BILL ANALYSIS



C.S.H.B. 3072
By: Gallego
4-4-95
Committee Report (Substituted)


BACKGROUND

The Municipal Solid Waste Fee, or "tipping fee," is collected at
the municipal and private landfills and deposited in the state
treasury to an account for the Texas Natural Resource Conservation
Commission.  The full amount of revenue from the fee totals
approximately $22-24 million per year, and is decreasing due to
less waste being landfilled - a result attributable to the
recycling and composting programs funded by the fee.

The balance of revenues not used by the commission is eligible for
a number of solid waste management activities, many of which are
performed in partnership with local government either through
direct grants, technical assistance, or indirectly with community
participation.

The portion dedicated to these local activities continues to
decrease as state level agency uses increase.  As payers into the
tipping fee, local officials have understood that the revenue was
to come back to them in substantial proportions through grants. 
Percentage of the tipping fee revenues for grants has gone from 45%
in FY 93 to 27% in FY 95 (chart below).


Activity Funded from 
Tipping Fee
FY 93
Amount
% of
Total
FY 94
Amount
% of
Total
FY 95
Amount
% of
Total


Grants to Regional and
Local Activities
$12,845,948
45.7
$9,767,200
40.7
$6,000,000
27.9


Waste Management
$6,858,668
24.4
5,659,599
23.6
$3,881,055
18.0


Legal Compliance
$3,626,099
12.9
3,444,644
14.4
$960,728
4.5


Water Resource Mgmt
$787,060
2.8
278,800
1.2
$418,059
1.9


Agency Administration
$3,232,569
11.5
$2,643,827
11.0
$2,833,898
13.2


Executive Office *
$365,420
1.3
$2,201,549
9.2
$1,923,637
8.9


Commissioners Office
$393,530
1.4
n/a
n/a
n/a
n/a


Pollution Prevention
n/a
n/a
n/a
n/a
$5,506,906
25.6


TOTAL Tipping Fee
Revenues

$28,109,294

100

$23,995,619

100

$21,524,283
 
100


Includes Pollution Prevention for FY 94 only.                              Source: TNRCC Staff

PURPOSE

The purpose of the bill is to ensure that:
   (1) one-half of solid waste fee revenues is used for state level activities related to solid waste
   management, particularly permitting and enforcement requirements at the Texas Natural
   Resource Conservation Commission, and 
   (2) one-half of solid waste fee revenues is available to carry out local and regional projects
   specific to their area needs and in accordance with approved regional solid waste management
   plans.




RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking
authority to a state officer, department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends, Chapter 361, Health & Safety Code, as follows:
   Section 361.014 (a) limits the amount of revenue dedicated to the commission's programs to
   one-half of the solid waste fee revenue.
   Section 361.014 (b) dedicates one-half of the solid waste fee revenue to local and regional
   solid waste projects consistent with regional plans approved by the commission.  The revenues
   will be allocated based on an established formula.

SECTION 2.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The Committee substitute of HB 3072 is a Legislative Council Draft of the original bill with no
substantial changes in content or intent.

SUMMARY OF COMMITTEE ACTION

HB 3072 was considered by the House Committee on Environmental Regulation in a public hearing
on April 4, 1995.  Rep. Gallego testified for the bill.  The committee considered a complete
substitute for the bill.  The following persons testified in favor of the bill:
   Sandra Pickett, City Council of Liberty, representing herself.
   John Thompson, County Judge of Polk County, representing himself and the County Judges
   and Commissioners Association - Texas Association of Regional Councils of Governments.
   Thomas J. Blazek, City Manager of Panhandle, representing himself and the City of Panhandle.
   Al J. Notzon III, representing the Alamo Area Council of Governments.
   Don Kelley, Local Public Administration, Executive Director of South East Texas Regional
   Planning Commission, representing himself and the South East Texas Regional Planning
   Commission.
   Gary Pitner, Executive Director of the Panhandle Regional Planning Commission, representing
   himself and the Panhandle Regional Planning Commission.
   Paul Edwards, representing the Middle Rio Grande Development Council.
   Justin R. Ormsby, representing himself and the Rio Grande Council of Governments.
   Jack C. Carmichael, with the Texas Chapter of Solid Waste Association of North America,
   representing himself.
   Mark Mendez, representing the Tarrant County Commissioners Court.
   
Chuck Button, representing the Municipal Solid Waste Management Association/National Solid
Waste Management Association testified against the bill.

The following persons testified neutrally on the bill:
   Stephen Minnick, representing the Texas Natural Resource Conservation Commission.
   Patti Everitt, representing the Texas Natural Resource Conservation Commission.

The substitute for HB 3072 was adopted without objection.  HB 3072 was reported favorably as
substituted with the recommendation that it do pass and be printed, by a record vote of six (6) ayes,
no (0) nays, no (0) pnv, and three (3) absent.