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