LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 4, 2025 TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4041 by Morales, Eddie (Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.), As Introduced The fiscal implications of the bill cannot be determined due to the timing and number of violations that would occur and the timing and amounts of penalty revenues that would be assessed and collected being unknown. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. This bill would amend the Utilities Code to authorize the Railroad Commission (RRC) to impose an administrative penalty on a propane distribution system retailer who fails to comply with financial surety requirements. The bill would also establish the procedures for assessing and enforcing administrative penalties. The bill would allow the RRC to assess a penalty of up to $1,000 per violation per day, with a maximum penalty of $10,000 for related series of violations. Factors in determining the penalty amount would include the retailer's history of violations, the seriousness of the offense, and any public health or safety hazards.Based on the analysis of the Comptroller of Public Accounts, the fiscal impact cannot be determined due to the timing and number of violations that would occur and the timing and amounts of penalty revenues that would be assessed and collected being unknown.Based on information provided by the RRC, it is assumed that any costs associated with the bill could be absorbed using existing resources. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 455 Railroad Commission LBB Staff: b > td > JMc, RStu, MW, JOc
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 4, 2025
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4041 by Morales, Eddie (Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.), As Introduced
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4041 by Morales, Eddie (Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.), As Introduced
Honorable Drew Darby, Chair, House Committee on Energy Resources
Honorable Drew Darby, Chair, House Committee on Energy Resources
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4041 by Morales, Eddie (Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.), As Introduced
HB4041 by Morales, Eddie (Relating to the authority of the Railroad Commission of Texas to impose an administrative penalty on a propane distribution system retailer.), As Introduced
The fiscal implications of the bill cannot be determined due to the timing and number of violations that would occur and the timing and amounts of penalty revenues that would be assessed and collected being unknown. 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 fiscal implications of the bill cannot be determined due to the timing and number of violations that would occur and the timing and amounts of penalty revenues that would be assessed and collected being unknown. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
This bill would amend the Utilities Code to authorize the Railroad Commission (RRC) to impose an administrative penalty on a propane distribution system retailer who fails to comply with financial surety requirements. The bill would also establish the procedures for assessing and enforcing administrative penalties. The bill would allow the RRC to assess a penalty of up to $1,000 per violation per day, with a maximum penalty of $10,000 for related series of violations. Factors in determining the penalty amount would include the retailer's history of violations, the seriousness of the offense, and any public health or safety hazards.Based on the analysis of the Comptroller of Public Accounts, the fiscal impact cannot be determined due to the timing and number of violations that would occur and the timing and amounts of penalty revenues that would be assessed and collected being unknown.Based on information provided by the RRC, it is assumed that any costs associated with the bill could be absorbed using existing resources.
Based on the analysis of the Comptroller of Public Accounts, the fiscal impact cannot be determined due to the timing and number of violations that would occur and the timing and amounts of penalty revenues that would be assessed and collected being unknown.
Based on information provided by the RRC, it is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 455 Railroad Commission
304 Comptroller of Public Accounts, 455 Railroad Commission
LBB Staff: b > td > JMc, RStu, MW, JOc
JMc, RStu, MW, JOc