LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 16, 2001
  
  
          TO:  Honorable David Counts, Chair, House Committee on Natural
               Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3527  by Counts (Relating to the use of certain fees by
               the Texas Natural Resource Conservation Commission.),
               Committee Report 1st House, Substituted
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would provide greater flexibility to the Texas Natural Resource
Conservation Commission (TNRCC) in setting several water related fees,
allowing the agency to set fees to cover costs incurred to protect water
resources that are reasonably related to the activities of fee payers.

The bill could result in increased revenues to the General
Revenue-Dedicated Account No. 153 since it would allow fees to be set
based on broader criteria than under current law. The amount of
additional revenue would depend on agency needs and legislative
appropriations. For example, passage of the bill could potentially
provide a mechanism to raise sufficient revenue to cover costs currently
paid using General Revenue, and/or the bill potentially could provide
funding for additional expenses associated with the development and
Total Maximum Daily Load (TMDLs) and the implementation of watershed
action plans. The TNRCC has identified the need for an additional $3.9
million for TMDLs during the 2002-03 biennium.
  
Local Government Impact
  
Local governments could incur cost increases, depending on rate increases
the TNRCC would implement as a result of the bill's passage.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 582   Texas
                   Natural Resource Conservation Commission
LBB Staff:         JK, CL, TL