1-1 By: Alexander (Senate Sponsor - Armbrister) H.B. No. 2605
1-2 (In the Senate - Received from the House May 17, 1993;
1-3 May 19, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 25, 1993, reported favorably, as amended, by the
1-5 following vote: Yeas 6, Nays 0; May 25, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Sims x
1-9 Truan x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Brown x
1-14 Carriker x
1-15 Lucio x
1-16 Montford x
1-17 Ratliff x
1-18 Shelley x
1-19 COMMITTEE AMENDMENT NO. 1 By: Armbrister
1-20 Amend House Bill 2605 by renumbering Sections 4 through 6 as
1-21 Sections 12 through 15 and adding new Sections 4 through 11 to read
1-22 as follows:
1-23 SECTION 4. Subsection (h), Section 26.0135, Water Code, is
1-24 amended to read as follows:
1-25 (h) The commission <Texas Water Commission> shall apportion,
1-26 assess, and recover the reasonable costs of administering water
1-27 quality management programs under this section from all users of
1-28 water and wastewater permit holders in the watershed according to
1-29 the records of the commission generally in proportion to their
1-30 right, through permit or contract, to use water from and discharge
1-31 wastewater in the watershed. The cost to river authorities and
1-32 others to conduct regional water quality assessment shall be
1-33 subject to prior review and approval by the commission as to
1-34 methods of allocation and total amount to be recovered. The
1-35 commission shall adopt rules to supervise and implement the water
1-36 quality assessment and associated costs. The rules shall ensure
1-37 that water users and wastewater dischargers do not pay excessive
1-38 amounts, that a river authority may recover no more than the actual
1-39 costs of administering the water quality management programs called
1-40 for in this section, and that no municipality shall be assessed
1-41 cost for any efforts that duplicate water quality management
1-42 activities described in Section 26.177 of this chapter. Costs
1-43 recovered by the commission are to be deposited to the water
1-44 quality fund and are appropriated to the commission for the
1-45 administration of this section and the implementation of regional
1-46 water quality assessments.
1-47 SECTION 5. Subsection (c), Section 26.0291, Water Code, is
1-48 amended to read as follows:
1-49 (c) The fees collected under this section shall be deposited
1-50 in a special fund in the state treasury to be known as the water
1-51 quality <waste treatment facility inspection fee> fund. Money in
1-52 the fund shall be used as follows:
1-53 (1) to supplement any other funds available for paying
1-54 expenses of the commission in inspecting waste treatment
1-55 facilities;
1-56 (2) to pay for the issuance and renewal of
1-57 certificates of competency under and to administer Section 26.0301
1-58 of this code; and
1-59 (3) to pay for processing plans or amendments to plans
1-60 and inspecting the construction of projects under those plans
1-61 pursuant to Section 26.0461 of this code and rules of the
1-62 commission adopted under Sections 26.046 and 26.0461 of this code.
1-63 SECTION 6. Subsection (e), Section 26.0301, Water Code, is
1-64 amended to read as follows:
1-65 (e) The commission by rule shall set a fee to be paid by
1-66 each applicant or licensee on the issuance or renewal of a
1-67 certificate of competency under this section. The amount of the
1-68 fee is determined according to the costs of the commission in
2-1 administering this section, but may not exceed $25 annually for an
2-2 individual wastewater treatment plant operator and $500 annually
2-3 for a wastewater treatment facility operations company. The
2-4 commission shall deposit any fees collected under this subsection
2-5 in the state treasury to the credit of the water quality <waste
2-6 treatment facility inspection> fund.
2-7 SECTION 7. Subsection (h), Section 26.0461, Water Code, is
2-8 amended to read as follows:
2-9 (h) A fee collected under this section shall be deposited in
2-10 the State Treasury to the credit of the water quality <waste
2-11 treatment facility inspection> fund.
2-12 SECTION 8. Sections 370.007-370.008, Health and Safety Code,
2-13 are amended to read as follows:
2-14 Sec. 370.007. Toxic Chemical Release Reporting Funds.
2-15 <Fund>. (a) Toxic <The toxic> chemical release reporting funds
2-16 <fund> consist of money collected by the commission from:
2-17 (1) fees imposed on owners and operators of facilities
2-18 required to submit a toxic chemical release form; and
2-19 (2) penalties imposed under this chapter.
2-20 (b) The commission may use the money collected under this
2-21 chapter <and deposited in the fund> to pay for:
2-22 (1) costs incurred by the commission in implementing
2-23 this chapter; and
2-24 (2) other commission activities necessary to implement
2-25 the Emergency Planning and Community Right-to-Know Act of 1986 (42
2-26 U.S.C. Section 11001 et seq.).
2-27 Sec. 370.008. Disposition of <Toxic Chemical Release Form
2-28 Reporting> FEES. (a) The owner or operator of a facility required
2-29 to submit a toxic chemical release form under this chapter shall
2-30 pay, at the time of submission, a fee of $25 for each toxic
2-31 chemical release form submitted.
2-32 (b) The maximum fee for a facility may not exceed $250.
2-33 (c) The commission by rule may increase or decrease the
2-34 toxic chemical release form reporting fee as necessary.
2-35 (d) Fees collected under this section shall be deposited in
2-36 the state treasury to the credit of the hazardous and solid waste
2-37 fee <toxic chemical release reporting> fund.
2-38 SECTION 9. The following funds and accounts, and revenues
2-39 authorized to be deposited to these funds and accounts, are exempt
2-40 from the provisions of Subsection (h), Section 403.094, Government
2-41 Code. Except as amended by this Act, these funds and accounts are
2-42 dedicated to the purposes for which they were established under the
2-43 applicable provisions of law. The comptroller may, with the
2-44 concurrence of the treasurer, establish any of the following funds
2-45 as dedicated accounts in the general revenue fund, provided that
2-46 such accounts maintain any attributes authorized under provisions
2-47 of law.
2-48 (1) solid waste disposal fee fund authorized under Sections
2-49 361.013-014, Health and Safety Code;
2-50 (2) waste tire recycling fund authorized under Sections
2-51 361.474-.475, Health and Safety Code;
2-52 (3) water well drillers fund authorized under Sections
2-53 32.014 and 33.012, Water Code;
2-54 (4) used oil recycling fund authorized under Section
2-55 371.061, Health and Safety Code;
2-56 (5) clean air fund authorized under Section 382.0622, Health
2-57 and Safety Code;
2-58 (6) water quality fund authorized under Section 5.235(f),
2-59 Water Code and Sections 26.0291, 26.0301 and 26.0461, Water Code,
2-60 as amended by this Act;
2-61 (7) water rights administration fund authorized under
2-62 Section 12.113, Water Code;
2-63 (8) water utility fund authorized under Section 5.235, Water
2-64 Code;
2-65 (9) spill response fund authorized under Section 26.265,
2-66 Water Code;
2-67 (10) Texas irrigators fund authorized under Section 34.005,
2-68 Water Code;
2-69 (11) hazardous and solid waste fees fund authorized under
2-70 Sections 361.132 and 370.008, Health and Safety Code, as amended by
3-1 this Act;
3-2 (12) hazardous and solid waste remediation fee fund
3-3 authorized under Section 361.133, Health and Safety Code;
3-4 (13) storage tank fund authorized under Section 26.358,
3-5 Water Code and Section 8, Article 8900, V.A.C.S.; and
3-6 (14) petroleum storage tank remediation fund authorized
3-7 under Section 26.3573, Water Code.
3-8 SECTION 10. The funds and accounts described in Section 9 of
3-9 this Act are further exempt from any provision of Subsection (b),
3-10 Section 403.095, Government Code that would authorize the
3-11 expenditure or transfer of dedicated revenues inconsistent with
3-12 Section 9 of this Act. Nothing in this section shall otherwise
3-13 limit the authority of the legislature to appropriate funds from
3-14 any fund or account.
3-15 SECTION 11. The waste treatment facility inspection fund and
3-16 the toxic chemical release reporting fund are abolished effective
3-17 September 1, 1993.
3-18 A BILL TO BE ENTITLED
3-19 AN ACT
3-20 relating to collection and use of fees by, and management of the
3-21 funds of, the water commission.
3-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
3-23 SECTION 1. Section 5.235, Water Code, is amended to read as
3-24 follows:
3-25 Sec. 5.235. Fees. (a) The executive director shall charge
3-26 and collect the fees prescribed by law <this section>. The
3-27 executive director shall make a record of fees prescribed when due
3-28 and shall render an account to the person charged with the fees.
3-29 Each fee is a separate charge and is in addition to other fees
3-30 unless provided otherwise.
3-31 (1) Notwithstanding other provisions, the commission
3-32 by rule may establish due dates, schedules, and procedures for
3-33 assessment, collection, and remittance of fees due the commission
3-34 to ensure the cost-effective administration of revenue collection
3-35 and cash management programs.
3-36 (2) Notwithstanding other provisions, the commission
3-37 by rule shall establish uniform and consistent requirements for the
3-38 assessment of penalties and interest for late payment of fees owed
3-39 the state under the commission's jurisdiction. Penalties and
3-40 interest established under this section shall not exceed rates
3-41 established for delinquent taxes under Sections 111.060 and
3-42 111.061, Tax Code.
3-43 (b) Except as specifically provided by this section, the fee
3-44 for filing an application or petition is $100 plus the cost of any
3-45 required notice. The fee for a by-pass permit shall be set by the
3-46 commission at a reasonable amount to recover costs, but not less
3-47 than $100.
3-48 (c) The fee for filing a water permit application is $100
3-49 plus the cost of required notice.
3-50 (d) The fee for filing an application for fixing or
3-51 adjusting rates is $100 plus the cost of required notice.
3-52 (e) A person who files with the commission a petition for
3-53 the creation of a water district or addition of sewage and drainage
3-54 powers or a resolution for a water district conversion must pay a
3-55 one-time nonrefundable application fee. The commission by rule may
3-56 set the application fee in an amount not to exceed the costs of
3-57 reviewing and processing the application <$700>, plus the cost of
3-58 required notice. This fee is the only fee that the commission may
3-59 charge with regard to the processing of an application for creation
3-60 of a water district, addition of sewage or drainage powers, or
3-61 conversion under this code.
3-62 (f) A person who files a bond issue application with the
3-63 commission must pay an application fee set by the commission. The
3-64 commission by rule may set the application fee in an amount not to
3-65 exceed the costs of reviewing and processing the application
3-66 <$500>, plus the cost of required notice. If the bonds are
3-67 approved by the commission, the seller shall pay to the commission
3-68 a percentage of the bond proceeds not later than the seventh
3-69 business day after receipt of the bond proceeds. The commission by
3-70 rule may set the percentage of the proceeds in an amount not to
4-1 exceed 0.25 percent of the principal amount of the bonds actually
4-2 issued. Revenue from these fees and application fees under
4-3 Subsection (e) of this section shall be deposited in the state
4-4 treasury and credited to the water utility <quality> fund.
4-5 Proceeds of the fees shall be used to supplement any other funds
4-6 available for paying expenses of the commission in supervising the
4-7 various bond and construction activities of the districts filing
4-8 the applications.
4-9 (g) The fee for recording an instrument in the office of the
4-10 commission is $1.25 per page.
4-11 (h) The fee for the use of water for irrigation is 50 cents
4-12 per acre to be irrigated.
4-13 (i) The fee for impounding water, except under Section
4-14 11.142 of this code, is 50 cents per acre-foot of storage, based on
4-15 the total holding capacity of the reservoir at normal operating
4-16 level.
4-17 (j) The fee for other uses of water not specifically named
4-18 in this section is $1 per acre-foot, except that no political
4-19 subdivision may be required to pay fees to use water for recharge
4-20 of underground freshwater-bearing sands and aquifers or for
4-21 abatement of natural pollution.
4-22 (k) A fee charged under Subsections (h) through (j) of this
4-23 section for one use of water under a permit from the commission may
4-24 not exceed $50,000 <$25,000>. The fee for each additional use of
4-25 water under a permit for which the maximum fee is paid may not
4-26 exceed $10,000 <$5,000>.
4-27 (l) The fees prescribed by Subsections (h) through (j) of
4-28 this section are one-time fees, payable when the application for an
4-29 appropriation is made. However, if the total fee for a permit
4-30 exceeds $1,000, the applicant shall pay one-half <one-tenth> of the
4-31 fee when the application is filed and one-half<, one-tenth> within
4-32 180 <30> days after notice is mailed to him that the permit is
4-33 granted<, and the balance before he begins to use water under the
4-34 permit>. If the applicant does not pay all of the amount owed
4-35 before beginning to use water under the permit, the permit is
4-36 annulled.
4-37 (m) If a permit is annulled, the matter reverts to the
4-38 status of a pending, filed application and, on the payment of use
4-39 fees as provided by Subsections (h) through (l) of this section
4-40 <subsection> together with sufficient postage fees for mailing
4-41 notice of hearing, the commission shall set the application for
4-42 hearing and proceed as provided by this code.
4-43 (n)(1) Each provider of potable water or sewer utility
4-44 service shall collect a regulatory assessment from each retail
4-45 customer as follows:
4-46 (A) A public utility as defined in Section
4-47 13.002 of this code shall collect from each retail customer a
4-48 regulatory assessment equal to one percent of the charge for retail
4-49 water or sewer service.
4-50 (B) A water supply or sewer service corporation
4-51 as defined in Section 13.002 of this code shall collect from each
4-52 retail customer a regulatory assessment equal to one-half of one
4-53 percent of the charge for retail water or sewer service.
4-54 (C) A district as defined in Section 50.001 of
4-55 this code that provides potable water or sewer utility service to
4-56 retail customers shall collect from each retail customer a
4-57 regulatory assessment equal to one-half of one percent of the
4-58 charge for retail water or sewer service.
4-59 (2) The regulatory assessment may be listed on the
4-60 customer's bill as a separate item and shall be collected in
4-61 addition to other charges for utility services.
4-62 (3) The commission shall use the assessments collected
4-63 under this subsection <from districts> solely to pay costs and
4-64 expenses incurred by the commission in the regulation of districts,
4-65 water supply or sewer service corporations, and public utilities
4-66 under Chapter 13, Water Code.
4-67 <(4) The commission shall use the assessments
4-68 collected from water supply or sewer service corporations solely to
4-69 pay costs and expenses incurred by the commission in the regulation
4-70 of water supply or sewer service corporations.>
5-1 <(5) The commission shall use the assessments
5-2 collected from public utilities solely to pay costs and expenses
5-3 incurred by the commission in the regulation of public utilities.>
5-4 (4) <(6)> The commission shall annually use a portion
5-5 of the assessments to provide on-site technical assistance and
5-6 training to public utilities, water supply or sewer service
5-7 corporations, and districts. The commission shall contract with
5-8 others to provide the services.
5-9 (5) <(7)> The commission by rule may establish due
5-10 dates, collection procedures, and penalties for late payment
5-11 related to regulatory assessments under this subsection <Except as
5-12 provided by Paragraph (A) of this subdivision, assessments
5-13 collected from retail customers for the prior 12 months are due on
5-14 January 15 of each year>. The executive director shall collect all
5-15 assessments from the utility service providers, and those funds
5-16 shall be paid into the state treasury and credited to the water
5-17 utility fund.
5-18 <(A) A utility service provider may make
5-19 quarterly payments due on January 15, April 15, July 15, and
5-20 October 15 of each year. If payments are made quarterly and
5-21 received by the commission not later than the 30th day after the
5-22 due date, the utility service provider may retain an administrative
5-23 fee equal to 10 percent of the amount due for costs incurred in
5-24 collecting and remitting the assessment.>
5-25 <(B) The commission shall assess on a utility
5-26 service provider a penalty equal to 10 percent of the amount due
5-27 for any payment received after January 31. Funds delinquent for
5-28 more than 30 days shall draw interest at the rate of 10 percent a
5-29 year on the assessment and penalty due.>
5-30 (6) <(C)> The commission shall assess a penalty
5-31 against a municipality with a population of more than 1.5 million
5-32 that does not provide municipal water and sewer services in an
5-33 annexed area on or before 4-1/2 years after the annexation takes
5-34 effect in accordance with Section 43.056, Local Government Code. A
5-35 penalty assessed under this paragraph shall be not more than $1,000
5-36 for each day the services are not provided after 4-1/2 years after
5-37 the annexation. A penalty collected under this paragraph shall be
5-38 deposited into the water utility <a special> fund in the state
5-39 treasury to be used to provide water and sewer service to residents
5-40 of the city.
5-41 (7) <(8)> The regulatory assessment does not apply to
5-42 water that has not been treated for the purpose of human
5-43 consumption.
5-44 SECTION 2. Subchapter F, Chapter 5, Water Code, is amended
5-45 by adding Section 5.237 to read as follows:
5-46 Sec. 5.237. OPERATING FUND. (a) The Texas Natural Resource
5-47 Conservation Commission Operating Fund is established in the
5-48 treasury. At the request of the commission, the comptroller is
5-49 authorized to transfer to an account in the operating fund any
5-50 appropriations made to the commission for the purpose of making
5-51 expenditures. After expenditures have been made from the operating
5-52 fund and proper line-item appropriations identified, the commission
5-53 shall submit periodic adjustments to the comptroller in summary
5-54 amounts to record accurate cost allocations to the appropriate
5-55 funds and accounts. Periodic adjustments under this section shall
5-56 be made at least quarterly.
5-57 (b) The commission will establish and maintain accounting
5-58 records adequate to support the periodic reconciliation of
5-59 operating fund transfers and document expenditures from each fund
5-60 or account. All expenditures shall be made consistent with
5-61 provisions of law relating to the authorized use of each fund or
5-62 account from which appropriations are made to the commission.
5-63 SECTION 3. Section 26.265, Water Code, is amended to read as
5-64 follows:
5-65 Sec. 26.265. Texas Spill Response Fund. (a) There is
5-66 hereby created the Texas Spill Response Fund. This fund shall not
5-67 exceed $5 million, exclusive of fines and penalties received under
5-68 this subchapter.
5-69 (b) The fund shall consist of money appropriated to it by
5-70 the legislature and any fines, civil penalties, or other
6-1 reimbursement to the fund provided for under this subchapter.
6-2 (c) The <executive director with the approval of the>
6-3 commission may expend money in the fund only for the purposes
6-4 <purpose> of:
6-5 (1) response to and investigation of spills and
6-6 discharges;
6-7 (2) obtaining personnel, equipment, and supplies
6-8 required in the cleanup of discharges and spills; and<, including>
6-9 (3) the assessment of damages to and the restoration
6-10 of land and aquatic resources held in trust or owned by the state.
6-11 (d) In addition to any cause of action under Chapter 40,
6-12 Natural Resources Code, the state has a cause of action against any
6-13 responsible person for recovery of:
6-14 (1) expenditures out of the fund; and
6-15 (2) costs that would have been incurred or paid by the
6-16 responsible person if the responsible person had fully carried out
6-17 the duties under Section 26.266 of this code, including:
6-18 (A) reasonable costs of reasonable and necessary
6-19 scientific studies to determine impacts of the spill on the
6-20 environment and natural resources and to determine the manner in
6-21 which to respond to spill impacts;
6-22 (B) costs of attorney services;
6-23 (C) out-of-pocket costs associated with state
6-24 agency action;
6-25 (D) reasonable costs incurred by the state in
6-26 cleanup operations, including costs of personnel, equipment, and
6-27 supplies and restoration of land and aquatic resources held in
6-28 trust or owned by the state; and
6-29 (E) costs of remediating injuries proximately
6-30 caused by reasonable cleanup activities.
6-31 (e) The state's right to recover under Subsection (d) of
6-32 this section arises whether or not expenditures have actually been
6-33 made out of the fund.
6-34 (f) It is the intent of the legislature that the state
6-35 attempt to recover the costs of cleanup according to the following
6-36 priority:
6-37 (1) a responsible person; and
6-38 (2) the federal government to the extent that recovery
6-39 from a responsible person is insufficient to pay the costs of
6-40 cleanup.
6-41 (g) In a suit brought under Subsection (d) of this section,
6-42 any responsible person who, after reasonable notice has been given
6-43 by the executive director, has failed, after a reasonable period,
6-44 to carry out his duties under Section 26.266 of this code is liable
6-45 to the state for twice the costs incurred by the state under this
6-46 subchapter in cleaning up the spill or discharge. Reasonable
6-47 notice under this subsection must include a statement as to the
6-48 basis for finding the person to whom notice is sent to be a
6-49 responsible person. Any responsible person held liable under this
6-50 subsection or Subsection (d) of this section has the right to
6-51 recover indemnity or contribution from any third party who caused,
6-52 suffered, allowed, or permitted the spill or discharge. Liability
6-53 arising under this subsection or Subsection (d) of this section
6-54 does not affect any rights the responsible person has against a
6-55 third party whose acts caused or contributed to the spill or
6-56 discharge.
6-57 SECTION 4. The comptroller shall establish the operating
6-58 fund authorized under Section 2 of this Act effective September 1,
6-59 1993.
6-60 SECTION 5. No assessment created under this Act, or increase
6-61 in an existing assessment authorized under this Act, will be
6-62 collected prior to September 1, 1993.
6-63 SECTION 6. The importance of this legislation and the
6-64 crowded condition of the calendars in both houses create an
6-65 emergency and an imperative public necessity that the
6-66 constitutional rule requiring bills to be read on three several
6-67 days in each house be suspended, and this rule is hereby suspended,
6-68 and that this Act take effect and be in force from and after its
6-69 passage, and it is so enacted.
6-70 * * * * *
7-1 Austin,
7-2 Texas
7-3 May 25, 1993
7-4 Hon. Bob Bullock
7-5 President of the Senate
7-6 Sir:
7-7 We, your Committee on Natural Resources to which was referred H.B.
7-8 No. 2605, have had the same under consideration, and I am
7-9 instructed to report it back to the Senate with the recommendation
7-10 that it do pass, as amended, and be printed.
7-11 Sims,
7-12 Chairman
7-13 * * * * *
7-14 WITNESSES
7-15 FOR AGAINST ON
7-16 ___________________________________________________________________
7-17 Name: Stephen Minick x
7-18 Representing: Tx Water Commission
7-19 City: Austin
7-20 -------------------------------------------------------------------
7-21 Name: Scott Royder x
7-22 Representing: Sierra Club
7-23 City: Austin
7-24 -------------------------------------------------------------------