1131
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-As Introduced
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 for reporting information that substantially
contributes to the criminal conviction or the assessment of
fines or penalties against violators.
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 $557,000 each year (payments
to individuals);
-- an annual revenue gain of $598,000 to
the special account (10% of collected penalties); and
-- additional
costs exceeding $400,000 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 deposited 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 increase in 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 $1,048,034 8.0
1998 (598,383) 598,383 994,034 8.0
2000 (598,383) 598,383 994,034 8.0
2001 (598,383) 598,383 994,034 8.0
2002 (598,383) 598,383 994,034 8.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
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