LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 20, 2009 TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB821 by Leibowitz (Relating to the sale, recovery, and recycling of certain television equipment; providing administrative penalties.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB821, As Engrossed: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 20, 2009 TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB821 by Leibowitz (Relating to the sale, recovery, and recycling of certain television equipment; providing administrative penalties.), As Engrossed TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB821 by Leibowitz (Relating to the sale, recovery, and recycling of certain television equipment; providing administrative penalties.), As Engrossed Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB821 by Leibowitz (Relating to the sale, recovery, and recycling of certain television equipment; providing administrative penalties.), As Engrossed HB821 by Leibowitz (Relating to the sale, recovery, and recycling of certain television equipment; providing administrative penalties.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB821, As Engrossed: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for HB821, As Engrossed: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 $0 $0 2011 $127,500 ($127,500) 2012 $127,500 ($127,500) 2013 $127,500 ($127,500) 2014 $127,500 ($127,500) Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGeneral Revenue Fund1 2010 $0 $0 2011 $127,500 ($127,500) 2012 $127,500 ($127,500) 2013 $127,500 ($127,500) 2014 $127,500 ($127,500) 2010 $0 $0 2011 $127,500 ($127,500) 2012 $127,500 ($127,500) 2013 $127,500 ($127,500) 2014 $127,500 ($127,500) Fiscal Analysis The bill would require manufacturers to label televisions sold in the state and would prohibit the sale of televisions without the proper label. The bill would require television manufacturers to register with the Texas Commission on Environmental Quality and pay a registration fee of $2,500. The registration would be renewed annually and would have to contain specific information including the brands offered for sale and contact information. The bill would require manufacturers to report to the TCEQ by January 31 of each year the total weight of covered television equipment that was sold in the state or sold nationally in the preceding year. Manufacturers would also have to report the total weight of covered televisions that were collected and recycled in the state during the preceding year. Manufacturers would also be required to submit to the commission, either individually or as a group, a recovery plan to collect, transport, and recycle covered television equipment. The TCEQ would be responsible for publishing the list of registered manufacturers on its website and those who are in compliance, to educate consumers, provide a toll free telephone number for information, host or designate a host for an internet site that contains links about the recovery plans, collection events, collection sites, and community recycling programs. The TCEQ would be authorized to conduct audits and inspections and would be required to enforce provisions in the bill. The bill would require manufacturers to label televisions sold in the state and would prohibit the sale of televisions without the proper label. The bill would require television manufacturers to register with the Texas Commission on Environmental Quality and pay a registration fee of $2,500. The registration would be renewed annually and would have to contain specific information including the brands offered for sale and contact information. The bill would require manufacturers to report to the TCEQ by January 31 of each year the total weight of covered television equipment that was sold in the state or sold nationally in the preceding year. Manufacturers would also have to report the total weight of covered televisions that were collected and recycled in the state during the preceding year. Manufacturers would also be required to submit to the commission, either individually or as a group, a recovery plan to collect, transport, and recycle covered television equipment. The TCEQ would be responsible for publishing the list of registered manufacturers on its website and those who are in compliance, to educate consumers, provide a toll free telephone number for information, host or designate a host for an internet site that contains links about the recovery plans, collection events, collection sites, and community recycling programs. The TCEQ would be authorized to conduct audits and inspections and would be required to enforce provisions in the bill. Methodology It is estimated that the bill's $2,500 registration fee would apply to 51 manufacturers resulting in annual of revenue of $127,500 to the General Revenue Fund beginning in fiscal year 2011. This estimate assumes that the funding would be appropriated to the TCEQ to carry out the responsibilities required by the bill. The bill's provision for a registration fee for television recyclers to recover costs is not expected to be significant because related costs are not expected to be significant. It is estimated that the bill's $2,500 registration fee would apply to 51 manufacturers resulting in annual of revenue of $127,500 to the General Revenue Fund beginning in fiscal year 2011. This estimate assumes that the funding would be appropriated to the TCEQ to carry out the responsibilities required by the bill. The bill's provision for a registration fee for television recyclers to recover costs is not expected to be significant because related costs are not expected to be significant. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality LBB Staff: JOB, JRO, TL, SZ, ZS JOB, JRO, TL, SZ, ZS