LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION May 1, 2025 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1463 by Jones, Venton (Relating to the manufacture, transportation, storage, and disposal of new and scrap tires; authorizing a fee.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1463, As Introduced: an impact of $0 through the biennium ending August 31, 2027. 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 toGeneral Revenue Related Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromWaste Management Acct5492026($367,500)2027$02028$02029$02030$0 Fiscal AnalysisThe bill would amend the Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to collect completed tire manifests and electronic signatures from scrap tire generators, transporters, and disposal or storage facilities. The bill would authorize TCEQ to hold the scrap tire transporters and generators liable for each scrap tire that was not disposed at an authorized disposal or storage facility. The bill would require TCEQ to phase in standardized tire tagging and incorporate tire tagging into the tire manifest. The bill would authorize Commissioners Courts to fine scrap tire transporters and generators an amount up to $500 per improperly disposed scrap tire or suspend or revoke the scrap tire generators license to sell tires. The bill would authorize Commissioners Courts to issue a fee of not more than $5 for the disposal of each tire and transfer 50 cents of the fee imposed to TCEQ.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
May 1, 2025
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1463 by Jones, Venton (Relating to the manufacture, transportation, storage, and disposal of new and scrap tires; authorizing a fee.), As Introduced
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1463 by Jones, Venton (Relating to the manufacture, transportation, storage, and disposal of new and scrap tires; authorizing a fee.), As Introduced
Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1463 by Jones, Venton (Relating to the manufacture, transportation, storage, and disposal of new and scrap tires; authorizing a fee.), As Introduced
HB1463 by Jones, Venton (Relating to the manufacture, transportation, storage, and disposal of new and scrap tires; authorizing a fee.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1463, As Introduced: an impact of $0 through the biennium ending August 31, 2027. 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 HB1463, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($367,500)
2027 $0
2028 $0
2029 $0
2030 $0
Fiscal Analysis
The bill would amend the Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to collect completed tire manifests and electronic signatures from scrap tire generators, transporters, and disposal or storage facilities. The bill would authorize TCEQ to hold the scrap tire transporters and generators liable for each scrap tire that was not disposed at an authorized disposal or storage facility. The bill would require TCEQ to phase in standardized tire tagging and incorporate tire tagging into the tire manifest. The bill would authorize Commissioners Courts to fine scrap tire transporters and generators an amount up to $500 per improperly disposed scrap tire or suspend or revoke the scrap tire generators license to sell tires. The bill would authorize Commissioners Courts to issue a fee of not more than $5 for the disposal of each tire and transfer 50 cents of the fee imposed to TCEQ.
The bill would authorize Commissioners Courts to fine scrap tire transporters and generators an amount up to $500 per improperly disposed scrap tire or suspend or revoke the scrap tire generators license to sell tires. The bill would authorize Commissioners Courts to issue a fee of not more than $5 for the disposal of each tire and transfer 50 cents of the fee imposed to TCEQ.
Methodology
Based on information provided by TCEQ, this analysis assumes the agency would have to update its State of Texas Environmental Electronic Reporting System (STEERS) and Internal Data Application (IDA) applications to update the electronic manifest system and to create a tire tagging system. This analysis assumes information technology costs would be provided from General Revenue-Dedicated Waste Management Account No. 549 totaling $367,500 in fiscal year 2026.This analysis assumes all other costs associated with implementing the provisions of the bill could be absorbed using existing resources.This analysis assumes that any positive fiscal impacts from revenue deposited to the state resulting from the 50 cent fee transfer from Commissioners Courts to TCEQ cannot be determined because the number of counties that may impose a tire disposal fee under the provisions of the bill, the number of disposals that would occur, and the number of 50 cent transfers that would be made to TCEQ from the fees collected are unknown. Absent of direction in the bill, this analysis assumes that any revenue collected from the revenue transferred to the state would be deposited to the credit of the General Revenue Fund instead of the General Revenue-Dedicated Waste Management Account No. 549.
Based on information provided by TCEQ, this analysis assumes the agency would have to update its State of Texas Environmental Electronic Reporting System (STEERS) and Internal Data Application (IDA) applications to update the electronic manifest system and to create a tire tagging system. This analysis assumes information technology costs would be provided from General Revenue-Dedicated Waste Management Account No. 549 totaling $367,500 in fiscal year 2026.
This analysis assumes all other costs associated with implementing the provisions of the bill could be absorbed using existing resources.
This analysis assumes that any positive fiscal impacts from revenue deposited to the state resulting from the 50 cent fee transfer from Commissioners Courts to TCEQ cannot be determined because the number of counties that may impose a tire disposal fee under the provisions of the bill, the number of disposals that would occur, and the number of 50 cent transfers that would be made to TCEQ from the fees collected are unknown. Absent of direction in the bill, this analysis assumes that any revenue collected from the revenue transferred to the state would be deposited to the credit of the General Revenue Fund instead of the General Revenue-Dedicated Waste Management Account No. 549.
Technology
Technology costs reflected in the table above include $367,500 in fiscal year 2026 to make modifications to STEERS and IDA technology systems to update the electronic manifest system and create the tire tagging system.
Local Government Impact
The impact on local governments cannot be determined because the number and amount of fees that would be issued for the disposal of tires as well as the number of improperly disposed of scrap tires for which a fine would be issued and the amount of those fines are unknown.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality
304 Comptroller of Public Accounts, 582 Commission on Environmental Quality
LBB Staff: b > td > JMc, FV, MW, AJL, SD
JMc, FV, MW, AJL, SD