LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 27, 2001 TO: Honorable David Counts, Chair, House Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: HB3188 by Puente (Relating to the plugging of abandoned or deteriorated water wells.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3188, As Introduced: positive impact of $0 through the biennium * * ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Change in Number of * * Year Savings/(Cost) from Gain/(Loss) from New State Employees from * * New General Revenue General Revenue FY 2001 * * Dedicated Dedicated Water Well * * WaterWell Plugging Plugging * * 2002 $(424,425) $424,425 4.0 * * 2003 (1,150,824) 1,150,824 4.0 * * 2004 (1,150,824) 1,150,824 4.0 * * 2005 (900,824) 900,824 4.0 * * 2006 (900,824) 900,824 4.0 * ************************************************************************** Technology Impact Computers and software would be needed for the additional four Full-time Equivalent Positions (FTEs) totaling $9,000 in fiscal year 2002. Fiscal Analysis The bill would amend Chapter 32 of the Water Code to authorize the assessment of a fee on new water wells for the purpose of plugging abandoned and deteriorated water wells. Proceeds would be deposited into a new, General Revenue Dedicated Account - Water Well Plugging. The Department of Licensing and Regulation (TDLR) would set the fee amount by rule. The provisions of the bill state that no more than 20 percent of the fee proceeds could be used to cover the administrative costs of the program. The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2001. Methodology TDLR estimates it would need four additional FTEs to implement the provisions of the bill. It is anticipated there would be 150 complaints annually for the first two fiscal years and 50 complaints for each of the next three fiscal years. The agency would need a legal assistant to provide support to the new investigator. The agency also anticipates needing two administrative technicians to handle the money and perform initial entry and verification in the cash receipts system for the expected 10,000 pieces of mail. TDLR assumes the fee would apply only to new water wells and that 20,000 water wells will be drilled per year. TDLR assumes that there are about 150,000 abandoned or deteriorated water wells in Texas. It is assumed that approximately 1,500 wells would be plugged over the next five fiscal years. It is anticipated that 100 wells would be plugged in fiscal year 2002, 400 wells in both fiscal years 2003 and 2004, and 300 wells in both fiscal years 2005 and 2006. The costs for plugging the wells, estimated at $2,500 each, are estimated at $250,000 in fiscal year 2002, $1 million in fiscal years 2003 and 2004, and $750,000 in fiscal years 2005 and 2006. It is assumed that the agency would adjust fees to offset any costs associated with implementing the bill. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 582 Texas Natural Resource Conservation Commission, 304 Comptroller of Public Accounts, 452 Texas Department of Licensing and Regulation LBB Staff: JK, CL, RT, DE