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

1-24     the water affected by discharges from the permitted facility.

 2-1           (c)  The fees collected under this section shall be deposited

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

 2-3     quality fund.  Money in the fund shall be used as follows:

 2-4                 (1)  to supplement any other funds available for paying

 2-5     expenses of the commission in carrying out water quality programs

 2-6     authorized under this chapter and inspecting waste treatment

 2-7     facilities;

 2-8                 (2)  to pay for the issuance and renewal of

 2-9     certificates of competency under and to administer Section 26.0301

2-10     of this code; and

2-11                 (3)  to pay for processing plans or amendments to plans

2-12     and inspecting the construction of projects under those plans

2-13     pursuant to Section 26.0461 of this code and rules of the

2-14     commission adopted under Sections 26.046 and 26.0461 of this code.

2-15           (f)  The commission may consolidate any fee assessed against

2-16     a wastewater permit holder under Section 26.0135 with the

2-17     assessment of a wastewater inspection fee authorized under this

2-18     section.  In consolidating these assessments, the commission may

2-19     not recover under Section 26.0135(h) revenues in excess of the

2-20     amounts authorized by that section.  The commission also shall

2-21     ensure that any revenues collected from wastewater permit holders

2-22     under Section 26.0135 are allocated to meet the purposes of the

2-23     regional water quality assessment program authorized under that

2-24     section.

2-25           SECTION 2.  Section 26.0291, Water Code (effective upon

2-26     delegation of NPDES permit authority), is amended by amending

2-27     Subsections (a), (b), and (c) and adding Subsection (f) to read as

 3-1     follows:

 3-2           (a)  An annual waste treatment inspection fee is imposed on

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

 3-4     permittee.  The fee is to supplement any other funds available to

 3-5     pay expenses of the commission in inspecting waste treatment

 3-6     facilities and enforcing the laws of the state and the rules of the

 3-7     commission governing waste discharge, [and] waste treatment

 3-8     facilities, and the quality of the water resources of the state.

 3-9     The fee for each year is imposed on each permit in effect during

3-10     any part of the year.

3-11           (b)  The commission by rule shall adopt a fee schedule for

3-12     determining the amount of the fee to be charged.  The amount of the

3-13     fee may not exceed $40,000 [$25,000] for each waste discharge

3-14     permit held by a permittee.  In determining the amount of a fee

3-15     under this section, the commission may consider permitting factors

3-16     such as flow volume, toxic pollutant potential, level of

3-17     traditional pollutant, and heat load.  The commission may consider

3-18     the designated uses and segment ranking classification of the water

3-19     affected by discharges from the permitted facility.  Finally, the

3-20     commission also may consider the expenses necessary to obtain and

3-21     administer the NPDES program.  The commission shall not adopt any

3-22     rule designed to increase the fee imposed under this section on a

3-23     treatment works owned by a local government, as those terms are

3-24     defined in Section 26.001 of this code, for the purpose of paying

3-25     the additional expenses necessary to obtain and administer the

3-26     NPDES program, for two years after the date of delegation of the

3-27     NPDES program [before August 31, 1999].

 4-1           (c)  The fees collected under this section shall be deposited

 4-2     in a special fund in the state treasury to be known as the water

 4-3     quality fund.  Money in the fund shall be used as follows:

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

 4-5     expenses of the commission in carrying out water quality programs

 4-6     authorized under this chapter and inspecting waste treatment

 4-7     facilities;

 4-8                 (2)  to pay for the issuance and renewal of

 4-9     certificates of competency under and to administer Section 26.0301

4-10     of this code;

4-11                 (3)  to pay for processing plans or amendments to plans

4-12     and inspecting the construction of projects under those plans

4-13     pursuant to Section 26.0461 of this code and rules of the

4-14     commission adopted under Sections 26.046 and 26.0461 of this code;

4-15     and

4-16                 (4)  to pay for any expenses of the commission

4-17     necessary to obtain and administer the NPDES program in lieu of the

4-18     federal government.

4-19           (f)  The commission may consolidate any fee assessed against

4-20     a wastewater permit holder under Section 26.0135 with the

4-21     assessment of a wastewater inspection fee authorized under this

4-22     section.  In consolidating these assessments, the commission may

4-23     not recover under Section 26.0135(h) revenues in excess of the

4-24     amounts authorized by that section.  The commission also shall

4-25     ensure that any revenues collected from wastewater permit holders

4-26     under Section 26.0135 are allocated to meet the purposes of the

4-27     regional water quality assessment program authorized under that

 5-1     section.

 5-2           SECTION 3.  Section 341.041, Health and Safety Code, is

 5-3     amended to read as follows:

 5-4           Sec. 341.041.  FEES.  (a)  The commission by rule may charge

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

 5-6     water supply system.  The fee is to supplement other money

 5-7     available to pay the commission's expenses for:

 5-8                 (1)  [recover the costs of] public drinking water

 5-9     supply system programs or services authorized by this subchapter or

5-10     performed pursuant to the requirements of the federal Safe Drinking

5-11     Water Act (42 U.S.C. Section 300f et seq.);

5-12                 (2)  oversight of and technical assistance to water and

5-13     wastewater utilities to ensure the availability and delivery of

5-14     safe and adequate water and wastewater services under Chapter 13,

5-15     Water Code;

5-16                 (3)  technical assistance to groundwater conservation

5-17     districts organized and operating under Chapter 36, Water Code;

5-18                 (4)  water resource management programs and the

5-19     regulation of water rights authorized under the Water Code; and

5-20                 (5)  oversight of and technical assistance to

5-21     conservation and reclamation districts under the Water Code other

5-22     than a district described by Subdivision (3).

5-23           (b)  The commission may establish a schedule of fees.  The

5-24     amount of the fees may not exceed the reasonable costs of

5-25     administering the programs and services authorized in this section

5-26     [subchapter] or the federal Safe Drinking Water Act.

5-27           (c) [(b)]  The commission by rule may assess penalties and

 6-1     interest for late payment of fees owed by persons who own, operate,

 6-2     or maintain public drinking water supply systems.  Penalties and

 6-3     interest established under this section may not exceed the rates

 6-4     established for delinquent taxes under  Sections 111.060 and

 6-5     111.061, Tax Code.

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

 6-7     (effective until delegation of NPDES permit authority), as added by

 6-8     Section 1 of this Act, and Subsection (f), Section 26.0291, Water

 6-9     Code (effective upon delegation of NPDES permit authority), as

6-10     added by Section 2 of this Act, take effect only if the 75th

6-11     Legislature enacts legislation that becomes law extending the

6-12     expiration date of Subsection (h), Section 26.0135, Water Code,

6-13     relating to the regional assessment of water quality, beyond

6-14     January 1, 1999.  If Subsection (h), Section 26.0135, Water Code,

6-15     is not extended beyond that date, Subsection (f), Section 26.0291,

6-16     Water Code, as added by Sections 1 and 2 of this Act, has no

6-17     effect.

6-18           SECTION 5.  Except as provided by this section, the total

6-19     increase in the annual fees authorized under Section 26.0291, Water

6-20     Code, as amended by this Act, for any permit holder may not exceed

6-21     $300,000 for all permits subject to an assessment as of the

6-22     effective date of this Act.  The Texas Natural Resource

6-23     Conservation Commission by rule may adjust this limit to account

6-24     for the construction or acquisition of additional wastewater

6-25     facilities subject to a fee.  Any adjustment must be consistent

6-26     with and proportional to the number and capacity of facilities

6-27     acquired.

 7-1           SECTION 6.  Except as provided by this section, any increase

 7-2     in annual fee rates adopted by the Texas Natural Resource

 7-3     Conservation Commission for the fee authorized under Section

 7-4     341.041, Health and Safety Code, as amended by this Act, after the

 7-5     effective date of this Act, may not exceed a total of $500,000 for

 7-6     the largest public water system subject to the fee at the time the

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

 7-8     Code, are made.  The commission by rule may adjust this limit to

 7-9     account for growth or expansion of the system.  Any adjustment must

7-10     be consistent with and proportional to the number of connections

7-11     and change in capacity of the system.

7-12           SECTION 7.  The importance of this legislation and the

7-13     crowded condition of the calendars in both houses create an

7-14     emergency and an imperative public necessity that the

7-15     constitutional rule requiring bills to be read on three several

7-16     days in each house be suspended, and this rule is hereby suspended,

7-17     and that this Act take effect and be in force from and after its

7-18     passage, and it is so enacted.