LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 17, 1997
TO: Honorable J.E. "Buster" Brown, Chair IN RE: Senate Bill No. 1586, Committee Report 1st House, Substituted
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-Committee Report 1st House, Substituted
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.
Appropriations:
The bill would appropriate the following amounts:
Fiscal Year Appropriation out
of Waste Tire
Recycling
Account/
GR-Dedicated
5001
1998 $19,443,451
1999 0
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 establish fees for
the program, exempt "good used tires" from fees, and change
the payment amount and definition of eligible program participants.
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" and amend provisions
relating to the use of the fund. It would eliminate dollar
amount limitations for administrative costs for both the TNRCC
and the Comptroller of Public Accounts, however the percentage
of fee receipts available to TNRCC for administration of the
program would increase from six percent of annual appropriations
to eight percent of annual collections.
The bill would appropriate
any unexpended, unencumbered and unappropriated balances in
the fund as of September 1, 1997. The amounts, estimated by
the TNRCC to be $19,443,451, would be used to make payments
to scrap tire end users for shredded tire pieces or whole scrap
tires from certain sites included in an inventory taken by the
TNRCC on or after September 1, 1997.
The bill would take
effect September 1, 1997.
Methodolgy
The bill provides that the TNRCC and Comptroller be allocated
eight 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 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.
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 (29,000,000) 204,154 (204,154) 32.5
Fiscal Year Probable
Savings/(Cost)
from Waste Tire
Recycling
Account/
GR-Dedicated
5001
1998
1999 0
2000 0
2001 0
2002 0
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:
LBB Staff: JK ,BB ,MS