SRC-DPW S.B. 1862 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1862
76R11809 MI-FBy: Ratliff
Finance
4/15/1999
As Filed


DIGEST 

Currently, the Texas Water Development Board (board) lacks the authority to
charge an administrative cost recovery fee to borrowers of the State
Participation Program, which authorizes the state to purchase an interest,
not to exceed 50 percent, in certain projects to accommodate future growth.
In other infrastructure financing programs, such as the board's State
Revolving Fund programs, administrative cost recovery fees are charged to
participants in order to fully recover the state's administrative costs.
This bill would allow the board to assess an administrative fee to
political subdivisions using the State Participation Program and to
structure the payment of such fees to administer the project over its life.
PURPOSE

As proposed, S.B. 1862 authorizes the Texas Water Development Board to
recover administrative costs incurred in making certain agreements. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Water Development Board in
SECTION 1 (Section 16.142(b), Water Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 16E, Water Code, by adding Section 16.142, as
follows: 

Sec. 16.142. RECOVERY OF ADMINISTRATIVE COSTS. Authorizes the Texas Water
Development Board (board) to charge an administrative fee to a political
subdivision with which the board agrees to participate in a project under
this subchapter.  Requires the board, by rule, to set the fee at an amount
necessary to recover all costs incurred or to be incurred in administering
the project over its life.  Authorizes the board to require the payment of
the fee to be in one or more payments.  Requires the fees to be deposited
as directed by the board for use in administering the program. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.