LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 19, 2001
  
  
          TO:  Honorable J.E. "Buster" Brown, Chair, Senate Committee on
               Natural Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB910  by Shapiro (Relating to the regulation of
               aggregate quarries; providing for an administrative
               penalty.), Committee Report 1st House, Substituted
  
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*  No significant fiscal implication to the State is anticipated.        *
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According to the Railroad Commission's (RRC) Surface Mining and
Reclamation Division assumes a statewide estimate of 1,000 active
quarries or pits that are greater than five acres in size and deeper than
five feet.  All active pits meeting this criteria and in operation on
September 1, 2001 will require registration.  It is assumed for the first
year that 1000 pits will make application for registration at $200 per
application for a total of $200,000 new revenue to the state.  The second
year and each subsequent year, 100 new applications at $200 per
application are expected to be filed for a total of $20,000 each year.

The first year would require 1.5 FTE's ( Program Administrator and an
Administrative Technician) at a cost of approximately $90,000 a year,
benefits included.  The first year estimate also includes additional
operating expenses of $12,000 in the first year.

The second and continuing years would continue to require 1.5 FTE's.
Staff focus would be to continue implementing an effective program
including new certificate registrations, certificate transfers and
certificate amendments.  Staff resources would also be required to
investigate citizen complaints and take enforcement actions for
non-compliance.

Additionally, the RRC estimates that the implementation of the program
would require the RRC 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.  Also
required will be an application that will track actions completed for
registered operations together with financial surety information
deposited with the Commission.  According to the RRC the process will
require two months to complete.  Calculations are based on 160
hours/month x 2 months x $120 hour at a cost of $38,400.
  
Technology Impact
  
According to the Railroad Commission (RRC), the implementation of the
program would require the RRC 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.  Also required will be an application that will track actions
completed for registered operations together with financial surety
information deposited with the Commission.  According to the RRC the
process will require two months to complete.  Calculations are based on
160 hours/month x 2 months x $120 hour at a cost of $38,400.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   455   Railroad Commission of Texas
LBB Staff:         JK, CL, SK