COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         1034-06

Bill No.:          Truly Agreed To and Finally Passed SCS for HCS for HB 426

Subject:           Business and Commerce; Energy; Utilities; Agriculture Dept.

Type:              Original

Date:               June 1, 2007

Bill Summary:            Creates the Missouri Propane Safety Act.

FISCAL SUMMARY

Net of Revenues and Expenditures

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Secretary of State's Office assume many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The Secretary of State’s office is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact for this fiscal note to Secretary of State’s office for Administrative Rules is less than $2,500. The Secretary of State’s office recognizes that this is a small amount and does not expect that additional funding would be required to meet these costs. However, we also recognize that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what our office can sustain with our core budget. Therefore, we reserve the right to request funding for the cost of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the governor.

Officials from the Department of Agriculture (AGR) assume this proposal creates the Missouri Propane Safety Commission within the Department of Agriculture. The legislation imposes an assessment fee on propane to fund the commission. The initial assessment fee of one-tenth of one cent per gallon is expected to generate approximately $300,000 of additional state revenue. In addition, the commission is authorized to set fees for permits, licensees, and certificates. Although there is no way to determine the levels that the commission will set for these items, or the expenditure levels the commission will decide are necessary to implement the program, we anticipate that the additional fee revenue will not exceed $150,000, which would bring total annual fee revenue to no more than $450,000.

The Department of Natural Resources assume this proposal would be known as the Missouri Propane Safety Act. It would establish a nine-member Missouri Propane Gas Authority with the Department of Agriculture to ensure the administration and enforcement of chapter 323 and related rules and regulations regarding the safety of liquefied petroleum gases.

Members of the Authority would be appointed by the Governor and approved by the Senate. One member is to be a full time employee of the Department of Natural Resources. Commissioners would receive no compensation for their duties but would be reimbursed from the funds of the authority for actual and necessary expenses incurred in the performance of official duties.

Therefore, the department would not anticipate any significant direct fiscal impact from this proposal.

FISCAL IMPACT - Small Business

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

FISCAL DESCRIPTION

The proposed legislation creates the Missouri Propane Safety Act.

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

Secretary of State's Office

Department of Natural Resources

NOT RESPONDING

Department of Economic Development

     Public Service Commission

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                June 1, 2007