SB 0875 - Fiscal Note

Fiscal Note - SB 0875 - Reimbursement For Certain Underground Storage Tank Cleanups

L.R. NO.  3229-01
BILL NO.  SB 875
SUBJECT:  Underground Storage Tanks
TYPE:     Updated
DATE:     March 26, 1996

     #  Updated to reflect new information.


                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Underground
Storage
 Tank Insurance #                $0              $0              $0

Total Estimated
Net Effect on All
State Funds #                    $0              $0              $0

#  Additional unfunded liability of $6,615,000 not included.  No fiscal
   impact is expected during the fiscal note period because present
   liabilities exceed anticipated revenue.


                ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997      FY 1998            FY 1999

None                             $0           $0                 $0

Total Estimated
Net Effect on All
Federal Funds                    $0           $0                 $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government                 $0              $0              $0


                              FISCAL ANALYSIS

ASSUMPTION

The Department of Natural Resources (DNR) assumes this proposal would add
costs for the cleanup  of an estimated 140 underground storage tanks leaking
prior to August 28, 1989.  DNR estimates $6,615,000 will be needed for these
cleanups.  In consideration of the fund's annual revenue, the DNR estimates
it will take 15 years to process and pay all the claims from the Underground
Storage Tank Insurance fund.

#  Based on a decision by the Oversight Subcommittee on a similar proposal,
Oversight assumes  this proposal creates $6,615,000 in additional unfunded
liabilities to the Underground Storage Tank Insurance Fund.  No fiscal impact
is expected during the fiscal note period because present liabilities exceed
anticipated revenue.

Oversight assumes all income to, and expenditures from the fund will cease on
December 31, 1998, when the fund is scheduled to expire pursuant to 319.129
RSMo section 15. Oversight assumes future legislation will address the
disposition of any money remaining in the fund on that date.


FISCAL IMPACT - State Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)             (6 Mo.)
UNDERGROUND STORAGE TANK
      INSURANCE FUND

#                                        $0        $0        $0


FISCAL IMPACT - Local Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)

                                         $0        $0        $0

#  Additional unfunded liability of $6,615,000 is expected to result from
this proposal.


DESCRIPTION

This act removes an existing limitation that money from the Missouri
Underground Storage Tank Insurance Fund shall not be expended for cleanup of
releases from underground storage tanks being remediated prior to August 28,
1989.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Missouri Department of Natural Resources