Honorable Allan Ritter, Chair, House Committee on Natural Resources
FROM:
John S O'Brien, Director, Legislative Budget Board
IN RE:
HB3592 by Howard, Donna (Relating to the Lower Colorado River Authority.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3592, As Introduced: a negative impact of ($378,918) through the biennium ending August 31, 2013.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012
($189,459)
2013
($189,459)
2014
$0
2015
$0
2016
$0
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2011
2012
($189,459)
3.0
2013
($189,459)
3.0
2014
$0
0.0
2015
$0
0.0
2016
$0
0.0
Fiscal Analysis
The bill would require the Sunset Commission to review the Lower Colorado River Authority (LCRA), but it would not subject LCRA to abolishment. The review would be conducted during the period in which state agencies scheduled to be reviewed or abolished in 2013 are reviewed, and every 12th year thereafter. The bill would also specify certain characteristics of the LCRA board, and it would require that the authority ensure that for any area in which the authority owns or operates the local water supply system, the water pressure for service to fire hydrants in the area is adequate to protect public safety.
Methodology
The LCRA is not a state agency, and as such is currently not subject to review by the Sunset review. The Sunset Commission reports that enactment of the bill would result in the need for 3.0 additional staff and related costs of $189,459 in each fiscal year of 2012-13 only. These costs would be related to conducting the review and issuing recommendations, such as report production expenses. This estimate assumes that such costs would be paid out of the General Revenue Fund.
Local Government Impact
Because the bill would not have statewide impact on units of local government of the same type or class, no comment from this office is required by the rules of the House/Senate as to its probable fiscal implication on units of local government.
Source Agencies:
116 Sunset Advisory Commission, 582 Commission on Environmental Quality