LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 25, 2013 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB900 by Fraser (Relating to the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would increase maximum penalty amounts for violation of certain statutes administered by the Railroad Commission. The Railroad Commission reports that its pipeline safety programs reimbursements from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) are based on a point system, and that the program currently is being penalized because statutory penalty amounts in Texas law do not match the amounts in federal law. Passage of the bill would align the penalty amounts with the federal amounts, which could result in the restoration of points for the pipeline safety program. This could result in the receipt of additional Federal Funds by the Railroad Commission. However, any additional Federal Funds received are not expected to be significant. In addition, revenue associated with increased penalty is not expected to result in significant increased revenues to the state. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:455 Railroad Commission, 304 Comptroller of Public Accounts, 696 Department of Criminal Justice LBB Staff: UP, SZ, TL, LM LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 25, 2013 TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB900 by Fraser (Relating to the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas.), As Engrossed TO: Honorable Jim Keffer, Chair, House Committee on Energy Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE: SB900 by Fraser (Relating to the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas.), As Engrossed Honorable Jim Keffer, Chair, House Committee on Energy Resources Honorable Jim Keffer, Chair, House Committee on Energy Resources Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board SB900 by Fraser (Relating to the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas.), As Engrossed SB900 by Fraser (Relating to the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas.), As Engrossed No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would increase maximum penalty amounts for violation of certain statutes administered by the Railroad Commission. The Railroad Commission reports that its pipeline safety programs reimbursements from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) are based on a point system, and that the program currently is being penalized because statutory penalty amounts in Texas law do not match the amounts in federal law. Passage of the bill would align the penalty amounts with the federal amounts, which could result in the restoration of points for the pipeline safety program. This could result in the receipt of additional Federal Funds by the Railroad Commission. However, any additional Federal Funds received are not expected to be significant. In addition, revenue associated with increased penalty is not expected to result in significant increased revenues to the state. The bill would increase maximum penalty amounts for violation of certain statutes administered by the Railroad Commission. The Railroad Commission reports that its pipeline safety programs reimbursements from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) are based on a point system, and that the program currently is being penalized because statutory penalty amounts in Texas law do not match the amounts in federal law. Passage of the bill would align the penalty amounts with the federal amounts, which could result in the restoration of points for the pipeline safety program. This could result in the receipt of additional Federal Funds by the Railroad Commission. However, any additional Federal Funds received are not expected to be significant. In addition, revenue associated with increased penalty is not expected to result in significant increased revenues to the state. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 455 Railroad Commission, 304 Comptroller of Public Accounts, 696 Department of Criminal Justice 455 Railroad Commission, 304 Comptroller of Public Accounts, 696 Department of Criminal Justice LBB Staff: UP, SZ, TL, LM UP, SZ, TL, LM