LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 1, 1997
         
         
      TO: Honorable Warren Chisum, Chair            IN RE:  House Bill No. 3462
          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-As Introduced
         

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 transfer the responsibilities for 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.  All fees related to pending applications 
as of the transfer date would be transferred to the TDH.  TNRCC 
would be prohibited from assessing the application fee in the 
future for the same applications.

The bill would require 
the TDH to reevaluate the fees assessed under the program to 
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. 
 
Methodolgy
 
Annually, the TNRCC spends $287,786, including 6.5 FTEs, for 
this program out of a General Revenue Dedicated Account (the 
Radioactive Substance Fee Account #0340).  This amount would 
be transferred to the Department of Health under the provisions 
of the bill.  

The TDH estimates that annual program costs 
would be about $700,000 each year and require 10 FTEs.  TDH 
 projects that, after the fund transfer is completed, the agency 
will require:  an additional $100,000 for lab costs for uranium 
samples; an additional $40,000 and one FTE for hearings; and, 
$272,000 and 2.5 FTEs 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           
            Radioactive        Gain/(Loss) from   Gain/(Loss) from   Savings/(Cost)                       
            Substance Fee      Other -            Radioactive        from Radioactive                     
            Account/           Interagency        Substance Fee      Substance Fee                        
            GR-Dedicated       Transfer           Account/           Account/                             
                                                  GR-Dedicated       GR-Dedicated                         
            0340               OTHER-OTH          0340               0340                                  
       1998        ($287,786)          $287,786                $0                $0                  
       1998         (287,786)           287,786                 0                 0                  
       2000                 0                 0         (287,786)           287,786                  
       2001                 0                 0         (287,786)           287,786                  
       2002                 0                 0         (287,786)           287,786                  
 
 
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        ($439,106)          $439,106               3.5                                    
       1999         (394,058)           394,058               3.5                                    
       2000         (681,844)           681,844               3.5                                    
       2001         (676,234)           676,234               3.5                                    
       2002         (676,234)           676,234               3.5                                    
 
         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                   $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:   501   Department of Health
                                         582   Natural Resources Conservation Commission
                                         
                      LBB Staff:   JK ,BB ,MS