LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 20, 2001
  
  
          TO:  Honorable J.E. "Buster" Brown, Chair, Senate Committee on
               Natural Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB312  by Zaffirini (Relating to the review and functions
               of the Texas Water Development Board.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB312, As Introduced:  positive impact of $0 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                                   $0  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal      Probable        Probable        Probable       Change in     *
* Year    Savings/(Cost)  Savings/(Cost)     Revenue     Number of State  *
*           from Other         from        Gain/(Loss)    Employees from  *
*            Funds--       Appropriated        from          FY 2001      *
*             TWRFA          Receipts      Appropriated                   *
*              0997            0666          Receipts                     *
*                                              0666                       *
*  2002        $(274,000)       $(25,000)         $25,000             1.5 *
*  2003         (274,000)        (25,000)          25,000             1.5 *
*  2004         (274,000)        (25,000)          25,000             1.5 *
*  2005         (274,000)        (25,000)          25,000             1.5 *
*  2006         (274,000)        (25,000)          25,000             1.5 *
***************************************************************************
  
Technology Impact
  
The cost of providing an additional FTEs with computers is estimated at
$1,800 in fiscal year 2002. This cost would be paid using Texas Water
Resources Finance Authority (TWRFA) proceeds.

It is estimated that $25,000 in additional appropriated receipts per year
will be spent on upgrades to the Texas Natural Resource Information
System (TNRIS), including faster Internet connections and hardware
upgrades. These funds will be recovered through fees charged to private
entities to establish partnerships with the Texas Water Development
Board and TNRIS.
  
  
Fiscal Analysis
  
The bill would require the agency to develop a capital spending plan
setting water project priorities to be supported by state-funded
programs, including the Texas Water Development Fund, the Agricultural
Water Conservation Fund and the Water Assistance Fund.

The bill would establish a separate account in the clean water revolving
fund to be used to provide financial assistance to private entities for
nonpoint source pollution control and abatement policies.

The bill would create The Rural Community Water and Wastewater Loan
(RCWWL) Fund within the Water Assistance Fund No. 480. The RCWWL Fund
would consist of money transferred by the Board from the water assistance
fund, from proceeds of the sale of political subdivision bonds by the
Board to the TWRFA and from repayments on loans made from the fund. The
Fund would be used to make loans to rural communities for the
construction, acquisition or improvement of water and wastewater
projects.

The bill would allow the Water Development Board to enter into
partnerships with private entities on behalf of the TNRIS and allow the
agency to collect fees for such arrangements.
  
  
Methodology
  
There could be some administrative costs associated with the bill's
requirement that a Capital Spending Plan be developed. However, it is
anticipated that these costs could be absorbed within the agency's
existing budget. There is also no significant fiscal impact expected from
the bill's requirement that a separate account be established in the
clean water revolving fund to be used to provide financial assistance to
private entities for nonpoint source pollution control and abatement
policies.

Assuming that only amounts in the TWRFA account would be available to
fund loans from the RCWWL Fund, it is estimated that of the total
$1,370,000 remaining in TWRFA, $920,000 in loans would be made from the
Fund over the period fiscal year 2002 through 2005, with an average
$184,000 per year. It is estimated that 5 to 6 loans would be made to
rural communities over that period, and that the Water Development Board
would require one additional FTE to administer the loan program. Costs
associated with this program, including those associated with salaries,
wages, equipment and travel are estimated at $90,000 per year and would
be paid using TWRFA proceeds, which are outside the state treasury.

It is estimated that the Water Development Board would charge fees
totaling $25,000 per year for the establishment of partnerships with
private entities on behalf of the TNRIS system. It is expected that all
of these proceeds would be spent to improve the TNRIS system's
accessibility to the Internet.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   592   State Soil & Water Conservation Board, 313
                   Department of Information Resources, 582   Texas
                   Natural Resource Conservation Commission, 116
                   Sunset Advisory Commission, 332   Texas Department
                   of Housing and Community Affairs, 580   Texas Water
                   Development Board, 304   Comptroller of Public
                   Accounts, 302   Office of the Attorney General, 307
                   Secretary of State
LBB Staff:         JK, CL, TL