LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

April 17, 2005

TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB2132 by Phillips (Relating to rates charged for water or sewer services by an entity that takes over a nonfunctioning water or sewer system.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would allow public utilities taking over non-functioning systems to immediately charge a reasonable rate for water and/or sewer services to recover service costs. The Texas Commission on Environmental Quality (TCEQ) would be required to provide a reasonable time for the utility to bring the non-functioning utility into compliance. During this time, the TCEQ would not be allowed to impose any penalties for any deficiencies in the system that is present at the time the utility takes over.

The bill's passage is not expected to result in a significant increase in workload to the TCEQ, and it is not expected to result in a significant loss in revenue to the state.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

582 Commission on Environmental Quality

LBB Staff:

JOB, WK, ZS, TL, KJG