LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 15, 1997
TO: Honorable J.E. "Buster" Brown, Chair IN RE: House Bill No. 1144, As Engrossed
Committee on Natural Resources By: Turner,Bob
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1144 ( Relating
to the consolidation of herbicide and pesticide laws under the
jurisdiction of the Department of Agriculture.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1144-As Engrossed
Implementing the provisions of the bill would result in a
net positive impact of $476,549 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 change requirements for pesticide dealer licenses.
Licenses would be renewed every two years instead of annually.
The bill would require previously exempt pesticide applicators
who work for noncommercial governmental agencies to pay a licensing
fee. In addition, the Agriculture Resources Protection Authority
(ARPA), which coordinates policies and programs for pesticide
regulation and management among state agencies, would meet annually
instead of quarterly.
Methodolgy
There would be a one time cost to the Department of Agriculture
of $3,000 to reprogram the automated licensing system. There
would be a gain of $80,000 to General Revenue in the first year
of the new licensing program. In the first year, half of the
licensees would pay the regular annual fee and the other half
would pay double that amount for a two year license. Due to
license staggering, there would be no revenue gains in the following
years. A reduction in the mailing and processing of license
renewal notices would produce savings of $1,768 per year.
The
bill's provisions requiring previously exempt noncommercial
governmental agency employees to pay licensing fees would result
in a revenue gain to General Revenue of $200,000 per year, based
on an estimate of 2,000 applicable licensees. The Department
of Agriculture also estimates that the cost to General Revenue
would be $6,811 in fiscal year 1998 and $5,576 in fiscal years
1999 and beyond. The Department of Health estimates that the
cost to implement a new fee program would require 4 new FTEs
and cost $108,015 in fiscal year 1998 and $149,046 in fiscal
year 1999 and beyond. These costs would be offset by the license
fee; therefore, the agency estimates a gain to General Revenue
of the same amounts.
The bill's provisions to change ARPA
meetings from quarterly to annually would result in a savings
in travel costs of $4,200 per year.
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 Probable Probable Revenue Change in Number
Savings/(Cost) Savings/(Cost) Gain/(Loss) from of State
from General from General General Revenue Employees from
Revenue Fund Revenue Fund Fund FY 1997
0001 0001 0001
1998 ($117,826) $5,968 $388,015 4.0
1998 (154,622) 5,968 349,046 4.0
2000 (154,622) 5,968 349,046 4.0
2001 (154,622) 5,968 349,046 4.0
2002 (154,622) 5,968 349,046 4.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $276,157
1999 200,392
2000 200,392
2001 200,392
2002 200,392
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The Department of Health estimates that 85 percent of its noncommercial
pesticide applicators are governmental entities. Therefore,
the fiscal impacts to local governments would be $49,375 in
fiscal year 1998 and $63,750 each year thereafter.
Source: Agencies: 501 Department of Health
551 Department of Agriculture
LBB Staff: JK ,BB ,DM