LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 12, 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 a program for recycling
and disposal of scrap tires.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3132, As Introduced: 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 Net 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 Scrap New - GR Dedicated FY 1999 *
* Tire Recycling Scrap Tire Recycling *
* Account Account *
* 2000 $12,545,250 $(12,545,250) 16.0 *
* 2001 17,267,000 (17,267,000) 16.0 *
* 2002 17,827,000 (17,827,000) 16.0 *
* 2003 18,403,000 (18,403,000) 16.0 *
* 2004 18,999,000 (18,999,000) 16.0 *
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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 recycling program, effective
September 1, 1999. The bill would set up a scrap tire fee of $1 on each
new tire received or, in or on a vehicle sold on or after January 1,
2000. The program would be administered by the Texas Natural Resource
Conservation Commission (TNRCC) and the Comptroller. TNRCC would be
required to adopt rules to implement the program no later than January 1,
2000. The Comptroller would be required to adopt rules to implement the
program with the ability to accept fee revenue in the fiscal quarter
beginning December 1, 1999.
The bill would create a General Revenue-Dedicated Scrap Tire Recycling
Account. The account would consist of fees and penalties collected under
the program, interest on money in the account, and gifts, grants, or
money from another source received by the TNRCC for the purposes of the
account. The account would be used to pay contracts and grants in
distressed areas that pose a threat to the environment or human health
caused by the presence of scrap tires; and to fund administrative costs
for the TNRCC and the Comptroller, up to six and two percent of the
amount that annually accrues in the account, respectively.
The bill would require the TNRCC to identify distressed areas that are in
need of assistance to alleviate the effects caused by scrap tires and
award grants and contracts to remediate, process, transport or use scrap
tires.
Methodology
The bill sets a scrap tire recycling fee of $1 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 Recycling
Account to be $12.5 million in fiscal year 2000 and $17.3 million in
fiscal year 2001.
The TNRCC estimates that administration, regulation and enforcement of
the scrap tire program would cost about $700,000 and $806,000 in fiscal
years 2000 and 2001, respectively and require 14 FTEs. The Comptroller's
Office estimates that administration of the program would cost about
$131,500 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 Account after administration costs are paid, in the
amount of $11.7 million and $16.3 million in fiscal years 2000 and 2001,
respectively, for scrap tire related payments, contracts and grants.
The administration of the program is assumed not to begin until January
1, 2000 when fee collection would begin.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 582 Natural Resource Conservation Commission, 304
Comptroller of Public Accounts
LBB Staff: JK, DE, NS