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: HB3299 by Walker (Relating to the general powers and
authority of water districts; providing a penalty.), As
Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3299, As Introduced: a negative impact of $(2,108,333) through *
* the biennium ending August 31, 2003, if the effective date of the *
* bill is July 1, 2001; and a negative impact of $(2,024,000) *
* through the biennium ending August 31, 2003, if the effective date *
* of the bill is September 1, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2001 $(168,666) *
* 2002 (1,012,000) *
* 2003 (1,012,000) *
* 2004 (1,012,000) *
* 2005 (1,012,000) *
* 2006 (1,012,000) *
*****************************************************
The first scenario assumes an effective date of July 1, 2001. The second
scenario assumes an effective date of September 1, 2001.
*****************************************************
* 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, which contains
provisions applicable to all general law districts within the scope of
the Water Code.
The bill would change administrative procedures and provide
organizational options for district management. A district would be
allowed to provide a sanitary sewer system and require a property owner
in a district to connect to the system or face sanctions. Sanctions
would range from refusal of service to imposition of a lien on the
owner's property.
The bill would grant districts the authority to acquire and develop
recreational facilities. A district could charge fees for use of
recreational facilities or impose fees on district water and wastewater
customers for the support of recreational facilities; however, districts
could not issue bonds supported by ad valorem revenue to develop or
support such facilities.
The bill would exempt all districts that have not been dissolved by order
of the Texas Natural Resource Conservation Commission from Title 6 of
the Property Code, concerning unclaimed property.
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's Office. Unclaimed property is deposited in the General
Revenue Fund 0001.
The bill would exempt non-dissolved districts from reporting and
remitting abandoned property. 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. If the bill were to take effect
immediately, the effective date was presumed to be July 1, 2001;
therefore, fiscal impact would apply to only two months of fiscal year
2001. If the bill does not receive the requisite two-thirds vote in both
houses, the effective date would be September 1, 2001.
All other sections of the bill would have no fiscal impact on the state.
Local Government Impact
Non-dissolved districts that would be exempt from reporting and remitting
abandoned property would experience a savings by retaining abandoned
property; the savings would be equivalent to the state's revenue loss.
The savings would vary by district.
Source Agencies: 802 Texas Parks and Wildlife Department, 304
Comptroller of Public Accounts
LBB Staff: JK, CL, DB