LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 31, 1997
         
         
      TO: Honorable Warren Chisum, Chair            IN RE:  House Bill No. 1144, Committee Report 1st House, Substituted
          Committee on Environmental Regulation                              By: Turner, Bob
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1144 ( Relating 
to the consolidation of herbicide, pesticide, and agricultural 
workplace chemical laws under the jurisdiction of the Department 
of Agriculture.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1144-Committee Report 1st House, Substituted
         

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:
 
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             $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