LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 15, 2013 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3250 by Callegari (Relating to protecting landowners against aquifer depletion.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Water Code relating to protecting landowners against aquifer depletion. Under bill provisions, a landowner would be guaranteed a minimum amount of water within a groundwater conservation district (GCD). If a GCD cannot meet the minimum requirement, the GCD must either (1) reduce other permits, (2) pipe water to the landowner, or (3) change the desired future conditions to allow for the minimum provided. The Water Development Board anticipates that any duties under bill provisions could reasonably be absorbed within the agency's existing resources. The bill would take effect September 1, 2013. Local Government Impact According to the Texas Alliance of Groundwater Districts, the bill would have fiscal implications for GDCs, the magnitude of which would vary by district and local conditions. At a minimum, GDCs would incur costs to engage in the rule-making required by bill provisions. The fiscal impact could be significant if a GDC had to reduce permits or build and operate a pipeline to supply affected landowners. Although a GDC could recoup some pipeline construction or operations costs through a production fee allowed by bill provisions, such fees are generally capped by other provisions in the Water Code. Source Agencies:580 Water Development Board, 592 Soil and Water Conservation Board LBB Staff: UP, SZ, ZS, TB LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 15, 2013 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3250 by Callegari (Relating to protecting landowners against aquifer depletion.), As Introduced TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB3250 by Callegari (Relating to protecting landowners against aquifer depletion.), As Introduced Honorable Allan Ritter, Chair, House Committee on Natural Resources Honorable Allan Ritter, Chair, House Committee on Natural Resources Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB3250 by Callegari (Relating to protecting landowners against aquifer depletion.), As Introduced HB3250 by Callegari (Relating to protecting landowners against aquifer depletion.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Water Code relating to protecting landowners against aquifer depletion. Under bill provisions, a landowner would be guaranteed a minimum amount of water within a groundwater conservation district (GCD). If a GCD cannot meet the minimum requirement, the GCD must either (1) reduce other permits, (2) pipe water to the landowner, or (3) change the desired future conditions to allow for the minimum provided. The Water Development Board anticipates that any duties under bill provisions could reasonably be absorbed within the agency's existing resources. The bill would take effect September 1, 2013. Local Government Impact According to the Texas Alliance of Groundwater Districts, the bill would have fiscal implications for GDCs, the magnitude of which would vary by district and local conditions. At a minimum, GDCs would incur costs to engage in the rule-making required by bill provisions. The fiscal impact could be significant if a GDC had to reduce permits or build and operate a pipeline to supply affected landowners. Although a GDC could recoup some pipeline construction or operations costs through a production fee allowed by bill provisions, such fees are generally capped by other provisions in the Water Code. Source Agencies: 580 Water Development Board, 592 Soil and Water Conservation Board 580 Water Development Board, 592 Soil and Water Conservation Board LBB Staff: UP, SZ, ZS, TB UP, SZ, ZS, TB