TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 10. TEXAS WATER DEVELOPMENT BOARD

Chapter 363. FINANCIAL ASSISTANCE PROGRAMS

Subchapter F. STORAGE ACQUISITION AND STATE PARTICIPATION

31 TAC §363.613

The Texas Water Development Board (Board) proposes an amendment to 31 TAC §363.613, concerning administrative cost recovery fee for the state participation program.

The proposed amendment will raise the administrative cost recovery fee from 0.5% to 0.77% of the total participation in a project by the Board. The change is proposed in response to a review of the state participation fees by the State Auditor's Office in accordance with §16.142 of the Water Code. The State Auditor's Office found that the existing fee of 0.5% appeared to be too low to recover all of the costs associated with administering the state participation program and needed to be reformulated to reflect all appropriate costs, including telephones, office space, travel and the potential extra costs associated with funding large projects. Accordingly, administrative costs were recalculated and an increased cost recovery fee of 0.77% is proposed.

Ms. Pam Gulley, Director of Accounting and Finance, has determined that for the first five-year period the section is in effect the fiscal implications on state government as a result of enforcement and administration of the section there will be an estimated increase to the Board of $13,325 for FY 2001; $7,800 for FY 2002; $4,875 for FY 2003; $12,000 for FY 2004 and $1,000 for FY 2005. The impact on local governments will be additional cost to political subdivisions that apply to the Board for participation in an eligible project and are estimated at $13,325 for FY 2001; $7,800 for FY 2002; $4,875 for FY 2003; $12,000 for FY 2004 and $1,000 for FY 2005.

Ms. Gulley has also determined that for the first five years the section as proposed is in effect the public benefit anticipated will be to reduce the general revenue used by the Board and distribute the cost of the program to those benefiting from the program. Ms. Gulley has determined there will not be economic costs to small businesses or individuals required to comply with the section as proposed.

Comments on the proposed amendment will be accepted for 30 days following publication and may be submitted to Gail Allan, Director, Administration and Northern Legal Services, (512) 463-7804, Texas Water Development Board, P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at (512) 463-5580.

The amendment is proposed under the authority of the Texas Water Code, §6.101, which provides the Texas Water Development Board with the authority to adopt rules necessary to carry out the powers and duties in the Water Code and other laws of the State.

The statutory provisions affected by the proposed amendment are Texas Water Code, Chapter 15, Subchapter E and Chapter 16, Subchapter E and F.

§363.613. Administrative Cost Recovery for State Participation Program.

(a)

General. The board will assess fees for the purpose of recovering administrative costs from all political subdivisions with which the board agrees to participate in a state participation project under this subchapter in an amount of 0.77% [ 0.5% ] of the amount of the total participation in the project by the board.

(b)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 18, 2000.

TRD-200003478

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: July 19, 2000

For further information, please call: (512) 463-7981