LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 24, 1997
         
         
      TO: Honorable J.E. "Buster" Brown, Chair            IN RE:  Senate Bill No. 1857, 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 SB1857 ( Relating 
to transferring certain responsibilities of the Texas Natural 
Resource Conservation Commission related to certain radioactive 
materials to the Texas Department of Health.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1857-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.
         
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 responsibilities for licensing and 
regulation of source material recovery and processing, uranium 
by-product disposal, and long-term care of decommissioned sites 
from the Texas Natural Resource Conservation Commission (TNRCC) 
to the Texas Department of Health (TDH). 

The provisions 
of the bill require that 30 days after the effective date of 
the Act, but not later than September 1, 1997, all related duties, 
powers, obligations, property, and programs be transferred from 
the TNRCC to the TDH.  All fees related to pending applications 
as of the transfer date would be transferred to the TDH.  TDH 
 would be prohibited from assessing a fee for applications which 
were pending before the Commission at the time the duties are 
transferred.  

The bill would require the TDH to reevaluate 
the fees assessed under the program to ensure that they are 
sufficient to cover program costs.  If the TDH determines that 
past fees were higher than program costs, the agency would be 
required to refund any fees newly-increased in the past year 
to the payor as appropriate. 
 
Methodolgy
 
Annually, the TNRCC spends $287,786, including 6.5 FTEs, for 
this program out of a General Revenue Dedicated Account (the 
Radioactive Substance Fee Account #0340).  This amount would 
be transferred to the Department of Health under the provisions 
of the bill.  

The TDH estimates that annual program costs 
would be about $700,000 and require 10 FTEs.  TDH  projects 
that, after the fund transfer is completed, the agency will 
require:  an additional $100,000 for lab costs for uranium samples; 
an additional $40,000 and one FTE for hearings; and, $272,000 
and 2.5 FTEs to address a backlog for assessments of decommissioned 
sites.  

The fiscal analysis reflects a transfer of appropriations 
from TNRCC for fiscal years 1998 and 1999 to cover partial costs 
of the program.  The remaining costs would be recovered through 
fees assessed and 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 Transfer from      Probable Revenue   Probable Revenue   Probable           
            Radioactive        Gain/(Loss) from   Gain/(Loss) from   Savings/(Cost)                       
            Substance Fee      Other -            Radioactive        from Radioactive                     
            Account/           Interagency        Substance Fee      Substance Fee                        
            GR-Dedicated       Transfer           Account/           Account/                             
                                                  GR-Dedicated       GR-Dedicated                         
            0340               OTHER-OTH          0340               0340                                  
       1998        ($287,786)          $287,786                $0                $0                  
       1998         (287,786)           287,786                 0                 0                  
       2000                 0                 0         (287,786)           287,786                  
       2001                 0                 0         (287,786)           287,786                  
       2002                 0                 0         (287,786)           287,786                  
 
 
Fiscal Year Probable           Probable Revenue   Change in Number   
            Savings/(Cost)     Gain/(Loss) from   of State                                                
            from General       General Revenue    Employees from                                          
            Revenue Fund       Fund               FY 1997                                                 
            0001               0001                                                                        
       1998        ($388,448)          $338,448               3.5                                    
       1999         (394,058)           394,058               3.5                                    
       2000         (681,844)           681,844               3.5                                    
       2001         (676,234)           676,234               3.5                                    
       2002         (676,234)           676,234               3.5                                    
 
         Net Impact on General Revenue Related Funds:
 

 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998            ($50,000)
               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:   501   Department of Health
                                         582   Natural Resources Conservation Commission
                                         
                      LBB Staff:   JK ,BB ,MS