LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 1, 1997
         
         
      TO: Honorable James E. "Pete" Laney            IN RE:  House Bill No. 1190, As Passed 2nd House
          Speaker of the House                Counts
          House of Representatives
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1190 ( Relating 
to monitoring of water quality in watersheds and river basins.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1190-As Passed 2nd House
         

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
 
The bill would re-authorize funding for the Clean Rivers program, 
currently set to expire August  31, 1998, and amend provisions 
in Chapter 26, Water Code, relating to water quality monitoring 
and assessments for the program. 

The bill would provide 
that river authorities receive adequate funding to complete 
assessments.  Water quality monitoring and reporting duties 
would apply only to those river authorities entering into agreements 
with  TNRCC to perform those duties.  Equitable apportionment 
of program funds among river basins would also be required. 
 Use of funds to implement the Clean Rivers program would be 
limited, and the 10 percent maximum allocation for TNRCC administrative 
costs would be continued. 

The TNRCC would be required to 
use data generated under the Clean Rivers program to conduct 
water quality management activities.  Also, the TNRCC could 
consolidate fees assessed against wastewater permit holders 
with assessments of wastewater inspection fees.  Revenues collected 
from wastewater permit holders would be allocated to fund certain 
water quality management programs.  

Existing requirements 
for cities over 5,000 in population to establish water pollution 
control and abatement plans would become voluntary.  The bill 
would, however, allow the TNRCC to require cities with population 
of 10,000 or more which have certain water pollution problems 
to establish water pollution control and abatement programs 
(WPCA programs).  Cities could contract with river authorities 
or other political subdivisions to conduct WPCA programs.  Cities 
and political subdivisions with which a city contracted could 
obtain TNRCC assistance to conduct their WPCA programs.  
 
Methodolgy
 
The bill would make no overall change to current funding.  Funding 
authority for the Clean Rivers program would continue at the 
current annual level of $5 million, allowing TNRCC to retain 
up to 10 percent for administrative costs to implement the program. 
 The remainder, $4.5 million, would be used to reimburse river 
authorities and other regional and local entities for the costs 
of conducting regional water quality assessments.  

The bill 
would continue to require participation from the Soil and Water 
Conservation Board in river basin steering committees.  The 
board anticipates it will be able to fulfill program requirements 
without additional cost.
The probable fiscal implications 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           Change in Number   
            Gain/(Loss) from   Savings/(Cost)     of State                                                
            Water Quality      from Water         Employees from                                          
            Account/           Quality Account/   FY 1997                                                 
            GR-Dedicated       GR-Dedicated                                                               
            0153               0153                                                                        
       1998                                                   0.0                                    
       1998         5,000,000       (5,000,000)               0.0                                    
       2000         5,000,000       (5,000,000)               0.0                                    
       2001         5,000,000       (5,000,000)               0.0                                    
       2002         5,000,000       (5,000,000)               0.0                                    
 


 
         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
 
          
The bill would continue the assessment and collection of fees 
from users of water, as well as wastewater permit holders.  
Based on current fee collections, local governments pay approximately 
50 percent, or $2.5 million, of the annual revenue of $5 million. 
 The bill would continue annual reimbursements of approximately 
$4.5 million to local governments for the cost of conducting 
regional water quality assessments.
          
   Source:            Agencies:   580   Water Development Board
                                         582   Natural Resources Conservation Commission
                                         592   Soil and Water Conservation Board
                      LBB Staff:   JK ,BB ,NT ,DM