1-1     By:  Brown                                            S.B. No. 1340

 1-2           (In the Senate - Filed March 13, 1997; March 18, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     May 2, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 7, Nays 0; May 2, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1340                   By:  Brown

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to certain fees related to water quality.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 26.0291, Water Code (effective until

1-13     delegation of NPDES permit authority), is amended by amending

1-14     Subsections (a), (b), and (c) and adding Subsection (f) to read as

1-15     follows:

1-16           (a)  An annual waste treatment inspection fee is imposed on

1-17     each permittee for each waste discharge permit held by the

1-18     permittee.  The fee is to supplement any other funds available to

1-19     pay expenses of the commission in inspecting waste treatment

1-20     facilities and enforcing the laws of the state, and the rules of

1-21     the commission, governing waste discharge, [and] waste treatment

1-22     facilities, and the quality of the water resources of the state.

1-23     The fee for each year is imposed on each permit in effect during

1-24     any part of the year.

1-25           (b)  The commission, by rule, shall adopt a fee schedule for

1-26     determining the amount of the fee to be charged.  The amount of the

1-27     fee may not exceed $25,000 [$11,000] for each waste discharge

1-28     permit held by a permittee.  In determining the amount of a fee

1-29     under this section, the commission may consider permitting factors

1-30     such as flow volume, toxic pollutant potential, level of

1-31     traditional pollutants, and heat load.  The commission also may

1-32     consider the designated uses and segment ranking classification of

1-33     the water affected by discharges from the permitted facility.

1-34           (c)  The fees collected under this section shall be deposited

1-35     in a special fund in the state treasury to be known as the water

1-36     quality fund.  Money in the fund shall be used as follows:

1-37                 (1)  to supplement any other funds available for paying

1-38     expenses of the commission in carrying out water quality programs

1-39     authorized under this chapter and inspecting waste treatment

1-40     facilities;

1-41                 (2)  to pay for the issuance and renewal of

1-42     certificates of competency under and to administer Section 26.0301

1-43     of this code; and

1-44                 (3)  to pay for processing plans or amendments to plans

1-45     and inspecting the construction of projects under those plans

1-46     pursuant to Section 26.0461 of this code and rules of the

1-47     commission adopted under Sections 26.046 and 26.0461 of this code.

1-48           (f)  The commission may consolidate any fee assessed against

1-49     a wastewater permit holder under Section 26.0135 with the

1-50     assessment of a wastewater inspection fee authorized under this

1-51     section.  In consolidating these assessments, the commission may

1-52     not recover under Section 26.0135(h) revenues in excess of the

1-53     amounts authorized by that section.  The commission also shall

1-54     ensure that any revenues collected from wastewater permit holders

1-55     under Section 26.0135 are allocated to meet the purposes of the

1-56     regional water quality assessment program authorized under that

1-57     section.

1-58           SECTION 2.  Section 26.0291, Water Code (effective upon

1-59     delegation of NPDES permit authority), is amended by amending

1-60     Subsections (a), (b), and (c) and adding Subsection (f) to read as

1-61     follows:

1-62           (a)  An annual waste treatment inspection fee is imposed on

1-63     each permittee for each waste discharge permit held by the

1-64     permittee.  The fee is to supplement any other funds available to

 2-1     pay expenses of the commission in inspecting waste treatment

 2-2     facilities and enforcing the laws of the state and the rules of the

 2-3     commission governing waste discharge, [and] waste treatment

 2-4     facilities, and the quality of the water resources of the state.

 2-5     The fee for each year is imposed on each permit in effect during

 2-6     any part of the year.

 2-7           (b)  The commission by rule shall adopt a fee schedule for

 2-8     determining the amount of the fee to be charged.  The amount of the

 2-9     fee may not exceed $40,000 [$25,000] for each waste discharge

2-10     permit held by a permittee.  In determining the amount of a fee

2-11     under this section, the commission may consider permitting factors

2-12     such as flow volume, toxic pollutant potential, level of

2-13     traditional pollutant, and heat load.  The commission may consider

2-14     the designated uses and segment ranking classification of the water

2-15     affected by discharges from the permitted facility.  Finally, the

2-16     commission also may consider the expenses necessary to obtain and

2-17     administer the NPDES program.  The commission shall not adopt any

2-18     rule designed to increase the fee imposed under this section on a

2-19     treatment works owned by a local government, as those terms are

2-20     defined in Section 26.001 of this code, for the purpose of paying

2-21     the additional expenses necessary to obtain and administer the

2-22     NPDES program, for two years after the date of delegation of the

2-23     NPDES program [before August 31, 1999].

2-24           (c)  The fees collected under this section shall be deposited

2-25     in a special fund in the state treasury to be known as the water

2-26     quality fund.  Money in the fund shall be used as follows:

2-27                 (1)  to supplement any other funds available for paying

2-28     expenses of the commission in carrying out water quality programs

2-29     authorized under this chapter and inspecting waste treatment

2-30     facilities;

2-31                 (2)  to pay for the issuance and renewal of

2-32     certificates of competency under and to administer Section 26.0301

2-33     of this code;

2-34                 (3)  to pay for processing plans or amendments to plans

2-35     and inspecting the construction of projects under those plans

2-36     pursuant to Section 26.0461 of this code and rules of the

2-37     commission adopted under Sections 26.046 and 26.0461 of this code;

2-38     and

2-39                 (4)  to pay for any expenses of the commission

2-40     necessary to obtain and administer the NPDES program in lieu of the

2-41     federal government.

2-42           (f)  The commission may consolidate any fee assessed against

2-43     a wastewater permit holder under Section 26.0135 with the

2-44     assessment of a wastewater inspection fee authorized under this

2-45     section.  In consolidating these assessments, the commission may

2-46     not recover under Section 26.0135(h) revenues in excess of the

2-47     amounts authorized by that section.  The commission also shall

2-48     ensure that any revenues collected from wastewater permit holders

2-49     under Section 26.0135 are allocated to meet the purposes of the

2-50     regional water quality assessment program authorized under that

2-51     section.

2-52           SECTION 3.  Section 341.041, Health and Safety Code, is

2-53     amended to read as follows:

2-54           Sec. 341.041.  FEES.  (a)  The commission by rule may charge

2-55     fees to a person who owns, operates, or maintains a public drinking

2-56     water supply system.  The fee is to supplement other money

2-57     available to pay the commission's expenses for:

2-58                 (1)  [recover the costs of] public drinking water

2-59     supply system programs or services authorized by this subchapter or

2-60     performed pursuant to the requirements of the federal Safe Drinking

2-61     Water Act (42 U.S.C. Section 300f et seq.);

2-62                 (2)  oversight of and technical assistance to water and

2-63     wastewater utilities to ensure the availability and delivery of

2-64     safe and adequate water and wastewater services under Chapter 13,

2-65     Water Code;

2-66                 (3)  technical assistance to ground water conservation

2-67     districts organized and operating under Chapter 36, Water Code;

2-68                 (4)  water resource management programs and the

2-69     regulation of water rights authorized under the Water Code; and

 3-1                 (5)  oversight of and technical assistance to

 3-2     conservation and reclamation districts under the Water Code other

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

 3-4           (b)  The commission may establish a schedule of fees.  The

 3-5     amount of the fees may not exceed the reasonable costs of

 3-6     administering the programs and services authorized in this section

 3-7     [subchapter] or the federal Safe Drinking Water Act.

 3-8           (c) [(b)]  The commission by rule may assess penalties and

 3-9     interest for late payment of fees owed by persons who own, operate,

3-10     or maintain public drinking water supply systems.  Penalties and

3-11     interest established under this section may not exceed the rates

3-12     established for delinquent taxes under  Sections 111.060 and

3-13     111.061, Tax Code.

3-14           SECTION 4.  Subsection (f), Section 26.0291, Water Code

3-15     (effective until delegation of NPDES permit authority), as added by

3-16     Section 1 of this Act, and Subsection (f), Section 26.0291, Water

3-17     Code (effective upon delegation of NPDES permit authority), as

3-18     added by Section 2 of this Act, take effect only if the 75th

3-19     Legislature enacts legislation that becomes law extending the

3-20     expiration date of Subsection (h), Section 26.0135, Water Code,

3-21     relating to the regional assessment of water quality, beyond

3-22     January 1, 1999.  If Subsection (h), Section 26.0135, Water Code,

3-23     is not extended beyond that date, Subsection (f), Section 26.0291,

3-24     Water Code, as added by Sections 1 and 2 of this Act, has no

3-25     effect.

3-26           SECTION 5.  Except as provided by this section, the total

3-27     increase in the annual fees authorized under Section 26.0291, Water

3-28     Code, as amended by this Act, for any permit holder may not exceed

3-29     $300,000 for all permits subject to an assessment as of the

3-30     effective date of this Act.  The Texas Natural Resource

3-31     Conservation Commission by rule may adjust this limit to account

3-32     for the construction or acquisition of additional wastewater

3-33     facilities subject to a fee.  Any adjustment must be consistent

3-34     with and proportional to the number and capacity of facilities

3-35     acquired.

3-36           SECTION 6.  Except as provided by this section, any increase

3-37     in annual fee rates adopted by the Texas Natural Resource

3-38     Conservation Commission for the fee authorized under Section

3-39     341.041, Health and Safety Code, as amended by this Act, after the

3-40     effective date of this Act, may not exceed a total of $500,000 for

3-41     the largest public water system subject to the fee at the time the

3-42     annual assessments of fees under Section 341.041, Health and Safety

3-43     Code, are made.  The commission by rule may adjust this limit to

3-44     account for growth or expansion of the system.  Any adjustment must

3-45     be consistent with and proportional to the number of connections

3-46     and change in capacity of the system.

3-47           SECTION 7.  The importance of this legislation and the

3-48     crowded condition of the calendars in both houses create an

3-49     emergency and an imperative public necessity that the

3-50     constitutional rule requiring bills to be read on three several

3-51     days in each house be suspended, and this rule is hereby suspended,

3-52     and that this Act take effect and be in force from and after its

3-53     passage, and it is so enacted.

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