LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 23, 2025 TO: Honorable Cody Harris, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5219 by Martinez (Relating to an interim study on water resources development in certain counties.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB5219, As Introduced: a negative impact of ($14,181,952) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide a legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($14,181,952)2027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund12026($14,181,952)2027$02028$02029$02030$0 Fiscal AnalysisThe bill would direct the Texas Water Development Board (TWDB) develop and publish a report by September 1, 2026, regarding water resources development in counties located in Region M of the state regional water planning groups (Rio Grande region). The bill would require the report to meet specific criteria and evaluate data regarding current and projected groundwater production and to assess the effects of that production on groundwater conditions.The bill would expire September 1, 2027.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 23, 2025
TO: Honorable Cody Harris, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5219 by Martinez (Relating to an interim study on water resources development in certain counties.), As Introduced
TO: Honorable Cody Harris, Chair, House Committee on Natural Resources
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5219 by Martinez (Relating to an interim study on water resources development in certain counties.), 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
HB5219 by Martinez (Relating to an interim study on water resources development in certain counties.), As Introduced
HB5219 by Martinez (Relating to an interim study on water resources development in certain counties.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB5219, As Introduced: a negative impact of ($14,181,952) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide a legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB5219, As Introduced: a negative impact of ($14,181,952) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide a legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide a legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($14,181,952)
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($14,181,952)
2027 $0
2028 $0
2029 $0
2030 $0
Fiscal Analysis
The bill would direct the Texas Water Development Board (TWDB) develop and publish a report by September 1, 2026, regarding water resources development in counties located in Region M of the state regional water planning groups (Rio Grande region). The bill would require the report to meet specific criteria and evaluate data regarding current and projected groundwater production and to assess the effects of that production on groundwater conditions.The bill would expire September 1, 2027.
The bill would expire September 1, 2027.
Methodology
The table above reflects one-time General Revenue Fund costs needed to implement the provisions of the bill based on the analysis and information provided by TWDB. According to TWDB, the cost analysis is based on the agency's experience gathering and analyzing data, developing and implementing models, completing reports, and developing visual representations and interactive tools. Costs associated with contractors would be necessary for completing work outside of the scope of agency employees. This analysis assumes all costs would occur in fiscal year 2026 due to the deadline for the report being September 1, 2026.Based on information provided by TWDB, this analysis assumes that the provisions of the bill directing TWDB as part of the report to, identify, prevent, and mitigate potential fraudulent transactions or inefficiencies in financial and contractual processes associated with water infrastructure, permitting, and management, would require TWDB to contract with forensic accounting services to implement at a total cost of $14,181,952, including $741,952 for additional contracted personnel. According to TWDB, the contracted entity would need to conduct a forensic review and audit the 224 water systems contained within Region M at an estimated cost of $60,000 per audit in addition to other services to complete all other evaluations and requirements of the report.
The table above reflects one-time General Revenue Fund costs needed to implement the provisions of the bill based on the analysis and information provided by TWDB. According to TWDB, the cost analysis is based on the agency's experience gathering and analyzing data, developing and implementing models, completing reports, and developing visual representations and interactive tools. Costs associated with contractors would be necessary for completing work outside of the scope of agency employees. This analysis assumes all costs would occur in fiscal year 2026 due to the deadline for the report being September 1, 2026.
Based on information provided by TWDB, this analysis assumes that the provisions of the bill directing TWDB as part of the report to, identify, prevent, and mitigate potential fraudulent transactions or inefficiencies in financial and contractual processes associated with water infrastructure, permitting, and management, would require TWDB to contract with forensic accounting services to implement at a total cost of $14,181,952, including $741,952 for additional contracted personnel. According to TWDB, the contracted entity would need to conduct a forensic review and audit the 224 water systems contained within Region M at an estimated cost of $60,000 per audit in addition to other services to complete all other evaluations and requirements of the report.
Based on information provided by TWDB, this analysis assumes that the provisions of the bill directing TWDB as part of the report to, identify, prevent, and mitigate potential fraudulent transactions or inefficiencies in financial and contractual processes associated with water infrastructure, permitting, and management, would require TWDB to contract with forensic accounting services to implement at a total cost of $14,181,952, including $741,952 for additional contracted personnel. According to TWDB, the contracted entity would need to conduct a forensic review and audit the 224 water systems contained within Region M at an estimated cost of $60,000 per audit in addition to other services to complete all other evaluations and requirements of the report.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 580 Water Development Board
580 Water Development Board
LBB Staff: b > td > JMc, TUf, MW, AJL
JMc, TUf, MW, AJL