LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 15, 1995



 TO:     Honorable John T. Montford, Chair      IN RE:  Senate Bill No. 768
         Committee on Finance                           By: Montford
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
768 (Relating to the recovery of the costs of administering the
state water pollution control revolving fund and additional state
revolving funds.) this office has determined the following:

This bill would add a new section to the Texas Water Code to
allow the Texas Water Development Board (TWDB) to recover the
cost  incurred from operating the State Revolving Fund (SRF). 
The bill would allow the TWDB to collect a loan origination
charge and an annual loan service charge from the political
subdivisions participating in the program.  The bill would
require the TWDB to establish an operating fund outside of the
state treasury  for the deposit of the fees collected.

Federal funds are currently use to cover the cost of operating
the SRF program.  This bill would provide an alternative source
of funding for the operation of the SRF program if the federal
Clean Water Act is not authorized and funds are not appropriated
by the U.S. Congress.

The TWDB would not collect fees allowed by this bill if federal
funding is resumed.


No significant fiscal implication to the State or units of local
government is anticipated.


Source:   Water Development Board, Comptroller of Public Accounts
          LBB Staff: JK, CG, DF