LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 22, 2001
  
  
          TO:  Honorable David Counts, Chair, House Committee on Natural
               Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3289  by Lewis, Ron (Relating to certain river
               authorities and water districts, the codification of Acts
               creating and regulating the authorities and districts,
               and the creation of the Texas Water Policy Council to
               review the authorities and districts.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3289, 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 Savings/(Cost) from    Probable Revenue Gain/(Loss)   *
* Year         General Revenue Fund         from General Revenue Fund     *
*                      0001                            0001               *
*  2002                        $(292,887)                        $292,887 *
*  2003                         (292,887)                         292,887 *
*  2004                         (292,887)                         292,887 *
*  2005                         (292,887)                         292,887 *
*  2006                         (292,887)                         292,887 *
***************************************************************************
  
Fiscal Analysis
  
The bill would require the State Auditor's Office to conduct annual
audits on four river authorities. The bill provides for the State
Auditor's Office to recover costs incurred in conducting such audits.

The bill would create the Texas Water Policy Council. The Council would
conduct reviews of water districts and authorities as specified in the
bill on a 5-year cycle and provide reports on the findings of those
reviews on a biennial basis. The Council would have a secretary who would
be a full-time employee of the Natural Resource Conservation Commission.
Other necessary staff would be provided by the Water Development Board.

The bill would create the Interagency Water Policy Account, a
General-Revenue Dedicated Account, in the state treasury. The bill would
provide for authority officials to be reimbursed for actual and
necessary expenses by legislative appropriation.
  
  
Methodology
  
The State Auditor's Office would require 2.5 additional FTEs to conduct
the audits required by the bill. Total salary and benefit costs are
estimated at $292,887 per year, based on an expected 4,225 hours of audit
time at $54.04 per hour. All costs are expected to be recovered from the
four river authorities.

State agencies included as members of the Water Policy Council or
required to provide staff to the Council could incur some administrative
costs associated with attending meetings and preparing reports required
by the bill. However, these costs are not anticipated to be significant.

The bills provision providing for officials of the Water Policy Council
to be eligible for reimbursement for actual and necessary expenses is
not expected to result in significant fiscal implications.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   596   Texas River Compact Commissions, 592   State
                   Soil & Water Conservation Board, 582   Texas Natural
                   Resource Conservation Commission, 305   General Land
                   Office, 302   Office of the Attorney General, 308
                   State Auditor's Office, 455   Railroad Commission of
                   Texas, 802   Texas Parks and Wildlife Department,
                   580   Texas Water Development Board, 304
                   Comptroller of Public Accounts
LBB Staff:         JK, CL, DB, TL