LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 18, 1997
TO: Honorable Warren Chisum, Chair IN RE: House Bill No. 1759
Committee on Environmental Regulation By: Hirschi
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1759 ( Relating
to the pesticide use and application program.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB1759-As Introduced
Implementing the provisions of the bill would result in a
net positive impact of $923,824 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 provisions relating to the use of waste
tire recycling fees and would allow a portion of the fees ($50,000)
to be appropriated to the Texas Department of Health (TDH) for
use in administering its pesticide use and application program.
The bill would amend provisions relating to who must apply
for an original or renewal noncommercial pesticide applicator
license. Current law exempts noncommercial pesticide applicators
employed by governmental entities from paying license and renewal
fees. This bill would remove that exemption and allow regulatory
agencies to set fees in amounts necessary to defray the administrative
costs for pesticide applicator certification programs.
Methodolgy
The Texas Department of Agriculture (TDA) currently licenses
most noncommercial pesticide applicators. The department estimates
that under the bill an additional 3,000 noncommercial applicators
who presently apply general use pesticides would need to obtain
licenses. In addition, 2,000 noncommercial applicators, who
are currently exempt from license fees, would become subject
to them. TDA estimates that new licensees would generate $500,000
per year in additional revenue for the General Revenue Fund.
Costs to the department were estimated to be $15,175 the first
year and $13,940 each year thereafter.
TDA also estimates
that many of the new licensees could be state employees, but
the bill is not clear as to whether the employees or their agency
would be responsible for payment of fees. This estimate assumes
no additional cost to state agencies.
The Health Department
would be authorized to license and examine noncommercial pesticide
applicators, particularly those involved with mosquito control.
TDH estimates that for the first year there would be approximately
500 examinations administered and about 264 license renewals.
At $50 per exam fee and $125 per license fee, proceeds to the
General Revenue Fund are estimated to be $58,000. Costs to
administer the program in the first year are estimated to be
$108,000. In subsequent years, revenue from exam and license
fees is estimated to be $99,050 and costs are estimated to be
$149,046.
The Health Department assumes that additional
revenue to fund the program will be appropriated from waste
tire recycling receipts. This estimate assumes that any appropriation
to TDH from these receipts would not affect funding for Texas
Natural Resource Conservation Commission programs.
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 Waste Tire General Revenue Employees from
Revenue Fund Recycling Fund FY 1997
Account/
GR-Dedicated
0001 5001 0001
1998 ($73,730) ($50,000) $558,000 4.5
1998 (112,986) (50,000) 599,046 4.5
2000 (112,986) (50,000) 599,046 4.5
2001 (112,986) (50,000) 599,046 4.5
2002 (112,986) (50,000) 599,046 4.5
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 $484,270
1999 486,060
2000 486,060
2001 486,060
2002 486,060
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The Health Department estimates that 85% of the noncommercial
pesticide applicator licensees under its jurisdiction will be
employees of local governments. Should local governments choose
to pay license, exam, and/or renewal fees, the estimated fiscal
impact to local governments would be $49,375 in fiscal year
1998, and $63,750 each year thereafter.
Source: Agencies: 551 Department of Agriculture
501 Department of Health
582 Natural Resources Conservation Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,BB ,JH