LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable J.E. "Buster" Brown, Chair IN RE: Senate Bill No. 1355
Committee on Natural Resources By: Brown
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1355 ( Relating
to the regulation of retail stores.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB1355-As Introduced
Implementing the provisions of the bill would result in a
net positive impact of $513,718 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 partially implement Texas Performance Review
recommendation CG3 in "Disturbing the Peace: The Challenge of
Change in Texas Government."
The bill would create the
Interagency Task Force on Texas Retail Food Store Regulation
with the office of the Comptroller of Public Accounts (CPA)
designated as the lead agency. The task force would study the
regulation of retail food stores and report to the Legislature
recommendations for improving the regulation of retail food
stores. The statutory authority for the task force would expire
June 1, 1999.
The bill would amend the Agriculture Code
to conform to current practice by transferring regulatory authority
relating to weights and measures for compounding drugs in pharmacies
from the Texas Department of Agriculture (TDA) to the State
Board of Pharmacy.
TDA would no longer be responsible for
the retail inspection of eggs. The bill would also require
the Parks and Wildlife Department to initiate negotiations and
enter into a memorandum of agreement with the Department of
Health to consolidate the license and permit application process
for retail food stores that sell aquatic products.
The bill
would transfer the responsibility for enforcement and administration
of rules regulating motor fuel containing 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. The
Commissioner could adopt rules relating to the frequency of
motor fuel testing and would be required to consider the limits
of funds available from fees imposed when adopting such rules.
The Comptroller would still be responsible for collecting regulatory
fees. The bill would also increase penalties for violations
of methanol, ethanol, and automotive fuel rating posting requirements.
The bill would require that 50% of all inspections or tests
of weighing and measuring devices and automotive fuel rating
be transferred from the TDA to state licensed private inspectors
by September 1, 1999. The remaining 50% would be transferred
by September 1, 2001. All enforcement authority would remain
with the TDA.
The bill would take effect September 1, 1997,
except Sections 9-13 of the Act would only apply to a delivery,
transfer, or sale of motor fuel that occurred on or after September
1, 1999 (fiscal year 2000).
Methodolgy
The responsibilities of the Interagency Task Force on Retail
Food Store Regulation would be accomplished with existing appropriations
for all affected agencies.
According to both the TDA and
the State Board of Pharmacy, regulatory responsibility relating
to weights and measures for compounding drugs in pharmacies
has already been transferred from the department to the State
Board of Pharmacy. Therefore, no fiscal implications are anticipated.
According
to the TDA, the elimination of retail egg inspection authority
would result in savings of $256,859 per year in General Revenue
and the reduction of 4.7 FTEs.
There would be no significant
fiscal implications to develop a memorandum of agreement between
the Parks and Wildlife Department and the Department of Health
to regulate aquatic products.
Transfer of motor fuel testing
for alcohol content would be revenue-neutral for fiscal years
1998 and 1999 since no new responsibilities would be imposed.
Beginning September 1, 1999, new octane testing requirements
would be in place for the TDA. At this same time the department
would be required to privatize 50% of the fuel testing and weights
and measures inspections. According to the TDA, the implementation
of the new fuel testing program will cost $344,693 in the first
year and require 4.8 FTEs. These costs would be recovered through
fees collected by the Comptroller and set by the department.
In fiscal year 2002 according to the department, $101,062 and
two FTEs would be needed by the department for oversight of
the fuel testing program. In fiscal 2002 the transfer of all
fuel testing and weights and measures inspections would take
place.
According to the TDA, the privatizing weights and
measures testing will result in savings to the General Revenue
Fund of $490,530 and a reduction of 12.5 FTEs in fiscal year
2000. In fiscal year 2002, the savings to general revenue are
estimated to be $981,060 and the FTEs will be reduced by 25.
According to the department there will also be a loss of fee
revenue that had been collected by the department for weights
and measures inspections. The department estimates a revenue
loss of $490,530 in fiscal year 2000, and a loss of $981,060
in fiscal year 2002. According to the department, its weights
and measures program is completely self supported through the
fees that are collected. It is assumed that there would be
an increase in revenue from the licensing of private companies
to perform weights and measures inspections, but no projections
were available.
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 Probable Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from Savings/(Cost) Gain/(Loss) from of State
from General General Revenue from General General Revenue Employees from
Revenue Fund Fund Revenue Fund Fund FY 1997
0001 0001 0001 0001
1998 $256,859 $0 $0 $0 (4.7)
1998 256,859 0 0 0 (4.7)
2000 747,389 344,693 (344,693) (490,530) (12.4)
2001 747,389 252,655 (252,655) (490,530) (12.4)
2002 1,389,512 101,062 (101,062) (1,132,653) (27.7)
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 $256,859
1999 256,859
2000 256,859
2001 256,859
2002 256,859
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
551 Department of Agriculture
465 Department of Commerce
458 Alcoholic Beverage Commission
304 Comptroller of Public Accounts
802 Parks and Wildlife Department
LBB Staff: JK ,BB ,JH