LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 15, 2025 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1413 by Nichols (relating to the procedure for a mending or revoking certificates of public convenience and necessity issued to certain water utilities.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1413, Committee Report 1st House, Substituted: a negative impact of ($1,756,344) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the 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($878,172)2027($878,172)2028($878,172)2029($878,172)2030($878,172)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($878,172)6.02027($878,172)6.02028($878,172)6.02029($878,172)6.02030($878,172)6.0 Fiscal AnalysisThis bill would amend the Water Code to allow additional eligible counties to petition for a streamlined expedited release (SER) from a Certificate of Convenience and Necessity (CCN) holder. Additionally, the bill would allow landowners the ability to pay the CCN holder the amount necessary to diffuse federal debt under a federal loan program.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 15, 2025
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1413 by Nichols (relating to the procedure for a mending or revoking certificates of public convenience and necessity issued to certain water utilities.), Committee Report 1st House, Substituted
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1413 by Nichols (relating to the procedure for a mending or revoking certificates of public convenience and necessity issued to certain water utilities.), Committee Report 1st House, Substituted
Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1413 by Nichols (relating to the procedure for a mending or revoking certificates of public convenience and necessity issued to certain water utilities.), Committee Report 1st House, Substituted
SB1413 by Nichols (relating to the procedure for a mending or revoking certificates of public convenience and necessity issued to certain water utilities.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB1413, Committee Report 1st House, Substituted: a negative impact of ($1,756,344) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the 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 SB1413, Committee Report 1st House, Substituted: a negative impact of ($1,756,344) through the biennium ending August 31, 2027. 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 make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 ($878,172)
2027 ($878,172)
2028 ($878,172)
2029 ($878,172)
2030 ($878,172)
All Funds, Five-Year Impact:
2026 ($878,172) 6.0
2027 ($878,172) 6.0
2028 ($878,172) 6.0
2029 ($878,172) 6.0
2030 ($878,172) 6.0
Fiscal Analysis
This bill would amend the Water Code to allow additional eligible counties to petition for a streamlined expedited release (SER) from a Certificate of Convenience and Necessity (CCN) holder. Additionally, the bill would allow landowners the ability to pay the CCN holder the amount necessary to diffuse federal debt under a federal loan program.
Methodology
Based on the analysis of the Public Utility Commission of Texas (PUC), the bill would add an additional 41 counties that would be eligible for streamlined expedited release which increases the total from 33 to 74 eligible counties. This would increase the amount of streamlined expedited release applications submitted to PUC. This estimate assumes the agency would require 6.0 additional full time equivalents (FTE) positions to meet this increased application volume. Two Attorney III-IV ($115,500 per year with estimated benefits of $32,825) would be needed to process SER applications, two Engineers III-IV ($115,500 per year with estimated benefits of $32,825) would be needed for expertise on water and sewer services and two Geographic Information Specialist III-IV ($99,000 per year with estimated benefits of $28,136) would be needed for water and sewer line mapping. Other associated costs include $14,400 per year for payroll contributions, travel and other operating expenses.
Technology
PUC anticipates information technology expenditures of $14,400 per year.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 473 Public Utility Commission of Texas
473 Public Utility Commission of Texas
LBB Staff: b > td > JMc, FV, JBel, GDZ
JMc, FV, JBel, GDZ