By:  Brown                                            S.B. No. 1340

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to certain fees related to water quality.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 26.0291, Water Code (effective until

 1-4     delegation of NPDES permit authority), is amended by amending

 1-5     Subsections (a), (b), and (c) and adding Subsection (f) to read as

 1-6     follows:

 1-7           (a)  An annual waste treatment inspection fee is imposed on

 1-8     each permittee for each waste discharge permit held by the

 1-9     permittee.  The fee is to supplement any other funds available to

1-10     pay expenses of the commission in inspecting waste treatment

1-11     facilities and enforcing the laws of the state, and the rules of

1-12     the commission, governing waste discharge, [and] waste treatment

1-13     facilities, and the quality of the water resources of the state.

1-14     The fee for each year is imposed on each permit in effect during

1-15     any part of the year.

1-16           (b)  The commission, by rule, shall adopt a fee schedule for

1-17     determining the amount of the fee to be charged.  The amount of the

1-18     fee may not exceed $25,000 [$11,000] for each waste discharge

1-19     permit held by a permittee.  In determining the amount of a fee

1-20     under this section, the commission may consider permitting factors

1-21     such as flow volume, toxic pollutant potential, level of

1-22     traditional pollutants, and heat load.  The commission also may

1-23     consider the designated uses and segment ranking classification of

 2-1     the water affected by discharges from the permitted facility.

 2-2           (c)  The fees collected under this section shall be deposited

 2-3     in a special fund in the state treasury to be known as the water

 2-4     quality fund.  Money in the fund shall be used as follows:

 2-5                 (1)  to supplement any other funds available for paying

 2-6     expenses of the commission in carrying out water quality programs

 2-7     authorized under this chapter and inspecting waste treatment

 2-8     facilities;

 2-9                 (2)  to pay for the issuance and renewal of

2-10     certificates of competency under and to administer Section 26.0301

2-11     of this code; and

2-12                 (3)  to pay for processing plans or amendments to plans

2-13     and inspecting the construction of projects under those plans

2-14     pursuant to Section 26.0461 of this code and rules of the

2-15     commission adopted under Sections 26.046 and 26.0461 of this code.

2-16           (f)  The commission may consolidate any fee assessed against

2-17     a wastewater permit holder under Section 26.0135 with the

2-18     assessment of a wastewater inspection fee authorized under this

2-19     section.  In consolidating these assessments, the commission may

2-20     not recover under Section 26.0135(h) revenues in excess of the

2-21     amounts authorized by that section.  The commission also shall

2-22     ensure that any revenues collected from wastewater permit holders

2-23     under Section 26.0135 are allocated to meet the purposes of the

2-24     regional water quality assessment program authorized under that

2-25     section.

 3-1           SECTION 2.  Section 26.0291, Water Code (effective upon

 3-2     delegation of NPDES permit authority), is amended by amending

 3-3     Subsections (a), (b), and (c) and adding Subsection (f) to read as

 3-4     follows:

 3-5           (a)  An annual waste treatment inspection fee is imposed on

 3-6     each permittee for each waste discharge permit held by the

 3-7     permittee.  The fee is to supplement any other funds available to

 3-8     pay expenses of the commission in inspecting waste treatment

 3-9     facilities and enforcing the laws of the state and the rules of the

3-10     commission governing waste discharge, [and] waste treatment

3-11     facilities, and the quality of the water resources of the state.

3-12     The fee for each year is imposed on each permit in effect during

3-13     any part of the year.

3-14           (b)  The commission by rule shall adopt a fee schedule for

3-15     determining the amount of the fee to be charged.  The amount of the

3-16     fee may not exceed $40,000 [$25,000] for each waste discharge

3-17     permit held by a permittee.  In determining the amount of a fee

3-18     under this section, the commission may consider permitting factors

3-19     such as flow volume, toxic pollutant potential, level of

3-20     traditional pollutant, and heat load.  The commission may consider

3-21     the designated uses and segment ranking classification of the water

3-22     affected by discharges from the permitted facility.  Finally, the

3-23     commission also may consider the expenses necessary to obtain and

3-24     administer the NPDES program.  The commission shall not adopt any

3-25     rule designed to increase the fee imposed under this section on a

 4-1     treatment works owned by a local government, as those terms are

 4-2     defined in Section 26.001 of this code, for the purpose of paying

 4-3     the additional expenses necessary to obtain and administer the

 4-4     NPDES program, for two years after the date of delegation of the

 4-5     NPDES program [before August 31, 1999].

 4-6           (c)  The fees collected under this section shall be deposited

 4-7     in a special fund in the state treasury to be known as the water

 4-8     quality fund.  Money in the fund shall be used as follows:

 4-9                 (1)  to supplement any other funds available for paying

4-10     expenses of the commission in carrying out water quality programs

4-11     authorized under this chapter and inspecting waste treatment

4-12     facilities;

4-13                 (2)  to pay for the issuance and renewal of

4-14     certificates of competency under and to administer Section 26.0301

4-15     of this code;

4-16                 (3)  to pay for processing plans or amendments to plans

4-17     and inspecting the construction of projects under those plans

4-18     pursuant to Section 26.0461 of this code and rules of the

4-19     commission adopted under Sections 26.046 and 26.0461 of this code;

4-20     and

4-21                 (4)  to pay for any expenses of the commission

4-22     necessary to obtain and administer the NPDES program in lieu of the

4-23     federal government.

4-24           (f)  The commission may consolidate any fee assessed against

4-25     a wastewater permit holder under Section 26.0135 with the

 5-1     assessment of a wastewater inspection fee authorized under this

 5-2     section.  In consolidating these assessments, the commission may

 5-3     not recover under Section 26.0135(h) revenues in excess of the

 5-4     amounts authorized by that section.  The commission also shall

 5-5     ensure that any revenues collected from wastewater permit holders

 5-6     under Section 26.0135 are allocated to meet the purposes of the

 5-7     regional water quality assessment program authorized under that

 5-8     section.

 5-9           SECTION 3.  Section 341.041, Health and Safety Code, is

5-10     amended to read as follows:

5-11           Sec. 341.041.  FEES.  (a)  The commission by rule may charge

5-12     fees to a person who owns, operates, or maintains a public drinking

5-13     water supply system.  The fee is to supplement other money

5-14     available to pay the commission's expenses for:

5-15                 (1)  [recover the costs of] public drinking water

5-16     supply system programs or services authorized by this subchapter or

5-17     performed pursuant to the requirements of the federal Safe Drinking

5-18     Water Act (42 U.S.C. Section 300f et seq.);

5-19                 (2)  oversight of and technical assistance to water and

5-20     wastewater utilities to ensure the availability and delivery of

5-21     safe and adequate water and wastewater services under Chapter 13,

5-22     Water Code;

5-23                 (3)  technical assistance to groundwater conservation

5-24     districts organized and operating under Chapter 36, Water Code;

5-25                 (4)  water resource management programs and the

 6-1     regulation of water rights authorized under the Water Code; and

 6-2                 (5)  oversight of and technical assistance to

 6-3     conservation and reclamation districts under the Water Code other

 6-4     than a district described by Subdivision (3).

 6-5           (b)  The commission may establish a schedule of fees.  The

 6-6     amount of the fees may not exceed the reasonable costs of

 6-7     administering the programs and services authorized in this section

 6-8     [subchapter] or the federal Safe Drinking Water Act.

 6-9           (c) [(b)]  The commission by rule may assess penalties and

6-10     interest for late payment of fees owed by persons who own, operate,

6-11     or maintain public drinking water supply systems.  Penalties and

6-12     interest established under this section may not exceed the rates

6-13     established for delinquent taxes under  Sections 111.060 and

6-14     111.061, Tax Code.

6-15           SECTION 4.  Subsection (f), Section 26.0291, Water Code

6-16     (effective until delegation of NPDES permit authority), as added by

6-17     Section 1 of this Act, and Subsection (f), Section 26.0291, Water

6-18     Code (effective upon delegation of NPDES permit authority), as

6-19     added by Section 2 of this Act, take effect only if the 75th

6-20     Legislature enacts legislation that becomes law extending the

6-21     expiration date of Subsection (h), Section 26.0135, Water Code,

6-22     relating to the regional assessment of water quality, beyond

6-23     January 1, 1999.  If Subsection (h), Section 26.0135, Water Code,

6-24     is not extended beyond that date, Subsection (f), Section 26.0291,

6-25     Water Code, as added by Sections 1 and 2 of this Act, has no

 7-1     effect.

 7-2           SECTION 5.  Except as provided by this section, the total

 7-3     increase in the annual fees authorized under Section 26.0291, Water

 7-4     Code, as amended by this Act, for any permit holder may not exceed

 7-5     $300,000 for all permits subject to an assessment as of the

 7-6     effective date of this Act.  The Texas Natural Resource

 7-7     Conservation Commission by rule may adjust this limit to account

 7-8     for the construction or acquisition of additional wastewater

 7-9     facilities subject to a fee.  Any adjustment must be consistent

7-10     with and proportional to the number and capacity of facilities

7-11     acquired.

7-12           SECTION 6.  Except as provided by this section, any increase

7-13     in annual fee rates adopted by the Texas Natural Resource

7-14     Conservation Commission for the fee authorized under Section

7-15     341.041, Health and Safety Code, as amended by this Act, after the

7-16     effective date of this Act, may not exceed a total of $500,000 for

7-17     the largest public water system subject to the fee at the time the

7-18     annual assessments of fees under Section 341.041, Health and Safety

7-19     Code, are made.  The commission by rule may adjust this limit to

7-20     account for growth or expansion of the system.  Any adjustment must

7-21     be consistent with and proportional to the number of connections

7-22     and change in capacity of the system.

7-23           SECTION 7.  The importance of this legislation and the

7-24     crowded condition of the calendars in both houses create an

7-25     emergency and an imperative public necessity that the

 8-1     constitutional rule requiring bills to be read on three several

 8-2     days in each house be suspended, and this rule is hereby suspended,

 8-3     and that this Act take effect and be in force from and after its

 8-4     passage, and it is so enacted.