LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 3, 2001
TO: Honorable Warren Chisum, Chair, House Committee on
Environmental Regulation
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3242 by Olivo (Relating to a permit to apply certain
sludge on a land application unit.), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3242, Committee Report 1st House, Substituted: positive impact *
* of $250,000 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:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $125,000 *
* 2003 125,000 *
* 2004 125,000 *
* 2005 125,000 *
* 2006 125,000 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2002 $125,000 *
* 2003 125,000 *
* 2004 125,000 *
* 2005 125,000 *
* 2006 125,000 *
*****************************************************
Fiscal Analysis
The bill would require the Texas Natural Resource Conservation Commission
(TNRCC) to obtain a permit from the commission prior to the land
application of sewer sludge. The TNRCC would be required to charge a fee
of $1,000 to $5,000 for any such permit.
Methodology
The TNRCC currently requires persons to register with the agency prior to
the land application of sewer sludge, but the agency currently is not
authorized to assess a fee. Based on 50 permit registrations currently
being accepted by the TNRCC, the bill could result in revenues ranging
from $50,000 to $250,000 per fiscal year. The estimate in the table above
assumes that the average fee would be $2,500. This fee revenue would be
deposited to the General Revenue Fund since the bill does not provide for
the deposit of the proceeds to a special account.
Since the TNRCC already processes registrations for sludge applications,
there should be no significant additional administrative cost to the
agency as a result of the bill's passage.
Local Government Impact
The TNRCC currently processes approximately five registrations from units
of local government each year. Each unit would be required to pay a fee
upon passage of the bill. The amount of the fee would depend on the
level of the fee within the range provided by the bill as set by the
TNRCC.
Source Agencies: 582 Texas Natural Resource Conservation Commission,
304 Comptroller of Public Accounts
LBB Staff: JK, CL, TL