LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 27, 1999
TO: Honorable Warren Chisum, Chair, House Committee on
Environmental Regulation
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB 3132 by Chisum (relating to the creation of the scrap
tire enforcement fund and the regulation of scrap tire
disposal), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3132, Committee Report 1st House, Substituted: positive impact *
* of $0 through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from New Savings/(Cost) from State Employees from *
* - GR Dedicated New - GR Dedicated FY 1999 *
* 2000 $4,182,000 $(4,182,000) 6.0 *
* 2001 4,317,000 (4,317,000) 6.0 *
* 2002 4,457,000 (4,457,000) 6.0 *
* 2003 4,601,000 (4,601,000) 6.0 *
* 2004 4,750,000 (4,750,000) 6.0 *
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Technology Impact
The purchase of personal computers and software would be needed for
implementing the provisions of the bill.
Fiscal Analysis
The bill would establish a scrap tire enforcement program, effective
September 1, 1999. The bill would set a scrap tire enforcement fee of 25
cents on each new tire that has a rim diameter of at least 12 inches.
The fee would not apply to tires mounted on new vehicles as original
equipment. The bill would not prohibit a person from charging a scrap
tire disposal fee to a customer purchasing a new tire at retail.
The scrap tire enforcement program would be administered by the Texas
Natural Resource Conservation Commission (TNRCC) and the Comptroller.
The bill would create a General Revenue-Dedicated Scrap Tire Enforcement
Account. The account would consist of scrap tire enforcement fees and
penalties collected under the program; interest on money in the account;
and gifts, grants, or money received by the TNRCC or the Comptroller for
the purposes of the account. The account would be used to pay for
auditing scrap tire enforcement; remediating any site where scrap tires
have been discarded illegally; and to fund reasonable and necessary
administrative costs for the TNRCC and the Comptroller. The bill would
allow the TNRCC to assess an annual fee that could not exceed $20 for
registration of permanent disposal facilities for scrap tires.
Methodology
The bill sets a scrap tire enforcement fee of 25 cents for each new tire
with a rim diameter of 12 inches or larger. Using data on the number and
type of tires sold in the state under a previous waste tire program, the
Comptroller's Office estimates total revenues to the Scrap Tire
Enforcement Account to be $4.2 million in fiscal year 2000 and $4.3
million in fiscal year 2001.
The TNRCC estimates that administration and enforcement of the scrap tire
enforcement program would cost about $348,000 and $224,000 in fiscal
years 2000 and 2001, respectively and require 4 FTEs. The Comptroller's
Office estimates that administration of the program would cost about
$131,000 in fiscal year 2000 and about $121,000 a year thereafter, and
require 2 FTEs. The TNRCC anticipates spending the revenues remaining
in the Scrap Tire Enforcement Account after administration costs are
paid, in the amount of $3.7 million and $4 million in fiscal years 2000
and 2001, respectively, for scrap tire related payments, contracts and
grants.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 582 Natural
Resource Conservation Commission
LBB Staff: JK, DE, NS