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