HBA-JLV C.S.H.B. 3527 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3527
By: Counts
Natural Resources
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

There are numerous water fees collected by the Texas Natural Resource
Conservation Commission (TNRCC), such as the public drinking water fee,
water use permit construction fee, water use permit fee, or temporary or
emergency water use fees, that are all deposited to the Water Resource
Management Account.  Many would like to increase the efficiency of TNRCC
and to enhance the flexibility of TNRCC's funding structure by expanding
the use of such fees to cover the costs incurred for the water resources of
the state, including programs reasonably related to the activities of the
fee payers.  C.S.H.B. 3527 expands the use of select water fees deposited
to the Water Resource Management Account.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 3527 amends the Water Code to authorize the Texas Natural Resource
Conservation Commission (TNRCC), by rule, to establish the application fee
for the creation of a water district in an amount sufficient to cover the
costs of the application process.  TNRCC is authorized to use the
application fee to cover other costs incurred to protect water resources in
this state reasonably related to the activities of any of the persons
required to pay certain fees. 

The bill provides that fees collected for deposit to the water resource
management account (account) may be appropriated and used to protect water
resources in this state reasonably related to the activities of any of the
persons required to pay certain fees. 

The bill deletes provisions authorizing TNRCC to charge public drinking
water fees to recover the costs of public drinking water supply systems,
but authorizes TNRCC to establish a schedule of fees in an amount to be
sufficient to cover the reasonable costs of administering programs and
services.  The bill requires TNRCC to consider, among other factors, equity
among persons required to pay the fees as a factor in determining the
amount of the fees.  TNRCC is also authorized to use the fees to cover any
other costs incurred to protect water resources in this state reasonably
related to the activities of any of the persons required to pay certain
fees. 

The bill amends the Health and Safety Code to authorize TNRCC to use the
fee to cover any other costs incurred to protect water resources in this
state reasonably related to the activities of any of the persons required
to pay a certain fee. 

EFFECTIVE DATE

September 1, 2001.


 COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3527 modifies the original to conform to Texas Legislative Council
style and format.  The substitute requires the Texas Natural Resource
Conservation Commission to consider equity among persons required to pay
certain fees as a factor in determining the amount of the fees.  The
substitute adds certain Health and Safety Code provisions under which fees
collected may be appropriated and used to protect water resources in this
state reasonably related to the activities of any of the persons required
to pay the fee.