LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 18, 1997 TO: Honorable Steve Holzheauser, Chair IN RE: House Bill No. 3162, Committee Report 1st House, Substituted Committee on Energy Resources By: Brimer House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3162 ( Relating to the payment of a fee by commercial users to the Railroad Commission of Texas for the purchase of oil and gas data maintained in digital formats.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3162-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net impact of $0 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 allow the Railroad Commission to charge fees to digitize data, and develop, administer, enhance, disseminate, and sustain access to digital data which would be used by commercial oil and gas users. The bill would provide that from these fees, the commission would pay the costs of developing and providing the digital data. The bill would also define a commercial user. Methodolgy According to the Railroad Commission, there would be costs associated with computer hardware maintenance, software maintenance, and staff support. Computer hardware maintenance and telecommunications services are estimated at $120,000 the first year and $264,000 each year thereafter. The commission estimates that five FTEs would be required the first year, 6.5 the next, and seven the following years. The article would expire September 1, 2003. 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 Revenue Change in Number Savings/(Cost) Gain/(Loss) from of State from General General Revenue Employees from Revenue Fund Fund FY 1997 0001 0001 1998 ($352,481) $352,481 5.0 1998 (517,833) 517,833 6.5 2000 (568,509) 568,509 7.0 2001 (579,509) 579,509 7.0 2002 (489,509) 489,509 7.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: 455 Railroad Commission 304 Comptroller of Public Accounts LBB Staff: JK ,BB ,JH