H.B. No. 2605
1-1 AN ACT
1-2 relating to collection and use of fees by, and management of the
1-3 funds of, the water commission; making an appropriation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5.235, Water Code, is amended to read as
1-6 follows:
1-7 Sec. 5.235. Fees. (a) The executive director shall charge
1-8 and collect the fees prescribed by law <this section>. The
1-9 executive director shall make a record of fees prescribed when due
1-10 and shall render an account to the person charged with the fees.
1-11 Each fee is a separate charge and is in addition to other fees
1-12 unless provided otherwise.
1-13 (1) Notwithstanding other provisions, the commission
1-14 by rule may establish due dates, schedules, and procedures for
1-15 assessment, collection, and remittance of fees due the commission
1-16 to ensure the cost-effective administration of revenue collection
1-17 and cash management programs.
1-18 (2) Notwithstanding other provisions, the commission
1-19 by rule shall establish uniform and consistent requirements for the
1-20 assessment of penalties and interest for late payment of fees owed
1-21 the state under the commission's jurisdiction. Penalties and
1-22 interest established under this section shall not exceed rates
1-23 established for delinquent taxes under Sections 111.060 and
2-1 111.061, Tax Code.
2-2 (b) Except as specifically provided by this section, the fee
2-3 for filing an application or petition is $100 plus the cost of any
2-4 required notice. The fee for a by-pass permit shall be set by the
2-5 commission at a reasonable amount to recover costs, but not less
2-6 than $100.
2-7 (c) The fee for filing a water permit application is $100
2-8 plus the cost of required notice.
2-9 (d) The fee for filing an application for fixing or
2-10 adjusting rates is $100 plus the cost of required notice.
2-11 (e) A person who files with the commission a petition for
2-12 the creation of a water district or addition of sewage and drainage
2-13 powers or a resolution for a water district conversion must pay a
2-14 one-time nonrefundable application fee. The commission by rule may
2-15 set the application fee in an amount not to exceed the costs of
2-16 reviewing and processing the application <$700>, plus the cost of
2-17 required notice. This fee is the only fee that the commission may
2-18 charge with regard to the processing of an application for creation
2-19 of a water district, addition of sewage or drainage powers, or
2-20 conversion under this code.
2-21 (f) A person who files a bond issue application with the
2-22 commission must pay an application fee set by the commission. The
2-23 commission by rule may set the application fee in an amount not to
2-24 exceed the costs of reviewing and processing the application
2-25 <$500>, plus the cost of required notice. If the bonds are
3-1 approved by the commission, the seller shall pay to the commission
3-2 a percentage of the bond proceeds not later than the seventh
3-3 business day after receipt of the bond proceeds. The commission by
3-4 rule may set the percentage of the proceeds in an amount not to
3-5 exceed 0.25 percent of the principal amount of the bonds actually
3-6 issued. Revenue from these fees and application fees under
3-7 Subsection (e) of this section shall be deposited in the state
3-8 treasury and credited to the water utility <quality> fund.
3-9 Proceeds of the fees shall be used to supplement any other funds
3-10 available for paying expenses of the commission in supervising the
3-11 various bond and construction activities of the districts filing
3-12 the applications.
3-13 (g) The fee for recording an instrument in the office of the
3-14 commission is $1.25 per page.
3-15 (h) The fee for the use of water for irrigation is 50 cents
3-16 per acre to be irrigated.
3-17 (i) The fee for impounding water, except under Section
3-18 11.142 of this code, is 50 cents per acre-foot of storage, based on
3-19 the total holding capacity of the reservoir at normal operating
3-20 level.
3-21 (j) The fee for other uses of water not specifically named
3-22 in this section is $1 per acre-foot, except that no political
3-23 subdivision may be required to pay fees to use water for recharge
3-24 of underground freshwater-bearing sands and aquifers or for
3-25 abatement of natural pollution.
4-1 (k) A fee charged under Subsections (h) through (j) of this
4-2 section for one use of water under a permit from the commission may
4-3 not exceed $50,000 <$25,000>. The fee for each additional use of
4-4 water under a permit for which the maximum fee is paid may not
4-5 exceed $10,000 <$5,000>.
4-6 (l) The fees prescribed by Subsections (h) through (j) of
4-7 this section are one-time fees, payable when the application for an
4-8 appropriation is made. However, if the total fee for a permit
4-9 exceeds $1,000, the applicant shall pay one-half <one-tenth> of the
4-10 fee when the application is filed and one-half<, one-tenth> within
4-11 180 <30> days after notice is mailed to him that the permit is
4-12 granted<, and the balance before he begins to use water under the
4-13 permit>. If the applicant does not pay all of the amount owed
4-14 before beginning to use water under the permit, the permit is
4-15 annulled.
4-16 (m) If a permit is annulled, the matter reverts to the
4-17 status of a pending, filed application and, on the payment of use
4-18 fees as provided by Subsections (h) through (l) of this section
4-19 <subsection> together with sufficient postage fees for mailing
4-20 notice of hearing, the commission shall set the application for
4-21 hearing and proceed as provided by this code.
4-22 (n)(1) Each provider of potable water or sewer utility
4-23 service shall collect a regulatory assessment from each retail
4-24 customer as follows:
4-25 (A) A public utility as defined in Section
5-1 13.002 of this code shall collect from each retail customer a
5-2 regulatory assessment equal to one percent of the charge for retail
5-3 water or sewer service.
5-4 (B) A water supply or sewer service corporation
5-5 as defined in Section 13.002 of this code shall collect from each
5-6 retail customer a regulatory assessment equal to one-half of one
5-7 percent of the charge for retail water or sewer service.
5-8 (C) A district as defined in Section 50.001 of
5-9 this code that provides potable water or sewer utility service to
5-10 retail customers shall collect from each retail customer a
5-11 regulatory assessment equal to one-half of one percent of the
5-12 charge for retail water or sewer service.
5-13 (2) The regulatory assessment may be listed on the
5-14 customer's bill as a separate item and shall be collected in
5-15 addition to other charges for utility services.
5-16 (3) The commission shall use the assessments collected
5-17 under this subsection <from districts> solely to pay costs and
5-18 expenses incurred by the commission in the regulation of districts,
5-19 water supply or sewer service corporations, and public utilities
5-20 under Chapter 13, Water Code.
5-21 <(4) The commission shall use the assessments
5-22 collected from water supply or sewer service corporations solely to
5-23 pay costs and expenses incurred by the commission in the regulation
5-24 of water supply or sewer service corporations.>
5-25 <(5) The commission shall use the assessments
6-1 collected from public utilities solely to pay costs and expenses
6-2 incurred by the commission in the regulation of public utilities.>
6-3 (4) <(6)> The commission shall annually use a portion
6-4 of the assessments to provide on-site technical assistance and
6-5 training to public utilities, water supply or sewer service
6-6 corporations, and districts. The commission shall contract with
6-7 others to provide the services.
6-8 (5) <(7)> The commission by rule may establish due
6-9 dates, collection procedures, and penalties for late payment
6-10 related to regulatory assessments under this subsection <Except as
6-11 provided by Paragraph (A) of this subdivision, assessments
6-12 collected from retail customers for the prior 12 months are due on
6-13 January 15 of each year>. The executive director shall collect all
6-14 assessments from the utility service providers, and those funds
6-15 shall be paid into the state treasury and credited to the water
6-16 utility fund.
6-17 <(A) A utility service provider may make
6-18 quarterly payments due on January 15, April 15, July 15, and
6-19 October 15 of each year. If payments are made quarterly and
6-20 received by the commission not later than the 30th day after the
6-21 due date, the utility service provider may retain an administrative
6-22 fee equal to 10 percent of the amount due for costs incurred in
6-23 collecting and remitting the assessment.>
6-24 <(B) The commission shall assess on a utility
6-25 service provider a penalty equal to 10 percent of the amount due
7-1 for any payment received after January 31. Funds delinquent for
7-2 more than 30 days shall draw interest at the rate of 10 percent a
7-3 year on the assessment and penalty due.>
7-4 (6) <(C)> The commission shall assess a penalty
7-5 against a municipality with a population of more than 1.5 million
7-6 that does not provide municipal water and sewer services in an
7-7 annexed area on or before 4-1/2 years after the annexation takes
7-8 effect in accordance with Section 43.056, Local Government Code. A
7-9 penalty assessed under this paragraph shall be not more than $1,000
7-10 for each day the services are not provided after 4-1/2 years after
7-11 the annexation. A penalty collected under this paragraph shall be
7-12 deposited into the water utility <a special> fund in the state
7-13 treasury to be used to provide water and sewer service to residents
7-14 of the city.
7-15 (7) <(8)> The regulatory assessment does not apply to
7-16 water that has not been treated for the purpose of human
7-17 consumption.
7-18 SECTION 2. Subchapter F, Chapter 5, Water Code, is amended
7-19 by adding Section 5.237 to read as follows:
7-20 Sec. 5.237. OPERATING FUND. (a) The Texas Natural Resource
7-21 Conservation Commission Operating Fund is established in the
7-22 treasury. At the request of the commission, the comptroller is
7-23 authorized to transfer to an account in the operating fund any
7-24 appropriations made to the commission for the purpose of making
7-25 expenditures. After expenditures have been made from the operating
8-1 fund and proper line-item appropriations identified, the commission
8-2 shall submit periodic adjustments to the comptroller in summary
8-3 amounts to record accurate cost allocations to the appropriate
8-4 funds and accounts. Periodic adjustments under this section shall
8-5 be made at least quarterly.
8-6 (b) The commission will establish and maintain accounting
8-7 records adequate to support the periodic reconciliation of
8-8 operating fund transfers and document expenditures from each fund
8-9 or account. All expenditures shall be made consistent with
8-10 provisions of law relating to the authorized use of each fund or
8-11 account from which appropriations are made to the commission.
8-12 SECTION 3. Section 26.265, Water Code, is amended to read as
8-13 follows:
8-14 Sec. 26.265. Texas Spill Response Fund. (a) There is
8-15 hereby created the Texas Spill Response Fund. This fund shall not
8-16 exceed $5 million, exclusive of fines and penalties received under
8-17 this subchapter.
8-18 (b) The fund shall consist of money appropriated to it by
8-19 the legislature and any fines, civil penalties, or other
8-20 reimbursement to the fund provided for under this subchapter.
8-21 (c) The <executive director with the approval of the>
8-22 commission may expend money in the fund only for the purposes
8-23 <purpose> of:
8-24 (1) response to and investigation of spills and
8-25 discharges;
9-1 (2) obtaining personnel, equipment, and supplies
9-2 required in the cleanup of discharges and spills; and<, including>
9-3 (3) the assessment of damages to and the restoration
9-4 of land and aquatic resources held in trust or owned by the state.
9-5 (d) In addition to any cause of action under Chapter 40,
9-6 Natural Resources Code, the state has a cause of action against any
9-7 responsible person for recovery of:
9-8 (1) expenditures out of the fund; and
9-9 (2) costs that would have been incurred or paid by the
9-10 responsible person if the responsible person had fully carried out
9-11 the duties under Section 26.266 of this code, including:
9-12 (A) reasonable costs of reasonable and necessary
9-13 scientific studies to determine impacts of the spill on the
9-14 environment and natural resources and to determine the manner in
9-15 which to respond to spill impacts;
9-16 (B) costs of attorney services;
9-17 (C) out-of-pocket costs associated with state
9-18 agency action;
9-19 (D) reasonable costs incurred by the state in
9-20 cleanup operations, including costs of personnel, equipment, and
9-21 supplies and restoration of land and aquatic resources held in
9-22 trust or owned by the state; and
9-23 (E) costs of remediating injuries proximately
9-24 caused by reasonable cleanup activities.
9-25 (e) The state's right to recover under Subsection (d) of
10-1 this section arises whether or not expenditures have actually been
10-2 made out of the fund.
10-3 (f) It is the intent of the legislature that the state
10-4 attempt to recover the costs of cleanup according to the following
10-5 priority:
10-6 (1) a responsible person; and
10-7 (2) the federal government to the extent that recovery
10-8 from a responsible person is insufficient to pay the costs of
10-9 cleanup.
10-10 (g) In a suit brought under Subsection (d) of this section,
10-11 any responsible person who, after reasonable notice has been given
10-12 by the executive director, has failed, after a reasonable period,
10-13 to carry out his duties under Section 26.266 of this code is liable
10-14 to the state for twice the costs incurred by the state under this
10-15 subchapter in cleaning up the spill or discharge. Reasonable
10-16 notice under this subsection must include a statement as to the
10-17 basis for finding the person to whom notice is sent to be a
10-18 responsible person. Any responsible person held liable under this
10-19 subsection or Subsection (d) of this section has the right to
10-20 recover indemnity or contribution from any third party who caused,
10-21 suffered, allowed, or permitted the spill or discharge. Liability
10-22 arising under this subsection or Subsection (d) of this section
10-23 does not affect any rights the responsible person has against a
10-24 third party whose acts caused or contributed to the spill or
10-25 discharge.
11-1 SECTION 4. Subsection (h), Section 26.0135, Water Code, is
11-2 amended to read as follows:
11-3 (h) The commission <Texas Water Commission> shall apportion,
11-4 assess, and recover the reasonable costs of administering water
11-5 quality management programs under this section from all users of
11-6 water and wastewater permit holders in the watershed according to
11-7 the records of the commission generally in proportion to their
11-8 right, through permit or contract, to use water from and discharge
11-9 wastewater in the watershed. The costs to river authorities and
11-10 others to conduct regional water quality assessment shall be
11-11 subject to prior review and approval by the commission as to
11-12 methods of allocation and total amount to be recovered. The
11-13 commission shall adopt rules to supervise and implement the water
11-14 quality assessment and associated costs. The rules shall ensure
11-15 that water users and wastewater dischargers do not pay excessive
11-16 amounts, that a river authority may recover no more than the actual
11-17 costs of administering the water quality management programs called
11-18 for in this section, and that no municipality shall be assessed
11-19 cost for any efforts that duplicate water quality management
11-20 activities described in Section 26.177 of this chapter. Costs
11-21 recovered by the commission are to be deposited to the water
11-22 quality fund and are appropriated to the commission for the
11-23 administration of this section and the implementation of regional
11-24 water quality assessments.
11-25 SECTION 5. Subsection (c), Section 26.0291, Water Code, is
12-1 amended to read as follows:
12-2 (c) The fees collected under this section shall be deposited
12-3 in a special fund in the state treasury to be known as the water
12-4 quality <waste treatment facility inspection> fund. Money in the
12-5 fund shall be used as follows:
12-6 (1) to supplement any other funds available for paying
12-7 expenses of the commission in inspecting waste treatment
12-8 facilities;
12-9 (2) to pay for the issuance and renewal of
12-10 certificates of competency under and to administer Section 26.0301
12-11 of this code;
12-12 (3) to pay for processing plans or amendments to plans
12-13 and inspecting the construction of projects under those plans
12-14 pursuant to Section 26.0461 of this code and rules of the
12-15 commission adopted under Sections 26.046 and 26.0461 of this code;
12-16 and
12-17 (4) to pay for any expenses of the commission
12-18 necessary to obtain and administer the NPDES program in lieu of the
12-19 federal government.
12-20 SECTION 6. Subsection (e), Section 26.0301, Water Code, is
12-21 amended to read as follows:
12-22 (e) The commission by rule shall set a fee to be paid by
12-23 each applicant or licensee on the issuance or renewal of a
12-24 certificate of competency under this section. The amount of the
12-25 fee is determined according to the costs of the commission in
13-1 administering this section, but may not exceed $25 annually for an
13-2 individual wastewater treatment plant operator and $500 annually
13-3 for a person, company, corporation, firm, or partnership that is in
13-4 the business as a wastewater treatment facility operations company.
13-5 The commission shall deposit any fees collected under this
13-6 subsection in the state treasury to the credit of the water quality
13-7 <waste treatment facility inspection> fund.
13-8 SECTION 7. Subsection (h), Section 26.0461, Water Code, is
13-9 amended to read as follows:
13-10 (h) A fee collected under this section shall be deposited in
13-11 the State Treasury to the credit of the water quality <waste
13-12 treatment facility inspection> fund.
13-13 SECTION 8. Sections 370.007 and 370.008, Health and Safety
13-14 Code, are amended to read as follows:
13-15 Sec. 370.007. Toxic Chemical Release Reporting FUNDS <FUND>.
13-16 (a) Toxic <The toxic> chemical release reporting funds consist
13-17 <fund consists> of money collected by the commission from:
13-18 (1) fees imposed on owners and operators of facilities
13-19 required to submit a toxic chemical release form; and
13-20 (2) penalties imposed under this chapter.
13-21 (b) The commission may use the money collected under this
13-22 chapter <and deposited in the fund> to pay for:
13-23 (1) costs incurred by the commission in implementing
13-24 this chapter; and
13-25 (2) other commission activities necessary to implement
14-1 the Emergency Planning and Community Right-to-Know Act of 1986 (42
14-2 U.S.C. Section 11001 et seq.).
14-3 Sec. 370.008. Disposition of <Toxic Chemical Release Form
14-4 Reporting> FEES. (a) The owner or operator of a facility required
14-5 to submit a toxic chemical release form under this chapter shall
14-6 pay, at the time of submission, a fee of $25 for each toxic
14-7 chemical release form submitted.
14-8 (b) The maximum fee for a facility may not exceed $250.
14-9 (c) The commission by rule may increase or decrease the
14-10 toxic chemical release form reporting fee as necessary.
14-11 (d) Fees collected under this section shall be deposited in
14-12 the state treasury to the credit of the hazardous and solid waste
14-13 fee <toxic chemical release reporting> fund.
14-14 SECTION 9. The following funds and accounts, and revenues
14-15 authorized to be deposited to these funds and accounts, are exempt
14-16 from the provisions of Subsection (h), Section 403.094, Government
14-17 Code. Except as amended by this Act, these funds and accounts are
14-18 dedicated to the purposes for which they were established under the
14-19 applicable provisions of law. The comptroller may, with the
14-20 concurrence of the treasurer, establish any of the following funds
14-21 as dedicated accounts in the general revenue fund, provided that
14-22 such accounts maintain any attributes authorized under provisions
14-23 of law:
14-24 (1) solid waste disposal fee fund authorized under
14-25 Sections 361.013 and 361.014, Health and Safety Code;
15-1 (2) waste tire recycling fund authorized under
15-2 Sections 361.474 and 361.475, Health and Safety Code;
15-3 (3) water well drillers fund authorized under Sections
15-4 32.014 and 33.012, Water Code;
15-5 (4) used oil recycling fund authorized under Section
15-6 371.061, Health and Safety Code;
15-7 (5) clean air fund authorized under Section 382.0622,
15-8 Health and Safety Code;
15-9 (6) water quality fund authorized under Section
15-10 5.235(f), Water Code, and Sections 26.0291, 26.0301 and 26.0461,
15-11 Water Code, as amended by this Act;
15-12 (7) water rights administration fund authorized under
15-13 Section 12.113, Water Code;
15-14 (8) water utility fund authorized under Section 5.235,
15-15 Water Code;
15-16 (9) spill response fund authorized under Section
15-17 26.265, Water Code;
15-18 (10) Texas irrigators fund authorized under Section
15-19 34.005, Water Code;
15-20 (11) hazardous and solid waste fees fund authorized
15-21 under Sections 361.132 and 370.008, Health and Safety Code, as
15-22 amended by this Act;
15-23 (12) hazardous and solid waste remediation fee fund
15-24 authorized under Section 361.133, Health and Safety Code;
15-25 (13) storage tank fund authorized under Section
16-1 26.358, Water Code, and Section 8, Article 8900, V.A.C.S.; and
16-2 (14) petroleum storage tank remediation fund
16-3 authorized under Section 26.3573, Water Code.
16-4 SECTION 10. The funds and accounts described in Section 9 of
16-5 this Act are further exempt from any provision of Subsection (b),
16-6 Section 403.095, Government Code, that would authorize the
16-7 expenditure or transfer of dedicated revenues inconsistent with
16-8 Section 9 of this Act. Nothing in this section shall otherwise
16-9 limit the authority of the legislature to appropriate funds from
16-10 any fund or account.
16-11 SECTION 11. The waste treatment facility inspection fund and
16-12 the toxic chemical release reporting fund are abolished effective
16-13 September 1, 1993.
16-14 SECTION 12. The comptroller shall establish the operating
16-15 fund authorized under Section 2 of this Act effective September 1,
16-16 1993.
16-17 SECTION 13. No assessment created under this Act, or
16-18 increase in an existing assessment authorized under this Act, will
16-19 be collected prior to September 1, 1993.
16-20 SECTION 14. The importance of this legislation and the
16-21 crowded condition of the calendars in both houses create an
16-22 emergency and an imperative public necessity that the
16-23 constitutional rule requiring bills to be read on three several
16-24 days in each house be suspended, and this rule is hereby suspended,
16-25 and that this Act take effect and be in force from and after its
17-1 passage, and it is so enacted.