77R12135 QS-D                           
         By Counts                                             H.B. No. 3527
         Substitute the following for H.B. No. 3527:
         By Counts                                         C.S.H.B. No. 3527
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of certain fees by the Texas Natural Resource
 1-3     Conservation Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 5.235, Water Code, is amended by amending
 1-6     Subsection (e) and adding Subsections (p) and (q) to read as
 1-7     follows:
 1-8           (e)  A person who files with the commission a petition for
 1-9     the creation of a water district or addition of sewage and drainage
1-10     powers or a resolution for a water district conversion must pay a
1-11     one-time nonrefundable application fee.  The commission by rule may
1-12     establish [set] the application fee in an amount sufficient to
1-13     cover [not to exceed] the costs of reviewing and processing the
1-14     application, plus the cost of required notice.  The commission may
1-15     also use the application fee to cover other costs incurred to
1-16     protect water resources in this state reasonably related to the
1-17     activities of any of the persons required to pay a fee under the
1-18     statutes listed in Subsection (p).  This fee is the only fee that
1-19     the commission may charge with regard to the processing of an
1-20     application for creation of a water district, addition of sewage or
1-21     drainage powers, or conversion under this code.
1-22           (p)  Notwithstanding any other law, fees collected for
1-23     deposit to the water resource management account under the
1-24     following statutes may be appropriated and used to protect water
 2-1     resources in this state reasonably related to the activities of any
 2-2     of the persons required to pay a fee under:
 2-3                 (1)  Section 5.235(b), to the extent those fees are
 2-4     paid by water districts, and Sections 5.235(e), (f), and (n);
 2-5                 (2)  Sections 13.4521 and 13.4522; or
 2-6                 (3)  Section 54.037(c).
 2-7           (q)  Notwithstanding any other law, fees collected for
 2-8     deposit to the water resource management account under the
 2-9     following statutes may be appropriated and used to protect water
2-10     resources in this state reasonably related to the activities of any
2-11     of the persons required to pay a fee under:
2-12                 (1)  Sections 5.235(b) and (c), to the extent those
2-13     fees are collected in connection with water use or water quality
2-14     permits;
2-15                 (2)  Sections 5.235(h)-(l);
2-16                 (3)  Section 11.138(g);
2-17                 (4)  Section 11.145;
2-18                 (5)  Section 26.0135(h);
2-19                 (6)  Sections 26.0291, 26.044, and 26.0461;
2-20                 (7)  Sections 341.041, 366.058, and 366.059, Health and
2-21     Safety Code; or
2-22                 (8)  Section 372.002(d), Health and Safety Code.
2-23           SECTION 2. Section 341.041(a), Health and Safety Code, is
2-24     amended to read as follows:
2-25           (a)  The commission by rule may charge fees to a person who
2-26     owns, operates, or maintains a public drinking water supply system
2-27     [to recover the costs of public drinking water supply system
 3-1     programs or services authorized by this subchapter or performed
 3-2     pursuant to the requirements of the federal Safe Drinking Water Act
 3-3     (42 U.S.C. Section 300f et seq.)].  The commission may establish a
 3-4     schedule of fees.  The amount of the fees must be sufficient to
 3-5     cover [may not exceed] the reasonable costs of administering the
 3-6     programs and services in this subchapter or the federal Safe
 3-7     Drinking Water Act (42 U.S.C. Section 300f et seq.).  Among other
 3-8     factors, the commission shall consider equity among persons
 3-9     required to pay the fees as a factor in determining the amount of
3-10     the fees.  The commission may also use the fees to cover any other
3-11     costs incurred to protect water resources in this state reasonably
3-12     related to the activities of any of the persons required to pay a
3-13     fee under the statutes listed in Section 5.235(q), Water Code.
3-14           SECTION 3. Section 366.058(a), Health and Safety Code, is
3-15     amended to read as follows:
3-16           (a)  The commission by rule shall establish and collect a
3-17     reasonable permit fee to cover the cost of issuing permits under
3-18     this chapter and administering the permitting system.  The
3-19     commission may also use the fee to cover any other costs incurred
3-20     to protect water resources in this state reasonably related to the
3-21     activities of any of the persons required to pay a fee under the
3-22     statutes listed in Section 5.235(q), Water Code.
3-23           SECTION 4. Section 366.059(b), Health and Safety Code, is
3-24     amended to read as follows:   
3-25           (b)  The commission may assess a charge-back fee to a local
3-26     governmental entity for which the commission issues permits for
3-27     administrative costs relating to the permitting function [that are
 4-1     not covered by the permit fees collected].  The commission may also
 4-2     use the fee to cover other costs incurred to protect water
 4-3     resources in this state reasonably related to the activities of any
 4-4     of the persons required to pay a fee under the statutes listed in
 4-5     Section 5.235(q), Water Code.
 4-6           SECTION 5. Water resource management account balances
 4-7     dedicated to a particular purpose that have not been expended
 4-8     before the effective date of this Act may be used for the purposes
 4-9     authorized under this Act.
4-10           SECTION 6. This Act takes effect September 1, 2001.