LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 11, 2009 TO: Honorable Kip Averitt, Chair, Senate Committee on Natural Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB457 by Gallegos (Relating to penalty assessment for violations of the Texas Clean Air Act committed by major sources.), As Introduced Depending upon the number of violators that would have to pay a penalty greater than the current maximum penalty, there could be an indeterminate revenue gain to the state. The bill would require the Texas Commission on Environmental Quality (TCEQ) to assess a penalty in an amount that is equal to or greater than the total of the economic benefit gained through violation (including costs avoided due to the violation) and the amount necessary to deter future violations. The bill would take effect on September 1, 2009. Under current law, penalties are limited to $10,000 per day penalty in some instances. Passage of the bill would allow penalties in excess of $10,000 to be assessed in cases where the economic benefit gained through violations would be greater than that amount. Such penalties would be deposited to the General Revenue Fund and would depend on the number of violators the agency would determine are benefitting from their violation in excess of the current maximum penalty and the extent to which such entities are benefitting. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:582 Commission on Environmental Quality LBB Staff: JOB, SD, TL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 11, 2009
TO: Honorable Kip Averitt, Chair, Senate Committee on Natural Resources FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB457 by Gallegos (Relating to penalty assessment for violations of the Texas Clean Air Act committed by major sources.), As Introduced
TO: Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB457 by Gallegos (Relating to penalty assessment for violations of the Texas Clean Air Act committed by major sources.), As Introduced
Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB457 by Gallegos (Relating to penalty assessment for violations of the Texas Clean Air Act committed by major sources.), As Introduced
SB457 by Gallegos (Relating to penalty assessment for violations of the Texas Clean Air Act committed by major sources.), As Introduced
Depending upon the number of violators that would have to pay a penalty greater than the current maximum penalty, there could be an indeterminate revenue gain to the state.
Depending upon the number of violators that would have to pay a penalty greater than the current maximum penalty, there could be an indeterminate revenue gain to the state.
The bill would require the Texas Commission on Environmental Quality (TCEQ) to assess a penalty in an amount that is equal to or greater than the total of the economic benefit gained through violation (including costs avoided due to the violation) and the amount necessary to deter future violations. The bill would take effect on September 1, 2009. Under current law, penalties are limited to $10,000 per day penalty in some instances. Passage of the bill would allow penalties in excess of $10,000 to be assessed in cases where the economic benefit gained through violations would be greater than that amount. Such penalties would be deposited to the General Revenue Fund and would depend on the number of violators the agency would determine are benefitting from their violation in excess of the current maximum penalty and the extent to which such entities are benefitting.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 582 Commission on Environmental Quality
582 Commission on Environmental Quality
LBB Staff: JOB, SD, TL
JOB, SD, TL