TO: | Honorable Kip Averitt, Chair, Senate Committee on Natural Resources |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB2089 by Whitmire (Relating to protections provided by the Department of Agriculture for certain consumers; providing penalties.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | $0 |
Fiscal Year | Probable Savings/(Cost) from Appropriated Receipts 666 |
Probable Revenue Gain/(Loss) from Appropriated Receipts 666 |
Change in Number of State Employees from FY 2009 |
---|---|---|---|
2010 | ($1,041,937) | $1,041,937 | 7.0 |
2011 | ($873,993) | $873,993 | 7.0 |
2012 | ($873,993) | $873,993 | 7.0 |
2013 | ($873,993) | $873,993 | 7.0 |
2014 | ($873,993) | $873,993 | 7.0 |
Based on information provided by TDA, there are 3,500 locations that would be inspected for octane, the presence of water in tanks, contaminants and other fuel quality issues. At approximately 520 locations, or 15 percent of the total, samples would be collected for lab analysis for fuel quality compliance. Of these 520 samples, 395 would be tested for octane and water content at a cost of $300 per sample ($118,500 total) and 125 would be tested for American Society for Testing and Materials compliance at a cost of $3,000 per sample ($375,000 total).
With an average inspection taking 3 hours, it is estimated that TDA will need to hire an additional 5.0 FTEs (10,500 inspection hours/2,080 annual hours). Also, it is estimated that an additional 2.0 FTEs would be necessary to train personnel, assist with program administration, and analyze trends. These 7.0 FTEs would require $267,009 for salaries, $76,284 for benefits, $153,500 in one-time costs for equipment and capital expenditures and $52,800 in ongoing equipment costs.
TDA would need to hold a three-day one-time training for the 7.0 new FTEs and other inspectors that might need to conduct these inspections. It is estimated that this training would cost a total of $14,444 in fiscal year 2010.
Section 13.1151 of the Agriculture Code provides that TDA may charge the owner or operator of a device a fee to recover the costs of registration and inspection of a pump. The Comptroller of Public Accounts has indicated that such a fee related to a program testing fuel quality would be considered Appropriated Receipts.
Source Agencies: | 302 Office of the Attorney General, 551 Department of Agriculture
|
LBB Staff: | JOB, ZS, AH, SD
|