LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 22, 2013

TO:	Honorable Allan Ritter, Chair, House Committee on Natural Resources
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB254 by Miles (Relating to an exemption for farms from payment for wastewater service.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Water Code to prohibit a retail public utility from charging a community garden or farm for wastewater service unless the fee is based on the actual wastewater service used for purposes of the farm. The bill would also provide the Commission on Environmental Quality the authority to develop standards to determine whether a farm or garden qualifies for an exemption to fees charged for wastewater service. This estimate assumes the agency would be able to implement the provisions of the bill within existing resources and no significant fiscal impact to the state is anticipated.

Local Government Impact

Some local governments could see a reduction in fee revenue for wastewater service.  However, reduction in revenue is not anticipated to be significant.

The Texas Municipal League reported that wastewater is typically billed by a city water utility according to the water use, rather than actual wastewater volume.  A city opting to impose wastewater fees on an urban farm or community garden would be required to install additional metering at its own expense.

Source Agencies:

551 Department of Agriculture, 582 Commission on Environmental Quality

LBB Staff:

UP, SZ, JP, KKR