79(R) HB 2434 Introduced version

The bill would require that property owners or managers install and use submeters in property for which construction began after January 1, 2003. The submeters would be used to bill tenants for water use instead of using a formula allocation system for billing. The Texas Commission on Environmental Quality (TCEQ) could allow for exceptions to allow the use of the allocation method in cases where submetering would not be feasible, but a public hearing would need to be held. The TCEQ would be allowed to charge the property owner a reasonable fee to reimburse the commission for investigating the owners request and for administering notice and hearing requirements for the exception. The bill would create a new dedicated account in the General Revenue Fund called the submetering account.

There would be no significant fiscal impact to TCEQ as a result of the bill's passage. The estimated cost to investigate a request and conduct a hearing would be $1500. It is projected that the agency would receive one request per quarter. Therefore the amount of revenue to the newly created submetering account and ongoing costs associated with the bill are not expected to exceed $6,000 per fiscal year.

No significant fiscal implication to units of local government is anticipated. Since the bill provides that utilities would be required in certain cases to install individual meters, municipalities operating water and wastewater systems could experience associated costs. However, since the bill provides for cost recovery, any cost is expected to be offset by revenues.

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:	HB2434 by Puente (Relating to submetering and allocation of water service.), As Introduced