LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION Revision 1 April 10, 2025 TO: Honorable Cody Harris, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2091 by Martinez (Relating to the provision of financial assistance by the Texas Water Development Board for certain projects.), As Introduced The fiscal implications of the bill cannot be determined because the amount and timing of funding applications and grant expenditures for eligible projects from the Water Supply Account (WSA) within the Texas Water Development Fund (DFund) are unknown at this time.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Water Code related to the WSA within the DFund. DFund is a fund in the Treasury that is administered by the Texas Water Development Board (TWDB) with constitutional appropriation authority.The bill would add grants to the forms of financial assistance that can be issued from the WSA, and allows the TWDB to establish a grant program administered from the WSA. The bill would permit grants to political subdivisions for projects relating to the construction, acquisition, or improvement of water supply projects, including projects that contain a flood control component. The bill would require TWDB to adopt rules establishing eligibility requirements for these grants and adds certain criteria that entities may not be disqualified from receiving a grant for.The Comptroller of Public Accounts (CPA) reports that the DFund was inactivated in 2012 when all of its balances and debt were shifted to the the Texas Water Development Fund II (DFund II). According to the CPA, the state of the fund has remained unchanged since that time and funding would need to be deposited to the credit of the fund in order for it to be re-activated. Local Government ImpactThe fiscal implications of the bill cannot be determined at this time. The bill could have a positive fiscal impact on political subdivisions that receive grants for projects eligible under this new program. However, the amount and timing of such grant applications and financial assistance is unknown. Source Agencies: b > td > 304 Comptroller of Public Accounts, 580 Water Development Board LBB Staff: b > td > JMc, TUf, MW, AJL, CMA LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION Revision 1 April 10, 2025 Revision 1 Revision 1 TO: Honorable Cody Harris, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2091 by Martinez (Relating to the provision of financial assistance by the Texas Water Development Board for certain projects.), As Introduced TO: Honorable Cody Harris, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2091 by Martinez (Relating to the provision of financial assistance by the Texas Water Development Board for certain projects.), As Introduced Honorable Cody Harris, Chair, House Committee on Natural Resources Honorable Cody Harris, Chair, House Committee on Natural Resources Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB2091 by Martinez (Relating to the provision of financial assistance by the Texas Water Development Board for certain projects.), As Introduced HB2091 by Martinez (Relating to the provision of financial assistance by the Texas Water Development Board for certain projects.), As Introduced The fiscal implications of the bill cannot be determined because the amount and timing of funding applications and grant expenditures for eligible projects from the Water Supply Account (WSA) within the Texas Water Development Fund (DFund) are unknown at this time.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The fiscal implications of the bill cannot be determined because the amount and timing of funding applications and grant expenditures for eligible projects from the Water Supply Account (WSA) within the Texas Water Development Fund (DFund) are unknown at this time.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Water Code related to the WSA within the DFund. DFund is a fund in the Treasury that is administered by the Texas Water Development Board (TWDB) with constitutional appropriation authority.The bill would add grants to the forms of financial assistance that can be issued from the WSA, and allows the TWDB to establish a grant program administered from the WSA. The bill would permit grants to political subdivisions for projects relating to the construction, acquisition, or improvement of water supply projects, including projects that contain a flood control component. The bill would require TWDB to adopt rules establishing eligibility requirements for these grants and adds certain criteria that entities may not be disqualified from receiving a grant for.The Comptroller of Public Accounts (CPA) reports that the DFund was inactivated in 2012 when all of its balances and debt were shifted to the the Texas Water Development Fund II (DFund II). According to the CPA, the state of the fund has remained unchanged since that time and funding would need to be deposited to the credit of the fund in order for it to be re-activated. The bill would add grants to the forms of financial assistance that can be issued from the WSA, and allows the TWDB to establish a grant program administered from the WSA. The bill would permit grants to political subdivisions for projects relating to the construction, acquisition, or improvement of water supply projects, including projects that contain a flood control component. The bill would require TWDB to adopt rules establishing eligibility requirements for these grants and adds certain criteria that entities may not be disqualified from receiving a grant for. The Comptroller of Public Accounts (CPA) reports that the DFund was inactivated in 2012 when all of its balances and debt were shifted to the the Texas Water Development Fund II (DFund II). According to the CPA, the state of the fund has remained unchanged since that time and funding would need to be deposited to the credit of the fund in order for it to be re-activated. Local Government Impact The fiscal implications of the bill cannot be determined at this time. The bill could have a positive fiscal impact on political subdivisions that receive grants for projects eligible under this new program. However, the amount and timing of such grant applications and financial assistance is unknown. Source Agencies: b > td > 304 Comptroller of Public Accounts, 580 Water Development Board 304 Comptroller of Public Accounts, 580 Water Development Board LBB Staff: b > td > JMc, TUf, MW, AJL, CMA JMc, TUf, MW, AJL, CMA