LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 4, 2001
TO: Honorable Ron E. Lewis, Chair, House Committee on Energy
Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3348 by Counts (Relating to the Texas Energy Resource
Council; authorizing the imposition of an assessment on
producers of oil, gas, and condensate.), Committee
Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3348, Committee Report 1st House, Substituted: positive impact *
* of $8,826,000 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 $3,893,000 *
* 2003 4,933,000 *
* 2004 2,218,000 *
* 2005 2,122,000 *
* 2006 2,193,000 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* New General Revenue Related - *
* Energy Resources Fund *
* 2002 $3,893,000 *
* 2003 4,933,000 *
* 2004 2,218,000 *
* 2005 2,122,000 *
* 2006 2,193,000 *
*****************************************************
Fiscal Analysis
The bill would create the Texas Energy Resource Council and GR Account -
Energy Resource. The powers and duties of the council would include the
promotion of environmentally sound production methods, support of
educational job training and research activities and public education
regarding oil and gas industries.
The new account would consist of gifts, grants, funds appropriated by the
Legislature, and an assessment of 0.04 percent of the market value of
oil, gas, and condensate produced and saved in the state by the producer.
The maximum assessment imposed per producer would be $150,000. Chapters
201 and 202 of the Tax Code would apply to the administration and
collection of the assessment. The Comptroller would retain an amount of
revenue approximately equal to that necessary to administer the account.
The council would be responsible for collection of any unpaid
assessments, and the Comptroller would be responsible for reporting any
unpaid assessments to the council.
A person subject to the assessment would be authorized to file for a
refund of the previous year's assessment. The refund request must be
made no later than the third calendar month following the state fiscal
year for which the refund was requested. The refund would include
interest earned at the rate equal to average United States Treasury Bill.
The bill would limit the amount of total refunds to 60 percent of the
assessment collected during the preceding year.
This bill would take effect September 1, 2001.
Methodology
The fiscal impact was estimated using core production data that were used
to estimate severance tax revenues for the 2002-2003 Biennial Revenue
Estimate. The gain for Fiscal Year 2002 reflects a partial-year
assessment, based on the effective date of the assessment.
The bill would do one or more of the following: create or recreate a
dedicated account in the General Revenue Fund, create or recreate a
special or trust fund either with or outside of the Treasury, or create a
dedicated revenue source. Legislative policy, implemented as Government
Code 403.094, consolidated special funds (except those affected by
constitutional, federal, or other restrictions) into the General Revenue
Fund as of August 31, 1993 and eliminated all applicable statutory
revenue dedications as of August 31, 1995. Each subsequent Legislature
has reviewed bills that affect funds consolidation. The fund, account,
or revenue dedication included in this bill would be subject to funds
consolidation review by the current Legislature.
Although the bill would not make an appropriation, it would establish the
basis for an appropriation.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 455 Railroad
Commission of Texas
LBB Staff: JK, CL, SK