88R25161 JRR-D
 
  By: Morales Shaw, Goodwin, Zwiener, Guillen, H.B. No. 3913
      Thompson of Brazoria
 
  Substitute the following for H.B. No. 3913:
 
  By:  Landgraf C.S.H.B. No. 3913
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the disposition and use of the state's portion of civil
  penalties recovered in suits brought by local governments for
  violations of certain laws under the jurisdiction of, or rules
  adopted or orders or permits issued by, the Texas Commission on
  Environmental Quality.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 7.107, Water Code, is amended to read as
  follows:
         Sec. 7.107.  DIVISION OF CIVIL PENALTY; DISPOSITION OF
  STATE'S PORTION OF CIVIL PENALTY. (a) Except in a suit brought for
  a violation of Chapter 28 of this code or of Chapter 401, Health and
  Safety Code, a civil penalty recovered in a suit brought under this
  subchapter by a local government shall be divided as follows:
               (1)  the first $4.3 million of the amount recovered
  shall be divided equally between:
                     (A)  the state; and
                     (B)  the local government that brought the suit;
  and
               (2)  any amount recovered in excess of $4.3 million
  shall be awarded to the state.
         (b)  One-half of the state's portion of a civil penalty under
  Subsection (a) shall be deposited to the credit of the special
  environmental remediation fund created under Section 7.1075.
         SECTION 2.  Subchapter D, Chapter 7, Water Code, is amended
  by adding Section 7.1075 to read as follows:
         Sec. 7.1075.  SPECIAL ENVIRONMENTAL REMEDIATION FUND; GRANT
  PROGRAM. (a) The environmental remediation fund is created as a
  special fund in the state treasury outside the general revenue
  fund. The fund consists of money deposited to the credit of the
  fund under Section 7.107. Money in the fund may be appropriated
  only to the commission for purposes of the grant program
  established under Subsection (b).
         (b)  From money appropriated from the special environmental
  remediation fund for that purpose, the commission shall establish
  and administer a grant program to provide financial assistance to
  counties and municipalities for environmental remediation
  projects.
         (c)  The commission shall adopt rules to implement the
  program established under Subsection (b), including rules
  establishing:
               (1)  eligibility criteria for grant applicants and
  environmental remediation projects;
               (2)  grant application procedures;
               (3)  criteria for evaluating grant applications and
  awarding grants;
               (4)  guidelines related to grant amounts; and
               (5)  procedures for monitoring the use of a grant
  awarded under Subsection (b) and ensuring compliance with any
  conditions of the grant.
         SECTION 3.  The change in law made by this Act applies only
  to a violation that occurs on or after the effective date of this
  Act. A violation that occurs before the effective date of this Act
  is governed by the law in effect on the date the violation occurred,
  and the former law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2023.