ACG H.B. 3231 75(R)BILL ANALYSIS

ENVIRONMENTAL REGULATION
C.S.H.B. 3231
4-8-97
Committee Report (Substituted)


BACKGROUND 

Although most of the state's environmental programs were consolidated in
the Texas Natural Resource Conservation Commission in 1992, the funding
structure of the agency is fragmented and still reflects the many and
varied agencies and programs that were consolidated. The TNRCC is
supported primarily through various fee assessments and is currently
appropriated funds from over 20 methods of finance. This bill will result
in the overall simplification of TNRCC's method of finance structure.
Generally, the bill would consolidate the various fee revenues received by
TNRCC into one major account for the three major program areas of Air
Quality, Water Resources and Waste Management and also one account for
occupational licensing and professional certification.  Changes to revenue
authority are also proposed in order to separate agency operating accounts
from those used for grants, contracts and reimbursements to third parties.
Consistent with current law, the title of each fund is changed to reflect
its status as a dedicated account in the general revenue fund.  Changes to
the names of certain funds are proposed to reflect current uses and agency
name. No changes are proposed which would alter the existing authority for
the use of dedicated revenues. 

The Texas Water Development Board Administrative Fund is renamed as the
Texas Natural Resource Conservation Commission Administrative Account in
the General Revenue Fund and authority for this account is moved from
Chapter 17 of the Water Code to Chapter 5. The Water Rights Administration
Fund is renamed as the Watermaster Administrative Account. 

The Air Control Board Fund is renamed as the Air Control Account and the
authority for the account is re-established under Chapter 382 of the
Health and Safety Code. The Clean Air Fund is renamed as the Clean Air
Account. 

The Water Quality Fund is renamed as the Water Resource Management Account
and established as the consolidated account for receipt of most revenues
currently deposited to the Water Quality Fund, Water Utility Fund and
Public Health Service Fee Fund. In addition, fees currently deposited to
the general revenue fund, including on-site sewage disposal system permit
fees, will be deposited to the account. 

The Hazardous and Solid Waste Fee Fund is renamed as the Waste Management
Account and established as the consolidated account for the receipt of
most revenues currently deposited to the Hazardous and Solid Waste Fee
Fund, the Solid Waste Disposal Fund, the Storage Tank Fund and the
Radioactive Substance Fee Fund for agency operating expenses. In addition,
the amounts of money authorized for use by the Commission for
administration of the programs funded by the Petroleum Storage Tank
Remediation Fund, the Hazardous and Solid Waste Remediation Fee Fund, the
Waste Tire Recycling Fund and the Used Oil Recycling Fund are authorized
to be transferred to the Waste Management Account for the purpose of
consolidating appropriations funding agency operations. These funds and
the Solid Waste Disposal Fund would be maintained only for passthrough,
contractual or reimbursement expenses. 

The Texas Irrigators Fund is re-designated as the Commission Occupational
Licensing Account and fees collected for occupational licensing such as
those in the Water Well Drillers Fund and the Texas Irrigators Fund, in
addition to licensing fees currently deposited to other funds or accounts,
are consolidated in the Occupational Licensing Account. 

Any language proscribing particular uses for revenues in funds that are
abolished is restated as appropriate. In keeping with the current status
of dedicated accounts, general references to the term "fund" are changed
to read "account" as appropriate. Also, various non-substantive
corrections are  made. 

PURPOSE

As proposed, C.S.H.B. 3231 provides for administrative and procedural
changes for the consolidation and streamlining of the Texas Natural
Resource Conservation Commission's accounting structure and appropriated
methods of finance. 


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 Sections 5.235 (a), (b), (f) and (n), Water Code, to
authorize the deposit of fees assessed under the section to the re-named
Water Resource Management Account (formerly the Water Quality Fund) and
deletes references to the Water Quality Fund and Water Utility Fund. Makes
conforming changes and corrects an outdated reference to Section 50.001,
Water Code. 

SECTION 2. Amends Chapter 5F, Water Code, by adding Section 5.238, as
follows: 
 Sec. 5.238.  ADMINISTRATIVE ACCOUNT.  Authorizes a TNRCC Administrative
Account. This authority is being transferred from Section 17.075, Water
Code, and the fund renamed in order to correctly identify the agency to
which these funds are appropriated. 

SECTION 3. Amends Section 11.329(d), Water Code, to change the name of the
Water Rights Administration Fund to the Watermaster Administration
Account. 

SECTION 4. Amends Section 12.113(b), Water Code, to change a reference to
the Water Rights Administration Fund to the Watermaster Administration
Account and changes a reference to Subchapter F, Chapter 11, Water Code,
to correctly refer to Subchapter G. 

SECTION 5. Amends Section 13.453, Water Code, as follows:
 Sec. 13.453.  New Heading: COLLECTION AND DISPOSITION OF FEES. Authorizes
the deposit of fees for filing rate change requests and applications for
the sale, transfer or merger of certificates of convenience and necessity
to the Water Resource Management Account. 

SECTION 6. Amends Section 26.0135(h), Water Code, to change the deposition
of regional water quality assessment revenues from the Water Quality Fund
to the Water Resource Management Account. This section will expire under
its own terms as of August 31, 1998. The bill currently amends this
section as written without affecting the expiration date.  

SECTION 7. Amends Section 26.0291(c), Water Code, effective until
delegation of NPDES permit authority, to authorize the deposit of
wastewater inspection fees to the Water Resource Management Account in the
General Revenue Fund and deletes the reference to and the uses of the
Water Quality Fund. 

SECTION 8. Amends Sections 26.0291(a) and (c), Water Code, effective upon
delegation of NPDES permit authority, to authorize the use of wastewater
inspection fees to pay the TNRCC's expenses necessary to obtain and
administer the NPDES wastewater permit program, to authorize the deposit
of wastewater inspection fees to the Water Resource Management Account in
the General Revenue Fund and to delete references to and the uses of the
Water Quality Fund. 

SECTION 9. Amends Section 26.0301(e), Water Code, to authorize the deposit
of license and application fees for certification of wastewater operators
to the Commission Occupational Licensing Account and to delete the
reference to the Water Quality Fund. 

SECTION 10. Amends  Section 26.044(c), Water Code, to authorize the
deposit of fees for  certification of marine sewage disposal facilities to
the Water Resource Management Account and to delete a reference to a
special fund not in the General Revenue Fund. 

SECTION 11. Amends  Section 26.0461(h), Water Code, to authorize the
deposit of application fees for review of plans for development over the
Edwards Aquifer to the Water Resource Management Account in the State
Treasury to the credit of a special program to be used only for the
commission's Edwards Aquifer programs. 

SECTION 12. Amends Section 26.263(2), Water Code, to change the definition
of "account" for the purpose of this section to mean the Texas Spill
Response Account. 

SECTION 13. Amends Sections 26.264(f)(3) , Water Code, to delete "fund"
and insert "account." 

SECTION 14. Amends Sections 26.265, Water Code, as follows:
 Sec. 26.265.  New Heading: TEXAS SPILL RESPONSE ACCOUNT. Change
references to the Texas Spill Response Fund to the Texas Spill Response
Account, a dedicated account in the General Revenue Fund. Makes other
conforming changes. 

SECTION 15.  Amends Section 26.266(c), Water Code, to delete "fund" and
insert "account." 

SECTION 16. Amends Sections 26.346(c) and (e), Water Code, to change
references to the Petroleum Storage Tank Remediation Fund to the Petroleum
Storage Tank Remediation Account. 

SECTION 17. Amends Section 26.351(d), Water Code, to change a reference to
the Storage Tank Fund to the Waste Management Account in the General
Revenue Fund. 
 
SECTION 18. Amends Section 26.3511(a), Water Code, to change a reference
to the Petroleum Storage Tank Remediation Fund to the Petroleum Storage
Tank Remediation Account and change a reference to the Storage Tank Fund
to the Waste Management Account. 

SECTION 19. Amends Sections 26.3512, Water Code, as follows:
 Sec. 26.3512.  New Heading: OWNER OR OPERATOR RESPONSIBILITY; LIMITATIONS
ON ACCOUNT PAYMENTS FOR CORRECTIVE ACTION.  Change references to the
Petroleum Storage Tank Remediation Fund to the Petroleum Storage Tank
Remediation Account. Makes conforming changes. 

SECTION 20. Amends Sections 26.3513(i) and (k), Water Code, to change a
reference to the Petroleum Storage Tank Remediation Fund to the Petroleum
Storage Tank Remediation Account and change a reference to the Storage
Tank Fund to the Waste Management Account. 

SECTION 21. Amends Sections 26.355(c), (d), (h) and (i), Water Code, to
change references to the Storage Tank Fund to the Waste Management Account
and references to the Petroleum Storage Tank Remediation Fund to the
Petroleum Storage Tank Remediation Account. 

SECTION 22. Amends Section 26.3572(b), Water Code, to change a reference
to the Petroleum Storage Tank Remediation Fund to the Petroleum Storage
Tank Remediation Account. 

SECTION 23. Amends Section 26.3573, Water Code, as follows:
 Sec. 26.3573.  New Heading: PETROLEUM STORAGE TANK REMEDIATION ACCOUNT.
Change references to the Petroleum Storage Tank Remediation Fund to the
Petroleum Storage Tank Remediation Account, a dedicated account in the
General Revenue Fund; changes references to the term "fund" to the term
"account"; and changes the deposit of fees for the certification of
contractors from the Storage Tank Fund to the Commission Occupational
Licensing Account.  New Subsection (e) is added to authorize the
consolidation of appropriations and the transfer of revenues for
administration of the petroleum storage tank remediation program to the
Waste Management Account. Existing Subsections (e)-(p) are re-numbered
accordingly. 

SECTION 24. Amends  Section 26.35731, Water Code, to change references to
the Petroleum Storage Tank Remediation Fund to the Petroleum Storage Tank
Remediation Account and change  general references to the term "fund" to
the term "account". 

SECTION 25. Amends Sections 26.35735(a) and (c), Water Code, to change
references to the Petroleum Storage Tank Remediation Fund to the Petroleum
Storage Tank Remediation Account. 

SECTION 26. Amends Sections 26.3574(w)- (z), Water Code, to change
references to the Petroleum Storage Tank Remediation Fund to the Petroleum
Storage Tank Remediation Account and change general references to the term
"fund" to the term "account".  Subsection (x) of the section is amended to
correctly reflect that the authority under Government Code Section
403.092(c)(1) for the transfer of money from the General Revenue Fund to
the Petroleum Storage Tank Remediation Account is permissive and not
absolutely required by the section. 

SECTION 27. Amends Section 26.358, Water Code, as follows:
 Sec. 26.358.  New Heading: COLLECTION, USE AND DISPOSITION OF STORAGE
TANK FEES AND OTHER REVENUES.  Authorizes the deposit of storage tank fees
to the Waste Management Account, changes references to the Storage Tank
Fund to the Waste Management Account as appropriate, changes references to
the Petroleum Storage Tank Remediation Fund to the Petroleum Storage Tank
Remediation Account, and amends the authority for the use of storage tank
fees to reference the account to which the fees will be deposited. 

SECTION 28. Amends Section 26.361, Water Code, to change references to the
Petroleum Storage Tank Remediation Fund to the Petroleum Storage Tank
Remediation Account. 

SECTION 29. Amends Section 26.458(a), Water Code, to change the
disposition of fees collected from certified storage tank installers from
the Storage Tank Account to the Commission Occupational Licensing Account. 

SECTION 30. Amends  Section 32.014(b), Water Code, to change the
disposition of fees collected from licensed water well drillers from the
Water Well Drillers Fund to the Commission Occupational Licensing Account,
and deletes the Water Well Drillers Fund from the reference to the amount
of money under this section authorized for administrative purposes. 

SECTION 31. Amends Section 33.012(b), Water Code, to change the
disposition of fees collected from licensed water well pump installers
from the Water Well Drillers Fund to the Commission Occupational Licensing
Account. 

SECTION 32. Amends Section 34.005, Water Code, to change the disposition
of fees collected from licensed landscape irrigators from the Texas
Irrigators Fund to the Commission Occupational Licensing Account and
deletes a reference to the Texas Irrigators Fund relating to the
authorized uses of revenues collected under Chapter 34, Water Code. 

SECTION 33. Amends Section 341.034, Health and Safety Code, by adding new
Subsection (c) to authorize the deposit of fees collected for the
certification of operators of public water supply systems to the
Commission Occupational Licensing Account. 

SECTION 34. Amends Section 341.041, Health and Safety Code, by adding new
Subsection (c) to authorize the deposit of fees collected from public
water supply systems for the recovery of the costs of administration of
drinking water programs to the Water Resource Management Account. 

SECTION 35. Amends Section 361.014, Health and Safety Code, by amending
Subsections (a) and (c) and adding new Subsection (d) to update the
current citations to the Health and Safety Code and Transportation Code
for reference to the Texas Litter Abatement Act of 1981, change a
reference to the Waste Tire Recycling Fund to the Waste Tire Recycling
Account, and authorize the deposit of funds allocated for agency
operations and local government projects to the Waste Management Account
and the Solid Waste Disposal Account, respectively. 

SECTION 36. Amends  Section 361.027(c), Health and Safety Code, to
authorize the deposit of fees received from certified solid waste
technicians to the Commission Occupational Licensing Account. 

 SECTION 37. Amends Section 361.132, Health and Safety Code, as follows:

 Sec. 361.132.  New Heading: HAZARDOUS AND SOLID WASTE FEES; WASTE
MANAGEMENT ACCOUNT.  Redesignates the Hazardous and Solid Waste Fees Fund
as the Waste Management Account, a dedicated account in the General
Revenue Fund, authorizes the deposit of fees and other revenues assessed
under  Sections 361.134-361.137 and 361.140, Health and Safety Code, and
establishes the uses of revenues under Chapter 361D, Health and Safety
Code, consistent with those uses previously authorized from the  Hazardous
and Solid Waste Fees Fund. Clarifies Subsection (b) by reorganizing and
renumbering the subdivisions. 

SECTION 38. Amends Section 361.133, Health and Safety Code, as follow:

 Sec. 361.133.  New Heading: HAZARDOUS AND SOLID WASTE REMEDIATION FEE
ACCOUNT.  Renames the Hazardous and Solid Waste Remediation Fee Fund as
the Hazardous and Solid Waste Remediation Fee Account and designates it as
a dedicated account in the General Revenue Fund.  Makes conforming
changes. 

SECTION 39. Amends  Section 361.134(e), Health and Safety Code, to change
a reference to the Hazardous and Solid Waste Remediation Fee Fund to the
Hazardous and Solid Waste Remediation Fee Account. 

SECTION 40. Amends Section 361.136(i) and (l), Health and Safety Code, to
change the disposition of fee assessed under Section 361.136 from the
Hazardous and Solid Waste Fee Fund to the Waste Management Account and
from the Hazardous and Solid Waste Remediation Fee Fund to the Hazardous
and Solid Waste Remediation Fee Account. 

SECTION 41. Amends Section 361.137(d), Health and Safety Code, to change
the disposition of application fees assessed under Section 361.137 from
the Hazardous and Solid Waste Fee Fund to the Waste Management Account. 

SECTION 42. Amends Section 361.138(j), Health and Safety Code, to change
the disposition of fees assessed on the sale of lead-acid batteries from
the Hazardous and Solid Waste Remediation Fee Fund to the Hazardous and
Solid Waste Remediation Fee Account. 

SECTION 43. Amends Section 361.140(d), Health and Safety Code, to change
the disposition of penalties assessed for the late filing of reports
required under Section 361.140 from the Hazardous and Solid Waste
Remediation Fee Fund to the Hazardous and Solid Waste Remediation Fee
Account. 

SECTION 44. Amends Section 361.195, Health and Safety Code, by amending
the section heading and Subsection (a) as follows: 
 Sec. 361.195.  New Heading: PAYMENTS FROM HAZARDOUS AND SOLID WASTE
REMEDIATION FEE ACCOUNT. Changes an outdated reference to the Hazardous
Waste Disposal Fee Fund to refer to the Hazardous and Solid Waste
Remediation Fee Account. 

SECTION 45. Amends Sections 361.201(b) and (c), Health and Safety Code, to
change an outdated reference to the Hazardous Waste Disposal Fee Fund to
refer to the Hazardous and Solid Waste Remediation Fee Account. 

SECTION 46. Amends Section 361.471(l), Health and Safety Code, to amend
the definition of "fund" to mean the Waste Tire Recycling Account. 

SECTION 47. Amends Sections 361.474 and 361.475, Health and Safety Code,
by amending Sections 361.474 and 361.475, amending the heading of Section
361.475 and adding new Subsection 361.475(k), as follows: 
 Sec. 361.474.  DISPOSITION OF FEES AND PENALTIES.  Changes the reference
to the Waste Tire Recycling Fund to the Waste Tire Recycling Account. 
 Sec. 361.475.  New Heading: WASTE TIRE RECYCLING ACCOUNT.  Changes
references to the term "fund" to read "account" and adds a new
Subsection(k) to authorize the  transfer of amounts specified by law to be
expended for administration of the waste tire program to the Waste
Management Account for the purpose of consolidation of appropriations.  

SECTION 48.  Amends Section 361.477(j), Health and Safety Code, to change
references of "fund" to "account." 

SECTION 49.  Amends Section 361.4771(e), Health and Safety Code, to change
references of "fund"  to "account." 

SECTION 50. Amends Section 361.4774, Health and Safety Code, by amending
the heading and amending Subsections (a) and (b) as follows: 
 Sec. 361.4774.  New Heading: LIMITED USE OF WASTE TIRE RECYCLING ACCOUNT;
GRANTS, REIMBURSEMENT, AND ADMINISTRATIVE EXPENSES.  Corrects or changes
references to the Waste Tire Recovery Fund and the Waste Tire Recycling
Fund to the Waste Tire Recycling Account. 

SECTION 51. Amends Section 361.478(a), Health and Safety Code, to change a
reference to the Waste Tire Recycling Fund to the Waste Tire Recycling
Account. 

SECTION 52. Amends Section 361.479(e), Health and Safety Code, to change a
reference to the Waste Tire Recycling Fund to the Waste Tire Recycling
Account. 

SECTION 53. Amends Section 361.483(c), Health and Safety Code, to change a
reference to the Waste Tire Recycling Fund to the Waste Tire Recycling
Account. 

SECTION 54. Amends Sections 361.489(a) and (e), Health and Safety Code, to
change references to the Waste Tire Recycling Fund to the Waste Tire
Recycling Account. 

SECTION 55. Amends Section 361.498, Health and Safety Code, to change a
reference to the Waste Tire Recycling Fund to the Waste Tire Recycling
Account. 

SECTION 56. Amends Section 361.499, Health and Safety Code, to change a
reference to the Waste Tire Recycling Fund to the Waste Tire Recycling
Account. 

SECTION 57. Amends Section 361.604(e), Health and Safety Code, to change
the disposition of application fees and costs recovered under the
voluntary cleanup program from the Hazardous and Solid Waste Remediation
Fee Fund to the waste management account.  

SECTION 58. Amends Section 366.013, Health and Safety Code, by adding new
Subsection (c) to authorize the deposit of fees collected for the training
of on-site sewage disposal system installers, authorized agents and
designated representatives to the Commission Occupational Licensing
Account. 

SECTION 59. Amends Section 366.014, Health and Safety Code, by adding new
Subsection (c) to authorize the deposit of fees received for certification
of designated representatives under the on-site sewage disposal system
program to the Commission Occupational Licensing Account. 

SECTION 60. Amends Section 366.058, Health and Safety Code, by adding new
Subsection (c) that authorizes the deposit of  on-site sewage disposal
system permit fees received by TNRCC to the Water Resource Management
Account. 

SECTION 61. Amends Section 366.059, Health and Safety Code, by adding new
Subsection (c) that authorizes the deposit of fees received from units of
local government for administrative costs relating to permitting of
on-site sewage disposal systems to the Water Resource Management Account. 

SECTION 62. Amends Section 366.074, Health and Safety Code, to authorize
the deposit of fees collected for the registration of installers of
on-site sewage disposal systems to the Commission Occupational Licensing
Account. 
 
SECTION 63. Amends Section 370.008(d), Health and Safety Code, to change
the deposition of fees collected for the reporting of toxic chemical
releases from the Hazardous and Solid Waste Fee Fund to the Waste
Management Account. 

SECTION 64. Amends the heading of Chapter 371D, Health and Safety Code, as
follows: 

 Subchapter D. USED OIL RECYCLING ACCOUNT; FEES.

SECTION 65. Amends Sections 371.0245(e), Health and Safety Code, to change
the reference to the Used Oil Recycling Fund to the Used Oil Recycling
Account. 

SECTION 66. Amends Sections 371.0246(d), Health and Safety Code, to change
references to the Used Oil Recycling Fund to the Used Oil Recycling
Account. 

SECTION 67. Amends Sections 371.043(b), Health and Safety Code, to change
the reference to the Used Oil Recycling Fund to the Used Oil Recycling
Account. 

SECTION 68. Amends Sections 371.061, Health and Safety Code, by amending
the section heading, amending Subsections (a), (b), (c) and (e) and adding
new Subsection (f) as follows: 

Sec. 371.061.  New Heading: USED OIL RECYCLING ACCOUNT.  Redesignates the
Used Oil Recycling Fund as the Used Oil Recycling Account in the General
Revenue Fund, changes references to the term "fund" to "account", and
authorizes the transfer of amounts specified by law, including legislative
appropriations, for administration of the used oil program to the Waste
Management Account. 

SECTION 69. Amends Sections 371.062(l), Health and Safety Code, to change
the reference to the Used Oil Recycling Fund to the Used Oil Recycling
Account. 

SECTION 70. Amends Sections 371.063, Health and Safety Code, to change the
reference to the Used oil Recycling Fund to the Used Oil Recycling
Account. 

SECTION 71. Amends Section 372.002(d), Health and Safety Code, to
authorize the deposit of fees collected for the certification of water
saving performance standards of plumbing fixtures to the Water Resource
Management Account. 

SECTION 72. Amends Chapter 382, Subchapter B , Health and Safety Code, by
adding new Section 382.0335 to re-designate as the Air Control Account the
Air Control Board Fund, as originally authorized by Section 381.016,
Health and Safety Code.  Section 381.016 was repealed by Acts 1991, 72nd
Legislature, 1st Called Session, Ch. 3, Section 1.098(a).  

SECTION 73. Amends Section 382.037(k), Health and Safety Code, to change
the disposition of fees received for the exemption of certain vehicles
from emission inspection requirements from the Clean Air Fund to the Clean
Air Account in the General Revenue Fund. 

SECTION 74. Amends Section 382.0622(b), Health and Safety Code, to change
the disposition of clean air fees from the Clean Air Fund to the Clean Air
Account. 

SECTION 75. Amends Section 401.412(f), Health and Safety Code, to change
the disposition of radioactive substance fees from the Radioactive
Substance Fee Fund to the waste management account in the General Revenue
Fund. 

SECTION 76. Establishes, effective September 1, 1997 the designated name
changes for the various accounts consistent with the provisions of the
bill and authorizes the transfer of any unexpended balances from accounts
abolished by the bill to the appropriate account as designated. 

SECTION 77. Establishes the intent of this Act that accounts and funds be
consolidated for the purpose of simplification of the TNRCC accounting
system and appropriation structure, but that this Act authorizes no
substantive change in or addition to the uses of revenues set aside by law
for  specific purposes nor amends any current dedication of revenues by
law. 

SECTION 78. Provides that an appropriation made by the 75th Legislature
from an account abolished or consolidated under the act is an
appropriation from the account established by the bill as the replacement
for the account abolished or consolidated. 

SECTION 79. Effective date: September 1, 1997.

SECTION 80.Emergency clause.



COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill directed fees collected under 26.0461(h), Water Code to
be deposited to the credit of the water resource management account.  The
substitute directs these fees to be deposited to the credit of a special
program to be used only for the commission's Edwards Aquifer programs. 

The original bill directed fees collected under Section 361.604(e) to be
deposited to the credit of the hazardous and solid waste remediation fee
account.  The substitute directs these fees to be deposited to the credit
of the waste management account. 

The original bill directs fees under section 401.412(f) to be deposited in
the water management account.  The substitute corrects this to state that
these fees should be deposited into the waste management account.