LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 16, 2001
TO: Honorable Gary Walker, Chair, House Committee on Land &
Resource Management
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2538 by Walker (Relating to the regulation of
aggregate quarries; providing for an administrative
penalty.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2538, As Introduced: negative impact of $(340,484) through the *
* biennium ending August 31, 2003. *
* *
* 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(197,500) *
* 2003 (142,984) *
* 2004 (112,984) *
* 2005 (112,984) *
* 2006 (112,984) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(247,500) $50,000 3.0 *
* 2003 (282,984) 140,000 4.0 *
* 2004 (252,984) 140,000 4.0 *
* 2005 (252,984) 140,000 4.0 *
* 2006 (252,984) 140,000 4.0 *
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Technology Impact
According to the Railroad Commission the Commission would be required to
develop and implement a software application that maintains a list of
certificate of registrations issued together with all pertinent data
fields required in the application form. The Commission stated that it
would also require an application that tracks actions completed for
registered operations together with financial surety information
deposited with the Commission. System development will include
requirement analysis, data analysis, database development, system
analysis and design, programming, testing, and documentation. The
Commission estimates that this will take three months to complete.
Calculations are based on 160 hours/month x 3 months x $120 hour.
Fiscal Analysis
The bill would establish a program that requires quarry operations on
lands of five acres or more and deeper than five feet, from which
aggregates are produced, to obtain a registration certificate ($200
application fee) from the Railroad Commission. The certificate is
required to allow mining and is good for one year and is renewable ($500
fee) and transferable. The Commission would be required to inspect quarry
operations to determine whether the operation is properly reclaiming the
land affected.
A certificate of registration requires that a reclamation bond be filed
with the Railroad Commission of Texas in the amount of $1,000 for each
acre of land to be disturbed. In lieu of filing a bond, an operator may
use alternate forms of financial security, including cash deposits,
government securities, a certificate of deposit or an irrevocable letter
of credit on terms prescribed by the Commission. The Commission is
required to impose a $5,000 administrative penalty on an operator who
violates the law or a Commission rule. Each day a violation continues
is considered a separate violation. Issuance of a violation includes
informing the operator of the right to a hearing. The Attorney General
may sue to collect the penalty. Penalty moneys are deposited into the
state treasury to the credit of the Texas Aggregate Quarry Reclamation
Account.
Methodology
The Railroad Commission assumes a statewide estimate of 2,500 active
quarries or pits that are greater than five acres in size and deeper than
five feet. All active pits in operation on September 1, 2001 will be
grandfathered from registration requirements unless they expand the pit
after September 1, 2001. The Railroad Commission estimates 250 initial
applications (new pit applications and applications to expand a pit)
assumed for the first year at $200 per application for a total of $50,000
new revenue to the state. The second year, 200 new applications at $200
per application are expected to be filed for a total of $40,000 each
year. The proposed law also provides for a $500 annual certificate
renewal fee. It is estimated that 200 renewal applications will be filed
the second year and thereafter for a total of $100,000 of new revenue.
An estimated 3 FTEs primarily dedicated to preparing the operational
requirements of this new program would be required in the first year at
approximately $94,000 a year for salaries (Program Administrator @
$40,000/year, Inspector III @ $30,000/year and Administrative Technician
@$24,000/year) plus benefits of approximately $26,500 for the 3 FTEs.
The first year estimate also includes purchasing equipment needed to
become operational estimated by the agency to be approximately $70,000 in
the first year (One Vehicle, one GPS Unit, 3 computers, furniture) and
$30,000 in the second year for an additional vehicle and GPS Unit.
Additional costs include a $57,000 computer programming support in the
first year.
An increase of 1 FTE for an additional inspector is projected for the
following years at a cost of $30,000 per year plus $8,484 in benefits.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 455 Railroad Commission of Texas, 304 Comptroller
of Public Accounts
LBB Staff: JK, CL, SK