LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 4, 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.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3527, As Introduced:  positive impact of $44,540,218 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                          $22,270,109  *
          *       2003                           22,270,109  *
          *       2004                           22,270,109  *
          *       2005                           22,270,109  *
          *       2006                           22,270,109  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
**************************************************************************
*Fiscal        Probable         Probable Revenue         Probable        *
* Year    Savings/(Cost) from   Gain/(Loss) from    Savings/(Cost) from  *
*        General Revenue Fund    Water Resource       Water Resource     *
*                0001              Management/          Management/      *
*                                 GR-Dedicated         GR-Dedicated      *
*                                     0153                 0153          *
*  2002            $22,270,109          $22,270,109        $(22,270,109) *
*  2003             22,270,109           22,270,109         (22,270,109) *
*  2004             22,270,109           22,270,109         (22,270,109) *
*  2005             22,270,109           22,270,109         (22,270,109) *
*  2006             22,270,109           22,270,109         (22,270,109) *
**************************************************************************
  
Fiscal Analysis
  
The bill would require the Texas Natural Resource Conservation Commission
(TNRCC) to cover reasonable costs of administering programs relating to
drinking water protection, the federal Safe Drinking Water Act, and other
costs incurred in protecting water resources.

The bill also would provide funding flexibility to TNRCC, allowing the
agency to use funds deposited in the Water Resource Management Account
No. 153 for any program reasonably related to the activities of specific
fee payers. Under current law, such funds are restricted for uses
directly relating to the fee payers.
  
  
Methodology
  
This estimate assumes that the TNRCC would raise water-related fees to
cover all costs associated with administering the federal Safe Drinking
Water Act which currently are paid out of the General Revenue Fund,
thereby reducing the agency's need for General Revenue funding by the
same amount.

The funding flexibility provisions of the bill are not expected to result
in significant fiscal implications.
  
  
Local Government Impact
  
It is expected that a significant portion of the $22.3 million in fees
that would be raised upon passage of the bill would paid by local
governments operating public drinking water systems.
  
  
Source Agencies:   582   Texas Natural Resource Conservation Commission,
                   304   Comptroller of Public Accounts
LBB Staff:         JK, CL, TL