COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2050-01
BILL NO.: SB 525
SUBJECT: Department of Agriculture; Motor fuel
TYPE: Original
DATE: March 5, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Petroleum Inspection Fund | ($119,210) | $25,154 | ($2,431) |
| Total Estimated
Net Effect on All State Funds |
($119,210) | $25,154 | ($2,431) |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ASSUMPTION
Officials from the Department of Transportation and the Department of Revenue assume the proposed legislation would have no fiscal impact on their agencies.
Officials from the Department of Natural Resources assume the proposed legislation does not impact the department's authority, therefore, it would result in no fiscal impact on the department.
Officials from the Department of Agriculture (AGR) assume the MDA Fuel Quality Program will require one additional chemist to handle the extra testing of all gasoline samples as well as instructing the service station operators, suppliers and terminals as to the requirements. One additional Fuel Device Safety Inspector will be required to assist in enforcement of the labeling and documentation requirements. The chemist will use an existing gas chromatograph and the inspector will require a pickup truck, camper shell, sample collection equipment and oxygenate analyzer. The existing three inspectors will also each use an oxygenate analyzer. The inspectors will carry portable oxygenate analyzers and will be used as needed for enforcement purposes. Considerable increase in follow up inspections is expected. The Fuel Quality Program is currently inspecting 55% of the service stations annually.
The AGR noted that, per statute, Chapter 414.012 through 414.152 is funded solely from the Petroleum Inspection Fee Fund. The AGR also noted that the Director of Revenue (DOR) must increase the fee rate to cover the cost of the program. Therefore, Oversight assumes, pursuant to 414.082, DOR will increase fees to recoup the costs incurred by the Petroleum Inspection Fund. In the fiscal impact, Oversight has indicated an increase in fees to recoup costs incurred for each previous calendar year. Lag time in recoupment and timing differences between fiscal and calendar years create a negative fiscal impact in some years.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| PETROLEUM INSPECTION FUND | |||
| Income - Department of Agriculture | |||
| Increased Fees | $80,908 | $135,705 | $111,043 |
| Cost - Department of Agriculture | |||
| Personal Service (2 FTE) | ($47,878) | ($58,890) | ($60,362) |
| Fringe Benefits | ($15,958) | ($19,628) | ($20,119) |
| Expense and Equipment | ($136,282) | ($32,033) | ($32,993) |
| Total Cost - AGR | ($200,118) | ($110,551) | ($113,474) |
| Estimated Net Effect on | |||
| PETROLEUM INSPECTION FUND | ($119,210) | $25,154 | ($2,431) |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small businesses who sell motor fuel containing oxygenate would be expected to experience an increase in administrative costs due to the provisions in this proposal.
DESCRIPTION
This bill requires sellers of motor fuel containing an oxygenate to notify buyers at the pump of the amount and type of oxygenate used.
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
Department of Agriculture
Department of Natural Resources
Department of Revenue
Department of Transportation
Jeanne Jarrett, CPA
Director
March 5, 2001