LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 8, 1997
TO: Honorable J.E. "Buster" Brown, Chair IN RE: Senate Bill No. 1586
Committee on Natural Resources By: Brown
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1586 ( Relating
to the scrap tire recycling program; providing criminal and
civil penalties; making an appropriation.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB1586-As Introduced
Implementing the provisions of the bill would result in a
net negative 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 re-authorize the Waste Tire Recycling Program
set to expire December 31, 1997 in its current form and would
rename the program as the Scrap Tire Recycling program. The
new program would be extended until December 31, 2001.
Generally,
the bill would restrict payments to program participants who
have acceptable end uses for the scrap tire and certain related
materials, increase enforcement authority of the Texas Natural
Resource Conservation Commission (TNRCC) in administering the
program, and establish and increase penalties for non-compliance.
If
implemented, provisions of the bill would: exempt collection
of fees on the sale of "good used tires"; change the payment
amount and definition of eligible program participants; allow
the TNRCC to establish fees for the program within statutory
limits; restructure the grant authorizations from the fund;
allow the TNRCC to file a lien on property which been remediated
at the Commission's expense; and, require registered program
participants to notify the Commission of bankruptcy filings
within established timeframes. The bill would also prescribe
penalty assessments for certain violations.
In addition,
the bill would rename the dedicated fund as the "Scrap Tire
Recycling Fund", eliminate dollar amount limitations for administrative
costs for both the TNRCC and the Comptroller of Public Accounts,
amend provisions relating to the use of the fund.
The bill
would take effect September 1, 1997.
Methodolgy
The fiscal impact of this note reflects operation of the new
program beginning January 1, 1998 and ending December 1, 2001.
Therefore, costs and revenues for fiscal years 1998 and 2002
are prorated accordingly. Revenue amounts included were taken
from the estimate made by the TNRCC.
The bill provides
that the TNRCC and Comptroller be allocated six percent and
two percent, respectively, of annual revenue collections.
Revenue and cost estimates for the TNRCC are reflected in the
Scrap Tire Recycling Fund while amounts available to the Comptroller
for administrative expenses are 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 Probable Revenue Probable Probable Revenue Probable Change in Number
Gain/(Loss) from Savings/(Cost) Gain/(Loss) from Savings/(Cost) of State
Waste Tire from Waste Tire General Revenue from General Employees from
Recycling Recycling Fund Revenue Fund FY 1997
Account/ Account/
GR-Dedicated GR-Dedicated
5001 5001 0001 0001
1998 $18,996,455 ($18,996,455) $387,683 ($387,683) 24.5
1998 29,000,000 (29,000,000) 591,837 (591,837) 32.5
2000 29,000,000 (29,000,000) 591,837 (591,837) 32.5
2001 29,000,000 (29,000,000) 591,837 (591,837) 32.5
2002 10,003,545 (10,003,545) 204,154 (204,154) 8.5
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: 304 Comptroller of Public Accounts
582 Natural Resources Conservation Commission
LBB Staff: JK ,BB ,MS