LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 12, 2001
  
  
          TO:  Honorable J.E. "Buster" Brown, Chair, Senate Committee on
               Natural Resources
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB936  by Armbrister (Relating to floodplain management
               and flood insurance; providing a criminal penalty.), As
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
The bill would require that political subdivisions adopt more
comprehensive floodplain management rules  determined to be necessary and
to participate in floodplain management and mitigation initiatives such
as the National Flood Insurance Program Community Rating system, Project
Impact, or other initiatives developed by federal, state, or local
government.  The provisions of the bill also would allow the subdivisions
to collect reasonable fees to cover the cost of administering a local
floodplain management program.  Any new costs resulting from enactment of
the bill are expected to be recovered through these fees.

According to the Texas Natural Resource Conservation Commission, some
local government entities already charge an application fee to help
offset the costs of administering the floodplain program. The cost of
administering the program varies depending on the level of
sophistication of the system, population growth in the area, and the
number of permits issued monthly.  Of those political subdivisions
charging a fee, the fee ranges from $25 for development outside of the
floodplain to $75 for development inside the floodplain.  Large cities
and counties issue a high number of permits per month, while smaller
communities may issue only one or two permits per month.  Authorizing
fees to recoup costs would create a cost savings for those political
subdivisions not already charging such fees.
  
  
Source Agencies:   582   Texas Natural Resource Conservation Commission,
                   580   Texas Water Development Board, 454   Texas
                   Department of Insurance, 305   General Land Office
LBB Staff:         JK, CL, TL, DB