LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 2, 2001 TO: Honorable David Counts, Chair, House Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: SB1339 by Ogden (Relating to requiring owners or operators of poultry facilities to implement and maintain certified water quality management plans.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1339, As Engrossed: negative impact of $(324,000) 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 $(162,000) * * 2003 (162,000) * * 2004 (162,000) * * 2005 (162,000) * * 2006 (162,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(162,000) 3.0 * * 2003 (162,000) 3.0 * * 2004 (162,000) 3.0 * * 2005 (162,000) 3.0 * * 2006 (162,000) 3.0 * *************************************************************************** Fiscal Analysis The bill would require that all poultry facilities implement and maintain a water quality management plan certified by the State Soil and Water Conservation Board. Poultry facilities currently implement certified plans on a voluntary basis. The Texas Natural Resource Conservation Commission (TNRCC) would enforce the water quality plan requirement. Methodology The Soil and Water Conservation Board estimates that there are currently 745 poultry operations in the state without certified water quality management plans. It is expected that 300 operations would be certified in each fiscal year 2002 and 2003, based on the schedule for certification requirments provided by the bill, and that the remaining 145 plans would be certified in 2004 and 2005. It is estimated that an additional 100 applications for new plans or plan amendments would be required in fiscal years 2004 through 2006. It is estimated that the Soil and Water Conservation Board would require a total of three additional FTEs to implement the provisions of the bill at a total cost of $162,500 per year. It is expected that one FTE would be located at the agency's headquarters to process applications, data and certifications. It is expected that the remaining two additional FTEs would be located in regional offices, conducting oversight of plan development and maintenance at the district level. The bill is not expected to have a significant fiscal impact on TNRCC's enforcement and compliance activities. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 582 Texas Natural Resource Conservation Commission, 592 State Soil & Water Conservation Board LBB Staff: JK, CL, TL