LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 5, 1997 TO: Honorable J.E. "Buster" Brown, Chair IN RE: House Bill No. 1016, As Engrossed Committee on Natural Resources By: Puente Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1016 ( Relating to fees imposed for certain plans subject to Texas Natural Resource Conservation Commission approval under the commission's rules for the protection of the Edwards Aquifer.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1016-As Engrossed Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis This bill would allow an increase, from $2,000 to $5,000, in the maximum fee that the Texas Natural Resources Conservation Commission (TNRCC) could impose to review and approve applications for real estate development over the Edwards Aquifer. The bill would require that all such fees currently collected and deposited to the Water Quality Account be used for TNRCC's Edwards Aquifer programs. Methodolgy The existing cap of $2,000 per application has produced about $622,000 in revenue for the Water Quality Account, whereas TNRCC's current annual program costs are $911,250. By raising the application fee cap to $5,000, this bill would allow TNRCC to recover current program costs. TNRCC estimates the annual revenue from the higher fee to be $991,300. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Revenue Probable Gain/(Loss) from Savings/(Cost) Water Quality from Water Account/ Quality Account/ GR-Dedicated GR-Dedicated 0153 0153 1998 $991,300 ($911,250) 1998 991,300 (911,250) 2000 991,300 (911,250) 2001 991,300 (911,250) 2002 991,300 (911,250) Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar fiscal implications are expected to continue as long as the legislation is in effect. No significant fiscal implication to units of local government is anticipated. Since the majority of the applicants for development of real estate over the Edwards Aquifer are private individuals and businesses, the increase in the maximum fee amount for undertaking development over the Edwards Aquifer will not have a significant fiscal implication for local governments . Source: Agencies: 582 Natural Resources Conservation Commission LBB Staff: JK ,BB ,NT