LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 10, 1997 TO: Honorable Warren Chisum, Chair IN RE: House Bill No. 3462, Committee Report 1st House, Substituted Committee on Environmental Regulation By: Chisum House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3462 ( Relating to transferring certain responsibilities of the Texas Natural Resource Conservation Commission related to certain radioactive materials to the Texas Department of Health.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3462-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net positive 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 transfer the responsibilities of licensing and regulation of source material recovery and processing, uranium by-product disposal, and long-term care of decommissioned sites from the Texas Natural Resource Conservation Commission (TNRCC) to the Texas Department of Health (TDH). The provisions of the bill require that one month after the effective date of the Act, but not later than September 1, 1997, all related duties, powers, obligations, property, and programs be transferred from the TNRCC to the TDH. In addition, all fees related to pending applications as of the transfer date would be transferred to the TDH. TDH would be prohibited from assessing the application fee for applications which were pending before the Commission at the time the duties were transferred. The bill would require the TDH to reevaluate the fees assessed under the program and ensure that they are sufficient to cover program costs. If the TDH determines that past fees were higher than program costs, the agency would be required to refund any fees newly increased in the past year to the payor as appropriate. The bill would provide that the TNRCC continue activities related to the groundwater cleanup cooperative agreement with the U.S. Department of Energy for the mill tailing site at Falls City. Methodolgy Annually, the TNRCC spends $277,786, including 6.5 FTEs, for this program out of the Radioactive Substance Fee Account, which is a dedicated account in the General Revenue Fund. This amount would be transferred to the Department of Health according to the provisions of the bill. The bill, as amended, would require TNRCC to retain $10,000 per year for groundwater cleanup at Falls City. The TDH estimates that annual program costs will be about $680,000 each year and 10 FTEs. After the transfer of funds from the TNRCC is made, the agency projects that an additional $100,000 will be needed for lab costs for uranium samples; an additional $40,000 will be necessary for one additional FTE for hearings; and, approximately $272,000 will be used to address a backlog for assessments of decommissioned sites. The fiscal analysis reflects a transfer of appropriations from TNRCC for fiscal years 1998 and 1999 to cover partial costs of the program. The remaining costs would be recovered through fees assessed and deposited to the credit of the General Revenue Fund 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 Transfer from Probable Revenue Probable Revenue Probable Change in Number Radioactive Gain/(Loss) from Gain/(Loss) from Savings/(Cost) of State Substance Fee Other - Radioactive from Radioactive Employees from Account/ Interagency Substance Fee Substance Fee FY 1997 GR-Dedicated Transfer Account/ Account/ GR-Dedicated GR-Dedicated 0340 OTHER-OTH 0340 0340 1998 ($277,786) $277,786 $0 $0 3.5 1998 (277,786) 277,786 0 0 3.5 2000 0 0 (277,786) 277,786 3.5 2001 0 0 (277,786) 277,786 3.5 2002 0 0 (277,786) 277,786 3.5 Fiscal Year Probable Revenue Probable Gain/(Loss) from Savings/(Cost) General Revenue from General Fund Revenue Fund 0001 0001 1998 $398,448 ($398,448) 1999 404,058 (404,058) 2000 681,844 (681,844) 2001 676,234 (676,234) 2002 676,234 (676,234) 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 $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: LBB Staff: JK ,BB ,MS