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