LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 13, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 665
Committee on State Affairs By: Haywood
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB665 ( Relating
to the sale and delivery of certain motor fuel; providing criminal
and civil penalties.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB665-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of ($2,546,974) 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 responsibility for enforcement and
administration of rules for the regulation of motor fuel which
contains ethanol or methanol from the Comptroller to the Commissioner
of Agriculture. In addition, the Commissioner of Agriculture
would be responsible for regulating and monitoring motor fuel
octane levels. Motor fuel dealers in the state would be responsible
for maintaining documents relating to postings or certifications
of automotive fuel ratings. The bill would increase civil
penalties for violations. The bill would provide that fees
currently authorized to be collected by the comptroller for
testing, inspection, statement or record forms, sale of signs,
or performance of other services could be imposed only as determined
necessary by the Commissioner of Agriculture to administer the
Act. The bill would also provide that fees currently authorized
to be collected by the comptroller on motor fuel distributors,
wholesalers, or suppliers, without regard to whether the fuel
is subject to regulation under the Act, could be imposed only
as determined necessary by the Commissioner of Agriculture.
Under current law, the comptroller can collect fees in
total amounts not to exceed the lessor of the program's annual
cost or the statutory cap of $500,000 per year. The bill provides
that the fees collected could only be used by the Comptroller
in an amount not to exceed $25,000 annually, and by the Commissioner
of Agriculture for administration and enforcement of the Act.
The Commissioner of Agriculture would determine the costs necessary
to administer and enforce the provisions of the Act.
Methodolgy
The Comptroller has had certain responsibility for enforcing
and administering rules relating to motor fuels containing ethanol
and methanol since 1989. As the sale of this type of motor
fuel has been minimal, the comptroller did not incur any significant
costs to administer the program, and therefore, did not collect
authorized fees. The Department of Agriculture is currently
responsible for inspecting and regulating the calibration of
all motor fuel pumps in the state. The Department of Agriculture
estimates that implementing the provisions of the bill would
cost $2,235,987 the first year and $1,310,987 each year thereafter.
In the first year, costs would include the purchase of octane
level screening equipment estimated at $597,000, in addition
to the annual cost of 22.5 FTE's, including 21.5 inspectors,
and $425,600 for sample analysis costs.
Because the current
program has no significant costs and the new program's costs
would exceed $500,000, this office assumes that fee revenue
collected by the comptroller would increase by the maximum amount
of $500,000.
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
Savings/(Cost) Gain/(Loss) from
from General General Revenue
Revenue Fund Fund
0001 0001
1998 ($2,235,987) $500,000
1998 (1,310,987) 500,000
2000 (1,310,987) 500,000
2001 (1,310,987) 500,000
2002 (1,310,987) 500,000
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 ($1,735,987)
1999 (810,987)
2000 (810,987)
2001 (810,987)
2002 (810,987)
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: 551 Department of Agriculture
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,JH