LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 3, 2001
  
  
          TO:  Honorable David Counts, Chair, House Committee on Natural
               Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2817  by Lewis, Ron (Relating to certain laws governing
               water districts and nonprofit water or sewer service
               corporations; creating a criminal offense.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2817, As Introduced:  negative impact of $(2,024,000) through       *
*  the biennium ending August 31, 2003.                                  *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                         $(1,012,000)  *
          *       2003                          (1,012,000)  *
          *       2004                          (1,012,000)  *
          *       2005                          (1,012,000)  *
          *       2006                          (1,012,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                             $(1,012,000) *
         *      2003                              (1,012,000) *
         *      2004                              (1,012,000) *
         *      2005                              (1,012,000) *
         *      2006                              (1,012,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 49 of the Water Code.  This chapter of the
Water Code contains provisions applicable to all general law districts
within the scope of the Water Code.

The bill would clarify water use as specified in water supply contracts
between a water supply corporation and a political subdivision.  A water
district operating a wastewater collection system would be allowed to
prohibit private on-site wastewater holding or treatment facilities on
land within the district.

The bill would exempt all districts that have not been dissolved by order
of the Texas Natural Resource Conservation Commission (TNRCC) from Title
6 of the Property Code, concerning unclaimed property.

The bill would take effect September 1, 2001.
  
  
Methodology
  
Under current law, property held by districts is presumed abandoned after
a dormancy period of three years and must be reported and remitted to
the Comptroller of Public Accounts.  Unclaimed property is deposited in
the General Revenue Fund 0001.

The provisions of the bill would exempt non-dissolved districts from
reporting and remitting abandoned property.  According to the
Comptroller's office, the estimated loss was determined by analyzing
historical data on unclaimed property and computing the average annual
amount of abandoned property reported and remitted to the state by
districts during the last three fiscal years.  This amount was adjusted
for estimated valid claims to be paid on abandoned property reported and
delivered to the state.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   582   Texas Natural Resource Conservation Commission,
                   580   Texas Water Development Board, 304
                   Comptroller of Public Accounts
LBB Staff:         JK, CL, DB