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.