By Alexander H.B. No. 2605
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to administration and collection of fees, recovery of
1-3 costs and operating fund.
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 to
1-16 ensure the cost-effective administration of revenue collection and
1-17 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 111.060-111.061,
2-1 Tax Code.
2-2 (b) Except as otherwise <specifically> provided by law<by
2-3 this section>, the commission may collect a fee from a person who
2-4 receives a service from the commission. For the purpose of this
2-5 section, such services may include, but are not limited to, the
2-6 publication of public notice and the review and processing of
2-7 applications, petitions, registrations, certifications or other
2-8 forms of approval received from the commission or the performance
2-9 of related technical or administrative services <fee for filing an
2-10 application or petition is $100 plus the cost of any required
2-11 notice. The fee for a by-pass permit shall be set by the agency at
2-12 a reasonable amount to recover costs, but not less than $100>.
2-13 (c) A fee under this section shall be set by rule of the
2-14 commission and may not exceed the demonstrable costs of the
2-15 commission in providing the service rendered <The fee for filing a
2-16 water permit application is $100 plus the cost of required notice>.
2-17 (d) Except as otherwise provided by law, a fee assessed
2-18 under this section shall be deposited to the Texas Natural Resource
2-19 Conservation Commission Operating Fund and is appropriated to the
2-20 commission for the purpose of recovery of costs of services
2-21 provided by the commission. The commission shall maintain records
2-22 of income and expense to ensure that fees are expended for the
2-23 purposes intended under this section and demonstrate the costs
2-24 recovered <The fee for filing an application for fixing or
2-25 adjusting rates is $100 plus the cost of required notice>.
3-1 (e) A person who files with the commission a petition for
3-2 the creation of a water district or addition of sewage and drainage
3-3 powers or a resolution for a water district conversion must pay a
3-4 one-time nonrefundable application fee. The commission by rule may
3-5 set the application fee in an amount not to exceed the costs of
3-6 reviewing and processing the application <$700>, plus the cost of
3-7 required notice. This fee is the only fee that the commission may
3-8 charge with regard to the processing of an application for creation
3-9 of a water district, addition of sewage or drainage powers, or
3-10 conversion under this code.
3-11 (f) A person who files a bond issue application with the
3-12 commission must pay an application fee set by the commission. The
3-13 commission by rule may set the application fee in an amount not to
3-14 exceed the costs of reviewing and processing the application
3-15 <$500>, plus the cost of required notice. If the bonds are
3-16 approved by the commission, the seller shall pay to the commission
3-17 a percentage of the bond proceeds not later than the seventh
3-18 business day after receipt of the bond proceeds. The commission by
3-19 rule may set the percentage of the proceeds in an amount not to
3-20 exceed 0.25 percent of the principal amount of the bonds actually
3-21 issued. Revenue from these fees and application fees under
3-22 subsection (e) of this section shall be deposited in the state
3-23 treasury and credited to the water utility <quality> fund.
3-24 Proceeds of the fees shall be used to supplement any other funds
3-25 available for paying expenses of the commission in supervising the
4-1 various bond and construction activities of the districts filing
4-2 the applications.
4-3 (g) The fee for recording an instrument in the office of the
4-4 commission is $1.25 per page.
4-5 (h) The fee for the use of water for irrigation is 50 cents
4-6 per acre to be irrigated.
4-7 (i) The fee for impounding water, except under Section
4-8 11.142 of this code, is 50 cents per acre-foot of storage, based on
4-9 the total holding capacity of the reservoir at normal operating
4-10 level.
4-11 (j) The fee for other uses of water not specifically named
4-12 in this section is $1 per acre-foot, except that no political
4-13 subdivision may be required to pay fees to use water for recharge
4-14 of underground freshwater-bearing sands and aquifers or for
4-15 abatement of natural pollution.
4-16 (k) A fee charged under Subsections (h) through (j) of this
4-17 section for one use of water under a permit from the commission may
4-18 not exceed $50,000 <$25,000>. The fee for each additional use of
4-19 water under a permit for which the maximum fee is paid may not
4-20 exceed $10,000 <$5,000>.
4-21 (l) The fees prescribed by Subsections (h) through (j) of
4-22 this section are one-time fees, payable when the application for an
4-23 appropriation is made. However, if the total fee for a permit
4-24 exceeds $1,000, the applicant shall pay one-half <one-tenth> of the
4-25 fee when the application is filed and one-half <,one-tenth> within
5-1 180 days after notice is mailed to him that the permit is granted<,
5-2 and the balance before he begins to use water under the permit>.
5-3 If the applicant does not pay all of the amount owed before
5-4 beginning to use water under the permit, the permit is annulled.
5-5 (m) If a permit is annulled, the matter reverts to the
5-6 status of a pending, filed application and, on the payment of use
5-7 fees as provided by Subsections (h) through (l) of this section
5-8 <subsection> together with sufficient postage fees for mailing
5-9 notice of hearing, the commission shall set the application for
5-10 hearing and proceed as provided by this code.
5-11 (n)(1) Each provider of potable water or sewer utility
5-12 service shall collect a regulatory assessment from each retail
5-13 customer as follows:
5-14 (A) A public utility as defined in Section
5-15 13.002 of this code shall collect from each retail customer a
5-16 regulatory assessment equal to one percent of the charge for retail
5-17 water or sewer service.
5-18 (B) A water supply or sewer service corporation
5-19 as defined in Section 13.002 of this code shall collect from each
5-20 retail customer a regulatory assessment equal to one-half of one
5-21 percent of the charge for retail water or sewer service.
5-22 (C) A district as defined in Section 50.001 of
5-23 this code that provides potable water or sewer utility service to
5-24 retail customers shall collect from each retail customer a
5-25 regulatory assessment equal to one-half of one percent of the
6-1 charge for retail water or sewer service.
6-2 (2) The regulatory assessment may be listed on the
6-3 customer's bill as a separate item and shall be collected in
6-4 addition to other charges for utility services.
6-5 (3) The commission shall use the assessments collected
6-6 under this subsection <from districts> solely to pay costs and
6-7 expenses incurred by the commission in the regulation of districts,
6-8 water supply or sewer service corporations and public utilities
6-9 under Chapter 13, Water Code.
6-10 <(4) The commission shall use the assessments
6-11 collected from water supply or sewer service corporations solely to
6-12 pay costs and expenses incurred by the commission in the regulation
6-13 of water supply or sewer service corporations.>
6-14 <(5) The commission shall use the assessments
6-15 collected from public utilities solely to pay costs and expenses
6-16 incurred by the commission in the regulation of public utilities.>
6-17 (4) <(6)> The commission shall annually use a portion
6-18 of the assessments to provide on-site technical assistance and
6-19 training to public utilities, water supply or sewer service
6-20 corporations, and districts. The commission may <shall> contract
6-21 with others to provide the services.
6-22 (5) <(7)> The commission by rule may establish due
6-23 dates, collection procedures and penalties for late payment related
6-24 to regulatory assessments under this subsection <Except as provided
6-25 by Paragraph (A) of this subdivision, assessments collected from
7-1 retail customers for the prior 12 months are due on January 15 of
7-2 each year>. The executive director shall collect all assessments
7-3 from the utility service providers, and those funds shall be paid
7-4 into the state treasury and credited to the water utility fund.
7-5 <(A) A utility service provider may make
7-6 quarterly payments due on January 15, April 15, July 15, and
7-7 October 15 of each year. If payments are made quarterly and
7-8 received by the commission not later than the 30th day after the
7-9 due date, the utility service provider may retain an administrative
7-10 fee equal to 10 percent of the amount due for costs incurred in
7-11 collecting and remitting the assessment.>
7-12 <(B) The commission shall assess on a utility
7-13 service provider a penalty equal to 10 percent of the amount due
7-14 for any payment received after January 31. Funds delinquent for
7-15 more than 30 days shall draw interest at the rate of 10 percent a
7-16 year on the assessment and penalty due.>
7-17 (6) <(C)> The commission shall assess a penalty
7-18 against a municipality with a population of more than 1.5 million
7-19 that does not provide municipal water and sewer services in an
7-20 annexed area on or before 4-1/2 years after the annexation takes
7-21 effect in accordance with Section 43.056, Local Government Code. A
7-22 penalty assessed under this paragraph shall be not more than $1,000
7-23 for each day the services are not provided after 4-1/2 years after
7-24 the annexation. A penalty collected under this paragraph shall be
7-25 deposited into the water utility <a special> fund in the state
8-1 treasury to be used to provide water and sewer service to residents
8-2 of the city.
8-3 (7) <(8)> The regulatory assessment does not apply to
8-4 water that has not been treated for the purpose of human
8-5 consumption.
8-6 SECTION 2. Chapter 5, Water Code is amended by adding
8-7 Section 5.237 to read as follows:
8-8 Sec. 5.237. OPERATING FUND. (a) The Texas Natural Resource
8-9 Conservation Commission Operating Fund is established in the
8-10 treasury. At the request of the commission, the comptroller is
8-11 authorized to transfer to an account in the operating fund any
8-12 appropriations made to the commission for the purpose of making
8-13 expenditures. After expenditures have been made from the operating
8-14 fund and proper line item appropriations identified, the commission
8-15 shall submit periodic adjustments to the comptroller in summary
8-16 amounts to record accurate cost allocations to the appropriate
8-17 funds and accounts. Periodic adjustments under this section shall
8-18 be made at least quarterly.
8-19 (b) The commission will establish and maintain accounting
8-20 records adequate to support the periodic reconciliation of
8-21 operating fund transfers and document expenditures from each fund
8-22 or account. All expenditures shall be made consistent with
8-23 provisions of law relating to the authorized use each fund or
8-24 account from which appropriations are made to the commission.
8-25 SECTION 3. Section 26.265, Water Code is amended to read as
9-1 follows:
9-2 Sec. 26.265. Texas Spill Response Fund. (a) There is
9-3 hereby created the Texas Spill Response Fund. This fund shall not
9-4 exceed $5 million, exclusive of fines and penalties received under
9-5 this subchapter.
9-6 (b) The fund shall consist of money appropriated to it by
9-7 the legislature and any fines, civil penalties, or other
9-8 reimbursement to the fund provided for under this subchapter.
9-9 (c) The <executive director with the approval of the>
9-10 commission may expend money in the fund only for the purposes
9-11 <purpose> of:
9-12 (1) response to and investigation of spills and
9-13 discharges;
9-14 (2) obtaining personnel, equipment, and supplies
9-15 required in the cleanup of discharges and spills; and <, including>
9-16 (3) the assessment of damages to and the restoration
9-17 of land and aquatic resources held in trust or owned by the state.
9-18 (d) In addition to any cause of action under Chapter 40,
9-19 Natural Resources Code, the state has a cause of action against any
9-20 responsible person for recovery of:
9-21 (1) expenditures out of the fund; and
9-22 (2) costs that would have been incurred or paid by the
9-23 responsible person if the responsible person had fully carried out
9-24 the duties under Section 26.266 of this code, including:
9-25 (A) reasonable costs of reasonable and necessary
10-1 scientific studies to determine impacts of the spill on the
10-2 environment and natural resources and to determine the manner in
10-3 which to respond to spill impacts;
10-4 (B) costs of attorney services;
10-5 (C) out-of-pocket costs associated with state
10-6 agency action;
10-7 (D) reasonable costs incurred by the state in
10-8 cleanup operations, including costs of personnel, equipment, and
10-9 supplies and land and aquatic resources held in trust or owned by
10-10 the state; and
10-11 (E) costs of remediating injuries proximately
10-12 caused by reasonable cleanup activities.
10-13 (e) The state's right to recover under Subsection (d) of
10-14 this section arises whether or not expenditures have actually been
10-15 made out of the fund.
10-16 (f) It is the intent of the legislature that the state
10-17 attempt to recover the costs of cleanup according to the following
10-18 priority:
10-19 (1) a responsible person; and
10-20 (2) the federal government to the extent that recovery
10-21 from a responsible person is insufficient to pay the costs of
10-22 cleanup.
10-23 (g) In a suit brought under Subsection (d) of this section,
10-24 any responsible person who, after reasonable notice has been given
10-25 by the executive director, has failed, after a reasonable period,
11-1 to carry out his duties under Section 26.266 of this code is liable
11-2 to the state for twice the costs incurred by the state under this
11-3 subchapter in cleaning up the spill or discharge. Reasonable
11-4 notice under this subsection must include a statement as to the
11-5 basis for finding the person to whom notice is sent to be a
11-6 responsible person. Any responsible person held liable under this
11-7 subsection or Subsection (d) of this section has the right to
11-8 recover indemnity or contribution from any third party who caused,
11-9 suffered, allowed, or permitted the spill or discharge. Liability
11-10 arising under this subsection or Subsection (d) of this section
11-11 does not affect any rights the responsible person has against a
11-12 third party whose acts caused or contributed to the spill or
11-13 discharge.
11-14 SECTION 4. The comptroller shall establish the operating
11-15 fund authorized under Section 2 of this Act effective September 1,
11-16 1993.
11-17 SECTION 5. No assessment created under this act, or increase
11-18 in an existing assessment authorized under this act, will be
11-19 collected prior to September 1, 1993.
11-20 SECTION 6. The importance of this legislation and the
11-21 crowded condition of the calendars in both houses create an
11-22 emergency and an imperative public necessity that the
11-23 constitutional rule requiring bills to be read on three several
11-24 days in each house be suspended, and this rule is hereby suspended,
11-25 and that this Act take effect and be in force from and after its
12-1 passage, and it is so enacted.