By:  Armbrister                                       S.B. No. 1202
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to administration and collection of fees, recovery of
    1-2  costs and operating fund.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 5.235, Water Code, is amended to read as
    1-5  follows:
    1-6        Sec. 5.235.  Fees.  (a)  The executive director shall charge
    1-7  and collect the fees prescribed by law <this section>.  The
    1-8  executive director shall make a record of fees prescribed when due
    1-9  and shall render an account to the person charged with the fees.
   1-10  Each fee is a separate charge and is in addition to other fees
   1-11  unless provided otherwise.
   1-12              (1)  Notwithstanding other provisions, the commission
   1-13  by rule may establish due dates, schedules and procedures for
   1-14  assessment, collection and remittance of fees due the commission to
   1-15  ensure the cost-effective administration of revenue collection and
   1-16  cash management programs.
   1-17              (2)  Notwithstanding other provisions, the commission
   1-18  by rule shall establish uniform and consistent requirements for the
   1-19  assessment of penalties and interest for late payment of fees owed
   1-20  the state under the commission's jurisdiction.  Penalties and
   1-21  interest established under this section shall not exceed rates
   1-22  established for delinquent taxes under Sections 111.060-111.061,
   1-23  Tax Code.
    2-1        (b)  Except as otherwise <specifically> provided by law <by
    2-2  this section>, the  commission may collect a fee from a person who
    2-3  receives a service from the commission.  For the purpose of this
    2-4  section, such services may include, but are not limited to, the
    2-5  publication of public notice and the review and processing of
    2-6  applications, petitions, registrations, certifications or other
    2-7  forms of approval received from the commission or the performance
    2-8  of related technical or administrative services <fee for filing an
    2-9  application or petition is $100 plus the cost of any required
   2-10  notice.  The fee for a by-pass permit shall be set by the agency at
   2-11  a reasonable amount to recover costs, but not less than $100>.
   2-12        (c)  A fee under this section shall be set by rule of the
   2-13  commission and may not exceed the demonstrable costs of the
   2-14  commission in providing the service rendered <The fee for filing a
   2-15  water permit application is $100 plus the cost of required notice>.
   2-16        (d)  Except as otherwise provided by law, a fee assessed
   2-17  under this section shall be deposited to the Texas Natural Resource
   2-18  Conservation Commission Operating Fund and is appropriated to the
   2-19  commission for the purpose of recovery of costs of services
   2-20  provided by the commission.  The commission shall maintain records
   2-21  of income and expense to ensure that fees are expended for the
   2-22  purposes intended under this section and demonstrate the costs
   2-23  recovered <The fee for filing an application for fixing or
   2-24  adjusting rates is $100 plus the cost of required notice>.
   2-25        (e)  A person who files with the commission a petition for
    3-1  the creation of a water district or addition of sewage and drainage
    3-2  powers or a resolution for a water district conversion must pay a
    3-3  one-time nonrefundable application fee.  The commission by rule may
    3-4  set the application fee in an amount not to exceed the costs of
    3-5  reviewing and processing the application <$700>, plus the cost of
    3-6  required notice.  This fee is the only fee that the commission may
    3-7  charge with regard to the processing of an application for creation
    3-8  of a water district, addition of sewage or drainage powers, or
    3-9  conversion under this code.
   3-10        (f)  A person who files a bond issue application with the
   3-11  commission must pay an application fee set by the commission.  The
   3-12  commission by rule may set the application fee in an amount not to
   3-13  exceed the costs of reviewing and processing the application
   3-14  <$500>, plus the cost of required notice.  If the bonds are
   3-15  approved by the commission, the seller shall pay to the commission
   3-16  a percentage of the bond proceeds not later than the seventh
   3-17  business day after receipt of the bond proceeds.  The commission by
   3-18  rule may set the percentage of the proceeds in an amount not to
   3-19  exceed 0.25 percent of the principal amount of the bonds actually
   3-20  issued.  Revenue from these fees  and application fees under
   3-21  subsection (e) of this section shall be deposited in the state
   3-22  treasury and credited to the water utility <quality>  fund.
   3-23  Proceeds of the fees shall be used to supplement any other funds
   3-24  available for paying expenses of the commission in supervising the
   3-25  various bond and construction activities of the districts filing
    4-1  the applications.
    4-2        (g)  The fee for recording an instrument in the office of the
    4-3  commission is $1.25 per page.
    4-4        (h)  The fee for the use of water for irrigation is 50 cents
    4-5  per acre to be irrigated.
    4-6        (i)  The fee for impounding water, except under Section
    4-7  11.142 of this code, is 50 cents per acre-foot of storage, based on
    4-8  the total holding capacity of the reservoir at normal operating
    4-9  level.
   4-10        (j)  The fee for other uses of water not specifically named
   4-11  in this section is $1 per acre-foot, except that no political
   4-12  subdivision may be required to pay fees to use water for recharge
   4-13  of underground freshwater-bearing sands and aquifers or for
   4-14  abatement of natural pollution.
   4-15        (k)  A fee charged under Subsections (h) through (j) of this
   4-16  section for one use of water under a permit from the commission may
   4-17  not exceed $50,000 <$25,000>.  The fee for each additional use of
   4-18  water under a permit for which the maximum fee is paid may not
   4-19  exceed $10,000 <$5,000>.
   4-20        (l)  The fees prescribed by Subsections (h) through (j) of
   4-21  this section are one-time fees, payable when the application for an
   4-22  appropriation is made.  However, if the total fee for a permit
   4-23  exceeds $1,000, the applicant shall pay one-half <one-tenth> of the
   4-24  fee when the application is filed and one-half <,one-tenth> within
   4-25  180 days after notice is mailed to him that the permit is granted<,
    5-1  and the balance before he begins to use water under the permit>.
    5-2  If the applicant does not pay all of the amount owed before
    5-3  beginning to use water under the permit, the permit is annulled.
    5-4        (m)  If a permit is annulled, the matter reverts to the
    5-5  status of a pending, filed application and, on the payment of use
    5-6  fees as provided by Subsections (h) through (l) of this section
    5-7  <subsection> together with sufficient postage fees for mailing
    5-8  notice of hearing, the commission shall set the application for
    5-9  hearing and proceed as provided by  this code.
   5-10        (n)(1)  Each provider of potable water or sewer utility
   5-11  service shall collect a regulatory assessment from each retail
   5-12  customer as follows:
   5-13                    (A)  A public utility as defined in Section
   5-14  13.002 of this code shall collect from each retail customer a
   5-15  regulatory assessment equal to one percent of the charge for retail
   5-16  water or sewer service.
   5-17                    (B)  A water supply or sewer service corporation
   5-18  as defined in Section 13.002 of this code shall collect from each
   5-19  retail customer a regulatory assessment equal to one-half of one
   5-20  percent of the charge for retail water or sewer service.
   5-21                    (C)  A district as defined in Section 50.001 of
   5-22  this code that provides potable water or sewer utility service to
   5-23  retail customers shall collect from each retail customer a
   5-24  regulatory assessment equal to one-half of one percent of the
   5-25  charge for retail water or sewer service.
    6-1              (2)  The regulatory assessment may be listed on the
    6-2  customer's bill as a separate item and shall be collected in
    6-3  addition to other charges for utility services.
    6-4              (3)  The commission shall use the assessments collected
    6-5  under this subsection <from districts> solely to pay costs and
    6-6  expenses incurred by the commission in the regulation of districts,
    6-7  water supply or sewer service corporations and public utilities
    6-8  under Chapter 13, Water Code.
    6-9              <(4)  The commission shall use the assessments
   6-10  collected from water supply or sewer service corporations solely to
   6-11  pay costs and expenses incurred by the commission in the regulation
   6-12  of water supply or sewer service corporations.>
   6-13              <(5)  The commission shall use the assessments
   6-14  collected from public utilities solely to pay costs and expenses
   6-15  incurred by the commission in the regulation of public utilities.>
   6-16              (4) <(6)>  The commission shall annually use a portion
   6-17  of the assessments to provide on-site technical assistance and
   6-18  training to public utilities, water supply or sewer service
   6-19  corporations, and districts.  The commission may <shall>  contract
   6-20  with others to provide the services.
   6-21              (5) <(7)>  The commission by rule may establish due
   6-22  dates, collection procedures and penalties for late payment related
   6-23  to regulatory assessments under this subsection <Except as provided
   6-24  by Paragraph (A) of this subdivision, assessments collected from
   6-25  retail customers for the prior 12 months are due on January 15 of
    7-1  each year>.  The executive director shall collect all assessments
    7-2  from the utility service providers, and those funds shall be paid
    7-3  into the state treasury and credited to the water utility fund.
    7-4                    <(A)  A utility service provider may make
    7-5  quarterly payments due on January 15, April 15, July 15, and
    7-6  October 15 of each year.  If payments are made quarterly and
    7-7  received by the commission not later than the 30th day after the
    7-8  due date, the utility service provider may retain an administrative
    7-9  fee equal to 10 percent of the amount due for costs incurred in
   7-10  collecting and remitting the assessment.>
   7-11                    <(B)  The commission shall assess on a utility
   7-12  service provider a penalty equal to 10 percent of the amount due
   7-13  for any payment received after January 31.  Funds delinquent for
   7-14  more than 30 days shall draw interest at the rate of 10 percent a
   7-15  year on the assessment and penalty due.>
   7-16              (6) <(C)>  The commission shall assess a penalty
   7-17  against a municipality with a population of more than 1.5 million
   7-18  that does not provide municipal water and sewer services in an
   7-19  annexed area on or before 4-1/2  years after the annexation takes
   7-20  effect in accordance with Section 43.056, Local Government Code.  A
   7-21  penalty assessed under this paragraph shall be not more than $1,000
   7-22  for each day the services are not provided after 4-1/2  years after
   7-23  the annexation.  A penalty collected under this paragraph shall be
   7-24  deposited into the water utility <a special> fund in the state
   7-25  treasury to be used to provide water and sewer service to residents
    8-1  of the city.
    8-2              (7) <(8)>  The regulatory assessment does not apply to
    8-3  water that has not been treated for the purpose of human
    8-4  consumption.
    8-5        SECTION 2.  Chapter 5, Water Code is amended by adding
    8-6  Section 5.237 to read as follows:
    8-7        Sec. 5.237.  OPERATING FUND.  (a)  The Texas Natural Resource
    8-8  Conservation Commission Operating Fund is established in the
    8-9  treasury.  At the request of the commission, the comptroller is
   8-10  authorized to transfer to an account in the operating fund any
   8-11  appropriations made to the commission for the purpose of making
   8-12  expenditures.  After expenditures have been made from the operating
   8-13  fund and proper line item appropriations identified, the commission
   8-14  shall submit periodic adjustments to the comptroller in summary
   8-15  amounts to record accurate cost allocations to the appropriate
   8-16  funds and accounts.  Periodic adjustments under this section shall
   8-17  be made at least quarterly.
   8-18        (b)  The commission will establish and maintain accounting
   8-19  records adequate to support the periodic reconciliation of
   8-20  operating fund transfers and document expenditures from each fund
   8-21  or account.  All expenditures shall be made consistent with
   8-22  provisions of law relating to the authorized use each fund or
   8-23  account from which appropriations are made to the commission.
   8-24        SECTION 3.  Section 26.265, Water Code is amended to read as
   8-25  follows:
    9-1        Sec. 26.265.  Texas Spill Response Fund.  (a)  There is
    9-2  hereby created the Texas Spill Response Fund.  This fund shall not
    9-3  exceed $5 million, exclusive of fines and penalties received under
    9-4  this subchapter.
    9-5        (b)  The fund shall consist of money appropriated to it by
    9-6  the legislature and any fines, civil penalties, or other
    9-7  reimbursement to the fund provided for under this subchapter.
    9-8        (c)  The <executive director with the approval of the>
    9-9  commission may expend money in the fund only for the purposes
   9-10  <purpose> of:
   9-11              (1)  response to and investigation of spills and
   9-12  discharges;
   9-13              (2)  obtaining personnel, equipment, and supplies
   9-14  required in the cleanup of discharges and spills; and <, including>
   9-15              (3)  the assessment of damages to and the restoration
   9-16  of land and aquatic resources held in trust or owned by the state.
   9-17        (d)  In addition to any cause of action under Chapter 40,
   9-18  Natural Resources Code, the state has a cause of action against any
   9-19  responsible person for recovery of:
   9-20              (1)  expenditures out of the fund; and
   9-21              (2)  costs that would have been incurred or paid by the
   9-22  responsible person if the responsible person had fully carried out
   9-23  the duties under Section 26.266 of this code, including:
   9-24                    (A)  reasonable costs of reasonable and necessary
   9-25  scientific studies to determine impacts of the spill on the
   10-1  environment and natural resources and to determine the manner in
   10-2  which to respond to spill impacts;
   10-3                    (B)  costs of attorney services;
   10-4                    (C)  out-of-pocket costs associated with state
   10-5  agency action;
   10-6                    (D)  reasonable costs incurred by the state in
   10-7  cleanup operations, including costs of personnel, equipment, and
   10-8  supplies and land and aquatic resources held in trust or owned by
   10-9  the state; and
  10-10                    (E)  costs of remediating injuries proximately
  10-11  caused by reasonable cleanup activities.
  10-12        (e)  The state's right to recover under Subsection (d) of
  10-13  this section arises whether or not expenditures have actually been
  10-14  made out of the fund.
  10-15        (f)  It is the intent of the legislature that the state
  10-16  attempt to recover the costs of cleanup according to the following
  10-17  priority:
  10-18              (1)  a responsible person; and
  10-19              (2)  the federal government to the extent that recovery
  10-20  from a responsible person is insufficient to pay the costs of
  10-21  cleanup.
  10-22        (g)  In a suit brought under Subsection (d) of this section,
  10-23  any responsible person who, after reasonable notice has been given
  10-24  by the executive director, has failed, after a reasonable period,
  10-25  to carry out his duties under Section 26.266 of this code is liable
   11-1  to the state for twice the costs incurred by the state under this
   11-2  subchapter in cleaning up the spill or discharge.  Reasonable
   11-3  notice under this subsection must include a statement as to the
   11-4  basis for finding the person to whom notice is sent to be a
   11-5  responsible person.   Any responsible person held liable under this
   11-6  subsection or Subsection (d) of this section has the right to
   11-7  recover indemnity or contribution from any third party who caused,
   11-8  suffered, allowed, or permitted the spill or discharge.  Liability
   11-9  arising under this subsection or Subsection (d) of this section
  11-10  does not affect any rights the responsible person has against a
  11-11  third party whose acts caused or contributed to the spill or
  11-12  discharge.
  11-13        SECTION 4.  The comptroller shall establish the operating
  11-14  fund authorized under Section 2 of this Act effective September 1,
  11-15  1993.
  11-16        SECTION 5.  No assessment created under this act, or increase
  11-17  in an existing assessment authorized under this act, will be
  11-18  collected prior to September 1, 1993.
  11-19        SECTION 6.  The importance of this legislation and the
  11-20  crowded condition of the calendars in both houses create an
  11-21  emergency and an imperative public necessity that the
  11-22  constitutional rule requiring bills to be read on three several
  11-23  days in each house be suspended, and this rule is hereby suspended,
  11-24  and that this Act take effect and be in force from and after its
  11-25  passage, and it is so enacted.