LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 24, 1997 TO: Honorable J.E. "Buster" Brown, Chair IN RE: Senate Bill No. 632 Committee on Natural Resources By: Brown Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB632 ( Relating to payment of a nonrefundable annual fee in lieu of a bond or other form of financial security required of a person applying for or acting under a Railroad Commission permit to store, handle,) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB632-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 amend the Natural Resources Code to allow payment of a nonrefundable annual fee in lieu of a bond when applying for or acting under a Railroad Commission permit to store, handle, treat, reclaim, or dispose of oil and gas waste. Fees would be deposited in the Oil Field Cleanup Fund (145). It is assumed that most facilities would opt for the fee instead of bonds, due to reduced costs, and that the Railroad Commission would absorb administrative costs related to collecting fee revenue. This would produce a savings to the Oil Field Cleanup Account (145), but those savings would be insignificant. No fiscal implication to units of local government is anticipated. Source: Agencies: 455 Railroad Commission LBB Staff: JK ,BB ,JH