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
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* 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. *
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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 *
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All Funds, Five-Year Impact:
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*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 *
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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