LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 2001 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: HB3528 by Counts (Relating to the consolidation and use of certain fees under Chapter 26, Water Code.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would create a water quality fee, combining the current waste treatment inspection and the water quality assessment fees. The new water quality fee would be capped at $75,000 for each permit holder. Currently, the waste treatment inspection fee is capped at $25,000 by statute, and the water quality assessment fee is capped at $40,000 as set by agency rule; the bill could result in a fee increase of no more than $10,000 per permit holder. The bill also would provide greater flexibility to the Texas Natural Resource Conservation Commission (TNRCC) in setting water related fees, allowing the agency to set the water quality fee to cover the reasonable costs of administering and enforcing a water resource management program reasonably related to the activities of fee payers. The bill could result in increased revenues to the General Revenue-Dedicated Water Resource Management Account No. 153 since it would raise the current fee cap and 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 the cost of additional expenses associated with the development and Total Maximum Daily Loads and the implementation of watershed action plans. The TNRCC has identified the need for an additional $3.9 million for this activity during the 2002-03 biennium. Local Government Impact Local governments holding water quality permits could experience cost increases of up to $10,000 per year, depending on the rate the TNRCC would set for the water quality permit fee. Source Agencies: 580 Texas Water Development Board, 582 Texas Natural Resource Conservation Commission, 304 Comptroller of Public Accounts LBB Staff: JK, CL, TL