HBA-GUM S.B. 1862 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1862
By: Ratliff
Ways & Means
5/10/1999
Engrossed



BACKGROUND AND PURPOSE 

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.
S.B. 1862 authorizes the Texas Water Development Board to recover
administrative costs incurred in making and administering certain
agreements and projects. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Water Development Board in
SECTION 1 (Section 16.142, Water Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 16, 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 (Acquisition and Development of Facilities).  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.