COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1091-01

Bill No.: SB 360

Subject: Licenses - Misc.; Natural Resources Dept.; Mining and Oil and Gas Production

Type: Original

Date: February 17, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Mined Land Reclamation Fund $26,000 $26,000 $26,000
Total Estimated

Net Effect on Other

State Funds

$26,000 $26,000 $26,000



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Transportation, Department of Economic Development, Department of Revenue, Office of Attorney General and Department of Conservation assume no fiscal impact to their agency.



Officials with the Department of Natural Resources assume this proposal would exempt any sand or gravel operator that mines less than 5,000 tons of gravel per year from regulation and licensing.



Currently, there are approximately 130 operators who remove less than 5,000 tons of sand and gravel from streams annually. Each permit costs $300 (130 x $300 = $39,000). The cost for administering, permitting, and enforcing these permits averages $500 each (130 x $500 = $65,000). Therefore, the department assumes there would be a net cost avoidance of $26,000 as a result of this proposal.





FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
Savings - DNR

Mined Land Reclamation Fund



$26,000


$26,000


$26,000
$26,000 $26,000 $26,000




FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This act exempts any sand or gravel operator that mines less than 5,000 tons of gravel per year from regulation and licensing.



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

Office of Attorney General

Department of Natural Resources

Department of Transportation

Department of Economic Development

Department of Revenue

Department of Conservation





Mickey Wilson, CPA

Director

February 17, 2003