HBA-JLV C.S.H.B. 3528 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3528
By: Counts
Natural Resources
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, the Texas Natural Resource Conservation Commission
(TNRCC) collects separate fees for wastewater treatment inspection and
water quality.  Revenues of such fees can only be used for very specific
purposes.  In an effort to improve overall efficiency of TNRCC fee
assessment and to enhance the flexibility of TNRCC's funding structure,
many would like to consolidate these two fees into a single water quality
fee.  The use of revenue from the newly consolidated fee could support
activities associated with protecting the water resources of the state,
including water management programs.  C.S.H.B. 3528 consolidates inspection
fees into a water quality fee to fund activities associated with the water
resources of the state. 

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. 3528 amends the Water Code to set forth provisions relating to the
consolidation of certain fees and the use of water quality fees.  The bill
provides that an annual water quality fee is imposed on each wastewater
discharge permit holder for each wastewater discharge permit held and on
each user of water in proportion to the user's water right, through permit
or contract, as reflected in the Texas Natural Resource Conservation
Commission's (TNRCC) records.  The bill provides that the fee is to
supplement any other funds available to pay TNRCC expenses related to the
water resources of this state, including the water quality management
programs, and any other water resource management programs reasonably
related to the activities of the persons required to pay a fee.  The bill
provides that the fee for each year is imposed on each water right in
effect during any part of the year.  TNRCC is authorized to establish
reduced fees for inactive permits.  The bill increases the amount of the
fee, from $25,000 to $75,000, for each permit or contract.  The bill
prohibits the maximum annual fee for a wastewater discharge or waste
treatment facility that holds a water right for the use of water by the
facility from exceeding $75,000.  In determining the fee amount, the bill
authorizes TNRCC to consider the reasonable costs of administering the
water quality management program and any other reasonable costs.  The bill
removes provisions prohibiting TNRCC from adopting a rule designed to
increase the fee on a treatment works owned by a local government. 

The bill deletes provisions requiring TNRCC to recover costs from users of
water and wastewater permit holders in the watershed.  The bill deletes
provisions providing that irrigation water rights will not be subject to
fee assessment by TNRCC.  The bill deletes provisions providing that rules
implementing water quality monitoring ensure that program funds are
equitably apportioned among basins.  The bill deletes provisions
prohibiting the assessment of reasonable costs from exceeding  $5,000,000
annually.  The bill also deletes provisions relating to the deposit and
application of recovered costs by TNRCC, and the requirement of TNRCC to
submit a written report. 

The bill repeals provisions relating to the consolidation of fees relating
to the recovery of costs for water  quality management programs from
wastewater permit holders. 

EFFECTIVE DATE

September 1, 2002.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3528 modifies the original to conform to Texas Legislative Council
style and format.  The substitute provides that the water quality fee is to
supplement any other funds available to pay Texas Natural Resource
Conservation Commission (TNRCC) expenses related to the water resources of
this state, including the water quality management programs.  The
substitute prohibits the maximum annual fee for the use of water by the
facility from exceeding $75,000. 

The substitute restores to current law provisions relating to requirements
of TNRCC and rule requirements.