By:  Yost                                             H.B. No. 1819
       73R1050 JBN-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the adoption of the Environment Code; providing
    1-3  penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The Environment Code is adopted to read as
    1-6  follows:
    1-7                           ENVIRONMENT CODE
    1-8             TITLE 1.  STATE ENVIRONMENTAL ADMINISTRATION
    1-9                    CHAPTER 1.  GENERAL PROVISIONS
   1-10        Sec. 1.001.  Construction of Code.  The Code Construction Act
   1-11  (Chapter 311, Government Code) applies to the construction of each
   1-12  provision in this code, except as otherwise expressly provided by
   1-13  this code.  (Sec. 1.002, Water Code.)
   1-14        Sec. 1.002.  Public Policy.  It is the public policy of the
   1-15  state to provide for the conservation and development of the
   1-16  state's natural resources, including:
   1-17              (1)  the control, storage, preservation, and
   1-18  distribution of the state's storm and floodwaters and the waters of
   1-19  its rivers and streams for irrigation, power, and other useful
   1-20  purposes;
   1-21              (2)  the reclamation and irrigation of the state's
   1-22  arid, semiarid, and other land needing irrigation;
   1-23              (3)  the reclamation and drainage of the state's
   1-24  overflowed land and other land needing drainage;
    2-1              (4)  the conservation and development of its forest,
    2-2  water, and hydroelectric power;
    2-3              (5)  the navigation of the state's inland and coastal
    2-4  waters; and
    2-5              (6)  the maintenance of a proper ecological environment
    2-6  of the bays and estuaries of Texas and the health of related living
    2-7  marine resources.  (Sec. 1.003, Water Code.)
    2-8        Sec. 1.003.  INTERNAL REFERENCES.  In this code:
    2-9              (1)  a reference to a title, chapter, or section
   2-10  without further identification is a reference to a title, chapter,
   2-11  or section of this code; and
   2-12              (2)  a reference to a subtitle, subchapter, subsection,
   2-13  subdivision, paragraph, or other numbered or lettered unit without
   2-14  further identification is a reference to a unit of the next larger
   2-15  unit of this code in which the reference appears.  (New.)
   2-16        Sec. 1.004.  REFERENCE IN LAW TO STATUTE REVISED BY CODE.  A
   2-17  reference in a law to a statute or a part of a statute revised by
   2-18  this code is considered to be a reference to the part of this code
   2-19  that revises that statute or part of the statute.  (New.)
   2-20      CHAPTER 2.  TEXAS NATURAL RESOURCE CONSERVATION COMMISSION
   2-21               SUBCHAPTER A.  ORGANIZATION OF COMMISSION
   2-22        Sec. 2.001.  Purpose and Scope of Chapter.  (a)  The powers
   2-23  and duties enumerated in this chapter are the general powers and
   2-24  duties of the Texas Natural Resource Conservation Commission and
   2-25  those incidental to the conduct of its business.  The commission
   2-26  has other specific powers and duties as prescribed in other
   2-27  sections of this code and other laws of this state.
    3-1        (b)  It is the purpose of this chapter to provide an
    3-2  organizational structure for the Texas Natural Resource
    3-3  Conservation Commission that will provide more efficient and
    3-4  effective administration of the conservation of natural resources
    3-5  and the protection of the environment in this state and to define
    3-6  the duties, responsibilities, authority, and functions of the
    3-7  commission and the executive director.  (Secs. 5.002, 5.011, Water
    3-8  Code.)
    3-9        Sec. 2.002.  Declaration of Policy.  (a)  The Texas Natural
   3-10  Resource Conservation Commission is the agency of the state given
   3-11  primary responsibility for implementing the constitution and laws
   3-12  of this state relating to the conservation of natural resources and
   3-13  the protection of the environment.
   3-14        (b)  The commission shall administer the law so as to promote
   3-15  the judicious use and maximum conservation and protection of the
   3-16  quality of the environment and the natural resources of the state.
   3-17  (Secs. 5.012, 5.120, Water Code.)
   3-18        Sec. 2.003.  Definitions.  In this code, except as otherwise
   3-19  provided:
   3-20              (1)  "Board" means the Texas Water Development Board.
   3-21              (2)  "Commission" means the Texas Natural Resource
   3-22  Conservation Commission.
   3-23              (3)  "Executive director" means the executive director
   3-24  of the Texas Natural Resource Conservation Commission.  (Sec.
   3-25  5.001, Water Code.)
   3-26        Sec. 2.004.  General Jurisdiction of Commission.  (a)  The
   3-27  commission has general jurisdiction over:
    4-1              (1)  water and water rights including the issuance of
    4-2  water rights permits, water rights adjudication, cancellation of
    4-3  water rights, and enforcement of water rights;
    4-4              (2)  continuing supervision over districts created
    4-5  under Article III, Sections 52(b)(1) and (2), and Article XVI,
    4-6  Section 59, of the Texas Constitution;
    4-7              (3)  the state's water quality program including
    4-8  issuance of permits, enforcement of water quality rules, standards,
    4-9  orders, and permits, and water quality planning;
   4-10              (4)  the state's weather modification program including
   4-11  the issuance of permits and licenses and the enforcement of
   4-12  permits, licenses, rules, standards, and orders relating to weather
   4-13  modification;
   4-14              (5)  the determination of the feasibility of certain
   4-15  federal projects;
   4-16              (6)  the adoption and enforcement of rules and
   4-17  performance of other acts relating to the safe construction,
   4-18  maintenance, and removal of dams;
   4-19              (7)  conduct of the state's hazardous spill prevention
   4-20  and control program;
   4-21              (8)  the administration of the state's program relating
   4-22  to inactive hazardous substance, pollutant, and contaminant
   4-23  disposal facilities;
   4-24              (9)  the administration of a portion of the state's
   4-25  injection well program;
   4-26              (10)  the administration of the state's programs
   4-27  involving underground water and water wells and drilled and mined
    5-1  shafts;
    5-2              (11)  the state's responsibilities relating to regional
    5-3  waste disposal;
    5-4              (12)  the responsibilities assigned to the commission
    5-5  by Chapters 401 and 402, Health and Safety Code, and by Subchapters
    5-6  A-E, Chapter 22, and Chapters 20 and 30;
    5-7              (13)  the administration of the national flood
    5-8  insurance program;
    5-9              (14)  administration of the state's water rate program
   5-10  under Chapter 12; and
   5-11              (15)  any other areas assigned to the commission by
   5-12  this code and other laws of this state.
   5-13        (b)  The rights, powers, duties, and functions delegated to
   5-14  the Texas Department of Water Resources by this code or by any
   5-15  other law of this state that are not expressly assigned to the
   5-16  board are vested in the commission.  (Sec. 5.013, Water Code.)
   5-17        Sec. 2.005.  Application of Sunset Act.  The Texas Natural
   5-18  Resource Conservation Commission is subject to Chapter 325,
   5-19  Government Code (Texas Sunset Act).  Unless continued in existence
   5-20  as provided by that chapter, the commission is abolished and this
   5-21  chapter expires September 1, 2001.  (Sec. 5.014, Water Code.)
   5-22        Sec. 2.006.  Attorney General to Represent Commission.  The
   5-23  attorney general shall represent the commission under this chapter
   5-24  in all matters before the state courts and any court of the United
   5-25  States.  (Sec. 13.014, Water Code.)
   5-26        Sec. 2.007.  Commission; Membership and Appointment.  (a)
   5-27  The Texas Natural Resource Conservation Commission is an agency of
    6-1  the state.
    6-2        (b)  The commission is composed of three members who are
    6-3  appointed by the governor with the advice and consent of the
    6-4  senate.
    6-5        (c)  The governor shall make the appointments in such a
    6-6  manner that each member is from a different section of the state.
    6-7        (d)  Appointments to the commission shall be made without
    6-8  regard to the race, color, handicap, sex, religion, age, or
    6-9  national origin of the appointees.
   6-10        (e)  A person is not eligible to serve on the commission if
   6-11  the person or the person's spouse:
   6-12              (1)  is employed by or participates in the management
   6-13  of a business entity or other organization regulated by the
   6-14  commission or receiving funds from the commission;
   6-15              (2)  owns, controls, or has, directly or indirectly,
   6-16  more than a 10 percent interest in a business entity or other
   6-17  organization regulated by the commission or receiving funds from
   6-18  the commission; or
   6-19              (3)  uses or receives a substantial amount of tangible
   6-20  goods, services, or funds from the commission.  (Secs. 5.051,
   6-21  5.052, 5.053, Water Code.)
   6-22        Sec. 2.008.  Removal of Commission Members.  (a)  It is a
   6-23  ground for removal from the commission if a member:
   6-24              (1)  does not maintain during the service on the
   6-25  commission the qualifications required for appointment to the
   6-26  commission;
   6-27              (2)  violates a prohibition established by Sections
    7-1  2.011(b) and 2.012;
    7-2              (3)  is unable to discharge his duties for a
    7-3  substantial portion of the term for which he was appointed because
    7-4  of illness or disability; or
    7-5              (4)  is absent from more than one-half of the regularly
    7-6  scheduled commission meetings that the member is eligible to attend
    7-7  during each calendar year, except when the absence is excused by a
    7-8  majority vote of the commission.
    7-9        (b)  The validity of an action of the commission is not
   7-10  affected by the fact that it was taken when a ground for removal of
   7-11  a member of the commission existed.
   7-12        (c)  If a member of the commission has knowledge that a
   7-13  potential ground for removal exists, he shall notify the chairman
   7-14  of the commission of that ground.  The chairman of the commission
   7-15  shall then notify the governor that a potential ground for removal
   7-16  exists.  (Sec. 5.054, Water Code.)
   7-17        Sec. 2.009.  Terms of Office.  (a)  The members of the
   7-18  commission hold office for staggered terms of six years, with the
   7-19  term of one member expiring every two years.  Each member holds
   7-20  office until his successor is appointed and has qualified.
   7-21        (b)  A person appointed to the commission may not serve for
   7-22  more than two six-year terms.
   7-23        (c)  Each member of the commission shall serve on a full-time
   7-24  basis.  (Secs. 5.056, 5.057, Water Code.)
   7-25        Sec. 2.010.  Officers; Meetings.  (a)  The governor shall
   7-26  designate the chairman of the commission.  He shall serve as
   7-27  chairman until the governor designates a different chairman.
    8-1        (b)  The chairman may designate another commissioner to act
    8-2  for him in his absence.
    8-3        (c)  The chairman shall preside at the meetings and hearings
    8-4  of the commission.
    8-5        (d)  The commission shall hold regular meetings and all
    8-6  hearings at times specified by a commission order and entered in
    8-7  its minutes.  The commission may hold special meetings at the times
    8-8  and places in the state that the commission decides are appropriate
    8-9  for the performance of its duties.  The chairman or acting chairman
   8-10  shall give the other members reasonable notice before holding a
   8-11  special meeting.
   8-12        (e)  A majority of the commission is a quorum.  (Sec. 5.058,
   8-13  Water Code.)
   8-14        Sec. 2.011.  Oath of Office; Conflict of Interest.  (a)  Each
   8-15  member of the commission is an officer of the state as that term is
   8-16  used in the constitution, and each member shall qualify by taking
   8-17  the official oath of office.
   8-18        (b)  An officer, employee, or paid consultant of a trade
   8-19  association in an industry regulated by the commission may not be a
   8-20  member of the commission or employee of the commission, nor may a
   8-21  person who cohabits with or is the spouse of an officer, managerial
   8-22  employee, or paid consultant of a trade association in an industry
   8-23  regulated by the commission be a member of the commission or an
   8-24  employee of the commission grade 17 or over, including exempt
   8-25  employees, according to the position classification schedule under
   8-26  the General Appropriations Act.  (Secs. 5.055, 5.059, Water Code.)
   8-27        Sec. 2.012.  Lobbyist Prohibition.  A person who is required
    9-1  to register as a lobbyist under Chapter 305, Government Code, by
    9-2  virtue of his activities for compensation in or on behalf of a
    9-3  profession related to the operation of the commission may not serve
    9-4  as a member of the commission or act as the general counsel to the
    9-5  commission.  (Sec. 5.060, Water Code.)
    9-6             (Sections 2.013-2.020 reserved for expansion)
    9-7               SUBCHAPTER B.  GENERAL POWERS AND DUTIES
    9-8        Sec. 2.021.  Scope of Subchapter.  The powers and duties
    9-9  provided by this subchapter are the general powers and duties of
   9-10  the commission and those incidental to the conduct of its business.
   9-11  The commission has other specific powers and duties as prescribed
   9-12  in other sections of the code and other laws of this state.  (Sec.
   9-13  5.101, Water Code.)
   9-14        Sec. 2.022.  General Policy and Powers.  (a)  The commission
   9-15  has the powers to perform any acts whether specifically authorized
   9-16  by this code or other law or implied by this code or other law,
   9-17  necessary and convenient to the exercise of its jurisdiction and
   9-18  powers as provided by this code and other laws.
   9-19        (b)  The commission may call and hold hearings, receive
   9-20  evidence at hearings, administer oaths, issue subpoenas to compel
   9-21  the attendance of witnesses and the production of papers and
   9-22  documents, and make findings of fact and decisions with respect to
   9-23  its jurisdiction under this code and other laws and rules, orders,
   9-24  permits, licenses, certificates, and other actions adopted, issued,
   9-25  or taken by the commission.
   9-26        (c)  The commission shall provide to its members, appointees,
   9-27  and employees as often as is necessary information regarding their
   10-1  qualifications under this code and their responsibilities under
   10-2  applicable laws relating to standards of conduct for state officers
   10-3  or employees.
   10-4        (d)  The commission shall develop and implement policies that
   10-5  clearly separate the respective responsibilities of the commission
   10-6  and the staff.
   10-7        (e)  The commission shall be knowledgeable of the
   10-8  watercourses and natural resources of the state and of the needs of
   10-9  the state concerning the use, storage and conservation of water and
  10-10  the use and conservation of other natural resources and of the need
  10-11  to maintain the quality of the environment in the state.  (Secs.
  10-12  5.102, 5.111, 5.113, 5.119, Water Code.)
  10-13        Sec. 2.023.  Rules.  (a)  The commission shall adopt any
  10-14  rules necessary to carry out its powers and duties under this code
  10-15  and other laws of this state.
  10-16        (b)  The commission shall adopt reasonable procedural rules
  10-17  to be followed in a commission hearing.  The executive director may
  10-18  recommend to the commission for its consideration any rules that he
  10-19  considers necessary.
  10-20        (c)  Rules shall be adopted in the manner provided by the
  10-21  Administrative Procedure and Texas Register Act (Article 6252-13a,
  10-22  Vernon's Texas Civil Statutes).
  10-23        (d)  Except as otherwise specifically provided by this code,
  10-24  the commission, by rule, shall establish and approve all general
  10-25  policy of the commission.
  10-26        (e)  The commission shall develop and implement policies that
  10-27  will provide the public with a reasonable opportunity to appear
   11-1  before the commission and to speak on any issue under the
   11-2  jurisdiction of the commission.
   11-3        (f)  The commission may adopt rules necessary to implement
   11-4  Subchapters A-E, Chapter 22.
   11-5        (g)  The commission may adopt rules for the administration of
   11-6  Chapter 30.  The commission shall hold a public hearing before
   11-7  adopting a rule consistent with the policy and purposes of Chapter
   11-8  30.
   11-9        (h)  If the rule will have statewide effect, notice of the
  11-10  date, time, place, and purpose of the hearing shall be published
  11-11  one time at least 20 days before the scheduled date of the hearing
  11-12  in at least three newspapers, the combined circulation of which
  11-13  will, in the commission's judgment, give reasonable circulation
  11-14  throughout the state.  If the rule will have effect in only a part
  11-15  of the state, the notice shall be published one time at least 20
  11-16  days before the scheduled date of the hearing in a newspaper of
  11-17  general circulation in the area to be affected.
  11-18        (i)  Any person may appear and be heard at a hearing to adopt
  11-19  a rule.  The executive director shall make a record of the names
  11-20  and addresses of the persons appearing at the hearing.  A person
  11-21  heard or represented at the hearing or requesting notice of the
  11-22  commission's action shall be sent by mail written notice of the
  11-23  commission's action.
  11-24        (j)  Subsections (g) and (h) notwithstanding, the commission
  11-25  may adopt rules consistent with the Administrative Procedure and
  11-26  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  11-27  Statutes), if the commission determines that the need for
   12-1  expeditious adoption of proposed rules requires use of those
   12-2  procedures.
   12-3        (k)  The terms and provisions of a rule adopted by the
   12-4  commission may differentiate among particular conditions,
   12-5  particular sources, and particular areas of the state.  In adopting
   12-6  a rule, the commission shall recognize that the quantity or
   12-7  characteristic of air contaminants or the duration of their
   12-8  presence in the atmosphere may cause a need for air control in one
   12-9  area of the state but not in other areas.  In this connection, the
  12-10  commission shall consider:
  12-11              (1)  the factors found by it to be proper and just,
  12-12  including existing physical conditions, topography, population, and
  12-13  prevailing wind direction and velocity; and
  12-14              (2)  the fact that a rule and the degrees of
  12-15  conformance with the rule that may be proper for an essentially
  12-16  residential area of the state may not be proper for a highly
  12-17  developed industrial area or a relatively unpopulated area.
  12-18        (l)  Except as provided by Sections 30.016-30.023 or to
  12-19  comply with federal law or regulations, the commission by rule may
  12-20  not specify:
  12-21              (1)  a particular method to be used to control or abate
  12-22  air pollution;
  12-23              (2)  the type, design, or method of installation of
  12-24  equipment to be used to control or abate air pollution; or
  12-25              (3)  the type, design, method of installation, or type
  12-26  of construction of a manufacturing process or other kind of
  12-27  equipment.  (Secs. 5.103, 5.105, 5.112, Water Code; Secs. 363.021,
   13-1  382.017, Health and Safety Code.)
   13-2        Sec. 2.024.  Interagency Contracts and Memoranda of
   13-3  Understanding.  (a)  The commission and board by rule shall develop
   13-4  memoranda of understanding as necessary to clarify and provide for
   13-5  their respective duties, responsibilities, or functions on any
   13-6  matter under the jurisdiction of the commission or board that is
   13-7  not expressly assigned to either the commission or board.
   13-8        (b)  The commission may enter into a memorandum of
   13-9  understanding with any other state agency and shall adopt by rule
  13-10  any memorandum of understanding between the commission and any
  13-11  other state agency.  (Sec. 5.104, Water Code.)
  13-12        Sec. 2.025.  Budget Approval.  The commission shall examine
  13-13  and approve all budget recommendations for the commission that are
  13-14  to be transmitted to the legislature.  (Sec. 5.106, Water Code.)
  13-15        Sec. 2.026.  General Counsel.  (a)  The commission shall
  13-16  appoint a general counsel who shall serve at the will of the
  13-17  commission.
  13-18        (b)  The general counsel is the chief legal officer for the
  13-19  commission.
  13-20        (c)  The general counsel must be an attorney licensed to
  13-21  practice law in this state.
  13-22        (d)  The general counsel shall perform the duties and may
  13-23  exercise the powers specifically authorized by this code or
  13-24  delegated to the general counsel by the commission.  (Sec. 5.110,
  13-25  Water Code.)
  13-26        Sec. 2.027.  Creation of Office.  (a)  The commission shall
  13-27  create an office of hearing examiners to assist the commission in
   14-1  carrying out its powers and duties under this code.
   14-2        (b)  The office of hearing examiners is independent of the
   14-3  executive director and the divisions of the commission and is under
   14-4  the exclusive control of the commission.
   14-5        (c)  The office of hearing examiners shall be under the
   14-6  direction of the chief hearing examiner.
   14-7        (d)  The chief hearing examiner and all assistant hearing
   14-8  examiners employed in the office of hearing examiners shall be
   14-9  attorneys licensed to practice law in this state and shall be
  14-10  employed by the commission.
  14-11        (e)  The commission may delegate to a hearing examiner the
  14-12  responsibility to hear any matter before the commission.
  14-13        (f)  A hearing examiner shall prepare for and hold any
  14-14  hearing as directed by the commission and shall report to the
  14-15  commission on the hearing in the manner provided by law.  (Secs.
  14-16  5.311, 5.312, 5.313, Water Code.)
  14-17        Sec. 2.028.  Public Interest Counsel.  (a)  The office of
  14-18  public interest counsel is created to ensure that the commission
  14-19  promotes the public's interest and is responsive to environmental
  14-20  and citizens' concerns including environmental quality and consumer
  14-21  protection.
  14-22        (b)  The office shall be headed by a public interest counsel
  14-23  appointed by the commission.  The executive director may submit the
  14-24  names and qualifications of candidates for public interest counsel
  14-25  to the commission.
  14-26        (c)  The counsel shall represent the public interest and be a
  14-27  party to all proceedings before the commission.
   15-1        (d)  The office shall be adequately staffed to carry out its
   15-2  functions under this code.
   15-3        (e)  A ruling, decision, or other act of the commission may
   15-4  not be appealed by the counsel.  (Secs. 5.271, 5.272, 5.273, 5.274,
   15-5  5.275, Water Code.)
   15-6        Sec. 2.029.  Executive Director.  (a)  The commission shall
   15-7  appoint an executive director to serve at the will of the
   15-8  commission.
   15-9        (b)  The board shall exercise the powers of appointment which
  15-10  the Texas Water Rights Commission had the authority to exercise on
  15-11  August 30, 1977, except for those powers of appointment expressly
  15-12  provided to the Texas Water Rights Commission in Chapters 50
  15-13  through 63 inclusive, of the Water Code, which are delegated to the
  15-14  commission.  (Sec. 5.108, Water Code.)
  15-15        Sec. 2.030.  Chief Clerk.  (a)  The commission shall appoint
  15-16  a chief clerk who shall serve at the will of the commission.
  15-17        (b)  The chief clerk shall assist the commission in carrying
  15-18  out its duties under this code and other law.
  15-19        (c)  The chief clerk shall issue notice of public hearings
  15-20  held under the authority of the commission.  (Sec. 5.109, Water
  15-21  Code.)
  15-22        Sec. 2.031.  Power to Administer Oaths.  Each member of the
  15-23  commission, the chief clerk, or a hearings examiner may administer
  15-24  oaths in any hearing or examination on any matter submitted to the
  15-25  commission for action.  (Sec. 5.118, Water Code.)
  15-26        Sec. 2.032.  Hearings.  (a)  The commission may recess any
  15-27  hearing or examination from time to time and from place to place.
   16-1        (b)  The commission by rule shall adopt standards and
   16-2  procedures for establishing vehicle emissions inspection stations
   16-3  authorized and licensed by the state.
   16-4        (c)  A vehicle emissions inspection may be performed at a
   16-5  decentralized independent inspection station or at a centralized
   16-6  inspection facility operated or licensed by the state.  In
   16-7  developing the program for vehicle emissions inspections, the
   16-8  commission shall make all reasonable efforts to preserve the
   16-9  present decentralized system.
  16-10        (d)  After consultation with the Texas Department of
  16-11  Transportation, the commission shall require state and local
  16-12  transportation planning entities designated by the commission to
  16-13  prepare long-term projections of the combined impact of significant
  16-14  planned transportation system changes on emissions and air quality.
  16-15  The projections shall be prepared using air pollution estimation
  16-16  methodologies established jointly by the commission and the Texas
  16-17  Department of Transportation.  This subsection does not restrict
  16-18  the Texas Department of Transportation's function as the
  16-19  transportation planning body for the state or its role in
  16-20  identifying and initiating specific transportation-related projects
  16-21  in the state.
  16-22        (e)  The commission may authorize enforcement personnel or
  16-23  other individuals to remove, disconnect, adjust, or make inoperable
  16-24  vehicle emissions control equipment, devices, or systems and to
  16-25  operate a vehicle in the tampered condition in order to perform a
  16-26  quality control audit of an inspection station or other quality
  16-27  control activities as necessary to assess and ensure the
   17-1  effectiveness of the vehicle emissions inspection and maintenance
   17-2  program.
   17-3        (f)  The commission and the Department of Public Safety shall
   17-4  develop a challenge station program to ensure quality control of a
   17-5  vehicle emissions inspection and maintenance system.  (Sec. 5.116,
   17-6  Water Code; Sec. 382.038, Health and Safety Code.)
   17-7        Sec. 2.033.  Mandatory Enforcement Hearing.  (a)  The
   17-8  executive director shall monitor compliance with all permits and
   17-9  licenses issued by the commission under this code, and if the
  17-10  evidence available to the executive director through this
  17-11  monitoring process indicates that a permittee or licensee is in
  17-12  substantial noncompliance with his permit or license for a period
  17-13  of four months, or for a shorter period of time if the executive
  17-14  director considers an emergency to exist, the executive director
  17-15  shall report this fact to the commission together with the
  17-16  information relating to the noncompliance.
  17-17        (b)  On receiving a report from the executive director under
  17-18  Subsection (a), the commission shall call and hold a hearing to
  17-19  determine whether the permittee or licensee who is the subject of
  17-20  the executive director's report has been in substantial
  17-21  noncompliance with his permit or license.
  17-22        (c)  At the conclusion of the hearing, the commission shall
  17-23  issue one of the following orders stating that:
  17-24              (1)  no violation of the permit or license has
  17-25  occurred;
  17-26              (2)  a violation of the permit or license has occurred
  17-27  but has been corrected and no further action is necessary to
   18-1  protect the public interest;
   18-2              (3)  the executive director is authorized to enter into
   18-3  a compliance agreement with the permittee or licensee;
   18-4              (4)  a violation of the permit or license has occurred
   18-5  and an administrative penalty is assessed as provided by this code;
   18-6  or
   18-7              (5)  a violation of the permit or license has occurred,
   18-8  and the executive director is directed to have enforcement
   18-9  proceedings instituted against the permittee or licensee.
  18-10        (d)  A compliance agreement under Subsection (c)(3) is not
  18-11  effective unless it is approved by the commission.  If the
  18-12  commission determines at a hearing that a permittee or licensee has
  18-13  not complied with the terms of the compliance agreement, the
  18-14  commission may direct the executive director to institute
  18-15  enforcement proceedings.
  18-16        (e)  The executive director, on receiving an order from the
  18-17  commission directing institution of enforcement proceedings, shall
  18-18  take all necessary steps to have enforcement proceedings
  18-19  instituted.
  18-20        (f)  The commission may compel the attendance of the
  18-21  governing body or any other officer of any permittee or licensee at
  18-22  any hearing held under this section.  (Sec. 5.117, Water Code.)
  18-23        Sec. 2.034.  Public Information.  (a)  The commission shall
  18-24  comply with Section 4(a)(2), Administrative Procedure and Texas
  18-25  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes), by
  18-26  indexing and making available for public inspection all rules and
  18-27  all other written statements of policy or interpretations
   19-1  formulated, adopted, or used by the commission in the discharge of
   19-2  its functions.
   19-3        (b)  The commission shall comply with Section 4(a)(3),
   19-4  Administrative Procedure and Texas Register Act (Article 6252-13a,
   19-5  Vernon's Texas Civil Statutes), by indexing and making available
   19-6  for public inspection all of the commission's final orders,
   19-7  decisions, and opinions.
   19-8        (c)  The commission shall prepare information of public
   19-9  interest describing the functions of the commission and describing
  19-10  the commission's procedures by which complaints are filed with and
  19-11  resolved by the commission.  The commission shall make the
  19-12  information available to the general public and the appropriate
  19-13  state agencies.
  19-14        (d)  Any statements, correspondence, or other form of oral or
  19-15  written communication made by a member of the legislature to a
  19-16  commission official or employee during a public hearing conducted
  19-17  by the commission shall become part of the record of the hearing,
  19-18  regardless of whether the member is a party to the hearing.  (Secs.
  19-19  5.121, 5.173, Water Code; Sec. 382.0291(a), Health and Safety
  19-20  Code.)
  19-21        Sec. 2.035.  Seal.  The commission shall have a seal bearing
  19-22  the words Texas Natural Resource Conservation Commission encircling
  19-23  the oak and olive branches common to other official seals.  (Sec.
  19-24  5.179, Water Code.)
  19-25             (Sections 2.036-2.050 reserved for expansion)
  19-26               SUBCHAPTER C.  COMMISSION ADMINISTRATION
  19-27        Sec. 2.051.  Applications and Other Documents.  (a)
   20-1  Applications and other documents to be filed with the commission
   20-2  for final action under this code shall be filed with the executive
   20-3  director and handled in the manner provided by this code.
   20-4        (b)  At the time an application for a permit or license under
   20-5  this code is filed with the executive director and is
   20-6  administratively complete, the commission shall give notice of the
   20-7  application to any person who may be affected by the granting of
   20-8  the permit or license.
   20-9        (c)  The commission shall adopt rules for the notice required
  20-10  by this section.
  20-11        (d)  The notice must state:
  20-12              (1)  the identifying number given the application by
  20-13  the commission;
  20-14              (2)  the type of permit or license sought under the
  20-15  application;
  20-16              (3)  the name and address of the applicant;
  20-17              (4)  the date on which the application was submitted;
  20-18  and
  20-19              (5)  a brief summary of the information included in the
  20-20  permit application.  (Secs. 5.114, 5.115, Water Code.)
  20-21        Sec. 2.052.  Permit Consideration Time Limits.  (a)  Except
  20-22  as provided in Subsection (b), all permit decisions shall be made
  20-23  within 180 days of the receipt of the permit application or
  20-24  application amendment or the determination of administrative
  20-25  completeness, whichever is later.
  20-26        (b)  This section does not apply to permits issued under
  20-27  federally delegated or approved programs unless allowed under that
   21-1  program.  (Sec. 5.314, Water Code.)
   21-2        Sec. 2.053.  Copies of Documents, Proceedings, Etc.
   21-3  (a)  Except as otherwise specifically provided by this code and
   21-4  subject to the specific limitations provided by this code, on
   21-5  application of any person the commission shall furnish certified or
   21-6  other copies of any proceeding or other official record or of any
   21-7  map, paper, or document filed with the commission.  A certified
   21-8  copy with the seal of the commission and the signature of the
   21-9  chairman of the commission or the executive director or chief clerk
  21-10  is admissible as evidence in any court or administrative
  21-11  proceeding.
  21-12        (b)  The commission shall provide in its rules the fees that
  21-13  will be charged for copies and is authorized to furnish copies,
  21-14  certified or otherwise, to a person without charge when the
  21-15  furnishing of the copies serves a public purpose.  Other statutes
  21-16  concerning fees for copies of records do not apply to the
  21-17  commission, except that the fees set by the commission for copies
  21-18  prepared by the commission may not exceed those prescribed in
  21-19  Article 3913, Revised Statutes.  (Sec. 5.174, Water Code.)
  21-20        Sec. 2.054.  Inspection of Compliance Records.  (a)  All
  21-21  information, documents, and data collected by the commission in the
  21-22  performance of its duties are the property of the state.  Subject
  21-23  to the limitations of this code, all records are open to inspection
  21-24  by any person during regular office hours.
  21-25        (b)  This section is effective until delegation of NPDES
  21-26  permit authority.  (Sec. 5.175, Water Code.)
  21-27        Sec. 2.0541.  Inspection of Compliance Records.  (a)  All
   22-1  information, documents, and data collected by the commission in the
   22-2  performance of its duties are the property of the state.
   22-3        (b)  Except as provided by Subsection (c), records, reports,
   22-4  data, or other information obtained relative to or from sources or
   22-5  potential sources of discharges of water pollutants shall be
   22-6  available to the public during regular office hours.
   22-7        (c)  If a showing satisfactory to the executive director is
   22-8  made by any person that those records, reports, data, or other
   22-9  information, other than effluent data, would divulge methods or
  22-10  processes entitled to protection as trade secrets, the commission
  22-11  shall consider those records, reports, data, or other information
  22-12  as confidential.
  22-13        (d)  This chapter may not be construed to make confidential
  22-14  any effluent data, including effluent data in records, reports, or
  22-15  other information, and including effluent data in permits, draft
  22-16  permits, and permit applications.
  22-17        (e)  Records, data, or other information considered
  22-18  confidential may be disclosed or transmitted to officers,
  22-19  employees, or authorized representatives of the state or of the
  22-20  United States with responsibilities in water pollution control.
  22-21  However, this disclosure or transmittal may be made only after
  22-22  adequate written assurance is given to the executive director that
  22-23  the confidentiality of the disclosed or transmitted records, data,
  22-24  or other information will be afforded all reasonable protection
  22-25  allowed by law by the receiving officer, employee or authorized
  22-26  representative on behalf of, and under the authority of, the
  22-27  receiving agency or political entity.
   23-1        (f)  The executive director may not disclose or transmit
   23-2  records, data, or other information considered confidential if he
   23-3  has reason to believe the recipient will not protect their
   23-4  confidentiality to the most reasonable extent provided by law.
   23-5        (g)  This section is effective on delegation of NPDES permit
   23-6  authority.  (Sec. 5.175, Water Code.)
   23-7        Sec. 2.055.  Complaints.  (a)  The commission shall keep an
   23-8  information file about each complaint filed with the commission
   23-9  relating to an entity regulated by the commission.
  23-10        (b)  If a written complaint is filed with the commission
  23-11  relating to an entity regulated by the commission, the commission
  23-12  at least as frequently as quarterly and until final disposition of
  23-13  the complaint shall notify the parties to the complaint of the
  23-14  status of the complaint unless notice would jeopardize an
  23-15  undercover investigation.  (Secs. 5.176, 5.177, Water Code.)
  23-16        Sec. 2.056.  Funds From Other State Agencies.  Any state
  23-17  agency that has statutory responsibilities for environmental
  23-18  pollution or environmental quality control and that receives a
  23-19  legislative appropriation for these purposes may transfer to the
  23-20  commission any amount mutually agreed on by the commission and the
  23-21  agency, subject to the approval of the governor.  (Sec. 5.172,
  23-22  Water Code.)
  23-23        Sec. 2.057.  Audit By State Auditor.  The financial
  23-24  transactions of the commission are subject to audit by the state
  23-25  auditor in accordance with Chapter 321, Government Code.  (Sec.
  23-26  5.171, Water Code.)
  23-27        Sec. 2.058.  Reports to Governor and Legislature.  (a)  The
   24-1  commission shall make biennial reports in writing to the governor
   24-2  and the members of the legislature.  Each report shall include a
   24-3  statement of the activities of the commission and its
   24-4  recommendations for necessary and desirable legislation.
   24-5        (b)  The commission shall file annually with the governor and
   24-6  the presiding officer of each house of the legislature a complete
   24-7  and detailed written report accounting for all funds received and
   24-8  disbursed by the commission during the preceding year.  The form of
   24-9  the annual report and the reporting time shall be that provided in
  24-10  the General Appropriations Act.  (Sec. 5.178, Water Code.)
  24-11             (Sections 2.059-2.100 reserved for expansion)
  24-12                   SUBCHAPTER D.  EXECUTIVE DIRECTOR
  24-13        Sec. 2.101.  General Responsibilities.  The executive
  24-14  director shall manage the administrative affairs of the commission
  24-15  subject to this code and other laws and under the general
  24-16  supervision and direction of the commission.  (Sec. 5.221, Water
  24-17  Code.)
  24-18        Sec. 2.102.  Deputy Directors.  (a)  The commission has four
  24-19  deputy directors directly reporting to the executive director.
  24-20        (b)  The deputy director for air quality shall be responsible
  24-21  for the management and supervision of all responsibilities of the
  24-22  commission under the federal Clean Air Act (42 U.S.C. Section 7401
  24-23  et seq.) and Chapter 30 including monitoring, permitting, policy
  24-24  research, planning, small business assistance, mobile sources,
  24-25  enforcement functions, and other duties assigned by the executive
  24-26  director that are not assigned by this section to other deputy
  24-27  directors.  The deputy director for air quality must have at least
   25-1  two years' experience in air pollution control program management
   25-2  for the Texas Air Control Board or the commission.
   25-3        (c)  The deputy director for water shall be responsible for
   25-4  the management and supervision of all water programs, including
   25-5  water quality, water rights and uses, water utilities, petroleum
   25-6  storage tank programs, water well drilling, the setting of
   25-7  standards for drinking water, protection of public water supplies
   25-8  and bodies of water, the regulation of on-site sewage disposal
   25-9  systems, the administration of on-site wastewater treatment
  25-10  research, wastewater treatment systems, and other duties assigned
  25-11  by the executive director that are not assigned by this section to
  25-12  other deputy directors.
  25-13        (d)  The deputy director for waste management shall be
  25-14  responsible for all regulatory duties assigned to the commission
  25-15  concerning the management, supervision, disposal, and cleanup of
  25-16  all hazardous wastes and solid wastes, the disposal of radioactive
  25-17  substances, and other duties assigned by the executive director
  25-18  that are not assigned by this section to other deputy directors.
  25-19        (e)  The deputy director for administration shall be
  25-20  responsible for the management and supervision of accounting,
  25-21  budgeting, personnel, data processing systems with nonregulatory
  25-22  purposes, general and staff services, and other duties assigned by
  25-23  the executive director that are not assigned by this section to
  25-24  other deputy directors.
  25-25        (f)  This section does not prohibit the commission or the
  25-26  executive director from establishing a direct line of reporting
  25-27  from persons providing or overseeing staff support functions for
   26-1  the commission or the executive director, including hearings,
   26-2  general legal consultation, research, or public information.  The
   26-3  salaries paid to the deputy directors described by Subsections (b)
   26-4  through (e) may not be lower than those of any other position
   26-5  established within the commission, other than the executive
   26-6  director.
   26-7        (g)  This section expires September 1, 1997.  (Effective
   26-8  September 1, 1993, to September 1, 1997.)  (Sec. 5.222, Water
   26-9  Code.)
  26-10        Sec. 2.103.  Administrative Organization of Commission.  (a)
  26-11  Subject to approval of the commission, the executive director may
  26-12  organize and reorganize the administrative sections and divisions
  26-13  of the commission in a manner and in a form that will achieve the
  26-14  greatest efficiency and effectiveness.
  26-15        (b)  The executive director, subject to approval by the
  26-16  commission, shall employ any engineering, accounting, and
  26-17  administrative personnel necessary to carry out Chapter 12.
  26-18        (c)  The executive director and the commission's staff are
  26-19  responsible for the gathering of information relating to all
  26-20  matters within the jurisdiction of the commission under Subchapter
  26-21  A, Chapter 12.  The duties of the executive director and the staff
  26-22  include:
  26-23              (1)  accumulation of evidence and other information
  26-24  from water and sewer utilities and from the commission and the
  26-25  board and from other sources for the purposes specified by Chapter
  26-26  12;
  26-27              (2)  preparation and presentation of evidence before
   27-1  the commission or its appointed examiner in proceedings;
   27-2              (3)  conducting investigations of water and sewer
   27-3  utilities under the jurisdiction of the commission;
   27-4              (4)  preparation of recommendations that the commission
   27-5  undertake an investigation of any matter within its jurisdiction;
   27-6              (5)  preparation of recommendations and a report for
   27-7  inclusion in the annual report of the commission;
   27-8              (6)  protection and representation of the public
   27-9  interest, together with the public interest advocate, before the
  27-10  commission; and
  27-11              (7)  other activities that are reasonably necessary to
  27-12  enable the executive director and the staff to perform their
  27-13  duties.
  27-14        (d)  The office of pollution prevention is created in the
  27-15  executive office of the commission to direct and coordinate all
  27-16  source reduction and waste minimization activities of the
  27-17  commission.  (Secs. 5.223, 13.011, Water Code; Sec. 361.0216,
  27-18  Health and Safety Code.)
  27-19        Sec. 2.104.  Applications and Other Documents.  (a)  With
  27-20  regard to any matter pending before the commission, the executive
  27-21  director may obtain from the board information relating to that
  27-22  matter.
  27-23        (b)  On receiving a request from the executive director, the
  27-24  board should make the requested information available within 30
  27-25  days after the information is requested and shall make the
  27-26  requested information available not later than 90 days after the
  27-27  information is requested.
   28-1        (c)  An application, petition, or other document requiring
   28-2  action of the commission shall be presented to the executive
   28-3  director and handled as provided by this code or other law and in
   28-4  the rules adopted by the commission.
   28-5        (d)  After an application, petition, or other document is
   28-6  processed, it shall be presented to the commission for action as
   28-7  required by law and rules of the commission.  (Secs. 5.224, 5.234,
   28-8  Water Code.)
   28-9        Sec. 2.105.  Appearances at Hearings.  The position of and
  28-10  information developed by the commission shall be presented by the
  28-11  executive director or his designated representative at hearings of
  28-12  the commission and the hearings held by federal, state, and local
  28-13  agencies on matters affecting the public's interest in the state's
  28-14  environment and natural resources, including matters that have been
  28-15  determined to be policies of the state.  The executive director
  28-16  shall be named a party in hearings before the commission.  (Sec.
  28-17  5.228, Water Code.)
  28-18        Sec. 2.106.  Enforcement.  On approval of the commission, the
  28-19  executive director may enforce the terms and conditions of any
  28-20  permit, certified filing, certificate of adjudication, order,
  28-21  standard, or rule by injunction or other appropriate remedy in a
  28-22  court of competent jurisdiction.  (Sec. 5.230, Water Code.)
  28-23        Sec. 2.107.  Contracts.  (a)  The executive director, on
  28-24  behalf of the commission, may negotiate with and with the consent
  28-25  of the commission enter into contracts with the United States or
  28-26  any of its agencies for the purpose of carrying out the powers,
  28-27  duties, and responsibilities of the commission.
   29-1        (b)  The executive director, on behalf of the commission, may
   29-2  negotiate with and with the consent of the commission enter into
   29-3  contracts or other agreements with states and political
   29-4  subdivisions of this state or any other entity for the purpose of
   29-5  carrying out the powers, duties, and responsibilities of the
   29-6  commission.  (Sec. 5.229, Water Code.)
   29-7        Sec. 2.108.  Gifts and Grants.  The executive director may
   29-8  apply for, request, solicit, contract for, receive, and accept
   29-9  money and other assistance from any source to carry out the powers
  29-10  and duties under this code and other law.  (Sec. 5.233, Water
  29-11  Code.)
  29-12        Sec. 2.109.  Equal Employment Opportunity Policy.  (a)  The
  29-13  executive director or his designee shall prepare and maintain a
  29-14  written policy statement to assure implementation of a program of
  29-15  equal employment opportunity whereby all personnel transactions are
  29-16  made without regard to race, color, handicap, sex, religion, age,
  29-17  or national origin.  The policy statement must include:
  29-18              (1)  personnel policies including policies relating to
  29-19  recruitment, evaluation, selection, appointment, training, and
  29-20  promotion of personnel;
  29-21              (2)  a comprehensive analysis of the commission's work
  29-22  force that meets federal and state guidelines;
  29-23              (3)  procedures by which a determination can be made of
  29-24  significant underutilization in the commission's work force of all
  29-25  persons for whom federal or state guidelines encourage a more
  29-26  equitable balance; and
  29-27              (4)  reasonable methods to address appropriately areas
   30-1  of significant underutilization in the commission's work force of
   30-2  all persons for whom federal or state guidelines encourage a more
   30-3  equitable balance.
   30-4        (b)  The policy statement shall be filed with the governor's
   30-5  office before November 1, 1985, cover an annual period, and be
   30-6  updated at least annually.  The governor's office shall develop a
   30-7  biennial report to the legislature based on the information
   30-8  submitted.  This report may be made individually or as a part of
   30-9  other biennial reports made to the legislature.  (Sec. 5.227, Water
  30-10  Code.)
  30-11        Sec. 2.110.  Employee Review and Compensation.  (a)  The
  30-12  executive director or his designee shall develop an intra-agency
  30-13  career ladder program, one part of which shall require the
  30-14  intra-agency posting of all nonentry level positions concurrently
  30-15  with any public posting.
  30-16        (b)  The executive director or his designee shall develop a
  30-17  system of annual performance evaluations based on measurable job
  30-18  tasks.  All merit pay for commission employees must be based on the
  30-19  system established under this subsection.
  30-20        (c)  If provided by legislative appropriation, the commission
  30-21  may pay the costs of transporting and delivering the household
  30-22  goods and effects of employees transferred by the executive
  30-23  director from one permanent station to another when, in the
  30-24  judgment of the executive director, the transfer will serve the
  30-25  best interest of the state.  (Secs. 5.225, 5.226, 5.232, Water
  30-26  Code.)
  30-27        Sec. 2.111.  Travel Reimbursement.  The executive director is
   31-1  entitled to receive actual and necessary travel expenses.  Other
   31-2  employees of the commission are entitled to receive travel expenses
   31-3  as provided in the General Appropriations Act.  (Sec. 5.231, Water
   31-4  Code.)
   31-5        Sec. 2.112.  Contamination Reports.  (a)  If the executive
   31-6  director acquires information that confirms that a potential public
   31-7  health hazard exists because usable groundwater has been or is
   31-8  being contaminated, the executive director, not later than the 30th
   31-9  day after the date on which the executive director acquires the
  31-10  information confirming contamination, shall give written notice of
  31-11  the contamination to the following persons:
  31-12              (1)  the county judge and the county health officer, if
  31-13  any, in each county in which the contamination has occurred or is
  31-14  occurring;
  31-15              (2)  any person under the commission's jurisdiction who
  31-16  is suspected of contributing to the contamination; and
  31-17              (3)  any other state agency with jurisdiction over any
  31-18  person who is suspected of contributing to the contamination.
  31-19        (b)  The executive director shall give the notice in the
  31-20  manner and form, and include the information, required by rule of
  31-21  the commission.  (Sec. 5.236, Water Code.)
  31-22             (Sections 2.113-2.150 reserved for expansion)
  31-23                    SUBCHAPTER E.  JUDICIAL REVIEW
  31-24        Sec. 2.151.  Judicial Review of Commission Acts.  (a)  A
  31-25  person affected by a ruling, order, decision, or other act of the
  31-26  commission may file a petition to review, set aside, modify, or
  31-27  suspend the act of the commission.
   32-1        (b)  A person affected by a ruling, order, or decision of the
   32-2  commission must file his petition within 30 days after the
   32-3  effective date of the ruling, order, or decision.  A person
   32-4  affected by an act other than a ruling, order, or decision must
   32-5  file his petition within 30 days after the date the commission
   32-6  performed the act.  (Sec. 5.351, Water Code.)
   32-7        Sec. 2.152.  Appeal of Clean Air Act Action.  (a)  A person
   32-8  affected by a ruling, order, decision, or other act of the
   32-9  commission with respect to a matter covered by Chapter 30 may
  32-10  appeal the action by filing a petition in a district court of
  32-11  Travis County.
  32-12        (b)  The petition must be filed within 30 days after the date
  32-13  of the commission's action or, in the case of a ruling, order, or
  32-14  decision, within 30 days after the effective date of the ruling,
  32-15  order, or decision.
  32-16        (c)  Service of citation on the commission must be
  32-17  accomplished within 30 days after the date on which the petition is
  32-18  filed.  Citation may be served on the executive director or any
  32-19  commission member.
  32-20        (d)  The plaintiff shall pursue the action with reasonable
  32-21  diligence.  If the plaintiff does not prosecute the action within
  32-22  one year after the date on which the action is filed, the court
  32-23  shall presume that the action has been abandoned.  The court shall
  32-24  dismiss the suit on a motion for dismissal made by the attorney
  32-25  general unless the plaintiff, after receiving due notice, can show
  32-26  good and sufficient cause for the delay.
  32-27        (e)  In an appeal of a commission action other than
   33-1  cancellation or suspension of a variance, the issue is whether the
   33-2  action is invalid, arbitrary, or unreasonable.
   33-3        (f)  An appeal of the cancellation or suspension of a
   33-4  variance must be tried in the same manner as appeals from the
   33-5  justice court to the county court.  (Sec. 382.032, Health and
   33-6  Safety Code.)
   33-7        Sec. 2.153.  Remedy for Inaction.  A person affected by the
   33-8  failure of the commission or the executive director to act in a
   33-9  reasonable time on an application to appropriate water or to
  33-10  perform any other duty with reasonable promptness may file a
  33-11  petition to compel the commission or the executive director to show
  33-12  cause why it should not be directed by the court to take immediate
  33-13  action.  (Sec. 5.352, Water Code.)
  33-14        Sec. 2.154.  Diligent Prosecution of Suit.  The plaintiff
  33-15  shall prosecute with reasonable diligence any suit brought under
  33-16  Section 2.151 or 2.153.  If the plaintiff does not secure proper
  33-17  service of process or does not prosecute his suit within one year
  33-18  after it is filed, the court shall presume that the suit has been
  33-19  abandoned.  The court shall dismiss the suit on a motion for
  33-20  dismissal made by the attorney general unless the plaintiff after
  33-21  receiving due notice can show good and sufficient cause for the
  33-22  delay.  (Sec. 5.353, Water Code.)
  33-23        Sec. 2.155.  Venue.  A suit instituted under Section 2.151 or
  33-24  2.153 must be brought in a district court in Travis County.  (Sec.
  33-25  5.354, Water Code.)
  33-26        Sec. 2.156.  Appeal of District Court Judgment.  A judgment
  33-27  or order of a district court in a suit brought for or against the
   34-1  commission is appealable as are other civil cases in which the
   34-2  district court has original jurisdiction.  (Sec. 5.355, Water
   34-3  Code.)
   34-4        Sec. 2.157.  Appeal by Executive Director Precluded.  A
   34-5  ruling, order, decision, or other act of the commission may not be
   34-6  appealed by the executive director.  (Sec. 5.356, Water Code.)
   34-7        Sec. 2.158.  Law Suits; Citation.  Law suits filed by and
   34-8  against the commission or executive director shall be in the name
   34-9  of the commission.  In suits against the commission or executive
  34-10  director, citation may be served on the executive director.  (Sec.
  34-11  5.357, Water Code.)
  34-12        Sec. 2.159.  Enforcement Proceedings.  The executive director
  34-13  may institute court proceedings to compel compliance with the
  34-14  provisions of Chapter 10 or the rules, orders, permits, or other
  34-15  decisions of the commission.  (Sec. 26.016, Water Code.)
  34-16             (Sections 2.160-2.170 reserved for expansion)
  34-17                  SUBCHAPTER F.  FINANCIAL PROVISIONS
  34-18        Sec. 2.171.  Federal Funds.  (a)  The executive director with
  34-19  the approval of the commission or the executive administrator with
  34-20  the approval of the board, as applicable under this code or other
  34-21  laws, may execute agreements with the United States Environmental
  34-22  Protection Agency or any other federal agency that administers
  34-23  programs providing federal cooperation, assistance, grants, or
  34-24  loans for research, development, investigation, training, planning,
  34-25  studies, programming, and construction related to methods,
  34-26  procedures, and facilities for the collection, treatment, and
  34-27  disposal of waste or other water quality control activities.  The
   35-1  commission or board may accept federal funds for these purposes and
   35-2  for other purposes consistent with the objectives of this chapter
   35-3  and may use the funds as prescribed by law or as provided by
   35-4  agreement.
   35-5        (b)  The commission may apply for and accept federal funds
   35-6  and enter into contracts and agreements with the federal government
   35-7  relating to planning, developing, maintaining, and enforcing the
   35-8  municipal solid waste management program.
   35-9        (c)  The commission may accept and disburse funds received
  35-10  from the federal government for purposes relating to solid waste
  35-11  management and resource recovery in the manner provided by
  35-12  Subchapters A-E, Chapter 22, and by agreement between the federal
  35-13  government and the commission.
  35-14        (d)  State funds provided to public agencies or planning
  35-15  regions under Subchapters A-E, Chapter 22, may be combined with
  35-16  local or regional funds to match federal funds on approved programs
  35-17  for municipal solid waste management.  (Sec. 26.035, Water Code;
  35-18  Secs. 363.023, 363.024, Health and Safety Code.)
  35-19        Sec. 2.172.  General Fees.  (a)  The executive director shall
  35-20  charge and collect the fees prescribed by this section.  The
  35-21  executive director shall make a record of fees prescribed when due
  35-22  and shall render an account to the person charged with the fees.
  35-23  Each fee is a separate charge and is in addition to other fees
  35-24  unless provided otherwise.
  35-25        (b)  Except as specifically provided by this section, the fee
  35-26  for filing an application or petition is $100 plus the cost of any
  35-27  required notice.  The fee for a by-pass permit shall be set by the
   36-1  commission at a reasonable amount to recover costs, but not less
   36-2  than $100.
   36-3        (c)  The fee for filing a water permit application is $100
   36-4  plus the cost of required notice.
   36-5        (d)  The fee for filing an application for fixing or
   36-6  adjusting rates is $100 plus the cost of required notice.
   36-7        (e)  A person who files with the commission a petition for
   36-8  the creation of a water district or addition of sewage and drainage
   36-9  powers or a resolution for a water district conversion must pay a
  36-10  one-time nonrefundable application fee.  The commission by rule may
  36-11  set the application fee in an amount not to exceed $700, plus the
  36-12  cost of required notice.  This fee is the only fee that the
  36-13  commission may charge with regard to the processing of an
  36-14  application for creation of a water district, addition of sewage or
  36-15  drainage powers, or conversion under this code.
  36-16        (f)  A person who files a bond issue application with the
  36-17  commission must pay an application fee set by the commission.  The
  36-18  commission by rule may set the application fee in an amount not to
  36-19  exceed $500, plus the cost of required notice.  If the bonds are
  36-20  approved by the commission, the seller shall pay to the commission
  36-21  a percentage of the bond proceeds not later than the seventh
  36-22  business day after receipt of the bond proceeds.  The commission by
  36-23  rule may set the percentage of the proceeds in an amount not to
  36-24  exceed 0.25 percent of the principal amount of the bonds actually
  36-25  issued.  Revenue from these fees shall be deposited in the state
  36-26  treasury and credited to the water quality fund.  Proceeds of the
  36-27  fees shall be used to supplement any other funds available for
   37-1  paying expenses of the commission in supervising the various bond
   37-2  and construction activities of the districts filing the
   37-3  applications.
   37-4        (g)  The fee for recording an instrument in the office of the
   37-5  commission is $1.25 per page.
   37-6        (h)  The fee for the use of water for irrigation is 50 cents
   37-7  per acre to be irrigated.
   37-8        (i)  The fee for impounding water, except under Section
   37-9  11.142, is 50 cents per acre-foot of storage, based on the total
  37-10  holding capacity of the reservoir at normal operating level.
  37-11        (j)  The fee for other uses of water not specifically named
  37-12  in this section is $1 per acre-foot, except that no political
  37-13  subdivision may be required to pay fees to use water for recharge
  37-14  of underground freshwater-bearing sands and aquifers or for
  37-15  abatement of natural pollution.
  37-16        (k)  A fee charged under this section for one use of water
  37-17  under a permit from the commission may not exceed $25,000.  The fee
  37-18  for each additional use of water under a permit for which the
  37-19  maximum fee is paid may not exceed $5,000.
  37-20        (l)  The fees prescribed by Subsections (h) through (j) are
  37-21  one-time fees, payable when the application for an appropriation is
  37-22  made.  However, if the total fee for a permit exceeds $1,000, the
  37-23  applicant shall pay one-tenth of the fee when the application is
  37-24  filed, one-tenth within 30 days after notice is mailed to him that
  37-25  the permit is granted, and the balance before he begins to use
  37-26  water under the permit.  If the applicant does not pay all of the
  37-27  amount owed before beginning to use water under the permit, the
   38-1  permit is annulled.
   38-2        (m)  If a permit is annulled, the matter reverts to the
   38-3  status of a pending, filed application and, on the payment of use
   38-4  fees as provided by this subsection together with sufficient
   38-5  postage fees for mailing notice of hearing, the commission shall
   38-6  set the application for hearing and proceed as provided by this
   38-7  code.
   38-8        (n)  Each provider of potable water or sewer utility service
   38-9  shall collect a regulatory assessment from each retail customer as
  38-10  follows:
  38-11              (1)  A public utility as defined in Section 12.002 of
  38-12  this code shall collect from each retail customer a regulatory
  38-13  assessment equal to one percent of the charge for retail water or
  38-14  sewer service.
  38-15              (2)  A water supply or sewer service corporation as
  38-16  defined in Section 12.002 of this code shall collect from each
  38-17  retail customer a regulatory assessment equal to one-half of one
  38-18  percent of the charge for retail water or sewer service.
  38-19              (3)  A district as defined in Section 50.001, Water
  38-20  Code, that provides potable water or sewer utility service to
  38-21  retail customers shall collect from each retail customer a
  38-22  regulatory assessment equal to one-half of one percent of the
  38-23  charge for retail water or sewer service.
  38-24        (o)  The regulatory assessment under Subsection (n) may be
  38-25  listed on the customer's bill as a separate item and shall be
  38-26  collected in addition to other charges for utility services.  The
  38-27  commission shall use the assessments collected from districts
   39-1  solely to pay costs and expenses incurred by the commission in the
   39-2  regulation of districts.  The commission shall use the assessments
   39-3  collected from water supply or sewer service corporations solely to
   39-4  pay costs and expenses incurred by the commission in the regulation
   39-5  of water supply or sewer service corporations.  The commission
   39-6  shall use the assessments collected from public utilities solely to
   39-7  pay costs and expenses incurred by the commission in the regulation
   39-8  of public utilities.  The commission shall annually use a portion
   39-9  of the assessments to provide on-site technical assistance and
  39-10  training to public utilities, water supply or sewer service
  39-11  corporations, and districts.  The commission shall contract with
  39-12  others to provide the services.
  39-13        (p)  Except as otherwise provided by this subsection,
  39-14  assessments under Subsection (n) collected from retail customers
  39-15  for the prior 12 months are due on January 15 of each year.  The
  39-16  executive director shall collect all assessments from the utility
  39-17  service providers, and those funds shall be paid into the state
  39-18  treasury and credited to the water utility fund.  A utility service
  39-19  provider may make quarterly payments due on January 15, April 15,
  39-20  July 15, and October 15 of each year.  If payments are made
  39-21  quarterly and received by the commission not later than the 30th
  39-22  day after the due date, the utility service provider may retain an
  39-23  administrative fee equal to 10 percent of the amount due for costs
  39-24  incurred in collecting and remitting the assessment.  The
  39-25  commission shall assess on a utility service provider a penalty
  39-26  equal to 10 percent of the amount due for any payment received
  39-27  after January 31.  Funds delinquent for more than 30 days shall
   40-1  draw interest at the rate of 10 percent a year on the assessment
   40-2  and penalty due.  The commission shall assess a penalty against a
   40-3  municipality with a population of more than 1.5 million that does
   40-4  not provide municipal water and sewer services in an annexed area
   40-5  on or before 4-1/2  years after the annexation takes effect in
   40-6  accordance with Section 43.056, Local Government Code.  A penalty
   40-7  assessed under this paragraph shall be not more than $1,000 for
   40-8  each day the services are not provided after 4-1/2  years after the
   40-9  annexation.  A penalty collected under this paragraph shall be
  40-10  deposited into a special fund in the state treasury to be used to
  40-11  provide water and sewer service to residents of the city.
  40-12        (q)  The regulatory assessment does not apply to water that
  40-13  has not been treated for the purpose of human consumption.
  40-14        (r)  The commission and the Parks and Wildlife Commission are
  40-15  exempted from payment of any filing, recording, or use fees
  40-16  required by this code.
  40-17        (s)  The commission by rule shall set a fee to be paid by
  40-18  each applicant or licensee on the issuance or renewal of a
  40-19  certificate of competency under Section 10.106.  The amount of the
  40-20  fee is determined according to the costs of the commission in
  40-21  administering Section 10.106, but may not exceed $25 annually for
  40-22  an individual wastewater treatment plant operator and $500 annually
  40-23  for a person, company, corporation, firm, or partnership that is in
  40-24  the business as a wastewater treatment facility operations company.
  40-25  The commission shall deposit any fees collected under this
  40-26  subsection in the state treasury to the credit of the waste
  40-27  treatment facility inspection fund.
   41-1        (t)  The commission shall hold all fees, except filing fees,
   41-2  which are paid with an application until the commission finally
   41-3  determines whether the application should be granted.  If the
   41-4  application is not granted, the commission shall return the fees to
   41-5  the applicant.  (Secs. 5.235, 12.112, 12.114, 26.0301(e), 26.265,
   41-6  Water Code.)
   41-7        Sec. 2.173.  Water Quality Permit Fees.  (a)  The commission
   41-8  also may prescribe and require the payment of reasonable license
   41-9  fees by an applicant for a license, including fees for periodic
  41-10  renewal of a license.  The commission may change the amount of the
  41-11  license fees from time to time.  The amount of the fees shall be
  41-12  based on the reasonable cost of performing the licensing function
  41-13  and administering the licensing system, including, where
  41-14  applicable, costs of soil percolation and other tests to determine
  41-15  the suitability of using a particular type or types of private
  41-16  sewage facilities in the area or at any location within the area,
  41-17  field inspections, travel, and other costs directly attributable to
  41-18  performing the licensing function and administering the licensing
  41-19  system.
  41-20        (b)  If the commission or the executive director has the
  41-21  responsibility for performing the licensing function, the license
  41-22  fees shall be paid to the commission.  Those fees shall not be
  41-23  deposited in the General Revenue Fund of the state but shall be
  41-24  deposited in a special fund for use by the commission in performing
  41-25  the licensing function and administering the licensing system, and
  41-26  the fees so deposited are hereby appropriated to the commission to
  41-27  use for those purposes only.
   42-1        (c)  If a local government has the responsibility for
   42-2  performing the licensing function, the fees shall be paid to the
   42-3  local government.
   42-4        (d)  An annual waste treatment inspection fee is imposed on
   42-5  each permittee for each waste discharge permit held by the
   42-6  permittee.  The fee is to supplement any other funds available to
   42-7  pay expenses of the commission in inspecting waste treatment
   42-8  facilities and enforcing the laws of the state, and the rules of
   42-9  the commission, governing waste discharge and waste treatment
  42-10  facilities.  The fee for each year is imposed on each permit in
  42-11  effect during any part of the year.  The commission, by rule, shall
  42-12  adopt a fee schedule for determining the amount of the fee to be
  42-13  charged.  The amount of the fee may not exceed $11,000 for each
  42-14  waste discharge permit held by a permittee.  In determining the
  42-15  amount of the waste treatment inspection fee, the commission may
  42-16  consider permitting factors such as flow volume, toxic pollutant
  42-17  potential, level of traditional pollutants, and heat load.  The
  42-18  commission also may consider the designated uses and segment
  42-19  ranking classification of the water affected by discharges from the
  42-20  permitted facility.  The fees collected under this subsection are
  42-21  in addition to other fees and shall be deposited in a special fund
  42-22  in the state treasury to be known as the waste treatment facility
  42-23  inspection fund.  Money in the fund shall be used as follows:
  42-24              (1)  to supplement any other funds available for paying
  42-25  expenses of the commission in inspecting waste treatment
  42-26  facilities;
  42-27              (2)  to pay for the issuance and renewal of
   43-1  certificates of competency under and to administer Section 10.106;
   43-2  and
   43-3              (3)  to pay for processing plans or amendments to plans
   43-4  and inspecting the construction of projects under those plans
   43-5  pursuant to Section 2.177 and rules of the commission adopted under
   43-6  Sections 2.177 and 10.104.  This subsection is effective until
   43-7  delegation of NPDES permit authority.
   43-8        (e)  An annual waste treatment inspection fee is imposed on
   43-9  each permittee for each waste discharge permit held by the
  43-10  permittee.  The fee is to supplement any other funds available to
  43-11  pay expenses of the commission in inspecting waste treatment
  43-12  facilities and enforcing the laws of the state and the rules of the
  43-13  commission governing waste discharge and waste treatment
  43-14  facilities.  The fee for each year is imposed on each permit in
  43-15  effect during any part of the year.  The commission by rule shall
  43-16  adopt a fee schedule for determining the amount of the fee to be
  43-17  charged.  The amount of the fee may not exceed $15,000 for each
  43-18  waste discharge permit held by a permittee.  In determining the
  43-19  amount of the waste treatment inspection fee, the commission may
  43-20  consider permitting factors such as flow volume, toxic pollutant
  43-21  potential, level of traditional pollutants, and heat load.  The
  43-22  commission may consider the designated uses and segment ranking
  43-23  classification of the water affected by discharges from the
  43-24  permitted facility.  Finally, the commission also may consider the
  43-25  expenses necessary to obtain and administer the NPDES program.  The
  43-26  fees collected under this subsection are in addition to other fees
  43-27  and shall be deposited in a special fund in the state treasury to
   44-1  be known as the waste treatment facility inspection fund.  Money in
   44-2  the fund shall be used as follows:
   44-3              (1)  to supplement any other funds available for paying
   44-4  expenses of the commission in inspecting waste treatment
   44-5  facilities;
   44-6              (2)  to pay for the issuance and renewal of
   44-7  certificates of competency under and to administer Section 10.106;
   44-8              (3)  to pay for processing plans or amendments to plans
   44-9  and inspecting the construction of projects under those plans
  44-10  pursuant to Section 2.177 and rules of the commission adopted under
  44-11  Sections 2.177 and 10.104; and
  44-12              (4)  to pay for any expenses of the commission
  44-13  necessary to obtain and administer the NPDES program in lieu of the
  44-14  federal government.  This subsection is effective on delegation of
  44-15  NPDES permit authority.
  44-16        (f)  The commission shall adopt and assess reasonable and
  44-17  necessary fees adequate to recover the costs of the commission in
  44-18  administering Section 10.127.  (Secs. 26.0291, 26.031(h), (i), (j),
  44-19  26.177(e), Water Code.)
  44-20        Sec. 2.174.  Water Rate Regulation Fees and Assessments.  (a)
  44-21  A rate change application filed with the commission must be
  44-22  accompanied by a filing fee, the amount of which is based on the
  44-23  number of connections to which the change applies as follows:
  44-24              (1)  fewer than 100 connections--$50
  44-25              (2)  100-200 connections--$100
  44-26              (3)  201-500 connections--$200
  44-27              (4)  more than 500 connections--$500.
   45-1        (b)  An application for a certificate of public convenience
   45-2  and necessity under Section 12.243 must be accompanied by an
   45-3  application fee of $100.
   45-4        (c)  An application for sale, assignment, or lease of a
   45-5  certificate of public convenience and necessity under Section
   45-6  12.249 or for a sale, acquisition, lease, or rental of a water or
   45-7  sewer system under Section 12.301 must be accompanied by an
   45-8  application fee the amount of which is based on the number of
   45-9  connections affected as follows:
  45-10              (1)  fewer than 100 connections--$50
  45-11              (2)  100-200 connections--$100
  45-12              (3)  201-500 connections--$200
  45-13              (4)  more than 500 connections--$500.
  45-14        (d)  The fees under this section are in lieu of the
  45-15  application fees required by Section 2.172(b) or (d).
  45-16        (e)  All fees paid under this section shall be collected by
  45-17  the executive director and paid into the General Revenue Fund.
  45-18        (f)  The budget of the commission is subject to legislative
  45-19  approval as part of the General Appropriations Act.
  45-20        (g)  The transactions of the commission are subject to audit
  45-21  by the State Auditor in accordance with Chapter 321, Government
  45-22  Code.  (Secs. 13.4521, 13.4522, 13.453, 13.454, 13.455, Water
  45-23  Code.)
  45-24        Sec. 2.175.  Solid Waste Disposal Permit Fees.  (a)  In this
  45-25  section:
  45-26              (1)  "Captured facility" means a manufacturing or
  45-27  production facility which generates an industrial solid waste or
   46-1  hazardous waste which is routinely stored, processed, or disposed,
   46-2  on a shared basis, in an integrated waste management unit owned and
   46-3  operated by and located within a contiguous manufacturing facility.
   46-4              (2)  "Commercial waste storage, processing, or disposal
   46-5  facility" includes any facility that accepts an industrial solid
   46-6  waste or a hazardous waste for storage, processing, including
   46-7  incineration, or disposal for a charge.
   46-8              (3)  "Dry weight" means the weight of constituents
   46-9  other than water.
  46-10              (4)  "Generator" means a person whose act or process
  46-11  produces industrial solid waste or hazardous waste or whose act
  46-12  first causes an industrial solid waste or a hazardous waste to be
  46-13  regulated by the commission.
  46-14              (5)  "Hazardous waste" means solid waste not otherwise
  46-15  exempt that is identified or listed as hazardous waste by the
  46-16  administrator of the United States Environmental Protection Agency
  46-17  under the federal Solid Waste Disposal Act, as amended (42 U.S.C.
  46-18  Section 6901 et seq.).
  46-19              (6)  "Land disposal" does not include the normal
  46-20  application of agricultural chemicals or fertilizers.
  46-21              (7)  "Land disposal facility" includes:
  46-22                    (A)  a landfill;
  46-23                    (B)  a surface impoundment, excluding an
  46-24  impoundment treating or storing waste that is disposed of under
  46-25  Chapter 10 or 13;
  46-26                    (C)  a waste pile;
  46-27                    (D)  a facility at which land treatment, land
   47-1  farming, or a land application process is used; and
   47-2                    (E)  an injection well.
   47-3              (8)  "Noncommercial waste storage, processing, or
   47-4  disposal facility" includes any facility that accepts an industrial
   47-5  solid waste or a hazardous waste for storage, processing, including
   47-6  incineration, or disposal for no charge or that stores, processes,
   47-7  or disposes of waste generated on site.
   47-8              (9)  "Primary metals high volume, low-hazard waste" is
   47-9  hazardous waste from the extraction, beneficiation, and processing
  47-10  of ores, minerals, or scrap metal and whose constituents are
  47-11  subject to the criteria for the identification or listing as a
  47-12  hazardous waste under Section 3001(a) of the Resource Conservation
  47-13  and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.) and
  47-14  account for 10 percent or less of its total dry weight volume.
  47-15        (b)  Except as provided by Subsection (e), the commission
  47-16  shall charge a fee on solid waste that is disposed of within this
  47-17  state.  The fee is the greater of 50 cents per ton or, for
  47-18  compacted solid waste, 50 cents per cubic yard or, for uncompacted
  47-19  solid waste, 10 cents per cubic yard received for disposal at a
  47-20  landfill.  The commission shall set the fee for sludge or similar
  47-21  waste applied to the land for beneficial use on a dry weight basis
  47-22  and for solid waste received at an incinerator or a shredding and
  47-23  composting facility at half the fee set for solid waste received
  47-24  for disposal at a landfill.  The commission may charge comparable
  47-25  fees for other means of solid waste disposal that are used.  The
  47-26  commission may raise or lower the fees in accordance with
  47-27  commission spending levels established by the legislature.
   48-1        (c)  The commission shall charge an annual registration fee
   48-2  to a transporter of solid waste who is required to register with
   48-3  the commission under rules adopted by the commission.  The
   48-4  commission by rule shall adopt a fee schedule.  The fee shall be
   48-5  reasonably related to the volume, the type, or both the volume and
   48-6  type of waste transported.  The registration fee charged under this
   48-7  subsection may not be less than $25 or more than $500.
   48-8        (d)  The operator of each municipal solid waste facility
   48-9  shall maintain records and report to the commission annually on the
  48-10  amount of solid waste that the facility transfers, processes,
  48-11  stores, treats, or disposes of. Each transporter required to
  48-12  register with the commission shall maintain records and report to
  48-13  the commission annually on the amount of solid waste that the
  48-14  transporter transports.  The commission by rule shall establish
  48-15  procedures for recordkeeping and reporting required under this
  48-16  subsection.
  48-17        (e)  The commission may not charge a fee under Subsection (b)
  48-18  for scrap tires that are deposited in a designated recycling
  48-19  collection area at a landfill permitted by the commission or
  48-20  licensed by a county or by a political subdivision exercising the
  48-21  authority granted by Section 20.165 and that are temporarily stored
  48-22  for eventual recycling, reuse, or energy recovery.
  48-23        (f)  The hazardous and solid waste fees fund is in the state
  48-24  treasury.  The fund consists of money collected by the commission
  48-25  from:
  48-26              (1)  fees imposed on generators of industrial solid
  48-27  waste or hazardous waste under Subsections (k) and (l);
   49-1              (2)  fees imposed on owners or operators of permitted
   49-2  industrial solid waste or hazardous waste facilities, or owners or
   49-3  operators of industrial solid waste or hazardous waste facilities
   49-4  subject to the requirement of permit authorization, under
   49-5  Subsection (m);
   49-6              (3)  fees imposed on the owner or operator of an
   49-7  industrial solid waste or hazardous waste facility for
   49-8  noncommercial and commercial management or disposal of hazardous
   49-9  waste under Subsections (n)-(p);
  49-10              (4)  fees imposed on applicants for industrial solid
  49-11  waste and hazardous waste permits under Subsection (q); and
  49-12              (5)  interest and penalties imposed under Subsection
  49-13  (u) for late payment of industrial solid waste and hazardous waste
  49-14  fees authorized under this subchapter.
  49-15        (g)  Except as provided by Subsection (o)(1), the commission
  49-16  may use the money in the fund only for regulation of industrial
  49-17  solid and hazardous waste under this chapter, including payment to
  49-18  other state agencies for services provided under contract
  49-19  concerning enforcement of this chapter.  The total amount of
  49-20  generation fees and facility fees collected and deposited to the
  49-21  credit of the hazardous and solid waste fees fund in a fiscal year
  49-22  may not be less than $4.5 million or more than $6.0 million.  Any
  49-23  unobligated balance in the fund in excess of $1 million at the end
  49-24  of the state fiscal year shall be transferred to the hazardous and
  49-25  solid waste remediation fee fund.
  49-26        (h)  The hazardous and solid waste remediation fee fund is in
  49-27  the state treasury.  The fund consists of money collected by the
   50-1  commission from:
   50-2              (1)  fees imposed on the owner or operator of an
   50-3  industrial solid waste or hazardous waste facility for commercial
   50-4  and noncommercial management or disposal of hazardous waste under
   50-5  Subsections (n)-(p) and fees imposed under Subsections (r)-(s);
   50-6              (2)  interest and penalties imposed under Subsection
   50-7  (u) for late payment of a fee or late filing of a report;
   50-8              (3)  money paid by a person liable for facility cleanup
   50-9  and maintenance under Section 20.197;
  50-10              (4)  the interest received from the investment of this
  50-11  fund, in accounts under the charge of the treasurer, to be credited
  50-12  pro rata to the hazardous and solid waste remediation fee fund; and
  50-13              (5)  monies transferred from other agencies under
  50-14  provisions of this code or grants from any person made for the
  50-15  purpose of remediation of facilities under this chapter.
  50-16        (i)  The commission may use the money collected and deposited
  50-17  to the credit of the fund under this section, including interest
  50-18  credited under Subsection (h)(4), only for:
  50-19              (1)  necessary and appropriate removal and remedial
  50-20  action at sites at which solid waste or hazardous substances have
  50-21  been disposed if funds from a liable person, independent third
  50-22  person, or the federal government are not sufficient for the
  50-23  removal or remedial action;
  50-24              (2)  necessary and appropriate maintenance of removal
  50-25  and remedial actions for the expected life of those actions if:
  50-26                    (A)  funds from a liable person have been
  50-27  collected and deposited to the credit of the fund for that purpose;
   51-1  or
   51-2                    (B)  funds from a liable person, independent
   51-3  third person, or the federal government are not sufficient for the
   51-4  maintenance;
   51-5              (3)  expenses concerning compliance with:
   51-6                    (A)  the Comprehensive Environmental Response,
   51-7  Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et
   51-8  seq.) as amended;
   51-9                    (B)  the federal Superfund Amendments and
  51-10  Reauthorization Act of 1986 (10 U.S.C. Section 2701 et seq.); and
  51-11                    (C)  Subchapters E and G, Chapter 20;
  51-12              (4)  expenses concerning the regulation and management
  51-13  of household hazardous substances and the prevention of pollution
  51-14  of the water resources of the state from the uncontrolled release
  51-15  of hazardous substances; and
  51-16              (5)  expenses concerning the cleanup or removal of a
  51-17  spill, release, or potential threat of release of a hazardous
  51-18  substance where immediate action is appropriate to protect human
  51-19  health and the environment.
  51-20        (j)  The commission shall establish the fee rates for waste
  51-21  management under Subsections (n)-(p) and revise them as necessary
  51-22  so that the amount collected each year equals between $12 million
  51-23  and $16 million after making payments to counties under Subsection
  51-24  (o)(1).  The commission shall monitor the unobligated balance in
  51-25  the hazardous and solid waste remediation fee fund and all sources
  51-26  of revenue to the fund and may adjust the amount of fees collected
  51-27  under this subsection and Subsections (r) and (s), within
   52-1  prescribed limits, to maintain an unobligated balance of at least
   52-2  $5 million and no more than $25 million at the end of each fiscal
   52-3  year.  For the purpose of this subsection, the unobligated balance
   52-4  in the hazardous and solid waste remediation fee fund shall be
   52-5  determined by subtracting from the cash balance of the fund at the
   52-6  end of each quarter:
   52-7              (1)  the total of all operating expenses encumbered by
   52-8  the commission from the fund;
   52-9              (2)  the sum of the total balances remaining on all
  52-10  contracts entered into by the commission to be paid from the fund;
  52-11  and
  52-12              (3)  the estimated total cost of investigation and
  52-13  remedial action at any site eligible for funding under the
  52-14  Comprehensive Environmental Response, Compensation and Liability
  52-15  Act, as amended, or Subchapter E or G, Chapter 20, and not
  52-16  currently under contract.
  52-17        (k)  The annual generation fee prescribed by this subsection
  52-18  is imposed on each generator who generates Class I industrial solid
  52-19  waste or hazardous waste during any part of the year.  The
  52-20  commission shall:
  52-21              (1)  require each generator of industrial solid waste
  52-22  or hazardous waste to register its activities; and
  52-23              (2)  collect the annual generation fee imposed under
  52-24  this subsection.
  52-25        (l)  The commission by rule shall adopt a generation fee
  52-26  schedule for use in determining the amount of fees to be charged.
  52-27  The annual generation fee may not be less than $50 or more than
   53-1  $25,000, except that the fee for generation of nonhazardous waste
   53-2  shall not be more than $1,000.  The commission by rule may exempt
   53-3  generators of small quantities of Class I industrial solid waste or
   53-4  hazardous waste from the payment of a generation fee under
   53-5  Subsection (k).  Wastes generated in a removal or remedial action
   53-6  accomplished through the expenditure of public funds from the
   53-7  hazardous and solid waste remediation fee fund shall be exempt from
   53-8  any generation fee assessed under Subsection (k).  Wastewaters
   53-9  containing hazardous wastes which are designated as hazardous
  53-10  solely because they exhibit a hazardous characteristic as defined
  53-11  in 40 Code of Federal Regulations, Part 261, Subpart C, relating to
  53-12  characteristics of hazardous waste, and are rendered nonhazardous
  53-13  by neutralization or other treatment on-site in totally enclosed
  53-14  treatment facilities or wastewater treatment units for which no
  53-15  permit is required under Chapter 20 are exempt from the assessment
  53-16  of hazardous waste generation fees.   By rule, the commission may
  53-17  authorize additional exemptions if consistent with state waste
  53-18  management policy.  An exemption from fee assessment does not limit
  53-19  a generator's obligation to report waste generation or waste
  53-20  management activity under any applicable regulation of the
  53-21  commission.
  53-22        (m)  The annual facility fee prescribed by this subsection is
  53-23  imposed on each person who holds one or more permits for the
  53-24  management of Class I industrial solid waste or hazardous waste or
  53-25  is operating a waste management unit subject to the requirement for
  53-26  permit authorization to process, store, or dispose of Class I
  53-27  industrial solid waste or hazardous waste during any part of the
   54-1  year.  The commission by rule shall adopt a facility fee schedule
   54-2  for determining the amount of each annual fee to be charged.  The
   54-3  annual facility fee may not be less than $250.  The maximum fee for
   54-4  a facility may not exceed $25,000.  The annual fee to be charged
   54-5  each Class I industrial solid waste or hazardous waste facility
   54-6  must be that set by the fee schedule adopted by the commission.
   54-7  The commission shall collect the facility fee imposed under this
   54-8  subsection.  During a year in which a facility subject to interim
   54-9  status hazardous waste management requirements receives a final
  54-10  permit, the facility fee under this section may be imposed only on
  54-11  one of those classifications.
  54-12        (n)  Except as provided by this subsection, a fee shall be
  54-13  imposed on the owner or operator of a waste storage, processing, or
  54-14  disposal facility for hazardous waste that is managed on site.
  54-15  This fee is in addition to any other fee that may be imposed under
  54-16  Chapter 20.  The commission by rule shall establish fee rates for
  54-17  both commercial and noncommercial storage, processing, and disposal
  54-18  of hazardous waste, as well as the manner of collection, and shall
  54-19  revise the fee amounts as necessary.  The hazardous waste
  54-20  management fee shall be based on the total weight or volume of a
  54-21  hazardous waste other than wastes that are disposed of in an
  54-22  underground injection well.  The fee for those wastes shall be
  54-23  based on the dry weight of the waste.  The hazardous waste
  54-24  management fee for wastes generated in this state may not exceed
  54-25  $20 per ton for wastes that are landfilled.  The commission by rule
  54-26  shall establish the amount of the fee for all other waste
  54-27  management methods at a lesser amount and shall base the amount on
   55-1  the factors specified in Subsection (t).  A fee, which must be the
   55-2  same for wastes generated both in state and out of state and
   55-3  consistent with fees assessed for the management of other hazardous
   55-4  wastes, shall be established by the commission for the storage,
   55-5  processing, incineration, and disposal of hazardous waste fuels
   55-6  that the commission by rule shall define considering Btu content,
   55-7  metals content, chlorinated hydrocarbon content, and the degree to
   55-8  which the waste fuel is used for energy recovery.  A fee imposed on
   55-9  the owner or operator of a commercial hazardous waste storage,
  55-10  processing, or disposal facility, for hazardous wastes that are
  55-11  generated in this state and received from an affiliate or
  55-12  wholly-owned subsidiary of the commercial facility, or from a
  55-13  captured facility, shall be the same fee imposed on a noncommercial
  55-14  facility.  For the purpose of this subsection, an affiliate of a
  55-15  commercial hazardous waste facility must have a controlling
  55-16  interest in common with that facility.  A fee may not be imposed on
  55-17  the owner or operator of a waste storage, processing, or disposal
  55-18  facility for the storage of hazardous wastes for fewer than 90
  55-19  days.  A fee may not be imposed under this subsection on the
  55-20  operation of a facility permitted under Chapter 10 or the federal
  55-21  National Pollutant Discharge Elimination System program for wastes
  55-22  treated, processed, or disposed of in a wastewater treatment system
  55-23  that discharges into surface water of the state.  The storage,
  55-24  processing, or disposal of hazardous wastes generated in a removal
  55-25  or remedial action accomplished through the expenditure of public
  55-26  funds from the hazardous and solid waste remediation fee fund shall
  55-27  be exempt from the assessment of a waste management fee under this
   56-1  subsection.  The owner or operator of a waste storage, processing,
   56-2  or disposal facility receiving hazardous waste from out-of-state
   56-3  generators shall be assessed a fee amount required on wastes
   56-4  generated in state plus an additional increment that the commission
   56-5  by rule shall establish.  In establishing an incremental fee for
   56-6  out-of-state wastes, the commission shall consider:
   56-7              (1)  factors specified by Subsection (t);
   56-8              (2)  added costs to the state of regulating the
   56-9  interstate transport and subsequent management and disposal of
  56-10  imported hazardous wastes and its associated risks;
  56-11              (3)  similar fees that may be imposed in a generator's
  56-12  state of origin for the storage, processing, or disposal of
  56-13  hazardous waste; and
  56-14              (4)  contributions in both fees and taxes paid by
  56-15  generators in this state to the support of the state's hazardous
  56-16  waste regulatory programs.
  56-17        (o)  A fee for hazardous wastes that are legitimately
  56-18  reclaimed, reused, or recycled at a waste storage, processing, or
  56-19  disposal facility must be the same for wastes generated in state
  56-20  and out of state.  Fees collected under Subsection (n) shall be
  56-21  credited as follows:
  56-22              (1)  25 percent of the commercial hazardous waste fee
  56-23  collected from each commercial waste storage, processing, or
  56-24  disposal facility shall be credited to the hazardous and solid
  56-25  waste fees fund to be distributed to the county in which the
  56-26  facility is located to assist that county in defraying the costs
  56-27  associated with commercial hazardous waste management facilities;
   57-1  and
   57-2              (2)  of the remaining amount of the commercial
   57-3  hazardous waste fee and of the total amount of the noncommercial
   57-4  hazardous waste fee collected from each waste storage, processing,
   57-5  or disposal facility:
   57-6                    (A)  50 percent of each amount shall be credited
   57-7  to the hazardous and solid waste remediation fee fund; and
   57-8                    (B)  50 percent of each amount shall be credited
   57-9  to the hazardous and solid waste fees fund.
  57-10        (p)  Funds due an affected county under Subsection (o)(1)
  57-11  shall be paid by the commission not later than the 60th day after
  57-12  the receipt and verification of the payments from commercial
  57-13  facilities in the county.  A generator of hazardous waste shall
  57-14  provide to the operator of a land disposal facility certification
  57-15  of the computation of the dry weight of a hazardous waste to be
  57-16  disposed.  The commission by rule shall provide:
  57-17              (1)  for methods of computing the dry weight of
  57-18  hazardous waste; and
  57-19              (2)  for a method to determine or estimate the dry
  57-20  weight of small volumes of hazardous waste delivered to hazardous
  57-21  waste disposal facilities for which the costs of a dry weight
  57-22  analysis are disproportionate to the costs of disposal.
  57-23        (q)  A permit application fee is imposed on each applicant
  57-24  for an industrial solid waste or hazardous waste permit.  The
  57-25  commission by rule shall establish the fee for permit applications
  57-26  at an amount that is reasonable to recover the demonstrable costs
  57-27  of processing an application and developing a draft permit, but
   58-1  that is not less than $2,000 nor more than $50,000.  The commission
   58-2  may also establish a fee rate for approval of applications or
   58-3  petitions other than new permits, including but not limited to
   58-4  minor amendments, modifications, and closure plans, which fee may
   58-5  be less than $2,000.  Application fees collected under this
   58-6  subsection shall be deposited to the credit of the hazardous and
   58-7  solid waste fees fund.
   58-8        (r)  In this subsection, "lead-acid battery" means any
   58-9  battery with a capacity of six or more volts which contains lead
  58-10  and sulfuric acid.  A wholesale or retail battery dealer who sells
  58-11  or offers to sell lead-acid batteries not for resale shall collect
  58-12  at the time and place of sale a fee for each lead-acid battery
  58-13  sold, according to the following schedule:
  58-14              (1)  for a lead-acid battery with a capacity of less
  58-15  than 12 volts, a fee of $2;
  58-16              (2)  for a lead-acid battery with a capacity of 12 or
  58-17  more volts, a fee of $3.
  58-18        (s)  A dealer required to collect a fee under Subsection (r)
  58-19  shall list as a separate item on an invoice a fee due under this
  58-20  subsection and, except as otherwise provided by this subsection, on
  58-21  or before the 20th day of the month following the end of each
  58-22  calendar month and on a form and in the manner prescribed by the
  58-23  comptroller, shall file a report with and shall remit to the
  58-24  comptroller the amount of fees collected during the preceding
  58-25  calendar month.  A person required to collect a fee under
  58-26  Subsection (r) who collects less than $50 for a calendar month or
  58-27  less than $150 for a calendar quarter is not required to file a
   59-1  monthly report but shall file a quarterly report with and make a
   59-2  quarterly remittance to the comptroller.  The quarterly report and
   59-3  remittance shall include fees collected during the preceding
   59-4  calendar quarter.  The report and remittance are due not later than
   59-5  the 20th day following the end of the calendar quarter.  An invoice
   59-6  or other record required by this subsection or rules of the
   59-7  comptroller must be maintained for at least four years after the
   59-8  date on which the invoice or record is prepared and be available
   59-9  for inspection by the comptroller at all reasonable times.  The
  59-10  comptroller shall adopt rules necessary for the administration,
  59-11  collection, reporting, and payment of the fees payable or collected
  59-12  under Subsection (r).  A person who does not file a report as
  59-13  provided by this subsection or who possesses a fee collected or
  59-14  payable under Subsection (r) and who does not remit the fee to the
  59-15  comptroller at the time and in the manner required by this
  59-16  subsection and the rules of the comptroller shall pay a penalty of
  59-17  five percent of the amount of the fee due and payable.  If the
  59-18  person does not file the report or pay the fee before the 30th day
  59-19  after the date on which the fee or report is due, the person shall
  59-20  pay a penalty of an additional five percent of the amount of the
  59-21  fee due and payable.  Except as provided in this subsection, the
  59-22  provisions of Chapters 101 and 111-113, Tax Code, apply to the
  59-23  administration, payment, collection and enforcement of fees under
  59-24  Subsection (r) in the same manner that these provisions apply to
  59-25  the administration, payment, collection, and enforcement of taxes
  59-26  under Title 2, Tax Code.  A dealer required to collect a fee under
  59-27  Subsection (r) may retain 2-1/2  cents from each fee the dealer
   60-1  collects.  A dealer shall account for amounts retained under this
   60-2  subsection in the manner prescribed by the comptroller.  The
   60-3  comptroller may deduct a percentage of the fees, not to exceed four
   60-4  percent of receipts, to pay the reasonable and necessary costs of
   60-5  administering and enforcing this subsection.  The comptroller shall
   60-6  credit the amount deducted to the general revenue fund.  The
   60-7  balance of these fees, penalties, and interest collected by the
   60-8  comptroller shall be deposited to the hazardous and solid waste
   60-9  remediation fee fund.
  60-10        (t)  To promote the public policy of preferred waste
  60-11  management methods under Section 20.023 and to provide for an
  60-12  equitable fee rate structure, the commission shall consider the
  60-13  following in establishing the fees authorized under this section:
  60-14              (1)  the variation in risks to the public associated
  60-15  with different waste management methods, including storage,
  60-16  specifically:
  60-17                    (A)  promoting the establishment and maintenance
  60-18  of industrial solid waste and hazardous waste reclamation, reuse,
  60-19  and recycling facilities;
  60-20                    (B)  promoting the public policy of preferred
  60-21  waste management methods for waste streams that are amenable to
  60-22  multiple waste management methods; and
  60-23                    (C)  considering whether the waste is ultimately
  60-24  disposed of in the state;
  60-25              (2)  the funding needed to adequately and equitably
  60-26  support the regulation of industrial solid waste and hazardous
  60-27  waste generation, storage, processing, and disposal activities and
   61-1  the remediation of contaminated disposal sites, considering:
   61-2                    (A)  the nature and extent of regulated
   61-3  activities and the variation in the cost of regulating different
   61-4  types of facilities;
   61-5                    (B)  the cost to the state of operating an
   61-6  effective program for the regulation of industrial solid waste and
   61-7  hazardous waste which protects human health and the environment and
   61-8  is consistent with state and federal authority;
   61-9                    (C)  the higher costs of regulation and oversight
  61-10  that may be required for commercial hazardous waste management
  61-11  facilities;
  61-12                    (D)  the sources and causes of contamination at
  61-13  sites in need of remediation; and
  61-14                    (E)  the benefits and beneficiaries of the
  61-15  regulatory programs and activities supported through fees assessed
  61-16  under this section;
  61-17              (3)  promoting the efficient and effective use of
  61-18  existing industrial solid waste and hazardous waste storage,
  61-19  processing, and disposal facilities within the state;
  61-20              (4)  whether a volume of waste received by a facility
  61-21  has been or will be assessed a hazardous waste fee at other
  61-22  facilities under Subsections (n)-(p);
  61-23              (5)  the prevailing rates of similar fees for hazardous
  61-24  waste activities charged in other states to which wastes from this
  61-25  state may be exported or from which wastes may be imported for
  61-26  storage, processing, or disposal; and
  61-27              (6)  in addition, in establishing fees for the
   62-1  management of hazardous waste under Subsections (n)-(p) the amount
   62-2  of state matching funds necessary for remedial actions under the
   62-3  Comprehensive Environmental Response, Compensation and Liability
   62-4  Act and the costs of state-funded remedial actions under Subchapter
   62-5  E, Chapter 20.
   62-6        (u)  Interest at an annual rate of 15 percent of the amount
   62-7  of a fee due under Subsections (k)-(q) and unpaid accrues from the
   62-8  date on which the fee is due.  A person is subject to a civil
   62-9  penalty of up to $100 for each day the violation continues for
  62-10  failure to timely submit a properly completed report as required by
  62-11  commission rule under Subsection (m).  Interest collected under
  62-12  this subsection for late payment of a fee shall be deposited in the
  62-13  state treasury to the credit of the respective fund to which the
  62-14  late fee is credited.  Any penalty collected under this subsection
  62-15  for late filing of reports shall be deposited in the state treasury
  62-16  to the credit of the hazardous and solid waste remediation fee
  62-17  fund.  (Secs. 361.013, 361.131-361.140, Health and Safety Code.)
  62-18        Sec. 2.176.  Air Quality Permit Fees.  (a)  The commission
  62-19  shall adopt, charge, and collect a fee for:
  62-20              (1)  each application for:
  62-21                    (A)  a permit or permit amendment, revision, or
  62-22  modification not subject to Title IV or V of the federal Clean Air
  62-23  Act Amendments of 1990 (Pub.L. No.  101-549);
  62-24                    (B)  a renewal review of a permit issued under
  62-25  Section 30.059 not subject to Title IV or V of the federal Clean
  62-26  Air Act Amendments of 1990 (Pub.L. No. 101-549);
  62-27              (2)  inspections of a facility or source performed to
   63-1  enforce Chapter 30 or rules adopted under Chapter 30 until the
   63-2  facility or source is required to obtain a Title IV or V operating
   63-3  permit under the federal Clean Air Act Amendments of 1990 (Pub.L.
   63-4  No. 101-549); and
   63-5              (3)  inspections performed to enforce Chapter 30 or
   63-6  rules adopted under Chapter 30 at a facility or source not required
   63-7  to obtain a Title IV or V operating permit under the federal Clean
   63-8  Air Act Amendments of 1990 (Pub.L. No. 101-549).
   63-9        (b)  The commission may adopt rules relating to charging and
  63-10  collecting a fee for an exemption from a permit authorized by
  63-11  commission rule and for a variance.
  63-12        (c)  For purposes of the fees, the commission shall treat two
  63-13  or more facilities that compose an integrated system or process as
  63-14  a single facility if a structure, device, item of equipment, or
  63-15  enclosure that constitutes or contains a given stationary source
  63-16  operates in conjunction with and is functionally integrated with
  63-17  one or more other similar structures, devices, items of equipment,
  63-18  or enclosures.
  63-19        (d)  A fee assessed under this section may not be less than
  63-20  $25 or more than $75,000.
  63-21        (e)  The commission by rule shall establish the fees to be
  63-22  collected under Subsection (a) in amounts sufficient to recover:
  63-23              (1)  the reasonable costs to review and act on a
  63-24  variance application and enforce the terms and conditions of the
  63-25  variance; and
  63-26              (2)  not less than 50 percent of the commission's
  63-27  actual annual expenditures to:
   64-1                    (A)  review and act on permits or special
   64-2  permits;
   64-3                    (B)  amend and review permits;
   64-4                    (C)  inspect permitted, exempted, and specially
   64-5  permitted facilities; and
   64-6                    (D)  enforce the rules and orders adopted and
   64-7  permits, special permits, and exemptions issued under Chapter 30,
   64-8  excluding rules and orders adopted and permits required under Title
   64-9  IV or V of the federal Clean Air Act Amendments of 1990 (Pub.L. No.
  64-10  101-549).  (Sec. 382.062, Health and Safety Code.)
  64-11        Sec. 2.177.  Edwards Aquifer Plan Review Fee.  (a)  The
  64-12  commission may impose fees for processing plans or amendments to
  64-13  plans that are subject to review and approval under the
  64-14  commission's rules for the protection of the Edwards Aquifer and
  64-15  for inspecting the construction of projects covered by those plans.
  64-16        (b)  The plans for which fees may be imposed are:
  64-17              (1)  water pollution abatement plans;
  64-18              (2)  plans for sewage collection systems; and
  64-19              (3)  plans for hydrocarbon storage facilities or
  64-20  hazardous substance storage facilities.
  64-21        (c)  The commission by rule shall adopt a fee schedule for
  64-22  fees that it may impose under this section.
  64-23        (d)  A fee imposed under this section may not be less than
  64-24  $100 or more than $2,000.
  64-25        (e)  A fee charged under this section must be based on the
  64-26  following criteria:
  64-27              (1)  if a pollution abatement plan, the area or acreage
   65-1  covered by the plan;
   65-2              (2)  if a sewage collection systems plan, the number of
   65-3  linear feet of pipe or line; and
   65-4              (3)  if a hydrocarbon storage facility or hazardous
   65-5  substance storage facility plan, the number of tanks.
   65-6        (f)  The executive director shall charge and collect a fee
   65-7  imposed under this section and shall record the time at which the
   65-8  fee is due and render an account to the person charged with the
   65-9  fee.
  65-10        (g)  A fee imposed under this section is a separate charge in
  65-11  addition to any other fee that may be provided by law or rules of
  65-12  the commission.
  65-13        (h)  A fee collected under this section shall be deposited in
  65-14  the State Treasury to the credit of the waste treatment facility
  65-15  inspection fund.  (Sec. 26.0461, Water Code.)
  65-16        Sec. 2.178.  Fee on Delivery of Certain Petroleum Products.
  65-17  (a)  In this section:
  65-18              (1)  "Bulk facility" means a facility, including
  65-19  pipeline terminals, refinery terminals, rail and barge terminals,
  65-20  and associated underground and aboveground tanks, connected or
  65-21  separate, from which petroleum products are withdrawn from bulk and
  65-22  delivered into a cargo tank or a barge used to transport those
  65-23  products.  This term does not include petroleum products consumed
  65-24  at an electric generating facility.
  65-25              (2)  "Cargo tank" means an assembly that is used for
  65-26  transporting, hauling, or delivering liquids and that consists of a
  65-27  tank having one or more compartments mounted on a wagon, truck,
   66-1  trailer, railcar, or wheels.
   66-2              (3)  "Withdrawal from bulk" means the removal of a
   66-3  petroleum product from a bulk facility storage tank for delivery
   66-4  directly into a cargo tank or a barge to be transported to another
   66-5  location other than another bulk facility for distribution or sale
   66-6  in this state.
   66-7        (b)  A fee is imposed on the delivery of a petroleum product
   66-8  on withdrawal from bulk of that product as provided by this
   66-9  subsection.  Each operator of a bulk facility on withdrawal from
  66-10  bulk of a petroleum product shall collect from the person who
  66-11  orders the withdrawal a fee in an amount determined as follows:
  66-12              (1)  $12.50 for each delivery into a cargo tank having
  66-13  a capacity of less than 2,500 gallons;
  66-14              (2)  $25 for each delivery into a cargo tank having a
  66-15  capacity of 2,500 gallons or more but less than 5,000 gallons;
  66-16              (3)  $37.50 for each delivery into a cargo tank having
  66-17  a capacity of 5,000 gallons or more but less than 8,000 gallons;
  66-18              (4)  $50 for each delivery into a cargo tank having a
  66-19  capacity of 8,000 gallons or more but less than 10,000 gallons; and
  66-20              (5)  a $25 fee for each increment of 5,000 gallons or
  66-21  any part thereof delivered into a cargo tank having a capacity of
  66-22  10,000 gallons or more.
  66-23        (c)  The fee collected under Subsection (b) shall be computed
  66-24  on the net amount of a petroleum product delivered into a cargo
  66-25  tank.
  66-26        (d)  A person who imports a petroleum product in a cargo tank
  66-27  or a barge destined for delivery into an underground or aboveground
   67-1  storage tank, regardless of whether or not the tank is exempt from
   67-2  regulation under Section 10.204, other than a storage tank
   67-3  connected to or part of a bulk facility in this state, shall pay to
   67-4  the comptroller a fee on the number of gallons imported, computed
   67-5  as provided by Subsections (b) and (c).  If a bulk facility
   67-6  operator imports a petroleum product in a cargo tank or a barge,
   67-7  the bulk facility operator is not required to pay the fee on that
   67-8  imported petroleum product if the petroleum product is delivered to
   67-9  a bulk facility from which the petroleum product will be withdrawn
  67-10  from bulk.
  67-11        (e)  A bulk facility operator who receives petroleum products
  67-12  on which the fee has been paid may take credit for the fee paid on
  67-13  monthly reports.
  67-14        (f)  Subsection (b) does not apply to a delivery of a
  67-15  petroleum product destined for export from this state if the
  67-16  petroleum product is in continuous movement to a destination
  67-17  outside this state.
  67-18        (g)  Each operator of a bulk facility and each person covered
  67-19  by Subsection (d) shall file an application with the comptroller
  67-20  for a permit to deliver a petroleum product into a cargo tank
  67-21  destined for delivery to an underground or aboveground storage
  67-22  tank, regardless of whether or not the tank is exempt from
  67-23  regulation under Section 10.204.  A permit issued by the
  67-24  comptroller under this subsection is valid on and after the date of
  67-25  its issuance and until the permit is surrendered by the holder or
  67-26  canceled by the comptroller.  An applicant for a permit issued
  67-27  under this subsection must use a form adopted or approved by the
   68-1  comptroller that contains:
   68-2              (1)  the name under which the applicant transacts or
   68-3  intends to transact business;
   68-4              (2)  the principal office, residence, or place of
   68-5  business in this state of the applicant;
   68-6              (3)  if the applicant is not an individual, the names
   68-7  of the principal officers of an applicant corporation, or the name
   68-8  of the member of an applicant partnership, and the office, street,
   68-9  or post office address of each; and
  68-10              (4)  any other information required by the comptroller.
  68-11        (h)  A permit must be posted in a conspicuous place or kept
  68-12  available for inspection at the principal place of business of the
  68-13  owner.  A copy of the permit must be kept at each place of business
  68-14  or other place of storage from which petroleum products are
  68-15  delivered into cargo tanks and in each motor vehicle used by the
  68-16  permit holder to transport petroleum products by him for delivery
  68-17  into petroleum storage tanks in this state.
  68-18        (i)  Each operator of a bulk facility and each person covered
  68-19  by Subsection (d) shall:
  68-20              (1)  list, as a separate line item on an invoice or
  68-21  cargo manifest required under this section, the amount of the
  68-22  delivery fee due under this section; and
  68-23              (2)  on or before the 25th day of the month following
  68-24  the end of each calendar month, file a report with the comptroller
  68-25  and remit the amount of fees required to be collected or paid
  68-26  during the preceding month.
  68-27        (j)  Each operator of a bulk facility or his representative
   69-1  and each person covered by Subsection (d) shall prepare the report
   69-2  required under Subsection (i) on on a form provided or approved by
   69-3  the comptroller.
   69-4        (k)  The cargo manifests or invoices or copies of the cargo
   69-5  manifests or invoices and any other records required under this
   69-6  section or rules of the comptroller must be maintained for a period
   69-7  of four years after the date on which the document or other record
   69-8  is prepared and be open for inspection by the comptroller at all
   69-9  reasonable times.
  69-10        (l)  As provided by the rules of the comptroller, the owner
  69-11  or lessee of a cargo tank or a common or contract carrier
  69-12  transporting a petroleum product shall possess a cargo manifest or
  69-13  an invoice showing the delivery point of the product, the amount of
  69-14  the required fee, and other information as required by rules of the
  69-15  comptroller.
  69-16        (m)  The comptroller shall adopt rules necessary for the
  69-17  administration, collection, reporting, and payment of the fees
  69-18  payable or collected under this section.
  69-19        (n)  A person who fails to file a report as provided by
  69-20  Subsection (i) or who possesses a fee collected or payable under
  69-21  this section and who fails to remit the fee to the comptroller at
  69-22  the time and in the manner required by this section and rules of
  69-23  the comptroller shall pay a penalty of five percent of the amount
  69-24  of the fee due and payable.  If the person fails to file the report
  69-25  or pay the fee before the 30th day after the date on which the fee
  69-26  or report is due, the person shall pay a penalty of an additional
  69-27  five percent of the amount of the fee due and payable.
   70-1        (o)  Chapters 101 and 111-113, and Sections 153.006, 153.007,
   70-2  and 153.116(b)-(j), Tax Code, apply to the administration, payment,
   70-3  collection, and enforcement of fees under this section in the same
   70-4  manner that those chapters apply to the administration, payment,
   70-5  collection, and enforcement of taxes under Title 2, Tax Code.
   70-6        (p)  The comptroller may add a penalty of 75 percent of the
   70-7  amount of the fee, penalty, and interest due if failure to file the
   70-8  report or pay the fee when it comes due is attributable to fraud or
   70-9  an intent to evade the application of this section or a rule made
  70-10  under this section or Chapter 111, Tax Code.
  70-11        (q)  The comptroller may require a bond or other security
  70-12  from a permittee and may establish the amount of the bond or other
  70-13  security.
  70-14        (r)  A person forfeits to the state a civil penalty of not
  70-15  less than $25 nor more than $200 if the person:
  70-16              (1)  refuses to stop and permit the inspection and
  70-17  examination of a motor vehicle transporting petroleum products on
  70-18  demand of a peace officer or the comptroller;
  70-19              (2)  fails or refuses to comply with or violates a
  70-20  provision of this section; or
  70-21              (3)  fails or refuses to comply with or violates a
  70-22  comptroller's rule for administering or enforcing this section.
  70-23        (s)  A person commits an offense if the person:
  70-24              (1)  refuses to stop and permit the inspection and
  70-25  examination of a motor vehicle transporting petroleum products on
  70-26  the demand of a peace officer or the comptroller;
  70-27              (2)  makes a delivery of petroleum products into cargo
   71-1  tanks on which he knows the fee is required to be collected, if at
   71-2  the time the delivery is made he does not hold a valid permit
   71-3  issued under this section;
   71-4              (3)  makes a delivery of petroleum products imported
   71-5  into this state on which he knows a fee is required to be
   71-6  collected, if at the time the delivery is made he does not hold a
   71-7  valid permit issued under this section;
   71-8              (4)  refuses to permit the comptroller or the attorney
   71-9  general to inspect, examine, or audit a book or record required to
  71-10  be kept by any person required to hold a permit under this section;
  71-11              (5)  refuses to permit the comptroller or the attorney
  71-12  general to inspect or examine any plant, equipment, or premises
  71-13  where petroleum products are stored or delivered into cargo tanks;
  71-14              (6)  refuses to permit the comptroller or the attorney
  71-15  general to measure or gauge the contents of or take samples from a
  71-16  storage tank or container on premises where petroleum products are
  71-17  stored or delivered into cargo tanks;
  71-18              (7)  is required to hold a permit under this section
  71-19  and fails or refuses to make or deliver to the comptroller a report
  71-20  required by this section to be made and delivered to the
  71-21  comptroller;
  71-22              (8)  refuses, while transporting petroleum products, to
  71-23  stop the motor vehicle he is operating when called on to do so by a
  71-24  person authorized to stop the motor vehicle;
  71-25              (9)  transports petroleum products for which a cargo
  71-26  manifest is required to be carried without possessing or exhibiting
  71-27  on demand by an officer authorized to make the demand a cargo
   72-1  manifest containing the information required to be shown on the
   72-2  manifest;
   72-3              (10)  mutilates, destroys, or secretes a book or record
   72-4  required by this section to be kept by any person required to hold
   72-5  a permit under this section;
   72-6              (11)  is required to hold a permit under this section
   72-7  or is the agent or employee of that person and makes a false entry
   72-8  or fails to make an entry in the books and records required under
   72-9  this section to be made by the person;
  72-10              (12)  transports in any manner petroleum products under
  72-11  a false cargo manifest;
  72-12              (13)  engages in a petroleum products transaction that
  72-13  requires that the person have a permit under this section without
  72-14  then and there holding the required permit;
  72-15              (14)  makes and delivers to the comptroller a report
  72-16  required under this section to be made and delivered to the
  72-17  comptroller, if the report contains false information;
  72-18              (15)  forges, falsifies, or alters an invoice or
  72-19  manifest prescribed by law; or
  72-20              (16)  fails to remit any fees collected by any person
  72-21  required to hold a permit under this section.
  72-22        (t)  The following criminal penalties apply to the offenses
  72-23  enumerated in Subsection (s):
  72-24              (1)  an offense under Subdivision (1) is a Class C
  72-25  misdemeanor;
  72-26              (2)  an offense under Subdivisions (2) through (7) is a
  72-27  Class B misdemeanor;
   73-1              (3)  an offense under Subdivisions (8) and (9) is a
   73-2  Class A misdemeanor;
   73-3              (4)  an offense under Subdivisions (10) through (15) is
   73-4  a felony of the third degree;
   73-5              (5)  an offense under Subdivision (16) is a felony of
   73-6  the second degree; and
   73-7              (6)  violations of three or more separate offenses
   73-8  under Subdivisions (10) through (15) committed pursuant to one
   73-9  scheme or continuous course of conduct may be considered as one
  73-10  offense and are punished as a felony of the second degree.
  73-11        (u)  The court may not fine a corporation or association
  73-12  under Section 12.51(c), Penal Code, unless the amount of the fine
  73-13  under that subsection is greater than the amount that could be
  73-14  fixed by the court under Section 12.51(b), Penal Code.
  73-15        (v)  In addition to a sentence imposed on a corporation, the
  73-16  court shall give notice of the conviction to the attorney general
  73-17  as required by Article 17A.09, Code of Criminal Procedure.
  73-18        (w)  The comptroller shall deduct two percent of the amount
  73-19  collected under this section as the state's charge for its services
  73-20  and shall credit the amount deducted to the general revenue fund.
  73-21  The balance of the fees, penalties, and interest collected by the
  73-22  comptroller shall be deposited in the state treasury to the credit
  73-23  of the petroleum storage tank remediation fund.
  73-24        (x)  The fee imposed under this section may not be collected
  73-25  or required to be paid on or after the first day of the second
  73-26  month following notification by the commission of the date on which
  73-27  the unobligated balance in the petroleum storage tank remediation
   74-1  fund equals or exceeds $100 million.  The commission shall notify
   74-2  the comptroller in writing of the date on which the unobligated
   74-3  balance equals or exceeds $100 million.
   74-4        (y)  If the unobligated balance in the petroleum storage tank
   74-5  remediation fund falls below $25 million, the fee shall be
   74-6  reinstated effective on the first day of the second month following
   74-7  notification by the commission.
   74-8        (z)  For purposes of Subsections (x) and (y), the unobligated
   74-9  balance in the petroleum storage tank remediation fund shall be
  74-10  determined by subtracting from the cash balance of the fund at the
  74-11  end of each month the sum of the total balances remaining on all
  74-12  contracts entered by the commission or an eligible owner for
  74-13  corrective action plus the total estimates made by the commission
  74-14  of allowable costs for corrective action that are unpaid relating
  74-15  to all commission orders issued before that date to enforce this
  74-16  subchapter.  (Sec. 26.3574, Water Code.)
  74-17        Sec. 2.179.  Storage Tank Fees.  (a)  The storage tank fund
  74-18  is created in the State Treasury.
  74-19        (b)  The storage tank fund consists of money collected by the
  74-20  commission from:
  74-21              (1)  fees imposed on facilities with underground or
  74-22  aboveground storage tanks used for the storage of regulated
  74-23  substances;
  74-24              (2)  the interest and penalties imposed under this
  74-25  section for the late payment of those fees;
  74-26              (3)  funds received from cost recovery for corrective
  74-27  and enforcement actions taken under Subchapter H, Chapter 10,
   75-1  except as provided by Subsection (c);
   75-2              (4)  funds received from insurers, guarantors, or other
   75-3  sources of financial responsibility; and
   75-4              (5)  funds from the federal government and other
   75-5  sources for use in connection with the storage tank program.
   75-6        (c)  If the commission uses money from the petroleum storage
   75-7  tank remediation fund for corrective action or enforcement as
   75-8  provided by Subchapter H, Chapter 10, money recovered in a court
   75-9  proceeding under Section 10.221 shall be deposited in the state
  75-10  treasury to the credit of the petroleum storage tank remediation
  75-11  fund.
  75-12        (d)  The commission shall impose an annual facility fee on a
  75-13  facility that operates one or more underground or aboveground
  75-14  storage tanks.  The commission may also impose reasonable interest
  75-15  and penalties for late payment of the fee as provided by commission
  75-16  rule.  The commission may establish a fee schedule that will
  75-17  generate an amount of money sufficient to fund the commission's
  75-18  budget for the regulatory program regarding underground and
  75-19  aboveground storage tanks authorized by Subchapter H, Chapter 10.
  75-20        (e)  The commission may use money in the storage tank fund
  75-21  to:
  75-22              (1)  pay the costs of taking corrective action;
  75-23              (2)  provide matching funds for grants and to fund
  75-24  contracts executed under Subchapter H, Chapter 10; and
  75-25              (3)  pay for administrative expenses, rules
  75-26  development, enforcement, monitoring, and inspection costs, and
  75-27  other costs incurred in the course of carrying out the purposes and
   76-1  duties of Subchapter H, Chapter 10.
   76-2        (f)  The maximum annual fee that the commission may impose on
   76-3  a facility is $25 for each aboveground storage tank and $50 for
   76-4  each underground storage tank operated at the facility.
   76-5        (g)  The commission shall collect the fees imposed under this
   76-6  section on dates set by commission rule.  The period between
   76-7  collection dates may not exceed two years.  The commission shall
   76-8  deposit all fees collected and all interest and penalties for late
   76-9  payment in the State Treasury to the credit of the storage tank
  76-10  fund.
  76-11        (h)  The commission shall adopt rules necessary to administer
  76-12  this section.  (Sec. 26.358, Water Code.)
  76-13        Sec. 2.180.  Injection Well Fees.  With each application for
  76-14  a disposal well permit, the commission shall collect a fee of $25
  76-15  for the benefit of the state.  (Sec. 27.014, Water Code.)
  76-16        Sec. 2.181.  On-Site Sewage Disposal System Fees.  (a)  The
  76-17  commission by rule shall establish and collect a reasonable permit
  76-18  fee to cover the cost of issuing permits under Chapter 15 and
  76-19  administering the permitting system.
  76-20        (b)  The commission at its discretion may provide variances
  76-21  to the uniform application of the permit fee.
  76-22        (c)  The permit fee shall be paid to the authorized agent or
  76-23  the commission, whichever performs the permitting function.
  76-24        (d)  The commission may assess a charge-back fee to a local
  76-25  governmental entity for which the commission issues permits for
  76-26  administrative costs relating to the permitting function that are
  76-27  not covered by the permit fees collected.
   77-1        (e)  The commission shall establish and collect a reasonable
   77-2  registration fee to cover the cost of issuing registrations under
   77-3  Chapter 15.  (Secs. 366.058, 366.059, 366.074, Health and Safety
   77-4  Code.)
   77-5        Sec. 2.182.  Toxic Chemical Release Reporting Fund; Fees.
   77-6  (a)  The toxic chemical release reporting fund consists of money
   77-7  collected by the commission from:
   77-8              (1)  fees imposed on owners and operators of facilities
   77-9  required to submit a toxic chemical release form; and
  77-10              (2)  penalties imposed under Chapter 50.
  77-11        (b)  The commission may use the money collected and deposited
  77-12  in the fund to pay for:
  77-13              (1)  costs incurred by the commission in implementing
  77-14  Chapter 50; and
  77-15              (2)  other commission activities necessary to implement
  77-16  the Emergency Planning and Community Right-to-Know Act of 1986 (42
  77-17  U.S.C. Section 11001 et seq.).
  77-18        (c)  The owner or operator of a facility required to submit a
  77-19  toxic chemical release form under Chapter 50 shall pay, at the time
  77-20  of submission, a fee of $25 for each toxic chemical release form
  77-21  submitted.
  77-22        (d)  The maximum fee for a facility may not exceed $250.
  77-23        (e)  The commission by rule may increase or decrease the
  77-24  toxic chemical release form reporting fee as necessary.
  77-25        (f)  Fees collected under this subsection shall be deposited
  77-26  in the state treasury to the credit of the toxic chemical release
  77-27  reporting fund.  (Secs. 370.007, 370.008, Health and Safety Code.)
   78-1        Sec. 2.183.  Used Oil Recycling Fund; Fees.  (a)  The used
   78-2  oil recycling fund is in the state treasury.
   78-3        (b)  The fund consists of:
   78-4              (1)  fees collected under Subchapter B, Chapter 51, and
   78-5  Subsection (f);
   78-6              (2)  interest and penalties imposed under Chapter 51
   78-7  for late payment of fees, failure to file a report, or other
   78-8  violations of Chapter 51; and
   78-9              (3)  gifts, grants, donations, or other financial
  78-10  assistance the department is authorized to receive under Section
  78-11  51.027.
  78-12        (c)  Except as provided by Subsection (d), the commission may
  78-13  use money in the fund for purposes authorized by Chapter 51,
  78-14  including:
  78-15              (1)  public education;
  78-16              (2)  grants;
  78-17              (3)  registration of used oil collection centers, used
  78-18  oil transporters, used oil marketers, and used oil recyclers; and
  78-19              (4)  administrative costs of implementing Chapter 51.
  78-20        (d)  The commission shall use 25 percent of the fees
  78-21  collected under Subsections (e)-(k) for the sole purpose of
  78-22  restoring the environmental quality of those sites in the state
  78-23  that the commission has identified as having been contaminated
  78-24  through improper used oil management and for which other funds from
  78-25  a potentially responsible party or the federal government are not
  78-26  sufficient.  This subsection expires on January 1, 1997.
  78-27        (e)  In Subsections (f)-(k):
   79-1              (1)  "First sale" means the first actual sale of
   79-2  automotive oil delivered to a location in this state and sold to a
   79-3  purchaser who is not an automotive oil manufacturer.  The term does
   79-4  not include the sale of automotive oil exported from this state to
   79-5  a location outside this state for the purpose of sale or use
   79-6  outside this state.  This term does not include sales of automotive
   79-7  oils for resale to or use by vessels engaged in foreign or
   79-8  interstate commerce.
   79-9              (2)  "Importer" means any person who imports or causes
  79-10  to be imported automotive oil into this state for sale, use, or
  79-11  consumption.
  79-12              (3)  "Oil manufacturer" means any person or entity that
  79-13  formulates automotive oil and packages, distributes, or sells that
  79-14  automotive oil.
  79-15        (f)  An oil manufacturer or importer who makes a first sale
  79-16  of automotive oil is liable for a fee.
  79-17        (g)  Each oil manufacturer or importer required to pay a fee
  79-18  under this Subsection (f) shall:
  79-19              (1)  prepare and maintain, on a form provided or
  79-20  approved by the comptroller, a report of each first sale of
  79-21  automotive oil by the person and the price received;
  79-22              (2)  retain the invoice or a copy of the invoice or
  79-23  other appropriate record of the sale for four years from the date
  79-24  of sale; and
  79-25              (3)  on or before the 25th day of the month following
  79-26  the end of each calendar quarter, file a report with the
  79-27  comptroller and remit to the comptroller the amount of fees
   80-1  required to be paid for the preceding quarter.
   80-2        (h)  Records required to be maintained under Subsection (g)
   80-3  shall be available for inspection by the comptroller at all
   80-4  reasonable times.
   80-5        (i)  The comptroller shall adopt rules necessary for the
   80-6  administration, collection, reporting, and payment of the fees
   80-7  payable or collected under Subsection (f).
   80-8        (j)  Except as provided by this section, Chapters 101 and 111
   80-9  through 113, Tax Code, apply to the administration, payment,
  80-10  collection, and enforcement of fees under Subsection (f) in the
  80-11  same manner that those chapters apply to the administration,
  80-12  payment, collection, and enforcement of taxes under Title 2, Tax
  80-13  Code.
  80-14        (k)  The fee imposed under Subsection (f) is two cents per
  80-15  quart or eight cents per gallon of automotive oil.  The commission
  80-16  shall monitor the unobligated balance of the used oil recycling
  80-17  fund and shall adjust the fee rate to meet expenditure requirements
  80-18  of the used oil recycling program and to maintain an appropriate
  80-19  fund balance.  The fee may not exceed five cents per quart or 20
  80-20  cents per gallon of automotive oil.  On or before September 1 of
  80-21  each year, the commission and the comptroller jointly shall issue
  80-22  notice of the effective fee rate for the next fiscal year.  A
  80-23  person required to pay the fee may retain one percent of the amount
  80-24  of the fees due from each quarterly payment as reimbursement for
  80-25  administrative costs.  The comptroller may deduct a percentage of
  80-26  the fees collected in the amount sufficient to pay the reasonable
  80-27  and necessary costs of administering and enforcing Subsections
   81-1  (f)-(j) and this subsection.  The comptroller shall credit the
   81-2  amount deducted to the general revenue fund.  The balance of fees
   81-3  and all penalties and interest collected shall be deposited to the
   81-4  credit of the used oil recycling fund.  (Secs. 371.061, 371.062,
   81-5  Health and Safety Code.)
   81-6        Sec. 2.184.  Waste Tire Recycling Fund; Fees.  (a)  A
   81-7  wholesale or retail tire dealer who sells or offers to sell new
   81-8  tires not for resale shall collect at the time and place of sale a
   81-9  waste tire recycling fee of $2 for each new automobile, van, bus,
  81-10  truck, trailer, semitrailer, truck tractor and semitrailer
  81-11  combination, or recreational vehicle tire sold that has a rim
  81-12  diameter equal to or greater than 12 inches but less than 26
  81-13  inches.
  81-14        (b)  A dealer required to collect a fee under this section
  81-15  may retain 2-1/2 cents from each fee the dealer collects.  A dealer
  81-16  shall account for amounts retained under this subsection in the
  81-17  manner prescribed by the comptroller.
  81-18        (c)  A dealer required to collect a fee under this section:
  81-19              (1)  shall list as a separate item on an invoice a fee
  81-20  due under this section; and
  81-21              (2)  except as provided by Subsection (d), on or before
  81-22  the 20th day of the month following the end of each calendar month
  81-23  and on a form and in the manner prescribed by the comptroller,
  81-24  shall file a report with and shall remit to the comptroller the
  81-25  amount of fees collected during the preceding calendar month.
  81-26        (d)  A person required to collect a fee under this section
  81-27  who collects less than $50 for a calendar month or less than $150
   82-1  for a calendar quarter is not required to file a monthly report but
   82-2  shall file a quarterly report with and make a quarterly remittance
   82-3  to the comptroller.  The quarterly report and remittance shall
   82-4  include fees collected during the preceding calendar quarter.  The
   82-5  report and remittance are due not later than the 20th day of the
   82-6  month following the end of the calendar quarter.
   82-7        (e)  An invoice or other record required by this section or
   82-8  rules of the comptroller must be maintained for at least four years
   82-9  after the date on which the invoice or record is prepared and be
  82-10  open for inspection by the comptroller at all reasonable times.
  82-11        (f)  The comptroller shall adopt rules necessary for the
  82-12  administration, collection, reporting, and payment of the fees
  82-13  payable or collected under this section.
  82-14        (g)  The waste tire recycling fund is a special account in
  82-15  the general revenue fund.
  82-16        (h)  The commission shall administer the fund.
  82-17        (i)  The fund consists of fees and penalties collected under
  82-18  this section, interest on money in the fund, and money from gifts,
  82-19  grants, or any other source intended to be used for the purposes of
  82-20  Subchapter N, Chapter 20.
  82-21        (j)  The fund may be used only to pay:
  82-22              (1)  waste tire processors that meet the requirements
  82-23  for payment under Section 20.475 and rules adopted under that
  82-24  section;
  82-25              (2)  the commission's reasonable and necessary
  82-26  administrative costs of performing its duties under Subchapter N,
  82-27  Chapter 20, in an amount not to exceed six percent of the money
   83-1  annually accruing to the fund; and
   83-2              (3)  the comptroller's reasonable and necessary
   83-3  administrative costs of performing the comptroller's duties under
   83-4  Subchapter N, Chapter 20, in an amount not to exceed two percent of
   83-5  the money annually accruing to the fund.  (Secs. 361.472, 361.475,
   83-6  Health and Safety Code.)
   83-7             (Sections 2.185-2.200 reserved for expansion)
   83-8                   SUBCHAPTER G.  GENERAL AUTHORITY
   83-9        Sec. 2.201.  Power to Enter Property.  (a)  The members of
  83-10  the commission and employees and agents of the commission are
  83-11  entitled to enter any public or private property at any reasonable
  83-12  time for the purpose of inspecting and investigating conditions
  83-13  relating to the quality of water in the state.  Members, employees,
  83-14  or agents acting under this authority who enter private property
  83-15  shall observe the establishment's rules and regulations concerning
  83-16  safety, internal security, and fire protection, and if the property
  83-17  has management in residence, shall notify management or the person
  83-18  then in charge of his presence and shall exhibit proper
  83-19  credentials.  If any member, employee, or agent is refused the
  83-20  right to enter in or on public or private property under this
  83-21  authority, the executive director may invoke the remedies
  83-22  authorized in Section 10.025.  This subsection is effective until
  83-23  delegation of NPDES permit authority.
  83-24        (b)  The members of the commission and employees and agents
  83-25  of the commission are entitled to enter any public or private
  83-26  property at any reasonable time for the purpose of inspecting and
  83-27  investigating conditions relating to the quality of water in the
   84-1  state or the compliance with any rule, regulation, permit or other
   84-2  order of the commission.  Members, employees, or agents acting
   84-3  under this authority who enter private property shall observe the
   84-4  establishment's rules and regulations concerning safety, internal
   84-5  security, and fire protection, and if the property has management
   84-6  in residence, shall notify management or the person then in charge
   84-7  of his presence and shall exhibit proper credentials.  If any
   84-8  member, employee, or agent is refused the right to enter in or on
   84-9  public or private property under this authority, the executive
  84-10  director may invoke the remedies authorized in Section 10.0251.
  84-11  This subsection is effective on delegation of NPDES permit
  84-12  authority.
  84-13        (c)  The executive director or his authorized agent may
  84-14  inspect any impoundment, diversion, or distribution works during
  84-15  construction to determine whether or not they are being constructed
  84-16  in a safe manner and whether or not they are being constructed
  84-17  according to the order of the commission.
  84-18        (d)  Any member or employee of the commission may enter any
  84-19  person's land, natural waterway, or artificial waterway for the
  84-20  purpose of making an investigation that would, in the judgment of
  84-21  the executive director, assist the commission in the discharge of
  84-22  its duties.
  84-23        (e)  Members of the commission and the railroad commission
  84-24  and employees of the commission and the railroad commission may
  84-25  enter public or private property to inspect and investigate
  84-26  conditions relating to injection well or disposal well activities
  84-27  within their respective jurisdictions or to monitor compliance with
   85-1  a rule, permit, or other order of the commission or railroad
   85-2  commission.  Members or employees acting under the authority of
   85-3  this subsection who enter an establishment on public or private
   85-4  property shall observe the establishment's safety, internal
   85-5  security, and fire protection rules.
   85-6        (f)  Members of the commission, employees and agents of the
   85-7  commission, and authorized agents or employees of local governments
   85-8  may enter public or private property at any time to inspect and
   85-9  investigate conditions relating to shaft activities or to monitor
  85-10  compliance with a rule, permit, or other order of the commission.
  85-11  Members, employees, or agents acting under the authority of this
  85-12  subsection who enter an establishment on public or private property
  85-13  shall observe the establishment's safety, internal security, and
  85-14  fire protection rules.
  85-15        (g)  The commission is authorized to inspect and approve
  85-16  solid waste facilities used or proposed to be used to store,
  85-17  process, or dispose of the solid waste under the agency's
  85-18  jurisdiction.
  85-19        (h)  A member, employee, or agent of the commission may enter
  85-20  public or private property, other than property designed for and
  85-21  used exclusively as a private residence housing not more than three
  85-22  families, at a reasonable time to inspect and investigate
  85-23  conditions relating to emissions of air contaminants to or the
  85-24  concentration of air contaminants in the atmosphere.
  85-25        (i)  A member, employee, or agent who enters private property
  85-26  that has management in residence shall:
  85-27              (1)  notify the management, or the person then in
   86-1  charge, of the member's, employee's, or agent's presence; and
   86-2              (2)  show proper credentials.
   86-3        (j)  A member, employee, or agent who enters private property
   86-4  shall observe that establishment's rules concerning safety,
   86-5  internal security, and fire protection.
   86-6        (k)  The commission is entitled to the remedies provided by
   86-7  Sections 30.082-30.085 if a member, employee, or agent is refused
   86-8  the right to enter public or private property as provided by
   86-9  Subsection (h).  (Secs. 12.016, 12.017, 26.014, 27.071, 28.051,
  86-10  Water Code; Secs. 361.032(a), 382.015, Health and Safety Code.)
  86-11        Sec. 2.202.  Power to Examine Records.  (a)  The members of
  86-12  the commission and employees and agents of the commission may
  86-13  examine during regular business hours any records or memoranda
  86-14  pertaining to the operation of any sewer system, disposal system,
  86-15  or treatment facility or pertaining to any discharge of waste.
  86-16  This subsection is effective until delegation of NPDES permit
  86-17  authority.
  86-18        (b)  The members of the commission and employees and agents
  86-19  of the commission may examine and copy during regular business
  86-20  hours any records or memoranda pertaining to the operation of any
  86-21  sewer system, disposal system, or treatment facility or pertaining
  86-22  to any discharge of waste or pollutants into any water in the
  86-23  state, or any other records required to be maintained.  This
  86-24  subsection is effective on delegation of NPDES permit authority.
  86-25        (c)  Members of the commission and the railroad commission
  86-26  and employees of the commission and railroad commission may examine
  86-27  and copy those records or memoranda of a business they are
   87-1  investigating as provided by Section 2.201(e) that relate to the
   87-2  operation of an injection or disposal well, or any other records
   87-3  required to be maintained by law.
   87-4        (d)  Members of the commission, employees and agents of the
   87-5  commission, and authorized agents or employees of local governments
   87-6  may examine and copy those records or memoranda of a shaft
   87-7  permittee or his contractors they are investigating or monitoring
   87-8  as provided by Section 2.201(f) that relate to the construction and
   87-9  operation of a shaft or any other records required to be maintained
  87-10  by law.
  87-11        (e)  Authorized agents or employees of the commission have
  87-12  access to and may examine and copy during regular business hours
  87-13  any records pertaining to hazardous waste management and control.
  87-14  Except as provided by this subsection, records copied under this
  87-15  subsection are public records.  If the owner of the records shows
  87-16  to the satisfaction of the executive director that the records
  87-17  would divulge trade secrets if made public, the commission shall
  87-18  consider the copied records confidential.  This subsection does not
  87-19  require the commission to consider the composition or
  87-20  characteristics of solid waste being processed, stored, disposed
  87-21  of, or otherwise handled to be held confidential.
  87-22        (f)  A member, employee, or agent of the commission may
  87-23  examine during regular business hours any records or memoranda
  87-24  relating to the operation of any air pollution or emission control
  87-25  equipment or facility, or relating to emission of air contaminants.
  87-26  This subsection does not authorize the examination of records or
  87-27  memoranda relating to the operation of equipment or a facility on
   88-1  property designed for and used exclusively as a private residence
   88-2  housing not more than three families.  The commission may prescribe
   88-3  reasonable requirements for:
   88-4              (1)  measuring and monitoring the emissions of air
   88-5  contaminants from a source or from an activity causing or resulting
   88-6  in the emission of air contaminants subject to the commission's
   88-7  jurisdiction under Chapter 30; and
   88-8              (2)  the owner or operator of the source to make and
   88-9  maintain records on the measuring and monitoring of emissions.
  88-10  (Secs. 26.015, 27.072, 28.052, Water Code; Secs. 361.037, 382.016,
  88-11  Health and Safety Code.)
  88-12        Sec. 2.203.  Contracts, Instruments.  (a)  With the approval
  88-13  of the commission, the executive director may make contracts and
  88-14  execute instruments that are necessary or convenient to the
  88-15  exercise of the commission's powers or the performance of its
  88-16  duties.
  88-17        (b)  The commission may execute contracts and instruments
  88-18  that are necessary or convenient to perform its powers or duties.
  88-19  (Sec. 26.018, Water Code; Sec.  382.033, Health and Safety Code.)
  88-20        Sec. 2.204.  Hearing Powers.  (a)  The commission may call
  88-21  and hold hearings, administer oaths, receive evidence at the
  88-22  hearing, issue subpoenas to compel the attendance of witnesses and
  88-23  the production of papers and documents related to the hearing, and
  88-24  make findings of fact and decisions with respect to administering
  88-25  the provisions of Chapter 10 or the rules, orders, or other actions
  88-26  of the commission.
  88-27        (b)  The commission may call and hold hearings, administer
   89-1  oaths, receive evidence at a hearing, issue subpoenas to compel the
   89-2  attendance of witnesses and the production of papers and documents
   89-3  related to a hearing, and make findings of fact and decisions
   89-4  relating to administering Chapter 30 or the rules, orders, or other
   89-5  actions of the commission.
   89-6        (c)  When a public hearing conducted by the commission is
   89-7  required by law to be conducted at a certain location, the
   89-8  commission shall determine the place within that location at which
   89-9  the hearing will be conducted.  In making that determination, the
  89-10  commission shall consider the cost of available facilities and the
  89-11  adequacy of a facility to accommodate the type of hearing and
  89-12  anticipated attendance.  The commission shall conduct at least one
  89-13  session of a public hearing after normal business hours on request
  89-14  by a party to the hearing or any person who desires to attend the
  89-15  hearing.  An applicant for a license, permit, registration, or
  89-16  similar form of permission required by law to be obtained from the
  89-17  commission may not amend the application after the 31st day before
  89-18  the date on which a public hearing on the application is scheduled
  89-19  to begin.  If an amendment of an application would be necessary
  89-20  within that period, the applicant shall resubmit the application to
  89-21  the commission and must again comply with notice requirements and
  89-22  any other requirements of law or commission rule as though the
  89-23  application were originally submitted to the board on that date.
  89-24  If an application for a license, permit, registration, or similar
  89-25  form of permission required by law is pending before the commission
  89-26  at a time when changes take effect concerning notice requirements
  89-27  imposed by law for that type of application, the applicant must
   90-1  comply with the new notice requirements.  (Sec. 26.020, Water Code;
   90-2  Secs. 382.029, 382.0291(b)-(e), Health and Safety Code.)
   90-3        Sec. 2.205.  Delegation of Hearing Powers.  (a)  Except for
   90-4  those hearings required to be held before the commission under
   90-5  Section 10.018(c), the commission may authorize the chief hearing
   90-6  examiner to call and hold hearings on any subject on which the
   90-7  commission may hold a hearing.  The commission may also authorize
   90-8  the chief hearing examiner to delegate to one or more hearing
   90-9  examiners the authority to hold any hearing called by him.  At any
  90-10  hearing called by the chief hearing examiner, he or the person
  90-11  delegated the authority by him to hold the hearing is empowered to
  90-12  administer oaths and receive evidence.  The individual or
  90-13  individuals holding a hearing under the authority of this
  90-14  subsection shall report the hearing in the manner prescribed by the
  90-15  commission.
  90-16        (b)  The commission may delegate the authority to hold
  90-17  hearings called by the commission to one or more commission
  90-18  members, the executive director, or one or more commission
  90-19  employees.  Except for hearings required to be held before the
  90-20  commission under Section 30.027, the commission may authorize the
  90-21  executive director to call and hold a hearing on any subject on
  90-22  which the commission may hold a hearing and delegate the authority
  90-23  to hold any hearing called by the executive director to one or more
  90-24  commission employees.  The commission may establish the
  90-25  qualifications for individuals to whom the commission or the
  90-26  executive director delegates the authority to hold hearings.  An
  90-27  individual holding a hearing under this subsection may administer
   91-1  oaths and receive evidence at the hearing and shall report the
   91-2  hearing in the manner prescribed by the commission.  (Sec. 26.021,
   91-3  Water Code; Sec. 382.030, Health and Safety Code.)
   91-4        Sec. 2.206.  Notice of Hearings; Continuance.  (a)  Except as
   91-5  otherwise provided in Sections 10.018 and 10.126, the provisions of
   91-6  this subsection apply to all hearings conducted in compliance with
   91-7  Chapter 10.  Notice of the hearing shall be published at least once
   91-8  in a newspaper regularly published or circulated in each county
   91-9  where, by virtue of the county's geographical relation to the
  91-10  subject matter of the hearing, the commission has reason to believe
  91-11  persons reside who may be affected by the action that may be taken
  91-12  as a result of the hearing.  The date of the publication shall be
  91-13  not less than 20 days before the date set for the hearing.  If
  91-14  notice of the hearing is required by this chapter to be given to a
  91-15  person, the notice shall be served personally or mailed not less
  91-16  than 20 days before the date set for the hearing to the person at
  91-17  his last address known to the commission.  If the party is not an
  91-18  individual, the notice may be given to any officer, agent, or legal
  91-19  representative of the party.  The individual or individuals holding
  91-20  the hearing, called the hearing body, shall conduct the hearing at
  91-21  the time and place stated in the notice.  The hearing body may
  91-22  continue the hearing from time to time and from place to place
  91-23  without the necessity of publishing, serving, mailing, or otherwise
  91-24  issuing a new notice.  If a hearing is continued and a time and
  91-25  place for the hearing to reconvene are not publicly announced by
  91-26  the person conducting the hearing at the hearing before it is
  91-27  recessed, a notice of any further setting of the hearing shall be
   92-1  served personally or mailed in the manner prescribed in this
   92-2  subsection at a reasonable time before the new setting, but it is
   92-3  not necessary to publish a newspaper notice of the new setting.
   92-4        (b)  Notice of a hearing under Chapter 30 shall be published
   92-5  at least once in a newspaper of general circulation in the
   92-6  municipality in which the facility is located or is proposed to be
   92-7  located or in the municipality nearest to the location or proposed
   92-8  location of the facility.  The notice must be published not less
   92-9  than 30 days before the date set for the hearing.  Notice of the
  92-10  hearing must describe briefly and in summary form the purpose of
  92-11  the hearing and the date, time, and place of the hearing.  If
  92-12  notice of a hearing is required by Chapter 30 to be given to a
  92-13  person, the notice shall be served personally or mailed to the
  92-14  person at the person's most recent address known to the board not
  92-15  less than 30 days before the date set for the hearing.  If the
  92-16  party is not an individual, the notice may be given to an officer,
  92-17  agent, or legal representative of the party.  The hearing body
  92-18  shall conduct the hearing at the time and place stated in the
  92-19  notice.  The hearing body may continue the hearing from time to
  92-20  time and from place to place without the necessity of publishing,
  92-21  serving, mailing, or otherwise issuing new notice.  If a hearing is
  92-22  continued and a time and place for the hearing to reconvene are not
  92-23  publicly announced by the hearing body at the hearing before it is
  92-24  recessed, a notice of any further setting of the hearing shall be
  92-25  served personally or mailed in the manner prescribed by this
  92-26  subsection at a reasonable time before the new setting, but it is
  92-27  not necessary to publish a newspaper notice of the new setting.  In
   93-1  this subsection, "hearing body" means the individual or individuals
   93-2  that hold a hearing under this subsection.  This subsection applies
   93-3  to all hearings held under Chapter 30 except as otherwise specified
   93-4  by Section 2.023, 30.027, or 30.078.  (Sec. 26.022, Water Code;
   93-5  Sec. 382.031, Health and Safety Code.)
   93-6        Sec. 2.207.  RESEARCH, INVESTIGATIONS.  (a)  The executive
   93-7  director shall conduct or have conducted any research and
   93-8  investigations it considers advisable and necessary for the
   93-9  discharge of the duties under Chapter 10.
  93-10        (b)  The commission shall conduct or require any research and
  93-11  investigations it considers advisable and necessary to perform its
  93-12  duties under Chapter 30.  (Sec. 26.013, Water Code; Sec. 382.034,
  93-13  Health and Safety Code.)
  93-14        Sec. 2.208.  Reports and Public Information.  (a)  The
  93-15  commission shall provide for publishing or otherwise releasing on a
  93-16  regular basis as public information:
  93-17              (1)  the results of inspections and investigations
  93-18  conducted under Section 2.201; and
  93-19              (2)  any other information routinely prepared by the
  93-20  commission relating to compliance with Chapter 10 or with a rule or
  93-21  order adopted under that chapter.
  93-22        (b)  The commission shall establish a procedure by which, in
  93-23  response to a written request, a person or organization will be
  93-24  sent a copy of an inspection, investigation, or compliance report
  93-25  for a specified facility or system or for facilities or systems in
  93-26  a specified area or, on a regular basis, a copy of the information
  93-27  released under Subsection (a).
   94-1        (c)  The commission shall charge a reasonable fee for each
   94-2  copy sent under Subsection (b).  The fee must be set at an amount
   94-3  that is estimated to recover the full cost of producing and copying
   94-4  and mailing a copy of the report and must be paid in cash or by
   94-5  cashier's check.
   94-6        (d)  A copy of a report shall be sent to the person or
   94-7  organization requesting it not later than the 30th day after the
   94-8  date on which the fee is paid or on which the report is made,
   94-9  whichever is later.
  94-10        (e)  This section does not apply to any information excepted
  94-11  under Section 3, Chapter 424, Acts of the 63rd Legislature, Regular
  94-12  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes).
  94-13  (Sec. 26.0151, Water Code.)
  94-14        Sec. 2.209.  Cooperation and Memorandum of Understanding.
  94-15  (a)  The commission shall:
  94-16              (1)  encourage voluntary cooperation by the people,
  94-17  cities, industries, associations, agricultural interests, and
  94-18  representatives of other interests in preserving the greatest
  94-19  possible utility of water in the state;
  94-20              (2)  encourage the formation and organization of
  94-21  cooperative groups, associations, cities, industries, and other
  94-22  water users for the purpose of providing a medium to discuss and
  94-23  formulate plans for attainment of water quality control;
  94-24              (3)  establish policies and procedures for securing
  94-25  close cooperation among state agencies that have water quality
  94-26  control functions; and
  94-27              (4)  cooperate with the governments of the United
   95-1  States and other states and with official or unofficial agencies
   95-2  and organizations with respect to water quality control matters and
   95-3  with respect to formulation of interstate water quality control
   95-4  compacts or agreements, and when representation of state interests
   95-5  on a basin planning agency for water quality purposes is required
   95-6  under Section 3(c) of the Federal Water Pollution Control Act, as
   95-7  amended, or other federal legislation having a similar purpose, the
   95-8  representation shall include an officer or employee of the
   95-9  commission.
  95-10        (b)  The commission by rule shall adopt any memorandum of
  95-11  understanding between the commission and another state agency.
  95-12        (c)  The commission shall:
  95-13              (1)  encourage voluntary cooperation by persons or
  95-14  affected groups in restoring and preserving the purity of the
  95-15  state's air;
  95-16              (2)  encourage and conduct studies, investigations, and
  95-17  research concerning air quality control;
  95-18              (3)  collect and disseminate information on air quality
  95-19  control;
  95-20              (4)  advise, consult, and cooperate with other state
  95-21  agencies, political subdivisions of the state, industries, other
  95-22  states, the federal government, and interested persons or groups
  95-23  concerning matters of common interest in air quality control; and
  95-24              (5)  represent the state in all matters relating to air
  95-25  quality plans, procedures, or negotiations for interstate compacts.
  95-26  (Sec. 26.017, Water Code; Secs. 382.035, 382.036, Health and Safety
  95-27  Code.)
   96-1        Sec. 2.210.  Orders.  (a)  The commission is authorized to
   96-2  issue orders and make determinations necessary to effectuate the
   96-3  purposes of Chapter 10.  The commission shall set forth the
   96-4  findings on which it bases any order granting or denying special
   96-5  relief requested of the commission or involving a determination
   96-6  following a hearing on an alleged violation of Section 10.011 or
   96-7  10.0111 or directing a person to perform or refrain from performing
   96-8  a certain act or activity.
   96-9        (b)  The commission may issue orders and make determinations
  96-10  as necessary to carry out the purposes of Chapter 30.  Orders
  96-11  authorized by Chapter 30 may be issued only by the commission
  96-12  unless expressly provided by Chapter 30.  If it appears that
  96-13  Chapter 30 or a commission rule, order, or determination is being
  96-14  violated, the commission, or the executive director if authorized
  96-15  by the commission or Chapter 30, may proceed under Sections
  96-16  30.082-30.084, or hold a public hearing and issue orders on the
  96-17  alleged violation, or take any other action authorized by Chapter
  96-18  30 as the facts may warrant.  In addition to the notice required by
  96-19  the Administrative Procedure and Texas Register Act (Article
  96-20  6252-13a, Vernon's Texas Civil Statutes), the commission or the
  96-21  executive director shall give notice to such other interested
  96-22  persons as the commission or the executive director may designate.
  96-23  (Sec.  26.019, Water Code; Sec. 382.023, Health and Safety Code.)
  96-24        Sec. 2.211.  Denial of Application; Involvement of Former
  96-25  Employees.  (a)  After providing an opportunity for a hearing to an
  96-26  applicant, the state agency shall deny an application for the
  96-27  issuance, amendment, renewal, or transfer of a permit within its
   97-1  jurisdiction and may not issue, amend, renew, or transfer the
   97-2  permit if the state agency determines that a former employee:
   97-3              (1)  participated personally and substantially as a
   97-4  former employee in the state agency's review, evaluation, or
   97-5  processing of that application before leaving employment with the
   97-6  state agency; and
   97-7              (2)  after leaving employment with the state agency,
   97-8  provided assistance on the same application for the issuance,
   97-9  amendment, renewal, or transfer of a permit, including assistance
  97-10  with preparation or presentation of the application or legal
  97-11  representation of the applicant.
  97-12        (b)  Action taken under this section does not prejudice any
  97-13  application in which the former employee did not provide
  97-14  assistance.
  97-15        (c)  In this section, "former employee" means a person:
  97-16              (1)  who was previously employed by the state agency as
  97-17  a supervisory or exempt employee; and
  97-18              (2)  whose duties during employment with that state
  97-19  agency included involvement in or supervision of that state
  97-20  agency's review, evaluation, or processing of applications.  (Sec.
  97-21  26.0283, Water Code; Sec. 361.0885, Health and Safety Code.)
  97-22               CHAPTER 3.  ON-SITE WASTEWATER TREATMENT
  97-23                           RESEARCH COUNCIL
  97-24        Sec. 3.001.  Definitions.  In this chapter:
  97-25              (1)  "Council" means the On-site Wastewater Treatment
  97-26  Research Council.
  97-27              (2)  "Commission" means the Texas Natural Resource
   98-1  Conservation Commission.
   98-2              (3)  "On-site wastewater treatment system" means a
   98-3  system of treatment devices or disposal facilities that:
   98-4                    (A)  is used for the disposal of domestic sewage,
   98-5  excluding liquid waste resulting from the processes used in
   98-6  industrial and commercial establishments;
   98-7                    (B)  is located on the site where the sewage is
   98-8  produced; and
   98-9                    (C)  produces not more than 5,000 gallons of
  98-10  waste a day.  (Sec. 367.001, Health and Safety Code.)
  98-11        Sec. 3.002.  Composition of Council.  The On-site Wastewater
  98-12  Treatment Research Council is composed of the following 11 members
  98-13  appointed by the governor:
  98-14              (1)  two builders of housing constructed on-site in
  98-15  this state;
  98-16              (2)  one residential real estate developer;
  98-17              (3)  one professional engaged in municipal or county
  98-18  regulation of on-site wastewater treatment in this state;
  98-19              (4)  one practicing engineer with significant
  98-20  experience designing on-site wastewater treatment systems;
  98-21              (5)  two employees of the Texas Natural Resource
  98-22  Conservation Commission;
  98-23              (6)  one representative of an industry using on-site
  98-24  wastewater treatment in this state as part of its commercial or
  98-25  manufacturing process;
  98-26              (7)  one person employed in the field of rural water
  98-27  quality in this state;
   99-1              (8)  one soils scientist who is involved in and
   99-2  familiar with innovative on-site wastewater disposal techniques;
   99-3  and
   99-4              (9)  one representative of the public with a
   99-5  demonstrated involvement in efforts to safeguard the environment.
   99-6  (Sec. 367.002, Health and Safety Code.)
   99-7        Sec. 3.003.  Application of Sunset Act.  (a)  The council is
   99-8  abolished and this chapter expires September 1, 2001.
   99-9        (b)  If this chapter expires under Subsection (a),
  99-10  uncommitted money in the on-site wastewater treatment research
  99-11  account shall be deposited to the credit of the general revenue
  99-12  fund.  (Sec. 367.003, Health and Safety Code.)
  99-13        Sec. 3.004.  Terms.  Council members serve for staggered
  99-14  two-year terms, with the terms of five members expiring September 1
  99-15  of each even-numbered year and the terms of six members expiring
  99-16  September 1 of each odd-numbered year.  (Sec. 367.004, Health and
  99-17  Safety Code.)
  99-18        Sec. 3.005.  Officers; Meetings.  (a)  Each year the council
  99-19  shall elect one of its members as chairman.
  99-20        (b)  The council shall meet quarterly as designated by the
  99-21  chairman or may meet in an emergency as determined by the chairman
  99-22  or a majority of the members.
  99-23        (c)  The vote of a majority, but not fewer than four, of the
  99-24  council members present at a meeting or the written approval of a
  99-25  majority of the council members is required for any council action,
  99-26  including the approval of a grant request.  (Sec. 367.005, Health
  99-27  and Safety Code.)
  100-1        Sec. 3.006.  Compensation; Expenses.  A council member is
  100-2  entitled to receive:
  100-3              (1)  the amount provided by legislative appropriation
  100-4  for the member's services; and
  100-5              (2)  reimbursement for travel expenses and other
  100-6  necessary expenses as provided by law.  (Sec. 367.006, Health and
  100-7  Safety Code.)
  100-8        Sec. 3.007.  Administration.  (a)  The commission, at the
  100-9  direction of the council, shall implement council decisions.
 100-10        (b)  The council may enter into an interagency contract with
 100-11  the commission to provide staff and other administrative support as
 100-12  required to improve the quality of wastewater treatment and reduce
 100-13  the cost of providing wastewater treatment to consumers.
 100-14        (c)  The council may accept grants and donations from other
 100-15  sources to supplement the fees collected under Section 3.010.
 100-16  Grants and donations shall be deposited to the credit of the
 100-17  on-site wastewater treatment research account of the general
 100-18  revenue fund and may be disbursed as the council directs and in
 100-19  accordance with Section 3.008.
 100-20        (d)  Administrative and facilities support costs are payable
 100-21  from the on-site wastewater treatment research account.
 100-22  (Sec. 367.007, Health and Safety Code.)
 100-23        Sec. 3.008.  AWARD OF COMPETITIVE GRANTS.  (a)  The council
 100-24  shall establish procedures for awarding competitive grants and
 100-25  disbursing grant money.
 100-26        (b)  The council may award competitive grants to:
 100-27              (1)  support applied research and demonstration
  101-1  projects by accredited colleges and universities in this state, by
  101-2  other governmental entities, or by acceptable public or private
  101-3  research centers regarding on-site wastewater treatment technology
  101-4  and systems applicable to this state that are directed toward
  101-5  improving the quality of wastewater treatment and reducing the cost
  101-6  of providing wastewater treatment to consumers; and
  101-7              (2)  enhance technology transfer regarding on-site
  101-8  wastewater treatment by using educational courses, seminars,
  101-9  symposia, publications, and other forms of information
 101-10  dissemination.
 101-11        (c)  The council may award grants or make other expenditures
 101-12  authorized under this chapter only after the comptroller certifies
 101-13  that the on-site wastewater treatment research account contains
 101-14  enough money to pay for those expenditures. (Sec. 367.008, Health
 101-15  and Safety Code.)
 101-16        Sec. 3.009.  APPROPRIATIONS.  Money appropriated for the
 101-17  purposes of this chapter shall be disbursed as the council directs
 101-18  and in accordance with Section 3.008. (Sec. 367.009, Health and
 101-19  Safety Code.)
 101-20        Sec. 3.010.  Fees.  (a)  The Texas Department of Health and
 101-21  each county, municipality, public health department, and river
 101-22  authority shall collect a $10 fee for each on-site wastewater
 101-23  treatment permit it issues.
 101-24        (b)  The fee shall be forwarded to the commission not later
 101-25  than the 30th day after the date on which it is collected.
 101-26        (c)  The commission may enforce the collection and forwarding
 101-27  of the fee.
  102-1        (d)  The fee proceeds shall be deposited to the credit of the
  102-2  on-site wastewater treatment research account of the general
  102-3  revenue fund.  (Sec. 367.010, Health and Safety Code.)
  102-4              CHAPTER 4.  ENVIRONMENTAL ADVISORY COUNCILS
  102-5              SUBCHAPTER A.  STATUTORY ADVISORY COUNCILS
  102-6        Sec. 4.001.  COUNCILS ESTABLISHED BY OTHER LAW.  In addition
  102-7  to the advisory councils established under this chapter, advisory
  102-8  councils with duties relating to the environment are provided for
  102-9  by other law, including:
 102-10              (1)  the Texas water well drillers advisory council
 102-11  (Chapters 32 and 33, Water Code); and
 102-12              (2)  the Texas irrigators advisory council (Chapter 34,
 102-13  Water Code).
 102-14             (Sections 4.002-4.010 reserved for expansion)
 102-15                   SUBCHAPTER B.  ADVISORY COUNCILS
 102-16        Sec. 4.011.  Advisory Councils.  The commission may create
 102-17  and consult with advisory councils, including councils for the
 102-18  environment, councils for public information, or any other councils
 102-19  that the commission may consider appropriate.  (Sec. 5.107, Water
 102-20  Code.)
 102-21        Sec. 4.012.  Municipal Solid Waste Management and Resource
 102-22  Recovery Advisory Council.  (a)  The Municipal Solid Waste
 102-23  Management and Resource Recovery Advisory Council is composed of
 102-24  the following 15 members appointed by the commission:
 102-25              (1)  an elected official from a municipality with a
 102-26  population of 750,000 or more;
 102-27              (2)  an elected official from a municipality with a
  103-1  population of 100,000 or more but less than 750,000;
  103-2              (3)  an elected official from a municipality with a
  103-3  population of 25,000 or more but less than 100,000;
  103-4              (4)  an elected official from a municipality with a
  103-5  population of less than 25,000;
  103-6              (5)  two elected officials of separate counties, one of
  103-7  whom is from a county with a population of less than 150,000;
  103-8              (6)  an official from a municipality or county solid
  103-9  waste agency;
 103-10              (7)  a representative from a private environmental
 103-11  conservation organization;
 103-12              (8)  a representative from a public solid waste
 103-13  district or authority;
 103-14              (9)  a representative from a planning region;
 103-15              (10)  a representative of the financial community;
 103-16              (11)  a representative from a solid waste management
 103-17  organization composed primarily of commercial operators;
 103-18              (12)  a commission member; and
 103-19              (13)  two persons representing the public who would not
 103-20  otherwise qualify as members under this subsection.
 103-21        (b)  Advisory council members serve for staggered six-year
 103-22  terms, with the terms of five members expiring August 31 of each
 103-23  odd-numbered year.
 103-24        (c)  The commission shall fill a vacancy on the advisory
 103-25  council for the unexpired term by appointing a person who has the
 103-26  same qualifications as required under Subsection (a) for the person
 103-27  who previously held the vacated position.
  104-1        (d)  A person who is appointed to a term on the advisory
  104-2  council or to fill a vacancy on the advisory council may continue
  104-3  to serve as a member only while the person continues to qualify for
  104-4  the category from which the person is appointed.
  104-5        (e)  The chairman of the commission shall appoint one member
  104-6  as advisory council president.
  104-7        (f)  The advisory council president serves for a term of two
  104-8  years expiring August 31 of each odd-numbered year.
  104-9        (g)  Each advisory council member other than the member
 104-10  representing the commission is entitled to $50 for each council
 104-11  meeting the member attends and the travel allowance provided by the
 104-12  General Appropriations Act for state employees.
 104-13        (h)  The member representing the commission is entitled to
 104-14  receive the same per diem and travel allowance the member receives
 104-15  for board meetings.
 104-16        (i)  The expenses incurred by the advisory council are to be
 104-17  paid from the planning fund, the technical assistance fund, or
 104-18  other money available for that purpose.
 104-19        (j)  The advisory council shall adopt and may amend
 104-20  procedures for the conduct of advisory council business.
 104-21        (k)  The advisory council shall hold at least one meeting
 104-22  every three months.
 104-23        (l)  The advisory council shall:
 104-24              (1)  review and evaluate the effect of state policies
 104-25  and programs on municipal solid waste management;
 104-26              (2)  make recommendations to the commission on matters
 104-27  relating to municipal solid waste management;
  105-1              (3)  recommend legislation to the commission to
  105-2  encourage the efficient management of municipal solid waste;
  105-3              (4)  recommend policies to the commission for the use,
  105-4  allocation, or distribution of the planning fund that include:
  105-5                    (A)  identification of statewide priorities for
  105-6  use of funds;
  105-7                    (B)  the manner and form of application for
  105-8  financial assistance; and
  105-9                    (C)  criteria, in addition to those prescribed by
 105-10  Section 22.093(d), to be evaluated in establishing priorities for
 105-11  providing financial assistance to applicants; and
 105-12              (5)  recommend to the commission special studies and
 105-13  projects to further the effectiveness of municipal solid waste
 105-14  management and resource recovery.  (Secs. 363.041, 363.042,
 105-15  363.043, 363.044, 363.045, 363.046, Health and Safety Code.)
 105-16        Sec. 4.013.  Waste Reduction Advisory Committee.  (a)  The
 105-17  waste reduction advisory committee is composed of nine members with
 105-18  a balanced representation of environmental and public interest
 105-19  groups and the regulated community.
 105-20        (b)  The committee shall advise the commission, pollution
 105-21  prevention council, and interagency coordination council on:
 105-22              (1)  matters the council is required to consider under
 105-23  Section 20.021(d);
 105-24              (2)  the appropriate organization of state agencies and
 105-25  the financial and technical resources required to aid the state in
 105-26  its efforts to promote waste reduction and minimization;
 105-27              (3)  the development of public awareness programs to
  106-1  educate citizens about hazardous waste and the appropriate disposal
  106-2  of hazardous waste and hazardous materials that are used and
  106-3  collected by households;
  106-4              (4)  the provision of technical assistance to local
  106-5  governments for the development of waste management strategies
  106-6  designed to assist small quantity generators of hazardous waste;
  106-7  and
  106-8              (5)  other possible programs to more effectively
  106-9  implement the state's hierarchy of preferred waste management
 106-10  technologies as set forth in Section 20.023(a).  (Sec. 361.0215,
 106-11  Health and Safety Code.)
 106-12        Sec. 4.014.  Pollution Prevention Council.  (a)  The
 106-13  commission and the Railroad Commission of Texas shall each
 106-14  designate an individual to coordinate source reduction and waste
 106-15  minimization efforts and programs in the appointing agency and
 106-16  represent the agency on the pollution prevention council.  The
 106-17  individual designated shall report to that individual's executive
 106-18  director or assistant or deputy director.
 106-19        (b)  The pollution prevention council shall coordinate the
 106-20  activities of its represented agencies that concern source
 106-21  reduction and waste minimization to ensure the consistency of and
 106-22  to avoid duplication or conflict in programs.   (Sec. 361.0211,
 106-23  Health and Safety Code.)
 106-24                 (Chapters 5-9 reserved for expansion)
 106-25               TITLE 2.  WATER QUALITY AND WATER RIGHTS
 106-26                  CHAPTER 10.  WATER QUALITY CONTROL
 106-27               SUBCHAPTER A.  ADMINISTRATIVE PROVISIONS
  107-1        Sec. 10.001.  Policy of This Chapter.  It is the policy of
  107-2  this state and the purpose of this chapter to maintain the quality
  107-3  of water in the state consistent with the public health and
  107-4  enjoyment, the propagation and protection of terrestrial and
  107-5  aquatic life, the operation of existing industries, and the
  107-6  economic development of the state; to encourage and promote the
  107-7  development and use of regional and areawide waste collection,
  107-8  treatment, and disposal systems to serve the waste disposal needs
  107-9  of the citizens of the state; and to require the use of all
 107-10  reasonable methods to implement this policy.  (Sec. 26.003, Water
 107-11  Code.)
 107-12        Sec. 10.002.  Definitions.  (a)  As used in this chapter:
 107-13              (1)  "Board" means the Texas Water Development Board.
 107-14              (2)  "Commission" means the Texas Natural Resource
 107-15  Conservation Commission.
 107-16              (3)  "Executive administrator" means the executive
 107-17  administrator of the Texas Water Development Board.
 107-18              (4)  "Executive director" means the executive director
 107-19  of the commission.
 107-20              (5)  "Water" or "water in the state" means groundwater,
 107-21  percolating or otherwise, lakes, bays, ponds, impounding
 107-22  reservoirs, springs, rivers, streams, creeks, estuaries, marshes,
 107-23  inlets, canals, the Gulf of Mexico inside the territorial limits of
 107-24  the state, and all other bodies of surface water, natural or
 107-25  artificial, inland or coastal, fresh or salt, navigable or
 107-26  nonnavigable, and including the beds and banks of all watercourses
 107-27  and bodies of surface water, that are wholly or partially inside or
  108-1  bordering the state or inside the jurisdiction of the state.
  108-2              (6)  "Waste" means sewage, industrial waste, municipal
  108-3  waste, recreational waste, agricultural waste, or other waste, as
  108-4  defined in this section.
  108-5              (7)  "Sewage" means waterborne human waste and waste
  108-6  from domestic activities, such as washing, bathing, and food
  108-7  preparation.
  108-8              (8)  "Municipal waste" means waterborne liquid,
  108-9  gaseous, or solid substances that result from any discharge from a
 108-10  publicly owned sewer system, treatment facility, or disposal
 108-11  system.
 108-12              (9)  "Recreational waste" means waterborne liquid,
 108-13  gaseous, or solid substances that emanate from any public or
 108-14  private park, beach, or recreational area.
 108-15              (10)  "Agricultural waste" means waterborne liquid,
 108-16  gaseous, or solid substances that arise from the agricultural
 108-17  industry and agricultural activities, including without limitation
 108-18  agricultural animal feeding pens and lots, structures for housing
 108-19  and feeding agricultural animals, and processing facilities for
 108-20  agricultural products.  The term "agricultural waste" does not
 108-21  include tail water or runoff water from irrigation or rainwater
 108-22  runoff from cultivated or uncultivated range land, pasture land,
 108-23  and farmland.
 108-24              (11)  "Industrial waste" means waterborne liquid,
 108-25  gaseous, or solid substances that result from any process of
 108-26  industry, manufacturing, trade, or business.
 108-27              (12)  "Other waste" means garbage, refuse, decayed
  109-1  wood, sawdust, shavings, bark, sand, lime, cinders, ashes, offal,
  109-2  oil, tar, dyestuffs, acids, chemicals, salt water, or any other
  109-3  substance, other than sewage, industrial waste, municipal waste,
  109-4  recreational waste, or agricultural waste, that may cause
  109-5  impairment of the quality of water in the state.  "Other waste"
  109-6  also includes tail water or runoff water from irrigation or
  109-7  rainwater runoff from cultivated or uncultivated range land,
  109-8  pasture land, and farmland that may cause impairment of the quality
  109-9  of the water in the state.
 109-10              (13)  "Pollution" means the alteration of the physical,
 109-11  thermal, chemical, or biological quality of, or the contamination
 109-12  of, any water in the state that renders the water harmful,
 109-13  detrimental, or injurious to humans, animal life, vegetation, or
 109-14  property or to public health, safety, or welfare, or impairs the
 109-15  usefulness or the public enjoyment of the water for any lawful or
 109-16  reasonable purpose.
 109-17              (14)  "Sewer system" means pipelines, conduits, storm
 109-18  sewers, canals, pumping stations, force mains, and all other
 109-19  constructions, devices, and appurtenant appliances used to
 109-20  transport waste.
 109-21              (15)  "Treatment facility" means any plant, disposal
 109-22  field, lagoon, incinerator, area devoted to sanitary landfills, or
 109-23  other facility installed for the purpose of treating, neutralizing,
 109-24  or stabilizing waste.
 109-25              (16)  "Disposal system" means any system for disposing
 109-26  of waste, including sewer systems and treatment facilities.
 109-27              (17)  "Local government" means an incorporated city, a
  110-1  county, a river authority, or a water district or authority acting
  110-2  under Article III, Section 52 or Article XVI, Section 59 of the
  110-3  Texas Constitution.
  110-4              (18)  "Permit" means an order issued by the commission
  110-5  in accordance with the procedures prescribed in this chapter
  110-6  establishing the treatment which shall be given to wastes being
  110-7  discharged into or adjacent to any water in the state to preserve
  110-8  and enhance the quality of the water and specifying the conditions
  110-9  under which the discharge may be made.
 110-10              (19)  "To discharge" includes to deposit, conduct,
 110-11  drain, emit, throw, run, allow to seep, or otherwise release or
 110-12  dispose of, or to allow, permit, or suffer any of these acts or
 110-13  omissions.
 110-14        (b)  As used in this chapter:
 110-15              (1)  "Board" means the Texas Water Development Board.
 110-16              (2)  "Commission" means the Texas Natural Resource
 110-17  Conservation Commission.
 110-18              (3)  "Executive administrator" means the executive
 110-19  administrator of the Texas Water Development Board.
 110-20              (4)  "Executive director" means the executive director
 110-21  of the commission.
 110-22              (5)  "Water" or "water in the state" means groundwater,
 110-23  percolating or otherwise, lakes, bays, ponds, impounding
 110-24  reservoirs, springs, rivers, streams, creeks, estuaries, wetlands,
 110-25  marshes, inlets, canals, the Gulf of Mexico, inside the territorial
 110-26  limits of the state, and all other bodies of surface water, natural
 110-27  or artificial, inland or coastal, fresh or salt, navigable or
  111-1  nonnavigable, and including the beds and banks of all watercourses
  111-2  and bodies of surface water, that are wholly or partially inside or
  111-3  bordering the state or inside the jurisdiction of the state.
  111-4              (6)  "Waste" means sewage, industrial waste, municipal
  111-5  waste, recreational waste, agricultural waste, or other waste, as
  111-6  defined in this section.
  111-7              (7)  "Sewage" means waterborne human waste and waste
  111-8  from domestic activities, such as washing, bathing, and food
  111-9  preparation.
 111-10              (8)  "Municipal waste" means waterborne liquid,
 111-11  gaseous, or solid substances that result from any discharge from a
 111-12  publicly owned sewer system, treatment facility, or disposal
 111-13  system.
 111-14              (9)  "Recreational waste" means waterborne liquid,
 111-15  gaseous, or solid substances that emanate from any public or
 111-16  private park, beach, or recreational area.
 111-17              (10)  "Agricultural waste" means waterborne liquid,
 111-18  gaseous, or solid substances that arise from the agricultural
 111-19  industry and agricultural activities, including without limitation
 111-20  agricultural animal feeding pens and lots, structures for housing
 111-21  and feeding agricultural animals, and processing facilities for
 111-22  agricultural products.  The term "agricultural waste" does not
 111-23  include tail water or runoff water from irrigation or rainwater
 111-24  runoff from cultivated or uncultivated range land, pasture land,
 111-25  and farmland.
 111-26              (11)  "Industrial waste" means waterborne liquid,
 111-27  gaseous, or solid substances that result from any process of
  112-1  industry, manufacturing, trade, or business.
  112-2              (12)  "Other waste" means garbage, refuse, decayed
  112-3  wood, sawdust, shavings, bark, sand, lime, cinders, ashes, offal,
  112-4  oil, tar, dyestuffs, acids, chemicals, salt water, or any other
  112-5  substance, other than sewage, industrial waste, municipal waste,
  112-6  recreational waste, or agricultural waste.
  112-7              (13)  "Pollutant" means dredged spoil, solid waste,
  112-8  incinerator residue, sewage, garbage, sewage sludge, filter
  112-9  backwash, munitions, chemical wastes, biological materials,
 112-10  radioactive materials, heat, wrecked or discarded equipment, rock,
 112-11  sand, cellar dirt, and industrial, municipal, and agricultural
 112-12  waste discharged into any water in the state.  The term "pollutant"
 112-13  does not include tail water or runoff water from irrigation or
 112-14  rainwater runoff from cultivated or uncultivated rangeland,
 112-15  pastureland, and farmland.
 112-16              (14)  "Pollution" means the alteration of the physical,
 112-17  thermal, chemical, or biological quality of, or the contamination
 112-18  of, any water in the state that renders the water harmful,
 112-19  detrimental, or injurious to humans, animal life, vegetation, or
 112-20  property or to public health, safety, or welfare, or impairs the
 112-21  usefulness or the public enjoyment of the water for any lawful or
 112-22  reasonable purpose.
 112-23              (15)  "Sewer system" means pipelines, conduits, storm
 112-24  sewers, canals, pumping stations, force mains, and all other
 112-25  constructions, devices, and appurtenant appliances used to
 112-26  transport waste.
 112-27              (16)  "Treatment facility" means any plant, disposal
  113-1  field, lagoon, incinerator, area devoted to sanitary landfills, or
  113-2  other facility installed for the purpose of treating, neutralizing,
  113-3  or stabilizing waste.
  113-4              (17)  "Disposal system" means any system for disposing
  113-5  of waste, including sewer systems and treatment facilities.
  113-6              (18)  "Local government" means an incorporated city, a
  113-7  county, a river authority, or a water district or authority acting
  113-8  under Article III, Section 52, or Article XVI, Section 59 of the
  113-9  Texas Constitution.
 113-10              (19)  "Permit" means an order issued by the commission
 113-11  in accordance with the procedures prescribed in this chapter
 113-12  establishing the treatment which shall be given to wastes being
 113-13  discharged into or adjacent to any water in the state to preserve
 113-14  and enhance the quality of the water and specifying the conditions
 113-15  under which the discharge may be made.
 113-16              (20)  "To discharge" includes to deposit, conduct,
 113-17  drain, emit, throw, run, allow to seep, or otherwise release or
 113-18  dispose of, or to allow, permit, or suffer any of these acts or
 113-19  omissions.
 113-20              (21)  "Point source" means any discernible, confined
 113-21  and discrete conveyance, including but not limited to any pipe,
 113-22  ditch, channel, tunnel, conduit, well, discrete fissure, container,
 113-23  rolling stock, concentrated animal feeding operation, or vessel or
 113-24  other floating craft, from which pollutants or wastes are or may be
 113-25  discharged into or adjacent to any water in the state.
 113-26              (22)  "Identified state supplement to an NPDES permit"
 113-27  means any part of a permit on which the commission has entered a
  114-1  written designation to indicate that the commission has adopted
  114-2  that part solely in order to carry out the commission's duties
  114-3  under state statutes and not in pursuance of administration
  114-4  undertaken to carry out a permit program under approval by the
  114-5  Administrator of the United States Environmental Protection Agency.
  114-6              (23)  "NPDES" means the National Pollutant Discharge
  114-7  Elimination System under which the Administrator of the United
  114-8  States Environmental Protection Agency can delegate permitting
  114-9  authority to the State of Texas in accordance with Section 402(b)
 114-10  of the Federal Water Pollution Control Act.
 114-11              (24)  "Treatment works" means any devices and systems
 114-12  used in the storage, treatment, recycling, and reclamation of waste
 114-13  to implement this chapter or necessary to recycle or reuse water at
 114-14  the most economical cost over the estimated life of the works,
 114-15  including:
 114-16                    (A)  intercepting sewers, outfall sewers,
 114-17  pumping, power, and other equipment and their appurtenances;
 114-18                    (B)  extensions, improvements, remodeling,
 114-19  additions, and alterations of the items in Paragraph (A);
 114-20                    (C)  elements essential to provide a reliable
 114-21  recycled supply such as standby treatment units and clear-well
 114-22  facilities;
 114-23                    (D)  any works, including sites and acquisition
 114-24  of the land that will be a part of or used in connection with the
 114-25  treatment process or is used for ultimate disposal of residues
 114-26  resulting from such treatment;
 114-27                    (E)  any plant, disposal field, lagoon, canal,
  115-1  incinerator, area devoted to sanitary landfills, or other
  115-2  facilities installed for the purpose of treating, neutralizing, or
  115-3  stabilizing waste; and
  115-4                    (F)  facilities to provide for the collection,
  115-5  control, and disposal of waste heat.
  115-6              (25)  "Person" means an individual, association,
  115-7  partnership, corporation, municipality, state or federal agency, or
  115-8  an agent or employee thereof.  Subsection (a) is effective until
  115-9  delegation of NPDES permit authority.  Subsection (b) is effective
 115-10  on delegation of NPDES permit authority.  (Sec.  26.001, Water
 115-11  Code.)
 115-12        Sec. 10.003.  Ownership of Groundwater.  Nothing in this
 115-13  chapter affects ownership rights in underground water.  (Sec.
 115-14  26.002, Water Code.)
 115-15            (Sections 10.004-10.010 reserved for expansion)
 115-16             SUBCHAPTER B.  PROHIBITION AGAINST POLLUTION
 115-17        Sec. 10.011.  Unauthorized Discharges Prohibited.
 115-18  (a)  Except as authorized by a rule, permit, or order issued by the
 115-19  commission, no person may:
 115-20              (1)  discharge sewage, municipal waste, recreational
 115-21  waste, agricultural waste, or industrial waste into or adjacent to
 115-22  any water in the state;
 115-23              (2)  discharge other waste into or adjacent to any
 115-24  water in the state which in itself or in conjunction with any other
 115-25  discharge or activity causes, continues to cause, or will cause
 115-26  pollution of any of the water in the state; or
 115-27              (3)  commit any other act or engage in any other
  116-1  activity which in itself or in conjunction with any other discharge
  116-2  or activity causes, continues to cause, or will cause pollution of
  116-3  any of the water in the state, unless the activity is under the
  116-4  jurisdiction of the Parks and Wildlife Department, the General Land
  116-5  Office, or the Railroad Commission of Texas, in which case this
  116-6  subdivision does not apply.
  116-7        (b)  In the enforcement of Subsections (a)(2) and (3),
  116-8  consideration shall be given to the state of existing technology,
  116-9  economic feasibility, and the water quality needs of the water that
 116-10  might be affected.
 116-11        (c)  No person may cause, suffer, allow, or permit the
 116-12  discharge of any waste or the performance of any activity in
 116-13  violation of this chapter or of any rule, permit, or order of the
 116-14  commission.
 116-15        (d)  This section is effective until delegation of NPDES
 116-16  permit authority.  (Sec. 26.121, Water Code.)
 116-17        Sec. 10.0111.  Unauthorized Discharges Prohibited.  (a)
 116-18  Except as authorized by the commission, no person may:
 116-19              (1)  discharge sewage, municipal waste, recreational
 116-20  waste, agricultural waste, or industrial waste into or adjacent to
 116-21  any water in the state;
 116-22              (2)  discharge other waste into or adjacent to any
 116-23  water in the state which in itself or in conjunction with any other
 116-24  discharge or activity causes, continues to cause, or will cause
 116-25  pollution of any of the water in the state; or
 116-26              (3)  commit any other act or engage in any other
 116-27  activity which in itself or in conjunction with any other discharge
  117-1  or activity causes, continues to cause, or will cause pollution of
  117-2  any of the water in the state, unless the activity is under the
  117-3  jurisdiction of the Parks and Wildlife Department, the General Land
  117-4  Office, or the Railroad Commission of Texas, in which case this
  117-5  subdivision does not apply.
  117-6        (b)  In the enforcement of Subsections (a)(2) and (3),
  117-7  consideration shall be given to the state of existing technology,
  117-8  economic feasibility, and the water quality needs of the water that
  117-9  might be affected.  This subdivision does not apply to any NPDES
 117-10  activity.
 117-11        (c)  No person may cause, suffer, allow, or permit the
 117-12  discharge of any waste or the performance of any activity in
 117-13  violation of this chapter or of any permit or order of the
 117-14  commission.
 117-15        (d)  Except as authorized by the commission, no person may
 117-16  discharge any pollutant, sewage, municipal waste, recreational
 117-17  waste, agricultural waste, or industrial waste from any point
 117-18  source into any water in the state.
 117-19        (e)  No person may cause, suffer, allow, or permit the
 117-20  discharge from a point source of any waste or of any pollutant, or
 117-21  the performance or failure of any activity other than a discharge,
 117-22  in violation of this chapter or of any rule, regulation, permit, or
 117-23  other order of the commission.
 117-24        (f)  This section is effective on delegation of NPDES permit
 117-25  authority.  (Sec. 26.121, Water Code.)
 117-26        Sec. 10.012.  Commission May Issue Permits.  (a)  The
 117-27  commission may issue permits and amendments to permits for the
  118-1  discharge of waste into or adjacent to water in the state.
  118-2        (b)  A person desiring to obtain a permit or to amend a
  118-3  permit shall submit an application to the commission containing all
  118-4  information reasonably required by the commission.
  118-5        (c)  A person may not commence construction of a treatment
  118-6  facility until the commission has issued a permit to authorize the
  118-7  discharge of waste from the facility, except with the approval of
  118-8  the commission.
  118-9        (d)  This section is effective until delegation of NPDES
 118-10  permit authority.  (Sec. 26.027, Water Code.)
 118-11        Sec. 10.0121.  Commission May Issue Permits.  (a)  The
 118-12  commission may issue permits and amendments to permits for the
 118-13  discharge of waste or pollutants into or adjacent to water in the
 118-14  state.  No permit shall be issued authorizing the discharge of any
 118-15  radiological, chemical, or biological warfare agent or high-level
 118-16  radioactive waste.  The commission may refuse to issue a permit
 118-17  when the commission finds that issuance of the permit would violate
 118-18  the provisions of any state or federal law or rule or regulation
 118-19  promulgated thereunder, or when the commission finds that issuance
 118-20  of the permit would interfere with the purpose of this chapter.
 118-21        (b)  A person desiring to obtain a permit or to amend a
 118-22  permit shall submit an application to the commission containing all
 118-23  information reasonably required by the commission.
 118-24        (c)  A person may not commence construction of a treatment
 118-25  facility until the commission has issued a permit to authorize the
 118-26  discharge of waste from the facility, except with the approval of
 118-27  the commission.
  119-1        (d)  The commission may not require under this chapter any
  119-2  permit for the placing of dredged or fill materials into or
  119-3  adjacent to water in the state for the purpose of constructing,
  119-4  modifying, or maintaining facilities or structures, but this does
  119-5  not change or limit any authority the commission may have with
  119-6  respect to the control of water quality.  The commission may adopt
  119-7  rules and regulations to govern and control the discharge of
  119-8  dredged or fill materials consistent with the purpose of this
  119-9  chapter.
 119-10        (e)  This section is effective on delegation of NPDES permit
 119-11  authority.  (Sec. 26.027, Water Code.)
 119-12        Sec. 10.013.  Action on Application.  (a)  Except as provided
 119-13  in Subsections (b) and (c), notice shall be given to the persons
 119-14  who in the judgment of the commission may be affected by an
 119-15  application for a permit, permit amendment, or renewal of a permit.
 119-16  For any application involving an average daily discharge of five
 119-17  million gallons or more, the notice shall be given not later than
 119-18  20 days before the date on which the commission acts on the
 119-19  application, to each county judge in the county or counties located
 119-20  within 100 statute miles of the point of discharge who have
 119-21  requested in writing that the commission give that notice and
 119-22  through which water, into or adjacent to which waste or pollutants
 119-23  are to be discharged under the permit, flows after the discharge.
 119-24  The commission, on the motion of a commissioner, or on the request
 119-25  of the executive director or any affected person, shall hold a
 119-26  public hearing on the application for a permit, permit amendment,
 119-27  or renewal of a permit.
  120-1        (b)  An application to amend a permit to improve the quality
  120-2  of waste authorized to be discharged may be set for consideration
  120-3  and may be acted on by the commission at a regular meeting without
  120-4  the necessity of holding a public hearing if the applicant does not
  120-5  seek to increase significantly the quantity of waste authorized to
  120-6  be discharged or change materially the pattern or place of
  120-7  discharge.  Notice of the application shall be mailed to the mayor
  120-8  and health authorities for the city or town, and the county judge
  120-9  and health authorities for the county, in which the waste is or
 120-10  will be discharged, at least 10 days before the commission meeting,
 120-11  and they may present information to the commission on the
 120-12  application.
 120-13        (c)  An application to renew a permit for a confined animal
 120-14  feeding operation which was issued between July 1, 1974, and
 120-15  December 31, 1977, may be set for consideration and may be acted on
 120-16  by the commission at a regular meeting without the necessity of
 120-17  holding a public hearing if the applicant does not seek to
 120-18  discharge into or adjacent to water in the state and does not seek
 120-19  to change materially the pattern or place of disposal.
 120-20        (d)  For the purposes of Subsection (a), the commission may
 120-21  act on the application without holding a public hearing if all of
 120-22  the following conditions are met:
 120-23              (1)  not less than 30 days before the date of action on
 120-24  the application by the commission, the applicant has published the
 120-25  commission's notice of the application at least once in a newspaper
 120-26  regularly published or circulated within each county where the
 120-27  proposed facility or discharge is located and in each county
  121-1  affected by the discharge;
  121-2              (2)  not less than 30 days before the date of action on
  121-3  the application by the commission, the applicant has served or
  121-4  mailed the commission's notice of the application to persons who in
  121-5  the judgment of the commission may be affected, including the
  121-6  county judges as required by Subsection (a), and as part of his
  121-7  application the applicant shall submit an affidavit which lists the
  121-8  names and addresses of the persons who may be affected by the
  121-9  application and includes the source of the list; and
 121-10              (3)  within 30 days after the date of the newspaper
 121-11  publication of the commission's notice, neither a commissioner, the
 121-12  executive director, nor an affected person who objects to the
 121-13  application has requested a public hearing.   (Sec. 26.028, Water
 121-14  Code.)
 121-15        Sec. 10.014.  Consideration of Past Performance and
 121-16  Compliance.  In considering the issuance, amendment, or renewal of
 121-17  a permit to discharge effluent comprised primarily of sewage or
 121-18  municipal waste, the commission shall consider any adjudicated
 121-19  decision on or compliance proceeding addressing past performance
 121-20  and compliance of the applicant and its operator with the laws of
 121-21  this state governing waste discharge, waste treatment, or waste
 121-22  disposal facilities and with the terms of any permit or order
 121-23  issued by the commission.   (Sec. 26.0281, Water Code.)
 121-24        Sec. 10.015.  Conditions of Permit; Amendment; Revocation and
 121-25  Suspension.  (a)  In each permit, the commission shall prescribe
 121-26  the conditions on which it is issued, including:
 121-27              (1)  the duration of the permit;
  122-1              (2)  the location of the point of discharge of the
  122-2  waste;
  122-3              (3)  the maximum quantity of waste that may be
  122-4  discharged under the permit at any time and from time to time;
  122-5              (4)  the character and quality of waste that may be
  122-6  discharged under the permit; and
  122-7              (5)  any monitoring and reporting requirements
  122-8  prescribed by the commission for the permittee.
  122-9        (b)  After a public hearing, notice of which shall be given
 122-10  to the permittee, the commission may require the permittee, from
 122-11  time to time, for good cause, to conform to new or additional
 122-12  conditions.  The commission shall allow the permittee a reasonable
 122-13  time to conform to the new or additional conditions, and on
 122-14  application of the permittee, the commission may grant additional
 122-15  time.
 122-16        (c)  A permit does not become a vested right in the
 122-17  permittee.  After a public hearing, notice of which shall be given
 122-18  to the permittee, the commission may revoke or suspend a permit for
 122-19  good cause on any of the following grounds:
 122-20              (1)  the permittee has failed or is failing to comply
 122-21  with the conditions of the permit;
 122-22              (2)  the permit is subject to cancellation or
 122-23  suspension under Section 10.154;
 122-24              (3)  the permit or operations under the permit have
 122-25  been abandoned; or
 122-26              (4)  the permit is no longer needed by the permittee.
 122-27        (d)  The notice required by Subsections (b) and (c) shall be
  123-1  sent to the permittee at his last known address as shown by the
  123-2  records of the commission.
  123-3        (e)  If the permittee requests or consents to the revocation
  123-4  or suspension of the permit, the executive director may revoke or
  123-5  suspend the permit.
  123-6        (f)  This section is effective until delegation of NPDES
  123-7  permit authority.  (Sec. 26.029, Water Code.)
  123-8        Sec. 10.0151.  Conditions of Permit; Amendment; Revocation
  123-9  and Suspension.  (a)  In each permit, the commission shall
 123-10  prescribe the conditions on which it is issued, including:
 123-11              (1)  the duration of the permit;
 123-12              (2)  the location of the point of discharge of the
 123-13  waste;
 123-14              (3)  the maximum quantity of waste that may be
 123-15  discharged under the permit at any time and from time to time;
 123-16              (4)  the character and quality of waste that may be
 123-17  discharged under the permit; and
 123-18              (5)  any monitoring and reporting requirements
 123-19  prescribed by the commission for the permittee.
 123-20        (b)  After a public hearing, notice of which shall be given
 123-21  to the permittee, the commission may require the permittee, from
 123-22  time to time, for good cause, in conformance with applicable laws,
 123-23  to conform to new or additional conditions.
 123-24        (c)  A permit does not become a vested right in the
 123-25  permittee.  After a public hearing in conformance with applicable
 123-26  laws, notice of which shall be given to the permittee, the
 123-27  commission may revoke or suspend a permit for good cause on any of
  124-1  the following grounds:
  124-2              (1)  the permittee has failed or is failing to comply
  124-3  with the conditions of the permit;
  124-4              (2)  the permit is subject to cancellation or
  124-5  suspension under Section 10.154;
  124-6              (3)  the permit or operations under the permit have
  124-7  been abandoned;
  124-8              (4)  the permit is no longer needed by the permittee;
  124-9              (5)  the commission finds that a change in conditions
 124-10  requires elimination of the discharge;
 124-11              (6)  revocation or suspension is necessary in order to
 124-12  maintain the quality of water in the state consistent with the
 124-13  objectives of this chapter; or
 124-14              (7)  the permit was obtained by misrepresentation or
 124-15  failure to disclose fully all relevant facts.
 124-16        (d)  The notice required by Subsections (b) and (c) shall be
 124-17  sent to the permittee at his last known address as shown by the
 124-18  records of the commission.
 124-19        (e)  If the permittee requests or consents to the revocation
 124-20  or suspension of the permit, the executive director may revoke or
 124-21  suspend the permit.
 124-22        (f)  This section is effective on delegation of NPDES permit
 124-23  authority.  (Sec. 26.029, Water Code.)
 124-24        Sec. 10.016.  Permit; Effect on Recreational Water.  (a)  In
 124-25  considering the issuance of a permit to discharge effluent into any
 124-26  body of water having an established recreational standard, the
 124-27  commission shall consider any unpleasant odor quality of the
  125-1  effluent and the possible adverse effect that it might have on the
  125-2  receiving body of water, and the commission may consider the odor
  125-3  as one of the elements of the water quality of the effluent.
  125-4        (b)  In considering the issuance of a permit to discharge
  125-5  effluent comprised primarily of sewage or municipal waste into any
  125-6  body of water that crosses or abuts any park, playground, or
  125-7  schoolyard within one mile of the point of discharge, the
  125-8  commission shall consider any unpleasant qualities of the effluent,
  125-9  including unpleasant odor, and any possible adverse effects that
 125-10  the discharge of the effluent might have on the recreational value
 125-11  of the park, playground, or schoolyard.  (Sec. 26.030, Water Code.)
 125-12        Sec. 10.017.  Control of Certain Waste Discharges by Rule.
 125-13  Whenever the commission determines that the quality of water in an
 125-14  area is adversely affected or threatened by the combined effects of
 125-15  several relatively small-quantity discharges of wastes being made
 125-16  for which it is not practical to issue individual permits or that
 125-17  the general nature of a particular type of activity which produces
 125-18  a waste discharge is such that requiring individual permits is
 125-19  unnecessarily burdensome both to the waste discharger and the
 125-20  commission, the commission may by rule regulate and set the
 125-21  requirements and conditions for the discharges of waste.  (Sec.
 125-22  26.040, Water Code.)
 125-23        Sec. 10.018.  Temporary and Emergency Orders and
 125-24  Authorizations to Discharge Untreated or Partially Treated
 125-25  Wastewater.  (a)  The commission may issue temporary or emergency
 125-26  orders relating to the discharge of waste or pollutants when this
 125-27  is necessary to enable action to be taken more expeditiously than
  126-1  is otherwise provided by this chapter to effectuate the policy and
  126-2  purposes of this chapter.
  126-3        (b)  A person desiring to obtain a temporary or emergency
  126-4  order to discharge waste or pollutants, including untreated or
  126-5  partially treated wastewater, into or adjacent to water in this
  126-6  state shall submit a sworn application to the commission containing
  126-7  the following information and any other information the commission
  126-8  requires:
  126-9              (1)  a statement that the discharge is unavoidable to
 126-10  prevent loss of life, serious injury, severe property damage, or
 126-11  severe economic loss, or to make necessary and unforeseen repairs
 126-12  to a facility, that there are no feasible alternatives to the
 126-13  proposed discharge, and that the discharge will not cause
 126-14  significant hazard to human life and health, unreasonable damage to
 126-15  property of persons other than the applicant, or unreasonable
 126-16  economic loss to persons other than the applicant;
 126-17              (2)  a statement that the proposed discharge will not
 126-18  present a significant hazard to the uses that may be made of the
 126-19  receiving water after the discharge;
 126-20              (3)  an estimate of the dates on which the proposed
 126-21  discharge will begin and end;
 126-22              (4)  a statement of the volume and quality of the
 126-23  proposed discharge;
 126-24              (5)  an explanation of measures proposed to minimize
 126-25  the volume and duration of the discharge; and
 126-26              (6)  an explanation of measures proposed to maximize
 126-27  the waste treatment efficiency of units not taken out of service or
  127-1  facilities provided for interim use.
  127-2        (c)  The commission may issue emergency orders relating to
  127-3  the discharge of waste or pollutants without notice and hearing, or
  127-4  with such notice and hearing as the commission considers
  127-5  practicable under the circumstances, only if the commission finds
  127-6  the applicant's statement made under Subsection (b)(1) to be
  127-7  correct.
  127-8        (d)  If the commission issues an emergency order under this
  127-9  authority without a hearing, the order shall fix a time and place
 127-10  for a hearing to be held before the commission, which shall be held
 127-11  as soon after the emergency order is issued as is practicable.
 127-12        (e)  At the hearing, the commission shall affirm, modify, or
 127-13  set aside the emergency order.  Any hearing on an emergency order
 127-14  shall be conducted in accordance with the Administrative Procedure
 127-15  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
 127-16  Statutes), or the rules of the commission.  Any set of commission
 127-17  rules concerning a hearing on an emergency order must include
 127-18  provisions for presentation of evidence by the applicant under
 127-19  oath, presentation of rebuttal evidence, and cross-examination of
 127-20  witnesses.
 127-21        (f)  If emergency conditions exist which make it necessary to
 127-22  take action more expeditiously than is otherwise provided by this
 127-23  section, the executive director may authorize the discharge of
 127-24  untreated or partially treated wastewater from a permitted facility
 127-25  into or adjacent to water in the state if he determines that the
 127-26  discharge is unavoidable to prevent loss of life, serious injury,
 127-27  severe property damage, or severe economic loss, or to make
  128-1  necessary and unforeseen repairs to the facility, that there are no
  128-2  feasible alternatives to the discharge, and that the discharge will
  128-3  not cause significant hazard to human life and health, unreasonable
  128-4  damage to property of persons other than the applicant, or
  128-5  unreasonable economic loss to persons other than the applicant.  If
  128-6  the executive director issues an authorization to discharge under
  128-7  this authority, the commission shall hold a hearing as provided for
  128-8  in Subsection (d) as soon as practicable but in no event later than
  128-9  10 days after issuance of the authorization to affirm, modify or
 128-10  set aside the authorization.  The requirements of Subsection (b)
 128-11  shall be satisfied by the applicant on or before such hearing date.
 128-12        (g)  The requirements of Section 2.206(a) relating to the
 128-13  time for notice, newspaper notice, and method of giving a person
 128-14  notice do not apply to a hearing held on an emergency permit under
 128-15  this section, but such general notice of the hearing shall be given
 128-16  as the commission, under Subsections (c) and (e), considers
 128-17  practicable under the circumstances.
 128-18        (h)  Temporary orders other than emergency orders require a
 128-19  hearing before issuance of the order.  The commission shall give
 128-20  notice not less than 20 days before the date set for the hearing.
 128-21  (Sec. 26.0191, Water Code.)
 128-22        Sec. 10.019.  Consideration of Need and Regional Treatment
 128-23  Options.  In considering the issuance, amendment, or renewal of a
 128-24  permit to discharge waste, the commission may deny or alter the
 128-25  terms and conditions of the proposed permit, amendment, or renewal
 128-26  based on consideration of need, including the expected volume and
 128-27  quality of the influent and the availability of existing or
  129-1  proposed areawide or regional waste collection, treatment, and
  129-2  disposal systems not designated as such by commission order
  129-3  pursuant to provisions of this subchapter.  This section is
  129-4  expressly directed to the control and treatment of conventional
  129-5  pollutants normally found in domestic wastewater.  (Sec. 26.0282,
  129-6  Water Code.)
  129-7        Sec. 10.020.  Expiration of Permits Within Same Watershed.
  129-8  The commission shall, to the greatest extent practicable, require
  129-9  that all permits for the discharge of waste within a single
 129-10  watershed or within a region of a single watershed contain the same
 129-11  expiration date.  The commission shall adopt and implement
 129-12  procedures for the simultaneous review and renewal of all those
 129-13  permits within a watershed or region of a watershed.  The purpose
 129-14  of the review is to require comprehensive evaluation of the
 129-15  combined effects of permitted discharges on water quality within
 129-16  the watershed and to facilitate the receipt of information from the
 129-17  public and other entities affected by those discharges.  (Sec.
 129-18  26.0285, Water Code.)
 129-19        Sec. 10.021.  Disposal of Boat Sewage.  (a)  As used in this
 129-20  section, "boat" means any vessel or other watercraft, whether moved
 129-21  by oars, paddles, sails, or other power mechanism, inboard or
 129-22  outboard, or any other vessel or structure floating on water in
 129-23  this state, whether or not capable of self-locomotion, including
 129-24  but not limited to cabin cruisers, houseboats, barges, marinas, and
 129-25  similar floating objects.
 129-26        (b)  The commission shall issue rules concerning the disposal
 129-27  of sewage from boats located or operated on inland fresh waters in
  130-1  this state.  The rules of the commission shall include provisions
  130-2  for the establishment of standards for sewage disposal devices, the
  130-3  certification of sewage disposal devices, including on-shore
  130-4  pump-out facilities, and the visible and conspicuous display of
  130-5  evidence of certification of sewage disposal devices on each boat
  130-6  equipped with such device and on each on-shore pump-out device.
  130-7        (c)  The commission may delegate the administration and
  130-8  performance of the certification function to the executive director
  130-9  or to any other governmental entity.  The commission shall collect
 130-10  the following fees from applicants for certification:
 130-11  Boat Certificates (annual):
 130-12  Initial Certificates for Pump-out  $35
 130-13  Pump-out Renewal  $25
 130-14  Marine Sanitation Device (biennial):
 130-15  Boat over 26 Feet or Houseboat  $15
 130-16  Boat 26 Feet or less with Permanent Device  $15
 130-17  All certification fees shall be paid to the entity performing the
 130-18  certification function.  All fees collected by any state agency
 130-19  shall be deposited in a special fund for use by that agency in
 130-20  administering and performing the certification function and shall
 130-21  not be deposited in the General Revenue Fund of the state.
 130-22        (d)  Before issuing any rules under Subsection (b), the
 130-23  commission or any person authorized by it under Section 2.205 shall
 130-24  hold hearings on those rules in Austin and in five other locations
 130-25  in the state in order to provide the best opportunity for all
 130-26  citizens of the state to appear and present evidence to the
 130-27  commission.
  131-1        (e)  Notice of the hearing in Austin shall be published at
  131-2  least once in one or more newspapers having general circulation in
  131-3  the state.  Notice of each of the other hearings shall be published
  131-4  at least once in one or more newspapers having general circulation
  131-5  in the region in which each hearing is to be held.
  131-6        (f)  Copies of each rule issued by the commission under this
  131-7  section shall be filed in the offices of the commission in Austin,
  131-8  in the office of the Secretary of State in Austin, and the office
  131-9  of the county clerk in each county in the state.  The commission
 131-10  shall provide for publication of notice of each rule issued under
 131-11  this section in at least one newspaper of general circulation in
 131-12  each county of the state and shall furnish the county judge of each
 131-13  county of the state a copy of the rules.  (Sec. 26.044, Water
 131-14  Code.)
 131-15        Sec. 10.022.  Pump-Out Facilities for Boat Sewage.  (a)  In
 131-16  this section:
 131-17              (1)  "Boat" means the same as defined in Section
 131-18  10.021(a).
 131-19              (2)  "Boat pump-out station" means any private or
 131-20  public shoreside installation either independent of or in addition
 131-21  to an organized waste collection, treatment, and disposal system
 131-22  used to receive boat sewage.
 131-23              (3)  "Shoreside installation" means marinas and other
 131-24  installations servicing boats on fresh water of Texas.
 131-25              (4)  "Fresh water" means as geographically applied all
 131-26  of the surface lakes, streams, and reservoirs of the state,
 131-27  exclusive of the extent of ordinary tidal action on this water.
  132-1        (b)  After a public hearing and after making every reasonable
  132-2  effort to bring about the establishment of an adequate number of
  132-3  boat pump-out stations on fresh water, the commission may enter an
  132-4  order requiring the establishment of boat pump-out stations by a
  132-5  local government that has any jurisdiction over at least a portion
  132-6  of the fresh water or over land immediately adjacent to the fresh
  132-7  water.
  132-8        (c)  If a local government is authorized to issue
  132-9  authorization for the operation of shoreside installations, the
 132-10  local government may require the installation and operation of boat
 132-11  pump-out stations where necessary.  The local government shall
 132-12  require the installation and operation of boat pump-out stations if
 132-13  required by the commission.
 132-14        (d)  A local government responsible for establishing boat
 132-15  pump-out stations may issue bonds or may use general revenue funds
 132-16  from normal operations to finance the construction and operation of
 132-17  the pump-out facilities.  Pump-out stations established as a result
 132-18  of this section will be self-sustaining with respect to costs and
 132-19  revenues collected from users of said facilities, and local
 132-20  governments are authorized to levy reasonable, appropriate charges
 132-21  or fees to recover cost of installation and operation of the
 132-22  pump-out stations.  Nothing in this section is to be construed to
 132-23  require any local government to rebate to the State of Texas funds
 132-24  collected pursuant to this program.
 132-25        (e)  The hearings required by this section and other acts of
 132-26  the commission in carrying out the provisions of this section shall
 132-27  be handled as provided in the rules of the commission.  (Sec.
  133-1  26.045, Water Code.)
  133-2        Sec. 10.023.  Civil Penalty.  A person who violates any
  133-3  provision of this chapter or any rule, permit, or order of the
  133-4  commission is subject to a civil penalty of not less than $50 nor
  133-5  more than $10,000 for each act of violation and for each day of
  133-6  violation to be recovered as provided in this subchapter.  This
  133-7  section is effective until delegation of NPDES permit authority.
  133-8  (Sec. 26.122, Water Code.)
  133-9        Sec. 10.0231.  Civil Penalty.  (a)  A person who violates any
 133-10  provision of this chapter, other than Section 10.0111(d) or (e), or
 133-11  who violates any rule, permit, or order of the commission is
 133-12  subject to a civil penalty of not less than $50 nor more than
 133-13  $10,000 for each act of violation and for each day of violation to
 133-14  be recovered as provided in this subchapter.
 133-15        (b)  A person who violates Section 10.0111(d) or (e) is
 133-16  subject to a civil penalty of not more than $10,000 for each act of
 133-17  violation and for each day of violation, to be recovered as
 133-18  provided in this subchapter; provided, however, that in suits
 133-19  instituted pursuant to this subsection, the civil penalty, if any,
 133-20  assessed against the person who committed or who is committing the
 133-21  violation shall be no more than $10,000 for each act of violation
 133-22  and for each day of violation where the violation is of a
 133-23  limitation or condition included in a permit issued by the
 133-24  commission prior to delegation by the Administrator of the United
 133-25  States Environmental Protection Agency of NPDES permit authority
 133-26  under Section 402(b) of the Federal Water Pollution Control Act, or
 133-27  of any limitation or condition included in an identified state
  134-1  supplement to an NPDES permit issued after NPDES permit delegation
  134-2  by the Administrator of the United States Environmental Protection
  134-3  Agency.  This section is effective on delegation of NPDES permit
  134-4  authority.  (Sec. 26.122, Water Code.)
  134-5        Sec. 10.024.  Administrative Penalty.  (a)  If a person
  134-6  violates this chapter or a rule or order adopted or a permit issued
  134-7  under this chapter and no local government has instituted a lawsuit
  134-8  under this chapter and is diligently prosecuting that lawsuit
  134-9  against the same person for the same violation under Section
 134-10  10.026, the commission may assess a civil penalty against that
 134-11  person as provided by this section.
 134-12        (b)  The penalty may be in an amount not to exceed $10,000 a
 134-13  day for a person who violates this chapter or a rule, order, or
 134-14  permit.  Each day a violation continues may be considered a
 134-15  separate violation for purposes of penalty assessment.
 134-16        (c)  In determining the amount of the penalty, the commission
 134-17  shall consider:
 134-18              (1)  the nature, circumstances, extent, duration, and
 134-19  gravity of the prohibited acts with special emphasis on the hazard
 134-20  or potential hazard created to the health or safety of the public;
 134-21              (2)  the impact of the violation on a receiving stream
 134-22  or underground water reservoir, on the property owners along a
 134-23  receiving stream or underground water reservoir, and on water users
 134-24  of a receiving stream or underground water reservoir;
 134-25              (3)  with respect to the alleged violator:
 134-26                    (A)  the history and extent of previous
 134-27  violations;
  135-1                    (B)  the degree of culpability, including whether
  135-2  the violation was attributable to mechanical or electrical failures
  135-3  and whether the violation could have been reasonably anticipated
  135-4  and avoided;
  135-5                    (C)  the demonstrated good faith, including
  135-6  actions taken by the alleged violator to rectify the cause of the
  135-7  violation;
  135-8                    (D)  any economic benefit gained through the
  135-9  violation; and
 135-10                    (E)  the amount necessary to deter future
 135-11  violations; and
 135-12              (4)  any other matters that justice may require.
 135-13        (d)  If, after examination of a possible violation and the
 135-14  facts surrounding that possible violation, the executive director
 135-15  concludes that a violation has occurred, the executive director may
 135-16  issue a preliminary report stating the facts on which he based that
 135-17  conclusion, recommending that a civil penalty under this section be
 135-18  imposed on the person charged, and recommending the amount of that
 135-19  proposed penalty.  The executive director shall base the
 135-20  recommended amount of the proposed penalty on the factors provided
 135-21  by Subsection (c), and the executive director shall analyze each
 135-22  factor for the benefit of the commission.
 135-23        (e)  Not later than the 10th day after the date on which the
 135-24  report is issued, the executive director shall give written notice
 135-25  of the report to the person charged with the violation.  The notice
 135-26  shall include a brief summary of the charges, a statement of the
 135-27  amount of the penalty recommended, and a statement of the right of
  136-1  the person charged to a hearing on the occurrence of the violation,
  136-2  or the amount of the penalty, or both the occurrence of the
  136-3  violation and the amount of the penalty.
  136-4        (f)  Not later than the 20th day after the date on which
  136-5  notice is received, the person charged either may give to the
  136-6  commission written consent to the executive director's report,
  136-7  including the recommended penalty, or may make a written request
  136-8  for a hearing.
  136-9        (g)  If the person charged with the violation consents to the
 136-10  penalty recommended by the executive director or fails to timely
 136-11  respond to the notice, the commission by order shall either assess
 136-12  that penalty or order a hearing to be held on the findings and
 136-13  recommendations in the executive director's report.   If the
 136-14  commission assesses the penalty recommended by the report, the
 136-15  commission shall give written notice to the person charged of its
 136-16  decision.
 136-17        (h)  If the person charged requests, or the commission
 136-18  orders, a hearing, the commission shall call a hearing and give
 136-19  notice of the hearing.  As a result of the hearing, the commission
 136-20  by order either may find that a violation has occurred and may
 136-21  assess a civil penalty, may find that a violation has occurred but
 136-22  that no penalty should be assessed, or may find that no violation
 136-23  has occurred.  All proceedings under this subsection are subject to
 136-24  the Administrative Procedure and Texas Register Act (Article
 136-25  6252-13a, Vernon's Texas Civil Statutes).  In making any penalty
 136-26  decision, the commission shall analyze each of the factors provided
 136-27  by Subsection (c).
  137-1        (i)  The commission shall give notice of its decision to the
  137-2  person charged, and if the commission finds that a violation has
  137-3  occurred and has assessed a civil penalty, the commission shall
  137-4  give written notice to the person charged of its findings, of the
  137-5  amount of the penalty, and of his right to judicial review of the
  137-6  commission's order.  If the commission is required to give notice
  137-7  of a civil penalty under this subsection or Subsection (g), the
  137-8  commission shall file notice of its decision in the Texas Register
  137-9  not later than the 10th day after the date on which the decision is
 137-10  adopted.
 137-11        (j)  Within the 30-day period immediately following the day
 137-12  on which the commission's order is final, as provided by Section
 137-13  16(c), Administrative Procedure and Texas Register Act (Article
 137-14  6252-13a, Vernon's Texas Civil Statutes), the person charged with
 137-15  the penalty shall:
 137-16              (1)  pay the penalty in full; or
 137-17              (2)  if the person seeks judicial review of either the
 137-18  fact of the violation or the amount of the penalty or of both the
 137-19  fact of the violation and the amount of the penalty:
 137-20                    (A)  forward the amount of the penalty to the
 137-21  commission for placement in an escrow account; or
 137-22                    (B)  instead of payment into an escrow account,
 137-23  post with the commission a supersedeas bond in a form approved by
 137-24  the commission for the amount of the penalty to be effective until
 137-25  all judicial review of the order or decision is final.
 137-26        (k)  Failure to forward the money to or to post the bond with
 137-27  the commission within the time provided by Subsection (j) results
  138-1  in a waiver of all legal rights to judicial review.  Also, if the
  138-2  person charged fails to forward the money or post the bond as
  138-3  provided by Subsection (j), the commission or the executive
  138-4  director may forward the matter to the attorney general for
  138-5  enforcement.
  138-6        (l)  Judicial review of the order or decision of the
  138-7  commission assessing the penalty shall be under the substantial
  138-8  evidence rule and shall be instituted by filing a petition with a
  138-9  district court in Travis County, as provided by Section 19,
 138-10  Administrative Procedure and Texas Register Act (Article 6252-13a,
 138-11  Vernon's Texas Civil Statutes).
 138-12        (m)  A penalty collected under this section shall be
 138-13  deposited in the State Treasury to the credit of the General
 138-14  Revenue Fund.
 138-15        (n)  Notwithstanding any other provision to the contrary, the
 138-16  commission may compromise, modify, or remit, with or without
 138-17  condition, any civil penalty imposed under this section.
 138-18        (o)  Payment of an administrative penalty under this section
 138-19  shall be full and complete satisfaction of the violation for which
 138-20  the administrative penalty is assessed and shall preclude any other
 138-21  civil or criminal penalty for the same violation.  (Sec. 26.136,
 138-22  Water Code.)
 138-23        Sec. 10.025.  Enforcement by Commission.  (a)  The commission
 138-24  shall diligently and uniformly enforce each of its rules, permits,
 138-25  and orders.
 138-26        (b)  Whenever it appears that a person has violated or is
 138-27  violating or is threatening to violate any provision of this
  139-1  chapter or any rule, permit, or order of the commission, then the
  139-2  executive director may have a civil suit instituted in a district
  139-3  court for injunctive relief to restrain the person from continuing
  139-4  the violation or threat of violation, or for the assessment and
  139-5  recovery of a civil penalty of not less than $50 nor more than
  139-6  $10,000 for each act of violation and for each day of violation, or
  139-7  for both injunctive relief and civil penalty.
  139-8        (c)  On application for injunctive relief and a finding that
  139-9  a person is violating or threatening to violate any provision of
 139-10  this chapter or any rule, permit, or order of the commission, the
 139-11  district court shall grant the injunctive relief the facts may
 139-12  warrant.
 139-13        (d)  At the request of the executive director, the attorney
 139-14  general shall institute and conduct a suit in the name of the State
 139-15  of Texas for injunctive relief or to recover the civil penalty or
 139-16  for both injunctive relief and penalty as authorized in Subsection
 139-17  (b).
 139-18        (e)  The commission, through the executive director, shall
 139-19  refer matters to the attorney general's office for enforcement
 139-20  through civil suit if a person:
 139-21              (1)  is alleged to be making or to have made an
 139-22  unauthorized discharge of waste into or adjacent to the water in
 139-23  the state at a new point of discharge without a permit in violation
 139-24  of state law; or
 139-25              (2)  has been the subject of two or more finally issued
 139-26  administrative penalty orders under this chapter for violations
 139-27  occurring at the same wastewater management system or other point
  140-1  of discharge within two years before the first alleged violation
  140-2  currently under investigation at that plant site.
  140-3        (f)  Violations that were reported by the violator or
  140-4  violations consisting of errors in recordkeeping or in
  140-5  self-reporting submissions may not be considered in determining
  140-6  whether Subsection (e) applies.
  140-7        (g)  Even though the criteria of Subsection (e) are met, the
  140-8  attorney general's office and the executive director may agree to
  140-9  resolve any of the alleged violations, before or after referral, by
 140-10  administrative order issued by the appropriate regulatory agency
 140-11  after approval by the attorney general.
 140-12        (h)  The commission shall consult with the attorney general's
 140-13  office for assistance in determining whether referral to the
 140-14  attorney general for enforcement is mandatory under this section or
 140-15  whether referral is appropriate for the disposition of enforcement
 140-16  matters under this chapter.  If referral is determined to be
 140-17  mandatory or appropriate, the commission shall consult with the
 140-18  attorney general's office for assistance in determining whether
 140-19  criminal or civil enforcement action should be taken.  The
 140-20  commission shall use all available enforcement options.
 140-21        (i)  This section is effective until delegation of NPDES
 140-22  permit authority.  (Sec. 26.123, Water Code.)
 140-23        Sec. 10.0251.  Enforcement by Commission.  (a)  The
 140-24  commission shall diligently and uniformly enforce each of its
 140-25  rules, permits, or orders.
 140-26        (b)  Whenever it appears that a person has violated or is
 140-27  violating or is threatening to violate any provision of this
  141-1  chapter, other than Section 10.0111(d) or (e), or has violated or
  141-2  is violating, or is threatening to violate, any rule, permit, or
  141-3  order of the commission, then the executive director may have a
  141-4  civil suit instituted in a district court for injunctive relief to
  141-5  restrain the person from continuing the violation or threat of
  141-6  violation, or for the assessment and recovery of a civil penalty of
  141-7  not less than $50 nor more than $10,000 for each act of violation
  141-8  and for each day of violation, or for both injunctive relief and
  141-9  civil penalty.
 141-10        (c)  Whenever it appears that a person has violated or is
 141-11  violating, or is threatening to violate, Section 10.0111(d) or (e),
 141-12  then the executive director may have a civil suit instituted in a
 141-13  district court for injunctive relief to restrain the person from
 141-14  continuing the violation or threat of violation, or for the
 141-15  assessment and recovery of a civil penalty of not more than $10,000
 141-16  for each act of violation and for each day of violation, or for
 141-17  both injunctive relief and civil penalty; provided, however, that
 141-18  in suits instituted pursuant to this subsection, the civil penalty,
 141-19  if any, assessed against the person who committed or who is
 141-20  committing the violation shall be no more than $10,000 for each act
 141-21  of violation and for each day of violation where the violation is
 141-22  of a limitation or condition included in a permit issued by the
 141-23  commission prior to delegation by the Administrator of the United
 141-24  States Environmental Protection Agency of NPDES permit authority
 141-25  under Section 402(b) of the Federal Water Pollution Control Act, or
 141-26  of any limitation or condition included in an identified state
 141-27  supplement to an NPDES permit issued after NPDES permit delegation
  142-1  by the Administrator of the United States Environmental Protection
  142-2  Agency.
  142-3        (d)  On application for injunctive relief and a finding that
  142-4  a person is violating or threatening to violate any provision of
  142-5  this chapter or any rule, permit, or order of the commission, the
  142-6  district court shall grant the injunctive relief the facts may
  142-7  warrant.
  142-8        (e)  At the request of the executive director, the attorney
  142-9  general shall institute and conduct a suit in the name of the State
 142-10  of Texas for injunctive relief or to recover the civil penalty or
 142-11  for both injunctive relief and penalty as authorized in Subsection
 142-12  (b) or (c).
 142-13        (f)  The commission, through the executive director, shall
 142-14  refer matters to the attorney general's office for enforcement
 142-15  through civil suit if a person:
 142-16              (1)  is alleged to be making or to have made an
 142-17  unauthorized discharge of waste into or adjacent to the waters in
 142-18  the state at a new point of discharge without a permit in violation
 142-19  of state law; or
 142-20              (2)  has been the subject of two or more finally issued
 142-21  administrative penalty orders under this chapter for violations
 142-22  occurring at the same wastewater management system or other point
 142-23  of discharge within two years before the first alleged violation
 142-24  currently under investigation at that plant site.
 142-25        (g)  Violations that were reported by the violator or
 142-26  violations consisting of errors in recordkeeping or in
 142-27  self-reporting submissions may not be considered in determining
  143-1  whether Subsection (f) applies.
  143-2        (h)  Even though the criteria of Subsection (f) are met, the
  143-3  attorney general's office and the executive director may agree to
  143-4  resolve any of the alleged violations, before or after referral, by
  143-5  administrative order issued by the appropriate regulatory agency
  143-6  after approval by the attorney general.
  143-7        (i)  The commission shall consult with the attorney general's
  143-8  office for assistance in determining whether referral to the
  143-9  attorney general for enforcement is mandatory under this section or
 143-10  whether referral is appropriate for the disposition of enforcement
 143-11  matters under this chapter.  If referral is determined to be
 143-12  mandatory or appropriate, the commission shall consult with the
 143-13  attorney general's office for assistance in determining whether
 143-14  criminal or civil enforcement action should be taken.  The
 143-15  commission shall use all available enforcement options.
 143-16        (j)  This section is effective on delegation of NPDES permit
 143-17  authority.  (Sec. 26.123, Water Code.)
 143-18        Sec. 10.026.  Enforcement by Others.  (a)  Whenever it
 143-19  appears that a violation or threat of violation of any provision of
 143-20  Section 10.011 or 10.0111 or any rule, permit, or order of the
 143-21  commission has occurred or is occurring within the jurisdiction of
 143-22  a local government, exclusive of its extraterritorial jurisdiction,
 143-23  the local government, in the same manner as the commission, may
 143-24  have a suit instituted in a district court through its own attorney
 143-25  for the injunctive relief or civil penalties or both, as authorized
 143-26  in Section 10.025 or 10.0251, against the person who committed or
 143-27  is committing or threatening to commit the violation.  This power
  144-1  may not be exercised by a local government unless its governing
  144-2  body adopts a resolution authorizing the exercise of the power.  In
  144-3  a suit brought by a local government under this section, the
  144-4  commission is a necessary and indispensable party.
  144-5        (b)  Whenever it appears that a violation or a threat of
  144-6  violation of any provision of Section 10.011 or 10.0111 or any
  144-7  rule, permit, or order of the commission has occurred or is
  144-8  occurring that affects aquatic life or wildlife, the Parks and
  144-9  Wildlife Department, in the same manner as the commission in
 144-10  Section 10.025 or 10.0251, may have a suit instituted in a district
 144-11  court for injunctive relief or civil penalties or both, as
 144-12  authorized in Section 10.025 or 10.0251, against the person who
 144-13  committed or is committing or is threatening to commit the
 144-14  violation.  The suit shall be brought in the name of the State of
 144-15  Texas by the attorney general or by the county attorney or the
 144-16  district attorney, as appropriate, of the county in which venue for
 144-17  the suit is proper.  The suit may be brought in the county where
 144-18  the defendant resides or in the county where the violation or
 144-19  threat of violation occurs.  In a suit brought under this section
 144-20  for a violation that is a proximate cause of injury to aquatic life
 144-21  or wildlife normally taken for commercial or sport purposes or to
 144-22  species on which this life is directly dependent for food, the
 144-23  Parks and Wildlife Department is entitled to recover damages for
 144-24  the injury.  In determining damages, the court may consider the
 144-25  valuation of the injured resources established in rules adopted by
 144-26  the Parks and Wildlife Commission under Subchapter D, Chapter 12,
 144-27  Parks and Wildlife Code, or the replacement cost of the injured
  145-1  resources.  Any recovery of damages for injury to aquatic life or
  145-2  wildlife shall be deposited to the credit of the game, fish, and
  145-3  water safety fund under Section 11.032, Parks and Wildlife Code,
  145-4  and the Parks and Wildlife Department shall use funds recovered
  145-5  under this section to replenish or enhance the injured resources in
  145-6  the geographic area in which the injury occurs.  The actual cost of
  145-7  investigation, reasonable attorney's fees, and reasonable expert
  145-8  witness fees may also be recovered, and those recovered amounts
  145-9  shall be credited to the same operating funds from which
 145-10  expenditures occurred.  This section does not limit recovery for
 145-11  damages available under other law.  (Sec. 26.124, Water Code.)
 145-12        Sec. 10.027.  Venue and Procedure.  (a)  A suit for
 145-13  injunctive relief or recovery of a civil penalty or for both
 145-14  injunctive relief and penalty may be brought either in the county
 145-15  in which the defendant resides or in the county in which the
 145-16  violation or threat of violation occurs.
 145-17        (b)  In any suit brought to enjoin a violation or threat of
 145-18  violation of this chapter or any rule, permit, or order of the
 145-19  commission, the court may grant the commission, the Parks and
 145-20  Wildlife Department, or the local government, without bond or other
 145-21  undertaking, any prohibitory or mandatory injunction the facts may
 145-22  warrant, including temporary restraining orders, after notice and
 145-23  hearing temporary injunctions, and permanent injunctions.
 145-24        (c)  A suit brought under this chapter shall be given
 145-25  precedence over all other cases of a different nature on the docket
 145-26  of the appellate court.
 145-27        (d)  Either party may appeal from a final judgment of the
  146-1  court as in other civil cases.  (Sec. 26.125, Water Code.)
  146-2        Sec. 10.028.  Disposition of Civil Penalties.  (a)  All civil
  146-3  penalties recovered in suits instituted by the State of Texas under
  146-4  this chapter through the commission or the Parks and Wildlife
  146-5  Department shall be paid to the General Revenue Fund of the State
  146-6  of Texas.
  146-7        (b)  All civil penalties recovered in suits instituted by a
  146-8  local government or governments under this chapter shall be equally
  146-9  divided between the State of Texas and the local government or
 146-10  governments first instituting the suit, with 50 percent of the
 146-11  recovery to be paid to the General Revenue Fund of the State of
 146-12  Texas and the other 50 percent paid equally to the local government
 146-13  or governments first instituting the suit.  (Sec. 26.126, Water
 146-14  Code.)
 146-15        Sec. 10.029.  Commission as Principal Authority.  The
 146-16  commission is the principal authority in the state on matters
 146-17  relating to the quality of the water in the state.  The executive
 146-18  director has the responsibility for establishing a water quality
 146-19  sampling and monitoring program for the state.  All other state
 146-20  agencies engaged in water quality or water pollution control
 146-21  activities shall coordinate those activities with the commission.
 146-22  (Sec. 26.127, Water Code.)
 146-23        Sec. 10.030.  Duty of Other State Agencies.  (a)  The Parks
 146-24  and Wildlife Department and its authorized employees shall enforce
 146-25  the provisions of this chapter to the extent any violation affects
 146-26  aquatic life and wildlife as provided in Section 10.026(b).
 146-27        (b)  The Texas Department of Health shall continue to apply
  147-1  the authority vested in it by Chapter 341, Health and Safety Code,
  147-2  in the abatement of nuisances resulting from pollution not
  147-3  otherwise covered by this chapter.  The Texas Department of Health
  147-4  shall investigate and make recommendations to the commission
  147-5  concerning the health aspects of matters related to the quality of
  147-6  the water in the state.
  147-7        (c)  The Railroad Commission of Texas is solely responsible
  147-8  for the control and disposition of waste and the abatement and
  147-9  prevention of pollution of surface and subsurface water resulting
 147-10  from:
 147-11              (1)  activities associated with the exploration,
 147-12  development, and production of oil or gas or geothermal resources,
 147-13  including:
 147-14                    (A)  activities associated with the drilling of
 147-15  injection water source wells which penetrate the base of useable
 147-16  quality water;
 147-17                    (B)  activities associated with the drilling of
 147-18  cathodic protection holes associated with the cathodic protection
 147-19  of wells and pipelines subject to the jurisdiction of the Railroad
 147-20  Commission of Texas;
 147-21                    (C)  activities associated with gasoline plants,
 147-22  natural gas or natural gas liquids processing plants, pressure
 147-23  maintenance plants, or repressurizing plants;
 147-24                    (D)  activities associated with any underground
 147-25  natural gas storage facility, provided the terms "natural gas" and
 147-26  "storage facility" shall have the meanings set out in Section
 147-27  91.173, Natural Resources Code;
  148-1                    (E)  activities associated with any underground
  148-2  hydrocarbon storage facility, provided the terms "hydrocarbons" and
  148-3  "underground hydrocarbon storage facility" shall have the meanings
  148-4  set out in Section 91.201, Natural Resources Code; and
  148-5                    (F)  activities associated with the storage,
  148-6  handling, reclamation, gathering, transportation, or distribution
  148-7  of oil or gas prior to the refining of such oil or prior to the use
  148-8  of such gas in any manufacturing process or as a residential or
  148-9  industrial fuel;
 148-10              (2)  except to the extent the activities are regulated
 148-11  by the Texas Department of Health under Chapter 401, Health and
 148-12  Safety Code, activities associated with uranium exploration
 148-13  consisting of the disturbance of the surface or subsurface for the
 148-14  purpose of or related to determining the location, quantity, or
 148-15  quality of uranium ore; and
 148-16              (3)  any other activities regulated by the Railroad
 148-17  Commission of Texas pursuant to Section 91.101, Natural Resources
 148-18  Code.
 148-19        (d)  The Railroad Commission of Texas may issue permits for
 148-20  the discharge of waste resulting from these activities, and the
 148-21  discharge of waste into water in this state resulting from these
 148-22  activities shall meet the water quality standards established by
 148-23  the commission.
 148-24        (e)  The term "waste" as used in this section does not
 148-25  include any waste that results from activities associated with
 148-26  gasoline plants, natural gas or natural gas liquids processing
 148-27  plants, pressure maintenance plants, or repressurizing plants if
  149-1  that waste is a hazardous waste as defined by the administrator of
  149-2  the United States Environmental Protection Agency pursuant to the
  149-3  federal Solid Waste Disposal Act, as amended by the Resource
  149-4  Conservation and Recovery Act, 42 U.S.C. 6901 et seq., as amended.
  149-5        (f)  Subsections (c), (d), and (e) are effective until
  149-6  delegation of RCRA authority to Railroad Commission of Texas.
  149-7        (g)  The Railroad Commission of Texas is solely responsible
  149-8  for the control and disposition of waste and the abatement and
  149-9  prevention of pollution of surface and subsurface water resulting
 149-10  from:
 149-11              (1)  activities associated with the exploration,
 149-12  development, and production of oil or gas or geothermal resources,
 149-13  including:
 149-14                    (A)  activities associated with the drilling of
 149-15  injection water source wells which penetrate the base of useable
 149-16  quality water;
 149-17                    (B)  activities associated with the drilling of
 149-18  cathodic protection holes associated with the cathodic protection
 149-19  of wells and pipelines subject to the jurisdiction of the Railroad
 149-20  Commission of Texas;
 149-21                    (C)  activities associated with gasoline plants,
 149-22  natural gas or natural gas liquids processing plants, pressure
 149-23  maintenance plants, or repressurizing plants;
 149-24                    (D)  activities associated with any underground
 149-25  natural gas storage facility, provided the terms "natural gas" and
 149-26  "storage facility" shall have the meanings set out in Section
 149-27  91.173, Natural Resources Code;
  150-1                    (E)  activities associated with any underground
  150-2  hydrocarbon storage facility, provided the terms "hydrocarbons" and
  150-3  "underground hydrocarbon storage facility" shall have the meanings
  150-4  set out in Section 91.201, Natural Resources Code; and
  150-5                    (F)  activities associated with the storage,
  150-6  handling, reclamation, gathering, transportation, or distribution
  150-7  of oil or gas prior to the refining of such oil or prior to the use
  150-8  of such gas in any manufacturing process or as a residential or
  150-9  industrial fuel;
 150-10              (2)  except to the extent the activities are regulated
 150-11  by the Texas Department of Health under Chapter 401, Health and
 150-12  Safety Code, activities associated with uranium exploration
 150-13  consisting of the disturbance of the surface or subsurface for the
 150-14  purpose of or related to determining the location, quantity, or
 150-15  quality of uranium ore; and
 150-16              (3)  any other activities regulated by the Railroad
 150-17  Commission of Texas pursuant to Section 91.101, Natural Resources
 150-18  Code.
 150-19        (h)  The Railroad Commission of Texas may issue permits for
 150-20  the discharge of waste resulting from these activities, and the
 150-21  discharge of waste into water in this state resulting from these
 150-22  activities shall meet the water quality standards established by
 150-23  the commission.
 150-24        (i)  Subsections (g) and (h) are effective on delegation of
 150-25  RCRA authority to Railroad Commission of Texas.  (Sec. 26.129,
 150-26  26.130, 26.131, Water Code.)
 150-27        Sec. 10.031.  Act of God, War, Etc.  Any pollution, or any
  151-1  discharge of waste without a permit or in violation of a permit,
  151-2  caused by an act of God, war, strike, riot, or other catastrophe is
  151-3  not a violation of this chapter.  (Sec. 26.132, Water Code.)
  151-4        Sec. 10.032.  Effect on Private Remedies.  Nothing in this
  151-5  chapter affects the right of any private corporation or individual
  151-6  to pursue any available common-law remedy to abate a condition of
  151-7  pollution or other nuisance or to recover damages.  (Sec. 26.133,
  151-8  Water Code.)
  151-9        Sec. 10.033.  Effect on Other Laws.  (a)  Nothing in this
 151-10  chapter affects the powers and duties of the commission and the
 151-11  Railroad Commission of Texas with respect to injection wells as
 151-12  provided in Chapter 13.
 151-13        (b)  The commission and the water well drillers advisory
 151-14  council shall continue to exercise the authority granted to them
 151-15  under other law.  (Sec. 26.135, Water Code.)
 151-16            (Sections 10.034-10.050 reserved for expansion)
 151-17               SUBCHAPTER C.  WATER QUALITY STANDARDS.
 151-18        Sec. 10.051.  State Water Quality Plan.  The executive
 151-19  director shall prepare and develop a general, comprehensive plan
 151-20  for the control of water quality in the state which shall be used
 151-21  as a flexible guide by the commission when approved by the
 151-22  commission.  (Sec.  26.012, Water Code.)
 151-23        Sec. 10.052.  Water Quality Standards.  (a)  The commission
 151-24  by rule shall set water quality standards for the water in the
 151-25  state and may amend the standards from time to time.  The
 151-26  commission has the sole and exclusive authority to set water
 151-27  quality standards for all water in the state.  The commission shall
  152-1  consider the existence and effects of nonpoint source pollution,
  152-2  toxic materials, and nutrient loading in developing water quality
  152-3  standards and related waste load models for water quality.
  152-4        (b)  The commission shall publish its water quality standards
  152-5  and amendments and shall make copies available to the public on
  152-6  written request.  (Secs. 26.023, 26.026, Water Code.)
  152-7        Sec. 10.053.  Pretreatment Effluent Standards.  (a)  The
  152-8  commission is authorized to administer a program for the regulation
  152-9  of pretreatment of pollutants which are introduced into publicly
 152-10  owned treatment works.
 152-11        (b)  The commission is authorized to adopt regulations for
 152-12  the administration of this program consistent with 33 U.S.C.
 152-13  Section 1317 and rules adopted thereunder by the Environmental
 152-14  Protection Agency.
 152-15        (c)  The commission shall impose as conditions in permits for
 152-16  the discharge of pollutants from publicly owned treatment works
 152-17  requirements for information to be provided by the permittee
 152-18  concerning new introductions of pollutants or substantial changes
 152-19  in the volume or character of pollutants being introduced into such
 152-20  treatment works.
 152-21        (d)  The commission is authorized to impose as conditions in
 152-22  permits for the discharge of pollutants from publicly owned
 152-23  treatment works appropriate measures to establish and insure
 152-24  compliance by industrial users with any system of user charges
 152-25  required under state or federal law or any regulations or
 152-26  guidelines promulgated thereunder.
 152-27        (e)  The commission is authorized to apply, and to enforce
  153-1  pursuant to this subchapter, against industrial users of publicly
  153-2  owned treatment works, toxic effluent standards and pretreatment
  153-3  standards for the introduction into such treatment works of
  153-4  pollutants which interfere with, pass through, or otherwise are
  153-5  incompatible with such treatment works.
  153-6        (f)  This section is effective on delegation of NPDES permit
  153-7  authority.  (Secs. 26.1211, 26.047, Water Code.)
  153-8        Sec. 10.054.  Graywater Standards.  (a)  The commission by
  153-9  rule shall adopt and implement minimum standards for the use of
 153-10  graywater in irrigation and for other agricultural, domestic,
 153-11  commercial, and industrial purposes that will assure that the use
 153-12  of graywater will not be a nuisance or damage the quality of
 153-13  surface water and groundwater in this state.
 153-14        (b)  The commission by rule shall adopt and implement minimum
 153-15  standards for the use of graywater in irrigation and for other
 153-16  agricultural, domestic, commercial, and industrial purposes to
 153-17  assure that the use of graywater is not a nuisance and does not
 153-18  damage the quality of surface water and groundwater in this state.
 153-19        (c)  In this section, "graywater" means wastewater from
 153-20  clothes-washing machines, showers, bathtubs, hand-washing
 153-21  lavatories, and sinks that are not used for food preparation or
 153-22  disposal of chemical and biological ingredients.  (Sec. 26.0311,
 153-23  Water Code; Sec. 341.039, Health and Safety Code.)
 153-24        Sec. 10.055.  Hearings on Standards; Notice.  (a)  Before
 153-25  setting or amending water quality standards, the commission shall:
 153-26              (1)  hold public hearings at which any person may
 153-27  appear and present evidence under oath, pertinent for consideration
  154-1  by the commission; and
  154-2              (2)  consult with the executive administrator to insure
  154-3  that the proposed standards are not inconsistent with the
  154-4  objectives of the state water plan.
  154-5        (b)  The commission shall provide notice of a hearing under
  154-6  Subsection (a) by publishing the notice in the Texas Register.
  154-7        (c)  In addition to the requirements of Subsection (a), the
  154-8  commission shall also provide notice to each of the following that
  154-9  the commission believes may be affected:
 154-10              (1)  each local government whose boundary is contiguous
 154-11  to the water in question or whose boundaries contain all or part of
 154-12  the water, or through whose boundaries the water flows; and
 154-13              (2)  the holders of permits from the commission to
 154-14  discharge waste into or adjacent to the water in question.  (Secs.
 154-15  26.024, 26.025, Water Code.)
 154-16        Sec. 10.056.  Water Quality Management Plans.  (a)  The
 154-17  executive director shall develop and prepare, and from time to time
 154-18  revise, comprehensive water quality management plans for the
 154-19  different areas of the state, as designated by the commission.
 154-20        (b)  The executive director may contract with local
 154-21  governments, regional planning commissions, planning agencies,
 154-22  other state agencies, colleges and universities in the state, and
 154-23  any other qualified and competent person to assist the commission
 154-24  in developing and preparing, and from time to time revising, water
 154-25  quality management plans for areas designated by the commission.
 154-26        (c)  With funds provided for the purpose by legislative
 154-27  appropriation, the commission may make grants or interest-free
  155-1  loans to, or contract with, local governments, regional planning
  155-2  commissions, and planning agencies to pay administrative and other
  155-3  expenses of such entities for developing and preparing, and from
  155-4  time to time revising, water quality management plans for areas
  155-5  designated by the commission.  The period of time for which funding
  155-6  under this provision may be provided for developing and preparing
  155-7  or for revising a plan may not exceed three consecutive years in
  155-8  each instance.  Any loan made pursuant to this subsection shall be
  155-9  repaid when the construction of any project included in the plan is
 155-10  begun.
 155-11        (d)  Any person developing or revising a plan shall, during
 155-12  the course of the work, consult with the commission and with local
 155-13  governments and other federal, state, and local governmental
 155-14  agencies which in the judgment of the commission may be affected by
 155-15  or have a legitimate interest in the plan.
 155-16        (e)  Insofar as may be practical, the water quality
 155-17  management plans shall be reasonably compatible with the other
 155-18  governmental plans for the area, such as area or regional
 155-19  transportation, public utility, zoning, public education,
 155-20  recreation, housing, and other related development plans.  (Sec.
 155-21  26.036, Water Code.)
 155-22        Sec. 10.057.  Approval of Plans.  (a)  After a water quality
 155-23  management plan has been prepared or significantly revised as
 155-24  authorized in Section 10.056, it shall be submitted to the
 155-25  commission and to such local governments and other federal, state,
 155-26  and local governmental agencies as in the judgment of the
 155-27  commission may be affected by or have a legitimate interest in the
  156-1  plan.
  156-2        (b)  After a reasonable period of time as determined by the
  156-3  commission for the persons to whom the plan was submitted to review
  156-4  and consult on the plan, a public hearing shall be held on whether
  156-5  the plan should be approved or whether the plan should be modified
  156-6  in any way.  Notice of the hearing shall be given to the person or
  156-7  persons who prepared or revised the plan and to the persons to whom
  156-8  the plan was submitted for review.
  156-9        (c)  After the public hearing if the commission finds that
 156-10  the plan complies with the policy and purpose of this chapter and
 156-11  the rules and policies of the commission, it shall approve the
 156-12  plan.  If the commission does not so find, it may disapprove the
 156-13  plan, modify the plan as necessary so that it will comply, or
 156-14  return it for further development and later resubmission to the
 156-15  commission, in accordance with the procedure in Section 10.056.
 156-16        (d)  When a water quality management plan has been approved
 156-17  as provided in this section, the plan may be furnished to the
 156-18  Federal Environmental Protection Agency, the Federal Water Quality
 156-19  Administration, or any other federal official or agency in
 156-20  fulfillment of any federal water quality management planning
 156-21  requirement specified for any purpose by the federal government.
 156-22        (e)  The board and the commission may use an approved water
 156-23  quality management plan or a plan in progress but not completed or
 156-24  approved in reviewing and making determinations on applications for
 156-25  permits and on applications for financial assistance for
 156-26  construction of treatment works.  (Sec. 26.037, Water Code.)
 156-27        Sec. 10.058.  Fiscal Control on Water Quality Management
  157-1  Planning.  In administering the program for making grants and loans
  157-2  to and contracting with local governments, regional planning
  157-3  commissions, and planning agencies as authorized in Section
  157-4  10.056(c), the commission shall adopt rules and procedures for the
  157-5  necessary engineering review and supervision, fiscal control, and
  157-6  fund accounting.  The fiscal control and fund accounting procedures
  157-7  are supplemental to other procedures prescribed by law.  (Sec.
  157-8  26.038, Water Code.)
  157-9        Sec. 10.059.  Regional Assessment of Water Quality by
 157-10  Watershed/River Basin.  (a)  The commission shall ensure the
 157-11  comprehensive regional assessment of water quality in each
 157-12  watershed and river basin of the state.  In order to conserve
 157-13  public funds and avoid duplication of effort, river authorities
 157-14  shall, to the greatest extent possible and under the supervision of
 157-15  the commission, conduct regional assessments of their own
 157-16  watersheds.  The commission, either directly or through cooperative
 157-17  agreements and contracts with local governments, shall conduct
 157-18  regional assessments of watersheds where a river authority is
 157-19  unable to perform an adequate assessment of its own watershed.  The
 157-20  assessment must include a review of wastewater discharges, nonpoint
 157-21  source pollution, nutrient loading, toxic materials, biological
 157-22  health of aquatic life, public education and involvement in water
 157-23  quality issues, local and regional pollution prevention efforts,
 157-24  and other factors that affect water quality within the watershed.
 157-25  The assessment shall also review any significant regulatory or
 157-26  enforcement issues affecting the watershed.  The assessment
 157-27  required by this section is a continuing duty, and the assessment
  158-1  shall be revised as necessary to show changes in the factors
  158-2  subject to assessment.
  158-3        (b)  In order to assist in the coordination and development
  158-4  of assessments and reports required by this section, a river
  158-5  authority shall organize and lead a basin-wide steering committee
  158-6  that includes representatives from all appropriate state agencies,
  158-7  political subdivisions, and other governmental bodies with an
  158-8  interest in water quality matters of the watershed or river basin.
  158-9  Each committee member shall help identify significant water quality
 158-10  issues within the basin and shall make available to the river
 158-11  authority all relevant water quality data held by the represented
 158-12  entities.  A river authority shall also develop a public input
 158-13  process that provides for meaningful comments and review by private
 158-14  citizens and organizations on each regional assessment and report.
 158-15        (c)  The purpose of the assessment required by this section
 158-16  is not to mandate exhaustive and detailed water quality studies,
 158-17  but rather to identify significant issues affecting water quality
 158-18  within each watershed and river basin of the state and to provide
 158-19  sufficient information for the commission, river authorities, and
 158-20  other governmental bodies to take appropriate corrective action
 158-21  necessary to maintain and improve the quality of the state's water
 158-22  resources.  The commission shall establish by rule the level of
 158-23  detail required for each watershed and river basin assessment.
 158-24        (d)  On or before October 1 of each even-numbered year, each
 158-25  river authority shall report in writing to the governor,
 158-26  commission, and Parks and Wildlife Department on the water quality
 158-27  assessment of the authority's watershed, including an
  159-1  identification of any significant regulatory or enforcement issues,
  159-2  and on any actions taken by the authority and other local
  159-3  governments to improve water quality within the authority's
  159-4  watershed.  The assessment report must identify each legal,
  159-5  administrative, economic, or other impediment to further water
  159-6  quality efforts by the authority and local governments.  The
  159-7  commission shall then prepare a report that summarizes each river
  159-8  authority's assessment report, describes the commission's regional
  159-9  water quality assessment efforts, and lists the commission's past
 159-10  and proposed actions for improving water quality within the
 159-11  watersheds subject to such assessments.  The commission shall
 159-12  submit its report, along with the commission's comments and
 159-13  recommendations on regional water quality management, to the
 159-14  governor, the lieutenant governor, and the speaker of the house of
 159-15  representatives on or before December 1 of each even-numbered year.
 159-16        (e)  Each local government within the watershed of a river
 159-17  authority shall cooperate in making the assessment under Subsection
 159-18  (a) and in preparing the report by providing to the river authority
 159-19  all information available to the local government about water
 159-20  quality within the jurisdiction of the local government, including
 159-21  the extraterritorial jurisdiction of a municipality.  Nothing in
 159-22  this section shall be construed to limit or increase the authority
 159-23  or obligations of a municipality in regard to water pollution
 159-24  control and abatement programs described by Section 10.127.
 159-25        (f)  If more than one river authority is located in a
 159-26  watershed, all river authorities within the watershed shall
 159-27  cooperate in making the assessments and preparing the reports.
  160-1        (g)  For purposes of this section, solid waste and solid
  160-2  waste management shall have the same meaning as in Chapter 20.
  160-3  Each river authority and local government is authorized and
  160-4  encouraged, but not required, to manage solid waste and to
  160-5  facilitate and promote programs for the collection and disposal of
  160-6  household consumer and agricultural products which contain
  160-7  hazardous constituents or hazardous substances and which, when
  160-8  disposed of improperly, represent a threat of contamination to the
  160-9  water resources of the state.  Such programs may include the
 160-10  establishment of a permanent collection site, mobile collection
 160-11  sites, periodic collection events, or other methods which a river
 160-12  authority or local government may deem effective.
 160-13        (h)  The commission shall apportion, assess, and recover the
 160-14  reasonable costs of administering water quality management programs
 160-15  under this section from all users of water and wastewater permit
 160-16  holders in the watershed according to the records of the commission
 160-17  generally in proportion to their right, through permit or contract,
 160-18  to use water from and discharge wastewater in the watershed.  The
 160-19  cost to river authorities and others to conduct regional water
 160-20  quality assessment shall be subject to prior review and approval by
 160-21  the commission as to methods of allocation and total amount to be
 160-22  recovered.  The commission shall adopt rules to supervise and
 160-23  implement the water quality assessment and associated costs.  The
 160-24  rules shall ensure that water users and wastewater dischargers do
 160-25  not pay excessive amounts, that a river authority may recover no
 160-26  more than the actual costs of administering the water quality
 160-27  management programs called for in this section, and that no
  161-1  municipality shall be assessed cost for any efforts that duplicate
  161-2  water quality management activities described in Section 10.127.
  161-3        (i)  In this section, "river authority" means:
  161-4              (1)  a river authority as defined by Section 30.003,
  161-5  Water Code, that includes 10 or more counties; and
  161-6              (2)  any other river authority or special district
  161-7  created under Article III, Section 52, Subsection (b)(1) or (2), or
  161-8  Article XVI, Section 59, of the Texas Constitution that is
  161-9  designated by rule of the commission to comply with this section.
 161-10  (Sec. 26.0135, Water Code.)
 161-11        Sec. 10.060.  Regional Water Quality Implementation.  The
 161-12  commission is the agency with primary responsibility for
 161-13  implementation of regional water quality management functions,
 161-14  including enforcement actions, within the state.  The commission by
 161-15  rule shall coordinate the water quality responsibilities of river
 161-16  authorities within each watershed and shall, where appropriate,
 161-17  delegate water quality functions to local governments under Section
 161-18  10.125.  Nothing in this section is intended to enlarge, diminish,
 161-19  or supersede the water quality powers, including enforcement
 161-20  authority, authorized by law for river authorities, the State Soil
 161-21  and Water Conservation Board, and local governments.  For purposes
 161-22  of this section, river authority shall have the same meaning as
 161-23  that contained in Section 10.059(i).  (Sec. 26.0136, Water Code.)
 161-24            (Sections 10.061-10.100 reserved for expansion)
 161-25               SUBCHAPTER D.  GENERAL POWERS AND DUTIES
 161-26        Sec. 10.101.  General Powers and Duties.  Except as otherwise
 161-27  specifically provided, the commission shall administer the
  162-1  provisions of this chapter and shall establish the level of quality
  162-2  to be maintained in, and shall control the quality of, the water in
  162-3  this state as provided by this chapter.  Waste discharges or
  162-4  impending waste discharges covered by the provisions of this
  162-5  chapter are subject to reasonable rules or orders adopted or issued
  162-6  by the commission in the public interest.  The commission has the
  162-7  powers and duties specifically prescribed by this chapter and all
  162-8  other powers necessary or convenient to carry out its
  162-9  responsibilities.  This chapter does not apply to discharges of oil
 162-10  covered under Chapter 40, Natural Resources Code.  (Sec. 26.011,
 162-11  Water Code.)
 162-12        Sec. 10.102.  Health Hazards.  The commission may use any
 162-13  means provided by this chapter to prevent a discharge of waste that
 162-14  is injurious to public health.  (Sec. 26.041, Water Code.)
 162-15        Sec. 10.103.  Monitoring and Reporting.  The commission may
 162-16  prescribe reasonable requirements for a person making waste
 162-17  discharges to monitor and report on his waste collection,
 162-18  treatment, and disposal activities.  When in the judgment of the
 162-19  commission significant water quality management benefits will
 162-20  result or water quality management needs justify, the commission
 162-21  may also prescribe reasonable requirements for any person or
 162-22  persons making waste discharges to monitor and report on the
 162-23  quality of any water in the state which the commission has reason
 162-24  to believe may be materially affected by the waste discharges.
 162-25  This section is effective until delegation of NPDES permit
 162-26  authority.  (Sec. 26.042, Water Code.)
 162-27        Sec. 10.1031.  Monitoring and Reporting.  (a)  The commission
  163-1  may prescribe reasonable requirements for a person making
  163-2  discharges of any waste or of any pollutant to monitor and report
  163-3  on his activities concerning collection, treatment, and disposal of
  163-4  the waste or pollutant.
  163-5        (b)  The commission may, by regulation, order, permit, or
  163-6  otherwise require the owner or operator of any source of a
  163-7  discharge of pollutants into any water in the state or of any
  163-8  source which is an industrial user of a publicly owned treatment
  163-9  works to:
 163-10              (1)  establish and maintain such records;
 163-11              (2)  make such reports;
 163-12              (3)  sample any discharges in accordance with such
 163-13  methods, at such locations, at such intervals, and in such manner
 163-14  as the commission shall prescribe; and
 163-15              (4)  provide such other information relating to
 163-16  discharges of pollutants into any water in the state or to
 163-17  introductions of pollutants into publicly owned treatment works as
 163-18  the commission may reasonably require.
 163-19        (c)  When in the judgment of the commission significant water
 163-20  quality management benefits will result or water quality management
 163-21  needs justify, the commission may also prescribe reasonable
 163-22  requirements for any person or persons making discharges of any
 163-23  waste or of any pollutant to monitor and report on the quality of
 163-24  any water in the state which the commission has reason to believe
 163-25  may be materially affected by the discharges.
 163-26        (d)  This section is effective on delegation of NPDES permit
 163-27  authority.  (Sec. 26.042, Water Code.)
  164-1        Sec. 10.104.  Protection of the Edwards Aquifer.  (a)  As
  164-2  used in this section, "Edwards Aquifer" means that portion of an
  164-3  arcuate belt of porous, waterbearing limestones composed of the
  164-4  Comanche Peak, Edwards, and Georgetown formations trending from
  164-5  west to east to northeast through Kinney, Uvalde, Medina, Bexar,
  164-6  Kendall, Comal, and Hays counties, respectively, and as defined in
  164-7  the most recent rules of the commission for the protection of the
  164-8  quality of the potable underground water in those counties.
  164-9        (b)  Annually, the commission shall hold a public hearing in
 164-10  Kinney, Uvalde, Medina, Bexar, Kendall, Comal, or Hays County, and
 164-11  a hearing in any other of those counties whose commissioners court
 164-12  requests that a hearing be held in its county, to receive evidence
 164-13  from the public on actions the commission should take to protect
 164-14  the Edwards Aquifer from pollution.  Notice of the public hearing
 164-15  shall be given and the hearing shall be conducted in accordance
 164-16  with the rules of the commission.  (Sec. 26.046, Water Code.)
 164-17        Sec. 10.105.  The State of Texas Water Pollution Control
 164-18  Compact.  (a)  The legislature recognizes that various river
 164-19  authorities and municipal water districts and authorities of the
 164-20  state have signed, and that others are authorized to sign and may
 164-21  sign, a document entitled "The State of Texas Water Pollution
 164-22  Control Compact" (hereinafter called the "compact"), which was
 164-23  approved by Order of the Texas Water Quality Board on March 26,
 164-24  1971, and which is now on file in the official records of the
 164-25  commission, wherein each of the signatories is by law an official
 164-26  agency of the state, created pursuant to Article XVI, Section 59 of
 164-27  the Texas Constitution and operating on a multiple county or
  165-1  regional basis, and that collectively those signatories constitute
  165-2  an agency of the state authorized to agree to pay, and to pay, for
  165-3  and on behalf of the state not less than 25 percent of the
  165-4  estimated costs of all water pollution control projects in the
  165-5  state, wherever located, for which federal grants are to be made
  165-6  pursuant to Clause (7), Subsection (b), Section 1158, Federal Water
  165-7  Pollution Control Act, as amended (33 U.S.C. Section 1158), or any
  165-8  similar law, in accordance with and subject to the terms and
  165-9  conditions of the compact.  The compact provides a method for
 165-10  taking advantage of increased federal grants for water pollution
 165-11  control projects by virtue of the state payment which will be made
 165-12  from the proceeds from the sale of bonds by the signatories to the
 165-13  compact.  The compact is hereby ratified and approved, and it is
 165-14  hereby provided that Section 30.026, Water Code, shall not
 165-15  constitute a limitation or restriction on any signatory with
 165-16  respect to any contract entered into pursuant to the compact or
 165-17  with respect to any water pollution control project in the state,
 165-18  wherever located, for which the aforesaid federal grants are to be
 165-19  made, and such signatory shall not be required to obtain the
 165-20  consent of any other river authority or conservation and
 165-21  reclamation district which is not a signatory with respect to any
 165-22  such contract or project.  Each signatory to the compact is
 165-23  empowered and authorized to do any and all things and to take any
 165-24  and all action and to execute any and all contracts and documents
 165-25  which are necessary or convenient in carrying out the purposes and
 165-26  objectives of the compact and issuing bonds pursuant thereto, with
 165-27  reference to any water pollution control project in the state,
  166-1  wherever located, for which the aforesaid federal grants are to be
  166-2  made.
  166-3        (b)  It is further found, determined, and enacted that all
  166-4  bonds issued pursuant to said compact and all bonds issued to
  166-5  refund or refinance same are and will be for water quality
  166-6  enhancement purposes, within the meaning of Article III, Section
  166-7  49-d-1, as amended, of the Texas Constitution and any and all bonds
  166-8  issued by a signatory to said compact to pay for all or any part of
  166-9  a project pursuant to the compact and any bonds issued to refund or
 166-10  refinance any such bonds may be purchased by the Texas Water
 166-11  Development Board with money received from the sale of Texas Water
 166-12  Development Board bonds pursuant to said Article III, Section
 166-13  49-d-1, as amended, of the Texas Constitution.  The bonds or
 166-14  refunding bonds shall be purchased directly from any such signatory
 166-15  at such price as is necessary to provide the state payment and any
 166-16  other part of the cost of the project or necessary to accomplish
 166-17  the refunding, and all purchases shall constitute loans for water
 166-18  quality enhancement.  The bonds or refunding bonds shall have the
 166-19  characteristics and be issued on such terms and conditions as are
 166-20  acceptable to the board.  The proceeds received by any such
 166-21  signatory from the sale of any such bonds shall be used to provide
 166-22  the state payment pursuant to the compact and any other part of the
 166-23  cost of the project, and the proceeds from the sale of any such
 166-24  refunding bonds to refund any outstanding bonds issued pursuant to
 166-25  the compact shall be used to pay off and retire the bonds being
 166-26  refunded thereby.
 166-27        (c)  This section is not intended to interfere in any way
  167-1  with the operation of Article III, Section 49-d-1, as amended, of
  167-2  the Texas Constitution or the enabling legislation enacted pursuant
  167-3  thereto, and the aforesaid compact shall constitute merely a
  167-4  complementary or supplemental method for providing the state
  167-5  payment solely in instances that it is deemed necessary or
  167-6  advisable by the board.  (Sec. 26.043, Water Code.)
  167-7        Sec. 10.106.  Certificate of Competency.  (a)  The holders of
  167-8  permits to discharge wastewater from a sewage treatment facility
  167-9  shall employ a treatment plant operator holding a valid certificate
 167-10  of competency issued under the direction of the commission.
 167-11        (b)  Every person, company, corporation, firm, or partnership
 167-12  that employs sewage treatment plant operators and is in the
 167-13  business of providing as a sewage treatment facility operations
 167-14  must hold a valid certificate of competency issued under the
 167-15  direction of the commission.  Any employee of a person, company,
 167-16  corporation, firm, or partnership who will be operating a sewage
 167-17  treatment facility must hold a valid certificate of competency
 167-18  issued under the direction of the commission.
 167-19        (c)  The commission may suspend or revoke the certificate of
 167-20  competency for sewage treatment facility operation of an individual
 167-21  treatment facility operator or a sewage treatment facility
 167-22  operations company, after notice and hearing before the commission,
 167-23  if the holder of a certificate of competency is responsible for
 167-24  violating a discharge permit of a sewage treatment plant.
 167-25        (d)  The holder of a certificate of competency is not subject
 167-26  to the revocation or suspension of the certificate of competency
 167-27  under Subsection (c) if:
  168-1              (1)  the holder of a certificate is unable to properly
  168-2  operate the sewage treatment facility due to the refusal of the
  168-3  permittee to authorize necessary expenditures to operate the sewage
  168-4  treatment facility properly; or
  168-5              (2)  failure of the sewage treatment facility to comply
  168-6  with its discharge permit results from faulty design of the sewage
  168-7  treatment facility.  (Secs.  26.0301(a), (b), (c), (d), Water
  168-8  Code.)
  168-9        Sec. 10.107.  Private Sewage Facilities.  (a)  As used in
 168-10  this section and Section 10.129, "private sewage facilities" means
 168-11  septic tanks, pit privies, cesspools, sewage holding tanks,
 168-12  injection wells used to dispose of sewage, chemical toilets,
 168-13  treatment tanks, and all other facilities, systems, and methods
 168-14  used for the disposal of sewage other than disposal systems
 168-15  operated under a permit issued by the commission.
 168-16        (b)  Whenever it appears that the use of private sewage
 168-17  facilities in an area is causing or may cause pollution or is
 168-18  injuring or may injure the public health, the commission may hold a
 168-19  public hearing in or near the area to determine whether rules
 168-20  should be adopted controlling or prohibiting the installation or
 168-21  use of private sewage facilities in the area.
 168-22        (c)  Before the commission adopts its rules, the executive
 168-23  director shall consult with the commissioner of the Texas
 168-24  Department of Health for recommendations concerning the impact of
 168-25  the use of private sewage facilities in the area on public health
 168-26  and present the recommendations at the hearing.
 168-27        (d)  If the commission finds after the hearing that the use
  169-1  of private sewage facilities in an area is causing or may cause
  169-2  pollution or is injuring or may injure the public health, the
  169-3  commission may adopt rules as it may consider appropriate to abate
  169-4  or prevent pollution or injury to public health.
  169-5        (e)  The rules may, without limitation, do one or more of the
  169-6  following:
  169-7              (1)  limit the number and kind of private sewage
  169-8  facilities which may be used in the area;
  169-9              (2)  prohibit the installation and use of additional
 169-10  private sewage facilities or kinds of private sewage facilities in
 169-11  the area;
 169-12              (3)  require modifications or improvements to existing
 169-13  private sewage facilities or impose limitations on their use; and
 169-14              (4)  provide for a gradual and systematic reduction of
 169-15  the number or kinds of private sewage facilities in the area.
 169-16        (f)  The commission may provide in the rules for a system of
 169-17  licensing of private sewage facilities in the area, including
 169-18  procedures for cancellation of a license for violation of this
 169-19  section, the license, or the rules of the commission.  The
 169-20  commission may also provide in the system of licensing for periodic
 169-21  renewal of the licenses, but this may not be required more
 169-22  frequently than once a year.
 169-23        (g)  The commission may delegate the licensing function and
 169-24  the administration of the licensing system to the executive
 169-25  director or to any local government whose boundaries include the
 169-26  area or which has been designated by the commission under Sections
 169-27  10.151 through 10.156 as the agency to develop a regional waste
  170-1  disposal system which includes the area or to any district or
  170-2  authority created and existing under Article XVI, Section 59 or
  170-3  Article III, Section 52 of the Texas Constitution, which owns or
  170-4  operates a dam or reservoir project within the area regulated.
  170-5  (Secs. 26.031(a), (b), (c), (d), (e), (f), (g), Water Code.)
  170-6        Sec. 10.108.  Rating of Waste Disposal Systems.  (a)  After
  170-7  consultation with the Texas Department of Health, the commission
  170-8  shall provide by rule for a system of approved ratings for
  170-9  municipal waste disposal systems and other waste disposal systems
 170-10  which the commission may designate.
 170-11        (b)  The owner or operator of a municipal waste disposal
 170-12  system which attains an approved rating has the privilege of
 170-13  erecting signs of a design approved by the commission on highways
 170-14  approaching or inside the boundaries of the municipality, subject
 170-15  to reasonable restrictions and requirements which may be
 170-16  established by the Texas Department of Transportation.
 170-17        (c)  In addition, the owner or operator of any waste disposal
 170-18  system, including a municipal system, which attains an approved
 170-19  rating has the privilege of erecting signs of a design approved by
 170-20  the commission at locations which may be approved or established by
 170-21  the commission, subject to such reasonable restrictions and
 170-22  requirements which may be imposed by any governmental entity having
 170-23  jurisdiction.
 170-24        (d)  If the waste disposal system fails to continue to
 170-25  achieve an approved rating, the commission may revoke the
 170-26  privilege.  On due notice from the commission, the owner or
 170-27  operator of the system shall remove the signs.  (Sec. 26.033, Water
  171-1  Code.)
  171-2        Sec. 10.109.  Approval of Disposal System Plans.  (a)  The
  171-3  commission shall review and approve plans and specifications for
  171-4  all treatment facilities, sewer systems, and disposal systems that
  171-5  transport, treat, or dispose of primarily domestic wastes.
  171-6        (b)  Before beginning construction, every person who proposes
  171-7  to construct or materially alter the efficiency of any treatment
  171-8  works to which this section applies shall submit completed plans
  171-9  and specifications to the commission for review and approval.
 171-10        (c)  The commission shall approve the plans and
 171-11  specifications if they conform to the waste discharge requirements
 171-12  and water quality standards established by the commission.  (Sec.
 171-13  26.034, Water Code.)
 171-14            (Sections 10.110-10.120 reserved for expansion)
 171-15             SUBCHAPTER E.  AUTHORITY OF LOCAL GOVERNMENTS
 171-16        Sec. 10.121.  INSPECTION OF PUBLIC WATER.  A local government
 171-17  may inspect the public water in its area and determine whether or
 171-18  not:
 171-19              (1)  the quality of the water meets the state water
 171-20  quality standards adopted by the commission;
 171-21              (2)  persons discharging effluent into the public water
 171-22  located in the areas of which the local government has jurisdiction
 171-23  have obtained permits for discharge of the effluent; and
 171-24              (3)  persons who have permits are making discharges in
 171-25  compliance with the requirements of the permits.  (Sec. 26.171,
 171-26  Water Code.)
 171-27        Sec. 10.122.  RECOMMENDATION TO COMMISSION.  A local
  172-1  government may make written recommendations to the commission as to
  172-2  what in its judgment the water quality standards should be for any
  172-3  public water within its territorial jurisdiction.  (Sec. 26.172,
  172-4  Water Code.)
  172-5        Sec. 10.123.  POWER TO ENTER PROPERTY.  (a)  A local
  172-6  government has the same power as the commission has under
  172-7  Section 2.201 to enter public and private property within its
  172-8  territorial jurisdiction to make inspections and investigations of
  172-9  conditions relating to water quality.  The local government in
 172-10  exercising this power is subject to the same provisions and
 172-11  restrictions as the commission.
 172-12        (b)  When requested by the executive director, the result of
 172-13  any inspection or investigation made by the local government shall
 172-14  be transmitted to the commission for its consideration.
 172-15  (Sec. 26.173, Water Code.)
 172-16        Sec. 10.124.  ENFORCEMENT ACTION.  A local government may
 172-17  bring an enforcement action under this chapter in the manner
 172-18  provided in Subchapter D for local governments.  (Sec. 26.174,
 172-19  Water Code.)
 172-20        Sec. 10.125.  COOPERATIVE AGREEMENTS.  (a)  A local
 172-21  government may execute cooperative agreements with the commission
 172-22  or other local governments:
 172-23              (1)  to provide for the performance of water quality
 172-24  management, inspection, and enforcement functions and to provide
 172-25  technical aid and educational services to any party to the
 172-26  agreement; and
 172-27              (2)  for the transfer of money or property from any
  173-1  party to the agreement to another party to the agreement for the
  173-2  purpose of water quality management, inspection, enforcement,
  173-3  technical aid and education, and the construction, ownership,
  173-4  purchase, maintenance, and operation of disposal systems.
  173-5        (b)  When in the opinion of the executive director it would
  173-6  facilitate and enhance the performance by a local government of its
  173-7  water quality management, inspection, and enforcement functions
  173-8  pursuant to a cooperative agreement between the local government
  173-9  and the commission as authorized in Subsection (a), the executive
 173-10  director may assign and delegate to the local government during the
 173-11  period of the agreement such of the pertinent powers and functions
 173-12  vested in the commission under this chapter as in the judgment of
 173-13  the executive director may be necessary or helpful to the local
 173-14  government in performing those management, inspection, and
 173-15  enforcement functions.
 173-16        (c)  At any time and from time to time prior to the
 173-17  termination of the cooperative agreement, the executive director
 173-18  may modify or rescind any such assignment or delegation.
 173-19        (d)  The executive director shall notify immediately a local
 173-20  government to whom it assigns or delegates any powers and functions
 173-21  pursuant to Subsections (b) and (c) or as to when it modifies or
 173-22  rescinds any such assignment or delegation.  (Sec. 26.175, Water
 173-23  Code.)
 173-24        Sec. 10.126.  DISPOSAL SYSTEM RULES.  (a)  Every local
 173-25  government which owns or operates a disposal system is empowered to
 173-26  and shall, except as authorized in Subsection (c), enact and
 173-27  enforce rules, ordinances, orders, or resolutions, referred to in
  174-1  this section as rules, to control and regulate the type, character,
  174-2  and quality of waste which may be discharged to the disposal system
  174-3  and, where necessary, to require pretreatment of waste to be
  174-4  discharged to the system, so as to protect the health and safety of
  174-5  personnel maintaining and operating the disposal system and to
  174-6  prevent unreasonable adverse effects on the disposal system.
  174-7        (b)  The local government in its rules may establish the
  174-8  charges and assessments which may be made to and collected from all
  174-9  persons who discharge waste to the disposal system or who have
 174-10  conduits or other facilities for discharging waste connected to the
 174-11  disposal system, referred to in this subsection as "users."  The
 174-12  charges and assessments shall be equitable as between all users and
 174-13  shall correspond as near as can be practically determined to the
 174-14  cost of making the waste disposal services available to all users
 174-15  and of treating the waste of each user or class of users.  The
 174-16  charges and assessments may include user charges, connection fees,
 174-17  or any other methods of obtaining revenue from the disposal system
 174-18  available to the local government.  In establishing the charges and
 174-19  assessments, the local government shall take into account:
 174-20              (1)  the volume, type, character, and quality of the
 174-21  waste of each user or class of users;
 174-22              (2)  the techniques of treatment required;
 174-23              (3)  any capital costs and debt retirement expenses of
 174-24  the disposal system required to be paid for from the charges and
 174-25  assessments;
 174-26              (4)  the costs of operating and maintaining the system
 174-27  to comply with this chapter and the permits, rules, and orders of
  175-1  the commission; and
  175-2              (5)  any other costs directly attributable to providing
  175-3  the waste disposal service under standard, accepted cost-accounting
  175-4  practices.
  175-5        (c)  A local government may apply to the commission for an
  175-6  exception from the requirements of Subsections (a) and (b) or for a
  175-7  modification of those requirements.  The application shall contain
  175-8  the exception or modifications desired, the reasons the exception
  175-9  or modifications are needed, and the grounds authorized in this
 175-10  subsection on which the commission should grant the application.  A
 175-11  public hearing on the application shall be held in or near the
 175-12  territorial area of the local government, and notice of the hearing
 175-13  shall be given to the local government.  If after the hearing the
 175-14  commission in its judgment determines that the volume, type,
 175-15  character, and quality of the waste of the users of the system or
 175-16  of a particular user or class of users of the system do not warrant
 175-17  the enactment and enforcement of rules containing the requirements
 175-18  prescribed in Subsections (a) and (b) or that the enactment and
 175-19  enforcement of the rules would be impractical or unreasonably
 175-20  burdensome on the local government in relation to the public
 175-21  benefit to be derived, then the commission in its discretion may
 175-22  enter an order granting an exception to those requirements or
 175-23  modifying those requirements in any particular in response to
 175-24  circumstances shown to exist.
 175-25        (d)  At any time and from time to time as circumstances may
 175-26  require, the commission may amend or revoke any order it enters
 175-27  pursuant to Subsection (c).   Before the commission amends or
  176-1  revokes such an order, a public hearing shall be held in or near
  176-2  the territorial area of the local government in question, and
  176-3  notice of the hearing shall be given to the local government.  If
  176-4  after the hearing the commission in its judgment determines that
  176-5  the circumstances on which it based the order have changed
  176-6  significantly or no longer exist, the commission may revoke the
  176-7  order or amend it in any particular in response to the
  176-8  circumstances then shown to exist.
  176-9        (e)  In the event of any conflict between the provisions of
 176-10  this section and any other laws or parts of laws, the provisions of
 176-11  this section shall control.   (Sec. 26.176, Water Code.)
 176-12        Sec. 10.127.  WATER POLLUTION CONTROL DUTIES OF CITIES.  (a)
 176-13  Every city in this state having a population of 5,000 or more
 176-14  inhabitants shall, and any city of this state may, establish a
 176-15  water pollution control and abatement program for the city.  The
 176-16  city shall employ or retain an adequate number of personnel on
 176-17  either a part-time or full-time basis as the needs and
 176-18  circumstances of the city may require, who by virtue of their
 176-19  training or experience are qualified to perform the water pollution
 176-20  control and abatement functions required to enable the city to
 176-21  carry out its duties and responsibilities under this section.
 176-22        (b)  The water pollution control and abatement program of a
 176-23  city shall encompass the entire city and may include areas within
 176-24  its extraterritorial jurisdiction which in the judgment of the city
 176-25  should be included to enable the city to achieve the objectives of
 176-26  the city for the area within its territorial jurisdiction.  The
 176-27  city shall include in the program the services and functions which,
  177-1  in the judgment of the city or as may be reasonably required by the
  177-2  commission, will provide effective water pollution control and
  177-3  abatement for the city, including the following services and
  177-4  functions:
  177-5              (1)  the development and maintenance of an inventory of
  177-6  all significant waste discharges into or adjacent to the water
  177-7  within the city and, where the city so elects, within the
  177-8  extraterritorial jurisdiction of the city, without regard to
  177-9  whether or not the discharges are authorized by the commission;
 177-10              (2)  the regular monitoring of all significant waste
 177-11  discharges included in the inventory prepared pursuant to
 177-12  Subdivision (1) of this subsection;
 177-13              (3)  the collecting of samples and the conducting of
 177-14  periodic inspections and tests of the waste discharges being
 177-15  monitored to determine whether the discharges are being conducted
 177-16  in compliance with this chapter and any applicable permits, orders,
 177-17  or rules of the commission, and whether they should be covered by a
 177-18  permit from the commission;
 177-19              (4)  in cooperation with the commission, a procedure
 177-20  for obtaining compliance by the waste dischargers being monitored,
 177-21  including where necessary the use of legal enforcement proceedings;
 177-22              (5)  the development and execution of reasonable and
 177-23  realistic plans for controlling and abating pollution or potential
 177-24  pollution resulting from generalized discharges of waste which are
 177-25  not traceable to a specific source, such as storm sewer discharges
 177-26  and urban runoff from rainwater; and
 177-27              (6)  any additional services, functions, or other
  178-1  requirements as may be prescribed by commission rule.
  178-2        (c)  The water pollution control and abatement program
  178-3  required by Subsections (a) and (b) must be submitted to the
  178-4  commission for review and approval.  The commission may adopt rules
  178-5  providing the criteria for the establishment of those programs and
  178-6  the review and approval of those programs.
  178-7        (d)  Any person affected by any ruling, order, decision,
  178-8  ordinance, program, resolution, or other act of a city relating to
  178-9  water pollution control and abatement outside the corporate limits
 178-10  of such city adopted pursuant to this section or any other
 178-11  statutory authorization may appeal such action to the commission or
 178-12  district court.   An appeal must be filed with the commission
 178-13  within 60 days of the enactment of the ruling, order, decision,
 178-14  ordinance, program, resolution, or act of the city.  The issue on
 178-15  appeal is whether the action or program is invalid, arbitrary,
 178-16  unreasonable, inefficient, or ineffective in its attempt to control
 178-17  water quality.  The commission or district court may overturn or
 178-18  modify the action of the city.  If an appeal is taken from a
 178-19  commission ruling, the commission ruling shall be in effect for all
 178-20  purposes until final disposition is made by a court of competent
 178-21  jurisdiction so as not to delay any permit approvals.
 178-22        (e)  All financial assistance from the board to a city having
 178-23  a population of 5,000 or more inhabitants shall be conditioned on
 178-24  the city  submitting to the commission for review and in accordance
 178-25  with rules and submission schedules promulgated by the commission a
 178-26  water pollution control and abatement program as required by
 178-27  Subsections (a)-(d).  The board may award grants from the research
  179-1  and planning fund of the water assistance fund to river authorities
  179-2  seeking such funds for purposes of performing regional water
  179-3  quality assessments described in Section 10.059.  (Secs. 26.177(a),
  179-4  (b), (c), (d), Water Code; Sec. 26.178, Water Code, as added by
  179-5  Sec. 5, Ch. 294, Acts 72nd Leg., R.S., 1991.)
  179-6        Sec. 10.128.  NONPOINT SOURCE WATER POLLUTION CONTROL
  179-7  PROGRAMS OF CERTAIN MUNICIPALITIES.  (a)  This section applies to a
  179-8  municipality to which Section 42.903, Local Government Code,
  179-9  applies.
 179-10        (b)  The municipality shall exercise the powers granted under
 179-11  state law to a municipality to adopt ordinances to control and
 179-12  abate nonpoint source water pollution or to protect threatened or
 179-13  endangered species.
 179-14        (c)  The municipality by ordinance shall adopt a nonpoint
 179-15  source water pollution control and abatement program for the
 179-16  municipality and its extraterritorial jurisdiction before the
 179-17  municipality adopts a resolution or ordinance creating an
 179-18  extraterritorial jurisdiction under Section 42.903, Local
 179-19  Government Code.  The municipality shall submit the ordinance
 179-20  creating the program to the commission.  Notwithstanding any other
 179-21  law requiring the adoption of an ordinance creating an
 179-22  extraterritorial jurisdiction and approval by the commission, the
 179-23  ordinance creating the program becomes effective and is enforceable
 179-24  by the municipality on the 90th day after the date the municipality
 179-25  submits the ordinance unless the ordinance is disapproved by the
 179-26  commission during the 90-day period.
 179-27        (d)  If the commission disapproves a program submitted under
  180-1  Subsection (c), the commission shall make recommendations to the
  180-2  municipality.  The municipality shall adopt and incorporate the
  180-3  commission's recommendations in the program.
  180-4        (e)  The nonpoint source water pollution controls of the
  180-5  municipality that had extraterritorial jurisdiction over an area
  180-6  before the area was included in the extraterritorial jurisdiction
  180-7  of another municipality under Section 42.903, Local Government
  180-8  Code, are effective during the 90-day period that the program is
  180-9  pending before the commission or until an amended program
 180-10  satisfactory to the commission is adopted.  The municipality,
 180-11  including the area in its extraterritorial jurisdiction under
 180-12  Section 42.903, Local Government Code, shall enforce the controls
 180-13  during the 90-day period.
 180-14        (f)  If a nonpoint source water pollution control and
 180-15  abatement program is adopted by a river authority that has
 180-16  boundaries that encompass the extraterritorial jurisdiction of the
 180-17  municipality, the standards under the program adopted by the
 180-18  municipality must meet or exceed the standards under the program
 180-19  adopted by the river authority.
 180-20        (g)  The municipality may not grant a waiver to its nonpoint
 180-21  source water pollution control and abatement program unless
 180-22  granting the waiver would demonstrably improve water quality.
 180-23  (Sec. 26.178, Water Code, as added by Sec. 13.01(b), Ch. 16, Acts
 180-24  72nd Leg., R.S., 1991.)
 180-25        Sec. 10.129.  CONTROL OF PRIVATE SEWAGE FACILITIES BY
 180-26  COUNTIES.  (a)  Whenever it appears to the commissioners court of
 180-27  any county that the use of private sewage facilities in an area
  181-1  within the county is causing or may cause pollution or is injuring
  181-2  or may injure the public health, the county may proceed in the same
  181-3  manner and in accordance with the same procedures as the commission
  181-4  to hold a public hearing and adopt an order, resolution, or other
  181-5  rule as it may consider appropriate to abate or prevent pollution
  181-6  or injury to public health.
  181-7        (b)  The order, resolution, or other rule may provide the
  181-8  same restrictions and requirements as are authorized for an order
  181-9  of the commission adopted under Section 10.107.
 181-10        (c)  Before the order, resolution, or other rule becomes
 181-11  effective, the county shall submit it to the commission and obtain
 181-12  the commission's written approval.
 181-13        (d)  In the event of any conflict within an area between
 181-14  rules adopted by the commission and an order, resolution, or other
 181-15  rule adopted by a county under this section, the rules of the
 181-16  commission shall take precedence.
 181-17        (e)  Where a system of licensing has been adopted by the
 181-18  commission or the commissioners court of a county, no person may
 181-19  install or use private sewage facilities required to be licensed
 181-20  without obtaining a license.  (Sec. 26.032, Water Code.)
 181-21        Sec. 10.130.  Sewage discharge into open ponds; municipal
 181-22  corporations of 600,000 to 900,000.  (a)  No municipal corporation
 181-23  with a population of not less than 600,000 nor more than 950,000
 181-24  according to the last preceding Federal census, may discharge any
 181-25  municipal sewage into any open pond, the surface area of which pond
 181-26  covers more than 100 acres, if the discharge will cause or result
 181-27  in a nuisance.  The commission and the Texas Department of Health
  182-1  shall make periodic inspections of such ponds as necessary, but at
  182-2  least once every year, and shall ascertain whether such pond is
  182-3  causing or will cause or result in a nuisance.  If the commission,
  182-4  acting in accord with the Texas Department of Health, shall
  182-5  ascertain that the maintenance of such pond creates or continues a
  182-6  nuisance, it shall advise the municipal corporation making such
  182-7  discharge and shall allow such municipal corporation adequate time
  182-8  to abate such nuisance.
  182-9        (b)  Any municipal corporation with a population of not less
 182-10  than 600,000 nor more than 950,000 which fails to abate a nuisance
 182-11  pursuant to a directive of the commission as provided in Subsection
 182-12  (a), within a reasonable time after notification of such failure by
 182-13  the commission, shall be liable to a civil penalty of not more than
 182-14  $1,000 a day for each day that it maintains such a nuisance.
 182-15        (c)  Chapter 311, Government Code, does not apply to this
 182-16  section.  (V.A.C.S. Art. 4477-1a.)
 182-17            (Sections 10.131-10.150 reserved for expansion)
 182-18             SUBCHAPTER F.  REGIONAL AND AREA-WIDE SYSTEMS
 182-19        Sec. 10.151.  General Policy.  (a)  The legislature finds and
 182-20  declares that it is necessary to the health, safety, and welfare of
 182-21  the people of this state to implement the state policy to encourage
 182-22  and promote the development and use of regional and area-wide waste
 182-23  collection, treatment, and disposal systems to serve the waste
 182-24  disposal needs of the citizens of the state and to prevent
 182-25  pollution and maintain and enhance the quality of the water in the
 182-26  state.
 182-27        (b)  Within any standard metropolitan statistical area in the
  183-1  state, the commission is authorized to implement this policy in the
  183-2  manner and in accordance with the procedure provided in this
  183-3  section and Sections 10.152-10.156.
  183-4        (c)  In those portions of the state which are not within a
  183-5  standard metropolitan statistical area, the commission shall
  183-6  observe this state policy by encouraging interested and affected
  183-7  persons to cooperate in developing and using regional and area-wide
  183-8  systems.  The commission may not use the procedure specified in
  183-9  this section and Sections 10.152-10.156 in these areas to implement
 183-10  this policy.  However, this does not affect or diminish any
 183-11  authority which the commission may otherwise have and exercise
 183-12  under other provisions of this chapter.
 183-13        (d)  The term "standard metropolitan statistical area," as
 183-14  used in this section, means an area consisting of a county or one
 183-15  or more contiguous counties which is officially designated as such
 183-16  by the United States Office of Management and Budget or its
 183-17  successor in this function.  (Sec. 26.081, Water Code.)
 183-18        Sec. 10.152.  Hearing to Define Area of Regional or Area-Wide
 183-19  System.  (a)  Whenever it appears to the commission that because of
 183-20  the existing or reasonably foreseeable residential, commercial,
 183-21  industrial, recreational, or other economic development in an area
 183-22  a regional or area-wide waste collection, treatment, or disposal
 183-23  system or systems are necessary to prevent pollution or maintain
 183-24  and enhance the quality of the water in the state, the commission
 183-25  may hold a public hearing in or near the area to determine whether
 183-26  the policy stated in Section 10.151 should be implemented in that
 183-27  area.
  184-1        (b)  Notice of the hearing shall be given to the local
  184-2  governments which in the judgment of the commission may be
  184-3  affected.
  184-4        (c)  If after the hearing the commission finds that a
  184-5  regional or area-wide system or systems are necessary or desirable
  184-6  to prevent pollution or maintain and enhance the quality of the
  184-7  water in the state, the commission may enter an order defining the
  184-8  area in which such a system or systems are necessary or desirable.
  184-9  (Sec. 26.082, Water Code.)
 184-10        Sec. 10.153.  Hearing to Designate Systems to Serve the Area
 184-11  Defined; Order; Election; Etc.  (a)  At the hearing held under
 184-12  Section 10.152 or at a subsequent hearing held in or near an area
 184-13  defined under Section 10.152, the commission may consider whether
 184-14  to designate the person to provide a regional or area-wide system
 184-15  or systems to serve all or part of the waste collection, treatment,
 184-16  or disposal needs of the area defined.
 184-17        (b)  Notice of the hearing shall be given to the local
 184-18  governments and to owners and operators of any waste collection,
 184-19  treatment, and disposal systems who in the judgment of the
 184-20  commission may be affected.
 184-21        (c)  If after the hearing the commission finds that there is
 184-22  an existing or proposed system or systems then capable or which in
 184-23  the reasonably foreseeable future will be capable of serving the
 184-24  waste collection, treatment, or disposal needs of all or part of
 184-25  the area defined and that the owners or operators of the system or
 184-26  systems are agreeable to providing the services, the commission may
 184-27  enter an order designating the person to provide the waste
  185-1  collection, treatment, or disposal system or systems to serve all
  185-2  or part of the area defined.
  185-3        (d)  After the commission enters an order under Subsection
  185-4  (c) and if the commission receives a timely and sufficient request
  185-5  for an election as provided in Section 10.157, the commission shall
  185-6  designate a presiding judge for an election, to determine whether
  185-7  the proposed regional or area-wide system or systems operated by
  185-8  the designated regional entity should be created.  (Sec. 26.083,
  185-9  Water Code.)
 185-10        Sec. 10.154.  Actions Available to Commission After
 185-11  Designation of Systems.  (a)  After the commission has entered an
 185-12  order as authorized in Section 10.153, the commission may, after
 185-13  public hearing and after giving notice of the hearing to the
 185-14  persons who in the judgment of the commission may be affected, take
 185-15  any one or more of the following actions:
 185-16              (1)  enter an order requiring any person discharging or
 185-17  proposing to discharge waste into or adjacent to the water in the
 185-18  state in an area defined in an order entered under Section 10.152
 185-19  to use a regional or area-wide system designated under Section
 185-20  10.153 for the disposal of his waste;
 185-21              (2)  refuse to grant any permits for the discharge of
 185-22  waste or to approve any plans for the construction or material
 185-23  alteration of any sewer system, treatment facility, or disposal
 185-24  system in an area defined in an order entered under Section 10.152
 185-25  unless the permits or plans comply and are consistent with any
 185-26  orders entered under Sections 10.151-10.153, this section, and
 185-27  Sections 10.155-10.156; or
  186-1              (3)  cancel or suspend any permit, or amend any permit
  186-2  in any particular, which authorizes the discharge of waste in an
  186-3  area defined in an order entered under Section 10.152.
  186-4        (b)  Before exercising the authority granted in this section,
  186-5  the commission shall find affirmatively:
  186-6              (1)  that there is an existing or proposed regional or
  186-7  area-wide system designated under Section 10.153 which is capable
  186-8  or which in the reasonably foreseeable future will be capable of
  186-9  serving the waste collection, treatment, or disposal needs of the
 186-10  person or persons who are the subject of an action taken by the
 186-11  commission under this section;
 186-12              (2)  that the owner or operator of the designated
 186-13  regional or area-wide system is agreeable to providing the service;
 186-14              (3)  that it is feasible for the service to be provided
 186-15  on the basis of waste collection, treatment, and disposal
 186-16  technology, engineering, financial, and related considerations
 186-17  existing at the time, exclusive of any loss of revenue from any
 186-18  existing or proposed waste collection, treatment, or disposal
 186-19  systems in which the person or persons who are the subject of an
 186-20  action taken under this section have an interest;
 186-21              (4)  that inclusion of the person or persons who are
 186-22  the subject of an action taken by the commission under this section
 186-23  will not suffer undue financial hardship as a result of inclusion
 186-24  in a regional or area-wide system; and
 186-25              (5)  that a majority of the votes cast in any election
 186-26  held under Section 10.157 favor the creation of the regional or
 186-27  area-wide system or systems operated by the designated regional
  187-1  entity.
  187-2        (c)  An action taken by the commission under Section 10.155,
  187-3  excluding any person or persons from a regional or area-wide system
  187-4  because the person or persons will suffer undue financial hardship
  187-5  as a result of inclusion in the regional or area-wide system, shall
  187-6  be subject to a review at a later time determined by the commission
  187-7  in accordance with the criteria set out in this section, not to
  187-8  exceed three years from the date of exclusion.
  187-9        (d)  If a person or persons excluded from a regional or
 187-10  area-wide system fail to operate the excluded facilities in a
 187-11  manner that will comply with its permits, the permits shall be
 187-12  subject to cancellation after review by the commission, and the
 187-13  facilities may become a part of the regional or area-wide system.
 187-14  (Sec. 26.084, Water Code.)
 187-15        Sec. 10.155.  Inclusion at a Later Time.  Any person or
 187-16  persons who are the subject of an action taken by the commission
 187-17  under Section 10.154 and who are excluded from a regional or
 187-18  area-wide system because the person or persons will suffer undue
 187-19  financial hardship as a result of inclusion in the regional or
 187-20  area-wide system may be added to the system at a later time under
 187-21  the provisions of Section 10.154.  (Sec. 26.085, Water Code.)
 187-22        Sec. 10.156.  Rates for Services by Designated Systems.
 187-23  (a)  On motion of any interested party and after a public hearing,
 187-24  the commission may set reasonable rates for the furnishing of waste
 187-25  collection, treatment, or disposal services to any person by a
 187-26  regional or area-wide system designated under Section 10.153.
 187-27        (b)  Notice of the hearing shall be given to the owner or
  188-1  operator of the designated regional or area-wide system, the person
  188-2  requesting the hearing, and any other person who in the judgment of
  188-3  the commission may be affected by the action taken by the
  188-4  commission as a result of the hearing.
  188-5        (c)  After the hearing, the commission shall enter an order
  188-6  setting forth its findings and the rates which may be charged for
  188-7  the services by the owner or operator of the designated regional or
  188-8  area-wide system.  (Sec. 26.086, Water Code.)
  188-9        Sec. 10.157.  Election for Approval of Regional or Area-Wide
 188-10  System.  (a)  After the commission under Sections 10.152 and
 188-11  10.153, enters an order:  defining an area for a regional or
 188-12  area-wide system or systems; designating a regional entity to
 188-13  operate the regional or area-wide system or systems; and appointing
 188-14  a presiding judge for the election, an election shall be held
 188-15  within the boundaries of the proposed regional or area-wide system
 188-16  or systems to be operated by the designated regional entity upon
 188-17  the filing of a timely and sufficient request for an election
 188-18  except as provided in Subsection (i).
 188-19        (b)  Any person located within the boundaries of the proposed
 188-20  regional or area-wide system or systems requesting an election for
 188-21  the approval of the proposed regional or area-wide system or
 188-22  systems to be operated by the designated regional entity shall file
 188-23  a written request with the commission within 30 days of the date
 188-24  the commission enters an order under Section 10.153.  The request
 188-25  shall include a petition signed by 50 persons holding title to the
 188-26  land within the proposed regional or area-wide system or systems,
 188-27  as indicated by the county tax rolls.
  189-1        (c)  Notice of the election shall state the day and place or
  189-2  places for holding the election, and the proposition to be voted
  189-3  on.  The notice shall be published once a week for two consecutive
  189-4  weeks in a newspaper with general circulation in the county or
  189-5  counties in which the regional or area-wide system or systems is to
  189-6  be located.  The first publication of the notice shall be at least
  189-7  14 days before the day set for the election.  Notice of the
  189-8  election shall be given to the local governments and to owners and
  189-9  operators of any waste collection, treatment, and disposal systems
 189-10  who in the judgment of the commission may be affected.
 189-11        (d)  Absentee balloting in the election shall begin 10 days
 189-12  before the election and shall end as provided in the Texas Election
 189-13  Code.  The ballots for the election shall be printed to provide for
 189-14  voting for or against the regional or area-wide system to be
 189-15  operated by the designated regional entity.
 189-16        (e)  Immediately after the election, the presiding judge
 189-17  shall make returns of the result to the executive director.  The
 189-18  executive director shall canvass the returns and report to the
 189-19  commission his findings of the results at the earliest possible
 189-20  time.
 189-21        (f)  If a majority of the votes cast in the election favor
 189-22  the creation of the regional or area-wide system or systems
 189-23  operated by the designated regional entity, then the commission
 189-24  shall declare the regional system is created and enter the results
 189-25  in its minutes.  If a majority of the votes cast in the election
 189-26  are against the creation of the regional or area-wide system or
 189-27  systems operated by the designated regional entity, then the
  190-1  commission shall declare that the regional system was defeated and
  190-2  enter the result in its minutes.
  190-3        (g)  The order canvassing the results of the confirmation
  190-4  election shall contain a description of the regional system's
  190-5  boundaries and shall be filed in the deed records of the county or
  190-6  counties in which the regional system is located.
  190-7        (h)  The legislature, through the General Appropriations Act,
  190-8  may provide funds for the conduct of elections required under this
  190-9  section.  If no funds are appropriated for this purpose, the costs
 190-10  of conducting the election shall be assessed by the commission.
 190-11        (i)  This subsection applies to regional or area-wide system
 190-12  or systems and regional entities which have been designated prior
 190-13  to the effective date of this Act.  An election to approve creation
 190-14  of a regional or area-wide system or systems and the designation of
 190-15  a regional entity to operate those systems as provided in this
 190-16  section shall not be required for those regional systems or
 190-17  entities to which this subsection applies.  (Sec. 26.087, Water
 190-18  Code.)
 190-19            (Sections 10.158-10.170 reserved for expansion)
 190-20           SUBCHAPTER G.  OIL AND HAZARDOUS SUBSTANCE SPILL
 190-21                        PREVENTION AND CONTROL
 190-22        Sec. 10.171.  Short Title.  This subchapter may be cited as
 190-23  the Texas Hazardous Substances Spill Prevention and Control Act.
 190-24  (Sec. 26.261, Water Code.)
 190-25        Sec. 10.172.  Policy.  It is the policy of this state to
 190-26  prevent the spill or discharge of hazardous substances into the
 190-27  waters in the state and to cause the removal of such spills and
  191-1  discharges without undue delay.  This subchapter shall be construed
  191-2  to conform with Chapter 40, Natural Resources Code.  (Sec. 26.262,
  191-3  Water Code.)
  191-4        Sec. 10.173.  Definitions.  As used in this subchapter:
  191-5              (1)  "Discharge or spill" means an act or omission by
  191-6  which hazardous substances in harmful quantities are spilled,
  191-7  leaked, pumped, poured, emitted, entered, or dumped onto or into
  191-8  waters in this state or by which those substances are deposited
  191-9  where, unless controlled or removed, they may drain, seep, run, or
 191-10  otherwise enter water in this state.  The term "discharge" or
 191-11  "spill" under this subchapter shall not include any discharge to
 191-12  which Subchapter C, D, E, F, or G, Chapter 40, Natural Resources
 191-13  Code, applies or any discharge which is authorized by a permit
 191-14  issued pursuant to federal law or any other law of this state or,
 191-15  with the exception of spills in coastal waters, regulated by the
 191-16  Railroad Commission of Texas.
 191-17              (2)  "Fund" means the Texas Spill Response Fund.
 191-18              (3)  "Harmful quantity" means that quantity of
 191-19  hazardous substance the discharge or spill of which is determined
 191-20  to be harmful to the environment or public health or welfare or may
 191-21  reasonably be anticipated to present an imminent and substantial
 191-22  danger to the public health or welfare by the administrator of the
 191-23  Environmental Protection Agency pursuant to federal law and by the
 191-24  executive director.
 191-25              (4)  "Hazardous substance" means any substance
 191-26  designated as such by the administrator of the Environmental
 191-27  Protection Agency pursuant to the Comprehensive Environmental
  192-1  Response, Compensation, and Liability Act (42 U.S.C. Sec. 9601 et
  192-2  seq.), regulated pursuant to Section 311 of the federal Clean
  192-3  Water Act (33 U.S.C. Sec. 1321 et seq.), or designated by the
  192-4  commission.
  192-5              (5)  "Person" includes an individual, firm,
  192-6  corporation, association, and partnership.
  192-7              (6)  "Person responsible" or "responsible person"
  192-8  means:
  192-9                    (A)  the owner, operator, or demise charterer of
 192-10  a vessel from which a spill emanates;
 192-11                    (B)  the owner or operator of a facility from
 192-12  which a spill emanates;
 192-13                    (C)  any other person who causes, suffers,
 192-14  allows, or permits a spill or discharge.  (Sec. 26.263, Water
 192-15  Code.)
 192-16        Sec. 10.174.  Administrative Provisions.  (a)  Except as
 192-17  provided in Chapter 40, Natural Resources Code, the commission
 192-18  shall be the state's lead agency in spill response, shall conduct
 192-19  spill response for the state, and shall otherwise administer this
 192-20  subchapter.  The commission shall conduct spill response and
 192-21  cleanup for spills and discharges of hazardous substances other
 192-22  than oil in or threatening coastal waters according to the
 192-23  applicable provisions of the state coastal discharge contingency
 192-24  plan promulgated by the commission under Section 40.053, Natural
 192-25  Resources Code.  The commission shall cooperate with other
 192-26  agencies, departments, and subdivisions of this state and of the
 192-27  United States in implementing this subchapter.  In the event of a
  193-1  discharge or spill and after reasonable effort to obtain entry
  193-2  rights from each property owner involved, if any, the executive
  193-3  director may enter affected property to carry out necessary spill
  193-4  response actions.
  193-5        (b)  The commission may issue rules necessary and convenient
  193-6  to carry out the purposes of this subchapter.
  193-7        (c)  The executive director shall enforce the provisions of
  193-8  this subchapter and any rules given effect pursuant to Subsection
  193-9  (b).
 193-10        (d)  The executive director with the approval of the
 193-11  commission may contract with any public agency or private persons
 193-12  or other entity for the purpose of implementing this subchapter.
 193-13        (e)  The executive director shall solicit the assistance of
 193-14  and cooperate with local governments, the federal government, other
 193-15  agencies and departments of this state, and private persons and
 193-16  other entities to develop regional contingency plans for prevention
 193-17  and control of hazardous substance spills and discharges.  The
 193-18  executive director may solicit the assistance of spill cleanup
 193-19  experts in determining appropriate measures to be taken in cleaning
 193-20  up a spill or discharge.  The executive director shall develop a
 193-21  list of spill cleanup experts to be consulted, but shall not be
 193-22  limited to that list in seeking assistance.  No person providing
 193-23  such assistance shall be held liable for any acts or omissions of
 193-24  the executive director which may result from soliciting such
 193-25  assistance.
 193-26        (f)  The commission and the Texas Department of
 193-27  Transportation, in cooperation with the governor, the United States
  194-1  Coast Guard, and the Environmental Protection Agency, shall develop
  194-2  a contractual agreement whereby personnel, equipment, and materials
  194-3  in possession or under control of the Texas Department of
  194-4  Transportation may be diverted and utilized for spill and discharge
  194-5  cleanup as provided for in this subchapter.  Under the agreement,
  194-6  the following conditions shall be met:
  194-7              (1)  the commission and the Texas Department of
  194-8  Transportation shall develop and maintain written agreements and
  194-9  contracts on how such utilization will be effected, and designating
 194-10  agents for this purpose;
 194-11              (2)  personnel, equipment, and materials may be
 194-12  diverted only with the approval of the commission and the Texas
 194-13  Department of Transportation, acting through their designated
 194-14  agents, or by action of the governor;
 194-15              (3)  all expenses and costs of acquisition of such
 194-16  equipment and materials or resulting from such cleanup activities
 194-17  shall be paid from the fund, subject to reimbursement as provided
 194-18  in this subchapter; and
 194-19              (4)  subsequent to such activities, a full report of
 194-20  all expenditures and significant actions shall be prepared and
 194-21  submitted to the governor and the Legislative Budget Board, and
 194-22  shall be reviewed by the commission.
 194-23        (g)  The executive director shall develop and revise from
 194-24  time to time written action and contractual plans with the
 194-25  designated on-scene coordinator provided for by federal law.
 194-26        (h)(1)  In developing rules and plans under this subchapter
 194-27  and in engaging in cleanup activities under this subchapter, the
  195-1  commission shall recognize the authority of the predesignated
  195-2  federal on-scene coordinator to oversee, coordinate, and direct all
  195-3  private and public activities related to cleanup of discharges and
  195-4  spills that are undertaken pursuant to the Comprehensive
  195-5  Environmental Response, Compensation, and Liability Act (42 U.S.C.
  195-6  Sec. 9601 et seq.), the federal Clean Water Act (33 U.S.C. Sec.
  195-7  1321 et seq.), and the national contingency plan authorized by the
  195-8  federal Clean Water Act (33 U.S.C. Sec. 1321 et seq.).
  195-9              (2)  Nothing in this subchapter shall require the
 195-10  state-designated on-scene coordinator to defer to federal
 195-11  authority, unless preempted by federal law, if remedial action is
 195-12  unduly delayed or is ineffective.
 195-13              (3)  Nothing in this subchapter shall prevent the
 195-14  executive director from appointing a state-designated on-scene
 195-15  coordinator and acting independently if no on-scene federal
 195-16  coordinator is present or no action is being taken by an agency of
 195-17  the federal government.
 195-18              (4)  If an incident under this subchapter is eligible
 195-19  for federal funds, the commission shall seek reimbursement from the
 195-20  designated agencies of the federal government for the reasonable
 195-21  costs incurred in cleanup operations, including but not limited to
 195-22  costs of personnel, equipment, the use of equipment, and supplies
 195-23  and restoration of land and aquatic resources held in trust or
 195-24  owned by the state.
 195-25              (5)  The commission may enter into contracts or
 195-26  cooperative agreements under Section 104(c) and (d) of the
 195-27  Comprehensive Environmental Response, Compensation, and Liability
  196-1  Act (42 U.S.C. Sec. 9601 et seq.) or Section 311 of the federal
  196-2  Clean Water Act (33 U.S.C. Sec. 1321 et seq.) to undertake
  196-3  authorized removal actions under this subchapter.
  196-4        (i)  The executive director shall after appropriate
  196-5  investigation prepare a report on state-funded cleanup of a
  196-6  discharge or spill, and this report shall provide the following
  196-7  information:
  196-8              (1)  a description of the incident, including location,
  196-9  amount, and characteristics of the material discharged or spilled
 196-10  and the prevailing weather conditions;
 196-11              (2)  the time and duration of discharge or spill and
 196-12  the time and method by which the discharge or spill was reported;
 196-13              (3)  the action taken, and by whom, to contain and
 196-14  clean up the discharge or spill;
 196-15              (4)  an assessment of both the short-term and long-term
 196-16  environmental impact of the accidental discharge or spill;
 196-17              (5)  the cost of cleanup operations incurred by the
 196-18  state;
 196-19              (6)  an evaluation of the principal causes of the
 196-20  discharge or spill and an assessment of how similar incidents might
 196-21  be prevented in the future; and
 196-22              (7)  a description of any legal action being taken to
 196-23  levy penalties or collect damages.
 196-24        (j)  This subchapter is cumulative of all other powers of the
 196-25  commission.
 196-26        (k)  In the event that a discharge or spill presents or
 196-27  threatens to present an occurrence of disaster proportions, the
  197-1  governor shall utilize the authority granted him under the Texas
  197-2  Disaster Act of 1975 (Chapter 418, Government Code) to make
  197-3  available and bring to bear all resources of the state to prevent
  197-4  or lessen the impact of such a disaster.
  197-5        (l)  To the extent practicable and in lieu of the provisions
  197-6  of this subchapter, for facilities permitted under Chapter 20 to
  197-7  store, process, or dispose of hazardous waste, the department shall
  197-8  use procedures established under existing hazardous waste permits
  197-9  to abate or remove discharges or spills.  (Sec. 26.264, Water
 197-10  Code.)
 197-11        Sec. 10.175.  Texas Spill Response Fund.  (a)  There is
 197-12  hereby created the Texas Spill Response Fund.  This fund shall not
 197-13  exceed $5 million, exclusive of fines and penalties received under
 197-14  this subchapter.
 197-15        (b)  The fund shall consist of money appropriated to it by
 197-16  the legislature and any fines, civil penalties, or other
 197-17  reimbursement to the fund provided for under this subchapter.
 197-18        (c)  The executive director with the approval of the
 197-19  commission may expend money in the fund only for the purpose of
 197-20  obtaining personnel, equipment, and supplies required in the
 197-21  cleanup of discharges and spills, including restoration of land and
 197-22  aquatic resources held in trust or owned by the state.
 197-23        (d)  In addition to any cause of action under Chapter 40,
 197-24  Natural Resources Code, the state has a cause of action against any
 197-25  responsible person for recovery of:
 197-26              (1)  expenditures out of the fund; and
 197-27              (2)  costs that would have been incurred or paid by the
  198-1  responsible person if the responsible person had fully carried out
  198-2  the duties under Section 10.176, including:
  198-3                    (A)  reasonable costs of reasonable and necessary
  198-4  scientific studies to determine impacts of the spill on the
  198-5  environment and natural resources and to determine the manner in
  198-6  which to respond to spill impacts;
  198-7                    (B)  costs of attorney services;
  198-8                    (C)  out-of-pocket costs associated with state
  198-9  agency action;
 198-10                    (D)  reasonable costs incurred by the state in
 198-11  cleanup operations, including costs of personnel, equipment, and
 198-12  supplies and restoration of land and aquatic resources held in
 198-13  trust or owned by the state; and
 198-14                    (E)  costs of remediating injuries proximately
 198-15  caused by reasonable cleanup activities.
 198-16        (e)  The state's right to recover under Subsection (d) arises
 198-17  whether or not expenditures have actually been made out of the
 198-18  fund.
 198-19        (f)  It is the intent of the legislature that the state
 198-20  attempt to recover the costs of cleanup according to the following
 198-21  priority:
 198-22              (1)  a responsible person; and
 198-23              (2)  the federal government to the extent that recovery
 198-24  from a responsible person is insufficient to pay the costs of
 198-25  cleanup.
 198-26        (g)  In a suit brought under Subsection (d), any responsible
 198-27  person who, after reasonable notice has been given by the executive
  199-1  director, has failed, after a reasonable period, to carry out his
  199-2  duties under Section 10.176 is liable to the state for twice the
  199-3  costs incurred by the state under this subchapter in cleaning up
  199-4  the spill or discharge.  Reasonable notice under this subsection
  199-5  must include a statement as to the basis for finding the person to
  199-6  whom notice is sent to be a responsible person.   Any responsible
  199-7  person held liable under this subsection or Subsection (d) has the
  199-8  right to recover indemnity or contribution from any third party who
  199-9  caused, suffered, allowed, or permitted the spill or discharge.
 199-10  Liability arising under this subsection or Subsection (d) does not
 199-11  affect any rights the responsible person has against a third party
 199-12  whose acts caused or contributed to the spill or discharge.
 199-13  (Sec. 26.265, Water Code.)
 199-14        Sec. 10.176.  Removal of Spill or Discharge.  (a)  Any owner,
 199-15  operator, demise charterer, or person in charge of a vessel or of
 199-16  any on-shore facility or off-shore facility shall immediately
 199-17  undertake all reasonable actions to abate and remove the discharge
 199-18  or spill subject to applicable federal and state requirements, and
 199-19  subject to the control of the federal on-scene coordinator.
 199-20        (b)  In the event that the responsible person is unwilling or
 199-21  in the opinion of the executive director is unable to remove the
 199-22  discharge or spill, or the removal operation of the responsible
 199-23  person is inadequate, the commission may undertake the removal of
 199-24  the discharge or spill and may retain agents for these purposes who
 199-25  shall operate under the direction of the executive director.
 199-26        (c)  Any discharge or spill of a hazardous substance, the
 199-27  source of which is unknown, occurring in or having a potentially
  200-1  harmful effect on waters in this state or in waters beyond the
  200-2  jurisdiction of this state and which may reasonably be expected to
  200-3  enter waters in this state may be removed by or under the direction
  200-4  of the executive director.  Any expense involved in the removal of
  200-5  an unexplained discharge pursuant to this subsection shall be paid,
  200-6  on the commission's approval, from the fund, subject to the
  200-7  authority of the commission to seek reimbursement from an agency of
  200-8  the federal government, and from the responsible person if the
  200-9  identity of that person is discovered.  (Sec. 26.266, Water Code.)
 200-10        Sec. 10.177.  Exemptions.  (a)  No person shall be held
 200-11  liable under this subchapter for any spill or discharge resulting
 200-12  from an act of God, act of war, third party negligence, or an act
 200-13  of government.
 200-14        (b)  Nothing in this subchapter shall in any way affect or
 200-15  limit the liability of any person to any other person or to the
 200-16  United States, or to this state.
 200-17        (c)  Notwithstanding any other provision of this subchapter,
 200-18  the state or the commission shall utilize any and all procedures
 200-19  relating to releases or threatened releases of solid wastes
 200-20  contained in Chapter 20 prior to utilizing the provisions of this
 200-21  subchapter with respect to such releases or threatened releases.
 200-22  (Sec. 26.267, Water Code.)
 200-23        Sec. 10.178.  Penalties.  (a)  This section is cumulative of
 200-24  all penalties and enforcement provisions provided elsewhere to the
 200-25  commission, except that the commission may not assess penalties
 200-26  under this section for violations of this subchapter which are also
 200-27  violations of any permit, rule, or order applicable to hazardous
  201-1  waste under Chapter 20.
  201-2        (b)  Any person who violates any provision of this subchapter
  201-3  or of a commission rule or order issued pursuant to this subchapter
  201-4  is subject to a civil penalty of not less than $100 nor more than
  201-5  $10,000 for each act of violation and for each day of violation.
  201-6  The day on which a spill or discharge occurs and each day during
  201-7  which the spill or discharge has not been removed is a day of
  201-8  violation.
  201-9        (c)  Any person operating, in charge of, or responsible for a
 201-10  facility or vessel which causes a discharge or spill as defined in
 201-11  this subchapter and fails to report said spill or discharge upon
 201-12  discovery thereof shall be guilty of a Class A misdemeanor.
 201-13        (d)  Any person who knowingly falsifies records or reports
 201-14  concerning the prevention or cleanup of a discharge or spill as
 201-15  provided for in this subchapter is guilty of a felony of the third
 201-16  degree.
 201-17        (e)  The penalties authorized by this subchapter for
 201-18  discharges and spills shall not apply to any discharge or spill
 201-19  promptly reported and where reasonable precautions to minimize the
 201-20  spill's impacts and reasonable efforts to clean it up were made by
 201-21  the responsible person in accordance with the rules and orders of
 201-22  the commission, unless the commission finds that the discharge or
 201-23  spill is the result of the negligence of the responsible person.
 201-24  (Sec. 26.268, Water Code.)
 201-25        Sec. 10.179.  Accidental Discharges and Spills.  (a)  As used
 201-26  in this section:
 201-27              (1)  "Accidental discharge" means an act or omission
  202-1  through which waste or other substances are inadvertently
  202-2  discharged into water in the state.
  202-3              (2)  "Spill" means an act or omission through which
  202-4  waste or other substances are deposited where, unless controlled or
  202-5  removed, they will drain, seep, run, or otherwise enter water in
  202-6  the state.
  202-7              (3)  "Other substances" means substances which may be
  202-8  useful or valuable and therefore are not ordinarily considered to
  202-9  be waste, but which will cause pollution if discharged into water
 202-10  in the state.
 202-11        (b)  Whenever an accidental discharge or spill occurs at or
 202-12  from any activity or facility which causes or may cause pollution,
 202-13  the individual operating, in charge of, or responsible for the
 202-14  activity or facility shall notify the commission as soon as
 202-15  possible and not later than 24 hours after the occurrence.
 202-16        (c)  Activities which are inherently or potentially capable
 202-17  of causing or resulting in the spillage or accidental discharge of
 202-18  waste or other substances and which pose serious or significant
 202-19  threats of pollution are subject to reasonable rules establishing
 202-20  safety and preventive measures which the commission may adopt or
 202-21  issue.  The safety and preventive measures which may be required
 202-22  shall be commensurate with the potential harm which could result
 202-23  from the escape of the waste or other substances.
 202-24        (d)  The provisions of this section are cumulative of the
 202-25  other provisions in this chapter relating to waste discharges, and
 202-26  nothing in this section exempts any person from complying with or
 202-27  being subject to any other provision of this chapter.
  203-1  (Sec. 26.039, Water Code.)
  203-2            (Sections 10.180-10.200 reserved for expansion)
  203-3                SUBCHAPTER H. UNDERGROUND STORAGE TANKS
  203-4        Sec. 10.201.  Purpose.  (a) The legislature finds that
  203-5  leaking underground tanks storing certain hazardous, toxic, or
  203-6  otherwise harmful substances have caused and continue to pose
  203-7  serious groundwater contamination problems in Texas.
  203-8        (b)  The legislature declares that it is the policy of this
  203-9  state and the purpose of this subchapter to:
 203-10              (1)  maintain and protect the quality of groundwater
 203-11  and surface water resources in the state from certain substances in
 203-12  underground and aboveground storage tanks that may pollute
 203-13  groundwater and surface water resources; and
 203-14              (2)  require the use of all reasonable methods to
 203-15  implement this policy.  (Sec. 26.341, Water Code.)
 203-16        Sec. 10.202.  Definitions.  In this subchapter:
 203-17              (1)  "Aboveground storage tank" means a nonvehicular
 203-18  device that is:
 203-19                    (A)  made of nonearthen materials;
 203-20                    (B)  located on or above the surface of the
 203-21  ground or on or above the surface of the floor of a structure below
 203-22  ground such as a mineworking, basement, or vault; and
 203-23                    (C)  designed to contain an accumulation of
 203-24  petroleum.
 203-25              (2)  "Claim" means a demand in writing for a certain
 203-26  sum.
 203-27              (3)  "Corporate fiduciary" means an entity chartered by
  204-1  the Banking Department of Texas, the Savings and Loan Department of
  204-2  Texas, the United States comptroller of the currency, or the
  204-3  director of the United States Office of Thrift Supervision that
  204-4  acts as a receiver, conservator, guardian, executor, administrator,
  204-5  trustee, or fiduciary of real or personal property.
  204-6              (4)  "Eligible owner or operator" means a person
  204-7  designated as an eligible owner or operator for purposes of this
  204-8  subchapter by the commission under Section 10.224.
  204-9              (5)  "Hazardous substance" has the meaning assigned by
 204-10  Section 101(14) of the Comprehensive Environmental Response,
 204-11  Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et
 204-12  seq.).
 204-13              (6)  "Hydraulic fluid" means any regulated substance
 204-14  that can be used in a hydraulic lift system.
 204-15              (7)  "Lender" means:
 204-16                    (A)  a state or national bank;
 204-17                    (B)  a state or federal savings and loan
 204-18  association or savings bank;
 204-19                    (C)  a credit union;
 204-20                    (D)  a state or federal agency that customarily
 204-21  provides financing; or
 204-22                    (E)  an entity that is registered with the Office
 204-23  of Consumer Credit Commissioner pursuant to Chapter 7, Title 79,
 204-24  Revised Statutes (Article 5069-7.01 et seq., Vernon's Texas Civil
 204-25  Statutes), if the entity is regularly engaged in the business of
 204-26  extending credit and if extending credit represents the majority of
 204-27  the entity's total business activity.
  205-1              (8)  "Person" means an individual, trust, firm,
  205-2  joint-stock company, corporation, government corporation,
  205-3  partnership, association, state, municipality, commission,
  205-4  political subdivision of a state, an interstate body, a consortium,
  205-5  joint venture, commercial entity, or the United States government.
  205-6              (9)  "Petroleum product" means a petroleum product that
  205-7  is obtained from distilling and processing crude oil and that is
  205-8  capable of being used as a fuel for the propulsion of a motor
  205-9  vehicle or aircraft, including motor gasoline, gasohol, other
 205-10  alcohol blended fuels, aviation gasoline, kerosene, distillate fuel
 205-11  oil, and #1 and #2 diesel.  The term does not include naphtha-type
 205-12  jet fuel, kerosene-type jet fuel, or a petroleum product destined
 205-13  for use in chemical manufacturing or feedstock of that
 205-14  manufacturing.
 205-15              (10)  "Petroleum storage tank" means:
 205-16                    (A)  any one or combination of aboveground
 205-17  storage tanks that contain petroleum products and that are
 205-18  regulated by the commission; or
 205-19                    (B)  any one or combination of underground
 205-20  storage tanks and any connecting underground pipes that contain
 205-21  petroleum products and that are regulated by the commission.
 205-22              (11)  "Regulated substance" means an element, compound,
 205-23  mixture, solution, or substance that, when released into the
 205-24  environment, may present substantial danger to the public health,
 205-25  welfare, or the environment.
 205-26              (12)  "Release" means any spilling including overfills,
 205-27  leaking, emitting, discharging, escaping, leaching, or disposing
  206-1  from an underground or aboveground storage tank into groundwater,
  206-2  surface water, or subsurface soils.
  206-3              (13)  "Spent oil" means a regulated substance that is a
  206-4  lubricating oil or similar petroleum substance which has been
  206-5  refined from crude oil, used for its designed or intended purposes,
  206-6  and contaminated as a result of that use by physical or chemical
  206-7  impurities, including spent motor vehicle lubricating oils,
  206-8  transmission fluid, or brake fluid.
  206-9              (14)  "Underground storage tank" means any one or
 206-10  combination of underground tanks and any connecting underground
 206-11  pipes used to contain an accumulation of regulated substances, the
 206-12  volume of which, including the volume of the connecting underground
 206-13  pipes, is 10 percent or more beneath the surface of the ground.
 206-14              (15)  "Vehicle service and fueling facility" means a
 206-15  facility where motor vehicles are serviced or repaired and where
 206-16  petroleum products are stored and dispensed from fixed equipment
 206-17  into the fuel tanks of motor vehicles.  (Sec.  26.342, Water Code.)
 206-18        Sec. 10.203.  Regulated Substances.  (a)  Regulated
 206-19  substances under this subchapter include:
 206-20              (1)  a substance defined in Section 101(14) of the
 206-21  Comprehensive Environmental Response, Compensation, and Liability
 206-22  Act of 1980 (42 U.S.C.  Section 9601 et seq.), but does not include
 206-23  a substance regulated as a hazardous waste under the federal Solid
 206-24  Waste Disposal Act (42 U.S.C. Section 6921 et seq.);
 206-25              (2)  petroleum, including crude oil or a fraction of
 206-26  it, that is liquid at standard conditions of temperature and
 206-27  pressure; and
  207-1              (3)  any other substance designated by the commission.
  207-2        (b)  Standard conditions of temperature and pressure under
  207-3  Subsection (a)(2) are 60 degrees Fahrenheit and 14.7 pounds per
  207-4  square inch absolute.  (Sec.  26.343, Water Code.)
  207-5        Sec. 10.204.  Exemptions.  (a)  An underground or aboveground
  207-6  storage tank is exempt from regulation under this subchapter if the
  207-7  tank is:
  207-8              (1)  a farm or residential tank with a capacity of
  207-9  1,100 gallons or less used for storing motor fuel for noncommercial
 207-10  purposes;
 207-11              (2)  used for storing heating oil for consumptive use
 207-12  on the premises where stored;
 207-13              (3)  a septic tank;
 207-14              (4)  a surface impoundment, pit, pond, or lagoon;
 207-15              (5)  a storm water or waste water collection system;
 207-16              (6)  a flow-through process tank;
 207-17              (7)  a tank, liquid trap, gathering line, or other
 207-18  facility used in connection with an activity associated with the
 207-19  exploration, development, or production of oil, gas, or geothermal
 207-20  resources, or any other activity regulated by the Railroad
 207-21  Commission of Texas pursuant to Section 91.101, Natural Resources
 207-22  Code; or
 207-23              (8)  a transformer or other electrical equipment that
 207-24  contains a regulated substance and that is used in the transmission
 207-25  of electricity, to the extent that such a transformer or equipment
 207-26  is exempted by the United States Environmental Protection Agency
 207-27  under 40 C.F.R. Part 280.
  208-1        (b)  A storage tank is exempt from regulation under this
  208-2  subchapter if the sole or principal substance in the tank is a
  208-3  hazardous substance and the tank is located:
  208-4              (1)  in an underground area, including a basement,
  208-5  cellar, mineworking, drift, shaft, or tunnel; and
  208-6              (2)  on or above the surface of the floor of that area.
  208-7        (c)  An interstate pipeline facility, including gathering
  208-8  lines, or an aboveground storage tank connected to such a facility
  208-9  is exempt from regulation under this subchapter if the pipeline
 208-10  facility is regulated under:
 208-11              (1)  the Natural Gas Pipeline Safety Act of 1968 (49
 208-12  U.S.C. Section 1671 et seq.); or
 208-13              (2)  the Hazardous Liquid Pipeline Safety Act of 1979
 208-14  (49 U.S.C. Section 2001 et seq.).
 208-15        (d)  An intrastate pipeline facility or an aboveground
 208-16  storage tank connected to such a facility is exempt from regulation
 208-17  under this subchapter if the pipeline facility is regulated under
 208-18  one of the following state laws:
 208-19              (1)  Chapter 111, Natural Resources Code;
 208-20              (2)  Chapter 117, Natural Resources Code; or
 208-21              (3)  Articles 6053-1 and 6053-2, Revised Statutes.
 208-22        (e)  Except for Section 10.212, in-ground hydraulic lifts
 208-23  that use a compressed air/hydraulic fluid system and hold less than
 208-24  100 gallons of hydraulic oil, if exempt by the federal
 208-25  Environmental Protection Agency, are exempt under this subchapter.
 208-26        (f)  An aboveground storage tank that is located at or is
 208-27  part of a petrochemical plant, a petroleum refinery, an electric
  209-1  generating facility, or a bulk facility as that term is defined by
  209-2  Section 2.178(a) is exempt from regulation under this subchapter
  209-3  but is not exempt for purposes of the fee imposed under Section
  209-4  2.178.
  209-5        (g)  Costs incurred as a result of a release from a storage
  209-6  tank system owned, operated, or maintained by a common carrier
  209-7  railroad are not reimbursable pursuant to the provisions of this
  209-8  section.  Common carrier railroads are exempt from the fees
  209-9  collected pursuant to the provisions of this subchapter.  (Sec.
 209-10  26.344, Water Code.)
 209-11        Sec. 10.205.  Aboveground Storage Tanks.  (a)  An aboveground
 209-12  storage tank that is not exempt from regulation under Section
 209-13  10.204 is subject to the registration requirements of Section
 209-14  10.207 and to regulation by the commission only to the extent
 209-15  prescribed by this subchapter.
 209-16        (b)  The commission may not develop a regulatory program for
 209-17  aboveground storage tanks that is more extensive than the
 209-18  regulatory program authorized by this subchapter unless additional
 209-19  regulation of aboveground storage tanks is necessary to comply or
 209-20  be in conformity with requirements adopted by the United States
 209-21  Environmental Protection Agency or with federal law.  (Sec.
 209-22  26.3441, Water Code.)
 209-23        Sec. 10.206.  Administrative Provisions.  (a)  The commission
 209-24  shall administer this subchapter and may develop a regulatory
 209-25  program regarding underground and aboveground storage tanks in
 209-26  accordance with this subchapter.
 209-27        (b)  In implementing this subchapter, the commission shall
  210-1  cooperate with:
  210-2              (1)  cities and towns;
  210-3              (2)  agencies, departments, and other political
  210-4  subdivisions of the state; and
  210-5              (3)  the United States and its agencies.
  210-6        (c)  The commission may adopt rules necessary to carry out
  210-7  the purposes of this subchapter.
  210-8        (d)  The commission may authorize the executive director to
  210-9  enter into contracts with a public agency, private person, or other
 210-10  entity for the purpose of implementing this subchapter.
 210-11        (e)  The commission may enter into contracts and cooperative
 210-12  agreements with the federal government to carry out remedial action
 210-13  for releases from underground and aboveground storage tanks as
 210-14  authorized by the federal Solid Waste Disposal Act (42 U.S.C.
 210-15  Section 6901 et seq.).  (Sec. 26.345, Water Code.)
 210-16        Sec. 10.207.  Registration Requirements.  (a)  An underground
 210-17  or aboveground storage tank must be registered with the commission
 210-18  unless the tank is exempt from regulation under Section 10.204 or
 210-19  the tank is covered under Subsection (b).  The commission by rule
 210-20  shall establish the procedures and requirements for establishing
 210-21  and maintaining current registration information concerning
 210-22  underground and aboveground storage tanks.
 210-23        (b)  An underground storage tank is not required to be
 210-24  registered if the tank:
 210-25              (1)  does not contain a regulated substance; and
 210-26              (2)  is not in operation and has not been in operation
 210-27  since January 1, 1974.
  211-1        (c)  The commission shall issue to each person who owns or
  211-2  operates a petroleum storage tank that is registered under this
  211-3  section a registration certificate that includes a brief
  211-4  description of:
  211-5              (1)  the responsibility of the owner or operator under
  211-6  Section 10.214; and
  211-7              (2)  the rights of the owner or operator to participate
  211-8  in the petroleum storage tank remediation fund and groundwater
  211-9  protection cleanup program established under this subchapter.
 211-10        (d)  A person who has previously provided notice to the
 211-11  commission of an underground storage tank under Section 9002 of the
 211-12  federal Solid Waste Disposal Act (42 U.S.C. Section 6921 et seq.)
 211-13  is not required to register the tank with the commission under this
 211-14  section.  (Sec. 26.346, Water Code.)
 211-15        Sec. 10.208.  Tank Standards.  (a)  The commission shall
 211-16  adopt performance standards for existing underground storage tanks
 211-17  and underground storage tanks brought into use on or after the
 211-18  effective date of the standards.
 211-19        (b)  The performance standards for underground storage tanks
 211-20  must include design, construction, installation, release detection,
 211-21  and compatibility standards.  (Sec. 26.347, Water Code.)
 211-22        Sec. 10.209.  Leak Detection and Record Maintenance.  The
 211-23  commission shall adopt standards of performance for maintaining a
 211-24  leak detection system, an inventory control system together with
 211-25  tank testing, or a comparable system or method designed to identify
 211-26  releases in a manner consistent with the protection of human health
 211-27  and the environment.  In addition, the commission shall adopt
  212-1  requirements for maintaining records of any leak detection
  212-2  monitoring that includes inventory control or tank testing system
  212-3  or comparable system.  (Sec. 26.348, Water Code.)
  212-4        Sec. 10.210.  Reporting of Releases and Corrective Action.
  212-5  (a)  The commission shall adopt requirements for the reporting of
  212-6  any releases and corrective action taken in response to a release
  212-7  from an underground or aboveground storage tank.
  212-8        (b)  The commission shall prepare an annual compilation of
  212-9  reported releases, make that report available to the public, and
 212-10  provide that report to the legislature and to the governor.  The
 212-11  report must contain, for each reported release:
 212-12              (1)  the corrective action or other response taken by
 212-13  the owner, operator, commission, or any local governmental agency;
 212-14  and
 212-15              (2)  any information or enforcement action taken by the
 212-16  commission against the owner or operator responsible for the
 212-17  release.  (Sec. 26.349, Water Code.)
 212-18        Sec. 10.211.  Tank Closure Requirements.  The commission
 212-19  shall adopt requirements for the closure of tanks, including the
 212-20  removal, disposal, or removal and disposal of tanks to prevent
 212-21  future releases of regulated substances into the environment.
 212-22  (Sec. 26.350, Water Code.)
 212-23        Sec. 10.212.  Corrective Action.  (a)  The commission shall
 212-24  adopt rules establishing the requirements for taking corrective
 212-25  action in response to a release from an underground or aboveground
 212-26  storage tank.  Corrective action may include:
 212-27              (1)  site cleanup, including the removal, treatment,
  213-1  and disposal of surface and subsurface contamination;
  213-2              (2)  removal of underground or aboveground storage
  213-3  tanks;
  213-4              (3)  measures to halt a release in progress or to
  213-5  prevent future or threatened releases of regulated substances;
  213-6              (4)  well monitoring, taking of soil borings, and any
  213-7  other actions reasonably necessary to determine the extent of
  213-8  contamination caused by a release;
  213-9              (5)  providing alternate water supplies; and
 213-10              (6)  any other action reasonably necessary to protect
 213-11  the public health and safety or the environment from harm or
 213-12  threatened harm due to releases of regulated substances from
 213-13  underground or aboveground storage tanks.
 213-14        (b)  The owner or operator of an underground or aboveground
 213-15  storage tank shall immediately take all reasonable actions to
 213-16  prevent a threatened release of regulated substances from an
 213-17  underground or aboveground storage tank and to abate and remove any
 213-18  releases subject to applicable federal and state requirements.  The
 213-19  owner or operator may be ordered to take corrective action under
 213-20  this subchapter.
 213-21        (c)  The commission may undertake corrective action in
 213-22  response to a release or a threatened release if:
 213-23              (1)  the owner or operator of the underground or
 213-24  aboveground storage tank is unwilling to take corrective action;
 213-25              (2)  the owner or operator of the underground or
 213-26  aboveground storage tank cannot be found;
 213-27              (3)  the owner or operator of the underground or
  214-1  aboveground storage tank, in the opinion of the executive director,
  214-2  is unable to take the corrective action necessary to protect the
  214-3  public health and safety or the environment; or
  214-4              (4)  notwithstanding any other provision of this
  214-5  chapter, the executive director determines that more expeditious
  214-6  corrective action than is provided by this chapter is necessary to
  214-7  protect the public health and safety or the environment from harm.
  214-8        (d)  The commission may retain agents to take corrective
  214-9  action it considers necessary under this section.  The agents shall
 214-10  operate under the direction of the executive director.  Any
 214-11  expenses arising from corrective action taken by the commission or
 214-12  the executive director may be paid from the storage tank fund.
 214-13        (e)  The commission has the primary regulatory authority to
 214-14  direct the remediation of a release from an underground or
 214-15  aboveground storage tank that contains petroleum if the release
 214-16  does not present an immediate or imminent threat of fire or
 214-17  explosion.  (Sec. 26.351, Water Code.)
 214-18        Sec. 10.213.  Corrective Action by Commission.  (a)
 214-19  Notwithstanding Section 10.212(c), to the extent that the
 214-20  commission pays from the petroleum storage tank remediation fund or
 214-21  from sources other than the storage tank fund the expenses of the
 214-22  investigations, cleanups, and corrective action measures it
 214-23  performs, the commission may undertake those corrective action
 214-24  measures described in Section 10.212 in response to a release or a
 214-25  threatened release from an underground or aboveground storage tank
 214-26  under any circumstances in which the commission considers it
 214-27  necessary to protect the public health and safety or the
  215-1  environment.
  215-2        (b)  The state, the commission, and their agents or employees
  215-3  are not liable for damages arising out of the loss of access to or
  215-4  the use of real property or losses to a business located on the
  215-5  real property if those damages arise out of a delay in procuring
  215-6  services for corrective action, initiating corrective action, or
  215-7  completing corrective action on the property.  This subsection
  215-8  applies only to cases in which the commission undertakes corrective
  215-9  action.  (Sec. 26.3511, Water Code.)
 215-10        Sec. 10.214.  Owner or Operator Responsibility; Limitations
 215-11  on Fund Payments for Corrective Action.  (a)  The provisions of
 215-12  this subchapter relating to the groundwater protection cleanup
 215-13  program and to the petroleum storage tank remediation fund do not
 215-14  limit the responsibility or liability of an owner or operator of a
 215-15  petroleum storage tank required to take corrective action under an
 215-16  order issued in accordance with this subchapter by the commission.
 215-17        (b)  Funds from the petroleum storage tank remediation fund
 215-18  may not be used to pay, and the owner or operator of a petroleum
 215-19  storage tank ordered by the commission to take corrective action is
 215-20  responsible for payment of, the following:
 215-21              (1)  the owner or operator contribution described by
 215-22  Subsection (e);
 215-23              (2)  any expenses for corrective action that exceed $1
 215-24  million for each occurrence;
 215-25              (3)  any expenses for corrective action that are not
 215-26  covered by payment from the petroleum storage tank remediation fund
 215-27  under the rules or decisions of the commission under this
  216-1  subchapter; or
  216-2              (4)  any expenses for corrective action not ordered or
  216-3  agreed to by the commission.
  216-4        (c)  The owner or operator contribution under Subsection
  216-5  (b)(1) may include the costs of site assessment.
  216-6        (d)  Subsection (b)(1) does not prohibit payment from the
  216-7  petroleum storage tank remediation fund of expenses incurred by an
  216-8  eligible owner or operator as a result of an order issued by the
  216-9  commission under Section 10.222 if the commission finds that the
 216-10  eligible owner or operator is not responsible for the release from
 216-11  a petroleum storage tank.  An eligible owner or operator covered by
 216-12  this subsection is eligible for reimbursement from the petroleum
 216-13  storage tank remediation fund for the expenses incurred relating to
 216-14  corrective action that result from the order issued by the
 216-15  commission under Section 10.222.
 216-16        (e)  An owner or operator shall pay under Subsection (b)(1)
 216-17  the first expenses for corrective action taken for each occurrence
 216-18  as follows:
 216-19              (1)  a person who owns or operates 1,000 or more single
 216-20  petroleum storage tanks, the first $10,000;
 216-21              (2)  a person who owns or operates not fewer than 100
 216-22  or more than 999 single petroleum storage tanks, the first $5,000;
 216-23              (3)  a person who owns or operates not fewer than 13 or
 216-24  more than 99 single petroleum storage tanks, the first $2,500; and
 216-25              (4)  a person who owns or operates fewer than 13 single
 216-26  petroleum storage tanks, the first $1,000.  (Sec. 26.3512, Water
 216-27  Code.)
  217-1        Sec. 10.215.  Liability and Costs:  Multiple Owners and
  217-2  Operators.  (a)  This section applies at a site where the owner and
  217-3  the operator are different persons or at a site where there is more
  217-4  than one underground storage tank, petroleum storage tank, or a
  217-5  combination of both.
  217-6        (b)  Each owner and operator of an underground storage tank
  217-7  or petroleum storage tank at a site to which this section applies
  217-8  and from which a release or threatened release occurs is
  217-9  responsible for taking all corrective action at the site which may
 217-10  be required under this subchapter; provided that liability for the
 217-11  expenses of corrective action among owners and operators may be
 217-12  apportioned as provided by this section.
 217-13        (c)  All owners and operators of underground storage tanks
 217-14  and petroleum storage tanks at a site to which this section applies
 217-15  shall attempt to negotiate a settlement among themselves as to the
 217-16  apportionment of expenses.
 217-17        (d)  If the owners and operators reach a settlement as to the
 217-18  apportionment of expenses on or before the 30th day from the date
 217-19  on which the commission issues an order requiring corrective
 217-20  action, they shall submit the settlement to the commission for
 217-21  review.  If the commission approves the settlement, the parties
 217-22  shall be liable for the expenses of taking corrective action in
 217-23  accordance with the approved settlement.  Any action for breach of
 217-24  contract on the settlement agreement shall be to the district court
 217-25  of Travis County.
 217-26        (e)  If the parties cannot reach a settlement by the 30th day
 217-27  after the commission issues its order, the commission shall file
  218-1  suit in the district court of Travis County.  In its petition, the
  218-2  commission:
  218-3              (1)  shall request the court to apportion the expenses
  218-4  of corrective action among the owners and operators; and
  218-5              (2)  may request the court to award recovery of costs
  218-6  as provided by Section 10.221.  In the alternative, the commission
  218-7  may file an action for recovery of costs at a later time.
  218-8        (f)  Where the owner or operator can prove by a preponderance
  218-9  of the evidence that liability for the expenses of taking
 218-10  corrective action in response to a release or threatened release is
 218-11  divisible, that person shall be liable for the expenses only to the
 218-12  extent that the impact to the groundwater, surface water, or
 218-13  subsurface soils is attributable to the release or threatened
 218-14  release from his underground storage tank or petroleum storage
 218-15  tank.
 218-16        (g)  The court may allocate corrective action costs among
 218-17  liable parties, using such equitable factors as the court
 218-18  determines are appropriate if the evidence is insufficient to
 218-19  establish each party's divisible portion of the liability for
 218-20  corrective action under Subsection (f) and joint and several
 218-21  liability would impose undue hardship on the owners and operators.
 218-22        (h)  If the court apportions liability for the expenses of
 218-23  corrective action as provided by Subsection (f) or (g), cost
 218-24  recovery against the owners and operators shall be based on the
 218-25  apportionment.
 218-26        (i)  The commission may use the petroleum storage tank
 218-27  remediation fund to take corrective action at any time before,
  219-1  during, or after the conclusion of apportionment proceedings
  219-2  commenced under this section.
  219-3        (j)  Any owner or operator of a petroleum storage tank at the
  219-4  site may voluntarily undertake such corrective action at the site
  219-5  as the commission may agree to or require.  An owner or operator
  219-6  who undertakes corrective action pursuant to this subsection may
  219-7  have contribution against all other owners and operators with tanks
  219-8  at the site.
  219-9        (k)  Nothing in this section:
 219-10              (1)  prohibits the commission from using the storage
 219-11  tank fund to take corrective action as provided by this subchapter
 219-12  and having cost recovery for the storage tank fund; or
 219-13              (2)  affects the assessment of administrative penalties
 219-14  by the commission for violations of this subchapter or rules or
 219-15  orders adopted thereunder.
 219-16        (l)  At the request of the commission, the attorney general
 219-17  shall file suit on behalf of the commission to seek the relief
 219-18  provided by this section.  (Sec. 26.3513, Water Code.)
 219-19        Sec. 10.216.  Limits on Liability of Lender.  (a)  This
 219-20  section applies:
 219-21              (1)  to a lender that has a security or lienhold
 219-22  interest in an underground or aboveground storage tank, in real
 219-23  property on which an underground or aboveground storage tank is
 219-24  located, or in any other personal property attached to or located
 219-25  on property on which an underground or aboveground storage tank is
 219-26  located, as security for a loan to finance the acquisition or
 219-27  development of the property, to finance the removal, repair,
  220-1  replacement, or upgrading of the tank, or to finance the
  220-2  performance of corrective action in response to a release of a
  220-3  regulated substance from the tank; or
  220-4              (2)  to situations in which the real or personal
  220-5  property constitutes collateral for a commercial loan.
  220-6        (b)  A lender is not liable as an owner or operator under
  220-7  this subchapter solely because the lender holds indicia of
  220-8  ownership to protect a security or lienhold interest in property as
  220-9  described by Subsection (a).
 220-10        (c)  A lender that exercises control over a property before
 220-11  foreclosure to preserve the collateral or to retain revenues from
 220-12  the property for the payment of debt, or that otherwise exercises
 220-13  the control of a mortgagee in possession, is not liable as an owner
 220-14  or operator under this subchapter unless that control leads to
 220-15  action that the commission finds is causing or exacerbating
 220-16  contamination associated with the release of a regulated substance
 220-17  from a tank located on the property.
 220-18        (d)  A lender that has a bona fide security or lienhold
 220-19  interest in any real or personal property as described by
 220-20  Subsection (a) and that forecloses on or receives an assignment or
 220-21  deed in lieu of foreclosure and becomes the owner of that real or
 220-22  personal property is not liable as an owner or operator under this
 220-23  subchapter if the lender removes from service any underground or
 220-24  aboveground storage tanks on the property in accordance with
 220-25  commission rules and takes and with due diligence completes
 220-26  corrective action in response to any release from those tanks in
 220-27  accordance with commission rules.  A lender shall begin removal or
  221-1  corrective action as prescribed by the commission within a
  221-2  reasonable time, as set by the commission, after the date on which
  221-3  the lender becomes the owner of the property, but not to exceed 90
  221-4  days after that date.
  221-5        (e)  If a lender removes a tank from service or takes
  221-6  corrective action at any time before or after foreclosure, the
  221-7  lender shall perform corrective action in accordance with
  221-8  requirements adopted by the commission under this subchapter.
  221-9  (Sec. 26.3514, Water Code.)
 221-10        Sec. 10.217.  Limits on Liability of Corporate Fiduciary.
 221-11  (a)  A corporate fiduciary or its agent is not liable in an
 221-12  individual capacity as an owner or operator of an underground or
 221-13  aboveground storage tank under this subchapter solely because:
 221-14              (1)  the corporate fiduciary or its agent has legal
 221-15  title to real or personal property for purposes of administering a
 221-16  trust or estate of which the property is a part; or
 221-17              (2)  the corporate fiduciary or its agent does not have
 221-18  legal title to the real or personal property but operates or
 221-19  manages the property under the terms of an estate or trust of which
 221-20  the property is a part.
 221-21        (b)  Subsection (a) does not relieve a trust, estate, or
 221-22  beneficiary of any liability the trust, estate, or beneficiary may
 221-23  have as an owner or operator under this subchapter.  (Sec. 26.3515,
 221-24  Water Code.)
 221-25        Sec. 10.218.  Financial Responsibility.  (a)  The commission
 221-26  shall adopt requirements for maintaining evidence of financial
 221-27  responsibility for taking corrective action and compensating third
  222-1  parties for bodily injury and property damage caused by sudden and
  222-2  nonsudden accidental releases arising from operating an underground
  222-3  storage tank.
  222-4        (b)  An owner or operator of an underground storage tank may
  222-5  submit the registration certificate issued by the commission to the
  222-6  owner or operator under Section 10.207 to the United States
  222-7  Environmental Protection Agency as evidence of the owner's or
  222-8  operator's eligibility for funds for corrective action from the
  222-9  petroleum storage tank remediation fund.  (Sec.  26.352, Water
 222-10  Code.)
 222-11        Sec. 10.219.  Commission Orders.  (a)  The commission may
 222-12  issue orders to enforce this subchapter and rules adopted under
 222-13  this subchapter in accordance with the procedures applicable to
 222-14  orders issued under Section 2.210.
 222-15        (b)  The groundwater protection cleanup program established
 222-16  under Section 10.225 does not affect the commission's right to
 222-17  pursue enforcement orders with or without administrative penalties
 222-18  if an owner or operator violates this code, an order issued under
 222-19  this subchapter, or a rule adopted by the commission.  (Sec.
 222-20  26.353, Water Code.)
 222-21        Sec. 10.220.  Emergency Orders.  (a)  Notwithstanding any
 222-22  other provision of this chapter, the executive director may issue
 222-23  emergency orders to the persons identified in Subsection (e) if it
 222-24  appears that:
 222-25              (1)  there is an actual or threatened release of a
 222-26  regulated substance from an underground or aboveground storage
 222-27  tank; and
  223-1              (2)  the executive director determines that more
  223-2  expeditious corrective action than is otherwise provided for under
  223-3  this chapter is necessary to protect the public health and safety
  223-4  or the environment from harm.
  223-5        (b)  An order issued under Subsection (a) may prohibit a
  223-6  person from allowing or continuing the release or threatened
  223-7  release and require the person to take the actions necessary to
  223-8  eliminate the release or threatened release.
  223-9        (c)  An emergency order issued under this section shall be:
 223-10              (1)  mailed by certified mail, return receipt
 223-11  requested, to each person identified in the order;
 223-12              (2)  hand delivered to each person identified in the
 223-13  order; or
 223-14              (3)  on failure of service by certified mail or hand
 223-15  delivery, served by publication one time in the Texas Register and
 223-16  one time in a newspaper with general circulation in each county in
 223-17  which any of the persons had a last known address.
 223-18        (d)  An emergency order issued under this section does not
 223-19  require notice or an adjudicative hearing before its issuance.  If
 223-20  the executive director issues an order under this section, the
 223-21  commission shall fix a time and place for a hearing to affirm,
 223-22  modify, or set aside the emergency order issued by the executive
 223-23  director.  The hearing before the commission shall be held as soon
 223-24  as practicable after the issuance of the emergency order.
 223-25        (e)  The executive director may issue orders under this
 223-26  section to the following persons:
 223-27              (1)  the owner of an underground or aboveground storage
  224-1  tank; or
  224-2              (2)  the operator of an underground or aboveground
  224-3  storage tank.  (Sec.  26.354, Water Code.)
  224-4        Sec. 10.221.  Recovery of Costs.  (a)  If the commission has
  224-5  incurred any costs in undertaking corrective action or enforcement
  224-6  action with respect to the release of regulated substances from an
  224-7  underground or aboveground storage tank, the owner or the operator
  224-8  of the tank is liable to the state for all reasonable costs of
  224-9  those corrective and enforcement actions and for court costs and
 224-10  reasonable attorney's fees.
 224-11        (b)  An owner or operator of an underground or aboveground
 224-12  storage tank from which a regulated substance is released is liable
 224-13  to the state unless the release was caused by:
 224-14              (1)  an act of God;
 224-15              (2)  an act of war;
 224-16              (3)  the negligence of the State of Texas or the United
 224-17  States; or
 224-18              (4)  an act or omission of a third party.
 224-19        (c)  The state's right to recover under this section arises
 224-20  whether or not the commission:
 224-21              (1)  uses funds from the storage tank fund or the
 224-22  petroleum storage tank remediation fund; or
 224-23              (2)  receives or will receive funds from the state, the
 224-24  federal government, or any other source for the purpose of
 224-25  corrective action or enforcement.
 224-26        (d)  If the commission uses money from the petroleum storage
 224-27  tank remediation fund for corrective action or enforcement and if
  225-1  the costs are recovered under this section, the commission may not
  225-2  recover more than the amount of the applicable owner or operator
  225-3  contribution described by Section 10.214(e) from an eligible owner
  225-4  or operator for corrective action for each occurrence.
  225-5        (e)  An indemnification, hold harmless, or similar agreement
  225-6  or conveyance is not effective to transfer the liability imposed
  225-7  under this section from the owner or operator of an underground or
  225-8  aboveground storage tank or from a person who may be liable for a
  225-9  release or threat of release to any other person.  This section
 225-10  does not bar any agreement to insure, hold harmless, or indemnify a
 225-11  party to the agreement for any liability under this section.
 225-12        (f)  This section does not bar a cause of action that an
 225-13  owner or operator or any other person subject to liability under
 225-14  this section or a guarantor has or would have by reason of
 225-15  subrogation or otherwise against any person.
 225-16        (g)  At the request of the commission, the attorney general
 225-17  shall initiate court proceedings to recover costs under this
 225-18  section.
 225-19        (h)  Except as provided by Subsection (i), money recovered in
 225-20  a court proceeding under this section shall be deposited in the
 225-21  State Treasury to the credit of the storage tank fund.
 225-22        (i)  If the commission uses money from the petroleum storage
 225-23  tank remediation fund for corrective action or enforcement as
 225-24  provided by this subchapter, money recovered in a court proceeding
 225-25  under this section shall be deposited in the state treasury to the
 225-26  credit of the petroleum storage tank remediation fund.  (Sec.
 225-27  26.355, Water Code.)
  226-1        Sec. 10.222.  Inspections, Monitoring, and Testing.  (a)  For
  226-2  the purposes of developing or assisting in the development of a
  226-3  regulation, conducting a study, or enforcing this subchapter, an
  226-4  owner or operator of an underground or aboveground storage tank, on
  226-5  the request of the commission, shall:
  226-6              (1)  furnish information relating to the tank,
  226-7  including tank equipment and contents; and
  226-8              (2)  permit a designated agent or employee of the
  226-9  commission at all reasonable times to have access to and to copy
 226-10  all records relating to the tank.
 226-11        (b)  For the purposes of developing or assisting in the
 226-12  development of a regulation, conducting a study, or enforcing this
 226-13  subchapter, the commission, its designated agent, or employee may:
 226-14              (1)  enter at reasonable times an establishment or
 226-15  place in which an underground or aboveground storage tank is
 226-16  located;
 226-17              (2)  inspect and obtain samples of a regulated
 226-18  substance contained in the tank from any person; and
 226-19              (3)  conduct monitoring or testing of the tank,
 226-20  associated equipment, contents, or surrounding soils, air, surface
 226-21  water, or groundwater.
 226-22        (c)  The commission may order an owner or an operator of an
 226-23  underground or aboveground storage tank to conduct monitoring and
 226-24  testing if the commission finds that there is reasonable cause to
 226-25  believe that a release has occurred in the area in which the
 226-26  underground or aboveground storage tank is located.
 226-27        (d)  Each inspection made under this section must be begun
  227-1  and completed with reasonable promptness.  Before a designated
  227-2  agent or employee of the commission enters private property to
  227-3  carry out a function authorized under this section, the agent or
  227-4  employee must give reasonable notice and exhibit proper
  227-5  identification to the manager or owner of the property or to
  227-6  another appropriate person, as provided by commission rule.  The
  227-7  commission's designated agent or employee must observe the
  227-8  regulations of the establishment being inspected, including
  227-9  regulations regarding safety, internal security, and fire
 227-10  protection.  (Sec. 26.356, Water Code.)
 227-11        Sec. 10.223.  Standards and Rules.  (a)  Standards and rules
 227-12  concerning underground storage tanks adopted by the commission
 227-13  under this subchapter must be at least as stringent as the federal
 227-14  requirements under Title VI of the Hazardous and Solid Waste
 227-15  Amendments of 1984 (42 U.S.C. Section 6901 et seq.).
 227-16        (b)  The commission may not impose standards or rules more
 227-17  stringent than the federal requirements unless the commission
 227-18  determines that more stringent standards or rules are necessary to
 227-19  protect human health or the environment.  (Sec. 26.357, Water
 227-20  Code.)
 227-21        Sec. 10.224.  Eligible Owner or Operator.  (a)  The
 227-22  commission by rule shall establish criteria to be met by a person
 227-23  to qualify as an eligible owner or operator.
 227-24        (b)  To be an eligible owner or operator for purposes of this
 227-25  subchapter, a person must:
 227-26              (1)  be one of the following:
 227-27                    (A)  an owner or operator of a petroleum storage
  228-1  tank that is subject to regulation under this subchapter;
  228-2                    (B)  an owner of land that can clearly prove that
  228-3  the land has been contaminated by a release of petroleum products
  228-4  from a petroleum storage tank that is subject to regulation under
  228-5  this subchapter, whether or not the tank is still attached to that
  228-6  land; or
  228-7                    (C)  a lender that has a bona fide security or
  228-8  lienhold interest in or mortgage lien on any property contaminated
  228-9  by the release of petroleum products from a petroleum storage tank
 228-10  subject to regulation under this subchapter, or that forecloses on
 228-11  or receives an assignment or deed in lieu of foreclosure and
 228-12  becomes the owner of such property;
 228-13              (2)  be in compliance with this subchapter as
 228-14  determined by the commission; and
 228-15              (3)  meet qualifying criteria established by the
 228-16  commission under Subsection (a).
 228-17        (c)  The commission by rule may prescribe special conditions,
 228-18  consistent with the objective of formulating an overall plan for
 228-19  remediation of an entire contaminated site, for designating as an
 228-20  eligible owner:
 228-21              (1)  a person described by Subsection (b)(1)(B) who
 228-22  owns land contaminated by a release of petroleum products from a
 228-23  tank that was or is located on property the person does not own; or
 228-24              (2)  a lender described by Subsection (b)(1)(C).
 228-25        (d)  In determining whether an owner or operator is in
 228-26  compliance with this subchapter, the commission may consider such
 228-27  factors as the owner's or operator's compliance with tank
  229-1  registration, release detection and reporting, and corrective
  229-2  action requirements.
  229-3        (e)  The commission shall designate a person as an eligible
  229-4  owner or operator for purposes of this subchapter as provided by
  229-5  this section.
  229-6        (f)  The commission may not establish any requirements for
  229-7  eligibility under this section that are not consistent with this
  229-8  subchapter or with federal law and federal regulations.  (Sec.
  229-9  26.3571, Water Code.)
 229-10        Sec. 10.225.  Groundwater Protection Cleanup Program.
 229-11  (a)  The groundwater protection cleanup program is established, and
 229-12  the commission shall administer that program.
 229-13        (b)  In administering the program, the commission shall:
 229-14              (1)  negotiate with or direct responsible parties in
 229-15  site assessment and remediation matters;
 229-16              (2)  approve site-specific corrective action plans for
 229-17  each site;
 229-18              (3)  review and inspect site assessment and remedial
 229-19  activities and reports; and
 229-20              (4)  process claims for petroleum storage tank
 229-21  remediation fund disbursement.
 229-22        (c)  The commission shall adopt by rule criteria to be used
 229-23  to determine:
 229-24              (1)  the necessity for site assessment; and
 229-25              (2)  the nature of the site assessment required.  (Sec.
 229-26  26.3572, Water Code.)
 229-27        Sec. 10.226.  Petroleum Storage Tank Remediation Fund.
  230-1  (a)  The petroleum storage tank remediation fund is created in the
  230-2  state treasury.  The commission shall administer the fund in
  230-3  accordance with this subchapter.
  230-4        (b)  The petroleum storage tank remediation fund consists of
  230-5  money from:
  230-6              (1)  fees charged under Section 2.178;
  230-7              (2)  the interest and penalties for the late payment of
  230-8  the fee charged under Section 2.178; and
  230-9              (3)  funds received from cost recovery for corrective
 230-10  action and enforcement actions concerning petroleum storage tanks
 230-11  as provided by this subchapter.
 230-12        (c)  Interest earned on amounts in the petroleum storage tank
 230-13  remediation fund shall be credited to the general revenue fund.
 230-14        (d)  The commission may use the money in the petroleum
 230-15  storage tank remediation fund to pay:
 230-16              (1)  necessary expenses associated with the
 230-17  administration of the petroleum storage tank remediation fund and
 230-18  the groundwater protection cleanup program, not to exceed an amount
 230-19  equal to three percent of the gross receipts of that fund, provided
 230-20  that the increment between two and three percent of the gross
 230-21  receipts may be used only to pay administrative expenses associated
 230-22  with regulating petroleum storage tanks, reimbursing eligible
 230-23  owners and operators, and disposing of contaminated soils;
 230-24              (2)  expenses associated with investigation, cleanup,
 230-25  or corrective action measures performed in response to a release or
 230-26  threatened release from a petroleum storage tank, whether those
 230-27  expenses are incurred by the commission or pursuant to a contract
  231-1  between a contractor and an eligible owner or operator as
  231-2  authorized by this subchapter; and
  231-3              (3)  subject to the conditions of Subsection (e),
  231-4  expenses associated with investigation, cleanup, or corrective
  231-5  action measures performed in response to a release or threatened
  231-6  release of hydraulic fluid or spent oil from hydraulic lift systems
  231-7  or tanks located at a vehicle service and fueling facility and used
  231-8  as part of the operations of that facility.
  231-9        (e)  The commission may pay from the fund expenses under
 231-10  Subsection (d)(3),  whether or not the hydraulic fluid or spent oil
 231-11  contamination is mixed with petroleum product contamination, but
 231-12  the commission may require an eligible owner or operator to
 231-13  demonstrate that the release of spent oil is not mixed with any
 231-14  substance except:
 231-15              (1)  hydraulic fluid from a hydraulic lift system;
 231-16              (2)  petroleum products from a petroleum storage tank
 231-17  system; or
 231-18              (3)  another substance that was contained in the
 231-19  hydraulic lift system or the spent oil tank owned or operated by
 231-20  the person claiming reimbursement.
 231-21        (f)  The commission, in accordance with this subchapter and
 231-22  rules adopted under this subchapter, may:
 231-23              (1)  contract directly with a person to perform
 231-24  corrective action and pay the contractor from the petroleum storage
 231-25  tank remediation fund;
 231-26              (2)  reimburse an eligible owner or operator from the
 231-27  petroleum storage tank remediation fund for the expenses of
  232-1  corrective action performed on or after September 1, 1987; or
  232-2              (3)  pay the claim of a person who has contracted with
  232-3  an eligible owner or operator to perform corrective action with
  232-4  funds from the petroleum storage tank remediation fund.
  232-5        (g)  The commission shall administer the petroleum storage
  232-6  tank remediation fund and by rule adopt guidelines and procedures
  232-7  for the use of and eligibility for that fund as the commission
  232-8  finds necessary to:
  232-9              (1)  make the most efficient use of the money
 232-10  available; and
 232-11              (2)  provide the most effective protection to the
 232-12  environment and provide for the public health and safety.
 232-13        (h)  Consistent with the objectives provided under Subsection
 232-14  (g) and this subchapter, the commission may by rule adopt:
 232-15              (1)  guidelines the commission considers necessary for
 232-16  determining the amounts that may be paid from the petroleum storage
 232-17  tank remediation fund;
 232-18              (2)  guidelines concerning reimbursement for expenses
 232-19  incurred by an eligible owner or operator and covered under Section
 232-20  10.214(d); and
 232-21              (3)  minimum qualifications the commission considers
 232-22  necessary for a person with whom an eligible owner or operator may
 232-23  contract to participate in corrective action.
 232-24        (i)  The commission may implement a registration program for
 232-25  persons who contract to perform corrective action and may require
 232-26  registration and the use of registered contractors as a
 232-27  prerequisite to receiving money from the petroleum storage tank
  233-1  remediation fund for corrective action under this subchapter.
  233-2        (j)  The commission shall hear any complaint regarding the
  233-3  payment of a claim from the petroleum storage tank remediation fund
  233-4  arising from a contract between a contractor and an eligible owner
  233-5  or operator.  A hearing held under this subsection shall be
  233-6  conducted in accordance with the procedures for a contested case
  233-7  under the Administrative Procedure and Texas Register Act (Article
  233-8  6252-13a, Vernon's Texas Civil Statutes).  An appeal of a
  233-9  commission decision under this subsection shall be to the district
 233-10  court of Travis County and the substantial evidence rule applies.
 233-11        (k)  The commission shall satisfy a claim for payment that is
 233-12  eligible to be paid under this subchapter and the rules adopted
 233-13  under this subchapter made by a contractor, from the petroleum
 233-14  storage tank remediation fund as provided by Chapter 82, Acts of
 233-15  the 69th Legislature, Regular Session, 1985 (Article 601f, Vernon's
 233-16  Texas Civil Statutes), regardless of whether the commission:
 233-17              (1)  contracts directly for the goods or services; or
 233-18              (2)  pays a claim under a contract executed by a
 233-19  petroleum storage tank owner or operator.
 233-20        (l)  The commission may use any amount up to $1 million from
 233-21  the petroleum storage tank remediation fund to pay expenses
 233-22  associated with the corrective action for each occurrence taken in
 233-23  response to a release from a petroleum storage tank.
 233-24        (m)  The petroleum storage tank remediation fund may not be
 233-25  used for corrective action taken in response to a release from an
 233-26  underground storage tank if the sole or principal substance in the
 233-27  tank is a hazardous substance.
  234-1        (n)  The petroleum storage tank remediation fund may be used
  234-2  to pay for corrective action in response to a release whether the
  234-3  action is taken inside or outside of the boundaries of the property
  234-4  on which the leaking petroleum storage tank is located.
  234-5        (o)  The petroleum storage tank remediation fund may not be
  234-6  used to compensate third parties for bodily injury or property
  234-7  damage.  (Sec. 26.3573, Water Code.)
  234-8        Sec. 10.227.  Local Regulation or Ordinance.  This subchapter
  234-9  establishes a unified statewide program for underground and surface
 234-10  water protection, and any local regulation or ordinance is
 234-11  effective only to the extent the regulation or ordinance does not
 234-12  conflict with the standards adopted for the design, construction,
 234-13  installation, or operation of underground storage tanks under this
 234-14  subchapter.  (Sec. 26.359, Water Code.)
 234-15            (Sections 10.228-10.250 reserved for expansion)
 234-16                  SUBCHAPTER I.  CRIMINAL PROSECUTION
 234-17        Sec. 10.251.  Definitions.  As used in this subchapter:
 234-18              (1)  "Water" includes both surface and subsurface
 234-19  water, and "water in the state" means any water within the
 234-20  jurisdiction of the state.
 234-21              (2)  "Water pollution" means the alteration of the
 234-22  physical, chemical, or biological quality of, or the contamination
 234-23  of, any of the water in the state that renders the water harmful,
 234-24  detrimental, or injurious to humans, animal life, vegetation, or
 234-25  property or to public health, safety, or welfare, or impairs the
 234-26  usefulness or public enjoyment of the water for any lawful or
 234-27  reasonable purpose.
  235-1              (3)  "Person" means an individual, association,
  235-2  partnership, corporation, municipality, state or federal agency, or
  235-3  an agent or employee thereof.
  235-4              (4)  "Waste" means sewage, industrial waste, municipal
  235-5  waste, recreational waste, agricultural waste, or other waste
  235-6  defined in this section.
  235-7              (5)  "Sewage" means waterborne human or animal wastes
  235-8  from residences, buildings, industrial establishments, cities,
  235-9  towns, or other places together with groundwater infiltration and
 235-10  surface water with which it is commingled.
 235-11              (6)  "Municipal waste" means waterborne liquid,
 235-12  gaseous, solid, or other waste substances or a combination of these
 235-13  that result from any discharge arising within or emanating from, or
 235-14  subject to the control of, any municipal corporation, city, town,
 235-15  village, or municipality.
 235-16              (7)  "Recreational waste" means waterborne liquid,
 235-17  gaseous, solid, or other waste substances or a combination of these
 235-18  that arise within or emanate from any public or private park,
 235-19  beach, or recreational area.
 235-20              (8)  "Agricultural waste" means waterborne liquid,
 235-21  gaseous, solid, or other waste substances that arise from any type
 235-22  of public or private agricultural activity, including poisons and
 235-23  insecticides used in agricultural activities.
 235-24              (9)  "Industrial waste" means waterborne liquid,
 235-25  gaseous, solid, or other waste substances or a combination of these
 235-26  that result from any process of industry, manufacturing, trade, or
 235-27  business.
  236-1              (10)  "Other waste" means garbage, refuse, decayed
  236-2  wood, sawdust, shavings, bark, sand, lime, cinders, ashes, offal,
  236-3  oil, tar, dyestuffs, acids, chemicals, salt water, or any other
  236-4  substance, other than sewage, industrial waste, municipal waste,
  236-5  recreational waste, or agricultural waste that may cause the
  236-6  quality of water in the state to be impaired.
  236-7              (11)  "To discharge" includes to deposit, conduct,
  236-8  drain, emit, throw, run, allow to seep, or otherwise release or
  236-9  dispose of.  (Sec. 26.211, Water Code.)
 236-10        Sec. 10.252.  Criminal Offenses and Penalties.  (a)  A person
 236-11  commits an offense if the person, acting intentionally or knowingly
 236-12  with respect to the person's conduct, discharges or permits the
 236-13  discharge of a waste or pollutant into or adjacent to water in the
 236-14  state that causes or threatens to cause water pollution unless the
 236-15  waste or pollutant is discharged in strict compliance with all
 236-16  required permits or with a valid and currently effective order
 236-17  issued or rule adopted by the appropriate regulatory agency.
 236-18        (b)  An offense under Subsection (a) is punishable for an
 236-19  individual by:
 236-20              (1)  a fine of not less than $1,000 or more than
 236-21  $25,000;
 236-22              (2)  confinement in jail not to exceed one year; or
 236-23              (3)  both fine and confinement.
 236-24        (c)  An offense under Subsection (a) is punishable for a
 236-25  person other than an individual by a fine of not less than $1,000
 236-26  or more than $50,000.
 236-27        (d)  A person commits an offense if the person, acting
  237-1  intentionally or knowingly with respect to the person's conduct,
  237-2  discharges or permits the discharge of a waste or pollutant from a
  237-3  point source in violation of this chapter or of a rule, permit, or
  237-4  order of the appropriate regulatory agency.
  237-5        (e)  An offense under Subsection (d) is punishable for an
  237-6  individual by:
  237-7              (1)  a fine of not less than $1,000 or more than
  237-8  $25,000;
  237-9              (2)  confinement in jail not to exceed one year; or
 237-10              (3)  both fine and confinement.
 237-11        (f)  An offense under Subsection (d) is punishable for a
 237-12  person other than an individual by a fine of not less than $1,000
 237-13  or more than $50,000.
 237-14        (g)  A person commits an offense if the person discharges or
 237-15  permits the discharge of any waste or pollutant into any water in
 237-16  the state that causes or threatens to cause water pollution unless
 237-17  the waste or pollutant is discharged in strict compliance with all
 237-18  required permits or with a valid and currently effective order
 237-19  issued or rule adopted by the appropriate regulatory agency.
 237-20        (h)  An offense under Subsection (g) is punishable by a fine
 237-21  of not less than $100 or more than $10,000.
 237-22        (i)  An offense under Subsection (g) may be prosecuted
 237-23  without alleging or proving any culpable mental state.
 237-24        (j)  A person commits an offense if the person intentionally
 237-25  or knowingly tampers with, modifies, disables, or fails to use
 237-26  pollution control or monitoring devices, systems, methods, or
 237-27  practices required by this chapter or a rule, permit, or order of
  238-1  the commission or one of its predecessor agencies unless done in
  238-2  strict compliance with the rule, permit, or order.
  238-3        (k)  An offense under Subsection (j) is punishable for an
  238-4  individual by:
  238-5              (1)  a fine of not less than $500 or more than
  238-6  $100,000;
  238-7              (2)  confinement in jail not to exceed one year; or
  238-8              (3)  both fine and confinement.
  238-9        (l)  An offense under Subsection (j) is punishable for a
 238-10  person other than an individual by a fine of not less than $1,000
 238-11  or more than $250,000.
 238-12        (m)  A person commits an offense if the person intentionally
 238-13  or knowingly makes or causes to be made a false material statement,
 238-14  representation, or certification in, or omits or causes to be
 238-15  omitted material information from, an application, notice, record,
 238-16  report, plan, or other document, including monitoring device data,
 238-17  filed or required to be maintained by this chapter, or by a rule,
 238-18  permit, or order of the appropriate regulatory agency.
 238-19        (n)  An offense under Subsection (m) is punishable for an
 238-20  individual by:
 238-21              (1)  a fine of not less than $500 or more than
 238-22  $100,000;
 238-23              (2)  confinement in jail not to exceed one year; or
 238-24              (3)  both fine and confinement.
 238-25        (o)  An offense under Subsection (m) is punishable for a
 238-26  person other than an individual by a fine of not less than $1,000
 238-27  or more than $250,000.
  239-1        (p)  A person commits an offense if the person intentionally
  239-2  or knowingly fails to notify or report to the commission as
  239-3  required under this chapter or by a rule, permit, or order of the
  239-4  appropriate regulatory agency.
  239-5        (q)  An offense under Subsection (p) is punishable for an
  239-6  individual by:
  239-7              (1)  a fine of not less than $500 or more than
  239-8  $100,000;
  239-9              (2)  confinement in jail not to exceed one year; or
 239-10              (3)  both fine and confinement.
 239-11        (r)  An offense under Subsection (p) is punishable for a
 239-12  person other than an individual by a fine of not less than $1,000
 239-13  or more than $250,000.
 239-14        (s)  A person commits an offense if the person intentionally
 239-15  or knowingly fails to pay a fee required by this chapter or by a
 239-16  rule, permit, or order of the appropriate regulatory agency.
 239-17        (t)  An offense under Subsection (s) is punishable for an
 239-18  individual by:
 239-19              (1)  a fine not to exceed twice the amount of the
 239-20  required fee;
 239-21              (2)  confinement in jail not to exceed 90 days; or
 239-22              (3)  both fine and confinement.
 239-23        (u)  An offense under Subsection (s) is punishable for a
 239-24  person other than an individual by a fine not to exceed twice the
 239-25  amount of the required fee.
 239-26        (v)  If it is shown at the trial of the defendant that the
 239-27  defendant has previously been convicted of the same offense under
  240-1  this section, the maximum punishment is doubled with respect to
  240-2  both the fine and confinement.
  240-3        (w)  Each day that a person engages in conduct proscribed by
  240-4  this section constitutes a separate offense.
  240-5        (x)  A fine recovered through a prosecution brought under
  240-6  this section shall be divided equally between the state and a local
  240-7  government significantly involved in prosecuting the case, except
  240-8  that if the court determines that the state or the local government
  240-9  bore significantly more of the burden of prosecuting the case, it
 240-10  may apportion up to 75 percent of the fine to the government that
 240-11  predominantly prosecuted the case.  (Sec. 26.2121, Water Code.)
 240-12        Sec. 10.253.  Endangerment Offenses.  (a)  A person commits
 240-13  an offense if the person, acting intentionally or knowingly,
 240-14  discharges or permits the discharge of a waste or pollutant into or
 240-15  adjacent to water in the state and thereby knowingly places any
 240-16  other person in imminent danger of death or serious bodily injury,
 240-17  unless the discharge is made in strict compliance with all required
 240-18  permits or with a valid and currently effective order issued or
 240-19  rule adopted by the appropriate regulatory agency.
 240-20        (b)  An offense under Subsection (a) is punishable for an
 240-21  individual by:
 240-22              (1)  a fine of not less than $2,500 or more than
 240-23  $250,000;
 240-24              (2)  imprisonment not to exceed 10 years; or
 240-25              (3)  both fine and imprisonment.
 240-26        (c)  An offense under Subsection (a) is punishable for a
 240-27  person other than an individual by a fine of not less than $5,000
  241-1  or more than $500,000.
  241-2        (d)  If an offense committed by an individual under
  241-3  Subsection (a) results in death or serious bodily injury to any
  241-4  person, the individual may be punished by:
  241-5              (1)  a fine of not less than $5,000 or more than
  241-6  $500,000;
  241-7              (2)  imprisonment for not less than five years or more
  241-8  than 20 years; or
  241-9              (3)  both fine and imprisonment.
 241-10        (e)  If an offense committed by a person other than an
 241-11  individual under Subsection (a) results in death or serious bodily
 241-12  injury to any person, the person may be punished by a fine of not
 241-13  less than $10,000 or more than $1 million.
 241-14        (f)  For purposes of Subsection (a), in determining whether a
 241-15  defendant who is an individual knew that the violation placed
 241-16  another person in imminent danger of death or serious bodily
 241-17  injury, the defendant is responsible only for the defendant's
 241-18  actual awareness or actual belief possessed.  Knowledge possessed
 241-19  by a person other than the defendant may not be attributed to the
 241-20  defendant.  To prove a defendant's actual knowledge, circumstantial
 241-21  evidence may be used, including evidence that the defendant took
 241-22  affirmative steps to be shielded from relevant information.
 241-23        (g)  A person commits an offense if the person, acting
 241-24  intentionally or knowingly with respect to the person's conduct,
 241-25  discharges or permits the discharge of a waste or pollutant into or
 241-26  adjacent to water in the state, thereby placing any other person in
 241-27  imminent danger of death or serious bodily injury, unless the
  242-1  discharge is made in strict compliance with all required permits or
  242-2  with a valid and currently effective order issued or rule adopted
  242-3  by the appropriate regulatory agency.
  242-4        (h)  An offense under Subsection (g) is punishable for an
  242-5  individual by:
  242-6              (1)  a fine of not less than $1,500 or more than
  242-7  $150,000;
  242-8              (2)  imprisonment not to exceed five years; or
  242-9              (3)  both fine and imprisonment.
 242-10        (i)  An offense under Subsection (g) is punishable for a
 242-11  person other than an individual by a fine of not less than $3,000
 242-12  or more than $300,000.
 242-13        (j)  If an offense committed by an individual under
 242-14  Subsection (g) results in death or serious bodily injury to any
 242-15  person, the individual may be punished by:
 242-16              (1)  a fine of not less than $3,000 or more than
 242-17  $300,000;
 242-18              (2)  imprisonment for not less than three years or more
 242-19  than 10 years; or
 242-20              (3)  both fine and imprisonment.
 242-21        (k)  If an offense under Subsection (g) committed by a person
 242-22  other than an individual results in death or serious bodily injury
 242-23  to any person, the person convicted of the offense may be punished
 242-24  by a fine of not less than $6,000 or more than $600,000.
 242-25        (l)  A person commits an offense if the person, acting
 242-26  recklessly with respect to the person's conduct, discharges or
 242-27  permits the discharge of a waste or pollutant into or adjacent to
  243-1  water in the state, thereby placing any other person in imminent
  243-2  danger of death or serious bodily injury, unless the discharge is
  243-3  made in strict compliance with all required permits or with a valid
  243-4  and currently effective order issued or rule adopted by the
  243-5  appropriate regulatory agency.
  243-6        (m)  An offense under Subsection (l) is punishable for an
  243-7  individual by:
  243-8              (1)  a fine of not less than $1,000 or more than
  243-9  $100,000;
 243-10              (2)  confinement in jail not to exceed one year; or
 243-11              (3)  both fine and confinement.
 243-12        (n)  An offense under Subsection (l) is punishable for a
 243-13  person other than an individual by a fine of not less than $2,500
 243-14  or more than $250,000.
 243-15        (o)  If an offense committed by an individual under
 243-16  Subsection (l) results in death or serious bodily injury to any
 243-17  person, the individual may be punished by:
 243-18              (1)  a fine of not less than $2,000 or more than
 243-19  $200,000;
 243-20              (2)  confinement of not less than one year or more than
 243-21  five years; or
 243-22              (3)  both fine and confinement.
 243-23        (p)  If an offense committed by a person other than an
 243-24  individual under Subsection (l) results in death or serious bodily
 243-25  injury to any person, the person may be punished by a fine of not
 243-26  less than $5,000 or more than $500,000.
 243-27        (q)  It is an affirmative defense to prosecution under this
  244-1  section that the conduct charged was freely consented to by the
  244-2  person endangered and that the danger and conduct charged were
  244-3  reasonably foreseeable hazards of the person's occupation,
  244-4  business, or profession or a medical treatment or medical or
  244-5  scientific experimentation conducted by professionally approved
  244-6  methods and the person endangered had been made aware of the risks
  244-7  involved before giving consent.
  244-8        (r)  Each day that a person engages in conduct proscribed by
  244-9  this section constitutes a separate offense.
 244-10        (s)  A fine recovered through a prosecution brought under
 244-11  this subchapter shall be divided equally between the state and any
 244-12  local government significantly involved in prosecuting the case,
 244-13  except that if the court determines that the state or the local
 244-14  government bore significantly more of the burden of prosecuting the
 244-15  case, it may apportion up to 75 percent of the fine to the
 244-16  government that predominantly prosecuted the case.  (Sec. 26.2125,
 244-17  Water Code.)
 244-18        Sec. 10.254.  Affirmative Defense.  It is an affirmative
 244-19  defense to prosecution under Sections 10.252 and 10.253 that the
 244-20  person charged was an employee who was carrying out the person's
 244-21  normal activities and was acting under orders from the person's
 244-22  employer, unless the person charged engaged in knowing and wilful
 244-23  violations.  (Sec. 26.2126, Water Code.)
 244-24        Sec. 10.255.  Notice of Criminal Conviction.  (a)  In
 244-25  addition to a sentence that may be imposed under this subchapter, a
 244-26  person other than an individual that has been adjudged guilty of an
 244-27  offense may be ordered by the court to give notice of the
  245-1  conviction to any person the court considers appropriate.
  245-2        (b)  On conviction under this subchapter, the clerk of the
  245-3  court in which the conviction is returned shall forward a copy of
  245-4  the judgment to the commission.  (Sec. 26.2131, Water Code.)
  245-5        Sec. 10.256.  Criminal Penalty for Violation of Private
  245-6  Sewage Facility Order.  (a)  A person who violates any rule entered
  245-7  by the commission under Section 10.107 or order adopted by a county
  245-8  under Section 10.129 is guilty of a misdemeanor and on conviction
  245-9  is punishable by a fine of not less than $10 nor more than $200.
 245-10  Each day that a violation occurs constitutes a separate offense.
 245-11        (b)  Jurisdiction for prosecution of a suit under this
 245-12  section is in the justice of the peace courts.
 245-13        (c)  Venue for prosecution of a suit under this section is in
 245-14  the justice of the peace precinct in which the violation is alleged
 245-15  to have occurred.  (Sec. 26.214, Water Code.)
 245-16        Sec. 10.257.  PEACE OFFICERS.  For purposes of this
 245-17  subchapter, the authorized agents and employees of the Parks and
 245-18  Wildlife Department are constituted peace officers.  These agents
 245-19  and employees are empowered to enforce the provisions of this
 245-20  subchapter the same as any other peace officer, and for such
 245-21  purpose shall have the powers and duties of peace officers as set
 245-22  forth in the Code of Criminal Procedure, 1965, as amended.  (Sec.
 245-23  26.215, Water Code.)
 245-24        Sec. 10.258.  ACT OF GOD, WAR, ETC.  Any waste discharge
 245-25  otherwise punishable under this subchapter which is caused by an
 245-26  act of God, war, riot, or other catastrophe is not a violation of
 245-27  this subchapter.  (Sec. 26.216, Water Code.)
  246-1        Sec. 26.259.  Venue.  An offense under this subchapter may be
  246-2  prosecuted in a county in which an element of the offense was
  246-3  committed or a county to which or through which the discharge,
  246-4  waste, or pollutant was transported.  (Sec. 26.2171, Water Code.)
  246-5        Sec. 10.260.  Allegations.  In alleging the name of a
  246-6  defendant private corporation, it is sufficient to state in the
  246-7  complaint, indictment, or information the corporate name or to
  246-8  state any name or designation by which the corporation is known or
  246-9  may be identified.  It is not necessary to allege that the
 246-10  defendant was lawfully incorporated.  (Sec. 26.218, Water Code.)
 246-11        Sec. 10.261.  Summons and Arrest; Service.  (a)  After a
 246-12  complaint is filed or an indictment or information presented
 246-13  against a private corporation under the provisions of this
 246-14  subchapter, the court or clerk shall issue a summons to the
 246-15  corporation.  The summons shall be in the same form as a capias
 246-16  except that:
 246-17              (1)  it shall summon the corporation to appear before
 246-18  the court named at the place stated in the summons;
 246-19              (2)  it shall be accompanied by a certified copy of the
 246-20  complaint, indictment, or information; and
 246-21              (3)  it shall provide that the corporation appear
 246-22  before the court named at or before 10 a.m. of the Monday next
 246-23  after the expiration of 20 days after it is served with summons,
 246-24  except when service is made upon the Secretary of State, in which
 246-25  instance the summons shall provide that the corporation appear
 246-26  before the court named at or before 10 a.m. of the Monday next
 246-27  after the expiration of 30 days after the Secretary of State is
  247-1  served with summons.
  247-2        (b)  No individual may be arrested upon a complaint,
  247-3  indictment, or information against a private corporation.
  247-4        (c)  A peace officer shall serve a summons on a private
  247-5  corporation by personally delivering a copy of it to the
  247-6  corporation's registered agent for service.  If a registered agent
  247-7  has not been designated or cannot with reasonable diligence be
  247-8  found at the registered office, the peace officer shall serve the
  247-9  summons by personally delivering a copy of it to the president or a
 247-10  vice-president of the corporation.
 247-11        (d)  If the peace officer certifies on the return that he
 247-12  diligently but unsuccessfully attempted to effect service under
 247-13  Subsection (c) or if the corporation is a foreign corporation that
 247-14  has no certificate of authority, he shall serve the summons on the
 247-15  Secretary of State by personally delivering a copy of it to him or
 247-16  to the assistant secretary of state or to any clerk in charge of
 247-17  the corporation department of his office.  On receipt of the
 247-18  summons copy, the Secretary of State shall immediately forward it
 247-19  by certified or registered mail, return receipt requested,
 247-20  addressed to the defendant corporation at its registered office or,
 247-21  if it is a foreign corporation, at its principal office in the
 247-22  state or country under whose law it was incorporated.
 247-23        (e)  The Secretary of State shall keep a permanent record of
 247-24  the date and time of receipt and his disposition of each summons
 247-25  served under Subsection (d) together with the return receipt.
 247-26  (Secs. 26.219, 26.220, Water Code.)
 247-27        Sec. 10.262.  Arraignment and Pleadings.  In all criminal
  248-1  actions instituted against a private corporation under the
  248-2  provisions of this subchapter:
  248-3              (1)  appearance is for the purpose of arraignment; and
  248-4              (2)  the corporation has 10 full days after the day the
  248-5  arraignment takes place and before the day the trial begins to file
  248-6  written pleadings.  (Sec.  26.221, Water Code.)
  248-7        Sec. 10.263.  Appearance.  (a)  A defendant private
  248-8  corporation appears through counsel or its representative.
  248-9        (b)  If a private corporation does not appear in response to
 248-10  summons or appears but fails or refuses to plead, it is considered
 248-11  to be present in person for all purposes, and the court shall enter
 248-12  a plea of not guilty in its behalf and may proceed with trial,
 248-13  judgment, and sentencing.
 248-14        (c)  After appearing and entering a plea in response to
 248-15  summons, if a private corporation is absent without good cause at
 248-16  any time during later proceedings, it is considered to be present
 248-17  in person for all purposes, and the court may proceed with trial,
 248-18  judgment, or sentencing.  (Sec. 26.222, Water Code.)
 248-19        Sec. 10.264.  Fine Treated as Judgment in Civil Action.  If a
 248-20  person other than an individual is found guilty of a violation of
 248-21  this subchapter and a fine imposed, the fine shall be entered and
 248-22  docketed by the clerk of the court as a judgment against the
 248-23  person, and the fine shall be of the same force and effect and be
 248-24  enforced against the person in the same manner as if the judgment
 248-25  were recovered in a civil action.  (Sec. 26.223, Water Code.)
 248-26        Sec. 10.265.  Cumulative Provisions.  Nothing in this
 248-27  subchapter repeals or amends any of the provisions of Subchapters A
  249-1  through H, Chapter 13, or Subchapter D, Chapter 91, Natural
  249-2  Resource Code, but this subchapter is cumulative of those acts and
  249-3  they remain in full force and effect.  (Sec.  26.224, Water Code.)
  249-4        Sec. 10.266.  Effect on Certain Other Laws.  Conduct
  249-5  punishable as an offense under this subchapter that is also
  249-6  punishable under another law may be prosecuted under either law.
  249-7  (Sec.  26.225, Water Code.)
  249-8        Sec. 10.267.  Defense Excluded.  It is not a defense to
  249-9  prosecution under this subchapter that the person did not know or
 249-10  was not aware of a rule, order, or statute.  (Sec. 26.226, Water
 249-11  Code.)
 249-12        Sec. 10.268.  Testimonial Immunity.  A party to an offense
 249-13  under this subchapter may be required to furnish evidence or
 249-14  testify about the offense.  Evidence or testimony required to be
 249-15  furnished under this subchapter or information directly or
 249-16  indirectly derived from that evidence or testimony may not be used
 249-17  against the witness in a criminal case, except in a prosecution for
 249-18  aggravated perjury or contempt.  (Sec. 26.227, Water Code.)
 249-19                       CHAPTER 11.  WATER RIGHTS
 249-20                   SUBCHAPTER A.  GENERAL PROVISIONS
 249-21        Sec. 11.001.  Vested Rights Not Affected.  (a)  Nothing in
 249-22  this code affects vested private rights to the use of water, except
 249-23  to the extent that provisions of Subchapter G of this chapter might
 249-24  affect these rights.
 249-25        (b)  This code does not recognize any riparian right in the
 249-26  owner of any land the title to which passed out of the State of
 249-27  Texas after July 1, 1895.  (Sec. 11.001, Water Code.)
  250-1        Sec. 11.002.  Definitions.  In this chapter:
  250-2              (1)  "Beneficial use" means use of the amount of water
  250-3  which is economically necessary for a purpose authorized by this
  250-4  chapter, when reasonable intelligence and reasonable diligence are
  250-5  used in applying the water to that purpose.
  250-6              (2)  "Water right" means a right acquired under the
  250-7  laws of this state to impound, divert, or use state water.
  250-8              (3)  "Appropriator" means a person who has made
  250-9  beneficial use of any water in a lawful manner under the provisions
 250-10  of any act of the legislature before the enactment of Chapter 171,
 250-11  General Laws, Acts of the 33rd Legislature, 1913, as amended, and
 250-12  who has filed with the State Board of Water Engineers a record of
 250-13  his appropriation as required by the 1913 Act, as amended, or a
 250-14  person who makes or has made beneficial use of any water within the
 250-15  limitations of a permit lawfully issued by the commission or one of
 250-16  its predecessors.
 250-17              (4)  "Conservation" means:
 250-18                    (A)  the development of water resources; and
 250-19                    (B)  those practices, techniques, and
 250-20  technologies that will reduce the consumption of water, reduce the
 250-21  loss or waste of water, improve the efficiency in the use of water,
 250-22  or increase the recycling and reuse of water so that a water supply
 250-23  is made available for future or alternative uses.  (Sec. 11.002,
 250-24  Water Code.)
 250-25        Sec. 11.003.  Streams That Form Boundaries Included.  This
 250-26  chapter applies to all streams or other sources of water supply
 250-27  lying upon or forming a part of the boundaries of this state.
  251-1  (Sec. 11.003, Water Code.)
  251-2        Sec. 11.004.  Commission to Receive Certified Copies of
  251-3  Judgments, Etc.  When any court of record renders a judgment,
  251-4  decree, or order affecting the title to any water right, claim,
  251-5  appropriation, or irrigation facility or affecting any matter over
  251-6  which the commission is given supervision by law, the clerk of the
  251-7  court shall immediately transmit to the commission a certified copy
  251-8  of the judgment, decree, or order.  (Sec. 11.004, Water Code.)
  251-9        Sec. 11.005.  Applicability to Works Under Federal
 251-10  Reclamation Act.  This chapter applies to the construction,
 251-11  maintenance, and operation of irrigation works constructed in this
 251-12  state under the federal reclamation act, as amended (43 U.S.C. Sec.
 251-13  371 et seq.), to the extent that this chapter is not inconsistent
 251-14  with the federal act or the regulations made under that act by the
 251-15  secretary of the interior.  (Sec. 11.005, Water Code.)
 251-16        Sec. 11.006.  Power to Condemn Works.  (a)  The commission
 251-17  may condemn existing works if their existence or operation may, in
 251-18  the judgment of the commission, become a public menace or dangerous
 251-19  to life and property.
 251-20        (b)  In all cases of proposed condemnation, the commission
 251-21  shall notify the interested party of the contemplated action and
 251-22  shall specify a time for him to appear and be heard.  (Sec. 12.015,
 251-23  Water Code.)
 251-24        Sec. 11.007.  Federal Projects.  (a)  In this section:
 251-25              (1)  "Federal project" means an engineering undertaking
 251-26  or work to construct, enlarge, or extend a dam, lake, reservoir, or
 251-27  other water-storage or flood-control work or a drainage,
  252-1  reclamation, or canalization undertaking or any combination of
  252-2  these financed in whole or in part with funds of the United States.
  252-3              (2)  "Engineering report" means the plans, data,
  252-4  profiles, maps, estimates, and drawings prepared in connection with
  252-5  a federal project.
  252-6              (3)  "Federal agency" means the Corps of Engineers of
  252-7  the United States Army, the Bureau of Reclamation of the Department
  252-8  of Interior, the Soil Conservation Service of the Department of
  252-9  Agriculture, the United States Section of the International
 252-10  Boundary and Water Commission, or any other agency of the United
 252-11  States, the function of which includes the conservation,
 252-12  development, retardation by impounding, control, or study of the
 252-13  water resources of Texas or the United States.
 252-14        (b)  When the governor receives an engineering report
 252-15  submitted by a federal agency seeking the governor's approval of a
 252-16  federal project, the governor shall immediately forward the report
 252-17  to the board for its study concerning the feasibility of the
 252-18  federal project.
 252-19        (c)  The board shall hold a public hearing to receive the
 252-20  views of persons and groups who might be affected by the proposed
 252-21  federal project.  The board shall publish notice of the time, date,
 252-22  place, nature, and purpose of the public hearing once each week for
 252-23  two consecutive weeks before the date stated in the notice in a
 252-24  newspaper having general circulation in the section of the state
 252-25  where the federal project is to be located or the work done.
 252-26        (d)  After hearing all the evidence both for and against
 252-27  approval of the federal project, the board shall enter its order
  253-1  approving or disapproving the feasibility of the federal project,
  253-2  and the order shall include the board's reasons for approval or
  253-3  disapproval.
  253-4        (e)  In determining feasibility, the board shall consider,
  253-5  among other relevant factors:
  253-6              (1)  the effect of the federal project on water users
  253-7  on the stream as certified by the commission;
  253-8              (2)  the public interest to be served;
  253-9              (3)  the development of damsites to the optimum
 253-10  potential for water conservation;
 253-11              (4)  the integration of the federal project with other
 253-12  water conservation activities;
 253-13              (5)  the protection of the state's interests in its
 253-14  water resources; and
 253-15              (6)  the engineering practicality of the federal
 253-16  project, including cost of construction, operation, and
 253-17  maintenance.
 253-18        (f)  The board shall forward to the governor a certified copy
 253-19  of its order.  The board's finding that the federal project is
 253-20  either feasible or not feasible is final, and the governor shall
 253-21  notify the federal agency that the federal project has been either
 253-22  approved or disapproved.
 253-23        (g)  The provisions of this section do not apply to the state
 253-24  soil conservation board as long as that board is designated by the
 253-25  governor as the authorized state agency having supervisory
 253-26  responsibility to approve or disapprove of projects designed to
 253-27  effectuate watershed-protection and flood-prevention programs
  254-1  initiated in cooperation with the United States Department of
  254-2  Agriculture.  (Sec. 12.051, Water Code.)
  254-3        Sec. 11.008.  Dam Safety.  (a)  The commission shall make and
  254-4  enforce rules and orders and shall perform all other acts necessary
  254-5  to provide for the safe construction, maintenance, repair, and
  254-6  removal of dams located in this state.
  254-7        (b)  Rules and orders made by the commission shall be made
  254-8  after proper notice and hearing as provided in the rules of the
  254-9  commission.
 254-10        (c)  If the owner of a dam that is required to be
 254-11  constructed, reconstructed, repaired, or removed in order to comply
 254-12  with the rules and orders promulgated under Subsection (a) wilfully
 254-13  fails or refuses to comply within the 30-day period following the
 254-14  date of the commission's order to do so or if a person wilfully
 254-15  fails to comply with any rule or other order issued by the
 254-16  commission under this section within the 30-day period following
 254-17  the effective date of the order, he is liable to a penalty of not
 254-18  more than $1,000 a day for each day he continues to violate this
 254-19  section.  The state may recover the penalty by suit brought for
 254-20  that purpose in the district court of Travis County.
 254-21        (d)  If the commission determines that the existing condition
 254-22  of the dam is creating or will cause extensive or severe property
 254-23  damage or economic loss to others or is posing an immediate and
 254-24  serious threat to human life or health and that other procedures
 254-25  available to the commission to remedy or prevent the occurrence of
 254-26  the situation will result in unreasonable delay, the commission may
 254-27  issue an emergency order, either mandatory or prohibitory in
  255-1  nature, directing the owner of a dam to repair, modify, maintain,
  255-2  dewater, or remove the dam which the commission determines is
  255-3  unsafe.  The emergency order may be issued without notice to the
  255-4  dam owner or with notice the commission considers practicable under
  255-5  the circumstances.  The notice does not have to comply with the
  255-6  Administrative Procedure and Texas Register Act, as amended
  255-7  (Article 6252-13a, Vernon's Texas Civil Statutes).
  255-8        (e)  If the commission issues an emergency order under
  255-9  authority of this section without notice to the dam owner, the
 255-10  commission shall fix a time and place for a hearing which shall be
 255-11  held as soon as practicable to affirm, modify, or set aside the
 255-12  emergency order.  The notice does not have to comply with the
 255-13  Administrative Procedure and Texas Register Act, as amended
 255-14  (Article 6252-13a, Vernon's Texas Civil Statutes).  If the nature
 255-15  of the commission's action requires further proceedings, those
 255-16  proceedings shall be conducted as appropriate under the
 255-17  Administrative Procedure and Texas Register Act, as amended
 255-18  (Article 6252-13a, Vernon's Texas Civil Statutes).
 255-19        (f)  Nothing in this section or in rules or orders made by
 255-20  the commission shall be construed to relieve an owner or operator
 255-21  of a dam or reservoir of the legal duties, obligations, or
 255-22  liabilities incident to ownership or operation.  (Sec. 12.052,
 255-23  Water Code.)
 255-24            (Sections 11.009-11.020 reserved for expansion)
 255-25                 SUBCHAPTER B.  RIGHTS IN STATE WATER
 255-26        Sec. 11.021.  State Water.  (a)  The water of the ordinary
 255-27  flow, underflow, and tides of every flowing river, natural stream,
  256-1  and lake, and of every bay or arm of the Gulf of Mexico, and the
  256-2  storm water, floodwater, and rainwater of every river, natural
  256-3  stream, canyon, ravine, depression, and watershed in the state is
  256-4  the property of the state.
  256-5        (b)  Water imported from any source outside the boundaries of
  256-6  the state for use in the state and which is transported through the
  256-7  beds and banks of any navigable stream within the state or by
  256-8  utilizing any facilities owned or operated by the state is the
  256-9  property of the state.  (Sec. 11.021, Water Code.)
 256-10        Sec. 11.022.  Acquisition of Right to Use State Water.  The
 256-11  right to the use of state water may be acquired by appropriation in
 256-12  the manner and for the purposes provided in this chapter.  When the
 256-13  right to use state water is lawfully acquired, it may be taken or
 256-14  diverted from its natural channel.  (Sec. 11.022, Water Code.)
 256-15        Sec. 11.023.  Purposes for Which Water May be Appropriated.
 256-16  (a)  State water may be appropriated, stored, or diverted for:
 256-17              (1)  domestic and municipal uses, including water for
 256-18  sustaining human life and the life of domestic animals;
 256-19              (2)  industrial uses, meaning processes designed to
 256-20  convert materials of a lower order of value into forms having
 256-21  greater usability and commercial value, including the development
 256-22  of power by means other than hydroelectric;
 256-23              (3)  irrigation;
 256-24              (4)  mining and recovery of minerals;
 256-25              (5)  hydroelectric power;
 256-26              (6)  navigation;
 256-27              (7)  recreation and pleasure;
  257-1              (8)  stock raising;
  257-2              (9)  public parks; and
  257-3              (10)  game preserves.
  257-4        (b)  State water also may be appropriated, stored, or
  257-5  diverted for any other beneficial use.
  257-6        (c)  Unappropriated storm water and floodwater may be
  257-7  appropriated to recharge underground freshwater bearing sands and
  257-8  aquifers in the portion of the Edwards underground reservoir
  257-9  located within Kinney, Uvalde, Medina, Bexar, Comal, and Hays
 257-10  counties if it can be established by expert testimony that an
 257-11  unreasonable loss of state water will not occur and that the water
 257-12  can be withdrawn at a later time for application to a beneficial
 257-13  use.  The normal or ordinary flow of a stream or watercourse may
 257-14  never be appropriated, diverted, or used by a permittee for this
 257-15  recharge purpose.
 257-16        (d)  When it is put or allowed to sink into the ground, water
 257-17  appropriated under Subsection (c) loses its character and
 257-18  classification as storm water or floodwater and is considered
 257-19  percolating groundwater.
 257-20        (e)  The amount of water appropriated for each purpose
 257-21  mentioned in this section shall be specifically appropriated for
 257-22  that purpose, subject to the preferences prescribed in Section
 257-23  11.024.
 257-24        (f)  The water of any arm, inlet, or bay of the Gulf of
 257-25  Mexico may be changed from salt water to sweet or fresh water and
 257-26  held or stored by dams, dikes, or other structures and may be taken
 257-27  or diverted for any purpose authorized by this chapter.
  258-1  (Sec. 11.023, Water Code.)
  258-2        Sec. 11.024.  Appropriation:  Preferences.  In order to
  258-3  conserve and properly utilize state water, the public welfare
  258-4  requires not only recognition of beneficial uses but also a
  258-5  constructive public policy regarding the preferences between these
  258-6  uses, and it is therefore declared to be the public policy of this
  258-7  state that in appropriating state water preference shall be given
  258-8  to the following uses in the order named:
  258-9              (1)  domestic and municipal uses, including water for
 258-10  sustaining human life and the life of domestic animals, it being
 258-11  the public policy of the state and for the benefit of the greatest
 258-12  number of people that in the appropriation of water as herein
 258-13  defined, the appropriation of water for domestic and municipal uses
 258-14  shall be and remain superior to the rights of the state to
 258-15  appropriate the same for all other purposes;
 258-16              (2)  industrial uses, meaning processes designed to
 258-17  convert materials of a lower order of value into forms having
 258-18  greater usability and commercial value, including the development
 258-19  of power by means other than hydroelectric;
 258-20              (3)  irrigation;
 258-21              (4)  mining and recovery of minerals;
 258-22              (5)  hydroelectric power;
 258-23              (6)  navigation;
 258-24              (7)  recreation and pleasure; and
 258-25              (8)  other beneficial uses.  (Sec. 11.024, Water Code.)
 258-26        Sec. 11.025.  Scope of Appropriative Right.  A right to use
 258-27  state water under a permit or a certified filing is limited not
  259-1  only to the amount specifically appropriated but also to the amount
  259-2  which is being or can be beneficially used for the purposes
  259-3  specified in the appropriation, and all water not so used is
  259-4  considered not appropriated.  (Sec. 11.025, Water Code.)
  259-5        Sec. 11.026.  Perfection of an Appropriation.  No right to
  259-6  appropriate water is perfected unless the water has been
  259-7  beneficially used for a purpose stated in the original declaration
  259-8  of intention to appropriate water or stated in a permit issued by
  259-9  the commission or one of its predecessors.  (Sec. 11.026, Water
 259-10  Code.)
 259-11        Sec. 11.027.  Rights Between Appropriators.  As between
 259-12  appropriators, the first in time is the first in right.
 259-13  (Sec. 11.027, Water Code.)
 259-14        Sec. 11.028.  Exception.  Any appropriation made after May
 259-15  17, 1931, for any purpose other than domestic or municipal use is
 259-16  subject to the right of any city or town to make further
 259-17  appropriations of the water for domestic or municipal use without
 259-18  paying for the water.  However, this section does not apply to any
 259-19  stream which constitutes or defines the international boundary
 259-20  between the United States of America and the Republic of Mexico.
 259-21  (Sec. 11.028, Water Code.)
 259-22        Sec. 11.029.  Title to Appropriation by Limitation.  When an
 259-23  appropriator from a source of water supply has used water under the
 259-24  terms of a certified filing or a permit for a period of three
 259-25  years, he acquires title to his appropriation by limitation against
 259-26  any other claimant of water from the same source of water supply
 259-27  and against any riparian owner on the same source of water supply.
  260-1  (Sec. 11.029, Water Code.)
  260-2        Sec. 11.030.  Forfeiture of Appropriation.  If any lawful
  260-3  appropriation or use of state water is wilfully abandoned during
  260-4  any three successive years, the right to use the water is forfeited
  260-5  and the water is again subject to appropriation.  (Sec. 11.030,
  260-6  Water Code.)
  260-7        Sec. 11.031.  Annual Report.  (a)  Not later than March 1 of
  260-8  each year, each person who has a water right issued by the
  260-9  commission or who impounded, diverted, or otherwise used state
 260-10  water during the preceding calendar year shall submit a written
 260-11  report to the commission on a form prescribed by the commission.
 260-12  The report shall contain all information required by the commission
 260-13  to aid in administering the water law and in making inventory of
 260-14  the state's water resources.  However, with the exception of those
 260-15  persons who hold water rights, no report is required of persons who
 260-16  take water solely for domestic or livestock purposes.
 260-17        (b)  A person who fails to file an annual report with the
 260-18  commission as required by this section is liable to a penalty of
 260-19  $25, plus $1 per day for each day he fails to file the statement
 260-20  after March 1.  However, the maximum penalty under this section is
 260-21  $150.  The state may sue to recover the penalty.
 260-22        (c)  The commission may waive the requirements of Subsection
 260-23  (a) for a person who has a water right or uses state water in an
 260-24  area of the state where watermaster operations are established.
 260-25  (Sec. 11.031, Water Code.)
 260-26        Sec. 11.032.  Records.  (a)  A person who owns and operates a
 260-27  system of waterworks used for a purpose authorized by this code
  261-1  shall keep a detailed record of daily operations so that the
  261-2  quantity of water taken or diverted each calendar year can be
  261-3  determined.
  261-4        (b)  If the water is used for irrigation, the record must
  261-5  show the number of acres irrigated, the character of the crops
  261-6  grown, and the yield per acre.  No survey is required to determine
  261-7  the exact number of acres irrigated.  (Sec. 11.032, Water Code.)
  261-8        Sec. 11.033.  Eminent Domain.  The right to take water
  261-9  necessary for domestic and municipal supply purposes is primary and
 261-10  fundamental, and the right to recover from other uses water which
 261-11  is essential to domestic and municipal supply purposes is paramount
 261-12  and unquestioned in the policy of the state.  All political
 261-13  subdivisions of the state and constitutional governmental agencies
 261-14  exercising delegated legislative powers have the power of eminent
 261-15  domain to be exercised as provided by law for domestic, municipal,
 261-16  and manufacturing uses and for other purposes authorized by this
 261-17  code, including the irrigation of land for all requirements of
 261-18  agricultural employment.  (Sec. 11.033, Water Code.)
 261-19        Sec. 11.034.  Reservoir Site:  Land and Rights-of-Way.  An
 261-20  appropriator who is authorized to construct a dam or reservoir is
 261-21  granted the right-of-way, not to exceed 100 feet wide, and the
 261-22  necessary area for the site, over any public school land,
 261-23  university land, or asylum land of this state and the use of the
 261-24  rock, gravel, and timber on the site and right-of-way for
 261-25  construction purposes, after paying compensation as determined by
 261-26  the commission.  An appropriator may acquire the reservoir site and
 261-27  rights-of-way over private land by contract.  (Sec. 11.034, Water
  262-1  Code.)
  262-2        Sec. 11.035.  Condemnation of Private Property.  (a)  An
  262-3  appropriator may obtain rights-of-way over private land and may
  262-4  obtain the land necessary for pumping plants, intakes, headgates,
  262-5  and storage reservoirs by condemnation.
  262-6        (b)  The party obtaining private property by condemnation
  262-7  shall cause damages to be assessed and paid for as provided by the
  262-8  statutes of this state relating to eminent domain.
  262-9        (c)  If the party exercising the power granted by this
 262-10  section is not a corporation, district, city, or town, he shall
 262-11  apply to the commission for the condemnation.
 262-12        (d)  The executive director shall have the proposed
 262-13  condemnation investigated.  After the investigation, the commission
 262-14  may give notice to the party owning the land proposed to be
 262-15  condemned and hold a hearing on the proposed condemnation.
 262-16        (e)  If after a hearing the commission determines that the
 262-17  condemnation is necessary, the executive director may institute
 262-18  condemnation proceedings in the name of the State of Texas for the
 262-19  use and benefit of the party who applied for the condemnation and
 262-20  all others similarly situated.
 262-21        (f)  The parties at whose instance a condemnation suit is
 262-22  instituted shall pay the costs of the suit and condemnation in
 262-23  proportion to the benefits received by each party as fixed by the
 262-24  commission.  Before using any of the condemned rights or property,
 262-25  a party receiving the rights or property shall pay the amount of
 262-26  costs fixed by the commission.
 262-27        (g)  If, after the costs of the condemnation proceedings have
  263-1  been paid, a party seeks to take the benefits of the condemnation
  263-2  proceedings, he shall apply to the commission for the benefits.
  263-3  The commission may grant the application and fix the fees and
  263-4  charges to be paid by the applicant.  (Sec. 11.035, Water Code.)
  263-5        Sec. 11.036.  Conserved or Stored Water:  Supply Contract.
  263-6  (a)  A person, association of persons, corporation, or water
  263-7  improvement or irrigation district having in possession and control
  263-8  any storm water, floodwater, or rainwater that is conserved or
  263-9  stored as authorized by this chapter may contract to supply the
 263-10  water to any person, association of persons, corporation, or water
 263-11  improvement or irrigation district having the right to acquire use
 263-12  of the water.
 263-13        (b)  The price and terms of the contract shall be just and
 263-14  reasonable and without discrimination, and the contract is subject
 263-15  to the same revision and control as provided in this code for other
 263-16  water rates and charges.  If any person uses the stored or
 263-17  conserved water without first entering into a contract with the
 263-18  party that conserved or stored it, the user shall pay for the use
 263-19  at a rate determined by the commission to be just and reasonable,
 263-20  subject to court review as in other cases.  (Sec. 11.036, Water
 263-21  Code.)
 263-22        Sec. 11.037.  Water Suppliers:  Rules and Regulations.
 263-23  (a)  Every person, association of persons, corporation, or
 263-24  irrigation district conserving or supplying water for any of the
 263-25  purposes authorized by this chapter shall make and publish
 263-26  reasonable rules and regulations relating to:
 263-27              (1)  the method of supply;
  264-1              (2)  the use and distribution of the water; and
  264-2              (3)  the procedure for applying for the water and for
  264-3  paying for it.
  264-4        (b)  Each person, association of persons, corporation, and
  264-5  district authorized by law to carry out irrigation powers that is
  264-6  conserving or supplying water for any of the purposes authorized by
  264-7  this chapter may make and publish reasonable rules relating to
  264-8  water conservation, as defined by Section 11.002.  (Sec. 11.037,
  264-9  Water Code.)
 264-10        Sec. 11.038.  Rights of Owners of Land Adjoining Canal, Etc.
 264-11  (a)  A person who owns or holds a possessory interest in land
 264-12  adjoining or contiguous to a canal, ditch, flume, lateral, dam,
 264-13  reservoir, or lake constructed and maintained under the provisions
 264-14  of this chapter and who has secured a right to the use of water in
 264-15  the canal, ditch, flume, lateral, dam, reservoir, or lake is
 264-16  entitled to be supplied from the canal, ditch, flume, lateral, dam,
 264-17  reservoir, or lake with water for irrigation of the land and for
 264-18  mining, milling, manufacturing, development of power, and stock
 264-19  raising, in accordance with the terms of his contract.
 264-20        (b)  If the person, association of persons, or corporation
 264-21  owning or controlling the water and the person who owns or holds a
 264-22  possessory interest in the adjoining land cannot agree on a price
 264-23  for a permanent water right or for the use of enough water for
 264-24  irrigation of the person's land or for mining, milling,
 264-25  manufacturing, development of power, or stock raising, then the
 264-26  party owning or controlling the water, if he has any water not
 264-27  contracted to others, shall furnish the water necessary for these
  265-1  purposes at reasonable and nondiscriminatory prices.  (Sec. 11.038,
  265-2  Water Code.)
  265-3        Sec. 11.039.  Distribution of Water During Shortage.  (a)  If
  265-4  a shortage of water in a water supply results from drouth,
  265-5  accident, or other cause, the water to be distributed shall be
  265-6  divided among all customers pro rata, according to the amount each
  265-7  may be entitled to, so that preference is given to no one and
  265-8  everyone suffers alike.
  265-9        (b)  Nothing in Subsection (a) precludes the person,
 265-10  association of persons, or corporation owning or controlling the
 265-11  water from supplying water to a person who has a prior vested right
 265-12  to the water under the laws of this state.  (Sec. 11.039, Water
 265-13  Code.)
 265-14        Sec. 11.040.  Permanent Water Right.  (a)  A permanent water
 265-15  right is an easement and passes with the title to land.
 265-16        (b)  A written instrument conveying a permanent water right
 265-17  may be recorded in the same manner as any other instrument relating
 265-18  to a conveyance of land.
 265-19        (c)  The owner of a permanent water right is entitled to use
 265-20  water according to the terms of his contract.  If there is no
 265-21  contract, the owner is entitled to use water at a just, reasonable,
 265-22  and nondiscriminatory price.  (Sec. 11.040, Water Code.)
 265-23        Sec. 11.041.  Denial of Water:  Complaint.  (a)  Any person
 265-24  entitled to receive or use water from any canal, ditch, flume,
 265-25  lateral, dam, reservoir, or lake or from any conserved or stored
 265-26  supply may present to the commission a written petition showing:
 265-27              (1)  that he is entitled to receive or use the water;
  266-1              (2)  that he is willing and able to pay a just and
  266-2  reasonable price for the water;
  266-3              (3)  that the party owning or controlling the water
  266-4  supply has water not contracted to others and available for the
  266-5  petitioner's use; and
  266-6              (4)  that the party owning or controlling the water
  266-7  supply fails or refuses to supply the available water to the
  266-8  petitioner, or that the price or rental demanded for the available
  266-9  water is not reasonable and just or is discriminatory.
 266-10        (b)  If the petition is accompanied by a deposit of $25, the
 266-11  executive director shall have a preliminary investigation of the
 266-12  complaint made and determine whether or not there are probable
 266-13  grounds for the complaint.
 266-14        (c)  If, after preliminary investigation, the executive
 266-15  director determines that probable grounds exist for the complaint,
 266-16  the commission shall enter an order setting a time and place for a
 266-17  hearing on the petition.
 266-18        (d)  The commission may require the complainant to make an
 266-19  additional deposit or execute a bond satisfactory to the commission
 266-20  in an amount fixed by the commission conditioned on the payment of
 266-21  all costs of the proceeding.
 266-22        (e)  At least 20 days before the date set for the hearing,
 266-23  the commission shall transmit by registered mail a certified copy
 266-24  of the petition and a certified copy of the hearing order to the
 266-25  person against whom the complaint is made.
 266-26        (f)  The commission shall hold a hearing on the complaint at
 266-27  the time and place stated in the order.  It may hear evidence
  267-1  orally or by affidavit in support of or against the complaint, and
  267-2  it may hear arguments.  On completion of the hearing, the
  267-3  commission shall render a written decision.
  267-4        (g)  If, after the preliminary investigation, the executive
  267-5  director determines that no probable grounds exist for the
  267-6  complaint, the executive director shall dismiss the complaint.  The
  267-7  commission may either return the deposit or pay it into the state
  267-8  treasury.  (Sec. 11.041, Water Code.)
  267-9        Sec. 11.042.  Delivering Water Down Banks and Beds.  Under
 267-10  rules prescribed by the commission, a person, association of
 267-11  persons, corporation, or water improvement or irrigation district
 267-12  supplying stored or conserved water under contract as provided in
 267-13  this chapter may use the bank and bed of any flowing natural stream
 267-14  in the state to convey the water from the place of storage to the
 267-15  place of use or to the diversion plant of the appropriator.  The
 267-16  commission shall prescribe rules for this purpose.  (Sec. 11.042,
 267-17  Water Code.)
 267-18        Sec. 11.043.  Recordation of Conveyance of Irrigation Work.
 267-19  (a)  A conveyance of a ditch, canal, or reservoir or other
 267-20  irrigation work or an interest in such an irrigation work must be
 267-21  executed and acknowledged in the same manner as a conveyance of
 267-22  real estate.  Such a conveyance must be recorded in the deed
 267-23  records of the county in which the ditch, canal, or reservoir is
 267-24  located.
 267-25        (b)  If a conveyance of property covered by Subsection (a)
 267-26  is not made in the prescribed manner, it is null and void against
 267-27  subsequent purchasers in good faith and for valuable consideration.
  268-1  (Sec. 11.043, Water Code.)
  268-2        Sec. 11.044.  Roads and Highways.  (a)  An appropriator has
  268-3  the right to construct ditches, canals, or pipelines along or
  268-4  across all roads and highways necessary for the construction of
  268-5  waterworks.  Bridges, culverts, or siphons shall be constructed at
  268-6  all road and highway crossings as necessary to prevent any
  268-7  impairment of the uses of the road or highway.  Approval of the
  268-8  construction plans and specifications shall be obtained from the
  268-9  owner of the road or highway prior to the installation of
 268-10  conveyance facilities.
 268-11        (b)  If any public road, highway, or public bridge is located
 268-12  on the ground necessary for a damsite, reservoir, or lake, the
 268-13  commissioners court shall change the road and remove the bridge so
 268-14  that it does not interfere with the construction of the proposed
 268-15  dam, reservoir, or lake.  The party desiring to construct the dam,
 268-16  reservoir, or lake shall pay the expense of moving the bridge or
 268-17  roadway.  (Sec. 11.044, Water Code.)
 268-18        Sec. 11.045.  Ditches and Canals.  An appropriator is
 268-19  entitled to construct ditches and canals along or across any stream
 268-20  of water.  (Sec. 11.045, Water Code.)
 268-21        Sec. 11.046.  Return Unused Water.  A person who takes or
 268-22  diverts water from a running stream for the purposes authorized by
 268-23  this code shall conduct surplus water back to the stream from which
 268-24  it was taken if the water can be returned by gravity flow and it is
 268-25  reasonably practicable to do so.  (Sec. 11.046, Water Code.)
 268-26        Sec. 11.047.  Failure to Fence.  If a person, association of
 268-27  persons, corporation, or water improvement or irrigation district
  269-1  that owns or controls a ditch, canal, reservoir, dam, or lake does
  269-2  not keep it securely fenced, there is no cause of action against
  269-3  the owner of livestock that trespass.  (Sec. 11.047, Water Code.)
  269-4        Sec. 11.048.  Cost of Maintaining Irrigation Ditch.  (a)  If
  269-5  an irrigation ditch is owned or used by two or more persons, mutual
  269-6  or cooperative companies, or corporations, each party who has an
  269-7  interest in the ditch shall pay his proportionate share of the cost
  269-8  of operating and maintaining the ditch.
  269-9        (b)  If a person who owns a joint interest in a ditch refuses
 269-10  to do or to pay for his proportionate share of the work that is
 269-11  reasonably necessary for the proper maintenance and operation of
 269-12  the ditch, the other owners may, after giving him 10 days' written
 269-13  notice, proceed themselves to do his share of the necessary work
 269-14  and recover from him the reasonable expense or value of the work or
 269-15  labor performed.  The action for the cost of the work may be
 269-16  brought in any court having jurisdiction over the amount in
 269-17  controversy.  (Sec. 11.048, Water Code.)
 269-18        Sec. 11.049.  Examination and Survey.  A person may make any
 269-19  necessary examination and survey in order to select the most
 269-20  advantageous sites for a reservoir and rights-of-way to be used for
 269-21  any of the purposes authorized by this chapter, and for this
 269-22  purpose a person may enter the land or water of any other person.
 269-23  (Sec. 11.049, Water Code.)
 269-24        Sec. 11.050.  Tidewater Gates, Etc.  (a)  An appropriator
 269-25  authorized to take water for irrigation, subject to the laws of the
 269-26  United States and the regulations made under its authority, may
 269-27  construct gates or breakwaters, dams, or dikes with gates, in
  270-1  waters wholly in this state, as necessary to prevent pollution of
  270-2  the fresh water of any river, bayou, or stream due to the ebb and
  270-3  flow of the tides of the Gulf of Mexico.
  270-4        (b)  The work shall be done in such a manner that navigation
  270-5  of vessels on the stream is not obstructed, and where any gate is
  270-6  used, the appropriator shall at all times keep a competent person
  270-7  at the gate to allow free navigation.
  270-8        (c)  A dam, dike, or breakwater constructed under this
  270-9  section may not be placed at any point except where Gulf tides ebb
 270-10  and flow and may not be constructed so as to obstruct the flow of
 270-11  fresh water to any appropriator or riparian owner downstream.
 270-12  (Sec. 11.050, Water Code.)
 270-13        Sec. 11.051.  Irrigation:  Lien on Crops.  (a)  A person who
 270-14  constructs a ditch, canal, dam, lake, or reservoir for the purpose
 270-15  of irrigation and who leases, rents, furnishes, or supplies water
 270-16  to any person for irrigation, with or without a contract, has a
 270-17  preference lien superior to every other lien on the irrigated
 270-18  crops.  However, when any irrigation district or conservation and
 270-19  reclamation district obtains a water supply under contract with the
 270-20  United States, the board of directors of the district, by
 270-21  resolution entered in its minutes, with the consent of the
 270-22  secretary of the interior, may waive the preference lien in whole
 270-23  or in part.
 270-24        (b)  To enforce the lien, the lienholder has all the rights
 270-25  and remedies prescribed by Subchapters A and B, Chapter 54, and
 270-26  Sections 91.004 and 91.005, Property Code.  (Sec. 11.051, Water
 270-27  Code.)
  271-1        Sec. 11.052.  Activities Under the Federal Reclamation Act.
  271-2  The Secretary of the Interior of the United States is authorized to
  271-3  conduct any activities in this state necessary to perform his
  271-4  duties under the federal reclamation act, as amended (43 U.S.C.
  271-5  Section 371 et seq.).  (Sec. 11.052, Water Code.)
  271-6            (Sections 11.053-11.080 reserved for expansion)
  271-7         SUBCHAPTER C.  UNLAWFUL USE, DIVERSION, WASTE, ETC.
  271-8        Sec. 11.081.  Unlawful Use of State Water.  (a)  No person
  271-9  may wilfully take, divert, or appropriate any state water for any
 271-10  purpose without first complying with all applicable requirements of
 271-11  this chapter.
 271-12        (b)  A person who violates any provision of this section is
 271-13  guilty of a misdemeanor and upon conviction is punishable by a fine
 271-14  of not more than $100 or by confinement in the county jail for not
 271-15  more than six months or by both.
 271-16        (c)  A person commits a separate offense each day he
 271-17  continues to take, divert, or appropriate water in violation of
 271-18  this section.
 271-19        (d)  Possession of state water when the right to its use has
 271-20  not been acquired according to the provisions of this chapter is
 271-21  prima facie evidence of a violation of this section.  (Sec. 11.081,
 271-22  Water Code.)
 271-23        Sec. 11.082.  Unlawful Use:  Civil Penalty.  (a)  A person
 271-24  who wilfully takes, diverts, or appropriates state water without
 271-25  complying with the applicable requirements of this chapter is also
 271-26  liable to a civil penalty of not more than $1,000 for each day he
 271-27  continues the taking, diversion, or appropriation.
  272-1        (b)  The state may recover the penalties prescribed in
  272-2  Subsection (a) by suit brought for that purpose in a court of
  272-3  competent jurisdiction.
  272-4        (c)  An action to collect the penalty provided in this
  272-5  section must be brought within two years from the date of the
  272-6  alleged violation.  (Sec. 11.082, Water Code.)
  272-7        Sec. 11.083.  Other Unlawful Taking.  (a)  No person may
  272-8  wilfully open, close, change, or interfere with any headgate or
  272-9  water box without lawful authority.
 272-10        (b)  No person may wilfully use water or conduct water
 272-11  through his ditch or upon his land unless he is entitled to do so.
 272-12        (c)  A person who violates any provision of this section is
 272-13  guilty of a misdemeanor and upon conviction is punishable by a fine
 272-14  of not less than $10 nor more than $1,000 or by confinement in the
 272-15  county jail for not more than six months.
 272-16        (d)  The possession or use of water on his land by a person
 272-17  not entitled to the water by the provisions of this code is prima
 272-18  facie evidence of a violation of this section.  (Sec. 11.083, Water
 272-19  Code.)
 272-20        Sec. 11.084.  Sale of Permanent Water Right Without a Permit.
 272-21  (a)  No person may sell or offer to sell a permanent water right
 272-22  unless he has perfected a right to appropriate state water by a
 272-23  certified filing, or unless he has obtained a permit from the
 272-24  commission, authorizing the use of the water for the purposes for
 272-25  which the permanent water right is conveyed.
 272-26        (b)  A person who violates Subsection (a) is guilty of a
 272-27  misdemeanor and upon conviction is punishable by a fine of not less
  273-1  than $100 nor more than $1,000 or by confinement in the county jail
  273-2  for not more than one year or by both.  (Sec. 11.084, Water Code.)
  273-3        Sec. 11.085.  Interwatershed Transfers.  (a)  No person may
  273-4  take or divert any of the water of the ordinary flow, underflow, or
  273-5  storm flow of any stream, watercourse, or watershed in this state
  273-6  into any other natural stream, watercourse, or watershed to the
  273-7  prejudice of any person or property situated within the watershed
  273-8  from which the water is proposed to be taken or diverted.
  273-9        (b)  No person may transfer water from one watershed to
 273-10  another without first applying for and receiving a permit from the
 273-11  commission to do so.  Before issuing such a permit, the commission
 273-12  shall hold a hearing to determine the rights that might be affected
 273-13  by the transfer.  The commission shall give notice and hold the
 273-14  hearing in the manner prescribed by its procedural rules.
 273-15        (c)  A person who takes or diverts water in violation of this
 273-16  section is guilty of a misdemeanor and upon conviction is
 273-17  punishable by a fine of not less than $100 nor more than $500 or by
 273-18  confinement in the county jail for not more than six months.
 273-19        (d)  A person commits a separate offense each day he
 273-20  continues to take or divert water in violation of this section.
 273-21  (Sec. 11.085, Water Code.)
 273-22        Sec. 11.086.  Overflow Caused by Diversion of Water.  (a)  No
 273-23  person may divert or impound the natural flow of surface waters in
 273-24  this state, or permit a diversion or impounding by him to continue,
 273-25  in a manner that damages the property of another by the overflow of
 273-26  the water diverted or impounded.
 273-27        (b)  A person whose property is injured by an overflow of
  274-1  water caused by an unlawful diversion or impounding has remedies at
  274-2  law and in equity and may recover damages occasioned by the
  274-3  overflow.
  274-4        (c)  The prohibition of Subsection (a) does not in any way
  274-5  affect the construction and maintenance of levees and other
  274-6  improvements to control floods, overflows, and freshets in rivers,
  274-7  creeks, and streams or the construction of canals for conveying
  274-8  water for irrigation or other purposes authorized by this code.
  274-9  However, this subsection does not authorize any person to construct
 274-10  a canal, lateral canal, or ditch that obstructs a river, creek,
 274-11  bayou, gully, slough, ditch, or other well-defined natural
 274-12  drainage.
 274-13        (d)  Where gullies or sloughs have cut away or intersected
 274-14  the banks of a river or creek to allow floodwaters from the river
 274-15  or creek to overflow the land nearby, the owner of the flooded land
 274-16  may fill the mouth of the gullies or sloughs up to the height of
 274-17  the adjoining banks of the river or creek without liability to
 274-18  other property owners.  (Sec. 11.086, Water Code.)
 274-19        Sec. 11.087.  Diversion of Water on International Stream.
 274-20  (a)  When storm water or floodwater is released from a dam or
 274-21  reservoir on an international stream and the water is designated
 274-22  for use or storage downstream by a specified user who is legally
 274-23  entitled to receive it, no other person may store, divert,
 274-24  appropriate, or use the water or interfere with its passage
 274-25  downstream.
 274-26        (b)  The commission may make and enforce rules and orders to
 274-27  implement the provisions of this section, including rules and
  275-1  orders designed to:
  275-2              (1)  establish an orderly system for water releases and
  275-3  diversions in order to protect vested rights and to avoid the loss
  275-4  of released water;
  275-5              (2)  prescribe the time that releases of water may
  275-6  begin and end;
  275-7              (3)  determine the proportionate quantities of the
  275-8  released water in transit and the water that would have been
  275-9  flowing in the stream without the addition of the released water;
 275-10              (4)  require each owner or operator of a dam or
 275-11  reservoir on the stream between the point of release and the point
 275-12  of destination to allow free passage of the released water in
 275-13  transit; and
 275-14              (5)  establish other requirements the commission
 275-15  considers necessary to effectuate the purposes of this section.
 275-16        (c)  Orders made by the commission to effectuate its rules
 275-17  under this section need not be published, but the commission shall
 275-18  transmit a copy of every such order by certified mail to each
 275-19  diverter of water and to each reservoir owner on the stream between
 275-20  the point of release and the point of destination of the released
 275-21  water as shown by the records of the commission.
 275-22        (d)  A person who violates any provision of this section is
 275-23  guilty of a misdemeanor and upon conviction is punishable by a fine
 275-24  of not more than $100 or by confinement in the county jail for not
 275-25  more than six months or by both.  A person commits a separate
 275-26  offense each day he continues to violate this section.
 275-27  (Sec. 11.087, Water Code.)
  276-1        Sec. 11.0871.  Temporary Diversion of Water on International
  276-2  Stream.  (a)  The commission may authorize, under conditions stated
  276-3  in an order, a watermaster to provide for the temporary diversion
  276-4  and use by holders of water rights of storm water or floodwater
  276-5  that spills from dams and reservoirs on an international stream and
  276-6  otherwise would flow into the Gulf of Mexico without opportunity
  276-7  for beneficial use.
  276-8        (b)  In an order made by the commission under this section,
  276-9  the commission may not discriminate between holders of water rights
 276-10  from an international stream except to the extent necessary to
 276-11  protect the holders of water rights from the same source of supply.
 276-12        (c)  The commission shall give notice by mail to holders of
 276-13  water rights from an international stream and shall hold an
 276-14  evidentiary hearing before entry of an order under this section.
 276-15  (Sec. 11.0871, Water Code.)
 276-16        Sec. 11.088.  Destruction of Waterworks.  (a)  No person may
 276-17  wilfully cut, dig, break down, destroy, or injure or open a gate,
 276-18  bank, embankment, or side of any ditch, canal, reservoir, flume,
 276-19  tunnel or feeder, pump or machinery, building, structure, or other
 276-20  work which is the property of another, or in which another owns an
 276-21  interest, or which is lawfully possessed or being used by another,
 276-22  and which is used for irrigation, milling, mining, manufacturing,
 276-23  the development of power, domestic purposes, or stock raising, with
 276-24  intent to:
 276-25              (1)  maliciously injure a person, association,
 276-26  corporation, water improvement or irrigation district;
 276-27              (2)  gain advantage for himself; or
  277-1              (3)  take or steal water or cause water to run out or
  277-2  waste out of the ditch, canal, or reservoir, feeder, or flume for
  277-3  his own advantage or to the injury of a person lawfully entitled to
  277-4  the use of the water or the use or management of the ditch, canal,
  277-5  tunnel, reservoir, feeder, flume, machine, structure, or other
  277-6  irrigation work.
  277-7        (b)  A person who violates any provision of this section is
  277-8  guilty of a misdemeanor and upon conviction is punishable by a fine
  277-9  of not less than $10 nor more than $1,000 or by confinement in the
 277-10  county jail for not more than two years or by both.  (Sec. 11.088,
 277-11  Water Code.)
 277-12        Sec. 11.089.  Johnson Grass or Russian Thistle.  (a)  No
 277-13  person who owns, leases, or operates a ditch, canal, or reservoir
 277-14  or who cultivates land abutting a reservoir, ditch, flume, canal,
 277-15  wasteway, or lateral may permit Johnson grass or Russian thistle to
 277-16  go to seed on the waterway within 10 feet of the high-water line if
 277-17  the waterway crosses or lies on the land owned or controlled by
 277-18  him.
 277-19        (b)  A person who violates any provision of this section is
 277-20  guilty of a misdemeanor and upon conviction is punishable by a fine
 277-21  of not less than $25 nor more than $500 or by confinement in the
 277-22  county jail for not less than 30 days nor more than six months or
 277-23  by both.
 277-24        (c)  The provisions of this section are not applicable in Tom
 277-25  Green, Sterling, Irion, Schleicher, McCullough, Brewster, Menard,
 277-26  Maverick, Kinney, Val Verde, and San Saba counties.  (Sec. 11.089,
 277-27  Water Code.)
  278-1        Sec. 11.090.  Polluting and Littering.  (a)  No person may
  278-2  deposit in any canal, lateral, reservoir, or lake, used for a
  278-3  purpose named in this chapter, the carcass of any dead animal, tin
  278-4  cans, discarded buckets or pails, garbage, ashes, bailing or barbed
  278-5  wire, earth, offal, or refuse of any character or any other article
  278-6  which might pollute the water or obstruct the flow of a canal or
  278-7  similar structure.
  278-8        (b)  A person who violates any provision of this section is
  278-9  guilty of a misdemeanor and upon conviction is punishable by a fine
 278-10  of not less than $10 nor more than $100 or by confinement in the
 278-11  county jail for not more than six months or by both.  (Sec. 11.090,
 278-12  Water Code.)
 278-13        Sec. 11.091.  Interference With Delivery of Water Under
 278-14  Contract.  (a)  No person may wilfully take, divert, appropriate,
 278-15  or interfere with the delivery of conserved or stored water under
 278-16  Section 11.042.
 278-17        (b)  A person who violates any provision of this section is
 278-18  guilty of a misdemeanor and upon conviction is punishable by a fine
 278-19  of not more than $100 or by confinement in the county jail for not
 278-20  more than six months or by both.
 278-21        (c)  A person commits a separate offense each day he
 278-22  continues to violate this section.
 278-23        (d)  On the petition of any interested party, the district
 278-24  court of any county through which the water may pass shall enjoin
 278-25  any actual or threatened act prohibited by this section.
 278-26  (Sec. 11.091, Water Code.)
 278-27        Sec. 11.092.  Wasteful Use of Water.  A person who owns or
  279-1  has a possessory right to land contiguous to a canal or irrigation
  279-2  system and who acquires the right by contract to use the water from
  279-3  it commits waste if he:
  279-4              (1)  permits the excessive or wasteful use of water by
  279-5  any of his agents or employees; or
  279-6              (2)  permits the water to be applied to anything but a
  279-7  beneficial use.  (Sec. 11.092, Water Code.)
  279-8        Sec. 11.093.  Abatement of Waste as Public Nuisance.  (a)  A
  279-9  person who permits an unreasonable loss of water through faulty
 279-10  design or negligent operation of any waterworks using water for a
 279-11  purpose named in this chapter commits waste, and the commission may
 279-12  declare the works causing the waste to be a public nuisance.  The
 279-13  commission may take the necessary action to abate the nuisance.
 279-14  Also, any person who may be injured by the waste may sue in the
 279-15  district court having jurisdiction over the works causing the waste
 279-16  to have the operation of the works abated as a public nuisance.
 279-17        (b)  In case of a wasteful use of water defined by Section
 279-18  11.092, the commission shall declare the use to be a public
 279-19  nuisance and shall act to abate the nuisance by directing the
 279-20  person supplying the water to close the water gates of the person
 279-21  wasting the water and to keep them closed until the commission
 279-22  determines that the unlawful use of water is corrected.
 279-23  (Sec. 11.093, Water Code.)
 279-24        Sec. 11.094.  Penalty for Use of Works Declared Public
 279-25  Nuisance.  (a)  No person may operate or attempt to operate any
 279-26  waterworks or irrigation system or use any water under contract
 279-27  with any waterworks or irrigation system that has been previously
  280-1  declared to be a public nuisance.
  280-2        (b)  A person who violates any provision of this section is
  280-3  guilty of a misdemeanor and on conviction is punishable by a fine
  280-4  of not more than $1,000 or by confinement in the county jail for
  280-5  not more than one year or by both.  (Sec. 11.094, Water Code.)
  280-6        Sec. 11.095.  Penalty for Waste.  A person who wilfully or
  280-7  knowingly commits waste as provided in Section 11.092 or 11.093(a)
  280-8  is guilty of a misdemeanor and upon conviction is punishable by a
  280-9  fine of not more than $500 or by confinement in the county jail for
 280-10  not more than 90 days or by both.  (Sec. 11.095, Water Code.)
 280-11        Sec. 11.096.  Obstruction of Navigable Streams.  (a)  No
 280-12  person may obstruct the navigation of any stream which can be
 280-13  navigated by steamboats, keelboats, or flatboats by cutting and
 280-14  felling trees or by building on or across the stream any dike,
 280-15  milldam, bridge, or other obstruction.
 280-16        (b)  A person who violates any provision of this section is
 280-17  guilty of a misdemeanor and upon conviction is punishable by a fine
 280-18  of not less than $50 nor more than $500.  (Sec. 11.096, Water
 280-19  Code.)
 280-20        Sec. 11.097.  Removal of Obstructions from Navigable Streams.
 280-21  (a)  On its own motion or on written request from a commissioners
 280-22  court, the commission shall investigate a reported natural
 280-23  obstruction in a navigable stream caused by the accumulation of
 280-24  limbs, logs, leaves, other tree parts, or other debris.  If making
 280-25  the investigation on request of a commissioners court, the
 280-26  commission must make its investigation not later than the 30th day
 280-27  after the date on which it receives the written request from the
  281-1  commissioners court.
  281-2        (b)  On completion of the investigation, if the commission
  281-3  determines that the obstruction is creating a hazard or is having
  281-4  other detrimental effect on the navigable stream, the commission
  281-5  shall initiate action to remove the obstruction.
  281-6        (c)  In removing an obstruction, the commission may solicit
  281-7  the assistance of federal and state agencies including the Corps of
  281-8  Engineers, Texas National Guard, the Parks and Wildlife Department,
  281-9  and districts and authorities created under Article III, Sections
 281-10  52(b)(1) and (2), or Article XVI, Section 59, of the Texas
 281-11  Constitution.  Also, the commission may enter into contracts for
 281-12  services required to remove an obstruction.  However, no river
 281-13  authority may require the removal, relocation, or reconfiguration
 281-14  of a floating structure which was in place before September 1,
 281-15  1987, and the effective date of any ordinance, rule, resolution, or
 281-16  other act of the river authority mandating such action unless the
 281-17  commission determines the structure is an obstruction to
 281-18  navigation.  (Sec. 11.097, Water Code.)
 281-19        Sec. 11.098.  Use of Commission Surveys; Policy.  The
 281-20  commission shall make use of surveys, studies, and investigations
 281-21  conducted by the staff of the commission in order to ascertain the
 281-22  character of the principal requirements of the district regional
 281-23  division of the watershed areas of the state for beneficial uses of
 281-24  water, to the end that distribution of the right to take and use
 281-25  state water may be more equitably administered in the public
 281-26  interest, that privileges granted for recognized uses may be
 281-27  economically coordinated so as to achieve the maximum of public
  282-1  value from the state's water resources, and that the distinct
  282-2  regional necessities for water control and conservation and for
  282-3  control of harmful floods may be recognized.  (Sec. 12.014, Water
  282-4  Code.)
  282-5            (Sections 11.099-11.120 reserved for expansion)
  282-6               SUBCHAPTER D.  PERMITS TO USE STATE WATER
  282-7        Sec. 11.121.  Permit Required.  Except as provided in
  282-8  Sections 11.142 and 11.1421, no person may appropriate any state
  282-9  water or begin construction of any work designed for the storage,
 282-10  taking, or diversion of water without first obtaining a permit from
 282-11  the commission to make the appropriation.  (Sec. 11.121, Water
 282-12  Code.)
 282-13        Sec. 11.122.  Amendments to Water Rights Required.  (a)  All
 282-14  holders of permits, certified filings, and certificates of
 282-15  adjudication issued under Section 11.323 shall obtain from the
 282-16  commission authority to change the place of use, purpose of use,
 282-17  point of diversion, rate of diversion, acreage to be irrigated, or
 282-18  otherwise alter a water right.
 282-19        (b)  The commission shall adopt rules to effectuate the
 282-20  provisions of this section.  (Sec. 11.122, Water Code.)
 282-21        Sec. 11.123.  Permit Preferences.  The commission shall give
 282-22  preference to applications in the order declared in Section 11.024
 282-23  and to applications which will effectuate the maximum utilization
 282-24  of water and are calculated to prevent the escape of water without
 282-25  contribution to a beneficial public service.  (Sec. 11.123, Water
 282-26  Code.)
 282-27        Sec. 11.124.  Application for Permit.  (a)  An application to
  283-1  appropriate unappropriated state water must:
  283-2              (1)  be in writing and sworn to;
  283-3              (2)  contain the name and post-office address of the
  283-4  applicant;
  283-5              (3)  identify the source of water supply;
  283-6              (4)  state the nature and purposes of the proposed use
  283-7  and the amount of water to be used for each purpose;
  283-8              (5)  state the location and describe the proposed
  283-9  facilities;
 283-10              (6)  state the time within which the proposed
 283-11  construction is to begin; and
 283-12              (7)  state the time required for the application of
 283-13  water to the proposed use.
 283-14        (b)  If the proposed use is irrigation, the application must
 283-15  also contain:
 283-16              (1)  a description of the land proposed to be
 283-17  irrigated; and
 283-18              (2)  an estimate of the total acreage to be irrigated.
 283-19        (c)  If the application is for a seasonal permit, under the
 283-20  provisions of Section 11.137, the application must also state the
 283-21  months or seasons of the year the water is to be used.
 283-22        (d)  If the application is for a temporary permit under the
 283-23  provisions of Section 11.138, the application must also state the
 283-24  period of the proposed temporary use.
 283-25        (e)  If the application is for a term permit, the application
 283-26  form used must also state that on expiration of a term permit the
 283-27  applicant does not have an automatic right to renew the permit.
  284-1  (Sec. 11.124, Water Code.)
  284-2        Sec. 11.125.  Map or Plat.  (a)  The application must be
  284-3  accompanied by a map or plat drawn on tracing linen on a scale not
  284-4  less than one inch equals 2,000 feet.
  284-5        (b)  The map or plat must show substantially:
  284-6              (1)  the location and extent of the proposed
  284-7  facilities;
  284-8              (2)  the location of the headgate, intake, pumping
  284-9  plant, or point of diversion by course and distance from permanent
 284-10  natural objects or landmarks;
 284-11              (3)  the location of the main ditch or canal and the
 284-12  locations of the laterals or branches of the main ditch or canal;
 284-13              (4)  the course of the water supply;
 284-14              (5)  the position, waterline, and area of all lakes,
 284-15  reservoirs, or basins intended to be used or created;
 284-16              (6)  the point of intersection of the proposed
 284-17  facilities with any other ditch, canal, lateral, lake, or
 284-18  reservoir; and
 284-19              (7)  the location of any ditch, canal, lateral,
 284-20  reservoir, lake, dam, or other similar facility already existing in
 284-21  the area, drawn in a different colored ink than that used to
 284-22  represent the proposed facilities, and the name of the owner of the
 284-23  existing facility.
 284-24        (c)  The map or plat must also contain:
 284-25              (1)  the name of the proposed facility or enterprise;
 284-26              (2)  the name of the applicant; and
 284-27              (3)  a certificate of the surveyor, giving the date of
  285-1  his survey, his name and post-office address, and the date of the
  285-2  application which the certificate accompanies.  (Sec. 11.125, Water
  285-3  Code.)
  285-4        Sec. 11.126.  Commission Requirements.  (a)  If the proposed
  285-5  taking or diversion of water for irrigation exceeds nine cubic feet
  285-6  per second, the executive director may require additional
  285-7  information as prescribed by this section.
  285-8        (b)  The executive director may require a continuous
  285-9  longitudinal profile, cross sections of the proposed channel, and
 285-10  the detail plans of any proposed structure, on any scales and with
 285-11  any definition the executive director considers necessary or
 285-12  expedient.
 285-13        (c)  If the application proposes construction of a dam
 285-14  greater than six feet in height either for diversion or storage,
 285-15  the executive director may also require filing a copy of all plans
 285-16  and specifications and a copy of the engineer's field notes of any
 285-17  survey of the lake or reservoir.  No work on the project shall
 285-18  proceed until approval of the plans is obtained from the executive
 285-19  director.
 285-20        (d)  If the applicant is a corporation, the commission may
 285-21  require filing a certified copy of its articles of incorporation, a
 285-22  statement of the names and addresses of its directors and officers,
 285-23  and a statement of the amount of its authorized capital stock and
 285-24  its paid-up capital stock.
 285-25        (e)  If the applicant is not a corporation, the commission
 285-26  may require filing a sworn statement showing the name and address
 285-27  of each person interested in the appropriation, the extent of his
  286-1  interest, and his financial condition.  (Sec. 11.126, Water Code.)
  286-2        Sec. 11.127.  Additional Requirements:  Drainage Plans.  If
  286-3  the commission believes that the efficient operation of any
  286-4  existing or proposed irrigation system may be adversely affected by
  286-5  lack of adequate drainage facilities incident to the work proposed
  286-6  to be done by an applicant, the commission may require the
  286-7  applicant to submit to the executive director for approval plans
  286-8  for drainage adequate to guard against any injury which the
  286-9  proposed work may entail.  (Sec. 11.127, Water Code.)
 286-10        Sec. 11.1271.  Additional Requirements:  Water Conservation
 286-11  Plans.  The commission may require the formulation and submission
 286-12  of a water conservation plan and the adoption of reasonable water
 286-13  conservation measures, as defined by Section 11.002.
 286-14  (Sec. 11.1271, Water Code.)
 286-15        Sec. 11.128.  Payment of Fee.  If the applicant is not
 286-16  exempted from payment of the filing fee under Section 2.172(r), he
 286-17  shall pay the filing fee prescribed by Section 2.172(b) at the time
 286-18  he files the application.  The commission shall not record, file,
 286-19  or consider the application until the executive director certifies
 286-20  to the commission that the fee is paid.  (Sec. 11.128, Water Code.)
 286-21        Sec. 11.129.  Review of Application; Amendment.  The
 286-22  commission shall determine whether the application, maps, and other
 286-23  materials comply with the requirements of this chapter and the
 286-24  rules of the commission.  The commission may require amendment of
 286-25  the application, maps, or other materials to achieve necessary
 286-26  compliance.  (Sec. 11.129, Water Code.)
 286-27        Sec. 11.130.  Recording Applications.  (a)  The executive
  287-1  director shall have all applications for appropriations recorded in
  287-2  a well-bound book kept for that purpose in the commission office.
  287-3        (b)  The executive director shall have the applications
  287-4  indexed alphabetically in the name of:
  287-5              (1)  the applicant;
  287-6              (2)  the stream or source from which the appropriation
  287-7  is sought to be made; and
  287-8              (3)  the county in which the appropriation is sought to
  287-9  be made.  (Sec. 11.130, Water Code.)
 287-10        Sec. 11.131.  Examination and Denial of Application Without
 287-11  Hearing.  (a)  The commission shall make a preliminary examination
 287-12  of the application, and if it appears that there is no
 287-13  unappropriated water in the source of supply or that the proposed
 287-14  appropriation should not be allowed for other reasons, the
 287-15  commission may deny the application.
 287-16        (b)  If the commission denies the application under this
 287-17  section and the applicant elects not to proceed further, the
 287-18  commission may order any part of the fee submitted with the
 287-19  application returned to the applicant.  (Sec. 11.131, Water Code.)
 287-20        Sec. 11.132.  Notice.  (a)  Notice shall be given to the
 287-21  persons who in the judgment of the commission may be affected by an
 287-22  application, including those persons listed in Subsection (d)(2).
 287-23  The commission, on the motion of a commissioner or on the request
 287-24  of the executive director or any affected person, shall hold a
 287-25  public hearing on the application.
 287-26        (b)  If the proposed use is for irrigation, the commission
 287-27  shall include in the notice a general description of the location
  288-1  and area of the land to be irrigated.
  288-2        (c)  In the notice, the commission shall:
  288-3              (1)  state the name and address of the applicant;
  288-4              (2)  state the date the application was filed;
  288-5              (3)  state the purpose and extent of the proposed
  288-6  appropriation of water;
  288-7              (4)  identify the source of supply and the place where
  288-8  the water is to be stored or taken or diverted from the source of
  288-9  supply;
 288-10              (5)  specify the time and location where the commission
 288-11  will consider the application; and
 288-12              (6)  give any additional information the commission
 288-13  considers necessary.
 288-14        (d)  The commission may act on the application without
 288-15  holding a public hearing if:
 288-16              (1)  not less than 30 days before the date of action on
 288-17  the application by the commission, the applicant has published the
 288-18  commission's notice of the application at least once in a newspaper
 288-19  regularly published or circulated within the section of the state
 288-20  where the source of water is located;
 288-21              (2)  not less than 30 days before the date of action on
 288-22  the application by the commission, the commission mails a copy of
 288-23  the notice by first-class mail, postage prepaid, to:
 288-24                    (A)  each claimant or appropriator of water from
 288-25  the source of water supply, the record of whose claim or
 288-26  appropriation has been filed with the commission; and
 288-27                    (B)  all navigation districts within the river
  289-1  basin concerned; and
  289-2              (3)  within 30 days after the date of the newspaper
  289-3  publication of the commission's notice, a public hearing has not
  289-4  been requested in writing by a commissioner, the executive
  289-5  director, or an affected person who objects to the application.
  289-6        (e)  The inadvertent failure of the commission to mail a
  289-7  notice under Subsection (d)(2) to a navigation district that is not
  289-8  a claimant or appropriator of water does not prevent the
  289-9  commission's consideration of the application.
 289-10        (f)  If, on the date specified in the notice prescribed by
 289-11  Subsection (c), the commission determines that a public hearing
 289-12  must be held, the matter shall be remanded for hearing without the
 289-13  necessity of issuing further notice other than advising all parties
 289-14  of the time and place where the hearing is to convene.
 289-15  (Sec. 11.132, Water Code.)
 289-16        Sec. 11.133.  Hearing.  At the time and place stated in the
 289-17  notice, the commission shall hold a hearing on the application.
 289-18  Any person may appear at the hearing in person or by attorney or
 289-19  may enter his appearance in writing.  Any person who appears may
 289-20  present objection to the issuance of the permit.  The commission
 289-21  may receive evidence, orally or by affidavit, in support of or in
 289-22  opposition to the issuance of the permit, and it may hear
 289-23  arguments.  (Sec. 11.133, Water Code.)
 289-24        Sec. 11.134.  Action on Application.  (a)  After the hearing,
 289-25  the commission shall make a written decision granting or denying
 289-26  the application.  The application may be granted or denied in whole
 289-27  or in part.
  290-1        (b)  The commission shall grant the application only if:
  290-2              (1)  the application conforms to the requirements
  290-3  prescribed by this chapter and is accompanied by the prescribed
  290-4  fee;
  290-5              (2)  unappropriated water is available in the source of
  290-6  supply;
  290-7              (3)  the proposed appropriation:
  290-8                    (A)  contemplates the application of water to any
  290-9  beneficial use;
 290-10                    (B)  does not impair existing water rights or
 290-11  vested riparian rights; and
 290-12                    (C)  is not detrimental to the public welfare;
 290-13  and
 290-14              (4)  the applicant has provided evidence that
 290-15  reasonable diligence will be used to avoid waste and achieve water
 290-16  conservation as defined by  Section 11.002.  (Sec. 11.134, Water
 290-17  Code.)
 290-18        Sec. 11.135.  Issuance of Permit.  (a)  On approval of an
 290-19  application, the commission shall issue a permit to the applicant.
 290-20  The applicant's right to take and use water is limited to the
 290-21  extent and purposes stated in the permit.
 290-22        (b)  The permit shall be in writing and attested by the seal
 290-23  of the commission, and it shall contain substantially the following
 290-24  information:
 290-25              (1)  the name of the person to whom the permit is
 290-26  issued;
 290-27              (2)  the date the permit is issued;
  291-1              (3)  the date the original application was filed;
  291-2              (4)  the use or purpose for which the appropriation is
  291-3  to be made;
  291-4              (5)  the amount or volume of water authorized to be
  291-5  appropriated for each purpose;
  291-6              (6)  a general description of the source of supply from
  291-7  which the appropriation is proposed to be made;
  291-8              (7)  the time within which construction or work must
  291-9  begin and the time within which it must be completed; and
 291-10              (8)  any other information the commission prescribes.
 291-11        (c)  If the appropriation is for irrigation, the commission
 291-12  shall also place in the permit a description and statement of the
 291-13  approximate area of the land to be irrigated.  (Sec. 11.135, Water
 291-14  Code.)
 291-15        Sec. 11.1351.  Permit Restrictions.  In granting an
 291-16  application, the commission may direct that stream flow
 291-17  restrictions and other conditions and restrictions be placed in the
 291-18  permit being issued to protect the priority of senior water rights.
 291-19  (Sec. 11.1351, Water Code.)
 291-20        Sec. 11.136.  Recording of Permit.  (a)  The commission shall
 291-21  transmit the permit by registered mail to the county clerk of the
 291-22  county in which the appropriation is to be made.
 291-23        (b)  When the county clerk receives the permit and is paid
 291-24  the recording fee prescribed by Subchapter B, Chapter 118, Local
 291-25  Government Code, he shall file and record the permit in a
 291-26  well-bound book kept for that purpose.  He shall index the permit
 291-27  alphabetically in the name of the applicant and of the stream or
  292-1  source of water supply.  After he has recorded the permit, the
  292-2  county clerk shall deliver the permit, on demand, to the applicant.
  292-3        (c)  When the permit is filed in the office of the county
  292-4  clerk, it is constructive notice of:
  292-5              (1)  the filing of the application;
  292-6              (2)  the issuance of the permit; and
  292-7              (3)  all the rights arising under the filing of the
  292-8  application and the issuance of the permit.  (Sec. 11.136, Water
  292-9  Code.)
 292-10        Sec. 11.137.  Seasonal Permits.  (a)  The commission may
 292-11  issue seasonal permits in the same manner that it issues regular
 292-12  permits.  The provisions of this chapter governing issuance of
 292-13  regular permits apply to issuance of seasonal permits.
 292-14        (b)  The right to take, use, or divert water under seasonal
 292-15  permit is limited to the portion or portions of the calendar year
 292-16  stated in the permit.
 292-17        (c)  In a seasonal permit, the commission shall specify the
 292-18  conditions necessary to fully protect prior appropriations or
 292-19  vested rights on the stream.  (Sec. 11.137, Water Code.)
 292-20        Sec. 11.138.  Temporary Permits.  (a)  The commission may
 292-21  issue temporary permits for beneficial purposes to the extent that
 292-22  they do not interfere with or adversely affect prior appropriations
 292-23  or vested rights on the stream from which water is to be diverted
 292-24  under such temporary permit.  The commission may, by appropriate
 292-25  order, authorize any member of the commission to approve and issue
 292-26  temporary permits without notice and hearing if it appears to such
 292-27  issuing party that sufficient water is available at the proposed
  293-1  point of diversion to satisfy the requirements of the temporary
  293-2  permit as well as all existing rights.  No temporary permit issued
  293-3  without notice and hearing shall authorize more than 10 acre-feet
  293-4  of water, nor may it be for a term in excess of one year.
  293-5        (b)  The commission may prescribe rules governing notice and
  293-6  procedure for the issuance of temporary permits.
  293-7        (c)  As between temporary permits, the one applied for first
  293-8  has priority.
  293-9        (d)  The commission may not issue a temporary permit for a
 293-10  period exceeding three calendar years.
 293-11        (e)  A temporary permit does not vest in its holder a
 293-12  permanent right to the use of water.
 293-13        (f)  A temporary permit expires and shall be cancelled by the
 293-14  commission in accordance with the terms of the permit.
 293-15        (g)  The commission may prescribe by rule the fees to be paid
 293-16  for issuance of temporary permits, but no fee for issuance or
 293-17  extension of a temporary permit shall exceed $500.  (Sec. 11.138,
 293-18  Water Code.)
 293-19        Sec. 11.1381.  Term Permits.  (a)  Until a water right is
 293-20  perfected to the full extent provided by Section 11.026, the
 293-21  commission may issue permits for a term of years for use of state
 293-22  water to which a senior water right has not been perfected.
 293-23        (b)  The commission shall refuse to grant an application for
 293-24  a permit under this section if the commission finds that there is a
 293-25  substantial likelihood that the issuance of the permit will
 293-26  jeopardize financial commitments made for water projects that have
 293-27  been built or that are being built to optimally develop the water
  294-1  resources of the area.
  294-2        (c)  The commission shall refuse to grant an application for
  294-3  a term permit if the holder of the senior appropriative water right
  294-4  can demonstrate that the issuance of the term permit would prohibit
  294-5  the senior appropriative water right holder from beneficially using
  294-6  the senior rights during the term of the term permit.  Such
  294-7  demonstration will be made using reasonable projections based on
  294-8  accepted methods.
  294-9        (d)  A permit issued under this section is subordinate to any
 294-10  senior appropriative water rights.  (Sec. 11.1381, Water Code.)
 294-11        Sec. 11.139.  Emergency Permits.  (a)  The commission may
 294-12  grant an emergency permit for the diversion and use of water for a
 294-13  period of not more than 30 days if it finds that emergency
 294-14  conditions exist which threaten the public health, safety, and
 294-15  welfare and which override the necessity to comply with established
 294-16  statutory procedures.
 294-17        (b)  An emergency permit may be granted for a period of not
 294-18  more than 30 days, and no extension or additional emergency permit
 294-19  may be granted at the expiration of the original permit.
 294-20        (c)  An emergency permit may be granted under this section
 294-21  without the necessity to comply with statutory and other procedures
 294-22  required for granting other permits issued by the commission.
 294-23        (d)  The commission may prescribe rules and adopt fees which
 294-24  are necessary to carry out the provisions of this section.
 294-25        (e)  An emergency permit does not vest in the permittee any
 294-26  right to the diversion and use of water and shall expire and be
 294-27  cancelled in accordance with its terms.  (Sec. 11.139, Water Code.)
  295-1        Sec. 11.140.  Permits for Storage for Project Development.
  295-2  The commission may issue permits for storage solely for the purpose
  295-3  of optimum development of projects.  The commission may convert
  295-4  these permits to permits for beneficial use if application to have
  295-5  them converted is made to the commission.  (Sec. 11.140, Water
  295-6  Code.)
  295-7        Sec. 11.141.  Date of Priority.  When the commission issues a
  295-8  permit, the priority of the appropriation of water and the
  295-9  claimant's right to use the water date from the date of filing of
 295-10  the application.  (Sec. 11.141, Water Code.)
 295-11        Sec. 11.142.  Permit Exemptions.  (a)  Without obtaining a
 295-12  permit, a person may construct on his own property a dam or
 295-13  reservoir to impound or contain not more than 200 acre-feet of
 295-14  water for domestic and livestock purposes.
 295-15        (b)  Without obtaining a permit, a person who is drilling and
 295-16  producing petroleum and conducting operations associated with
 295-17  drilling and producing petroleum may take for those purposes state
 295-18  water from the Gulf of Mexico and adjacent bays and arms of the
 295-19  Gulf of Mexico in an amount not to exceed one acre-foot during each
 295-20  24-hour period.  (Sec. 11.142, Water Code.)
 295-21        Sec. 11.1421.  Permit Exemption for Mariculture Activities.
 295-22  (a)  In this section, "mariculture" means the propagation and
 295-23  rearing of aquatic species, including shrimp, other crustaceans,
 295-24  finfish, mollusks, and other similar creatures in a controlled
 295-25  environment using brackish or marine water.
 295-26        (b)  Without obtaining a permit and subject to the
 295-27  requirements and limitations provided by Subsections (c) through
  296-1  (e), a person who is engaged in mariculture operations on land may
  296-2  take for that purpose state water from the Gulf of Mexico and
  296-3  adjacent bays and arms of the Gulf of Mexico in an amount
  296-4  appropriate to those mariculture activities.
  296-5        (c)  Before a person first takes water under Subsection (b),
  296-6  the person must give notice to the commission of the proposed
  296-7  appropriation.
  296-8        (d)  Each appropriation of water made under Subsection (b)
  296-9  shall be reported to the commission in the manner provided by the
 296-10  commission's rules.
 296-11        (e)  After notice and hearing, if the commission determines
 296-12  that as a result of low freshwater inflows appropriation of water
 296-13  under Subsection (b) would interfere with natural productivity of
 296-14  bays and estuaries, the commission shall issue an order requiring
 296-15  interruption or reduction of the appropriation.  (Sec. 11.1421,
 296-16  Water Code.)
 296-17        Sec. 11.143.  Domestic and Livestock Reservoir--Use for Other
 296-18  Purposes.  (a)  The owner of a dam or reservoir exempted under
 296-19  Section 11.142 who desires to use water from the dam or reservoir
 296-20  for purposes other than domestic or livestock use shall obtain a
 296-21  permit to do so.  He may obtain a regular permit, a seasonal
 296-22  permit, or a permit for a term of years.  He may elect to obtain
 296-23  the permit by proceeding under this section or under the other
 296-24  provisions of this chapter governing issuance of permits.
 296-25        (b)  If the applicant elects to proceed under this section,
 296-26  he shall submit to the commission a sworn application, on a form
 296-27  furnished by the commission, containing the following information:
  297-1              (1)  the name and post-office address of the applicant;
  297-2              (2)  the nature and purpose of the use and the amount
  297-3  of water to be used annually for each purpose;
  297-4              (3)  the major watershed and the tributary (named or
  297-5  unnamed) on which the dam or reservoir is located;
  297-6              (4)  the county in which the dam or reservoir is
  297-7  located;
  297-8              (5)  the approximate distance and direction from the
  297-9  county seat of the county to the location of the dam or reservoir;
 297-10              (6)  the survey or the portion of the survey on which
 297-11  the dam or reservoir is located and, to the best of the applicant's
 297-12  knowledge and belief, the distance and direction of the midpoint of
 297-13  the dam or reservoir from a corner of the survey, which information
 297-14  the executive director may require to be marked on an aerial
 297-15  photograph or map furnished by the commission;
 297-16              (7)  the approximate surface area, to the nearest acre,
 297-17  of the reservoir when it is full and the average depth in feet when
 297-18  it is full; and
 297-19              (8)  the approximate number of square miles in the
 297-20  drainage area above the dam or reservoir.
 297-21        (c)  If the permit is sought for irrigation, the application
 297-22  must also specify:
 297-23              (1)  the total number of irrigable acres in the area;
 297-24              (2)  the number of acres to be irrigated within the
 297-25  area in any one year; and
 297-26              (3)  the approximate distance and direction of the land
 297-27  to be irrigated from the midpoint of the dam or reservoir.
  298-1        (d)  Except as otherwise specifically provided by this
  298-2  subsection, before the commission may approve the application and
  298-3  issue the permit, it shall give notice and hold a hearing as
  298-4  prescribed by this section.  The commission may act on the
  298-5  application without holding a public hearing if:
  298-6              (1)  not less than 30 days before the date of action on
  298-7  the application by the commission, the applicant has published the
  298-8  commission's notice of the application at least once in a newspaper
  298-9  regularly published or circulated within the section of the state
 298-10  where the source of water is located;
 298-11              (2)  not less than 30 days before the date of action on
 298-12  the application by the commission, the commission mails a copy of
 298-13  the notice by first-class mail, postage prepaid, to each person
 298-14  whose claim or appropriation has been filed with the commission and
 298-15  whose diversion point is downstream from that described in the
 298-16  application; and
 298-17              (3)  within 30 days after the date of the newspaper
 298-18  publication of the commission's notice, a public hearing is not
 298-19  requested in writing by a commissioner, the executive director, or
 298-20  an affected person who objects to the application.
 298-21        (e)  In the notice, the commission shall:
 298-22              (1)  state the name and post-office address of the
 298-23  applicant;
 298-24              (2)  state the date the application was filed;
 298-25              (3)  state the purpose and extent of the proposed
 298-26  appropriation of water;
 298-27              (4)  identify the source of supply and the place where
  299-1  the water is stored; and
  299-2              (5)  specify the time and place of the hearing.
  299-3        (f)  The notice shall be published only once, at least 20
  299-4  days before the date stated in the notice for the hearing on the
  299-5  application, in a newspaper having general circulation in the
  299-6  county where the dam or reservoir is located.   At least 15 days
  299-7  before the date set for the hearing, the commission shall transmit
  299-8  a copy of the notice by first-class mail to each person whose claim
  299-9  or appropriation has been filed with the commission and whose
 299-10  diversion point is downstream from that described in the
 299-11  application.
 299-12        (g)  If on the date specified in the notice prescribed by
 299-13  Subsection (d), the commission determines that a public hearing
 299-14  must be held, the matter shall be remanded for hearing without the
 299-15  necessity of issuing further notice other than advising all parties
 299-16  of the time and place where the hearing is to convene.
 299-17        (h)  The applicant shall pay the filing fee prescribed by
 299-18  Section 2.172(a)-(n) at the time he files the application.
 299-19        (i)  The commission shall approve the application and issue
 299-20  the permit as applied for in whole or part if it determines that:
 299-21              (1)  there is unappropriated water in the source of
 299-22  supply;
 299-23              (2)  the applicant has met the requirements of this
 299-24  section;
 299-25              (3)  the water is to be used for a beneficial purpose;
 299-26              (4)  the proposed use is not detrimental to the public
 299-27  welfare or to the welfare of the locality; and
  300-1              (5)  the proposed use will not impair existing water
  300-2  rights.  (Sec. 11.143, Water Code.)
  300-3        Sec. 11.144.  Approval for Alterations.  All holders of
  300-4  permits and certified filings shall obtain the approval of the
  300-5  commission before making any alterations, enlargements, extensions,
  300-6  or other changes to any reservoir, dam, main canal, or diversion
  300-7  work on which a permit has been granted or a certified filing
  300-8  recorded.  A detailed statement and plans for alterations or
  300-9  changes shall be filed with the commission and approved by the
 300-10  executive director before the alterations or changes are made.
 300-11  This section does not apply to the ordinary maintenance or
 300-12  emergency repair of the facility.  (Sec. 11.144, Water Code.)
 300-13        Sec. 11.145.  When Construction Must Begin.  (a)  If a permit
 300-14  is for appropriation by direct diversion, construction of the
 300-15  proposed facilities shall begin within the time fixed by the
 300-16  commission, which shall not exceed two years after the date the
 300-17  permit is issued.  The appropriator shall work diligently and
 300-18  continuously to the completion of the construction.  The commission
 300-19  may, by entering an order of record, extend the time for beginning
 300-20  construction.  The commission may establish fees, not to exceed
 300-21  $1,000, for extending the time to begin construction of the
 300-22  proposed facilities.
 300-23        (b)  If the permit contemplates construction of a storage
 300-24  reservoir, construction shall begin within the time fixed by the
 300-25  commission, not to exceed two years after the date the permit is
 300-26  issued.  The commission, by entering an order of record, may extend
 300-27  the time for beginning construction.  The commission may fix fees,
  301-1  not to exceed $1,000, for extending the time to begin construction
  301-2  of reservoirs.  (Sec. 11.145, Water Code.)
  301-3        Sec. 11.146.  Forfeitures and Cancellation of Permit for
  301-4  Inaction.  (a)  If a permittee fails to begin construction within
  301-5  the time specified in Section 11.145, he forfeits all rights to the
  301-6  permit, subject to notice and hearing as prescribed by this
  301-7  section.
  301-8        (b)  After beginning construction if the appropriator fails
  301-9  to work diligently and continuously to the completion of the work,
 301-10  the appropriation is subject to cancellation in whole or part,
 301-11  subject to notice and hearing as prescribed by this section.
 301-12        (c)  If the commission believes that an appropriation or
 301-13  permit should be declared forfeited under this section or any other
 301-14  sections of this code, it should give the appropriator or permittee
 301-15  30 days notice and provide him with an opportunity to be heard.
 301-16        (d)  After the hearing, the commission by entering an order
 301-17  of record may cancel the appropriation in whole or part.  The
 301-18  commission shall immediately transmit a certified copy of the
 301-19  cancellation order by certified mail to the county clerk of the
 301-20  county in which the permit is recorded.  The county clerk shall
 301-21  record the cancellation order.
 301-22        (e)  Except as provided by Section 11.1381, if a permit has
 301-23  been issued for the use of water, the water is not subject to a new
 301-24  appropriation until the permit has been cancelled in whole or part
 301-25  as provided by this section.
 301-26        (f)  Except as provided by Subchapter E, none of the
 301-27  provisions of this code may be construed as intended to impair,
  302-1  cause, or authorize or may impair, cause, or authorize the
  302-2  forfeiture of any rights acquired by any declaration of
  302-3  appropriation or by any permit if the appropriator has begun or
  302-4  begins the work and development contemplated by his declaration of
  302-5  appropriation or permit within the time provided by the law under
  302-6  which the declaration of appropriation was made or the permit was
  302-7  granted and has prosecuted or continues to prosecute it with all
  302-8  reasonable diligence toward completion.  (Sec. 11.146, Water Code.)
  302-9        Sec. 11.147.  Effects of Permit on Bays and Estuaries and
 302-10  Instream Uses.  (a)  In this section, "beneficial inflows" means a
 302-11  salinity, nutrient, and sediment loading regime adequate to
 302-12  maintain an ecologically sound environment in the receiving bay and
 302-13  estuary system that is necessary for the maintenance of
 302-14  productivity of economically important and ecologically
 302-15  characteristic sport or commercial fish and shellfish species and
 302-16  estuarine life upon which such fish and shellfish are dependent.
 302-17        (b)  In its consideration of an application for a permit to
 302-18  store, take, or divert water, the commission shall assess the
 302-19  effects, if any, of the issuance of the permit on the bays and
 302-20  estuaries of Texas.  For permits issued within an area that is 200
 302-21  river miles of the coast, to commence from the mouth of the river
 302-22  thence inland, the commission shall include in the permit, to the
 302-23  extent practicable when considering all public interests, those
 302-24  conditions considered necessary to maintain beneficial inflows to
 302-25  any affected bay and estuary system.
 302-26        (c)  For the purposes of making a determination under
 302-27  Subsection (b), the commission shall consider among other factors:
  303-1              (1)  the need for periodic freshwater inflows to supply
  303-2  nutrients and modify salinity to preserve the sound environment of
  303-3  the bay or estuary, using any available information, including
  303-4  studies and plans specified in Section 11.149 and other studies
  303-5  considered by the commission to be reliable; together with existing
  303-6  circumstances, natural or otherwise, that might prevent the
  303-7  conditions imposed from producing benefits;
  303-8              (2)  the ecology and productivity of the affected bay
  303-9  and estuary system;
 303-10              (3)  the expected effects on the public welfare of not
 303-11  including in the permit some or all of the conditions considered
 303-12  necessary to maintain the beneficial inflows to the affected bay or
 303-13  estuary system;
 303-14              (4)  the quantity of water requested and the proposed
 303-15  use of water by the applicant, as well as the needs of those who
 303-16  would be served by the applicant;
 303-17              (5)  the expected effects on the public welfare of the
 303-18  failure to issue all or part of the permit being considered; and
 303-19              (6)  for purposes of this section, the declarations as
 303-20  to preferences for competing uses of water as found in Sections
 303-21  11.024 and 11.033, as well as the public policy statement in
 303-22  Section 1.002.
 303-23        (d)  In its consideration of an application to store, take,
 303-24  or divert water, the commission shall consider the effect, if any,
 303-25  of the issuance of the permit on existing instream uses and water
 303-26  quality of the stream or river to which the application applies.
 303-27        (e)  The commission shall also consider the effect, if any,
  304-1  of the issuance of the permit on fish and wildlife habitats.
  304-2        (f)  On receipt of an application for a permit to store,
  304-3  take, or divert water, the commission shall send a copy of the
  304-4  permit application and any subsequent amendments to the Parks and
  304-5  Wildlife Department.  At its option, the Parks and Wildlife
  304-6  Department may be a party in hearings on applications for permits
  304-7  to store, take, or divert water.  In making a final decision on any
  304-8  application for a permit, the commission, in addition to other
  304-9  information, evidence, and testimony presented, shall consider all
 304-10  information, evidence, and testimony presented by the Parks and
 304-11  Wildlife Department and the board.
 304-12        (g)  The failure of the Parks and Wildlife Department to
 304-13  appear as a party does not relieve the commission of the
 304-14  requirements of this section.  (Sec. 11.147, Water Code.)
 304-15        Sec. 11.148.  Emergency Suspension of Permit Conditions.
 304-16  (a)  Permit conditions relating to beneficial inflows to affected
 304-17  bays and estuaries and instream uses may be suspended by the
 304-18  commission if the commission finds that an emergency exists and
 304-19  cannot practically be resolved in other ways.
 304-20        (b)  Before the commission suspends a permit under Subsection
 304-21  (a), it must give written notice to the Parks and Wildlife
 304-22  Department of the proposed suspension.  The commission shall give
 304-23  the Parks and Wildlife Department an opportunity to submit comments
 304-24  on the proposed suspension within 72 hours after such time and the
 304-25  commission shall consider those comments before issuing its order
 304-26  imposing the suspension.
 304-27        (c)  The commission may suspend the permit without notice to
  305-1  any interested party other than the Parks and Wildlife Department
  305-2  as provided by Subsection (b).  However, all affected persons shall
  305-3  be notified immediately by publication, and a hearing to determine
  305-4  whether the suspension should be continued shall be held within 15
  305-5  days of the date on which the order to suspend is issued.
  305-6  (Sec. 11.148, Water Code.)
  305-7        Sec. 11.149.  Evaluation of Bays and Estuaries Data.
  305-8  (a)  The Parks and Wildlife Department and the commission shall
  305-9  have joint responsibility to review the studies prepared under
 305-10  Section 16.058, Water Code, to determine inflow conditions
 305-11  necessary for the bays and estuaries, and to provide information
 305-12  necessary for water resources management.  Each agency shall
 305-13  designate an employee to share equally in the oversight of the
 305-14  program.  Other responsibilities shall be divided between the Parks
 305-15  and Wildlife Department and the commission to maximize present
 305-16  in-house capabilities of personnel and to minimize costs to the
 305-17  state.  Each agency shall have reasonable access to all information
 305-18  produced by the other agency.  Publication of reports completed
 305-19  under this section shall be submitted for comment to both the
 305-20  commission and the Parks and Wildlife Department.
 305-21        (b)  For purposes of guiding data collection and studies
 305-22  specified under Subsection (a), an advisory council may be
 305-23  established by the executive directors of the commission and the
 305-24  Parks and Wildlife Department and the executive administrator of
 305-25  the board for each principal bay and estuary.  Each advisory
 305-26  council shall be composed of representatives of the commission,
 305-27  board, Parks and Wildlife Department, Texas Department of Health,
  306-1  General Land Office, one representative of commercial fishing
  306-2  groups, one representative of recreational fishing and hunting
  306-3  groups, one representative of conservation groups, and
  306-4  representatives of conservation and reclamation districts or river
  306-5  authorities having responsibilities and operations in river basins
  306-6  or watersheds contributing to the bay or estuary.  The advisory
  306-7  councils may develop recommendations to the executive directors and
  306-8  to entities and organizations having operational responsibilities
  306-9  or holding major water rights in the contributing watersheds
 306-10  regarding alternative water management methods that may be used in
 306-11  maintaining the sound environment of the bays and estuaries.
 306-12        (c)  The board may authorize the use of money from the
 306-13  research and planning fund established by Chapter 15, Water Code,
 306-14  to accomplish the purposes of this section.  These funds shall be
 306-15  used by the commission in cooperation with the Parks and Wildlife
 306-16  Department for interagency contracts with cooperating agencies and
 306-17  universities, and contracts with private sector establishments, as
 306-18  necessary, to accomplish the purposes of this section.
 306-19  (Sec. 11.1491, Water Code.)
 306-20        Sec. 11.150.  Effects of Permits on Water Quality.  In
 306-21  consideration of an application for a permit under this subchapter,
 306-22  the commission shall assess the effects, if any, of the issuance of
 306-23  the permit on water quality in this state.  (Sec. 11.150, Water
 306-24  Code.)
 306-25        Sec. 11.151.  Effects of Permits on Fish and Wildlife
 306-26  Habitats.  In its consideration of an application for a permit to
 306-27  store, take, or divert water in excess of 5,000 acre feet per year,
  307-1  the commission shall assess the effects, if any, on the issuance of
  307-2  the permit on fish and wildlife habitats and may require the
  307-3  applicant to take reasonable actions to mitigate adverse impacts on
  307-4  such habitat.  In determining whether to require an applicant to
  307-5  mitigate adverse impacts on a habitat, the commission may consider
  307-6  any net benefit to the habitat produced by the project.  The
  307-7  commission shall offset against any mitigation required by the U.S.
  307-8  Fish and Wildlife Service pursuant to 33 C.F.R. Sections 320-330
  307-9  any mitigation authorized by this section.  (Sec. 11.152, Water
 307-10  Code.)
 307-11        Sec. 11.152.  Permit Applications.  The commission shall
 307-12  receive, administer, and act on all applications for permits and
 307-13  permit amendments:
 307-14              (1)  to appropriate public water for beneficial use or
 307-15  storage; or
 307-16              (2)  to construct works for the impoundment, storage,
 307-17  diversion, or transportation of public water.  (Sec. 12.011, Water
 307-18  Code.)
 307-19        Sec. 11.153.  Evaluation of Outstanding Permits.  The
 307-20  commission shall actively and continually evaluate outstanding
 307-21  permits and certified filings and shall carry out measures to
 307-22  cancel wholly or partially the certified filings and permits that
 307-23  are subject to cancellation.  (Sec. 12.012, Water Code.)
 307-24            (Sections 11.154-11.170 reserved for expansion)
 307-25      SUBCHAPTER E.  CANCELLATION OF PERMITS, CERTIFIED FILINGS,
 307-26              AND CERTIFICATES OF ADJUDICATION FOR NONUSE
 307-27        Sec. 11.171.  Definitions.  As used in this subchapter:
  308-1              (1)  "Other interested person" means any person other
  308-2  than a record holder who is interested in the permit or certified
  308-3  filing or any person whose direct interest would be served by the
  308-4  cancellation of the permit or certified filing in whole or part.
  308-5              (2)  "Certified filing" means a declaration of
  308-6  appropriation or affidavit that was filed with the State Board of
  308-7  Water Engineers under the provisions of Section 14, Chapter 171,
  308-8  General Laws, Acts of the 33rd Legislature, 1913, as amended.
  308-9              (3)  "Certificate of adjudication" means a certificate
 308-10  issued by the commission under Section 11.323.
 308-11              (4)  "Permit" means an authorization by the commission
 308-12  granting a person the right to use water.  (Sec. 11.171, Water
 308-13  Code.)
 308-14        Sec. 11.172.  General Principle.  A permit, certified filing,
 308-15  or certificate of adjudication is subject to cancellation in whole
 308-16  or part for 10 years nonuse as provided by this subchapter.
 308-17  (Sec. 11.172, Water Code.)
 308-18        Sec. 11.173.  Cancellation in Whole or in Part.  (a)  Except
 308-19  as provided by Subsection (b), if all or part of the water
 308-20  authorized to be appropriated under a permit, certified filing, or
 308-21  certificate of adjudication has not been put to beneficial use at
 308-22  any time during the 10-year period immediately preceding the
 308-23  cancellation proceedings authorized by this subchapter, then the
 308-24  permit, certified filing, or certificate of adjudication is subject
 308-25  to cancellation in whole or in part, as provided by this
 308-26  subchapter, to the extent of the 10 years' nonuse.
 308-27        (b)  A permit, certified filing, or certificate of
  309-1  adjudication or a portion of a permit, certified filing, or
  309-2  certificate of adjudication is exempt from cancellation under
  309-3  Subsection (a):
  309-4              (1)  to the extent of the owner's participation in the
  309-5  Conservation Reserve Program authorized by the Food Security Act,
  309-6  Pub.L. No. 99-198, Secs.  1231-1236, 99 Stat. 1354, 1509-1514
  309-7  (1985)  or a similar governmental program; or
  309-8              (2)  if any portion of the water authorized to be used
  309-9  pursuant to a permit, certified filing, or certificate of
 309-10  adjudication has been used in accordance with a water management
 309-11  plan approved by the commission.  (Sec. 11.173, Water Code.)
 309-12        Sec. 11.174.  Commission May Initiate Proceedings.  When the
 309-13  commission finds that its records do not show that some portion of
 309-14  the water has been used during the past 10 years, the executive
 309-15  director may initiate proceedings, terminated by public hearing, to
 309-16  cancel the permit, certified filing, or certificate of adjudication
 309-17  in whole or in part.  (Sec. 11.174, Water Code.)
 309-18        Sec. 11.175.  Notice.  (a)  At least 45 days before the date
 309-19  of the hearing, the commission shall send notice of the hearing to
 309-20  the holder of the permit, certified filing, or certificate of
 309-21  adjudication being considered for cancellation in whole or in part.
 309-22  Notice shall be sent by certified mail, return receipt requested,
 309-23  to the last address shown by the records of the commission.  The
 309-24  commission shall also send notice by regular mail to all other
 309-25  holders of permits, certified filings, certificates of
 309-26  adjudication, and claims of unadjudicated water rights filed
 309-27  pursuant to Section 11.303 in the same watershed.
  310-1        (b)  The commission shall also have the notice of the hearing
  310-2  published once a week for two consecutive weeks, at least 30 days
  310-3  before the date of the hearing, in a newspaper published in each
  310-4  county in which diversion of water from the source of supply was
  310-5  authorized or proposed to be made and in each county in which the
  310-6  water was authorized or proposed to be used, as shown by the
  310-7  records of the commission.  If in any such county no newspaper is
  310-8  published, then the notice may be published in a newspaper having
  310-9  general circulation in the county.  (Sec. 11.175, Water Code.)
 310-10        Sec. 11.176.  Hearing.  The commission shall hold a hearing
 310-11  and shall give the holder of the permit, certified filing, or
 310-12  certificate of adjudication and other interested persons an
 310-13  opportunity to be heard and to present evidence on any matter
 310-14  pertinent to the questions at issue.  (Sec. 11.176, Water Code.)
 310-15        Sec. 11.177.  Commission Finding; Action.  (a)  At the
 310-16  conclusion of the hearing, the commission shall cancel the permit,
 310-17  certified filing, or certificate of adjudication in whole or in
 310-18  part to the extent that it finds that:
 310-19              (1)  the water or any portion of the water appropriated
 310-20  under the permit, certified filing, or certificate of adjudication
 310-21  has not been put to an authorized beneficial use during the 10-year
 310-22  period;
 310-23              (2)  the holder has not used reasonable diligence in
 310-24  applying the water or the unused portion of the water to an
 310-25  authorized beneficial use; and
 310-26              (3)  the holder has not been justified in the nonuse or
 310-27  does not then have a bona fide intention of putting the water or
  311-1  the unused portion of the water to an authorized beneficial use
  311-2  within a reasonable time after the hearing.
  311-3        (b)  In determining what constitutes a justified nonuse and a
  311-4  reasonable time as used in Subsection (a)(3), the commission shall
  311-5  give consideration to:
  311-6              (1)  the expenditures made or obligations incurred by
  311-7  the holder in connection with the permit, certified filing, or
  311-8  certificate of adjudication;
  311-9              (2)  the purpose to which the water is to be applied;
 311-10              (3)  the priority of the purpose;
 311-11              (4)  the amount of time usually necessary to put water
 311-12  to a beneficial use for the same purpose when diligently developed;
 311-13  and
 311-14              (5)  whether at all times during the 10-year period
 311-15  there was rainfall adequate to enable the use of all or part of the
 311-16  water authorized to be appropriated under the permit, certified
 311-17  filing, or certificate of adjudication.  (Sec. 11.177, Water Code.)
 311-18        Sec. 11.178.  Reservoir.  If the holder of a permit,
 311-19  certified filing, or certificate of adjudication has facilities for
 311-20  the storage of water in a reservoir, the commission may allow him
 311-21  to retain the impoundment to the extent of the conservation storage
 311-22  capacity of the reservoir for domestic, livestock, or recreation
 311-23  purposes.  (Sec. 11.183, Water Code.)
 311-24        Sec. 11.179.  Municipal Certified Filing.  Regardless of
 311-25  other provisions of this subchapter, no portion of a certified
 311-26  filing held by a city, town, village, or municipal water district,
 311-27  authorizing the use of water for municipal purposes, shall be
  312-1  cancelled if water has been put to use under the certified filing
  312-2  for municipal purposes at any time during the 10-year period
  312-3  immediately preceding the institution of cancellation proceedings.
  312-4  (Sec. 11.184, Water Code.)
  312-5        Sec. 11.180.  Effect of Inaction.  Failure to initiate
  312-6  cancellation proceedings under this subchapter does not validate or
  312-7  improve the status of any permit, certified filing, or certificate
  312-8  of adjudication in whole or in part.  (Sec. 11.185, Water Code.)
  312-9        Sec. 11.181.  Subsequent Proceedings on Same Water Right.
 312-10  Once cancellation proceedings have been initiated against a
 312-11  particular permit, certified filing, or certificate of adjudication
 312-12  and a hearing has been held, further cancellation proceedings shall
 312-13  not be initiated against the same permit, certified filing, or
 312-14  certificate of adjudication within the five-year period immediately
 312-15  following the date of the hearing.  (Sec. 11.186, Water Code.)
 312-16            (Sections 11.182-11.200 reserved for expansion)
 312-17                        SUBCHAPTER F.  WETLANDS
 312-18        Sec. 11.201.  Short Title.  This subchapter may be cited as
 312-19  the Wetlands Act.  (Sec. 11.501, Water Code.)
 312-20        Sec. 11.202.  Definitions.  In this subchapter:
 312-21              (1)  "Wetlands" within the State of Texas, for purposes
 312-22  of the Clean Water Act, 33 U.S.C. 1311, 1344; the Erodible Land and
 312-23  Wetland Conservation and Reserve Program, 16 U.S.C. 3801-3845; the
 312-24  Emergency Wetlands Resources Act of 1986, 16 U.S.C. 3901-3932; the
 312-25  National Environmental Policy Act of 1969, 42 U.S.C. 4321-4370a,
 312-26  all statutory foundation for the Federal Wildlife Service's
 312-27  National Wetlands Inventory mapping, including the Water Bank
  313-1  Program for Wetlands Preservation, 16 U.S.C. 1301-1311; the Water
  313-2  Resources development project (wetland areas), 42 U.S.C. 1962d-5e;
  313-3  and the Migratory Bird Conservation Act, 16 U.S.C. 715-715r; and
  313-4  all Texas laws, rules, and regulations adopted pursuant to the
  313-5  Administrative Procedure and Texas Register Act (Article 6252-13a,
  313-6  Vernon's Texas Civil Statutes) and interpretation and
  313-7  implementation of any kind whatsoever of both federal and state
  313-8  laws by agencies of the state, including any amendment or revision
  313-9  thereto, relating to wetlands, means an area, including a swamp,
 313-10  marsh, bog, prairie pothole, or similar area, having a predominance
 313-11  of hydric soils that are inundated or saturated by surface or
 313-12  groundwater at a frequency and duration sufficient to support and
 313-13  that under normal circumstances supports the growth and
 313-14  regeneration of hydrophytic vegetation.
 313-15              (2)  "Hydric soil" means soil that, in its undrained
 313-16  condition, is saturated, flooded, or ponded long enough during a
 313-17  growing season to develop an anaerobic condition that supports the
 313-18  growth and regeneration of hydrophytic vegetation.
 313-19              (3)  "Hydrophytic vegetation" means a plant growing in:
 313-20  water or a substrate that is at least periodically deficient in
 313-21  oxygen during a growing season as a result of excessive water
 313-22  content.
 313-23              (4)  "Wetlands" does not include:
 313-24                    (A)  irrigated acreage used as farmland;
 313-25                    (B)  man-made wetlands of less than one acre; or
 313-26                    (C)  man-made wetlands not constructed with
 313-27  wetland creation as a stated objective, including but not limited
  314-1  to impoundments made for the purpose of soil and water conservation
  314-2  which have been approved or requested by soil and water
  314-3  conservation districts.  (Sec. 11.502, Water Code.)
  314-4        Sec. 11.203.  Applicability to Man-Made Wetlands.  Section
  314-5  11.202(4)(C) applies only to man-made wetlands the construction or
  314-6  creation of which commences on or after August 28, 1989.
  314-7  (Sec. 11.503, Water Code.)
  314-8        Sec. 11.204.  Applicability to Surface Mining and
  314-9  Reclamation.  This subchapter shall not apply to surface mining and
 314-10  reclamation.  (Sec. 11.504, Water Code.)
 314-11        Sec. 11.205.  Applicability to State Revolving Loan Fund
 314-12  Program.  This subchapter shall not apply to the state revolving
 314-13  loan fund program.  (Sec. 11.505, Water Code.)
 314-14        Sec. 11.206.  Conflict Between State and Federal Definitions.
 314-15  If the state definition conflicts with the federal definition in
 314-16  any manner, the federal definition prevails.  (Sec. 11.506, Water
 314-17  Code.)
 314-18            (Sections 11.207-11.300 reserved for expansion)
 314-19             SUBCHAPTER G.  WATER RIGHTS ADJUDICATION ACT
 314-20        Sec. 11.301.  Short Title.  This subchapter may be cited as
 314-21  the Water Rights Adjudication Act.  (Sec. 11.301, Water Code.)
 314-22        Sec. 11.302.  Declaration of Policy.  The conservation and
 314-23  best utilization of the water resources of this state are a public
 314-24  necessity, and it is in the interest of the people of the state to
 314-25  require recordation with the commission of claims of water rights
 314-26  which are presently unrecorded, to limit the exercise of these
 314-27  claims to actual use, and to provide for the adjudication and
  315-1  administration of water rights to the end that the surface-water
  315-2  resources of the state may be put to their greatest beneficial use.
  315-3  Therefore, this subchapter is in furtherance of the public rights,
  315-4  duties, and functions mentioned in this section and in response to
  315-5  the mandate expressed in Article XVI, Section 59, of the Texas
  315-6  Constitution and is in the exercise of the police powers of the
  315-7  state in the interest of the public welfare.  (Sec. 11.302, Water
  315-8  Code.)
  315-9        Sec. 11.303.  Recordation and Limitation of Certain Water
 315-10  Rights Claims.  (a)  This section applies to:
 315-11              (1)  claims of riparian water rights;
 315-12              (2)  claims under Section 11.143 to impound, divert, or
 315-13  use state water for other than domestic or livestock purposes, for
 315-14  which no permit has been issued;
 315-15              (3)  claims of water rights under the Irrigation Acts
 315-16  of 1889 and 1895  which were not filed with the State Board of
 315-17  Water Engineers in accordance with the Irrigation Act of 1913, as
 315-18  amended; and
 315-19              (4)  other claims of water rights except claims under
 315-20  permits or certified filings.
 315-21        (b)  Any claim to which this section applies shall be
 315-22  recognized only if valid under existing law and only to the extent
 315-23  of the maximum actual application of water to beneficial use
 315-24  without waste during any calendar year from 1963 to 1967,
 315-25  inclusive.  However, in any case where a claimant of a riparian
 315-26  right has prior to August 28, 1967, commenced or completed the
 315-27  construction of works designed to apply a greater quantity of water
  316-1  to beneficial use, the right shall be recognized to the extent of
  316-2  the maximum amount of water actually applied to beneficial use
  316-3  without waste during any calendar year from 1963 to 1970,
  316-4  inclusive.
  316-5        (c)  On or before September 1, 1969, every person claiming a
  316-6  water right to which this section applies shall file with the
  316-7  commission a statement setting forth:
  316-8              (1)  the name and address of the claimant;
  316-9              (2)  the location and the nature of the right claimed;
 316-10              (3)  the stream or watercourse and the river basin in
 316-11  which the right is claimed;
 316-12              (4)  the date of commencement of works;
 316-13              (5)  the dates and volumes of use of water; and
 316-14              (6)  other information the commission may require to
 316-15  show the nature and extent of the claim.
 316-16        (d)  A person who files a statement as provided in this
 316-17  section shall certify under oath that the statements made in
 316-18  support of his claim are true and correct to the best of his
 316-19  knowledge and belief.
 316-20        (e)  A claimant who desires recognition of a right based on
 316-21  use from 1968 to 1970, inclusive, as provided in Subsection (b)
 316-22  shall file an additional sworn statement on or before July 1, 1971.
 316-23        (f)  The commission shall prescribe forms for the sworn
 316-24  statements required by this section, but use of the commission
 316-25  forms is not mandatory.
 316-26        (g)  On or before January 1, 1968, and June 1, 1969, the
 316-27  commission shall cause notice of the requirements of this section
  317-1  to be published once each week for two consecutive weeks in
  317-2  newspapers having general circulation in each county of the state
  317-3  and by first-class mail to each user of surface water who has filed
  317-4  a report of water use with the commission.
  317-5        (h)  On sworn petition, notice, and hearing as prescribed for
  317-6  applications for permits and upon finding of extenuating
  317-7  circumstances and good cause shown for failure to timely file, the
  317-8  commission may authorize the filing of the sworn statement or
  317-9  statements required by this section until entry of a preliminary
 317-10  determination of claims of water rights in accordance with Section
 317-11  11.309 which includes the area described in the petition or, if a
 317-12  preliminary determination has not been entered, until September 1,
 317-13  1974.
 317-14        (i)  Since the filing of all claims to use public water is
 317-15  necessary for the conservation and best utilization of the water
 317-16  resources of the state, failure to file a sworn statement in
 317-17  substantial compliance with this section extinguishes and bars any
 317-18  claim of water rights to which this section applies.
 317-19        (j)  A sworn statement submitted under this section is
 317-20  binding on the person submitting it and his successors in interest,
 317-21  but is not binding on the commission or any other person in
 317-22  interest.
 317-23        (k)  Nothing in this section shall be construed to recognize
 317-24  any water right which did not exist before August 28, 1967.
 317-25        (l)  This section does not apply to use of water for domestic
 317-26  or livestock purposes.  (Sec. 11.303, Water Code.)
 317-27        Sec. 11.304.  Adjudication of Water Rights.  The water rights
  318-1  in any stream or segment of a stream may be adjudicated as provided
  318-2  in this subchapter:
  318-3              (1)  on the commission's own motion;
  318-4              (2)  on petition to the commission signed by 10 or more
  318-5  claimants of water rights from the source of supply; or
  318-6              (3)  on petition of the executive director.
  318-7  (Sec. 11.304, Water Code.)
  318-8        Sec. 11.305.  Investigation.  (a)  Promptly after a petition
  318-9  is filed under Section 11.304, the commission shall consider
 318-10  whether the adjudication would be in the public interest.  If the
 318-11  commission finds that an adjudication would be in the public
 318-12  interest, it shall enter an order to that effect, designating the
 318-13  stream or segment to be adjudicated.  The executive director shall
 318-14  have an investigation made of the area involved in order to gather
 318-15  relevant data and information essential to the proper understanding
 318-16  of the claims of water rights involved.  The results of the
 318-17  investigation shall be reduced to writing and made a matter of
 318-18  record in the commission office.
 318-19        (b)  In connection with the investigation, the executive
 318-20  director shall have a map or plat made showing with substantial
 318-21  accuracy the course of the stream or segment and the location of
 318-22  reservoirs, diversion works, and places of use, including lands
 318-23  which are being irrigated or have facilities for irrigation.
 318-24  (Sec. 11.305, Water Code.)
 318-25        Sec. 11.306.  Notice of Adjudication.  (a)  The commission
 318-26  shall prepare a notice of adjudication which describes the stream
 318-27  or segment to be adjudicated and the date by which all claims of
  319-1  water rights in the stream or segment shall be filed with the
  319-2  commission.  The date shall not be less than 90 days after the date
  319-3  the notice is issued.
  319-4        (b)  The notice shall be published once a week for two
  319-5  consecutive weeks in one or more newspapers having general
  319-6  circulation in the counties in which the stream or segment is
  319-7  located.
  319-8        (c)  The notice shall also be sent by first-class mail to
  319-9  each claimant of water rights whose diversion is within the stream
 319-10  or segment to be adjudicated, to the extent that the claimants can
 319-11  reasonably be ascertained from the records of the commission.
 319-12  (Sec. 11.306, Water Code.)
 319-13        Sec. 11.307.  Filing of Sworn Claims.  (a)  Every person
 319-14  claiming a water right of any nature, except for domestic or
 319-15  livestock purposes, from the stream or segment under adjudication
 319-16  shall file a sworn claim with the commission within the time
 319-17  prescribed in the notice of adjudication, including any extensions
 319-18  of the prescribed time, setting forth:
 319-19              (1)  the name and post-office address of the claimant;
 319-20              (2)  the location and nature of the right claimed,
 319-21  including a description of any permit or certified filing under
 319-22  which the claim is made;
 319-23              (3)  the purpose of the use;
 319-24              (4)  a description of works and irrigated land; and
 319-25              (5)  all other information necessary to show the nature
 319-26  and extent of the claim.
 319-27        (b)  The commission shall prescribe forms for claims, but use
  320-1  of the commission forms is not mandatory.  (Sec. 11.307, Water
  320-2  Code.)
  320-3        Sec. 11.308.  Hearings on Claims; Notice.  The commission
  320-4  shall set a time and a place for hearing all claims.  Not less than
  320-5  30 days before commencement of the hearings, the commission shall
  320-6  give notice of the hearings by certified mail to all persons who
  320-7  have filed claims in accordance with Section 11.307, or this notice
  320-8  may be included in the notice of adjudication provided in Section
  320-9  11.306.   The hearings shall be conducted as provided in Section
 320-10  11.337.  (Sec. 11.308, Water Code.)
 320-11        Sec. 11.309.  Preliminary Determination of Claims.  (a)  On
 320-12  completion of the hearings, the commission shall make a preliminary
 320-13  determination of the claims to water rights under adjudication.
 320-14        (b)  One copy of the preliminary determination shall be
 320-15  furnished without charge to each person who filed a claim in
 320-16  accordance with Section 11.307.  Additional copies of the
 320-17  preliminary determination shall be made available for public
 320-18  inspection at convenient locations throughout the river basin, as
 320-19  designated by the commission.  Copies shall also be made available
 320-20  to other interested persons at a reasonable price, based on the
 320-21  cost of reproduction.  (Sec. 11.309, Water Code.)
 320-22        Sec. 11.310.  Evidence Open to Inspection.  All evidence
 320-23  presented to or considered by the commission shall be open to
 320-24  public inspection for a period of not less than 60 days, as fixed
 320-25  by the commission, after the notice prescribed in Section 11.312 is
 320-26  issued.  (Sec. 11.310, Water Code.)
 320-27        Sec. 11.311.  Date for Filing Contests.  The commission shall
  321-1  set a date for filing contests on the preliminary determination,
  321-2  which date shall not be less than 30 days after the period for
  321-3  public inspection of the evidence has closed.  (Sec. 11.311, Water
  321-4  Code.)
  321-5        Sec. 11.312.  Notice of Preliminary Determination; Copies.
  321-6  (a)  Promptly after the preliminary determination is made as
  321-7  provided in Section 11.309, the commission shall publish notice of
  321-8  the determination once a week for two consecutive weeks in one or
  321-9  more newspapers having general circulation in the river basin in
 321-10  which the stream or segment that is the subject of the adjudication
 321-11  is located.
 321-12        (b)  The commission shall also send notice by first-class
 321-13  mail to each claimant of water rights within the river basin in
 321-14  which the stream or segment is located, to the extent that the
 321-15  claimants can be reasonably ascertained from the records of the
 321-16  commission.
 321-17        (c)  Each notice shall state:
 321-18              (1)  the place and the period of time that the
 321-19  preliminary determination and evidence presented to or considered
 321-20  by the commission will be open for public inspection;
 321-21              (2)  the locations throughout the river basin where
 321-22  copies of the preliminary determination will be available for
 321-23  public inspection;
 321-24              (3)  the method of ordering copies of the preliminary
 321-25  determination and the charge for copies;
 321-26              (4)  the date by which contests on the preliminary
 321-27  determination must be filed.  (Sec. 11.312, Water Code.)
  322-1        Sec. 11.313.  Filing Contests.  (a)  Any water right claimant
  322-2  affected by the preliminary determination, including any claimant
  322-3  to water rights within the river basin but outside the stream or
  322-4  segment under adjudication, who disputes the preliminary
  322-5  determination may within the time for filing contests prescribed by
  322-6  the commission in the notice, including any extension of the time,
  322-7  file a written contest with the commission, stating with reasonable
  322-8  certainty the grounds of his contest.
  322-9        (b)  The statement filed to contest a preliminary
 322-10  determination must be verified by an affidavit of the contestant,
 322-11  his agent, or his attorney.
 322-12        (c)  If the contest is directed against the preliminary
 322-13  determination of the water rights of other claimants, a copy shall
 322-14  be served on each of these claimants or his attorney by certified
 322-15  mail, and proof of service shall be filed with the commission.
 322-16  (Sec. 11.313, Water Code.)
 322-17        Sec. 11.314.  Hearing on Contest; Notice.  After the time for
 322-18  filing contests has expired, the commission shall prepare a notice
 322-19  setting forth the part of the preliminary determination to which
 322-20  each contest is directed and the time and place of a hearing on the
 322-21  contest.  The notice shall be sent to each claimant of water rights
 322-22  within the river basin in which the stream or segment is located,
 322-23  to the extent that the claimants can be reasonably ascertained from
 322-24  the records of the commission.  The hearing shall be conducted as
 322-25  provided in Section 11.337.  (Sec. 11.314, Water Code.)
 322-26        Sec. 11.315.  Final Determination.  On completion of the
 322-27  hearings on all contests, the commission shall make a final
  323-1  determination of the claims to water rights under adjudication.
  323-2  The commission shall send a copy of the final determination and any
  323-3  modification of the final determination to each claimant whose
  323-4  rights are adjudicated and to each contesting party.  (Sec. 11.315,
  323-5  Water Code.)
  323-6        Sec. 11.316.  Application for Rehearing.  Within 30 days from
  323-7  the date of the final determination, any affected party may apply
  323-8  to the commission for a rehearing.  Applications for rehearing
  323-9  which in the opinion of the commission are without merit may be
 323-10  denied without notice to other parties, but no application for
 323-11  rehearing shall be granted without notice to each claimant whose
 323-12  rights are adjudicated and to each contesting party.  (Sec. 11.316,
 323-13  Water Code.)
 323-14        Sec. 11.317.  Filing Final Determination With District Court.
 323-15  (a)  As soon as practicable after the disposition of all
 323-16  applications for rehearing, the commission shall file a certified
 323-17  copy of the final determination, together with all evidence
 323-18  presented to or considered by the commission, in a district court
 323-19  of any county in which the stream or segment under adjudication is
 323-20  located.  However, if the stream or segment under adjudication
 323-21  includes all or parts of three or more counties and if 10 or more
 323-22  affected persons who appeared in the proceedings petition the
 323-23  commission to do so, the commission shall file the action in a
 323-24  convenient district court of a judicial district which is not
 323-25  within the river basin of the stream or segment under adjudication.
 323-26        (b)  The commission shall obtain an order from the court
 323-27  fixing a time not less than 30 days from the date of the order for
  324-1  the filing of exceptions to the final determination and also fixing
  324-2  a time not less than 60 days from the date of the order for the
  324-3  commencement of hearings on exceptions.
  324-4        (c)  The commission shall immediately give written notice of
  324-5  the court order by certified mail to all parties who appeared in
  324-6  the proceedings before the commission.  The commission shall file
  324-7  proof of the service with the court.  (Sec. 11.317, Water Code.)
  324-8        Sec. 11.318.  Exceptions to Final Determination.  (a)  Any
  324-9  affected person who appeared in the proceeding before the
 324-10  commission may file exceptions to the final determination.  An
 324-11  exception must state with a reasonable degree of certainty the
 324-12  grounds for the exception and must specify the particular
 324-13  paragraphs and pages of the determination to which the exception is
 324-14  taken.
 324-15        (b)  Three copies of the exceptions shall be filed in court,
 324-16  and a copy shall be served on the commission.  The commission shall
 324-17  make copies of all exceptions available at a reasonable price,
 324-18  based on the cost of reproduction.  (Sec. 11.318, Water Code.)
 324-19        Sec. 11.319.  Hearings on Exceptions.  (a)  The court shall
 324-20  hear any exceptions that have been filed.  The commission and all
 324-21  affected persons who appeared in the proceedings before the
 324-22  commission are entitled to appear and be heard on the exceptions.
 324-23  The court may permit other parties in interest to appear and be
 324-24  heard for good cause shown.
 324-25        (b)  The court may conduct nonjury hearings and proceedings
 324-26  at any convenient location within the state.  Actual expenses
 324-27  incurred by the court outside its judicial district shall be taxed
  325-1  as costs.  (Sec. 11.319, Water Code.)
  325-2        Sec. 11.320.  Scope of Judicial Review.  (a)  In passing on
  325-3  exceptions, the court shall determine all issues of law and fact
  325-4  independently of the commission's determination.  The substantial
  325-5  evidence rule shall not be used.  The court shall not consider any
  325-6  exception which was not brought to the commission's attention by
  325-7  application for rehearing.  The court shall not consider any issue
  325-8  of fact raised by an exception unless the record of evidence before
  325-9  the commission reveals that the question was genuinely in issue
 325-10  before the commission.
 325-11        (b)  A party in interest may demand a jury trial of any issue
 325-12  of fact, but the court may in its discretion have a separate trial
 325-13  with a separate jury of any such issue.
 325-14        (c)  The legislature declares that the provisions of this
 325-15  section are not severable from the remainder of this subchapter and
 325-16  that this subchapter would not have been passed without the
 325-17  inclusion of this section.  If this section is for any reason held
 325-18  invalid, unconstitutional, or inoperative in any way, the holding
 325-19  applies to the entire subchapter so that the entire subchapter is
 325-20  null and void.  (Sec. 11.320, Water Code.)
 325-21        Sec. 11.321.  Evidence.  Any exception heard by the court
 325-22  without a jury may be resolved on the record of evidence before the
 325-23  commission, or the court may take additional evidence or direct
 325-24  that additional evidence be heard by the commission.  (Sec. 11.321,
 325-25  Water Code.)
 325-26        Sec. 11.322.  Final Decree.  (a)  After the final hearing,
 325-27  the court shall enter a decree affirming or modifying the order of
  326-1  the commission.
  326-2        (b)  The court may assess the costs as it deems just.
  326-3        (c)  An appeal may be taken from the decree of the court in
  326-4  the same manner and with the same effect as in other civil cases.
  326-5        (d)  The final decree in every water right adjudication is
  326-6  final and conclusive as to all existing and prior rights and claims
  326-7  to the water rights in the adjudicated stream or segment of a
  326-8  stream.  The decree is binding on all claimants to water rights
  326-9  outside the adjudicated stream or segment of a stream.
 326-10        (e)  Except for domestic and livestock purposes or rights
 326-11  subsequently acquired by permit, a water right is not recognized in
 326-12  the adjudicated stream or segment of a stream unless the right is
 326-13  included in the final decree of the court.  (Sec. 11.322, Water
 326-14  Code.)
 326-15        Sec. 11.323.  Certificate of Adjudication.  (a)  When a final
 326-16  determination of the rights to the waters of a stream has been made
 326-17  in accordance with the procedure provided in this subchapter and
 326-18  the time for a rehearing has expired, the commission shall issue to
 326-19  each person adjudicated a water right a certificate of
 326-20  adjudication, signed by the chairman and bearing the seal of the
 326-21  commission.
 326-22        (b)  In the certificate, the commission shall include:
 326-23              (1)  a reference to the final decree;
 326-24              (2)  the name and post-office address of the holder of
 326-25  the adjudicated right;
 326-26              (3)  the priority, extent, and purpose of the
 326-27  adjudicated right and, if the right is for irrigation, a
  327-1  description of the irrigated land; and
  327-2              (4)  all other information in the decree relating to
  327-3  the adjudicated right.  (Sec. 11.323, Water Code.)
  327-4        Sec. 11.324.  Recordation of Certificate.  (a)  The
  327-5  commission shall transmit the certificate of adjudication or a true
  327-6  copy to the county clerk of each county in which the appropriation
  327-7  is made.
  327-8        (b)  On receipt of the recording fee from the holder of the
  327-9  certificate, the county clerk shall file and record the certificate
 327-10  in a well-bound book provided and kept for that purpose only.  The
 327-11  clerk shall index the certificate alphabetically under the name of
 327-12  the holder of the certificate of adjudication and under the name of
 327-13  the stream or source of water supply.
 327-14        (c)  When a certificate of adjudication is filed and recorded
 327-15  as provided in this section, the county clerk shall deliver the
 327-16  certificate on demand to the holder.  (Sec. 11.324, Water Code.)
 327-17        Sec. 11.325.  Water Divisions.  The commission shall divide
 327-18  the state into water divisions for the purpose of administering
 327-19  adjudicated water rights.  Water divisions may be created from time
 327-20  to time as the necessity arises.  The divisions shall be
 327-21  constituted to secure the best protection to the holders of water
 327-22  rights and the most economical supervision on the part of the
 327-23  state.  (Sec. 11.325, Water Code.)
 327-24        Sec. 11.326.  Appointment of Watermaster.  (a)  The executive
 327-25  director may appoint one watermaster for each water division.
 327-26        (b)  A watermaster holds office until a successor is
 327-27  appointed.  The executive director may remove a watermaster at any
  328-1  time.
  328-2        (c)  The executive director may employ assistant watermasters
  328-3  and other employees necessary to aid a watermaster in the discharge
  328-4  of his duties.
  328-5        (d)  In a water division in which the office of watermaster
  328-6  is vacant, the executive director has the powers of a watermaster.
  328-7        (e)  The executive director shall supervise and generally
  328-8  direct the watermaster in the performance of his duties.  A
  328-9  watermaster is responsible to the executive director for the proper
 328-10  performance of his duties.
 328-11        (f)  A person dissatisfied with any action of a watermaster
 328-12  may apply to the executive director for relief.  (Sec. 11.326,
 328-13  Water Code.)
 328-14        Sec. 11.327.  Duties of Watermaster.  (a)  A watermaster
 328-15  shall divide the water of the streams or other sources of supply of
 328-16  his division in accordance with the adjudicated water rights.
 328-17        (b)  A watermaster shall regulate or cause to be regulated
 328-18  the controlling works of reservoirs and diversion works in time of
 328-19  water shortage, as is necessary because of the rights existing in
 328-20  the streams of his division, or as is necessary to prevent the
 328-21  waste of water or its diversion, taking, storage, or use in excess
 328-22  of the quantities to which the holders of water rights are lawfully
 328-23  entitled.
 328-24        (c)  A watermaster may regulate the distribution of water
 328-25  from any system of works that serves users whose rights have been
 328-26  separately determined.  (Sec. 11.327, Water Code.)
 328-27        Sec. 11.328.  Watermaster's Notice Posted.  If, in the
  329-1  performance of his duties, a watermaster regulates diversion works
  329-2  or the controlling works of reservoirs, he shall attach to the
  329-3  works a written notice, properly dated and signed, stating that the
  329-4  works have been properly regulated and are wholly under his
  329-5  control.  The notice is legal notice to all parties interested in
  329-6  the diversion and distribution of the water served by the diversion
  329-7  works or reservoir.  (Sec. 11.328, Water Code.)
  329-8        Sec. 11.329.  Compensation and Expenses of Watermaster.
  329-9  (a)  The commission shall pay the compensation and necessary
 329-10  expenses of a watermaster, assistant watermasters, and other
 329-11  necessary employees, but the holders of water rights that have been
 329-12  determined or adjudicated and are to be administered by the
 329-13  watermaster shall reimburse the commission for the compensation and
 329-14  expenses.  Necessary expenses may include costs associated with
 329-15  streamflow measurement and monitoring, water accounting, assessment
 329-16  billing and collection, and any other duties a watermaster may be
 329-17  required to perform under this subchapter.
 329-18        (b)  After the adjudication decree becomes final, the
 329-19  executive director shall notify each holder of water rights under
 329-20  the decree of the amount of compensation and expenses that will be
 329-21  required annually for the administration of the water rights so
 329-22  determined.
 329-23        (c)  The commission shall hold a public hearing to determine
 329-24  the apportionment of the costs of administration of adjudicated
 329-25  water rights among the holders of the rights.  After a public
 329-26  hearing, the commission shall issue an order assessing the annual
 329-27  cost against the holders of water rights to whom the water will be
  330-1  distributed under the final decree.  The commission shall equitably
  330-2  apportion the costs.  The executive director may provide for
  330-3  payments in installments and shall specify the dates by which
  330-4  payments shall be made to the commission.
  330-5        (d)  The executive director shall transmit all collections
  330-6  under this section to the state treasurer.
  330-7        (e)  No water shall be diverted, taken, or stored by, or
  330-8  delivered to, any person while he is delinquent in the payment of
  330-9  his assessed costs.
 330-10        (f)  An order of the commission assessing costs remains in
 330-11  effect until the commission issues a further order.  The commission
 330-12  may modify, revoke, or supersede an order assessing costs with a
 330-13  subsequent order.  The commission may issue supplementary orders
 330-14  from time to time to apply to new diversions.  (Sec. 11.329, Water
 330-15  Code.)
 330-16        Sec. 11.330.  Outlet for Free Passage of Water.  The owner of
 330-17  any works for the diversion or storage of water shall maintain a
 330-18  substantial headgate at the point of diversion, or a gate on each
 330-19  discharge pipe of a pumping plant, constructed so that it can be
 330-20  locked at the proper place by the watermaster, or a suitable outlet
 330-21  in a dam to allow the free passage of water that the owner of the
 330-22  dam is not entitled to divert or impound.  The commission shall
 330-23  adopt rules, and the executive director shall enforce the rules,
 330-24  governing the type and location of the headgates or gates and the
 330-25  outlets to allow the free passage of water.  (Sec. 11.330, Water
 330-26  Code.)
 330-27        Sec. 11.331.  Measuring Devices.  The commission, by rule,
  331-1  may require the owner of any works for the diversion, taking,
  331-2  storage, or distribution of water to construct and maintain
  331-3  suitable measuring devices at points that will enable the
  331-4  watermaster to determine the quantities of water to be diverted,
  331-5  taken, stored, released, or distributed in order to satisfy the
  331-6  rights of the respective users.  (Sec. 11.331, Water Code.)
  331-7        Sec. 11.332.  Installation of Flumes.  The commission, by
  331-8  rule, may require flumes to be installed along the line of any
  331-9  ditch if necessary for the protection of water rights or other
 331-10  property.  (Sec. 11.332, Water Code.)
 331-11        Sec. 11.333.  Failure to Comply With Commission Rules.  If
 331-12  the owner of waterworks using state water refuses or neglects to
 331-13  comply with the rules adopted pursuant to Section 11.330, 11.331,
 331-14  or 11.332, the executive director, after 10 days' notice or after a
 331-15  period of additional time that is reasonable under the
 331-16  circumstances, may direct the watermaster to make adjustments of
 331-17  the control works to prevent the owner of the works from diverting,
 331-18  taking, storing, or distributing any water until he has fully
 331-19  complied with the rules.  (Sec. 11.333, Water Code.)
 331-20        Sec. 11.334.  Suit Against Commission for Injury.  Any person
 331-21  who is injured by an act of the commission under this subchapter
 331-22  may bring suit against the commission to review the action or to
 331-23  obtain an injunction.  If the water right involved has been
 331-24  adjudicated as provided in this subchapter, the court shall issue
 331-25  an injunction only if it is shown that the commission has failed to
 331-26  carry into effect the decree adjudicating the water right.
 331-27  (Sec. 11.334, Water Code.)
  332-1        Sec. 11.335.  Administration of Water Rights Not Adjudicated.
  332-2  (a)  If any area in which water rights of record in the office of
  332-3  the commission have not been adjudicated, the claimants of the
  332-4  rights and the commission may enter into a written agreement for
  332-5  their administration.
  332-6        (b)  An agreement made under authority of this section shall
  332-7  provide:
  332-8              (1)  the basis and manner of distribution of the water
  332-9  to which the agreement relates;
 332-10              (2)  the services of a special watermaster, and
 332-11  assistants if necessary, to carry out the agreement; and
 332-12              (3)  the allocation, collection, and payment of the
 332-13  annual costs of administration.
 332-14        (c)  An agreement to administer unadjudicated water rights
 332-15  shall be recorded in the offices of the commission and of the
 332-16  county clerk of each county in which any of the works or lands
 332-17  affected by the agreement are located.
 332-18        (d)  The administration of water rights by agreement is
 332-19  governed by the provisions of this subchapter except as regards
 332-20  allocation and payment of the expenses of the administration.
 332-21        (e)  No agreement authorized by this section impairs any
 332-22  vested right to the use of water or creates any additional rights
 332-23  to the use of water.  (Sec. 11.335, Water Code.)
 332-24        Sec. 11.336.  Administration of Permits Issued After
 332-25  Adjudication.  Permits, other than temporary permits, that are
 332-26  issued by the commission to appropriate water from an adjudicated
 332-27  stream or segment are subject to administration in the same manner
  333-1  as is provided in this subchapter for adjudicated water rights.
  333-2  (Sec. 11.336, Water Code.)
  333-3        Sec. 11.337.  Hearings:  Notice and Procedure.  (a)  The
  333-4  commission shall give notice of a hearing or other proceeding it
  333-5  orders under this subchapter in the manner prescribed in the
  333-6  procedural rules of the commission, unless this subchapter
  333-7  specifically provides otherwise.
  333-8        (b)  In any proceeding in any part of the state, the
  333-9  commission may:
 333-10              (1)  take evidence, including the testimony of
 333-11  witnesses;
 333-12              (2)  administer oaths;
 333-13              (3)  issue subpoenas and compel the attendance of
 333-14  witnesses in the same manner as subpoenas are issued out of the
 333-15  courts of the state;
 333-16              (4)  compel witnesses to testify and give evidence; and
 333-17              (5)  order the taking of depositions and issue
 333-18  commissions for the taking of depositions in the same manner as
 333-19  depositions are obtained in civil actions.
 333-20        (c)  Evidence may be taken by a duly appointed reporter
 333-21  before the commission or before an authorized representative who
 333-22  has the power to administer oaths.
 333-23        (d)  If a person neglects or refuses to comply with an order
 333-24  or subpoena issued by the commission or refuses to testify on any
 333-25  matter about which he may be lawfully interrogated, the commission
 333-26  may apply to a district court of the county in which the proceeding
 333-27  is held to punish him in the manner provided by law for such
  334-1  disobedience in civil actions.
  334-2        (e)  The commission may adjourn its proceedings from time to
  334-3  time and from place to place.
  334-4        (f)  When a proceeding before the commission is concluded,
  334-5  the commission shall render a decision as to the matters concerning
  334-6  which the proceeding was held.  (Sec. 11.337, Water Code.)
  334-7        Sec. 11.338.  Cancellation of Water Rights.  Nothing in this
  334-8  subchapter recognizes any abandoned or cancelled water right or
  334-9  impairs in any way the power of the commission under general law to
 334-10  forfeit, cancel, or find abandoned any water right, including
 334-11  adjudicated water rights.  (Sec. 11.338, Water Code.)
 334-12        Sec. 11.339.  Underground Water Not Affected.  This
 334-13  subchapter does not apply to underground water as defined in
 334-14  Chapter 52, Water Code.  (Sec. 11.339, Water Code.)
 334-15        Sec. 11.340.  Abatement of Certain Civil Suits.  (a)  Nothing
 334-16  in this subchapter prevents or precludes a person who claims the
 334-17  right to divert water from a stream from filing and prosecuting to
 334-18  a conclusion a suit against other claimants of the right to divert
 334-19  or use water from the same stream.  However, if the commission has
 334-20  ordered a determination of water rights as provided in this
 334-21  subchapter or if the commission orders such a determination within
 334-22  90 days after notice of the filing of a suit, the suit shall be
 334-23  abated on the motion of the commission or any party in interest as
 334-24  to any issues involved in the water rights determination.
 334-25        (b)  If a suit is abated as provided in Subsection (a), the
 334-26  court may grant or continue any temporary relief necessary to
 334-27  preserve the status quo pending a final determination of the water
  335-1  rights involved.  (Sec. 11.340, Water Code.)
  335-2        Sec. 11.341.  Limitation on Actions.  This subchapter does
  335-3  not affect any action or proceeding instituted before August 28,
  335-4  1967, or any right accrued before that date except those
  335-5  specifically provided for in this subchapter.  (Sec. 11.341, Water
  335-6  Code.)
  335-7            (Sections 11.342-11.400 reserved for expansion)
  335-8              SUBCHAPTER H.  COURT-APPOINTED WATERMASTER
  335-9        Sec. 11.401.  Scope of Subchapter.  The provisions of this
 335-10  subchapter apply to a suit if:
 335-11              (1)  the state is a party;
 335-12              (2)  the purpose of the suit is to determine the right
 335-13  of the parties to divert or use water of a surface stream; and
 335-14              (3)  rights are asserted to use water in, or divert
 335-15  water to, not more than four counties.  (Sec. 11.401, Water Code.)
 335-16        Sec. 11.402.  Appointment and Authority of Watermaster.
 335-17  (a)  A court having jurisdiction over a suit described in Section
 335-18  11.401 may appoint a watermaster with power to allocate and
 335-19  distribute, under the supervision of the court, the water taken
 335-20  into judicial custody.
 335-21        (b)  The court may not appoint a watermaster with authority
 335-22  to act both upstream and downstream from an existing reservoir on
 335-23  any surface stream of the state.  However, once a watermaster is
 335-24  appointed, the construction of a new reservoir does not invalidate
 335-25  his appointment or restrict his authority over that portion of the
 335-26  stream contemplated by the original order of appointment.
 335-27        (c)  Under terms and conditions prescribed by the court, the
  336-1  watermaster may incur necessary expenses, appoint necessary
  336-2  deputies and assistants, and perform duties and assume
  336-3  responsibilities delegated to him by the court.  (Sec. 11.402,
  336-4  Water Code.)
  336-5        Sec. 11.403.  Compensation of Watermaster.  The court shall
  336-6  fix the compensation of the watermaster and his staff.
  336-7  (Sec. 11.403, Water Code.)
  336-8        Sec. 11.404.  Expenses and Assessment of Costs of
  336-9  Watermaster.  (a)  The trial court shall assess the costs and
 336-10  expenses of the watermaster and his staff against all persons
 336-11  receiving an allocation of the water in judicial custody.  The
 336-12  court shall assess the costs and expenses monthly or at other time
 336-13  intervals ordered by the court.
 336-14        (b)  The court shall assess the costs and expenses on the
 336-15  basis of:
 336-16              (1)  acreage;
 336-17              (2)  acre-feet of allocated water;
 336-18              (3)  per capita; or
 336-19              (4)  any other formula the court, after notice and
 336-20  hearing, determines to be the most equitable.
 336-21        (c)  During the pendency of an appeal, the trial court, in
 336-22  its discretion, may assess costs against some parties on one basis
 336-23  and against other parties on another basis.
 336-24        (d)  The costs and expenses are not to be taxed as ordinary
 336-25  court costs, but are to be considered costs necessary to protect
 336-26  the rights and privileges of the parties receiving allocations of
 336-27  water during the litigation and are to be paid by those parties.
  337-1  (Sec. 11.404, Water Code.)
  337-2        Sec. 11.405.  Failure to Pay Assessed Costs.  If the costs
  337-3  and expenses assessed are not paid within the time prescribed by
  337-4  the court, the court after notice and hearing may withdraw or limit
  337-5  allocations of water to any party failing or refusing to pay his
  337-6  share until all costs and expenses assessed against him are paid in
  337-7  full.  (Sec. 11.405, Water Code.)
  337-8        Sec. 11.406.  Judicial Custody of Water During Appeal.  If a
  337-9  party appeals the judgment of the trial court, that court may
 337-10  retain custody of the water which it has previously taken into
 337-11  judicial custody and over which it has appointed a watermaster.
 337-12  Until final judgment is entered in the case, the trial court has
 337-13  exclusive jurisdiction to administer, allocate, and distribute the
 337-14  water retained in its custody, as provided in Section 11.407.
 337-15  (Sec. 11.406, Water Code.)
 337-16        Sec. 11.407.  Allocation and Distribution of Water During
 337-17  Appeal.  During the pendency of an appeal, the trial court shall
 337-18  limit the allocation and distribution of the water in its custody
 337-19  to the parties adjudicated to have a valid right to use the water.
 337-20  However, if any party prosecutes an appeal and files a supersedeas
 337-21  bond, the trial court shall make any necessary adjustments in the
 337-22  water allocations and allocate to that party the same amount of
 337-23  water that he received during the proceedings in the trial court.
 337-24  (Sec. 11.407, Water Code.)
 337-25        Sec. 11.408.  Retention of Watermaster During Appeal.  During
 337-26  the pendency of an appeal, the trial court may retain the
 337-27  watermaster in office with the same authority he had during the
  338-1  trial proceedings.  (Sec. 11.408, Water Code.)
  338-2        Sec. 11.409.  Violations of Court Orders.  If a party
  338-3  violates any order of the trial court either during trial
  338-4  proceedings or during an appeal, the trial court may limit or
  338-5  withdraw his allocation of water until he corrects the violation to
  338-6  the satisfaction of the court.  (Sec. 11.409, Water Code.)
  338-7            (Sections 11.410-11.450 reserved for expansion)
  338-8            SUBCHAPTER I.  COMMISSION-APPOINTED WATERMASTER
  338-9        Sec. 11.451.  Commission Authority.  On petition of 25 or
 338-10  more holders of water rights in a river basin or segment of a river
 338-11  basin or on its own motion the commission may authorize the
 338-12  executive director to appoint a watermaster for a river basin or
 338-13  segment of a river basin if the commission finds that the rights of
 338-14  senior water rights holders in the basin or segment of the basin
 338-15  are threatened.  (Sec. 11.451, Water Code.)
 338-16        Sec. 11.452.  Procedure for Determination.  (a)  On receiving
 338-17  a petition for appointment of a watermaster or on its own motion,
 338-18  the commission shall call and hold a hearing to determine if a need
 338-19  exists for appointment of a watermaster for the river basin or
 338-20  segment of the river basin.
 338-21        (b)  At the hearing persons who hold water rights in the
 338-22  river basin or segment of the river basin may appear before the
 338-23  commission and submit testimony and evidence relating to the need
 338-24  for appointment of a watermaster.
 338-25        (c)  After the hearing, the commission shall make a written
 338-26  determination as to whether a threat exists to the rights of senior
 338-27  water rights holders in the river basin or segment of the river
  339-1  basin and shall issue an order either finding that a threat exists
  339-2  and directing appointment of a watermaster or denying appointment
  339-3  of a watermaster.  (Sec. 11.452, Water Code.)
  339-4        Sec. 11.453.  Appointment of Watermaster.  (a)  On issuance
  339-5  of an order under Section 11.452  directing appointment of a
  339-6  watermaster, the executive director shall appoint a watermaster for
  339-7  the river basin or segment of the river basin covered by the
  339-8  commission order.
  339-9        (b)  A person appointed as a watermaster under this section
 339-10  may not be:
 339-11              (1)  the holder of a water right in the river basin or
 339-12  segment of the river basin to be under his jurisdiction as
 339-13  watermaster;
 339-14              (2)  a purchaser of water from the holder of a water
 339-15  right in the river basin or segment of the river basin under his
 339-16  jurisdiction as watermaster; or
 339-17              (3)  a landowner of any land adjacent to the river or
 339-18  segment of the river under his jurisdiction as watermaster.
 339-19        (c)  A watermaster holds office until a successor is
 339-20  appointed.  The executive director may remove a watermaster at any
 339-21  time.
 339-22        (d)  The executive director may employ assistant watermasters
 339-23  and other employees necessary to aid a watermaster in the discharge
 339-24  of his duties.
 339-25        (e)  In a segment or basin in which the office of watermaster
 339-26  is vacant, the executive director has the powers of a watermaster.
 339-27        (f)  The executive director shall supervise and generally
  340-1  direct the watermaster in the performance of his duties.  A
  340-2  watermaster is responsible to the executive director for the proper
  340-3  performance of his duties.
  340-4        (g)  A person dissatisfied with any action of a watermaster
  340-5  may apply to the executive director for relief.  (Sec. 11.453,
  340-6  Water Code.)
  340-7        Sec. 11.454.  Duties and Authority of the Watermaster.  A
  340-8  watermaster as the agent of the commission and under the executive
  340-9  director's supervision shall:
 340-10              (1)  divide the water of the streams or other sources
 340-11  of supply of his segment or basin in accordance with the authorized
 340-12  water rights;
 340-13              (2)  regulate or cause to be regulated the controlling
 340-14  works of reservoirs and diversion works in time of water shortage,
 340-15  as is necessary because of the rights existing in the streams of
 340-16  his segment or basin, or as is necessary to prevent the waste of
 340-17  water or its diversion, taking, storage, or use in excess of the
 340-18  quantities to which the holders of water rights are lawfully
 340-19  entitled; and
 340-20              (3)  perform any other duties and exercise any
 340-21  authority directed by the commission.  (Sec. 11.454, Water Code.)
 340-22        Sec. 11.455.  Assessments.  The commission may assess the
 340-23  costs of the watermaster against all persons who hold water rights
 340-24  in the river basin or segment of the river basin under the
 340-25  watermaster's jurisdiction in accordance with Section 11.329.
 340-26  (Sec. 11.455, Water Code.)
 340-27        Sec. 11.456.  Maintaining Current Status.  (a)  To protect
  341-1  water rights holders in a river basin or segment of a river basin
  341-2  during the proceedings under Section 11.452, the commission may
  341-3  issue an order or orders at the beginning of the proceedings under
  341-4  Section 11.452 or may request the attorney general to seek
  341-5  injunctive relief to protect the water rights holders during the
  341-6  proceedings.
  341-7        (b)  On request of the commission, the attorney general shall
  341-8  seek injunctive relief to carry out the purpose of Subsection (a).
  341-9        (c)  The commission is not required to comply with the
 341-10  requirements of the Administrative Procedure and Texas Register Act
 341-11  (Article 6252-13a, Vernon's Texas Civil Statutes) in issuing orders
 341-12  under Subsection (a) and there is no right of appeal from those
 341-13  orders.  (Sec. 11.456, Water Code.)
 341-14        Sec. 11.457.  Assistance to Watermaster.  The executive
 341-15  director shall provide the watermaster with such staff and
 341-16  facilities as are necessary to carry out this subchapter.
 341-17  (Sec. 11.457, Water Code.)
 341-18        Sec. 11.458.  Application of Subchapter.  This subchapter
 341-19  shall not apply to any river basin or segment of a river basin in
 341-20  which a watermaster has been appointed pursuant to Subchapter G or
 341-21  H of this chapter.  (Sec. 11.458, Water Code.)
 341-22                 CHAPTER 12.  WATER RATES AND SERVICES
 341-23                   SUBCHAPTER A.  GENERAL PROVISIONS
 341-24        Sec. 12.001.  Legislative Policy and Purpose.  (a)  This
 341-25  chapter is adopted to protect the public interest inherent in the
 341-26  rates and services of retail public utilities.
 341-27        (b)  The legislature finds that:
  342-1              (1)  retail public utilities are by definition
  342-2  monopolies in the areas they serve;
  342-3              (2)  the normal forces of competition that operate to
  342-4  regulate prices in a free enterprise society do not operate for the
  342-5  reason stated in Subdivision (1); and
  342-6              (3)  retail public utility rates, operations, and
  342-7  services are regulated by public agencies, with the objective that
  342-8  this regulation will operate as a substitute for competition.
  342-9        (c)  The purpose of this chapter is to establish a
 342-10  comprehensive regulatory system that is adequate to the task of
 342-11  regulating retail public utilities to assure rates, operations, and
 342-12  services that are just and reasonable to the consumers and to the
 342-13  retail public utilities.  (Sec. 13.001, Water Code.)
 342-14        Sec. 12.002.  Definitions.  In this chapter:
 342-15              (1)  "Affected person" means any retail public utility
 342-16  affected by any action of the regulatory authority, any person or
 342-17  corporation whose utility service or rates are affected by any
 342-18  proceeding before the regulatory authority, or any person or
 342-19  corporation that is a competitor of a retail public utility with
 342-20  respect to any service performed by the retail public utility or
 342-21  that desires to enter into competition.
 342-22              (2)  "Affiliated interest" or "affiliate" means:
 342-23                    (A)  any person or corporation owning or holding
 342-24  directly or indirectly five percent or more of the voting
 342-25  securities of a utility;
 342-26                    (B)  any person or corporation in any chain of
 342-27  successive ownership of five percent or more of the voting
  343-1  securities of a utility;
  343-2                    (C)  any corporation five percent or more of the
  343-3  voting securities of which is owned or controlled directly or
  343-4  indirectly by a utility;
  343-5                    (D)  any corporation five percent or more of the
  343-6  voting securities of which is owned or controlled directly or
  343-7  indirectly by any person or corporation that owns or controls
  343-8  directly or indirectly five percent or more of the voting
  343-9  securities of any utility or by any person or corporation in any
 343-10  chain of successive ownership of five percent of those utility
 343-11  securities;
 343-12                    (E)  any person who is an officer or director of
 343-13  a utility or of any corporation in any chain of successive
 343-14  ownership of five percent or more of voting securities of a public
 343-15  utility;
 343-16                    (F)  any person or corporation that the
 343-17  commission, after notice and hearing, determines actually exercises
 343-18  any substantial influence or control over the policies and actions
 343-19  of a utility or over which a utility exercises such control or that
 343-20  is under common control with a utility, such control being the
 343-21  possession directly or indirectly of the power to direct or cause
 343-22  the direction of the management and policies of another, whether
 343-23  that power is established through ownership or voting of securities
 343-24  or by any other direct or indirect means; or
 343-25                    (G)  any person or corporation that the
 343-26  commission, after notice and hearing, determines is exercising
 343-27  substantial influence over the policies and actions of the utility
  344-1  in conjunction with one or more persons or corporations with which
  344-2  they are related by ownership or blood relationship, or by action
  344-3  in concert, that together they are affiliated within the meaning of
  344-4  this section, even though no one of them alone is so affiliated.
  344-5              (3)  "Allocations" means, for all retail public
  344-6  utilities, the division of plant, revenues, expenses, taxes and
  344-7  reserves between municipalities or between municipalities and
  344-8  unincorporated areas, where those items are used for providing
  344-9  water or sewer utility service in a municipality or for a
 344-10  municipality and unincorporated areas.
 344-11              (4)  "Commissioner" means a member of the commission.
 344-12              (5)  "Corporation" means any corporation, joint-stock
 344-13  company, or association, domestic or foreign, and its lessees,
 344-14  assignees, trustees, receivers, or other successors in interest,
 344-15  having any of the powers or privileges of corporations not
 344-16  possessed by individuals or partnerships but does not include
 344-17  municipal corporations unless expressly provided in this chapter.
 344-18              (6)  "Facilities" means all the plant and equipment of
 344-19  a retail public utility, including all tangible and intangible real
 344-20  and personal property without limitation, and any and all means and
 344-21  instrumentalities in any manner owned, operated, leased, licensed,
 344-22  used, controlled, furnished, or supplied for, by, or in connection
 344-23  with the business of any retail public utility.
 344-24              (7)  "Incident of tenancy" means water or sewer
 344-25  service, provided to tenants of rental property, for which no
 344-26  separate or additional service fee is charged other than the rental
 344-27  payment.
  345-1              (8)  "Member" means a person who holds a membership in
  345-2  a water supply or sewer service corporation and who is a record
  345-3  owner of a fee simple title to property in an area served by a
  345-4  water supply or sewer service corporation.  The term does not
  345-5  include a person or entity that holds an interest in property
  345-6  solely as security for the performance of an obligation, or that
  345-7  only builds on or develops the property for sale to others.  In
  345-8  determining member control of a water supply or sewer service
  345-9  corporation, a person is entitled to only one vote regardless of
 345-10  the number of memberships the person owns.
 345-11              (9)  "Municipality" means cities existing, created, or
 345-12  organized under the general, home-rule, or special laws of this
 345-13  state.
 345-14              (10)  "Municipally owned utility" means any utility
 345-15  owned, operated, and controlled by a municipality or by a nonprofit
 345-16  corporation whose directors are appointed by one or more
 345-17  municipalities.
 345-18              (11)  "Order" means the whole or a part of the final
 345-19  disposition, whether affirmative, negative, injunctive, or
 345-20  declaratory in form, of the regulatory authority in a matter other
 345-21  than rulemaking, but including issuance of certificates of
 345-22  convenience and necessity and rate setting.
 345-23              (12)  "Person" includes natural persons, partnerships
 345-24  of two or more persons having a joint or common interest, mutual or
 345-25  cooperative associations, water supply or sewer service
 345-26  corporations, and corporations.
 345-27              (13)  "Proceeding" means any hearing, investigation,
  346-1  inquiry, or other fact-finding or decision-making procedure under
  346-2  this chapter and includes the denial of relief or the dismissal of
  346-3  a complaint.
  346-4              (14)  "Rate" means every compensation, tariff, charge,
  346-5  fare, toll, rental, and classification or any of those items
  346-6  demanded, observed, charged, or collected whether directly or
  346-7  indirectly by any retail public utility for any service, product,
  346-8  or commodity described in Subdivision (20) and any rules,
  346-9  regulations, practices, or contracts affecting that compensation,
 346-10  tariff, charge, fare, toll, rental, or classification.
 346-11              (15)  "Regulatory authority" means, in accordance with
 346-12  the context in which it is found, either the commission or the
 346-13  governing body of a municipality.
 346-14              (16)  "Retail public utility" means any person,
 346-15  corporation, public utility, water supply or sewer service
 346-16  corporation, municipality, political subdivision or agency
 346-17  operating, maintaining, or controlling in this state facilities for
 346-18  providing potable water service or sewer service, or both, for
 346-19  compensation.
 346-20              (17)  "Retail water or sewer utility service" means
 346-21  potable water service or sewer service, or both, provided by a
 346-22  retail public utility to the ultimate consumer for compensation.
 346-23              (18)  "Service" means any act done, rendered, or
 346-24  performed, anything furnished or supplied, and any facility used,
 346-25  furnished, or supplied by a utility in the performance of its
 346-26  duties under this chapter to its patrons, employees, other
 346-27  utilities, and the public, as well as the interchange of facilities
  347-1  between two or more utilities.
  347-2              (19)  "Test year" means the most recent 12-month period
  347-3  for which representative operating data for a retail public utility
  347-4  are available.  A utility rate filing must be based on a test year
  347-5  that ended less than 12 months before the date on which the utility
  347-6  made the rate filing.
  347-7              (20)  "Water and sewer utility," "public utility," or
  347-8  "utility" means any person, corporation, cooperative corporation,
  347-9  or any combination of these persons or entities, other than a
 347-10  municipal corporation, water supply or sewer service corporation,
 347-11  or a political subdivision of the state, or their lessees,
 347-12  trustees, and receivers, owning or operating for, compensation in
 347-13  this state, equipment or facilities for the transmission, storage,
 347-14  distribution, sale, or provision of potable water to the public or
 347-15  for the resale of potable water to the public for any use or for
 347-16  the collection, transportation, treatment, or disposal of sewage or
 347-17  other operation of a sewage disposal service for the public, other
 347-18  than equipment or facilities owned and operated for either purpose
 347-19  by a municipality or other political subdivision of this state or a
 347-20  water supply or sewer service corporation, but does not include any
 347-21  person or corporation not otherwise a public utility that furnishes
 347-22  the services or commodity only to itself or its employees or
 347-23  tenants as an incident of that employee service or tenancy when
 347-24  that service or commodity is not resold to or used by others.
 347-25              (21)  "Water supply or sewer service corporation" means
 347-26  a nonprofit, member-owned, member-controlled corporation organized
 347-27  and operating under Chapter 76, Acts of the 43rd Legislature, 1st
  348-1  Called Session, 1933 (Article 1434a, Vernon's Texas Civil
  348-2  Statutes), that provides potable water service or sewer service for
  348-3  compensation.
  348-4              (22)  "Wholesale water or sewer service" means potable
  348-5  water or sewer service, or both, provided to a person, political
  348-6  subdivision, or municipality who is not the ultimate consumer of
  348-7  the service.  (Sec. 13.002, Water Code.)
  348-8        Sec. 12.003.  Applicability of Administrative Procedure and
  348-9  Texas Register Act.  The Administrative Procedure and Texas
 348-10  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)
 348-11  applies to all proceedings under this chapter except to the extent
 348-12  inconsistent with this chapter.  (Sec. 13.003, Water Code.)
 348-13            (Sections 12.004-12.040 reserved for expansion)
 348-14            SUBCHAPTER B.  JURISDICTION AND JUDICIAL REVIEW
 348-15        Sec. 12.041.  General Power; Rules; Hearings.  (a)  The
 348-16  commission may regulate and supervise the business of every water
 348-17  and sewer utility within its jurisdiction and may do all things,
 348-18  whether specifically designated in this chapter or implied in this
 348-19  chapter, necessary and convenient to the exercise of this power and
 348-20  jurisdiction.
 348-21        (b)  The commission shall adopt and enforce rules reasonably
 348-22  required in the exercise of its powers and jurisdiction, including
 348-23  rules governing practice and procedure before the commission.
 348-24        (c)  The commission may call and hold hearings, administer
 348-25  oaths, receive evidence at hearings, issue subpoenas to compel the
 348-26  attendance of witnesses and the production of papers and documents,
 348-27  and make findings of fact and decisions with respect to
  349-1  administering this chapter or the rules, orders, or other actions
  349-2  of the commission.
  349-3        (d)  The commission may issue emergency orders, with or
  349-4  without a hearing:
  349-5              (1)  to compel a water or sewer service provider that
  349-6  has obtained or is required to obtain a certificate of public
  349-7  convenience and necessity to provide continuous and adequate water
  349-8  service, sewer service, or both, if the discontinuance of the
  349-9  service is imminent or has occurred because of the service
 349-10  provider's actions or failure to act; and
 349-11              (2)  to compel a retail public utility to provide an
 349-12  emergency interconnection with a neighboring retail public utility
 349-13  for the provision of temporary water or sewer service, or both, for
 349-14  not more than 90 days if service discontinuance or serious
 349-15  impairment in service is imminent or has occurred.
 349-16        (e)  The commission may establish reasonable compensation for
 349-17  the temporary service required under Subsection (d)(2) and may
 349-18  allow the retail public utility receiving the service to make a
 349-19  temporary adjustment to its rate structure to ensure proper
 349-20  payment.
 349-21        (f)  If an order is issued under Subsection (d) without a
 349-22  hearing, the order shall fix a time, as soon after the emergency
 349-23  order is issued as is practicable, and place for a hearing to be
 349-24  held before the commission.
 349-25        (g)  The regulatory assessment required by Section 2.172(n)
 349-26  is not a rate and is not reviewable by the commission under Section
 349-27  12.043.  The commission has the authority to enforce payment and
  350-1  collection of the regulatory assessment.  (Sec. 13.041, Water
  350-2  Code.)
  350-3        Sec. 12.042.  Jurisdiction of Municipality; Original and
  350-4  Appellate Jurisdiction of Commission.  (a)  Subject to the
  350-5  limitations imposed in this chapter and for the purpose of
  350-6  regulating rates and services so that those rates may be fair,
  350-7  just, and reasonable and the services adequate and efficient, the
  350-8  governing body of each municipality has exclusive original
  350-9  jurisdiction over all water and sewer utility rates, operations,
 350-10  and services provided by a water and sewer utility within its
 350-11  corporate limits.
 350-12        (b)  The governing body of a municipality by ordinance may
 350-13  elect to have the commission exercise exclusive original
 350-14  jurisdiction over the utility rates, operation, and services of
 350-15  utilities, within the incorporated limits of the municipality.
 350-16        (c)  The governing body of a municipality that surrenders its
 350-17  jurisdiction to the commission may reinstate its jurisdiction by
 350-18  ordinance at any time after the second anniversary of the date on
 350-19  which the municipality surrendered its jurisdiction to the
 350-20  commission, except that the municipality may not reinstate its
 350-21  jurisdiction during the pendency of a rate proceeding before the
 350-22  commission.  The municipality may not surrender its jurisdiction
 350-23  again until the second anniversary of the date on which the
 350-24  municipality reinstates jurisdiction.
 350-25        (d)  The commission shall have exclusive appellate
 350-26  jurisdiction to review orders or ordinances of those municipalities
 350-27  as provided in this chapter.
  351-1        (e)  The commission shall have exclusive original
  351-2  jurisdiction over water and sewer utility rates, operations, and
  351-3  services not within the incorporated limits of a municipality
  351-4  exercising exclusive original jurisdiction over those rates,
  351-5  operations, and services as provided in this chapter.
  351-6        (f)  This subchapter does not give the commission power or
  351-7  jurisdiction to regulate or supervise the rates or service of a
  351-8  utility owned and operated by a municipality, directly or through a
  351-9  municipally owned corporation, within its corporate limits or to
 351-10  affect or limit the power, jurisdiction, or duties of a
 351-11  municipality that regulates land and supervises water and sewer
 351-12  utilities within its corporate limits, except as provided by this
 351-13  code.  (Sec. 13.042, Water Code.)
 351-14        Sec. 12.0421.  Rates Charged by Certain Municipally Owned
 351-15  Utilities.  (a)  This section applies to a municipally owned water
 351-16  and sewer utility that on January 1, 1989, required some or all of
 351-17  its wholesale customers to assess a surcharge for service against
 351-18  residential customers who reside outside the municipality's
 351-19  municipal boundaries.
 351-20        (b)  A municipality may not require a municipal utility
 351-21  district to assess a surcharge against users of water or sewer
 351-22  service prior to the annexation of the municipal utility district.
 351-23  (Sec. 13.0421, Water Code.)
 351-24        Sec. 12.043.  Appellate Jurisdiction.  (a)  Any party to a
 351-25  rate proceeding before the governing body of a municipality may
 351-26  appeal the decision of the governing body to the commission.  This
 351-27  subsection does not apply to a municipally owned utility.  An
  352-1  appeal under this subsection must be initiated within 90 days after
  352-2  the date of notice of the final decision by the governing body by
  352-3  filing a petition for review with the commission and by serving
  352-4  copies on all parties to the original rate proceeding.  The
  352-5  commission shall hear the appeal de novo and shall fix in its final
  352-6  order the rates the governing body should have fixed in the action
  352-7  from which the appeal was taken and may include reasonable expenses
  352-8  incurred in the appeal proceedings.  The commission may establish
  352-9  the effective date for the commission's rates at the original
 352-10  effective date as proposed by the utility provider and may order
 352-11  refunds or allow a surcharge to recover lost revenues.  The
 352-12  commission may consider only the information that was available to
 352-13  the governing body at the time the governing body made its decision
 352-14  and evidence of reasonable expenses incurred in the appeal
 352-15  proceedings.
 352-16        (b)  Ratepayers of the following entities may appeal the
 352-17  decision of the governing body of the entity affecting their water,
 352-18  drainage, or sewer rates to the commission:
 352-19              (1)  a nonprofit water supply or sewer service
 352-20  corporation created and operating under Chapter 76, Acts of the
 352-21  43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
 352-22  Texas Civil Statutes);
 352-23              (2)  a utility under the jurisdiction of a municipality
 352-24  inside the corporate limits of the municipality;
 352-25              (3)  a municipally owned utility, if the ratepayers
 352-26  reside outside the corporate limits of the municipality; and
 352-27              (4)  a district or authority created under Article III,
  353-1  Section 52, or Article XVI, Section 59, of the Texas Constitution
  353-2  that provides water or sewer service to household users.  For the
  353-3  purposes of this section ratepayers who reside outside the
  353-4  boundaries of the district or authority shall be considered a
  353-5  separate class from ratepayers who reside inside those boundaries.
  353-6        (c)  An appeal under Subsection (b) must be initiated by
  353-7  filing a petition for review with the commission and the entity
  353-8  providing service within 90 days after the effective day of the
  353-9  rate change or, if appealing under Subdivision (b)(2), within 90
 353-10  days after the date on which the governing body of the municipality
 353-11  makes a final decision.  The petition must be signed by the lesser
 353-12  of 10,000 or 10 percent of those ratepayers whose rates have been
 353-13  changed and who are eligible to appeal under Subsection (b) of this
 353-14  section.
 353-15        (d)  In an appeal under Subsection (b), each person receiving
 353-16  a separate bill is considered a ratepayer, but one person may not
 353-17  be considered more than one ratepayer regardless of the number of
 353-18  bills the person receives.  The petition for review is considered
 353-19  properly signed if signed by a person, or the spouse of a person,
 353-20  in whose name utility service is carried.
 353-21        (e)  In an appeal under Subsection (b), the commission shall
 353-22  hear the appeal de novo and shall fix in its final order the rates
 353-23  the governing body should have fixed in the action from which the
 353-24  appeal was taken.   The commission may establish the effective date
 353-25  for the commission's rates at the original effective date as
 353-26  proposed by the service provider, may order refunds or allow a
 353-27  surcharge to recover lost revenues, and may allow recovery of
  354-1  reasonable expenses incurred by the retail public utility in the
  354-2  appeal proceedings.  The commission may consider only the
  354-3  information that was available to the governing body at the time
  354-4  the governing body made its decision and evidence of reasonable
  354-5  expenses incurred by the retail public utility in the appeal
  354-6  proceedings.  The rates established by the commission in an appeal
  354-7  under Subsection (b) remain in effect until the first anniversary
  354-8  of the effective date proposed by the retail public utility for the
  354-9  rates being appealed or until changed by the service provider,
 354-10  whichever date is later, unless the commission determines that a
 354-11  financial hardship exists.
 354-12        (f)  A retail public utility that receives water or sewer
 354-13  service from another retail public utility or political subdivision
 354-14  of the state may appeal to the commission a decision of the
 354-15  provider of water or sewer service affecting the amount paid for
 354-16  water or sewer service.  An appeal under this subsection must be
 354-17  initiated within 90 days after the date of notice of the decision
 354-18  is received from the provider of water or sewer service by the
 354-19  filing of a petition by the retail public utility.
 354-20        (g)  An applicant for service from a water supply or sewer
 354-21  service corporation may appeal to the commission a decision of the
 354-22  water supply or sewer service corporation affecting the amount to
 354-23  be paid to obtain service in addition to the regular membership or
 354-24  tap fees.  If the commission finds the amount charged to be
 354-25  unreasonable, it shall establish the fee to be paid for that
 354-26  applicant.  An appeal under this subsection must be initiated
 354-27  within 90 days after the date written notice is provided to the
  355-1  applicant or member of the water supply or sewer service
  355-2  corporation's decision relating to the applicant's initial request
  355-3  for that service.
  355-4        (h)  The commission may, on a motion by the executive
  355-5  director or by the appellant under Subsection (a), (b), or (f) of
  355-6  this section, establish interim rates to be in effect until a final
  355-7  decision is made.
  355-8        (i)  The governing body of a municipally owned utility or a
  355-9  political subdivision, within 30 days after the date of a final
 355-10  decision on a rate change, shall provide individual written notice
 355-11  to each ratepayer eligible to appeal who resides outside the
 355-12  boundaries of the municipality or the political subdivision.  The
 355-13  notice must include, at a minimum, the effective date of the new
 355-14  rates, the new rates, and the location where additional information
 355-15  on rates can be obtained.
 355-16        (j)  In an appeal under this section, the commission shall
 355-17  ensure that every rate made, demanded, or received by any retail
 355-18  public utility or by any two or more retail public utilities
 355-19  jointly shall be just and reasonable.  Rates shall not be
 355-20  unreasonably preferential, prejudicial, or discriminatory but shall
 355-21  be sufficient, equitable, and consistent in application to each
 355-22  class of customers.  The commission shall use a methodology that
 355-23  preserves the financial integrity of the retail public utility.
 355-24  (Sec. 13.043, Water Code.)
 355-25        Sec. 12.0435.  Effect of New Tax Exemption on Rates of
 355-26  Nonprofit Water and Sewer Corporation.  (a)  A nonprofit water
 355-27  supply or sewer service corporation that in 1992 receives an
  356-1  exemption from ad valorem taxes under Section 11.30, Tax Code, on
  356-2  property of the corporation that was taxable in 1991 shall before
  356-3  January 1, 1993, change its rates so that revenue for the
  356-4  corporation is reduced by the amount of the value of the tax
  356-5  exemption.
  356-6        (b)  The customers of a corporation to which this section
  356-7  applies may appeal a decision of the corporation that affects their
  356-8  water or sewer rates to the commission under Section 12.043(b), and
  356-9  the commission shall determine whether the corporation has made the
 356-10  rate changes required by Subsection (a).
 356-11        (c)  This section expires January 1, 1997.  (Sec. 13.0435,
 356-12  Water Code.)
 356-13        Sec. 12.044.  Rates Charged by Municipality to District.  (a)
 356-14  This section applies to rates charged by a municipality for water
 356-15  or sewer service to a district created pursuant to Article XVI,
 356-16  Section 59, of the Texas Constitution, or to the residents of such
 356-17  district, which district is located within the corporate limits or
 356-18  the extraterritorial jurisdiction of the municipality and the
 356-19  resolution, ordinance, or agreement of the municipality consenting
 356-20  to the creation of the district requires the district to purchase
 356-21  water or sewer service from the municipality.
 356-22        (b)  Notwithstanding the provisions of any resolution,
 356-23  ordinance, or agreement, a district may appeal the rates imposed by
 356-24  the municipality by filing a petition with the commission.  The
 356-25  commission shall hear the appeal de novo and the municipality shall
 356-26  have the burden of proof to establish that the rates are just and
 356-27  reasonable.  The commission shall fix the rates to be charged by
  357-1  the municipality and the municipality may not increase such rates
  357-2  without the approval of the commission.  (Sec. 13.044, Water Code.)
  357-3        Sec. 12.045.  Right to Judicial Review; Evidence.  Any party
  357-4  to a proceeding before the commission is entitled to judicial
  357-5  review under the substantial evidence rule.  (Sec. 13.381, Water
  357-6  Code.)
  357-7        Sec. 12.046.  Costs and Attorney's Fees.  (a)  Any party
  357-8  represented by counsel who alleges that existing rates are
  357-9  excessive or that rates prescribed by the commission are excessive
 357-10  and who is a prevailing party in proceedings for review of a
 357-11  commission order or decision may in the same action recover against
 357-12  the regulation fund reasonable fees for attorneys and expert
 357-13  witnesses and other costs incurred by him before the commission and
 357-14  the court.  The amount of the attorney's fees shall be fixed by the
 357-15  court.
 357-16        (b)  On a finding by the court that an action under this
 357-17  subchapter was groundless and brought in bad faith and for the
 357-18  purpose of harassment, the court may award to the defendant retail
 357-19  public utility reasonable attorney's fees.  (Sec. 13.382, Water
 357-20  Code.)
 357-21        Sec. 12.047.  Rate-Fixing Power.  (a)  The commission shall
 357-22  fix reasonable rates for the furnishing of raw or treated water for
 357-23  any purpose mentioned in Chapter 11 of this code.
 357-24        (b)  The term "political subdivision" when used in this
 357-25  section means incorporated cities, towns or villages, counties,
 357-26  river authorities, water districts, and other special purpose
 357-27  districts.
  358-1        (c)  The commission in reviewing and fixing reasonable rates
  358-2  for furnishing water under this section may use any reasonable
  358-3  basis for fixing rates as may be determined by the commission to be
  358-4  appropriate under the circumstances of the case being reviewed;
  358-5  provided, however, the commission may not fix a rate which a
  358-6  political subdivision may charge for furnishing water which is less
  358-7  than the amount required to meet the debt service and bond coverage
  358-8  requirements of that political subdivision's outstanding debt.
  358-9        (d)  The commission's jurisdiction under this section
 358-10  relating to incorporated cities, towns, or villages shall be
 358-11  limited to water furnished by such city, town, or village to
 358-12  another political subdivision on a wholesale basis.
 358-13        (e)  The commission may establish interim rates and compel
 358-14  continuing service during the pendency of any rate proceeding.
 358-15        (f)  The commission may order a refund or assess additional
 358-16  charges from the date a petition for rate review is received by the
 358-17  commission of the difference between the rate actually charged and
 358-18  the rate fixed by the commission, plus interest at the statutory
 358-19  rate.
 358-20        (g)  No action or proceeding commenced prior to January 1,
 358-21  1977, before the Texas Water Rights Commission shall be affected by
 358-22  the enactment of this section.
 358-23        (h)  Nothing herein contained shall affect the jurisdiction
 358-24  of the Public Utility Commission of Texas.  (Sec. 12.013, Water
 358-25  Code.)
 358-26            (Sections 12.048-12.080 reserved for expansion)
 358-27                     SUBCHAPTER C.  MUNICIPALITIES
  359-1        Sec. 12.081.  Franchises.  This chapter may not be construed
  359-2  as in any way limiting the rights and powers of a municipality to
  359-3  grant or refuse franchises to use the streets and alleys within its
  359-4  limits and to make the statutory charges for their use, but no
  359-5  provision of any franchise agreement may limit or interfere with
  359-6  any power conferred on the commission by this chapter.  If a
  359-7  municipality performs regulatory functions under this chapter, it
  359-8  may make such other charges as may be provided in the applicable
  359-9  franchise agreement, together with any other charges permitted by
 359-10  this chapter.  (Sec. 13.081, Water Code.)
 359-11        Sec. 12.082.  Local Utility Service; Exempt and Nonexempt
 359-12  Areas.  (a)  Notwithstanding any other provision of this section,
 359-13  municipalities shall continue to regulate each kind of local
 359-14  utility service inside their boundaries until the commission has
 359-15  assumed jurisdiction over the respective utility pursuant to this
 359-16  chapter.
 359-17        (b)  If a municipality does not surrender its jurisdiction,
 359-18  local utility service within the boundaries of the municipality
 359-19  shall be exempt from regulation by the commission under this
 359-20  chapter to the extent that this chapter applies to local service,
 359-21  and the municipality shall have, regarding service within its
 359-22  boundaries, the right to exercise the same regulatory powers under
 359-23  the same standards and rules as the commission or other standards
 359-24  and rules not inconsistent with them. The commission's rules
 359-25  relating to service and response to requests for service for
 359-26  utilities operating within a municipality's corporate limits apply
 359-27  unless the municipality adopts its own rules.
  360-1        (c)  Notwithstanding any election, the commission may
  360-2  consider water and sewer utilities' revenues and return on
  360-3  investment in exempt areas in fixing rates and charges in nonexempt
  360-4  areas and may also exercise the powers conferred necessary to give
  360-5  effect to orders under this chapter for the benefit of nonexempt
  360-6  areas.  Likewise, in fixing rates and charges in the exempt area,
  360-7  the governing body may consider water and sewer utilities' revenues
  360-8  and return on investment in nonexempt areas.
  360-9        (d)  Utilities serving exempt areas are subject to the
 360-10  reporting requirements of this chapter.  Those reports and tariffs
 360-11  shall be filed with the governing body of the municipality as well
 360-12  as with the commission.
 360-13        (e)  This section does not limit the duty and power of the
 360-14  commission to regulate service and rates of municipally regulated
 360-15  water and sewer utilities for service provided to other areas in
 360-16  Texas.  (Sec. 13.082, Water Code.)
 360-17        Sec. 12.083.  Rate Determination.  A municipality regulating
 360-18  its water and sewer utilities under this chapter shall require from
 360-19  those utilities all necessary data to make a reasonable
 360-20  determination of rate base, expenses, investment, and rate of
 360-21  return within the municipal boundaries.  The standards for this
 360-22  determination shall be based on the procedures and requirements of
 360-23  this chapter, and the municipality shall retain any personnel
 360-24  necessary to make the determination of reasonable rates required
 360-25  under this chapter.  (Sec. 13.083, Water Code.)
 360-26        Sec. 12.084.  Authority of Governing Body; Cost
 360-27  Reimbursement.  The governing body of any municipality shall have
  361-1  the right to select and engage rate consultants, accountants,
  361-2  auditors, attorneys, engineers, or any combination of these experts
  361-3  to conduct investigations, present evidence, advise and represent
  361-4  the governing body, and assist with litigation on water and sewer
  361-5  utility ratemaking proceedings.  The water and sewer utility
  361-6  engaged in those proceedings shall be required to reimburse the
  361-7  governing body for the reasonable costs of those services and shall
  361-8  be allowed to recover those expenses through its rates with
  361-9  interest during the period of recovery.  (Sec. 13.084, Water Code.)
 361-10        Sec. 12.085.  Assistance by Commission.  On request, the
 361-11  commission may advise and assist municipalities in connection with
 361-12  questions and proceedings arising under this chapter.  This
 361-13  assistance may include aid to municipalities in connection with
 361-14  matters pending before the commission, the courts, or the governing
 361-15  body of any municipality, including making members of the staff
 361-16  available to them as witnesses and otherwise providing evidence.
 361-17  (Sec. 13.085, Water Code.)
 361-18            (Sections 12.086-12.130 reserved for expansion)
 361-19   SUBCHAPTER D.  RECORDS, REPORTS, INSPECTIONS, RATES, AND SERVICES
 361-20        Sec. 12.131.  Records of Utility; Rates, Methods, and
 361-21  Accounts.  (a)  Every water and sewer utility shall keep and render
 361-22  to the regulatory authority in the manner and form prescribed by
 361-23  the commission uniform accounts of all business transacted.  The
 361-24  commission may also prescribe forms of books, accounts, records,
 361-25  and memoranda to be kept by those utilities, including the books,
 361-26  accounts, records, and memoranda of the rendition of and capacity
 361-27  for service as well as the receipts and expenditures of money, and
  362-1  any other forms, records, and memoranda that in the judgment of the
  362-2  commission may be necessary to carry out this chapter.
  362-3        (b)  In the case of a utility subject to regulation by a
  362-4  federal regulatory agency, compliance with the system of accounts
  362-5  prescribed for the particular class of utilities by that agency may
  362-6  be considered a sufficient compliance with the system prescribed by
  362-7  the commission.  However, the commission may prescribe forms of
  362-8  books, accounts, records, and memoranda covering information in
  362-9  addition to that required by the federal agency.  The system of
 362-10  accounts and the forms of books, accounts, records, and memoranda
 362-11  prescribed by the commission for a utility or class of utilities
 362-12  may not conflict or be inconsistent with the systems and forms
 362-13  established by a federal agency for that utility or class of
 362-14  utilities.
 362-15        (c)  The commission shall fix proper and adequate rates and
 362-16  methods of depreciation, amortization, or depletion of the several
 362-17  classes of property of each utility and shall require every utility
 362-18  to carry a proper and adequate depreciation account in accordance
 362-19  with those rates and methods and with any other rules the
 362-20  commission prescribes.  Those rates, methods, and accounts shall be
 362-21  utilized uniformly and consistently throughout the rate-setting and
 362-22  appeal proceedings.
 362-23        (d)  Every utility shall keep separate accounts to show all
 362-24  profits or losses resulting from the sale or lease of appliances,
 362-25  fixtures, equipment, or other merchandise.  A profit or loss may
 362-26  not be taken into consideration by the regulatory authority in
 362-27  arriving at any rate to be charged for service by a utility to the
  363-1  extent that the merchandise is not integral to the provision of
  363-2  utility service.
  363-3        (e)  Every utility is required to keep and render its books,
  363-4  accounts, records, and memoranda accurately and faithfully in the
  363-5  manner and form prescribed by the commission and to comply with all
  363-6  directions of the regulatory authority relating to those books,
  363-7  accounts, records, and memoranda.   The regulatory authority may
  363-8  require the examination and audit of all accounts.
  363-9        (f)  In determining the allocation of tax savings derived
 363-10  from application of methods such as liberalized depreciation and
 363-11  amortization and the investment tax credit, the regulatory
 363-12  authority shall equitably balance the interests of present and
 363-13  future customers and shall apportion those benefits between
 363-14  consumers and the utilities accordingly.  If any portion of the
 363-15  investment tax credit has been retained by a utility, that amount
 363-16  shall be deducted from the original cost of the facilities or other
 363-17  addition to the rate base to which the credit applied to the extent
 363-18  allowed by the Internal Revenue Code.  (Sec. 13.131, Water Code.)
 363-19        Sec. 12.132.  Powers of Commission.  (a)  The commission may:
 363-20              (1)  require that water and sewer utilities report to
 363-21  it any information relating to themselves and affiliated interests
 363-22  both inside and outside this state that it considers useful in the
 363-23  administration of this chapter;
 363-24              (2)  establish forms for all reports;
 363-25              (3)  determine the time for reports and the frequency
 363-26  with which any reports are to be made;
 363-27              (4)  require that any reports be made under oath;
  364-1              (5)  require that a copy of any contract or arrangement
  364-2  between any utility and any affiliated interest be filed with it
  364-3  and require that such a contract or arrangement that is not in
  364-4  writing be reduced to writing;
  364-5              (6)  require that a copy of any report filed with any
  364-6  federal agency or any governmental agency or body of any other
  364-7  state be filed with it; and
  364-8              (7)  require that a copy of annual reports showing all
  364-9  payments of compensation, other than salary or wages subject to the
 364-10  withholding of federal income tax, made to residents of Texas, or
 364-11  with respect to legal, administrative, or legislative matters in
 364-12  Texas, or for representation before the Texas Legislature or any
 364-13  governmental agency or body be filed with it.
 364-14        (b)  On the request of the governing body of any
 364-15  municipality, the commission may provide sufficient staff members
 364-16  to advise and consult with the municipality on any pending matter.
 364-17  (Sec. 13.132, Water Code.)
 364-18        Sec. 12.133.  Inspections; Examination Under Oath; Compelling
 364-19  Production of Records; Inquiry into Management and Affairs.  (a)
 364-20  Any regulatory authority and, when authorized by the regulatory
 364-21  authority, its counsel, agents, and employees may, at reasonable
 364-22  times and for reasonable purposes, inspect and obtain copies of the
 364-23  papers, books, accounts, documents, and other business records and
 364-24  inspect the plant, equipment, and other property of any utility
 364-25  within its jurisdiction.  The regulatory authority may examine
 364-26  under oath or may authorize the person conducting the investigation
 364-27  to examine under oath any officer, agent, or employee of any
  365-1  utility in connection with the investigation.
  365-2        (b)  The regulatory authority may require, by order or
  365-3  subpoena served on any utility, the production within this state at
  365-4  the time and place it may designate of any books, accounts, papers,
  365-5  or records kept by that utility outside the state or verified
  365-6  copies of them if the commission so orders.  A utility failing or
  365-7  refusing to comply with such an order or subpoena violates this
  365-8  chapter.
  365-9        (c)  A member, agent, or employee of the regulatory authority
 365-10  may enter the premises occupied by a utility to make inspections,
 365-11  examinations, and tests and to exercise any authority provided by
 365-12  this chapter.
 365-13        (d)  A member, agent, or employee of the regulatory authority
 365-14  may act under this section only during reasonable hours and after
 365-15  giving reasonable notice to the utility.
 365-16        (e)  The utility is entitled to be represented when
 365-17  inspections, examinations, and tests are made on its premises.
 365-18  Reasonable time for the utility to secure a representative shall be
 365-19  allowed before beginning an inspection, examination, or test.
 365-20        (f)  The regulatory authority may inquire into the management
 365-21  and affairs of all utilities and shall keep itself informed as to
 365-22  the manner and method in which they are conducted and may obtain
 365-23  all information to enable it to perform management audits.  The
 365-24  utility shall report to the regulatory authority on the status of
 365-25  the implementation of the recommendations of the audit and shall
 365-26  file subsequent reports at the times the regulatory authority
 365-27  considers appropriate.   (Sec. 13.133, Water Code.)
  366-1        Sec. 12.134.  Report of Advertising or Public Relations
  366-2  Expenses.  (a)  The regulatory authority may require an annual
  366-3  report from each utility company of all its expenditures for
  366-4  business gifts and entertainment and institutional,
  366-5  consumption-inducing, and other advertising or public relations
  366-6  expenses.
  366-7        (b)  The regulatory authority shall not allow as costs or
  366-8  expenses for ratemaking purposes any of the expenditures that the
  366-9  regulatory authority determines not to be in the public interest.
 366-10  The cost of legislative advocacy expenses shall not in any case be
 366-11  allowed as costs or expenses for ratemaking purposes.
 366-12        (c)  Reasonable charitable or civic contributions may be
 366-13  allowed not to exceed the amount approved by the regulatory
 366-14  authority.  (Sec. 13.134, Water Code.)
 366-15        Sec. 12.135.  Unlawful Rates, Rules, and Regulations.  A
 366-16  utility may not charge, collect, or receive any rate for utility
 366-17  service or impose any rule or regulation other than as provided in
 366-18  this chapter.  (Sec. 13.135, Water Code.)
 366-19        Sec. 12.136.  Filing Tariffs of Rates, Rules, and
 366-20  Regulations; Annual Financial Report.  (a)  Every utility shall
 366-21  file with each regulatory authority tariffs showing all rates that
 366-22  are subject to the original or appellate jurisdiction of the
 366-23  regulatory authority and that are in force at the time for any
 366-24  utility service, product, or commodity offered.  Every utility
 366-25  shall file with and as a part of those tariffs all rules and
 366-26  regulations relating to or affecting the rates, utility service,
 366-27  product, or commodity furnished.
  367-1        (b)  Each utility annually shall file a service and financial
  367-2  report in a form and at times specified by commission rule.
  367-3        (c)  Every water supply or sewer service corporation shall
  367-4  file with the commission tariffs showing all rates that are subject
  367-5  to the appellate jurisdiction of the commission and that are in
  367-6  force at the time for any utility service, product, or commodity
  367-7  offered.  Every water supply or sewer service corporation shall
  367-8  file with and as a part of those tariffs all rules and regulations
  367-9  relating to or affecting the rates, utility service, product, or
 367-10  commodity furnished.  The filing required under this subsection
 367-11  shall be for informational purposes only.  (Sec. 13.136, Water
 367-12  Code.)
 367-13        Sec. 12.137.  Office of Utility; Records; Removal From State.
 367-14  (a)  Every utility shall have an office in a county of this state
 367-15  or in the immediate area in which its property or some part of its
 367-16  property is located in which it shall keep all books, accounts,
 367-17  records, and memoranda required by the commission to be kept in
 367-18  this state.
 367-19        (b)  Books, accounts, records, or memoranda required by the
 367-20  regulatory authority to be kept in the state may not be removed
 367-21  from the state, except on conditions prescribed by the commission.
 367-22  (Sec. 13.137, Water Code.)
 367-23        Sec. 12.138.  Communications by Utilities With Regulatory
 367-24  Authority; Regulations and Records.  The regulatory authority may
 367-25  prescribe regulations governing communications by utilities and
 367-26  their affiliates and their representatives with the regulatory
 367-27  authority or any member or employee of the regulatory authority.
  368-1  (Sec. 13.138, Water Code.)
  368-2        Sec. 12.139.  Standards of Service.  (a)  Every retail public
  368-3  utility that possesses or is required to possess a certificate of
  368-4  public convenience and necessity and every district that furnishes
  368-5  retail water or sewer utility service, shall furnish the service,
  368-6  instrumentalities, and facilities as are safe, adequate, efficient,
  368-7  and reasonable.
  368-8        (b)  The governing body of a municipality, as the regulatory
  368-9  authority for public utilities operating within its corporate
 368-10  limits, and the commission as the regulatory authority for public
 368-11  utilities operating outside the corporate limits of any
 368-12  municipality, after reasonable notice and hearing on its own
 368-13  motion, may:
 368-14              (1)  ascertain and fix just and reasonable standards,
 368-15  classifications, regulations, service rules, minimum service
 368-16  standards or practices to be observed and followed with respect to
 368-17  the service to be furnished;
 368-18              (2)  ascertain and fix adequate and reasonable
 368-19  standards for the measurement of the quantity, quality, pressure,
 368-20  or other condition pertaining to the supply of the service;
 368-21              (3)  prescribe reasonable regulations for the
 368-22  examination and testing of the service and for the measurement of
 368-23  service; and
 368-24              (4)  establish or approve reasonable rules,
 368-25  regulations, specifications, and standards to secure the accuracy
 368-26  of all meters, instruments, and equipment used for the measurement
 368-27  of any utility service.
  369-1        (c)  Any standards, classifications, regulations, or
  369-2  practices observed or followed by any utility may be filed by it
  369-3  with the regulatory authority and shall continue in force until
  369-4  amended by the utility or until changed by the regulatory authority
  369-5  in accordance with this section.
  369-6        (d)  Not later than the 90th day after the date on which a
  369-7  retail public utility that has a certificate of public convenience
  369-8  and necessity reaches 85 percent of its capacity, as compared to
  369-9  the Texas Department of Health's minimum capacity requirements for
 369-10  a public drinking water system, the retail public utility shall
 369-11  submit to the executive director a planning report that includes
 369-12  details on how the retail public utility will provide the expected
 369-13  service to the remaining areas within the boundaries of its
 369-14  certificated area.  The executive director may waive the reporting
 369-15  requirement if the executive director finds that the projected
 369-16  growth of the area will not require the utility to exceed its
 369-17  capacity.  The commission by rule may require the submission of
 369-18  revised reports at specified intervals.  (Sec. 13.139, Water Code.)
 369-19        Sec. 12.140.  Examination and Test of Equipment.  (a)  The
 369-20  regulatory authority may examine and test any meter, instrument, or
 369-21  equipment used for the measurement of service of any utility and
 369-22  may enter any premises occupied by any utility for the purpose of
 369-23  making the examinations and tests and exercising any power provided
 369-24  for in this chapter and may set up and use on those premises any
 369-25  apparatus and appliances necessary for those purposes.  The utility
 369-26  may be represented at the making of the examinations, tests, and
 369-27  inspections.
  370-1        (b)  The utility and its officers and employees shall
  370-2  facilitate the examinations, tests, and inspections by giving every
  370-3  reasonable aid to the regulatory authority and any person or
  370-4  persons designated by the regulatory authority for those duties.
  370-5        (c)  Any consumer or user may have a meter or measuring
  370-6  device tested by the utility once without charge after a reasonable
  370-7  period to be fixed by the regulatory authority by rule and at
  370-8  shorter intervals on payment of reasonable fees fixed by the
  370-9  regulatory authority.  The regulatory authority shall declare and
 370-10  establish reasonable fees to be paid for other examining and
 370-11  testing of those meters and other measuring devices on the request
 370-12  of the consumer.
 370-13        (d)  If the test is requested to be made within the period of
 370-14  presumed accuracy as fixed by the regulatory authority since the
 370-15  last test of the same meter or other measuring device, the fee to
 370-16  be paid by the consumer or user at the time of his request shall be
 370-17  refunded to the consumer or user if the meter or measuring device
 370-18  is found unreasonably defective or incorrect to the substantial
 370-19  disadvantage of the consumer or user.  If the consumer's request is
 370-20  made at a time beyond the period of presumed accuracy fixed by the
 370-21  regulatory authority since the last test of the same meter or
 370-22  measuring device, the utility shall make the test without charge to
 370-23  the consumer or user.  (Sec. 13.140, Water Code.)
 370-24            (Sections 12.141-12.180 reserved for expansion)
 370-25             SUBCHAPTER E.  PROCEEDINGS BEFORE COMMISSION
 370-26        Sec. 12.181.  Power to Ensure Compliance; Rate Regulation.
 370-27  Subject to this chapter, the commission has all authority and power
  371-1  of the state to ensure compliance with the obligations of utilities
  371-2  under this chapter.  For this purpose the regulatory authority may
  371-3  fix and regulate rates of utilities, including rules and
  371-4  regulations for determining the classification of customers and
  371-5  services and for determining the applicability of rates.  A rule or
  371-6  order of the regulatory authority may not conflict with the rulings
  371-7  of any federal regulatory body.  Except Section 12.191, this
  371-8  subchapter shall apply only to a utility and shall not be applied
  371-9  to municipalities, districts, or water supply or sewer service
 371-10  corporations.  (Sec. 13.181, Water Code.)
 371-11        Sec. 12.182.  Just and Reasonable Rates.  The regulatory
 371-12  authority shall ensure that every rate made, demanded, or received
 371-13  by any utility or by any two or more utilities jointly shall be
 371-14  just and reasonable.  Rates shall not be unreasonably preferential,
 371-15  prejudicial, or discriminatory but shall be sufficient, equitable,
 371-16  and consistent in application to each class of consumers.  For
 371-17  ratemaking purposes, the commission may treat two or more
 371-18  municipalities served by a utility as a single class wherever the
 371-19  commission considers that treatment to be appropriate.  (Sec.
 371-20  13.182, Water Code.)
 371-21        Sec. 12.183.  Fixing Overall Revenues.  (a)  In fixing the
 371-22  rates for water and sewer services, the regulatory authority shall
 371-23  fix its overall revenues at a level that will:
 371-24              (1)  permit the utility a reasonable opportunity to
 371-25  earn a reasonable return on its invested capital used and useful in
 371-26  rendering service to the public over and above its reasonable and
 371-27  necessary operating expenses; and
  372-1              (2)  preserve the financial integrity of the utility.
  372-2        (b)  In a rate proceeding, the regulatory authority may
  372-3  authorize collection of additional revenues from the customers to
  372-4  provide funds for capital improvements necessary to provide
  372-5  facilities capable of providing adequate and continuous utility
  372-6  service if an accurate accounting of the collection and use of
  372-7  those funds is provided to the regulatory authority.  A facility
  372-8  constructed with surcharge funds is considered customer contributed
  372-9  capital or contributions in aid of construction and may not be
 372-10  included in invested capital, and depreciation expense is not
 372-11  allowed.  (Sec. 13.183, Water Code.)
 372-12        Sec. 12.184.  Fair Return; Burden of Proof.  (a)  The
 372-13  regulatory authority may not prescribe any rate that will yield
 372-14  more than a fair return on the invested capital used and useful in
 372-15  rendering service to the public.
 372-16        (b)  In fixing a reasonable return on invested capital, the
 372-17  regulatory authority shall consider, in addition to other
 372-18  applicable factors, the efforts and achievements of the utility in
 372-19  the conservation of resources, the quality of the utility's
 372-20  services, the efficiency of the utility's operations, and the
 372-21  quality of the utility's management.
 372-22        (c)  In any proceeding involving any proposed change of
 372-23  rates, the burden of proof shall be on the utility to show that the
 372-24  proposed change, if proposed by the utility, or that the existing
 372-25  rate, if it is proposed to reduce the rate, is just and reasonable.
 372-26  (Sec. 13.184, Water Code.)
 372-27        Sec. 12.185.  Components of Invested Capital and Net Income.
  373-1  (a)  The components of invested capital and net income shall be
  373-2  determined according to the rules stated in this section.
  373-3        (b)  Utility rates shall be based on the original cost of
  373-4  property used by and useful to the utility in providing service,
  373-5  including, if necessary to the financial integrity of the utility,
  373-6  construction work in progress at cost as recorded on the books of
  373-7  the utility.  The inclusion of construction work in progress is an
  373-8  exceptional form of rate relief to be granted only on the
  373-9  demonstration by the utility by clear and convincing evidence that
 373-10  the inclusion is in the ratepayers' best interest and is necessary
 373-11  to the financial integrity of the utility. Construction work in
 373-12  progress may not be included in the rate base for major projects
 373-13  under construction to the extent that those projects have been
 373-14  inefficiently or imprudently planned or managed.  Original cost is
 373-15  the actual money cost or the actual money value of any
 373-16  consideration paid, other than money, of the property at the time
 373-17  it shall have been dedicated to public use, whether by the utility
 373-18  that is the present owner or by a predecessor, less depreciation.
 373-19  Utility property funded by explicit customer agreements or customer
 373-20  contributions in aid of construction such as surcharges may not be
 373-21  included in invested capital.
 373-22        (c)  Cost of facilities, revenues, expenses, taxes, and
 373-23  reserves shall be separated or allocated as prescribed by the
 373-24  regulatory authority.
 373-25        (d)  Net income is the total revenues of the utility less all
 373-26  reasonable and necessary expenses as determined by the regulatory
 373-27  authority.  The regulatory authority shall determine expenses and
  374-1  revenues in a manner consistent with Subsections (e) through (h).
  374-2        (e)  Payment to affiliated interests for costs of any
  374-3  services, or any property, right or thing, or for interest expense
  374-4  may not be allowed either as capital cost or as expense except to
  374-5  the extent that the regulatory authority finds that payment to be
  374-6  reasonable and necessary.  A finding of reasonableness and
  374-7  necessity must include specific statements setting forth the cost
  374-8  to the affiliate of each item or class of items in question and a
  374-9  finding that the price to the utility is no higher than prices
 374-10  charged by the supplying affiliate to its other affiliates or
 374-11  divisions for the same item or items, or to unaffiliated persons or
 374-12  corporations.
 374-13        (f)  If the utility is a member of an affiliated group that
 374-14  is eligible to file a consolidated income tax return and if it is
 374-15  advantageous to the utility to do so, income taxes shall be
 374-16  computed as though a consolidated return had been filed and the
 374-17  utility had realized its fair share of the savings resulting from
 374-18  the consolidated return, unless it is shown to the satisfaction of
 374-19  the regulatory authority that it was reasonable to choose not to
 374-20  consolidate returns.  The amounts of income taxes saved by a
 374-21  consolidated group of which a utility is a member due to the
 374-22  elimination in the consolidated return of the intercompany profit
 374-23  on purchases by the utility from an affiliate shall be applied to
 374-24  reduce the cost of those purchases.  The investment tax credit
 374-25  allowed against federal income taxes to the extent retained by the
 374-26  utility shall be applied as a reduction in the rate-based
 374-27  contribution of the assets to which the credit applies to the
  375-1  extent and at the rate as allowed by the Internal Revenue Code.
  375-2        (g)  The regulatory authority may promulgate reasonable rules
  375-3  and regulations with respect to the allowance or disallowance of
  375-4  certain expenses for ratemaking purposes.
  375-5        (h)  The regulatory authority may not include for ratemaking
  375-6  purposes:
  375-7              (1)  legislative advocacy expenses, whether made
  375-8  directly or indirectly, including legislative advocacy expenses
  375-9  included in trade association dues;
 375-10              (2)  costs of processing a refund or credit under
 375-11  Section 12.187; or
 375-12              (3)  any expenditure found by the regulatory authority
 375-13  to be unreasonable, unnecessary, or not in the public interest,
 375-14  including executive salaries, advertising expenses, legal expenses,
 375-15  and civil penalties or fines.
 375-16        (i)  Water and sewer utility property in service that was
 375-17  acquired from an affiliate or developer before September 1, 1976,
 375-18  and that is included by the utility in its rate base shall be
 375-19  included in all ratemaking formulas at the installed cost of the
 375-20  property rather than the price set between the entities.  Unless
 375-21  the funds for this property are provided by explicit customer
 375-22  agreements, the property is considered invested capital and not
 375-23  contributions in aid of construction or customer-contributed
 375-24  capital.
 375-25        (j)  Depreciation expense included in the cost of service
 375-26  includes depreciation on all currently used, depreciable utility
 375-27  property owned by the utility except for property provided by
  376-1  explicit customer agreements or funded by customer contributions in
  376-2  aid of construction.  Depreciation on all currently used and useful
  376-3  developer or governmental entity contributed property shall be
  376-4  allowed in the cost of service.  (Sec. 13.185, Water Code.)
  376-5        Sec. 12.186.  Unreasonable or Violative Existing Rates;
  376-6  Investigating Costs of Obtaining Service From Another Source.
  376-7  (a)  If the regulatory authority, after reasonable notice and
  376-8  hearing, on its own motion or on complaint by any affected person,
  376-9  finds that the existing rates of any utility for any service are
 376-10  unreasonable or in any way in violation of any law, the regulatory
 376-11  authority shall determine the just and reasonable rates, including
 376-12  maximum or minimum rates, to be observed and in force, and shall
 376-13  fix the same by order to be served on the utility.  Those rates
 376-14  constitute the legal rates of the utility until changed as provided
 376-15  in this chapter.
 376-16        (b)  If a utility does not itself produce that which it
 376-17  distributes, transmits, or furnishes to the public for
 376-18  compensation, but obtains it from another source, the regulatory
 376-19  authority may investigate the cost of that production in any
 376-20  investigation of the reasonableness of the rates of the utility.
 376-21  (Sec. 13.186, Water Code.)
 376-22        Sec. 12.187.  Statement of Intent to Change Rates; Hearing;
 376-23  Determination of Rate Level.  (a)  A utility may not make changes
 376-24  in its rates except by delivering a statement of intent to each
 376-25  ratepayer and with the regulatory authority having original
 376-26  jurisdiction at least 30 days before the effective date of the
 376-27  proposed change.  The effective date of the new rates must be the
  377-1  first day of a billing period, and the new rates may not apply to
  377-2  service received before the effective date of the new rates.  The
  377-3  statement of intent must include the information required by the
  377-4  regulatory authority's rules.  A copy of the statement of intent
  377-5  shall be mailed or delivered to the appropriate offices of each
  377-6  affected municipality, and to any other affected persons as
  377-7  required by the regulatory authority's rules.  When the statement
  377-8  of intent is delivered, the utility shall file with the regulatory
  377-9  authority an application to change rates.  The application must
 377-10  include information the regulatory authority requires by rule.  If
 377-11  the utility fails to provide within a reasonable time after the
 377-12  application is filed the necessary documentation or other evidence
 377-13  that supports the costs and expenses that are shown in the
 377-14  application, the regulatory authority may disallow the nonsupported
 377-15  expenses.  If the application or the statement of intent is not
 377-16  substantially complete or does not comply with the regulatory
 377-17  authority's rules, it may be rejected and the effective date of the
 377-18  rate change may be suspended until a properly completed application
 377-19  is accepted by the regulatory authority and a proper statement of
 377-20  intent is provided.  The commission may also suspend the effective
 377-21  date of any rate change if the utility does not have a certificate
 377-22  of public convenience and necessity or a completed application for
 377-23  a certificate or to transfer a certificate pending before the
 377-24  commission or if the utility is delinquent in paying the assessment
 377-25  and any applicable penalties or interest required by Section
 377-26  2.172(n).
 377-27        (b)  If, within 60 days after the effective date of the rate
  378-1  change, the regulatory authority receives a complaint from any
  378-2  affected municipality, or from the lesser of 1,000 or 10 percent of
  378-3  the ratepayers of the utility over whose rates the regulatory
  378-4  authority has original jurisdiction, the regulatory authority shall
  378-5  set the matter for hearing.  The regulatory authority may set the
  378-6  matter for hearing on its own motion at any time within 120 days
  378-7  after the effective date of the rate change.  The hearing may be
  378-8  informal.  If, after hearing, the regulatory authority finds the
  378-9  rates currently being charged or those proposed to be charged are
 378-10  unreasonable or in violation of law, the regulatory authority shall
 378-11  determine the rates to be charged by the utility and shall fix the
 378-12  rates by order served on the utility.
 378-13        (c)  The regulatory authority, pending final action in a rate
 378-14  proceeding, may order the utility to deposit all or part of the
 378-15  rate increase received or to be received into an escrow account
 378-16  with a financial institution approved by the regulatory authority.
 378-17  Unless otherwise agreed to by the parties to the rate proceeding,
 378-18  the utility shall refund or credit against future bills all sums
 378-19  collected during the pendency of the rate proceeding in excess of
 378-20  the rate finally ordered plus interest as determined by the
 378-21  regulatory authority.  For good cause shown, the regulatory
 378-22  authority may authorize the release of funds to the utility from
 378-23  the escrow account during the pendency of the proceeding.  At any
 378-24  time during the pendency of the rate proceeding the regulatory
 378-25  authority may fix interim rates to remain in effect until a final
 378-26  determination is made.  If the regulatory authority sets a final
 378-27  rate that is higher than the interim rate, the utility shall be
  379-1  allowed to collect the difference between the interim rate and
  379-2  final rate unless otherwise agreed to by the parties to the rate
  379-3  proceeding.  If the regulatory authority establishes interim rates
  379-4  or an escrow account, the regulatory authority must make a final
  379-5  determination on the rates within 335 days after the effective date
  379-6  of the interim rates or escrowed rates or the rates are
  379-7  automatically approved as requested by the utility.
  379-8        (d)  Except to implement an approved purchased water pass
  379-9  through adjustment provision or to adjust the rates of a newly
 379-10  acquired utility system, a utility or two or more utilities under
 379-11  common control and ownership may not file a statement of intent to
 379-12  increase its rates more than once in a 12-month period, unless the
 379-13  regulatory authority determines that a financial hardship exists.
 379-14  If the regulatory authority requires the utility to deliver a
 379-15  corrected statement of intent, the utility is not considered to be
 379-16  in violation of the 12-month filing requirement.  (Sec. 13.187,
 379-17  Water Code.)
 379-18        Sec. 12.188.  Unreasonable Preference or Prejudice as to
 379-19  Rates or Services.  (a)  A water and sewer utility as to rates or
 379-20  services may not make or grant any unreasonable preference or
 379-21  advantage to any corporation or person within any classification or
 379-22  subject any corporation or person within any classification to any
 379-23  unreasonable prejudice or disadvantage.
 379-24        (b)  A utility may not establish and maintain any
 379-25  unreasonable differences as to rates of service either as between
 379-26  localities or as between classes of service.  (Sec. 13.189, Water
 379-27  Code.)
  380-1        Sec. 12.189.  Equality of Rates and Services.  (a)  A water
  380-2  and sewer utility may not directly or indirectly by any device or
  380-3  in any manner charge, demand, collect, or receive from any person a
  380-4  greater or lesser compensation for any service rendered or to be
  380-5  rendered by the utility than that prescribed in the schedule of
  380-6  rates of the utility applicable to that service when filed in the
  380-7  manner provided in this chapter, and a person may not knowingly
  380-8  receive or accept any service from a utility for a compensation
  380-9  greater or less than that prescribed in the schedules, provided
 380-10  that all rates being charged and collected by a utility on the
 380-11  effective date of this chapter may be continued until schedules are
 380-12  filed.
 380-13        (b)  This chapter does not prevent a cooperative corporation
 380-14  from returning to its members the whole or any part of the net
 380-15  earnings resulting from its operations in proportion to their
 380-16  purchases from or through the corporation.  (Sec. 13.190, Water
 380-17  Code.)
 380-18        Sec. 12.190.  Discrimination; Restriction on Competition.  A
 380-19  water and sewer utility may not discriminate against any person or
 380-20  corporation that sells or leases equipment or performs services in
 380-21  competition with the utility, and a utility may not engage in any
 380-22  other practice that tends to restrict or impair that competition.
 380-23  (Sec. 13.191, Water Code.)
 380-24        Sec. 12.191.  Payments in Lieu of Taxes.  Payments made in
 380-25  lieu of taxes by a water and sewer utility to the municipality by
 380-26  which it is owned may not be considered an expense of operation for
 380-27  the purpose of determining, fixing, or regulating the rates to be
  381-1  charged for the provision of utility service to a school district
  381-2  or hospital district.   No rates received by a utility from a
  381-3  school district or hospital district may be used to make or to
  381-4  cover the cost of making payments in lieu of taxes to the
  381-5  municipality by which the utility is owned.  (Sec. 13.192, Water
  381-6  Code.)
  381-7            (Sections 12.192-12.200 reserved for expansion)
  381-8             SUBCHAPTER F.  PROCEEDINGS BEFORE COMMISSION
  381-9        Sec. 12.201.  Informal Proceeding.  A proceeding involving a
 381-10  retail public utility may be an informal proceeding, except that
 381-11  the proceeding is subject to the public notice requirements of this
 381-12  chapter and the rules and orders of the regulatory authority
 381-13  involved.  (Sec. 13.015, Water Code.)
 381-14        Sec. 12.202.  Record of Proceedings; Right to Hearing.  A
 381-15  record shall be kept of all proceedings before the regulatory
 381-16  authority, unless all parties waive the keeping of the record, and
 381-17  all the parties are entitled to be heard in person or by attorney.
 381-18  (Sec. 13.016, Water Code.)
 381-19            (Sections 12.203-12.210 reserved for expansion)
 381-20               SUBCHAPTER G.  VIOLATIONS AND ENFORCEMENT
 381-21        Sec. 12.211.  Action to Enjoin or Require Compliance.  If it
 381-22  appears to the commission that any retail public utility or any
 381-23  other person or corporation is engaged in or is about to engage in
 381-24  any act in violation of this chapter or of any order or rule of the
 381-25  commission entered or adopted under this chapter or that any retail
 381-26  public utility or any other person or corporation is failing to
 381-27  comply with this chapter or with any rule or order, the attorney
  382-1  general on request of the commission, in addition to any other
  382-2  remedies provided in this chapter, shall bring an action in a court
  382-3  of competent jurisdiction in the name of and on behalf of the
  382-4  commission against the retail public utility or other person or
  382-5  corporation to enjoin the commencement or continuation of any act
  382-6  or to require compliance with this chapter or the rule or order.
  382-7  (Sec. 13.411, Water Code.)
  382-8        Sec. 12.212.  Receivership.  (a)  At the request of the
  382-9  commission, the attorney general shall bring suit for the
 382-10  appointment of a receiver to collect the assets and carry on the
 382-11  business of a water or sewer utility that has abandoned operation
 382-12  of its facilities or violates a final order of the commission or
 382-13  allows any property owned or controlled by it to be used in
 382-14  violation of a final order of the commission.
 382-15        (b)  The court shall appoint a receiver if an appointment is
 382-16  necessary:
 382-17              (1)  to guarantee the collection of assessments, fees,
 382-18  penalties, or interest;
 382-19              (2)  to guarantee continued service to the customers of
 382-20  the utility; or
 382-21              (3)  to prevent continued or repeated violation of the
 382-22  final order.
 382-23        (c)  The receiver shall execute a bond to assure the proper
 382-24  performance of the receiver's duties in an amount to be set by the
 382-25  court.
 382-26        (d)  After appointment and execution of bond, the receiver
 382-27  shall take possession of the assets of the utility specified by the
  383-1  court.  Until discharged by the court, the receiver shall perform
  383-2  the duties that the court directs to preserve the assets and carry
  383-3  on the business of the utility and shall strictly observe the final
  383-4  order involved.
  383-5        (e)  On a showing of good cause by the utility, the court may
  383-6  dissolve the receivership and order the assets and control of the
  383-7  business returned to the utility.  (Sec. 13.412, Water Code.)
  383-8        Sec. 12.213.  Payment of Costs of Receivership.  The receiver
  383-9  may, subject to the approval of the court and after giving notice
 383-10  to all interested parties, sell or otherwise dispose of all or part
 383-11  of the real or personal property of a water or sewer utility
 383-12  against which a proceeding has been brought under this subchapter
 383-13  to pay the costs incurred in the operation of the receivership.
 383-14  The costs include:
 383-15              (1)  payment of fees to the receiver for his services;
 383-16              (2)  payment of fees to attorneys, accountants,
 383-17  engineers, or any other person or entity that provides goods or
 383-18  services necessary to the operation of the receivership; and
 383-19              (3)  payment of costs incurred in ensuring that any
 383-20  property owned or controlled by a water or sewer utility is not
 383-21  used in violation of a final order of the commission.  (Sec.
 383-22  13.413, Water Code.)
 383-23        Sec. 12.214.  Supervision of Certain Utilities.  (a)  The
 383-24  commission, after providing to the utility notice and an
 383-25  opportunity for a hearing, may place a utility under supervision
 383-26  for gross or continuing mismanagement, gross or continuing
 383-27  noncompliance with this chapter or commission rules, or
  384-1  noncompliance with commission orders.
  384-2        (b)  While supervising a utility, the commission may require
  384-3  the utility to abide by conditions and requirements prescribed by
  384-4  the commission, including:
  384-5              (1)  management requirements;
  384-6              (2)  additional reporting requirements;
  384-7              (3)  restrictions on hiring, salary or benefit
  384-8  increases, capital investment, borrowing, stock issuance or
  384-9  dividend declarations, and liquidation of assets; and
 384-10              (4)  a requirement that the utility place the utility's
 384-11  funds into an account in a financial institution approved by the
 384-12  commission and use of those funds shall be restricted to reasonable
 384-13  and necessary utility expenses.
 384-14        (c)  While supervising a utility, the commission may require
 384-15  that the utility obtain commission approval before taking any
 384-16  action that may be restricted under Subsection (b).  Any action or
 384-17  transaction which occurs without commission approval may be voided
 384-18  by the commission.  (Sec. 13.4131, Water Code.)
 384-19        Sec. 12.215.  Operation of Utility That Discontinues
 384-20  Operation or is Referred for Appointment of Receiver.  (a)  The
 384-21  commission, after providing to the utility notice and an
 384-22  opportunity for a hearing, may authorize a willing person to
 384-23  temporarily manage and operate a utility that has discontinued or
 384-24  abandoned operations or the provision of services or is being
 384-25  referred to the attorney general for the appointment of a receiver
 384-26  under Section 12.212.
 384-27        (b)  The commission may appoint a person under this section
  385-1  by emergency order, and notice of the action is adequate if the
  385-2  notice is mailed or hand-delivered to the last known address of the
  385-3  utility's headquarters.
  385-4        (c)  A person appointed under this section has the powers and
  385-5  duties necessary to ensure the continued operation of the utility
  385-6  and the provision of continuous and adequate services to customers,
  385-7  including the power and duty to:
  385-8              (1)  read meters;
  385-9              (2)  bill for utility services;
 385-10              (3)  collect revenues;
 385-11              (4)  disburse funds; and
 385-12              (5)  request rate increases.
 385-13        (d)  This section does not affect the authority of the
 385-14  commission to pursue an enforcement claim against a utility or an
 385-15  affiliated interest.  (Sec. 13.4132, Water Code.)
 385-16        Sec. 12.216.  Emergency Rate Increase in Certain
 385-17  Circumstances.  (a)  Notwithstanding the requirements of Section
 385-18  12.189, the commission may authorize an emergency rate increase for
 385-19  a utility for which a person has been appointed under Section
 385-20  12.215 or for which a receiver has been appointed under Section
 385-21  12.212 if the increase is necessary to ensure the provision of
 385-22  continuous and adequate services to the utility's customers.
 385-23        (b)  A utility that receives an emergency rate increase under
 385-24  this section shall provide to each ratepayer notice of the increase
 385-25  as soon as possible, but not later than the first utility bill
 385-26  issued at the new rate.
 385-27        (c)  The commission shall schedule a hearing to establish a
  386-1  final rate within 15 months after the date on which an emergency
  386-2  rate increase takes effect.  The commission shall require the
  386-3  utility to provide notice of the hearing to each customer.  The
  386-4  additional revenues collected under an emergency rate increase are
  386-5  subject to refund if the commission finds that the rate increase
  386-6  was larger than necessary to ensure continuous and adequate
  386-7  service.  (Sec. 13.4133, Water Code.)
  386-8        Sec. 12.217.  Penalty Against Retail Public Utility or
  386-9  Affiliated Interest.  (a)  Any retail public utility or affiliated
 386-10  interest that violates this chapter, fails to perform a duty
 386-11  imposed on it, or fails, neglects, or refuses to obey an order,
 386-12  rule, direction, or requirement of the commission or decree or
 386-13  judgment of a court is subject to a civil penalty of not less than
 386-14  $100 nor more than $5,000 for each violation.
 386-15        (b)  A retail public utility or affiliated interest commits a
 386-16  separate violation each day it continues to violate Subsection (a).
 386-17        (c)  The attorney general shall institute suit on his own
 386-18  initiative or at the request of, in the name of, and on behalf of
 386-19  the commission in a court of competent jurisdiction to recover the
 386-20  penalty under this section.  (Sec. 13.414, Water Code.)
 386-21        Sec. 12.218.  Personal Penalty.  Any person who wilfully and
 386-22  knowingly violates this chapter is guilty of a third degree felony.
 386-23  (Sec. 13.415, Water Code.)
 386-24        Sec. 12.219.  Administrative Penalty.  (a)  If a person,
 386-25  affiliated interest, or entity subject to the jurisdiction of the
 386-26  commission violates this chapter or a rule or order adopted under
 386-27  this chapter, the commission may assess a penalty against that
  387-1  person, affiliated interest, or entity as provided by this section.
  387-2  The penalty may be in an amount not to exceed $500 a day.  Each day
  387-3  a violation continues may be considered a separate violation.
  387-4        (b)  In determining the amount of the penalty, the commission
  387-5  shall consider:
  387-6              (1)  the nature, circumstances, extent, duration, and
  387-7  gravity of the prohibited acts or omissions;
  387-8              (2)  with respect to the alleged violator:
  387-9                    (A)  the history and extent of previous
 387-10  violations;
 387-11                    (B)  the degree of culpability, including whether
 387-12  the violation was attributable to mechanical or electrical failures
 387-13  and whether the violation could have been reasonably anticipated
 387-14  and avoided;
 387-15                    (C)  the demonstrated good faith, including
 387-16  actions taken by the person, affiliated interest, or entity to
 387-17  correct the cause of the violation;
 387-18                    (D)  any economic benefit gained through the
 387-19  violation; and
 387-20                    (E)  the amount necessary to deter future
 387-21  violations; and
 387-22              (3)  any other matters that justice requires.
 387-23        (c)  If, after examination of a possible violation and the
 387-24  facts surrounding that possible violation, the executive director
 387-25  concludes that a violation has occurred, the executive director may
 387-26  issue a preliminary report stating the facts on which that
 387-27  conclusion is based, recommending that a penalty under this section
  388-1  be imposed on the person, affiliated interest, or retail public
  388-2  utility charged, and recommending the amount of that proposed
  388-3  penalty.  The executive director shall base the recommended amount
  388-4  of the proposed penalty on the factors provided by Subsection (b),
  388-5  and shall analyze each factor for the benefit of the commission.
  388-6        (d)  Not later than the 10th day after the date on which the
  388-7  report is issued, the executive director shall give written notice
  388-8  of the report to the person, affiliated interest, or retail public
  388-9  utility charged with the violation.  The notice shall include a
 388-10  brief summary of the charges, a statement of the amount of the
 388-11  penalty recommended, and a statement of the right of the person,
 388-12  affiliated interest, or retail public utility charged to a hearing
 388-13  on the occurrence of the violation, the amount of the penalty, or
 388-14  both.
 388-15        (e)  Not later than the 20th day after the date on which
 388-16  notice is received, the person, affiliated interest, or retail
 388-17  public utility charged may give the commission written consent to
 388-18  the executive director's report, including the recommended penalty,
 388-19  or may make a written request for a hearing.
 388-20        (f)  If the person, affiliated interest, or retail public
 388-21  utility charged with the violation consents to the penalty
 388-22  recommended by the executive director or fails to timely respond to
 388-23  the notice, the commission by order shall assess that penalty or
 388-24  order a hearing to be held on the findings and recommendations in
 388-25  the executive director's report.  If the commission assesses the
 388-26  penalty recommended by the report, the commission shall give
 388-27  written notice to the person, affiliated interest, or retail public
  389-1  utility charged of its decision.
  389-2        (g)  If the person, affiliated interest, or retail public
  389-3  utility charged requests or the commission orders a hearing, the
  389-4  commission shall call a hearing and give notice of the hearing.  As
  389-5  a result of the hearing, the commission by order may find that a
  389-6  violation has occurred and may assess a civil penalty, may find
  389-7  that a violation has occurred but that no penalty should be
  389-8  assessed, or may find that no violation has occurred.  All
  389-9  proceedings under this subsection are subject to the Administrative
 389-10  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
 389-11  Civil Statutes). In making any penalty decision, the commission
 389-12  shall analyze each of the factors provided by Subsection (b).
 389-13        (h)  The commission shall give notice of its decision to the
 389-14  person, affiliated interest, or retail public utility charged, and
 389-15  if the commission finds that a violation has occurred and has
 389-16  assessed a penalty, the commission shall give written notice to the
 389-17  person, affiliated interest, or retail public utility charged of
 389-18  its findings, of the amount of the penalty, and of the person's,
 389-19  affiliated interest's, or retail public utility's right to judicial
 389-20  review of the commission's order.  If the commission is required to
 389-21  give notice of a penalty under this subsection or Subsection (f),
 389-22  the commission shall file notice of its decision in the Texas
 389-23  Register not later than the 10th day after the date on which the
 389-24  decision is adopted.
 389-25        (i)  Within the 30-day period immediately following the day
 389-26  on which the commission's order is final, as provided by Section
 389-27  16(c), Administrative Procedure and Texas Register Act (Article
  390-1  6252-13a, Vernon's Texas Civil Statutes), the person, affiliated
  390-2  interest, or retail public utility charged with the penalty shall:
  390-3              (1)  pay the penalty in full; or
  390-4              (2)  if the person, affiliated interest, or retail
  390-5  public utility seeks judicial review of the fact of the violation,
  390-6  the amount of the penalty, or both:
  390-7                    (A)  forward the amount of the penalty to the
  390-8  commission for placement in an escrow account; or
  390-9                    (B)  post with the commission a supersedeas bond
 390-10  in a form approved by the commission for the amount of the penalty
 390-11  to be effective until all judicial review of the order or decision
 390-12  is final.
 390-13        (j)  Failure to forward the money to or to post the bond with
 390-14  the commission within the time provided by Subsection (i)
 390-15  constitutes a waiver of all legal rights to judicial review.  If
 390-16  the person, affiliated interest, or retail public utility charged
 390-17  fails to forward the money or post the bond as provided by
 390-18  Subsection (i), the commission or the executive director may
 390-19  forward the matter to the attorney general for enforcement.
 390-20        (k)  Judicial review of the order or decision of the
 390-21  commission assessing the penalty shall be under the substantial
 390-22  evidence rule and may be instituted by filing a petition with a
 390-23  district court in Travis County, as provided by Section 19,
 390-24  Administrative Procedure and Texas Register Act (Article 6252-13a,
 390-25  Vernon's Texas Civil Statutes).
 390-26        (l)  A penalty collected under this section shall be
 390-27  deposited in the state treasury to the credit of the general
  391-1  revenue fund.
  391-2        (m)  Notwithstanding any other provision of law, the
  391-3  commission may compromise, modify, extend the time for payment of,
  391-4  or remit, with or without condition, any penalty imposed under this
  391-5  section.
  391-6        (n)  Payment of a penalty under this section is full and
  391-7  complete satisfaction of the violation for which the penalty is
  391-8  assessed and precludes any other civil or criminal penalty for the
  391-9  same violation.  (Sec. 13.4151, Water Code.)
 391-10        Sec. 12.220.  Penalties cumulative.  All penalties accruing
 391-11  under this chapter are cumulative and a suit for the recovery of
 391-12  any penalty does not bar or affect the recovery of any other
 391-13  penalty or bar any criminal prosecution against any retail public
 391-14  utility or any officer, director, agent, or employee or any other
 391-15  corporation or person.  (Sec. 13.416, Water Code.)
 391-16        Sec. 12.221.  Contempt Proceedings.  If any person or retail
 391-17  public utility fails to comply with any lawful order of the
 391-18  commission or with any subpoena or subpoena duces tecum or if any
 391-19  witness refuses to testify about any matter on which he may be
 391-20  lawfully interrogated, the commission may apply to any court of
 391-21  competent jurisdiction to compel obedience by proceedings for
 391-22  contempt.  (Sec. 13.417, Water Code.)
 391-23        Sec. 12.222.  Disposition of Fines and Penalties.  Fines and
 391-24  penalties collected under this chapter in other than criminal
 391-25  proceedings shall be paid to the commission and deposited in the
 391-26  general revenue fund.  (Sec. 13.418, Water Code.)
 391-27        Sec. 12.223.  Venue.  Suits for injunction or penalties under
  392-1  this chapter may be brought in Travis County, in any county where
  392-2  this violation is alleged to have occurred, or in the county or
  392-3  residence of any defendant.  (Sec. 13.419, Water Code.)
  392-4            (Sections 12.224-12.240 reserved for expansion)
  392-5       SUBCHAPTER H.  CERTIFICATES OF CONVENIENCE AND NECESSITY
  392-6        Sec. 12.241.  Certificate Required.  (a)  Unless otherwise
  392-7  specified, a utility or water supply or sewer service corporation
  392-8  may not in any way render retail water or sewer utility service
  392-9  directly or indirectly to the public without first having obtained
 392-10  from the commission a certificate that the present or future public
 392-11  convenience and necessity require or will require that
 392-12  installation, operation, or extension, and except as otherwise
 392-13  provided by this subchapter, a retail public utility may not
 392-14  furnish, make available, render, or extend retail water or sewer
 392-15  utility service to any area to which retail water or sewer utility
 392-16  service is being lawfully furnished by another retail public
 392-17  utility without first having obtained a certificate of public
 392-18  convenience and necessity that includes the area in which the
 392-19  consuming facility is located.
 392-20        (b)  A person that is not a retail public utility may not
 392-21  construct facilities to provide water or sewer service to more than
 392-22  one service connection not on the property owned by the person and
 392-23  that are within the certificated service area of a retail public
 392-24  utility without first obtaining written consent from the retail
 392-25  public utility.  A person that violates this section or the
 392-26  reasonable and legal terms and conditions of any written consent is
 392-27  subject to the administrative penalties prescribed by Section
  393-1  12.219.
  393-2        (c)  Not later than September 1, 1990, a utility or water
  393-3  supply or sewer service corporation that has been previously
  393-4  exempted from the certificate requirements because of operations,
  393-5  extensions, or service in progress on September 1, 1975, shall
  393-6  submit to the commission a completed application to obtain a
  393-7  certificate of public convenience and necessity for the service
  393-8  being provided on September 1, 1975.  The commission shall grant a
  393-9  certificate of public convenience and necessity to the customer
 393-10  locations currently being served by the utility or water supply or
 393-11  sewer service corporation that were also being served on September
 393-12  1, 1975.  (Sec. 13.242, Water Code.)
 393-13        Sec. 12.242.  Exceptions for Extension of Service.  A retail
 393-14  public utility is not required to secure a certificate of public
 393-15  convenience and necessity for:
 393-16              (1)  an extension into territory contiguous to that
 393-17  already served by it, if the point of ultimate use is within
 393-18  one-quarter mile of the boundary of the certificated area, and not
 393-19  receiving similar service from another retail public utility and
 393-20  not within the area of public convenience and necessity of another
 393-21  retail public utility; or
 393-22              (2)  an extension within or to territory already served
 393-23  by it or to be served by it under a certificate of public
 393-24  convenience and necessity.  (Sec. 13.243, Water Code.)
 393-25        Sec. 12.243.  Application; Maps; Evidence and Consent.  (a)
 393-26  A public utility or water supply or sewer service corporation shall
 393-27  submit to the commission an application to obtain a certificate of
  394-1  public convenience and necessity or an amendment of a certificate.
  394-2        (b)  On request by the commission, each public utility and
  394-3  water supply or sewer service corporation shall file with the
  394-4  commission a map or maps showing all its facilities and
  394-5  illustrating separately facilities for production, transmission,
  394-6  and distribution of its services, and each certificated retail
  394-7  public utility shall file with the commission a map or maps showing
  394-8  any facilities, customers, or area currently being served outside
  394-9  its certificated areas.
 394-10        (c)  Each applicant for a certificate shall file with the
 394-11  commission evidence required by the commission to show that the
 394-12  applicant has received the required consent, franchise, or permit
 394-13  of the proper municipality, Texas Department of Health, or other
 394-14  public authority.  (Sec. 13.244, Water Code.)
 394-15        Sec. 12.244.  Notice and Hearing; Issuance or Refusal;
 394-16  Factors Considered.  (a)  If an application for a certificate of
 394-17  public convenience and necessity is filed, the commission shall
 394-18  cause notice of the application to be given to affected parties
 394-19  and, if requested, shall fix a time and place for a hearing and
 394-20  give notice of the hearing.  Any person affected by the application
 394-21  may intervene at the hearing.
 394-22        (b)  The commission may grant applications and issue
 394-23  certificates only if the commission finds that a certificate is
 394-24  necessary for the service, accommodation, convenience, or safety of
 394-25  the public.  The commission may issue a certificate as requested,
 394-26  or refuse to issue it, or issue it for the construction of only a
 394-27  portion of the contemplated system or facility or extension, or for
  395-1  the partial exercise only of the right or privilege.
  395-2        (c)  Certificates of convenience and necessity shall be
  395-3  granted on a nondiscriminatory basis after consideration by the
  395-4  commission of the adequacy of service currently provided to the
  395-5  requested area, the need for additional service in the requested
  395-6  area, the effect of the granting of a certificate on the recipient
  395-7  of the certificate and on any retail public utility of the same
  395-8  kind already serving the proximate area, the ability of the
  395-9  applicant to provide adequate service, the feasibility of obtaining
 395-10  service from an adjacent retail public utility, the financial
 395-11  stability of the applicant, including, if applicable, the adequacy
 395-12  of the applicant's debt-equity ratio, environmental integrity, and
 395-13  the probable improvement of service or lowering of cost to
 395-14  consumers in that area resulting from the granting of the
 395-15  certificate.  (Sec. 13.246, Water Code.)
 395-16        Sec. 12.245.  Area Included Within City, Town, or Village.
 395-17  (a)  If an area has been or is included within the boundaries of a
 395-18  city as the result of annexation, incorporation, or otherwise, all
 395-19  retail public utilities certified or entitled to certification
 395-20  under this chapter to provide service or operate facilities in that
 395-21  area before the inclusion may continue and extend service in its
 395-22  area of public convenience and necessity within the annexed or
 395-23  incorporated area pursuant to the rights granted by its certificate
 395-24  and this chapter.  Except as provided by Section 12.253, a
 395-25  municipally owned or operated utility may not provide retail water
 395-26  and sewer utility service within the area certificated to another
 395-27  retail public utility without first having obtained from the
  396-1  commission a certificate of public convenience and necessity that
  396-2  includes the areas to be served.
  396-3        (b)  Notwithstanding any other provision of law, a retail
  396-4  public utility may continue and extend service within its area of
  396-5  public convenience and necessity and utilize the roads, streets,
  396-6  highways, alleys, and public property to furnish retail utility
  396-7  service, subject to the authority of the governing body of a
  396-8  municipality to require any retail public utility, at its own
  396-9  expense, to relocate its facilities to permit the widening or
 396-10  straightening of streets, by giving to the retail public utility 30
 396-11  days' notice and specifying the new location for the facilities
 396-12  along the right-of-way of the street or streets.
 396-13        (c)  This section may not be construed as limiting the power
 396-14  of cities to incorporate or extend their boundaries by annexation,
 396-15  or as prohibiting any city from levying taxes and other special
 396-16  charges for the use of the streets as are authorized by Section
 396-17  182.025, Tax Code.  (Sec. 13.247, Water Code.)
 396-18        Sec. 12.246.  Contracts Valid and Enforceable.  Contracts
 396-19  between retail public utilities designating areas to be served and
 396-20  customers to be served by those retail public utilities, when
 396-21  approved by the commission after public notice and hearing, are
 396-22  valid and enforceable and are incorporated into the appropriate
 396-23  areas of public convenience and necessity.  (Sec. 13.248, Water
 396-24  Code.)
 396-25        Sec. 12.247.  Continuous and Adequate Service;
 396-26  Discontinuance, Reduction, or Impairment of Service.  (a)  Except
 396-27  as provided by this section or Section 12.248, any retail public
  397-1  utility that possesses or is required to possess a certificate of
  397-2  public convenience and necessity shall serve every consumer within
  397-3  its certified area and shall render continuous and adequate service
  397-4  within the area or areas.
  397-5        (b)  Unless the commission issues a certificate that neither
  397-6  the present nor future convenience and necessity will be adversely
  397-7  affected, the holder of a certificate or a person who possesses
  397-8  facilities used to provide utility service shall not discontinue,
  397-9  reduce, or impair service to a certified service area or part of a
 397-10  certified service area except for:
 397-11              (1)  nonpayment of charges for services provided by the
 397-12  certificate holder or a person who possesses facilities used to
 397-13  provide utility service;
 397-14              (2)  nonpayment of charges for sewer service provided
 397-15  by another retail public utility under an agreement between the
 397-16  retail public utility and the certificate holder or a person who
 397-17  possesses facilities used to provide utility service or under a
 397-18  commission order;
 397-19              (3)  nonuse; or
 397-20              (4)  other similar reasons in the usual course of
 397-21  business.
 397-22        (c)  Any discontinuance, reduction, or impairment of service,
 397-23  whether with or without approval of the commission, shall be in
 397-24  conformity with and subject to conditions, restrictions, and
 397-25  limitations that the commission prescribes.
 397-26        (d)  A retail public utility that has not been granted but is
 397-27  required by law to possess a certificate of public convenience and
  398-1  necessity may not discontinue, reduce, or impair retail water or
  398-2  sewer service to any ratepayer without approval of the regulatory
  398-3  authority except for:
  398-4              (1)  nonpayment of charges;
  398-5              (2)  nonuse; or
  398-6              (3)  other similar reasons in the usual course of
  398-7  business.
  398-8        (e)  Not later than the 48th hour after the hour in which a
  398-9  utility files a bankruptcy petition, the utility shall report this
 398-10  fact to the commission in writing.  (Sec. 13.250, Water Code.)
 398-11        Sec. 12.248.  Conditions Requiring Refusal of Service.  The
 398-12  holder of a certificate of public convenience and necessity shall
 398-13  refuse to serve a customer within its certified area if the holder
 398-14  of the certificate is prohibited from providing the service under
 398-15  Section 212.012 or 232.0047, Local Government Code.  (Sec. 13.2501,
 398-16  Water Code.)
 398-17        Sec. 12.249.  Sale, Assignment, or Lease of Certificate.
 398-18  Except as provided by Section 12.253, a utility or a water supply
 398-19  or sewer service corporation may not sell, assign, or lease a
 398-20  certificate of public convenience and necessity or any right
 398-21  obtained under a certificate unless the commission has determined
 398-22  that the purchaser, assignee, or lessee is capable of rendering
 398-23  adequate and continuous service to every consumer within the
 398-24  certified area, after considering the factors under Section
 398-25  12.244(c).  The sale, assignment, or lease shall be on the
 398-26  conditions prescribed by the commission.  (Sec. 13.251, Water
 398-27  Code.)
  399-1        Sec. 12.250.  Interference With Other Retail Public Utility.
  399-2  If a retail public utility in constructing or extending a line,
  399-3  plant, or system interferes or attempts to interfere with the
  399-4  operation of a line, plant, or system of any other retail public
  399-5  utility, or furnishes, makes available, renders, or extends retail
  399-6  water or sewer utility service to any portion of the service area
  399-7  of another retail public utility that has been granted or is not
  399-8  required to possess a certificate of public convenience and
  399-9  necessity, the commission may issue an order prohibiting the
 399-10  construction, extension, or provision of service or prescribing
 399-11  terms and conditions for locating the line, plant, or system
 399-12  affected or for the provision of the service.  (Sec. 13.252, Water
 399-13  Code.)
 399-14        Sec. 12.251.  Improvements in Service; Interconnecting
 399-15  Service.  After notice and hearing, the commission may:
 399-16              (1)  order any retail public utility that is required
 399-17  by law to possess a certificate of public convenience and necessity
 399-18  to provide specified improvements in its service in a defined area
 399-19  if service in that area is inadequate or is substantially inferior
 399-20  to service in a comparable area and it is reasonable to require the
 399-21  retail public utility to provide the improved service;
 399-22              (2)  order two or more public utilities or water supply
 399-23  or sewer service corporations to establish specified facilities for
 399-24  the interconnecting service; or
 399-25              (3)  issue an emergency order, with or without a
 399-26  hearing, under Section 12.041.  (Sec. 13.253, Water Code.)
 399-27        Sec. 12.252.  Revocation or Amendment of Certificate.  (a)
  400-1  The commission at any time after notice and hearing may revoke or
  400-2  amend any certificate of public convenience and necessity with the
  400-3  written consent of the certificate holder or if it finds that the
  400-4  certificate holder has never provided, is no longer providing, or
  400-5  has failed to provide continuous and adequate service in the area,
  400-6  or part of the area, covered by the certificate.
  400-7        (b)  If the certificate of any public utility is revoked or
  400-8  amended, the commission may require one or more public utilities to
  400-9  provide service in the area in question.  (Sec. 13.254, Water
 400-10  Code.)
 400-11        Sec. 12.253.  Single Certification in Incorporated or Annexed
 400-12  Areas.  (a)  In the event that an area is incorporated or annexed
 400-13  by a municipality, either before or after the effective date of
 400-14  this section, the municipality and a retail public utility that
 400-15  provides water or sewer service to all or part of the area pursuant
 400-16  to a certificate of convenience and necessity may agree in writing
 400-17  that all or part of the area may be served by a municipally owned
 400-18  utility, by a franchised utility, or by the retail public utility.
 400-19  In this section, the phrase "franchised utility" shall mean a
 400-20  retail public utility that has been granted a franchise by a
 400-21  municipality to provide water or sewer service inside municipal
 400-22  boundaries.  The agreement may provide for single or dual
 400-23  certification of all or part of the area, for the purchase of
 400-24  facilities or property, and for such other or additional terms that
 400-25  the parties may agree on.  If a franchised utility is to serve the
 400-26  area, the franchised utility shall also be a party to the
 400-27  agreement.  The executed agreement shall be filed with the
  401-1  commission, and the commission, on receipt of the agreement, shall
  401-2  incorporate the terms of the agreement into the respective
  401-3  certificates of convenience and necessity of the parties to the
  401-4  agreement.
  401-5        (b)  If an agreement is not executed within 180 days after
  401-6  the municipality, in writing, notifies the retail public utility of
  401-7  its intent to provide service to the incorporated or annexed area,
  401-8  and if the municipality desires and intends to provide retail
  401-9  utility service to the area, the municipality, prior to providing
 401-10  service to the area, shall file an application with the commission
 401-11  to grant single certification to the municipally owned water or
 401-12  sewer utility or to a franchised utility.  If an application for
 401-13  single certification is filed, the commission shall fix a time and
 401-14  place for a hearing and give notice of the hearing to the
 401-15  municipality and franchised utility, if any, and notice of the
 401-16  application and hearing to the retail public utility.
 401-17        (c)  The commission shall grant single certification to the
 401-18  municipality.  The commission shall also determine whether single
 401-19  certification as requested by the municipality would result in
 401-20  property of a retail public utility being rendered useless or
 401-21  valueless to the retail public utility, and shall determine in its
 401-22  order the monetary amount that is adequate and just to compensate
 401-23  the retail public utility for such property.  If the municipality
 401-24  in its application has requested the transfer of specified property
 401-25  of the retail public utility to the municipality or to a franchised
 401-26  utility, the commission shall also determine in its order the
 401-27  adequate and just compensation to be paid for such property
  402-1  pursuant to the provisions of this section, including an award for
  402-2  damages to property remaining in the ownership of the retail public
  402-3  utility after single certification.  The order of the commission
  402-4  shall not be effective to transfer property.  A transfer of
  402-5  property may only be obtained under this section by a court
  402-6  judgment rendered pursuant to Subsection (d) or (e).  The grant of
  402-7  single certification by the commission shall go into effect on the
  402-8  date the municipality or franchised utility, as the case may be,
  402-9  pays adequate and just compensation pursuant to court order, or
 402-10  pays an amount into the registry of the court or to the retail
 402-11  public utility under Subsection (f).  If the court judgment
 402-12  provides that the retail public utility is not entitled to any
 402-13  compensation, the grant of single certification shall go into
 402-14  effect when the court judgment becomes final.  The municipality or
 402-15  franchised utility must provide to each customer of the retail
 402-16  public utility being acquired an individual written notice within
 402-17  60 days after the effective date for the transfer specified in the
 402-18  court judgment.  The notice must clearly advise the customer of the
 402-19  identity of the new service provider, the reason for the transfer,
 402-20  the rates to be charged by the new service provider, and the
 402-21  effective date of those rates.
 402-22        (d)  In the event the final order of the commission is not
 402-23  appealed within 30 days, the municipality may request the district
 402-24  court of Travis County to enter a judgment consistent with the
 402-25  order of the commission.  In such event, the court shall render a
 402-26  judgment that:
 402-27              (1)  transfers to the municipally owned utility or
  403-1  franchised utility title to property to be transferred to the
  403-2  municipally owned utility or franchised utility as delineated by
  403-3  the commission's final order and property determined by the
  403-4  commission to be rendered useless or valueless by the granting of
  403-5  single certification; and
  403-6              (2)  orders payment to the retail public utility of
  403-7  adequate and just compensation for the property as determined by
  403-8  the commission in its final order.
  403-9        (e)  Any party that is aggrieved by a final order of the
 403-10  commission under this section may file an appeal with the district
 403-11  court of Travis County within 30 days after the order becomes
 403-12  final.  The hearing in such an appeal before the district court
 403-13  shall be by trial de novo on all issues.  After the hearing, if the
 403-14  court determines that the municipally owned utility or franchised
 403-15  utility is entitled to single certification under the provisions of
 403-16  this section, the court shall enter a judgment that:
 403-17              (1)  transfers to the municipally owned utility or
 403-18  franchised utility title to property requested by the municipality
 403-19  to be transferred to the municipally owned utility or franchised
 403-20  utility and located within the singly certificated area and
 403-21  property determined by the court or jury to be rendered useless or
 403-22  valueless by the granting of single certification; and
 403-23              (2)  orders payment in accordance with Subsection (g)
 403-24  to the retail public utility of adequate and just compensation for
 403-25  the property transferred and for the property damaged as determined
 403-26  by the court or jury.
 403-27        (f)  Transfer of property shall be effective on the date the
  404-1  judgment becomes final.  However, after the judgment of the court
  404-2  is entered, the municipality or franchised utility may take
  404-3  possession of condemned property pending appeal if the municipality
  404-4  or franchised utility pays the retail public utility or pays into
  404-5  the registry of the court, subject to withdrawal by the retail
  404-6  public utility, the amount, if any, established in the court's
  404-7  judgment as just and adequate compensation.  To provide security in
  404-8  the event an appellate court, or the trial court in a new trial or
  404-9  on remand, awards compensation in excess of the original award, the
 404-10  municipality or franchised utility, as the case may be, shall
 404-11  deposit in the registry of the court an additional sum in the
 404-12  amount of the award, or a surety bond in the same amount issued by
 404-13  a surety company qualified to do business in this state,
 404-14  conditioned to secure the payment of an award of damages in excess
 404-15  of the original award of the trial court.  On application by the
 404-16  municipality or franchised utility, the court shall order that
 404-17  funds deposited in the registry of the court be deposited in an
 404-18  interest-bearing account, and that interest accruing prior to
 404-19  withdrawal of the award by the retail public utility be paid to the
 404-20  municipality or to the franchised utility.  In the event the
 404-21  municipally owned utility or franchised utility takes possession of
 404-22  property or provides utility service in the singly certificated
 404-23  area pending appeal, and a court in a final judgment in an appeal
 404-24  under this section holds that the grant of single certification was
 404-25  in error, the retail public utility is entitled to seek
 404-26  compensation for any damages sustained by it in accordance with
 404-27  Subsection (g).
  405-1        (g)  For the purpose of implementing this section, the value
  405-2  of real property shall be determined by the commission, the court,
  405-3  or both the commission and the court according to the standards set
  405-4  forth in Chapter 21, Property Code, governing actions in eminent
  405-5  domain; the value of personal property shall be determined
  405-6  according to the rules to be promulgated by the commission pursuant
  405-7  to the factors in this subsection.  Such rules shall assure that
  405-8  compensation to a retail public utility for the taking and damaging
  405-9  of personal property, including the retail public utility's
 405-10  business, is just and adequate, and shall take into account the
 405-11  following factors:  impact on the existing indebtedness of the
 405-12  retail public utility and its ability to repay that debt, the value
 405-13  of the personal and real property of the retail public utility
 405-14  located within the area in question, the impact on future revenues
 405-15  and expenses of the retail public utility, and other relevant
 405-16  factors.
 405-17        (h)  A municipality or a franchised utility may dismiss an
 405-18  application for single certification without prejudice at any time
 405-19  before a judgment becomes final provided the municipality or the
 405-20  franchised public utility has not taken physical possession of
 405-21  property of the retail public utility or made payment for such
 405-22  right pursuant to Subsection (f).
 405-23        (i)  In the event that a municipality files an application
 405-24  for single certification on behalf of a franchised utility, the
 405-25  municipality shall be joined in such application by such franchised
 405-26  utility, and the franchised utility shall make all payments
 405-27  required in the court's judgment to adequately and justly
  406-1  compensate the retail public utility for any taking or damaging of
  406-2  property and for the transfer of property to such franchised
  406-3  utility.
  406-4        (j)  This section shall apply only in a case where:
  406-5              (1)  the retail public utility that is authorized to
  406-6  serve in the certificated area that is annexed or incorporated by
  406-7  the municipality is a nonprofit water supply or sewer service
  406-8  corporation; or
  406-9              (2)  the retail public utility that is authorized to
 406-10  serve in the certificated area that is annexed or incorporated by
 406-11  the municipality is a retail public utility, other than a nonprofit
 406-12  water supply or sewer service corporation, and whose service area
 406-13  is located entirely within the boundaries of a municipality with a
 406-14  population of 1.7 million or more according to the most recent
 406-15  federal census.
 406-16        (k)  The following conditions apply when a municipality or
 406-17  franchised utility makes an application to acquire the service area
 406-18  or facilities of a retail public utility described in Subsection
 406-19  (j)(2):
 406-20              (1)  the commission or court must determine that the
 406-21  service provided by the retail public utility is substandard or its
 406-22  rates are unreasonable in view of the reasonable expenses of the
 406-23  utility;
 406-24              (2)  if the municipality abandons its application, the
 406-25  court or the commission is authorized to award to the retail public
 406-26  utility its reasonable expenses related to the proceeding
 406-27  hereunder, including attorney fees; and
  407-1              (3)  unless otherwise agreed by the retail public
  407-2  utility, the municipality must take the entire utility property of
  407-3  the retail public utility in a proceeding hereunder.  (Sec. 13.255,
  407-4  Water Code.)
  407-5            (Sections 12.254-12.270 reserved for expansion)
  407-6    SUBCHAPTER I.  SANITARY STANDARDS OF DRINKING WATER; PROTECTION
  407-7             OF PUBLIC WATER SUPPLIES AND BODIES OF WATER
  407-8        Sec. 12.271.  Public Drinking Water.  (a)  Public drinking
  407-9  water must be free from deleterious matter and must comply with the
 407-10  standards established by the board or the United States Public
 407-11  Health Service.
 407-12        (b)  In a public place or an establishment catering to the
 407-13  public, a common drinking cup may not be used.
 407-14        (c)  Drinking water may not be served except in sanitary
 407-15  containers or through other sanitary mediums.
 407-16        (d)  In this section, "common drinking cup" means a water or
 407-17  other beverage receptacle used for serving more than one person.
 407-18  The term does not include a water or other beverage receptacle that
 407-19  is properly washed and sterilized after each use.  (Sec. 341.031,
 407-20  Health and Safety Code.)
 407-21        Sec. 12.272.  Drinking Water Provided by Common Carrier.  (a)
 407-22  Drinking water provided by a common carrier or the common carrier's
 407-23  agent shall be taken only from supplies certified as meeting the
 407-24  standards established by the commission.  The drinking water shall
 407-25  be kept and dispensed in a sanitary manner.
 407-26        (b)  A watering point must meet the standards of sanitation
 407-27  and water-handling practices established for those purposes by the
  408-1  board.  The commission shall certify each watering point that meets
  408-2  those standards.
  408-3        (c)  If a sanitary defect exists at the watering point, the
  408-4  commission shall issue a supplemental certification showing that
  408-5  the watering point is only provisionally approved.  If a sanitary
  408-6  defect continues after the expiration of a reasonable time provided
  408-7  to correct the defect, the commission shall notify the common
  408-8  carrier not to receive drinking water at the watering point
  408-9  involved.
 408-10        (d)  In this section:
 408-11              (1)  "Common carrier" means a licensed firm,
 408-12  corporation, or establishment that solicits and operates public
 408-13  freight or passenger transportation service, including a vehicle
 408-14  employed in that transportation service.
 408-15              (2)  "Watering point" means a place where drinking
 408-16  water is placed aboard a vehicle operated as a common carrier.
 408-17  (Sec. 341.032, Health and Safety Code.)
 408-18        Sec. 12.273.  Protection of Public Water Supplies.  (a)  A
 408-19  person may not furnish drinking water to the public for a charge
 408-20  unless the production, processing, treatment, and distribution are
 408-21  at all times under the supervision of a water supply system
 408-22  operator holding a valid certificate of competency issued under
 408-23  Section 12.274.
 408-24        (b)  An owner, agent, manager, operator, or other person in
 408-25  charge of a water supply system that furnishes water for public or
 408-26  private use may not knowingly furnish contaminated drinking water
 408-27  to a person or allow the appliances of the water supply system to
  409-1  become unsanitary.
  409-2        (c)  The owner or manager of a water supply system furnishing
  409-3  drinking water to at least 25,000 persons shall have the water
  409-4  tested at least once daily to determine its sanitary quality and
  409-5  shall submit monthly reports of the tests to the commission.
  409-6        (d)  The owner or manager of a water supply system furnishing
  409-7  drinking water to less than 25,000 persons shall submit to the
  409-8  commission during each monthly period of the system's operation at
  409-9  least one specimen of water taken from the supply for
 409-10  bacteriological analysis.  The population under this subsection
 409-11  shall be determined according to the most recent federal census or
 409-12  other population-determining methods if a federal census is not
 409-13  taken for the area served by the water supply system.
 409-14        (e)  The distribution system of a public drinking water
 409-15  supply and that of any other water supply may not be physically
 409-16  connected unless the other water is of a safe and sanitary quality
 409-17  and the commission approves the connection.
 409-18        (f)  A public drinking water supply may not be connected to a
 409-19  sprinkling, condensing, cooling, plumbing, or other system unless
 409-20  the connection is designed to ensure against a backflow or
 409-21  siphonage of sewage or contaminated water into the drinking water
 409-22  supply.
 409-23        (g)  On discovery of a connection in violation of Subsection
 409-24  (e) or (f), the local health authority shall give written notice to
 409-25  the owner or agent maintaining the condition.  The owner or agent
 409-26  shall make the necessary corrections to eliminate the condition.
 409-27        (h)  Subsections (a)-(d) do not apply to the production,
  410-1  distribution, or sale of raw, untreated surface water.  (Sec.
  410-2  341.033, Health and Safety Code.)
  410-3        Sec. 12.274.  Water Supply System Operator:  Certificate of
  410-4  Competency.  (a)  The commission shall adopt rules establishing
  410-5  classes of certificates, duration of certificates, and fees.
  410-6        (b)  Before a certificate of competency is issued or renewed,
  410-7  an applicant for or holder of a certificate must pay an annual $10
  410-8  fee.  On receipt of the required fee, the commission shall issue to
  410-9  a qualified person a certificate of competency.  (Sec. 341.034,
 410-10  Health and Safety Code.)
 410-11        Sec. 12.275.  Approved Plans Required for Public Water
 410-12  Supplies.  (a)  A person contemplating establishing a drinking
 410-13  water supply system for public use must submit completed plans and
 410-14  specifications to the commission before construction of the system.
 410-15  The commission shall approve plans that conform to the state's
 410-16  water safety laws.  The water supply system may be established only
 410-17  on the commission's approval.
 410-18        (b)  Any agency, including a municipality, supplying a
 410-19  drinking water service to the public that intends to make a
 410-20  material or major change in a water supply system that may affect
 410-21  the sanitary features of that utility must give written notice of
 410-22  that intention to the commission before making the change.
 410-23        (c)  A water supply system owner, manager, or operator or an
 410-24  agent of a water supply system owner, manager, or operator may not
 410-25  advertise or announce a water supply as being of a quality other
 410-26  than the quality that is disclosed by the commission's latest
 410-27  rating.
  411-1        (d)  The commission shall assemble and tabulate all necessary
  411-2  data relating to public drinking water supplies at least once each
  411-3  year and as often during the year as conditions demand or justify.
  411-4  The data forms the basis of an official comparative rating of
  411-5  public drinking water supply systems.
  411-6        (e)  A water supply system that attains an approved rating is
  411-7  entitled to erect signs of a design approved by the commission on
  411-8  highways approaching the municipality in which the water supply
  411-9  system is located.  The signs shall be immediately removed on
 411-10  notice from the commission if the water supply system does not
 411-11  continue to meet the specified standards.  (Sec. 341.035, Health
 411-12  and Safety Code.)
 411-13        Sec. 12.276.  Sanitary Defects at Public Drinking Water
 411-14  Supply Systems.  (a)  A sanitary defect at a public drinking water
 411-15  supply system that obtains its water supply from underground
 411-16  sources shall be immediately corrected.
 411-17        (b)  A public drinking water supply system furnishing
 411-18  drinking water from underground sources may not be established in a
 411-19  place subject to possible pollution by floodwaters unless the
 411-20  system is adequately protected against flooding.
 411-21        (c)  Suction wells or suction pipes used in a public drinking
 411-22  water supply system must be constantly protected by practical
 411-23  safeguards against surface and subsurface pollution.
 411-24        (d)  Livestock may not be permitted to enter or remain in the
 411-25  wellhouse enclosure of a public drinking water supply system.
 411-26        (e)  Public drinking water distribution lines must be
 411-27  constructed of impervious materials with tight joints and must be a
  412-1  reasonably safe distance from sewer lines.
  412-2        (f)  Water from a surface public drinking water supply may
  412-3  not be made accessible or delivered to a consumer for drinking
  412-4  purposes unless the water has been treated to make it safe for
  412-5  human consumption.  Water treatment plants, including aeration,
  412-6  coagulation, mixing, settling, filtration, and chlorinating units,
  412-7  shall be of a size and type prescribed by good public health
  412-8  engineering practices.
  412-9        (g)  A clear water reservoir shall be covered and be of a
 412-10  type and construction that prevents the entrance of dust, insects,
 412-11  and surface seepage.  (Sec. 341.036, Health and Safety Code.)
 412-12        Sec. 12.277.  Protection of Bodies of Water From Sewage.  The
 412-13  commission shall enforce state laws and take other necessary action
 412-14  to protect a spring, well, pond, lake, reservoir, or other stream
 412-15  in this state from any condition or pollution that results from
 412-16  sewage and that may endanger the public health.  (Sec. 341.037,
 412-17  Health and Safety Code.)
 412-18        Sec. 12.278.  Protection of Impounded Water From
 412-19  Disease-Bearing Mosquitoes.  A person that impounds water for
 412-20  public use shall cooperate with the commission and local
 412-21  departments of health to control disease-bearing mosquitoes on the
 412-22  impounded area.  (Sec. 341.038, Health and Safety Code.)
 412-23            (Sections 12.279-12.300 reserved for expansion)
 412-24              SUBCHAPTER J.  SALE OF PROPERTY AND MERGERS
 412-25        Sec. 12.301.  Report of Sale, Merger, Etc.; Investigation;
 412-26  Disallowance of Transaction.  (a)  A utility or a water supply or
 412-27  sewer service corporation shall notify the commission and give
  413-1  public notice unless public notice is waived by the executive
  413-2  director for good cause shown at least 120 days before the
  413-3  effective date of any sale, acquisition, lease, or rental of any
  413-4  water or sewer system required by law to possess a certificate of
  413-5  public convenience and necessity or of any merger or consolidation
  413-6  with such a utility or water supply or sewer service corporation.
  413-7        (b)  The commission shall with or without a public hearing,
  413-8  investigate the sale, acquisition, lease, or rental to determine
  413-9  whether the transaction will serve the public interest.
 413-10        (c)  Before the expiration of the 120-day notification
 413-11  period, the executive director shall notify all known parties to
 413-12  the transaction of the executive director's decision whether to
 413-13  request that the commission hold a public hearing to determine if
 413-14  the transaction will serve the public interest.  The executive
 413-15  director may request a hearing if:
 413-16              (1)  the notification to the commission or the public
 413-17  notice was improper;
 413-18              (2)  the person purchasing or acquiring the water or
 413-19  sewer system is inexperienced as a utility service provider;
 413-20              (3)  the person or an affiliated interest of the person
 413-21  purchasing or acquiring the water or sewer system has a history of
 413-22  noncompliance with the requirements of the commission or the Texas
 413-23  Department of Health or of continuing mismanagement or misuse of
 413-24  revenues as a utility service provider; or
 413-25              (4)  the person purchasing or acquiring the water or
 413-26  sewer system cannot demonstrate the financial ability to provide
 413-27  the necessary capital investment to ensure the provision of
  414-1  continuous and adequate service to the customers of the water or
  414-2  sewer system.
  414-3        (d)  Unless the executive director requests that a public
  414-4  hearing be held, the sale, acquisition, lease, or rental may be
  414-5  completed as proposed at the end of the 120-day period or may be
  414-6  completed at any time after the executive director notifies the
  414-7  utility or water supply or sewer service corporation that a hearing
  414-8  will not be requested.  If a hearing is requested or if the utility
  414-9  or water supply or sewer service corporation fails to provide the
 414-10  required notification or public notice, the sale, acquisition,
 414-11  lease, or rental may not be completed unless the commission
 414-12  determines that the proposed transaction serves the public
 414-13  interest.  A sale, acquisition, lease, or rental of any water or
 414-14  sewer system required by law to possess a certificate of public
 414-15  convenience and necessity that is not completed in accordance with
 414-16  the provisions of this section is void.
 414-17        (e)  This section does not apply to the purchase of
 414-18  replacement property or to a transaction under Section 12.253.
 414-19        (f)  If a public utility facility or system is sold and the
 414-20  facility or system was partially or wholly constructed with
 414-21  customer contributions in aid of construction derived from specific
 414-22  surcharges approved by the regulatory authority over and above
 414-23  revenues required for normal operating expenses and return, the
 414-24  public utility may not sell or transfer any of its assets, its
 414-25  certificate of convenience and necessity, or controlling interest
 414-26  in an incorporated utility, unless the utility provides to the
 414-27  purchaser or transferee before the date of the sale or transfer a
  415-1  written disclosure relating to the contributions.  The disclosure
  415-2  must contain, at a minimum, the total dollar amount of the
  415-3  contributions and a statement that the contributed property or
  415-4  capital may not be included in invested capital or allowed
  415-5  depreciation expense by the regulatory authority in rate-making
  415-6  proceedings.
  415-7        (g)  A utility or a water supply or sewer service corporation
  415-8  that proposes to sell, assign, lease, or rent its facilities shall
  415-9  notify the other party to the transaction of the requirements of
 415-10  this section before signing an agreement to sell, assign, lease, or
 415-11  rent its facilities.  (Sec. 13.301, Water Code.)
 415-12        Sec. 12.302.  Purchase of Voting Stock in Another Public
 415-13  Utility:  Report.  (a)  A utility may not purchase voting stock in
 415-14  another utility doing business in this state and a person may not
 415-15  acquire a controlling interest in a utility doing business in this
 415-16  state unless the person or utility notifies the commission of the
 415-17  proposed purchase or acquisition not later than the 61st day before
 415-18  the date on which the transaction is to occur.
 415-19        (b)  The executive director may request that the commission
 415-20  hold a public hearing on the transaction if the executive director
 415-21  believes that a criterion prescribed by Section 12.301(c) applies.
 415-22        (c)  Unless the executive director requests that a public
 415-23  hearing be held, the purchase or acquisition may be completed as
 415-24  proposed at the end of the 60-day period or may be completed at any
 415-25  time after the executive director notifies the person or utility
 415-26  that a hearing will not be requested.  If a hearing is requested or
 415-27  if the person or utility fails to provide the required notification
  416-1  to the commission, the purchase or acquisition may not be completed
  416-2  unless the commission determines that the proposed transaction
  416-3  serves the public interest.  A purchase or acquisition that is not
  416-4  completed in accordance with the provisions of this section is
  416-5  void.  (Sec. 13.302, Water Code.)
  416-6        Sec. 12.303.  Loans to Stockholders:  Report.  A utility may
  416-7  not loan money, stocks, bonds, notes, or other evidences of
  416-8  indebtedness to any corporation or person owning or holding
  416-9  directly or indirectly any stock of the utility unless the utility
 416-10  reports the transaction to the commission within 60 days after the
 416-11  date of the transaction.  (Sec. 13.303, Water Code.)
 416-12        Sec. 12.304.  Foreclosure Report.  A utility that receives
 416-13  notice that all or a portion of the utility's facilities or
 416-14  property used to provide utility service are being posted for
 416-15  foreclosure shall notify the commission in writing of that fact not
 416-16  later than the 10th day after the date on which the utility
 416-17  receives the notice.  (Sec. 13.304, Water Code.)
 416-18            (Sections 12.305-12.340 reserved for expansion)
 416-19          SUBCHAPTER K.  RELATIONS WITH AFFILIATED INTERESTS
 416-20        Sec. 12.341.  Jurisdiction over Affiliated Interests.  The
 416-21  commission has jurisdiction over affiliated interests having
 416-22  transactions with utilities under the jurisdiction of the
 416-23  commission to the extent of access to all accounts and records of
 416-24  those affiliated interests relating to such transactions, including
 416-25  but in no way limited to accounts and records of joint or general
 416-26  expenses, any portion of which may be applicable to those
 416-27  transactions.  (Sec. 13.341, Water Code.)
  417-1        Sec. 12.342.  Disclosure of Substantial Interest in Voting
  417-2  Securities.  The commission may require the disclosure of the
  417-3  identity and respective interests of every owner of any substantial
  417-4  interest in the voting securities of any utility or its affiliated
  417-5  interest.  One percent or more is a substantial interest within the
  417-6  meaning of this section.  (Sec. 13.342, Water Code.)
  417-7            (Sections 12.343-12.500 reserved for expansion)
  417-8         SUBCHAPTER L.  SUBMETERING IN MULTIPLE USE FACILITIES
  417-9        Sec. 12.501.  Definitions.  In this subchapter:
 417-10              (1)  "Apartment house" means one or more buildings
 417-11  containing five or more dwelling units which are occupied primarily
 417-12  for nontransient use, including a residential condominium whether
 417-13  rented or owner occupied, and having rental paid, if a dwelling
 417-14  unit is rented, at intervals of one month or longer.
 417-15              (2)  "Dwelling unit" means:
 417-16                    (A)  one or more rooms in an apartment house or
 417-17  condominium, suitable for occupancy as a residence, and containing
 417-18  kitchen and bathroom facilities; or
 417-19                    (B)  a mobile home in a mobile home park.
 417-20              (3)  "Customer" means the individual, firm, or
 417-21  corporation in whose name a master meter has been connected by the
 417-22  utility service provider.
 417-23              (4)  "Nonsubmetered master metered utility service"
 417-24  means water utility service that is master metered for the
 417-25  apartment house but not submetered, and wastewater utility service
 417-26  based on master metered water utility service.
 417-27              (5)  "Owner" means the legal titleholder of an
  418-1  apartment house, mobile home park, or multiple use facility and any
  418-2  individual, firm, or corporation that purports to be the landlord
  418-3  of tenants in the apartment house, mobile home park, or multiple
  418-4  use facility.
  418-5              (6)  "Tenant" means a person who is entitled to occupy
  418-6  a dwelling unit or multiple use facility unit to the exclusion of
  418-7  others and who is obligated to pay for the occupancy under a
  418-8  written or oral rental agreement.
  418-9              (7)  "Multiple use facility" means commercial or
 418-10  industrial parks, office complexes, marinas, and others
 418-11  specifically identified in commission rules with five or more
 418-12  units.
 418-13              (8)  "Mobile home park" means a property on which
 418-14  parking spaces are rented to mobile dwelling units primarily for
 418-15  nontransient use and for which rental is paid at intervals of one
 418-16  month or longer.  (Sec. 13.501, Water Code.)
 418-17        Sec. 12.502.  Submetering.  An apartment house owner, mobile
 418-18  home park owner, multiple use facility owner, or condominium
 418-19  manager may provide for submetering of each dwelling unit or rental
 418-20  unit for the measurement of the quantity of water, if any, consumed
 418-21  by the occupants of that unit.  (Sec. 13.502, Water Code.)
 418-22        Sec. 12.503.  Submetering Rules.  Notwithstanding any other
 418-23  law, the commission shall adopt rules and standards under which an
 418-24  owner, operator, or manager of an apartment house, mobile home
 418-25  park, or multiple use facility that is not individually metered for
 418-26  water for each rental or dwelling unit may install submetering
 418-27  equipment for each individual rental or dwelling unit for the
  419-1  purpose of fairly allocating the cost of each individual rental or
  419-2  dwelling unit's water consumption, including wastewater charges
  419-3  based on water consumption.  In addition to other appropriate
  419-4  safeguards for the tenant, the rules shall require that an
  419-5  apartment house owner, mobile home park owner, multiple use
  419-6  facility owner, or condominium manager may not impose on the tenant
  419-7  any extra charges, over and above the cost per gallon that is
  419-8  charged by the retail public utility to the owner or manager, and
  419-9  that the rental unit or apartment house owner or manager shall
 419-10  maintain adequate records regarding submetering and make the
 419-11  records available for inspection by the tenant during reasonable
 419-12  business hours.  All submetering equipment is subject to the rules
 419-13  and standards established by the commission for accuracy, testing,
 419-14  and record keeping of meters installed by utilities and to the
 419-15  meter-testing requirements of Section 12.140.  (Sec. 13.503, Water
 419-16  Code.)
 419-17        Sec. 12.5031.  Nonsubmetering Rules.  Notwithstanding any
 419-18  other law, the commission shall adopt rules and standards governing
 419-19  billing systems or methods used by apartment house owners,
 419-20  condominium managers, or owners of other multiple use facilities
 419-21  for prorating or allocating among tenants nonsubmetered master
 419-22  metered utility service costs.   In addition to other appropriate
 419-23  safeguards for the tenant, those rules shall require that:
 419-24              (1)  the rental agreement contain a clear written
 419-25  description of the method of calculation of the allocation of
 419-26  nonsubmetered master metered utilities for the apartment house or
 419-27  multiple use facility;
  420-1              (2)  the rental agreement contain a statement of the
  420-2  average apartment or multiple use facility unit monthly bill for
  420-3  all units for any allocation of those utilities for the previous
  420-4  calendar year;
  420-5              (3)  an owner or condominium manager may not impose
  420-6  additional charges on a tenant in excess of the actual charges
  420-7  imposed on the owner or condominium manager for utility consumption
  420-8  by the apartment house or multiple use facility;
  420-9              (4)  the owner or condominium manager shall maintain
 420-10  adequate records regarding the utility consumption of the apartment
 420-11  house or multiple use facility, the charges assessed by the retail
 420-12  public utility, and the allocation of the utility costs to the
 420-13  tenants; and
 420-14              (5)  the owner or condominium manager shall maintain
 420-15  all necessary records concerning utility allocations, including the
 420-16  retail public utility's bills, and shall make the records available
 420-17  for inspection by the tenants during normal business hours.  (Sec.
 420-18  13.5031, Water Code.)
 420-19        Sec. 12.504.  Improper Rental Rate Increase.  If, during the
 420-20  90-day period preceding the installation of individual meters or
 420-21  submeters, an owner, operator, or manager of an apartment house,
 420-22  mobile home park or other multiple use facility has increased
 420-23  rental rates and the increase is attributable to increased costs of
 420-24  utilities, the owner, operator, or manager shall immediately reduce
 420-25  the rental rate by the amount of the increase and refund all of the
 420-26  increase that has previously been collected within the 90-day
 420-27  period.  (Sec. 13.504, Water Code.)
  421-1        Sec. 12.505.  Enforcement.  In addition to the enforcement
  421-2  provisions contained in Subchapter G, if an apartment house owner,
  421-3  condominium manager, mobile home park owner, or other multiple use
  421-4  facility owner violates a rule of the commission regarding
  421-5  submetering of utility service consumed exclusively within the
  421-6  tenant's dwelling unit or multiple use facility unit or
  421-7  nonsubmetered master metered utility costs, the tenant may recover
  421-8  three times the amount of any overcharge, a civil penalty equal to
  421-9  one month's rent, reasonable attorney's fees, and court costs from
 421-10  the owner or condominium manager.  However, an owner of an
 421-11  apartment house, mobile home park, or other multiple use facility
 421-12  or condominium manager is not liable for a civil penalty if the
 421-13  owner or condominium manager proves the violation was a good faith,
 421-14  unintentional mistake.  (Sec. 13.505, Water Code.)
 421-15            (Sections 12.506-12.510 reserved for expansion)
 421-16                SUBCHAPTER M.  PRIVATIZATION CONTRACTS
 421-17        Sec. 12.511.  Definitions.  In this subchapter:
 421-18              (1)  "Eligible city" means any municipality whose
 421-19  waterworks and sewer system is operated by a board of utility
 421-20  trustees pursuant to provisions of a home-rule charter.
 421-21              (2)  "Privatization contract" means any contract,
 421-22  agreement, or letter of intent or group of the same by which any
 421-23  eligible city contracts with a service provider to provide for the
 421-24  financing, acquisition, improvement, or construction of sewage
 421-25  treatment and disposal facilities pursuant to which such service
 421-26  provider or its assignee or subcontractor will own, operate, and
 421-27  maintain such facilities and provide sewage treatment and disposal
  422-1  services to the eligible city or any contract pursuant to which
  422-2  such service provider agrees to operate and maintain, or have its
  422-3  subcontractor operate and maintain all or any part of the eligible
  422-4  city's sewage treatment and disposal facilities.
  422-5              (3)  "Service provider" means any person or group of
  422-6  persons who is a party to a privatization contract which thereby
  422-7  contracts to provide sewage treatment and disposal services to an
  422-8  eligible city.  (Sec. 13.511, Water Code.)
  422-9        Sec. 12.512.  Authority to Enter Into Privatization
 422-10  Contracts.  Any eligible city is authorized to enter into
 422-11  privatization contracts if such action is recommended by the board
 422-12  of utility trustees and authorized by the governing body of the
 422-13  eligible city pursuant to an ordinance.  Any privatization contract
 422-14  entered into prior to the effective date of this Act is validated,
 422-15  ratified, and approved.  Each eligible city shall file a copy of
 422-16  its privatization contract with the commission, for information
 422-17  purposes only, within 60 days of execution or the effective date of
 422-18  this Act, whichever is later.  (Sec. 13.512, Water Code.)
 422-19        Sec. 12.513.  Election by Eligible City to Exempt Service
 422-20  Provider From Commission Jurisdiction.  A service provider shall
 422-21  not constitute a "water and sewer utility," a "public utility," a
 422-22  "utility," or a "retail public utility" within the meaning of this
 422-23  chapter as a result of entering into or performing a privatization
 422-24  contract, if the governing body of the eligible city shall so elect
 422-25  by ordinance and provide notice thereof in writing to the
 422-26  commission; provided, however, this provision shall not affect the
 422-27  application of this chapter to an eligible city itself.
  423-1  Notwithstanding anything contained in this section, any service
  423-2  provider who seeks to extend or render sewer service to any person
  423-3  or municipality other than, or in addition to, an eligible city may
  423-4  be a "public utility" for the purposes of this chapter with respect
  423-5  to such other person or municipality.  (Sec. 13.513, Water Code.)
  423-6        Sec. 12.514.  Term and Provisions of a Privatization
  423-7  Contract.  A privatization contract may be for a term and contain
  423-8  provisions that the governing body of an eligible city determines
  423-9  are in the best interests of the eligible city, including
 423-10  provisions relating to allocation of liabilities, indemnification,
 423-11  and purchase of all or a portion of the facilities.  (Sec. 13.514,
 423-12  Water Code.)
 423-13        Sec. 12.515.  Payments Under a Privatization Contract.
 423-14  Payments by an eligible city under a privatization contract shall,
 423-15  if so provided, constitute an operating expense of the eligible
 423-16  city's sanitary sewer system or combined waterworks and sanitary
 423-17  sewer system, except that any payment for purchase of the
 423-18  facilities is payable from a pledge and lien on the net revenues of
 423-19  the eligible city's sanitary sewer system or combined waterworks
 423-20  and sanitary sewer system.  (Sec. 13.515, Water Code.)
 423-21              CHAPTER 13.  UNDERGROUND INJECTION CONTROL
 423-22                   SUBCHAPTER A.  GENERAL PROVISIONS
 423-23        Sec. 13.001.  Short Title.  This chapter may be cited as the
 423-24  Injection Well Act.  (Sec. 27.001, Water Code.)
 423-25        Sec. 13.002.  Definitions.  In this chapter:
 423-26              (1)  "Railroad commission" means the Railroad
 423-27  Commission of Texas.
  424-1              (2)  "Pollution" means the alteration of the physical,
  424-2  chemical, or biological quality of, or the contamination of, water
  424-3  that makes it harmful, detrimental, or injurious to humans, animal
  424-4  life, vegetation, or property or to public health, safety, or
  424-5  welfare, or impairs the usefulness or the public enjoyment of the
  424-6  water for any lawful or reasonable purpose.
  424-7              (3)  "Industrial and municipal waste" means any liquid,
  424-8  gaseous, solid, or other waste substance, or combination of these
  424-9  substances, which may cause or might reasonably be expected to
 424-10  cause pollution of fresh water and which result from:
 424-11                    (A)  processes of industry, manufacturing, trade,
 424-12  or business;
 424-13                    (B)  development or recovery of natural resources
 424-14  other than oil or gas; or
 424-15                    (C)  disposal of sewage or other wastes of
 424-16  cities, towns, villages, communities, water districts, and other
 424-17  municipal corporations.
 424-18              (4)  "Oil and gas waste" means waste arising out of or
 424-19  incidental to drilling for or producing of oil, gas, or geothermal
 424-20  resources, waste arising out of or incidental to the underground
 424-21  storage of hydrocarbons other than storage in artificial tanks or
 424-22  containers, or waste arising out of or incidental to the operation
 424-23  of gasoline plants, natural gas processing plants, or pressure
 424-24  maintenance or repressurizing plants.  The term includes but is not
 424-25  limited to salt water, brine, sludge, drilling mud, and other
 424-26  liquid or semi-liquid waste material.
 424-27              (5)  "Fluid" means a material or substance that flows
  425-1  or moves in a liquid, gaseous, solid, semi-solid, sludge, or other
  425-2  form or state.
  425-3              (6)  "Fresh water" means water having bacteriological,
  425-4  physical, and chemical properties which make it suitable and
  425-5  feasible for beneficial use for any lawful purpose.
  425-6              (7)  "Casing" means material lining used to seal off
  425-7  strata at and below the earth's surface.
  425-8              (8)  "Disposal well" means an injection well that is
  425-9  used for the injection of industrial and municipal waste or oil and
 425-10  gas waste.
 425-11              (9)  "Injection well" means an artificial excavation or
 425-12  opening in the ground made by digging, boring, drilling, jetting,
 425-13  driving, or some other method, and used to inject, transmit, or
 425-14  dispose of industrial and municipal waste or oil and gas waste into
 425-15  a subsurface stratum; or a well initially drilled to produce oil
 425-16  and gas which is used to transmit, inject, or dispose of industrial
 425-17  and municipal waste or oil and gas waste into a subsurface stratum;
 425-18  or a well used for the injection of any other fluid; but the term
 425-19  does not include any surface pit, surface excavation, or natural
 425-20  depression used to dispose of industrial and municipal waste or oil
 425-21  and gas waste.
 425-22              (10)  "Extraction of minerals" means the use of an
 425-23  injection well for the development or recovery of natural resources
 425-24  other than resources subject to the jurisdiction of the railroad
 425-25  commission, and includes solution mining of minerals, in situ
 425-26  uranium mining, and mining of sulfur by the Frasch process, but
 425-27  does not include the solution mining of salt when leaching a cavern
  426-1  for the storage of hydrocarbons.
  426-2              (11)  "Hazardous waste" has the meaning assigned to
  426-3  that term by Section 20.003.  (Sec. 27.002, Water Code.)
  426-4        Sec. 13.003.  Policy and Purpose.  It is the policy of this
  426-5  state and the purpose of this chapter to maintain the quality of
  426-6  fresh water in the state to the extent consistent with the public
  426-7  health and welfare, the operation of existing industries, and the
  426-8  economic development of the state, to prevent underground injection
  426-9  that may pollute fresh water, and to require the use of all
 426-10  reasonable methods to implement this policy.  (Sec. 27.003, Water
 426-11  Code.)
 426-12            (Sections 13.004-13.010 reserved for expansion)
 426-13               SUBCHAPTER B.  JURISDICTION OF COMMISSION
 426-14        Sec. 13.011.  Permit From Commission.  Unless the activity is
 426-15  subject to the jurisdiction of the railroad commission or
 426-16  authorized by a rule of the commission, no person may continue
 426-17  utilizing an injection well or begin drilling an injection well or
 426-18  converting an existing well into an injection well to dispose of
 426-19  industrial and municipal waste, to extract minerals, or to inject a
 426-20  fluid without first obtaining a permit from the commission.
 426-21  (Sec. 27.011, Water Code.)
 426-22        Sec. 13.012.  Application for Permit.  The commission shall
 426-23  prescribe forms for application for a permit and shall make the
 426-24  forms available on request without charge.  (Sec. 27.012, Water
 426-25  Code.)
 426-26        Sec. 13.013.  Information Required of Applicant.  An
 426-27  applicant shall furnish any information the executive director
  427-1  considers necessary to discharge his duties under this chapter and
  427-2  the rules of the commission.  (Sec. 27.013, Water Code.)
  427-3        Sec. 13.014.  Letter From Railroad Commission.  A person
  427-4  making application to the commission for a disposal well permit
  427-5  under this chapter shall submit with the application a letter from
  427-6  the railroad commission stating that drilling or using the disposal
  427-7  well and injecting industrial and municipal waste into the
  427-8  subsurface stratum will not endanger or injure any oil or gas
  427-9  formation.  (Sec. 27.015, Water Code.)
 427-10        Sec. 13.015.  LETTER PREREQUISITE TO HEARING.  In a hearing
 427-11  on an application for a disposal well permit under this chapter,
 427-12  the commission may not proceed to hearing on any issues other than
 427-13  preliminary matters such as notice until the letter required from
 427-14  the railroad commission under Subsection (a) is provided to the
 427-15  commission.  (Sec. 27.015, Water Code.)
 427-16        Sec. 13.016.  Inspection of Well Location.  On receiving an
 427-17  application for a permit, the executive director shall have an
 427-18  inspection made of the location of the proposed disposal well to
 427-19  determine the local conditions and the probable effect of the well
 427-20  and shall determine the requirements for the setting of casing, as
 427-21  provided in Sections 13.051, 13.056, and 13.057.  (Sec. 27.016,
 427-22  Water Code.)
 427-23        Sec. 13.017.  Recommendations From Other Agencies.  The
 427-24  executive director shall submit to the Texas Department of Health,
 427-25  and to other persons that the commission may designate, copies of
 427-26  every application received in proper form.  These agencies,
 427-27  persons, and divisions may make recommendations to the commission
  428-1  concerning any aspect of the application within 30 days.
  428-2  (Sec. 27.017, Water Code.)
  428-3        Sec. 13.018.  Hearing on Permit Application.  (a)  If it is
  428-4  considered necessary and in the public interest, the commission may
  428-5  hold a public hearing on the application.  The commission shall
  428-6  hold a hearing on a permit application for an injection well to
  428-7  dispose of industrial and municipal waste if a hearing is requested
  428-8  by a local government located in the county of the proposed
  428-9  disposal well site or by an affected person.  In this subsection,
 428-10  "local government" has the meaning provided for that term by
 428-11  Chapter 10.
 428-12        (b)  The commission by rule shall provide for giving notice
 428-13  of the opportunity to request a public hearing on a permit
 428-14  application.  The rules for notice shall include provisions for
 428-15  giving notice to local governments and affected persons.  The
 428-16  commission shall define "affected person" by rule.
 428-17        (c)  Before the commission begins to hear testimony in a
 428-18  contested case as defined by the Administrative Procedure and Texas
 428-19  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes),
 428-20  evidence must be placed in the record to demonstrate that proper
 428-21  notice regarding the hearing was given to affected persons.  If
 428-22  mailed notice to an affected person is required, the commission or
 428-23  other party to the hearing shall place evidence in the record that
 428-24  notice was mailed to the address of the affected person included in
 428-25  the appropriate county tax rolls at the time of mailing.  For the
 428-26  purposes of this subsection, the affidavit of the commission
 428-27  employee responsible for the mailing of the notice, attesting to
  429-1  the fact that notice was mailed to the address included in the tax
  429-2  rolls at the time of mailing, shall be prima facie evidence of
  429-3  proper mailing.  The commission may not proceed with receipt of
  429-4  testimony in a contested case until there is compliance with this
  429-5  subsection.
  429-6        (d)  An application for an injection well to dispose of
  429-7  hazardous waste shall be subject to the pre-application local
  429-8  review process established by Section 20.063 and to the
  429-9  requirements of Section 20.074.  (Sec. 27.018, Water Code.)
 429-10        Sec. 13.019.  Rules, Etc.  (a)  The commission shall adopt
 429-11  rules and procedures reasonably required for the performance of its
 429-12  powers, duties, and functions under this chapter.
 429-13        (b)  Copies of any rules under this chapter proposed by the
 429-14  commission shall before their adoption be sent to the railroad
 429-15  commission, the Texas Department of Health, and any other persons
 429-16  the commission may designate.  Any agency or person to whom the
 429-17  copies of proposed rules are sent may submit comments and
 429-18  recommendations to the commission and shall have reasonable time to
 429-19  do so as the commission may prescribe.  (Sec. 27.019, Water Code.)
 429-20        Sec. 13.020.  Mining of Sulfur.  The commission is authorized
 429-21  to develop a regulatory program with respect to the injection of
 429-22  fluid associated with the mining of sulfur by the Frasch process in
 429-23  accordance with the provisions of this chapter.  The commission may
 429-24  not impose any requirements more stringent than those promulgated
 429-25  by the administrator of the United States Environmental Protection
 429-26  Agency pursuant to the federal Safe Drinking Water Act, 42 U.S.C.
 429-27  300h et seq., as amended, unless the commission determines that
  430-1  more stringent regulations are necessary to protect human health or
  430-2  the environment.  (Sec. 27.020, Water Code.)
  430-3            (Sections 13.021-13.050 reserved for expansion)
  430-4             SUBCHAPTER C.  PERMITS; TERMS AND CONDITIONS
  430-5        Sec. 13.051.  Issuance of Permit.  (a)  The commission may
  430-6  grant an application in whole or part and may issue the permit if
  430-7  it finds:
  430-8              (1)  that the use or installation of the injection well
  430-9  is in the public interest;
 430-10              (2)  that no existing rights, including, but not
 430-11  limited to, mineral rights, will be impaired;
 430-12              (3)  that, with proper safeguards, both ground and
 430-13  surface fresh water can be adequately protected from pollution;
 430-14              (4)  that the applicant has made a satisfactory showing
 430-15  of financial responsibility if required by Section 13.058;
 430-16              (5)  that the applicant has provided for the proper
 430-17  operation of the proposed hazardous waste injection well;
 430-18              (6)  that the applicant for a hazardous waste injection
 430-19  well not located in an area of industrial land use has made a
 430-20  reasonable effort to ensure that the burden, if any, imposed by the
 430-21  proposed hazardous waste injection well on local law enforcement,
 430-22  emergency medical or fire-fighting personnel, or public roadways,
 430-23  will be reasonably minimized or mitigated; and
 430-24              (7)  that the applicant owns or has made a good faith
 430-25  claim to, or has the consent of the owner to utilize, or has an
 430-26  option to acquire, or has the authority to acquire through eminent
 430-27  domain, the property or portions of the property where the
  431-1  hazardous waste injection well will be constructed.
  431-2        (b)  The railroad commission may grant an application in
  431-3  whole or part and may issue the permit if it finds:
  431-4              (1)  that the use or installation of the injection well
  431-5  is in the public interest;
  431-6              (2)  that the use or installation of the injection well
  431-7  will not endanger or injure any oil, gas, or other mineral
  431-8  formation;
  431-9              (3)  that, with proper safeguards, both ground and
 431-10  surface fresh water can be adequately protected from pollution; and
 431-11              (4)  that the applicant has made a satisfactory showing
 431-12  of financial responsibility if required by Section 13.058.
 431-13        (c)  In the permit, the commission or railroad commission
 431-14  shall impose terms and conditions reasonably necessary to protect
 431-15  fresh water from pollution, including the necessary casing.
 431-16        (d)  The commission, in determining if the use or
 431-17  installation of an injection well for the disposal of hazardous
 431-18  waste is in the public interest under Subsection (a)(1), shall
 431-19  consider, but shall not be limited to the consideration of:
 431-20              (1)  compliance history of the applicant in accordance
 431-21  with the provisions of Subsection (e);
 431-22              (2)  whether there is a practical, economic, and
 431-23  feasible alternative to an injection well reasonably available to
 431-24  manage the types and classes of hazardous waste; and
 431-25              (3)  whether the applicant will maintain sufficient
 431-26  public liability insurance for bodily injury and property damage to
 431-27  third parties that is caused by sudden and non-sudden accidents or
  432-1  will otherwise demonstrate financial responsibility in a manner
  432-2  adopted by the commission in lieu of public liability insurance.  A
  432-3  liability insurance policy which satisfies the policy limits
  432-4  required by the hazardous waste management regulations of the
  432-5  commission for the applicant's proposed pre-injection facilities
  432-6  shall be deemed "sufficient" under this subdivision if the policy:
  432-7                    (A)  covers the injection well; and
  432-8                    (B)  is issued by a company that is authorized to
  432-9  do business and to write that kind of insurance in this state and
 432-10  is solvent and not currently under supervision or in
 432-11  conservatorship or receivership in this state or any other state.
 432-12        (e)  The commission shall establish a procedure by rule for
 432-13  its preparation of compliance summaries relating to the history of
 432-14  compliance and noncompliance by the applicant with the rules
 432-15  adopted or orders or permits issued by the commission under this
 432-16  chapter for any injection well for which a permit has been issued
 432-17  under this chapter.  The compliance summaries shall be made
 432-18  available to the applicant and any interested person after the
 432-19  commission has completed its technical review of the permit
 432-20  application and prior to the promulgation of the public notice
 432-21  relating to the issuance of the permit.  Evidence of compliance or
 432-22  noncompliance by an applicant for an injection well for the
 432-23  disposal of hazardous waste with the rules adopted or orders or
 432-24  permits issued by the commission under this chapter may be offered
 432-25  by any party at a hearing on the applicant's application and
 432-26  admitted into evidence subject to applicable rules of evidence.
 432-27  All evidence admitted, including compliance history, shall be
  433-1  considered by the commission in determining whether to issue,
  433-2  amend, extend or renew a permit.
  433-3        (f)  In the issuance of a permit for a hazardous waste
  433-4  injection well into a salt dome, the commission shall consider the
  433-5  location of any geologic fault in the salt dome in the immediate
  433-6  proximity of the injection well bore, the presence of an
  433-7  underground water aquifer, and the presence of sulfur mines or oil
  433-8  and gas wells in the area.
  433-9        (g)(1)  The commission may not issue a permit for a hazardous
 433-10  waste injection well in a solution-mined salt dome cavern unless
 433-11  the United States Environmental Protection Agency and the
 433-12  commission determine that sufficient rules are in place to regulate
 433-13  that activity.
 433-14              (2)  Before issuing a permit for a hazardous waste
 433-15  injection well in a solution-mined salt dome cavern, the commission
 433-16  by order must find that there is an urgent public necessity for the
 433-17  hazardous waste injection well.  The commission, in determining
 433-18  whether an urgent public necessity exists for the permitting of the
 433-19  hazardous waste injection well in a solution-mined salt dome
 433-20  cavern, must find that:
 433-21                    (A)  the injection well will be designed,
 433-22  constructed, and operated in a manner that provides at least the
 433-23  same degree of safety as required of other currently operating
 433-24  hazardous waste disposal technologies;
 433-25                    (B)  consistent with the need and desire to
 433-26  manage within the state hazardous wastes generated in the state,
 433-27  there is a substantial or obvious public need for additional
  434-1  hazardous waste disposal capacity and the hazardous waste injection
  434-2  well will contribute additional capacity toward servicing that
  434-3  need;
  434-4                    (C)  the injection well will be constructed and
  434-5  operated in a manner so as to safeguard public health and welfare
  434-6  and protect physical property and the environment;
  434-7                    (D)  the applicant has demonstrated that
  434-8  groundwater and surface waters, including public water supplies,
  434-9  will be protected from the release of hazardous waste from the
 434-10  salt-dome waste containment cavern; and
 434-11                    (E)  any other criteria required by the
 434-12  commission to satisfy that the test of urgency has been met.
 434-13  (Sec. 27.051, Water Code.)
 434-14        Sec. 13.052.  Conditions of Certain Permits.  (a)  If the
 434-15  railroad commission receives an application for an injection well
 434-16  permit for a well that is to be used for enhanced recovery of oil,
 434-17  before a permit for the well may be granted, the railroad
 434-18  commission shall require the applicant for the permit to provide
 434-19  written information relating to the material that the applicant
 434-20  plans to inject into the well for enhanced recovery purposes and to
 434-21  other material available to the applicant that might be used to
 434-22  inject into the well for enhanced recovery and shall make the
 434-23  determination required by Subsection (c).
 434-24        (b)  At the time the railroad commission receives an
 434-25  application under Subsection (a), it shall give notice to the
 434-26  commission that an application covered by this section is being
 434-27  considered and shall supply the commission with a copy of the
  435-1  application and a request for commission comment on the
  435-2  application.  On receiving the information requested under
  435-3  Subsection (a), the railroad commission shall notify the commission
  435-4  that the information has been received and make the information
  435-5  available for the commission's inspection.  The commission shall
  435-6  examine the application and information.  Before the railroad
  435-7  commission considers the application, the commission shall submit
  435-8  to the railroad commission written comments regarding the use of
  435-9  fresh water under the permit and any problems that the commission
 435-10  anticipates will result from the use of fresh water under the
 435-11  permit.  However, if the commission does not submit its written
 435-12  comments within 30 days after the request, the railroad commission
 435-13  may consider the application without the commission comments.
 435-14        (c)  On receiving the information required by Subsection (a),
 435-15  the railroad commission shall consider the information at the same
 435-16  time it considers whether or not to grant the permit, and if the
 435-17  applicant proposes to inject fresh water into the injection well
 435-18  for enhanced recovery, the railroad commission shall consider
 435-19  whether or not there is some other solid, liquid, or gaseous
 435-20  substance that is available to the applicant and that is
 435-21  economically and technically feasible for the applicant to use for
 435-22  enhanced recovery purposes.
 435-23        (d)  If the railroad commission finds that there is a solid,
 435-24  liquid, or gaseous substance other than fresh water available and
 435-25  economically and technically feasible for use in enhanced recovery
 435-26  under the permit, the railroad commission shall include as a
 435-27  condition of the permit, if granted, that the permittee use the
  436-1  other substance found to be available and economically and
  436-2  technically feasible and that the applicant not use fresh water or
  436-3  that the applicant use fresh water only to the extent specifically
  436-4  stated in the permit.
  436-5        (e)  This section does not apply to injection well permits
  436-6  that are in effect on September 1, 1983.  If fresh water is being
  436-7  injected into an injection well in an enhanced recovery program
  436-8  that is in effect on September 1, 1983, and after that time,
  436-9  another substance or material is used for injection for a period of
 436-10  time, the injection well permit is not canceled, and a new permit
 436-11  under this chapter is not required if the operator plans at a later
 436-12  date to resume the use of fresh water for injection in that
 436-13  enhanced recovery program.
 436-14        (f)  Injection well permits for wells that are used for
 436-15  enhanced recovery remain in force until canceled by the railroad
 436-16  commission.
 436-17        (g)  No person may continue utilizing or begin utilizing
 436-18  industrial or municipal waste as an injection fluid for enhanced
 436-19  recovery purposes without first obtaining a permit from the
 436-20  commission.  (Sec. 27.0511, Water Code.)
 436-21        Sec. 13.053.  Copies of Permit; Filing Requirements.
 436-22  (a)  The commission shall furnish the railroad commission and the
 436-23  Texas Department of Health with a copy of each permit the
 436-24  commission issues.  The railroad commission shall furnish the
 436-25  commission with a copy of each permit the railroad commission
 436-26  issues and the executive director shall in turn forward copies to
 436-27  the Texas Department of Health.
  437-1        (b)  Before beginning injection operations, a person
  437-2  receiving a permit to inject industrial and municipal waste shall
  437-3  file a copy of the permit with the health authorities of the
  437-4  county, city, and town where the well is located.  (Sec. 27.052,
  437-5  Water Code.)
  437-6        Sec. 13.054.  Record of Strata.  The commission or railroad
  437-7  commission may require a person receiving a permit or authorization
  437-8  by rule under this chapter to keep and furnish a complete and
  437-9  accurate record of the depth, thickness, and character of the
 437-10  different strata penetrated in drilling the injection well.
 437-11  (Sec. 27.053, Water Code.)
 437-12        Sec. 13.055.  Electric or Drilling Log.  If an existing well
 437-13  is to be converted to an injection well, the commission or railroad
 437-14  commission may require the applicant to furnish an electric log or
 437-15  a drilling log of the existing well.  (Sec. 27.054, Water Code.)
 437-16        Sec. 13.056.  Casing Requirements.  The casing shall be set
 437-17  at the depth, with the materials, and in the manner required by the
 437-18  commission or railroad commission.  (Sec. 27.055, Water Code.)
 437-19        Sec. 13.057.  Factors in Setting Casing Depth.  Before
 437-20  setting the depth to which casing shall be installed, the
 437-21  commission or railroad commission shall consider:
 437-22              (1)  known geological and hydrological conditions and
 437-23  relationships;
 437-24              (2)  foreseeable future economic development in the
 437-25  area; and
 437-26              (3)  foreseeable future demand for the use of fresh
 437-27  water in the locality.  (Sec. 27.056, Water Code.)
  438-1        Sec. 13.058.  Financial Responsibility.  (a)  A person to
  438-2  whom an injection well permit is issued may be required by the
  438-3  commission or railroad commission to maintain a performance bond or
  438-4  other form of financial security to ensure that an abandoned well
  438-5  is properly plugged.
  438-6        (b)  Each state agency is authorized to receive funds as the
  438-7  beneficiary of a financial responsibility mechanism established
  438-8  under this section for the proper plugging of an injection well.
  438-9  Each state agency is authorized to expend such funds from a
 438-10  financial responsibility mechanism for the plugging of wells
 438-11  covered by that mechanism.
 438-12        (c)  If liability insurance is required of an applicant, the
 438-13  applicant may not use a claims made policy as security unless:
 438-14              (1)  the policy provides for a right of extension by
 438-15  the insured upon cancellation or nonrenewal of the policy by the
 438-16  insurance company;
 438-17              (2)  the applicant places in escrow as provided by the
 438-18  commission an amount sufficient to enable the commission to
 438-19  exercise the right under the policy to purchase an extension of the
 438-20  policy from the date of cancellation or expiration of the policy
 438-21  that is reasonable in light of the degree and duration of the
 438-22  risks; and
 438-23              (3)  the applicant provides the commission with a
 438-24  limited power of attorney by which the commission is given an
 438-25  irrevocable power to exercise the applicant's right under the
 438-26  policy to purchase such an extension of the policy.
 438-27        (d)  In addition to other forms of financial security
  439-1  authorized by the rules of the commission, the commission may
  439-2  authorize an applicant to use the letter of credit form of
  439-3  financial security if either the issuing institution or another
  439-4  institution which guarantees payment under the letter:
  439-5              (1)  is a bank chartered by the state or by the federal
  439-6  government;
  439-7              (2)  is federally insured and its financial practices
  439-8  are regulated by the state or federal government; and
  439-9              (3)  is solvent and is not in receivership or owned or
 439-10  controlled by an entity that is insolvent or in receivership.
 439-11  (Sec. 27.073, Water Code.)
 439-12            (Sections 13.058-13.100 reserved for expansion)
 439-13              SUBCHAPTER D.  CIVIL AND CRIMINAL REMEDIES
 439-14        Sec. 13.101.  Civil Penalty.  (a)  A person who violates any
 439-15  provision of this chapter, any rule of the commission or the
 439-16  railroad commission made under this chapter, or any term,
 439-17  condition, or provision of a permit issued under this chapter shall
 439-18  be subject to a civil penalty in any sum not exceeding $5,000 for
 439-19  each day of noncompliance and for each act of noncompliance.
 439-20        (b)  The action may be brought by the executive director or
 439-21  the railroad commission in any court of competent jurisdiction in
 439-22  the county where the offending activity is occurring or where the
 439-23  defendant resides.  (Sec. 27.101, Water Code.)
 439-24        Sec. 13.102.  Administrative Penalty.  (a)  If a person
 439-25  violates the provisions of this chapter or a rule, order, license,
 439-26  permit, or certificate issued under this chapter, the person may be
 439-27  assessed a civil penalty by the railroad commission.
  440-1        (b)  The penalty may not exceed $10,000 a day for each
  440-2  violation.  Each day a violation continues may be considered a
  440-3  separate violation for purposes of penalty assessments.
  440-4        (c)  In determining the amount of the penalty, the railroad
  440-5  commission shall consider the permittee's history of previous
  440-6  violations of this chapter, the seriousness of the violation, any
  440-7  hazard to the health or safety of the public, and the demonstrated
  440-8  good faith of the permittee or person charged.  (Sec. 27.1011,
  440-9  Water Code.)
 440-10        Sec. 13.103.  Penalty Assessment Procedure.  (a)  A civil
 440-11  penalty may be assessed only after the person charged with a
 440-12  violation described under Section 13.102 has been given an
 440-13  opportunity for a public hearing.
 440-14        (b)  If a public hearing has been held, the railroad
 440-15  commission shall make findings of fact, and it shall issue a
 440-16  written decision as to the occurrence of the violation and the
 440-17  amount of the penalty that is warranted, incorporating, when
 440-18  appropriate, an order requiring that the penalty be paid.
 440-19        (c)  If appropriate, the railroad commission shall
 440-20  consolidate the hearings with other proceedings under this chapter.
 440-21        (d)  If the person charged with the violation fails to avail
 440-22  himself of the opportunity for a public hearing, a civil penalty
 440-23  may be assessed by the railroad commission after it has determined
 440-24  that a violation did occur and the amount of the penalty that is
 440-25  warranted.
 440-26        (e)  The railroad commission shall then issue an order
 440-27  requiring that the penalty be paid.  (Sec. 27.1012, Water Code.)
  441-1        Sec. 13.104.  Payment of Penalty; Refund.  (a)  On the
  441-2  issuance of an order finding that a violation has occurred, the
  441-3  railroad commission shall inform the permittee and any other person
  441-4  charged within 30 days of the amount of the penalty.
  441-5        (b)  Within the 30-day period immediately following the day
  441-6  on which the decision or order is final as provided in Section
  441-7  16(c), Administrative Procedure and Texas Register Act (Article
  441-8  6252-13a, Vernon's Texas Civil Statutes), the person charged with
  441-9  the penalty shall:
 441-10              (1)  pay the penalty in full; or
 441-11              (2)  if the person seeks judicial review of either the
 441-12  amount of the penalty or the fact of the violation, or both:
 441-13                    (A)  forward the amount to the railroad
 441-14  commission for placement in an escrow account; or
 441-15                    (B)  in lieu of payment into escrow, post with
 441-16  the railroad commission a supersedeas bond in a form approved by
 441-17  the railroad commission for the amount of the penalty, such bond to
 441-18  be effective until all judicial review of the order or decision is
 441-19  final.
 441-20        (c)  If through judicial review of the decision or order it
 441-21  is determined that no violation occurred or that the amount of the
 441-22  penalty should be reduced or not assessed, the railroad commission
 441-23  shall, within the 30-day period immediately following that
 441-24  determination, if the penalty has been paid to the railroad
 441-25  commission, remit the appropriate amount to the person, with
 441-26  accrued interest, or where a supersedeas bond has been posted, the
 441-27  railroad commission shall execute a release of such bond.
  442-1        (d)  Failure to forward the money to the railroad commission
  442-2  within the time provided by Subsection (b) results in a waiver of
  442-3  all legal rights to contest the violation or the amount of the
  442-4  penalty.
  442-5        (e)  Judicial review of the order or decision of the railroad
  442-6  commission assessing the penalty shall be under the substantial
  442-7  evidence rule and shall be instituted by filing a petition with the
  442-8  district court of Travis County, Texas, and not elsewhere, as
  442-9  provided for in Section 19, Administrative Procedure and Texas
 442-10  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
 442-11  (Sec. 27.1013, Water Code.)
 442-12        Sec. 13.105.  Recovery of Penalty.  Civil penalties owed
 442-13  under Sections 13.102-13.104 of this code may be recovered in a
 442-14  civil action brought by the attorney general at the request of the
 442-15  railroad commission.  (Sec. 27.1014, Water Code.)
 442-16        Sec. 13.106.  Administrative Penalty.  (a)  If a person
 442-17  violates the provisions of this chapter under the jurisdiction of
 442-18  the commission, a rule adopted by the commission, or an order
 442-19  adopted or permit issued by the commission under this chapter, the
 442-20  commission may assess a civil penalty against that person as
 442-21  provided by this section.
 442-22        (b)  The penalty may be in an amount not to exceed $10,000 a
 442-23  day for a person who violates this chapter or a rule, order, or
 442-24  permit.  Each day a violation continues may be considered a
 442-25  separate violation for purposes of penalty assessment.
 442-26        (c)  In determining the amount of the penalty, the commission
 442-27  shall consider:
  443-1              (1)  the nature, circumstances, extent, duration, and
  443-2  gravity of the prohibited acts with special emphasis on the hazard
  443-3  or potential hazard created to the health or safety of the public;
  443-4              (2)  the impact of the violation on a receiving stream
  443-5  or underground water reservoir, on the property owners along a
  443-6  receiving stream or underground water reservoir, and on water users
  443-7  of a receiving stream or underground water reservoir;
  443-8              (3)  with respect to the alleged violator:
  443-9                    (A)  the history and extent of previous
 443-10  violations;
 443-11                    (B)  the degree of culpability, including whether
 443-12  the violation was attributable to mechanical or electrical failures
 443-13  and whether the violation could have been reasonably anticipated
 443-14  and avoided;
 443-15                    (C)  the demonstrated good faith, including
 443-16  actions taken by the alleged violator to rectify the cause of the
 443-17  violation;
 443-18                    (D)  any economic benefit gained through the
 443-19  violation; and
 443-20                    (E)  the amount necessary to deter future
 443-21  violations; and
 443-22              (4)  any other matters that justice may require.
 443-23        (d)  If, after examination of a possible violation and the
 443-24  facts surrounding that possible violation, the executive director
 443-25  concludes that a violation has occurred, the executive director may
 443-26  issue a preliminary report stating the facts on which he based that
 443-27  conclusion, recommending that a civil penalty under this section be
  444-1  imposed on the person charged, and recommending the amount of that
  444-2  proposed penalty.  The executive director shall base the
  444-3  recommended amount of the proposed penalty on the factors provided
  444-4  by Subsection (c), and the executive director shall analyze each
  444-5  factor for the benefit of the commission.
  444-6        (e)  Not later than the 10th day after the date on which the
  444-7  report is issued, the executive director shall give written notice
  444-8  of the report to the person charged with the violation.  The notice
  444-9  shall include a brief summary of the charges, a statement of the
 444-10  amount of the penalty recommended, and a statement of the right of
 444-11  the person charged to a hearing on the occurrence of the violation
 444-12  or the amount of the penalty or both the occurrence of the
 444-13  violation and the amount of the penalty.
 444-14        (f)  Not later than the 20th day after the date on which
 444-15  notice is received, the person charged either may give to the
 444-16  commission written consent to the executive director's report,
 444-17  including the recommended penalty, or may make a written request
 444-18  for a hearing.
 444-19        (g)  If the person charged with the violation consents to the
 444-20  penalty recommended by the executive director or fails to timely
 444-21  respond to the notice, the commission by order shall either assess
 444-22  that penalty or order a hearing to be held on the findings and
 444-23  recommendations in the executive director's report.   If the
 444-24  commission assesses the penalty recommended by the report, the
 444-25  commission shall give written notice to the person charged of its
 444-26  decision.
 444-27        (h)  If the person charged requests, or the commission
  445-1  orders, a hearing, the commission shall call a hearing and give
  445-2  notice of the hearing.  As a result of the hearing, the commission
  445-3  by order either may find that a violation has occurred and may
  445-4  assess a civil penalty, may find that a violation has occurred but
  445-5  that no penalty should be assessed, or may find that no violation
  445-6  has occurred.  All proceedings under this subsection are subject to
  445-7  the Administrative Procedure and Texas Register Act (Article
  445-8  6252-13a, Vernon's Texas Civil Statutes).  In making any penalty
  445-9  decision, the commission shall analyze each of the factors provided
 445-10  by Subsection (c).
 445-11        (i)  The commission shall give notice of its decision to the
 445-12  person charged, and if the commission finds that a violation has
 445-13  occurred and has assessed a civil penalty, the commission shall
 445-14  give written notice to the person charged of its findings, of the
 445-15  amount of the penalty, and of his right to judicial review of the
 445-16  commission's order.  If the commission is required to give notice
 445-17  of a civil penalty under this subsection or Subsection (g), the
 445-18  commission shall file notice of its decision in the Texas Register
 445-19  not later than the 10th day after the date on which the decision is
 445-20  adopted.
 445-21        (j)  Within the 30-day period immediately following the day
 445-22  on which the commission's order is final, as provided by Section
 445-23  16(c), Administrative Procedure and Texas Register Act (Article
 445-24  6252-13a, Vernon's Texas Civil Statutes), the person charged with
 445-25  the penalty shall:
 445-26              (1)  pay the penalty in full; or
 445-27              (2)  if the person seeks judicial review of either the
  446-1  fact of the violation or the amount of the penalty or of both the
  446-2  fact of the violation and the amount of the penalty:
  446-3                    (A)  forward the amount of the penalty to the
  446-4  commission for placement in an escrow account; or
  446-5                    (B)  instead of payment into an escrow account,
  446-6  post with the commission a supersedeas bond in a form approved by
  446-7  the commission for the amount of the penalty to be effective until
  446-8  all judicial review of the order or decision is final.
  446-9        (k)  Failure to forward the money to or to post the bond with
 446-10  the commission within the time provided by Subsection (j) results
 446-11  in a waiver of all legal rights to judicial review.  Also, if the
 446-12  person charged fails to forward the money or post the bond as
 446-13  provided by Subsection (j), the commission or the executive
 446-14  director may forward the matter to the attorney general for
 446-15  enforcement.
 446-16        (l)  Judicial review of the order or decision of the
 446-17  commission assessing the penalty shall be under the substantial
 446-18  evidence rule and shall be instituted by filing a petition with a
 446-19  district court in Travis County, as provided by Section 19,
 446-20  Administrative Procedure and Texas Register Act (Article 6252-13a,
 446-21  Vernon's Texas Civil Statutes).
 446-22        (m)  A penalty collected under this section shall be
 446-23  deposited in the state treasury to the credit of the general
 446-24  revenue fund.
 446-25        (n)  Notwithstanding any other provision to the contrary, the
 446-26  commission may compromise, modify, or remit, with or without
 446-27  condition, any civil penalty imposed under this section.
  447-1        (o)  Payment of an administrative penalty under this section
  447-2  shall be full and complete satisfaction of the violation for which
  447-3  the administrative penalty is assessed and shall preclude any other
  447-4  civil or criminal penalty for the same violation.  (Sec. 27.1015,
  447-5  Water Code.)
  447-6        Sec. 13.107.  Injunction, Etc.  The executive director or the
  447-7  railroad commission may enforce this chapter, any valid rule made
  447-8  under this chapter, or any term, condition, or provision of a
  447-9  permit issued by the commission or railroad commission under this
 447-10  chapter by injunction or other appropriate remedy.  The suit shall
 447-11  be brought in a court of competent jurisdiction in the county where
 447-12  the offending activity is occurring.  (Sec. 27.102, Water Code.)
 447-13        Sec. 13.108.  Procedure.  (a)  At the request of the
 447-14  executive director or the railroad commission, the attorney general
 447-15  shall institute and conduct a suit in the name of the State of
 447-16  Texas for injunctive relief or to recover the civil penalty, or for
 447-17  both the injunctive relief and civil penalty, authorized in
 447-18  Sections 13.101 and 13.107.
 447-19        (b)  Any party to a suit may appeal from a final judgment as
 447-20  in other civil cases.  (Sec. 27.103, Water Code.)
 447-21        Sec. 13.109.  Effect of Permit on Civil Liability.  The fact
 447-22  that a person has a permit issued under this chapter does not
 447-23  relieve him from any civil liability.  (Sec. 27.104, Water Code.)
 447-24        Sec. 13.110.  Criminal Fines.  (a)  A person who knowingly or
 447-25  intentionally violates this chapter, a rule of the commission or
 447-26  railroad commission, or a term, condition, or provision of a permit
 447-27  issued under this chapter is subject to a fine of not more than
  448-1  $5,000 for each violation and for each day of violation.
  448-2        (b)  Venue for prosecution of an alleged violation is in the
  448-3  county in which the violation is alleged to have occurred or where
  448-4  the defendant resides.  (Sec. 27.105, Water Code.)
  448-5         CHAPTER 14.  WATER WELLS AND DRILLED OR MINED SHAFTS
  448-6                   SUBCHAPTER A.  GENERAL PROVISIONS
  448-7        Sec. 14.001.  Groundwater Quality.  The executive director
  448-8  shall have investigated all matters concerning the quality of
  448-9  groundwater in the state.  (Sec. 26.128, Water Code.)
 448-10        Sec. 14.002.  Definitions.  In this chapter:
 448-11              (1)  "Shaft" means any vertically oriented excavation,
 448-12  whether constructed by drilling or mining techniques, where the
 448-13  depth of the excavation is greater than its diameter, the
 448-14  excavation penetrates into or through the base of the uppermost
 448-15  water-bearing strata, and the primary purpose of the excavation is
 448-16  the transport of workers and materials to and from a destination,
 448-17  at depth, for purposes of geological studies, access to existing
 448-18  and planned subsurface mine workings, or for ventilation of those
 448-19  workings.
 448-20              (2)  "Water" or "water in the state" means groundwater,
 448-21  percolating or otherwise, lakes, bays, ponds, impounding
 448-22  reservoirs, springs, rivers, streams, creeks, estuaries, marshes,
 448-23  inlets, canals, the Gulf of Mexico inside the territorial limits of
 448-24  the state, and all other bodies of natural and artificial surface
 448-25  water that is inland or coastal, fresh or salt, and navigable or
 448-26  nonnavigable, and includes the beds and banks of all watercourses
 448-27  and bodies of surface water, that are wholly or partially inside or
  449-1  bordering the state or inside the jurisdiction of the state.
  449-2              (3)  "Surface facilities" means the on-site
  449-3  above-ground appurtenances, structures, equipment, and other
  449-4  fixtures that are or will be used for storage or processing or in
  449-5  conjunction with the shaft operation.  (Sec. 28.001, Water Code.)
  449-6            (Sections 14.003-14.010 reserved for expansion)
  449-7                      SUBCHAPTER B.  WATER WELLS
  449-8        Sec. 14.011.  Underground Water:  Regulations.  The
  449-9  commission shall make and enforce rules and regulations for
 449-10  conserving, protecting, preserving, and distributing underground,
 449-11  subterranean, and percolating water located in this state and shall
 449-12  do all other things necessary for these purposes.  (Sec. 28.011,
 449-13  Water Code.)
 449-14        Sec. 14.012.  Certain Wells to be Plugged or Cased.  The
 449-15  owner of a water well which encounters salt water or water
 449-16  containing mineral or other substances injurious to vegetation or
 449-17  agriculture shall securely plug or case the well in a manner that
 449-18  will effectively prevent the water from escaping from the stratum
 449-19  in which it is found into another water-bearing stratum or onto the
 449-20  surface of the ground.  (Sec. 28.012, Water Code.)
 449-21        Sec. 14.013.  Penalty.  If the owner of a well that is
 449-22  required to be cased or plugged by this chapter fails or refuses to
 449-23  case or plug the well within the 30-day period following the date
 449-24  of the commission's order to do so or if a person fails to comply
 449-25  with any other order issued by the commission under this chapter
 449-26  within the 30-day period following the date of the order, he is
 449-27  guilty of a misdemeanor and upon conviction is punishable by a fine
  450-1  of not less than $10 nor more than $500.  He commits a separate
  450-2  offense each day the failure or refusal continues after the 30-day
  450-3  period.  (Sec. 28.013, Water Code.)
  450-4            (Sections 14.014-14.020 reserved for expansion)
  450-5                SUBCHAPTER C.  DRILLED OR MINED SHAFTS
  450-6        Sec. 14.021.  Financial Responsibility.  (a)  The commission
  450-7  may require in a shaft permit that the permittee reimburse the
  450-8  commission for reasonable costs of monitoring and on-site,
  450-9  full-time surveillance to determine compliance with a rule, permit,
 450-10  or other order of the commission.
 450-11        (b)  A person to whom a shaft permit is issued may be
 450-12  required by the commission to maintain a performance bond or other
 450-13  form of financial security to ensure payment of costs that may
 450-14  become due in accord with Subsection (a) or to ensure that an
 450-15  abandoned shaft is safely and properly sealed and plugged.
 450-16  (Sec. 28.053, Water Code.)
 450-17        Sec. 14.022.  Permit From Commission.  No person desiring to
 450-18  drill, excavate, or otherwise construct a shaft as defined in this
 450-19  chapter may commence construction without first obtaining a permit
 450-20  for such work from the commission.  (Sec. 28.021, Water Code.)
 450-21        Sec. 14.023.  Application for Permit.  The commission shall
 450-22  prescribe forms for application for a permit and shall make the
 450-23  forms available on request without charge.  (Sec. 28.022, Water
 450-24  Code.)
 450-25        Sec. 14.024.  Information Required of Applicant.  An
 450-26  applicant shall furnish any information the commission considers
 450-27  necessary to discharge its duties under this chapter and the rules
  451-1  of the commission.  (Sec. 28.023, Water Code.)
  451-2        Sec. 14.025.  Application Fee.  With each application for a
  451-3  shaft permit, the commission shall collect a fee as set by the
  451-4  executive director to reasonably offset the costs to the commission
  451-5  for processing the application.  The fee may not be less than
  451-6  $10,000.  (Sec. 28.024, Water Code.)
  451-7        Sec. 14.026.  Letter From Railroad Commission.  A person
  451-8  making application to the commission for a shaft permit shall
  451-9  submit with the application a letter from the railroad commission
 451-10  stating that such shaft construction will not endanger or injure
 451-11  any oil or gas formation or significantly limit the potential for
 451-12  future recovery of or exploration for oil or gas.  (Sec. 28.025,
 451-13  Water Code.)
 451-14        Sec. 14.027.  Inspection of Shaft Location.  On receiving an
 451-15  application for a permit, the executive director shall have an
 451-16  inspection made of the location of the proposed shaft to determine
 451-17  the local conditions and probable effect of the shaft on water in
 451-18  the state and shall determine the requirements for setting of
 451-19  casing, liners, and seals as provided in Sections 14.031, 14.037,
 451-20  and 14.038.  (Sec. 28.026, Water Code.)
 451-21        Sec. 14.028.  Recommendations From Other Agencies.  The
 451-22  executive director shall submit to such state agencies and other
 451-23  persons that the commission may designate copies of every
 451-24  application received in proper form.  These agencies, persons, and
 451-25  divisions may make recommendations to the commission concerning any
 451-26  aspect of the application and shall have reasonable time to do so
 451-27  as the commission may prescribe.  (Sec. 28.027, Water Code.)
  452-1        Sec. 14.029.  Hearing on Permit Application.  (a)  The
  452-2  commission shall hold an adjudicatory hearing on the application.
  452-3        (b)  The commission by rule shall provide for giving notice
  452-4  of a public hearing on a permit application.  The rules for notice
  452-5  shall include provisions for giving notice to local governments and
  452-6  interested persons.
  452-7        (c)  The hearing required in Subsection (a) shall be
  452-8  conducted in accordance with rules for contested cases under the
  452-9  Administrative Procedure and Texas Register Act, as amended
 452-10  (Article 6252-13a, Vernon's Texas Civil Statutes).  Any person,
 452-11  corporation, partnership, association, local government, government
 452-12  agency, or other entity shall be allowed to participate in a
 452-13  hearing as a party under this section upon a showing of sufficient
 452-14  interest or of an ability to contribute to the resolution of
 452-15  relevant issues.  (Sec. 28.028, Water Code.)
 452-16        Sec. 14.030.  Delegation of Hearing Powers.  (a)  The
 452-17  commission may authorize the chief hearing examiner to call and
 452-18  hold hearings on any subject on which the commission may hold a
 452-19  hearing.
 452-20        (b)  The commission may also authorize the chief hearing
 452-21  examiner to delegate to one or more hearing examiners the authority
 452-22  to hold any hearing called by him.
 452-23        (c)  At any hearing called by the chief hearing examiner, he
 452-24  or the person delegated the authority by him to hold the hearing is
 452-25  empowered to administer oaths and receive evidence.
 452-26        (d)  The individual or individuals holding a hearing under
 452-27  the authority of this section shall report the hearing in the
  453-1  manner prescribed by the commission.  (Sec. 28.029, Water Code.)
  453-2        Sec. 14.031.  Rules, Etc.  (a)  The commission shall adopt
  453-3  rules reasonably required for the performance of the powers,
  453-4  duties, and functions of the commission under this chapter.
  453-5        (b)  No shaft permit shall be issued by the commission
  453-6  pursuant to this chapter nor shall a permit hearing be held on a
  453-7  shaft application until the commission has adopted rules for the
  453-8  issuance of such shaft permit.
  453-9        (c)  The commission may refuse to accept a shaft permit
 453-10  application or hold a shaft permit application hearing if the
 453-11  planned siting of the shaft is the subject of litigation.
 453-12  (Sec. 28.030, Water Code.)
 453-13        Sec. 14.032.  Issuance of Permit.  (a)  The commission may
 453-14  grant an application in whole or part and may issue the shaft
 453-15  permit if it finds:
 453-16              (1)  that the use or installation of the shaft is in
 453-17  the public interest and that after consideration of all siting
 453-18  alternatives there is a public need for construction of the shaft
 453-19  at the location for which the application is made;
 453-20              (2)  that no existing rights, including but not limited
 453-21  to mineral rights and water rights, will be impaired;
 453-22              (3)  that, with proper safeguards, both ground and
 453-23  surface water can be adequately protected from pollution; and
 453-24              (4)  that the applicant has made a satisfactory showing
 453-25  of financial responsibility if required by Section 14.021(b).
 453-26        (b)  In the permit the commission shall impose terms and
 453-27  conditions reasonably necessary to protect all water from
  454-1  pollution, including the necessary casing, liners, seals and
  454-2  surface facilities.
  454-3        (c)  In the permit the commission shall impose terms and
  454-4  conditions for final closure of surface facilities and plugging and
  454-5  sealing of the shaft reasonably necessary to protect all water
  454-6  penetrated from pollution.  (Sec. 28.031, Water Code.)
  454-7        Sec. 14.033.  Copies of Permit; Filing Requirements.
  454-8  (a)  The commission shall furnish the railroad commission with a
  454-9  copy of each shaft permit the commission issues.
 454-10        (b)  Before beginning shaft construction, a person receiving
 454-11  a shaft permit shall file a copy of the permit with the
 454-12  commissioners court of the county in which the shaft is to be
 454-13  located.  (Sec. 28.032, Water Code.)
 454-14        Sec. 14.034.  Record of Strata.  (a)  The commission shall
 454-15  require a person applying for a shaft permit to drill or have
 454-16  drilled a test hole on center or offset to the shaft and provide
 454-17  the following to the commission and the railroad commission in the
 454-18  application:
 454-19              (1)  a description of the lithology into or through the
 454-20  lower confining strata;
 454-21              (2)  results of rock testing;
 454-22              (3)  geophysical logs; and
 454-23              (4)  other information that may be required by the
 454-24  commission.
 454-25        (b)  The commission shall require a person receiving a shaft
 454-26  permit to keep and furnish to the commission and the railroad
 454-27  commission a complete and accurate record of the depth, thickness,
  455-1  and character of the different strata or rock units penetrated in
  455-2  constructing the shaft.  (Sec. 28.033, Water Code.)
  455-3        Sec. 14.035.  Geophysical and Drilling Log.  If the shaft is
  455-4  to be constructed over, around, or within 2,000 feet of an existing
  455-5  drilled borehole or boreholes, the commission shall require the
  455-6  applicant for a shaft permit to furnish such geophysical logs as
  455-7  may be required by the commission, including electric logs, and the
  455-8  drilling log and well completion record of all existing boreholes
  455-9  to the commission, along with a complete and accurate core data
 455-10  record of the depth, thickness, and character of the different
 455-11  strata or rock units penetrated as a part of the shaft application.
 455-12  (Sec. 28.034, Water Code.)
 455-13        Sec. 14.036.  Seismic Reflection Survey.  The commission
 455-14  shall require as a part of any shaft application a seismic
 455-15  reflection survey and velocity control data conforming, at minimum,
 455-16  to specifications established by the commission in the rules
 455-17  provided for in Section 14.031(a).  (Sec. 28.035, Water Code.)
 455-18        Sec. 14.037.  Casing, Liner, and Seal Requirements.  (a)  The
 455-19  casing and each liner and seal shall be set at the depth, with the
 455-20  materials, and in the manner required by the commission.
 455-21        (b)  The permittee shall provide records as required by the
 455-22  executive director to indicate compliance with Subsection (a).
 455-23  (Sec. 28.036, Water Code.)
 455-24        Sec. 14.038.  Factors in Setting Casing, Liner, and Seal
 455-25  Requirements.  Before setting the casing, liner, and seal
 455-26  requirements, the commission shall consider:
 455-27              (1)  known geological and hydrological conditions and
  456-1  relationships;
  456-2              (2)  foreseeable future economic development in the
  456-3  area; and
  456-4              (3)  foreseeable future demand for the use of fresh
  456-5  water in the locality.  (Sec. 28.037, Water Code.)
  456-6        Sec. 14.039.  Environmental Report.  If an environmental
  456-7  report, environmental assessment, or environmental impact statement
  456-8  of any kind that includes an analysis of the environmental impacts
  456-9  of the shaft construction or operation is required by any federal
 456-10  or state agency before approval to construct the shaft, the
 456-11  environmental document, along with evidence of the needed approvals
 456-12  that have been granted, must be submitted to the commission as part
 456-13  of the shaft permit application, and the commission shall make the
 456-14  environmental document available for public review and comment for
 456-15  a period of not less than 30 days before the application for the
 456-16  shaft permit is considered.  (Sec. 28.038, Water Code.)
 456-17            (Sections 14.040-14.050 reserved for expansion)
 456-18                     SUBCHAPTER D.  ARTESIAN WELLS
 456-19        Sec. 14.051.  Artesian Well Defined.  An artesian well is an
 456-20  artificial water well in which the water, when properly cased, will
 456-21  rise by natural pressure above the first impervious stratum below
 456-22  the surface of the ground.  (Sec. 11.201, Water Code.)
 456-23        Sec. 14.052.  Right to Drill Artesian Well.  (a)  Except as
 456-24  provided by this section, a person is entitled to drill an artesian
 456-25  well for domestic purposes or for stock raising without complying
 456-26  with the general provisions of this code regulating the use of
 456-27  water.
  457-1        (b)  The artesian well must be on that person's own land and
  457-2  must be properly and securely cased.
  457-3        (c)  When water is reached containing mineral or other
  457-4  substances injurious to vegetation or agriculture, the artesian
  457-5  well must be securely capped or its flow controlled so as not to
  457-6  injure another person's land or properly plugged so as to prevent
  457-7  the water from rising above the first impervious stratum below the
  457-8  surface of the ground.
  457-9        (d)  Except as provided by Subsection (e), after September 1,
 457-10  1991, and before January 1, 1994, a person may not drill and
 457-11  operate a free-flowing artesian well in a sole or principal source
 457-12  aquifer as designated by 40 C.F.R., Part 149, pursuant to Section
 457-13  1424(e), Safe Drinking Water Act (42 U.S.C. 300h-3(e)) that will
 457-14  result in a flow of more than 5,000 gallons per minute or that is
 457-15  within 1,000 feet of another well if the combined flows would
 457-16  exceed 5,000 gallons per minute.
 457-17        (e)  The commission may grant for a well an exemption from
 457-18  the prohibition provided by Subsection (d) for any beneficial use
 457-19  that does not waste water.  The commission by rule may delegate the
 457-20  authority to grant exemptions under this subsection to a local
 457-21  water district.  (Sec. 11.202, Water Code.)
 457-22        Sec. 14.053.  Artesian Well:  Drilling Record.  (a)  A person
 457-23  who drills an artesian well or has one drilled shall keep a
 457-24  complete and accurate record of the depth, thickness, and character
 457-25  of the different strata penetrated and when the well is completed
 457-26  shall transmit a copy of the record to the commission by registered
 457-27  mail.
  458-1        (b)  A person who violates any provision of this section is
  458-2  guilty of a misdemeanor and on conviction is punishable by a fine
  458-3  of not less than $10 nor more than $100.  (Sec. 11.203, Water
  458-4  Code.)
  458-5        Sec. 14.054.  Report of New Artesian Well.  Within one year
  458-6  after an artesian well is drilled, the owner or operator shall
  458-7  transmit to the commission a sworn report stating the result of the
  458-8  drilling operation, the use to which the water will be applied, and
  458-9  the contemplated extent of the use.  (Sec. 11.204, Water Code.)
 458-10        Sec. 14.055.  Wasting Water From Artesian Well.  (a)  Unless
 458-11  the water from an artesian well is used for a purpose and in a
 458-12  manner in which it may be lawfully used on the owner's land, it is
 458-13  waste to wilfully cause or knowingly permit the water to run off
 458-14  the owner's land or to percolate through the stratum above which
 458-15  the water is found.
 458-16        (b)  A person who commits waste as defined in this section is
 458-17  guilty of a misdemeanor and on conviction is punishable by a fine
 458-18  of not more than $500 or by confinement in the county jail for not
 458-19  more than 90 days or by both.  (Sec. 11.205, Water Code.)
 458-20        Sec. 14.056.  Improperly Cased Well:  Nuisance.  An artesian
 458-21  well that is not tightly cased, capped, and furnished with
 458-22  mechanical appliances that readily and effectively prevent water
 458-23  from flowing out of the well and running over the surface of the
 458-24  ground above the well or wasting through the strata through which
 458-25  it passes is a public nuisance and subject to abatement by the
 458-26  executive director.  (Sec. 11.206, Water Code.)
 458-27        Sec. 14.057.  Annual Report.  (a)  Not later than March 1 of
  459-1  each year, a person who during any part of the preceding calendar
  459-2  year owned or operated an artesian well for any purpose other than
  459-3  domestic use shall file a report to the commission on a form
  459-4  supplied by the commission.
  459-5        (b)  The report shall state:
  459-6              (1)  the quantity of water which was obtained from the
  459-7  well;
  459-8              (2)  the nature of the uses to which the water was
  459-9  applied;
 459-10              (3)  the change in the level of the well's water table;
 459-11  and
 459-12              (4)  other information required by the commission.
 459-13        (c)  If water from the well was used for irrigation, the
 459-14  report shall also state the acreage and yield of each crop
 459-15  irrigated.  (Sec. 11.207, Water Code.)
 459-16        Sec. 14.058.  PROVISIONS NOT APPLICABLE TO THIS SUBCHAPTER.
 459-17  The following do not apply to this subchapter:
 459-18              (1)  Section 14.013;
 459-19              (2)  Section 14.024;
 459-20              (3)  Section 14.031(a); and
 459-21              (4)  Subchapter E.
 459-22            (Sections 14.059-14.060 reserved for expansion)
 459-23                      SUBCHAPTER E.  ENFORCEMENT
 459-24        Sec. 14.061.  Civil Penalty.  (a)  A person who violates any
 459-25  provision of this chapter, any rule of the commission made under
 459-26  this chapter, or any term, condition, or provision of a permit
 459-27  issued under this chapter shall be subject to a civil penalty in a
  460-1  sum not exceeding $10,000 for each day of noncompliance and for
  460-2  each act of noncompliance.
  460-3        (b)  The action may be brought either in the county in which
  460-4  the defendant resides or in the county in which the violation or
  460-5  threat of violation occurs.  (Sec. 28.061, Water Code.)
  460-6        Sec. 14.062.  Injunction, Etc.  (a)  The executive director
  460-7  may enforce this chapter, any valid rule made under this chapter,
  460-8  or any term, condition, or provision of a permit issued by the
  460-9  commission under this chapter by injunction or other appropriate
 460-10  remedy.  The suit shall be brought either in the county in which
 460-11  the defendant resides or in the county in which the violation or
 460-12  threat of violation occurs.
 460-13        (b)  In any suit brought to enjoin a violation or threat of
 460-14  violation of this chapter or any rule, permit, or order of the
 460-15  commission, the court may grant the commission, without bond or
 460-16  other undertaking, any prohibitory or mandatory injunction the
 460-17  facts may warrant, including temporary restraining orders, after
 460-18  notice and hearing, temporary injunctions, and permanent
 460-19  injunctions.  (Sec. 28.062, Water Code.)
 460-20        Sec. 14.063.  Procedure.  (a)  At the request of the
 460-21  executive director, the attorney general shall institute and
 460-22  conduct a suit in the name of the State of Texas for injunctive
 460-23  relief or to recover the civil penalty or for both the injunctive
 460-24  relief and civil penalty authorized in Sections 14.061 and 14.062.
 460-25        (b)  Any party to a suit may appeal from a final judgment as
 460-26  in other civil cases.  (Sec. 28.063, Water Code.)
 460-27        Sec. 14.064.  Effect of Permit on Civil Liability.  The fact
  461-1  that a person has a permit issued under this chapter does not
  461-2  relieve him from any civil liability.  (Sec. 28.064, Water Code.)
  461-3        Sec. 14.065.  Criminal Penalties.  (a)  A person who
  461-4  knowingly or intentionally violates this chapter, a rule of the
  461-5  commission, or a term, condition, or provision of a permit issued
  461-6  under this chapter is subject to a fine of not more than $10,000
  461-7  for each violation and for each day of violation.
  461-8        (b)  Venue for prosecution of an alleged violation is in
  461-9  either the county in which the defendant resides or in which the
 461-10  violation occurs.  (Sec. 28.065, Water Code.)
 461-11        Sec. 14.066.  Enforcement by Local Governments and Others.
 461-12  (a)  If a local government is denied access to property or records
 461-13  as provided in this Act, the local government may bring suit in a
 461-14  district court in the county in which the violation occurs for an
 461-15  appropriate order to obtain access to the property or records or to
 461-16  recover civil penalties or for both an order and the penalties
 461-17  provided by Subsection (b).  Civil penalties recovered in a suit
 461-18  under this subsection shall be paid to the local government.
 461-19        (b)  A permittee who denies access to property or records to
 461-20  a local government as provided by this Act is liable to a civil
 461-21  penalty of not less than $100 and not more than $1,000 for each
 461-22  violation.
 461-23        (c)  A local government or any person may file a written
 461-24  complaint with the commission and request an investigation of an
 461-25  alleged violation by a permittee under this Act.  The commission
 461-26  shall reply to the complaint in writing within 30 days after
 461-27  receipt of the complaint and shall provide a copy of any
  462-1  investigation reports relevant to the complaint together with a
  462-2  determination of whether or not the alleged violation was
  462-3  committed.
  462-4        (d)  If the commission does not have a suit brought in court
  462-5  under this Act within 60 days after the written complaint is filed
  462-6  under Subsection (c), the local government or person may bring suit
  462-7  in the appropriate court in the county in which the alleged
  462-8  violation occurred or is about to occur in the manner provided for
  462-9  suits by the commission under Sections 14.061 and 14.062.
 462-10  Penalties collected in a suit under this subsection shall be paid
 462-11  to the state.  In a suit brought by a local government or person
 462-12  under this subsection, the court shall include in any final
 462-13  judgment in favor of the local government or person an award to
 462-14  cover reasonable court costs and attorney's fees.  (Sec. 28.066,
 462-15  Water Code.)
 462-16        Sec. 14.067.  Administrative Penalty.  (a)  If a person
 462-17  violates this chapter or a rule or order adopted or a permit issued
 462-18  under this chapter, the commission may assess a civil penalty
 462-19  against that person as provided by this section.
 462-20        (b)  The penalty may be in an amount not to exceed $10,000 a
 462-21  day for a person who knowingly violates this chapter or a rule,
 462-22  order, or permit.  For all other violations, the penalty may be in
 462-23  an amount not to exceed $5,000 a day.  Each day a violation
 462-24  continues may be considered a separate violation for purposes of
 462-25  penalty assessment.
 462-26        (c)  In determining the amount of the penalty, the commission
 462-27  shall consider:
  463-1              (1)  the nature, circumstances, extent, duration, and
  463-2  gravity of the prohibited acts with special emphasis on the hazard
  463-3  created to the health or safety of the public;
  463-4              (2)  the impact of the violation on a receiving stream
  463-5  or underground water reservoir, on the property owners along a
  463-6  receiving stream or underground water reservoir, and on water users
  463-7  of a receiving stream or underground water reservoir;
  463-8              (3)  with respect to the alleged violator:
  463-9                    (A)  the history and extent of previous
 463-10  violations;
 463-11                    (B)  the degree of culpability, including whether
 463-12  the violation was attributable to mechanical or electrical failures
 463-13  and whether the violation could have been reasonably anticipated
 463-14  and avoided;
 463-15                    (C)  the demonstrated good faith, including
 463-16  actions taken by the violator to rectify the cause of the
 463-17  violation;
 463-18                    (D)  any economic benefit gained through the
 463-19  violation; and
 463-20                    (E)  the amount necessary to deter future
 463-21  violations; and
 463-22              (4)  any other matters that justice may require.
 463-23        (d)  If, after examination of a possible violation and the
 463-24  facts surrounding that possible violation, the executive director
 463-25  concludes that a violation has occurred, the executive director may
 463-26  issue a preliminary report stating the facts on which he based that
 463-27  conclusion, recommending that a civil penalty under this section be
  464-1  imposed on the person charged, and recommending the amount of that
  464-2  proposed penalty.  The executive director shall base the
  464-3  recommended amount of the proposed penalty on the factors set forth
  464-4  in Subsection (c), and the executive director shall analyze each
  464-5  factor for the benefit of the commission.
  464-6        (e)  Not later than the 10th day after the date on which the
  464-7  report is issued, the executive director shall give written notice
  464-8  of the report to the person charged with the violation.  The notice
  464-9  shall include a brief summary of the charges, a statement of the
 464-10  amount of the penalty recommended, and a statement of the right of
 464-11  the person charged to a hearing on the occurrence of the violation,
 464-12  or the amount of the penalty, or both the occurrence of the
 464-13  violation and the amount of the penalty.
 464-14        (f)  Not later than the 20th day after the date on which
 464-15  notice is received, the person charged either may give to the
 464-16  commission written consent to the executive director's report,
 464-17  including the recommended penalty, or may make a written request
 464-18  for a hearing.
 464-19        (g)  If the person charged with the violation consents to the
 464-20  penalty recommended by the executive director or fails to timely
 464-21  respond to the notice, the commission by order shall either assess
 464-22  that penalty or order a hearing to be held on the findings and
 464-23  recommendations in the executive director's report.   If the
 464-24  commission assesses the penalty recommended by the report, the
 464-25  commission shall give written notice to the person charged of its
 464-26  decision.
 464-27        (h)  If the person charged requests, or the commission
  465-1  orders, a hearing, the commission shall call a hearing and give
  465-2  notice of the hearing.  As a result of the hearing, the commission
  465-3  by order either may find that no violation has occurred, that a
  465-4  violation has occurred but no penalty should be assessed, or that a
  465-5  violation has occurred and a penalty should be assessed.  All
  465-6  proceedings under this subsection are subject to the Administrative
  465-7  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  465-8  Civil Statutes).  In making any penalty decision, the commission
  465-9  shall analyze each of the factors set forth in Subsection (c).
 465-10        (i)  The commission shall give notice of its decision to the
 465-11  person charged, and if the commission finds that a violation has
 465-12  occurred and has assessed a civil penalty, the commission shall
 465-13  give written notice to the person charged of its findings, of the
 465-14  amount of the penalty, and of his right to judicial review of the
 465-15  commission's order.  If the commission is required to give notice
 465-16  of a civil penalty under this subsection or Subsection (g), the
 465-17  commission shall file notice of its decision in the Texas Register
 465-18  not later than the 10th day after the date on which the decision is
 465-19  adopted.
 465-20        (j)  Within the 30-day period immediately following the day
 465-21  on which the commission's order is final, as provided by Section
 465-22  16(c), Administrative Procedure and Texas Register Act (Article
 465-23  6252-13a, Vernon's Texas Civil Statutes), the person charged with
 465-24  the penalty shall:
 465-25              (1)  pay the penalty in full; or
 465-26              (2)  if the person seeks judicial review of either the
 465-27  fact of the violation or the amount of the penalty or of both the
  466-1  fact of the violation and the amount of the penalty:
  466-2                    (A)  forward the amount of the penalty to the
  466-3  commission for placement in an escrow account; or
  466-4                    (B)  instead of payment into an escrow account,
  466-5  post with the commission a supersedeas bond in a form approved by
  466-6  the commission for the amount of the penalty to be effective until
  466-7  all judicial review of the order or decision is final.
  466-8        (k)  Failure to forward the money to or to post the bond with
  466-9  the commission within the time provided by Subsection (j) results
 466-10  in a waiver of all legal rights to judicial review.  Also, if the
 466-11  person charged fails to forward the money or post the bond as
 466-12  provided by Subsection (j), the commission or the executive
 466-13  director may forward the matter to the attorney general for
 466-14  enforcement.
 466-15        (l)  Judicial review of the order or decision of the
 466-16  commission assessing the penalty shall be under the substantial
 466-17  evidence rule and shall be instituted by filing a petition with a
 466-18  district court in Travis County, as provided by Section 19,
 466-19  Administrative Procedure and Texas Register Act (Article 6252-13a,
 466-20  Vernon's Texas Civil Statutes).
 466-21        (m)  A penalty collected under this section shall be
 466-22  deposited in the state treasury to the credit of the general
 466-23  revenue fund.
 466-24        (n)  Notwithstanding anything to the contrary, the commission
 466-25  may compromise, modify, or remit, with or without condition, any
 466-26  civil penalty imposed under this section.
 466-27        (o)  Payment of an administrative penalty under this section
  467-1  shall be full and complete satisfaction of the violations for which
  467-2  the administrative penalty is assessed and shall preclude any other
  467-3  civil or criminal penalty for the same violation.  (Sec. 28.067,
  467-4  Water Code.)
  467-5             CHAPTER 15.  ON-SITE SEWAGE DISPOSAL SYSTEMS
  467-6                   SUBCHAPTER A.  GENERAL PROVISIONS
  467-7        Sec. 15.001.  Policy and Purpose.  It is the public policy of
  467-8  this state and the purpose of this chapter to:
  467-9              (1)  eliminate and prevent health hazards by regulating
 467-10  and properly planning the location, design, construction,
 467-11  installation, operation, and maintenance of on-site sewage disposal
 467-12  systems;
 467-13              (2)  authorize the commission or authorized agent to
 467-14  impose and collect a permit fee for:
 467-15                    (A)  construction, installation, alteration,
 467-16  repair, or extension of on-site sewage disposal systems; and
 467-17                    (B)  tests, designs, and inspections of those
 467-18  systems;
 467-19              (3)  authorize the commission or authorized agent to
 467-20  impose a penalty for a violation of this chapter or a rule adopted
 467-21  under this chapter;
 467-22              (4)  require an on-site sewage disposal system
 467-23  installer to register with the commission; and
 467-24              (5)  allow the individual owner of a disposal system to
 467-25  install and repair the system in accordance with this chapter.
 467-26  (Sec. 366.001, Health and Safety Code.)
 467-27        Sec. 15.002.  Definitions.  In this chapter:
  468-1              (1)  "Authorized agent" means a political subdivision
  468-2  authorized by the commission to implement and enforce rules under
  468-3  this chapter.
  468-4              (2)  "Designated representative" means a person who is
  468-5  designated by the commission or an authorized agent to make
  468-6  percolation tests, system designs, and inspections subject to the
  468-7  department's or authorized agent's approval.
  468-8              (3)  "Installer" means a person who is compensated by
  468-9  another to construct, install, alter, or repair an on-site sewage
 468-10  disposal system.
 468-11              (4)  "Political subdivision" means a municipality,
 468-12  county, river authority, or special district, including an
 468-13  underground water district and a soil and water conservation
 468-14  district.
 468-15              (5)  "Nuisance" means:
 468-16                    (A)  sewage, human excreta, or other organic
 468-17  waste discharged or exposed in a manner that makes it a potential
 468-18  instrument or medium in the transmission of disease to or between
 468-19  persons; or
 468-20                    (B)  an overflowing septic tank or similar
 468-21  device, including surface discharge from or groundwater
 468-22  contamination by a component of an on-site sewage disposal system,
 468-23  or a blatant discharge from an on-site sewage disposal system.
 468-24              (6)  "On-site sewage disposal system" means one or more
 468-25  systems of treatment devices and disposal facilities that are not
 468-26  regulated by the commission and that:
 468-27                    (A)  produce not more than 5,000 gallons of waste
  469-1  each day; and
  469-2                    (B)  are used only for disposal of sewage
  469-3  produced on the site where the system is located.
  469-4              (7)  "Owner" means a person who owns a building or
  469-5  other property served by an on-site sewage disposal system.
  469-6              (8)  "Sewage" means waste that:
  469-7                    (A)  is primarily organic and biodegradable or
  469-8  decomposable; and
  469-9                    (B)  generally originates as human, animal, or
 469-10  plant waste from certain activities, including the use of toilet
 469-11  facilities, washing, bathing, and preparing food.  (Sec. 366.002,
 469-12  Health and Safety Code.)
 469-13        Sec. 15.003.  Immunity.  The commission, an authorized agent,
 469-14  or a designated representative is not liable for damages resulting
 469-15  from the commission's or authorized agent's approval of the
 469-16  installation and operation of an on-site sewage disposal system.
 469-17  (Sec. 366.003, Health and Safety Code.)
 469-18        Sec. 15.004.  Compliance Required.  A person may not
 469-19  construct, alter, repair, or extend, or cause to be constructed,
 469-20  altered, repaired, or extended, an on-site sewage disposal system
 469-21  that does not comply with this chapter and applicable rules.
 469-22  (Sec. 366.004, Health and Safety Code.)
 469-23            (Sections 15.005-15.010 reserved for expansion)
 469-24        SUBCHAPTER B.  GENERAL POWERS AND DUTIES OF COMMISSION
 469-25                         AND AUTHORIZED AGENTS
 469-26        Sec. 15.011.  General Supervision and Authority.  The
 469-27  commission or authorized agents:
  470-1              (1)  have general authority over the location, design,
  470-2  construction, installation, and proper functioning of on-site
  470-3  sewage disposal systems; and
  470-4              (2)  shall administer this chapter and the rules
  470-5  adopted under this chapter.  (Sec. 366.011, Health and Safety
  470-6  Code.)
  470-7        Sec. 15.012.  Rules Concerning On-Site Sewage Disposal
  470-8  Systems.  (a)  To assure the effective and efficient administration
  470-9  of this chapter, the commission shall:
 470-10              (1)  adopt rules governing the installation of on-site
 470-11  sewage disposal systems, including rules concerning the:
 470-12                    (A)  review and approval of on-site sewage
 470-13  disposal systems;
 470-14                    (B)  registration of installers; and
 470-15                    (C)  temporary waiver of a permit for an
 470-16  emergency repair; and
 470-17              (2)  adopt rules under this chapter that encourage the
 470-18  use of economically feasible alternative techniques and
 470-19  technologies for on-site sewage disposal systems that can be used
 470-20  in soils not suitable for conventional on-site sewage disposal.
 470-21        (b)  In rules adopted under this chapter, the commission
 470-22  shall include definitions and detailed descriptions of good
 470-23  management practices and procedures for the construction of on-site
 470-24  sewage disposal systems that:
 470-25              (1)  justify variation in field size or in other
 470-26  standard requirements;
 470-27              (2)  promote the use of good management practices or
  471-1  procedures in the construction of on-site sewage disposal systems;
  471-2              (3)  require the use of one or more specific management
  471-3  practices or procedures as a condition of approval of a standard
  471-4  on-site sewage disposal system if, in the opinion of the commission
  471-5  or authorized agent, site conditions or other problems require the
  471-6  use of additional management practices or procedures to ensure the
  471-7  proper operation of an on-site sewage disposal system; and
  471-8              (4)  make available general, operational information to
  471-9  the public.  (Sec. 366.012, Health and Safety Code.)
 471-10        Sec. 15.013.  Training Program.  (a)  The commission shall
 471-11  establish a training program specifically developed for installers,
 471-12  authorized agents, and designated representatives.
 471-13        (b)  The commission may charge a program participant a
 471-14  reasonable fee to cover the cost of the training.  (Sec. 366.013,
 471-15  Health and Safety Code.)
 471-16        Sec. 15.014.  Designated Representative.  (a)  The commission
 471-17  or an authorized agent may designate a person to make percolation
 471-18  tests, systems designs, and inspections subject to the approval of
 471-19  the commission or agent.
 471-20        (b)  To qualify as a designated representative, a person
 471-21  must:
 471-22              (1)  demonstrate to the commission's or authorized
 471-23  agent's satisfaction the person's competency to make percolation
 471-24  tests, designs, and inspections for on-site sewage disposal systems
 471-25  in accordance with this chapter and rules adopted under this
 471-26  chapter; and
 471-27              (2)  successfully complete the training program
  472-1  provided by the commission.  (Sec. 366.014, Health and Safety
  472-2  Code.)
  472-3        Sec. 15.015.  Enforcement.  The commission shall enforce this
  472-4  chapter and rules adopted under this chapter.  (Sec. 366.015,
  472-5  Health and Safety Code.)
  472-6        Sec. 15.016.  Emergency Orders.  (a)  If the commission or an
  472-7  authorized agent determines that an emergency exists and that the
  472-8  public health or safety is endangered because of the operation of
  472-9  an on-site sewage disposal system that does not comply with this
 472-10  chapter or a rule adopted under this chapter, the commission or
 472-11  authorized agent by order may:
 472-12              (1)  suspend the registration of the installer;
 472-13              (2)  regulate the on-site sewage disposal system; or
 472-14              (3)  both suspend the registration and regulate the
 472-15  system.
 472-16        (b)  The order may be issued without notice and hearing.
 472-17        (c)  If the emergency order is issued without a hearing, the
 472-18  commission or authorized agent shall set a time and place for a
 472-19  hearing to affirm, modify, or set aside the emergency order to be
 472-20  held not later than the 30th day after the date on which the
 472-21  emergency order is issued.
 472-22        (d)  General notice of the hearing shall be given in
 472-23  accordance with the laws of this state and rules adopted by the
 472-24  commission or authorized agent.
 472-25        (e)  The hearing shall be conducted in accordance with the
 472-26  commission's rules or laws and rules governing the authorized
 472-27  agent.  (Sec. 366.016, Health and Safety Code.)
  473-1        Sec. 15.017.  Required Repairs; Penalty.  (a)  The commission
  473-2  or an authorized agent may require a property owner to repair a
  473-3  malfunctioning on-site sewage disposal system on the owner's
  473-4  property not later than the 30th day after the date on which the
  473-5  owner is notified by the commission or authorized agent of the
  473-6  malfunctioning system.
  473-7        (b)  The property owner must take adequate measures as soon
  473-8  as practicable to abate an immediate health hazard.
  473-9        (c)  The property owner may be assessed a penalty under
 473-10  Chapter 341, Health and Safety Code, for each day that the on-site
 473-11  sewage disposal system remains unrepaired.  (Sec. 366.017, Health
 473-12  and Safety Code.)
 473-13            (Sections 15.018-15.030 reserved for expansion)
 473-14          SUBCHAPTER C.  DESIGNATION OF POLITICAL SUBDIVISION
 473-15                          AS AUTHORIZED AGENT
 473-16        Sec. 15.031.  Designation.  (a)  The commission shall
 473-17  designate a political subdivision as an authorized agent if the
 473-18  political subdivision:
 473-19              (1)  notifies the commission that the political
 473-20  subdivision wants to regulate the use of on-site sewage disposal
 473-21  systems in its jurisdiction;
 473-22              (2)  in accordance with commission procedures, holds a
 473-23  public hearing and adopts an order or resolution that complies with
 473-24  Section 15.032; and
 473-25              (3)  submits the order or resolution to the department.
 473-26        (b)  The commission in writing may approve the political
 473-27  subdivision's order or resolution, and the designation takes effect
  474-1  only when the order or resolution is approved.  (Sec. 366.031,
  474-2  Health and Safety Code.)
  474-3        Sec. 15.032.  Order or Resolution; Requirements.  (a)  The
  474-4  political subdivision's order or resolution must:
  474-5              (1)  incorporate the commission's rules on abatement or
  474-6  prevention of pollution and the prevention of injury to the public
  474-7  health;
  474-8              (2)  meet the commission's minimum requirements for
  474-9  on-site sewage disposal systems; and
 474-10              (3)  include a written enforcement plan.
 474-11        (b)  If the order or resolution adopts more stringent
 474-12  standards for on-site sewage disposal systems than this chapter or
 474-13  the commission's standards and provides greater public health and
 474-14  safety protection, the authorized agent's order or resolution
 474-15  prevails over this chapter or the standards.
 474-16        (c)  An authorized agent must obtain the commission's
 474-17  approval of substantive amendments to the agent's order or
 474-18  resolution.  (Sec. 366.032, Health and Safety Code.)
 474-19        Sec. 15.033.  DELEGATION TO LOCAL GOVERNMENTAL ENTITIES.  The
 474-20  commission shall delegate to political subdivisions responsibility
 474-21  for the implementation and enforcement of applicable rules, subject
 474-22  to the commission's approval.  (Sec. 366.033, Health and Safety
 474-23  Code.)
 474-24        Sec. 15.034.  Investigation of Authorized Agents.  (a)  The
 474-25  commission shall:
 474-26              (1)  conduct not more often than once a year an
 474-27  investigation of each authorized agent to determine the authorized
  475-1  agent's compliance with this chapter; and
  475-2              (2)  prepare an annual report concerning the status of
  475-3  the political subdivision's regulatory program.
  475-4        (b)  If the commission determines that an authorized agent
  475-5  does not consistently enforce the commission's minimum requirements
  475-6  for on-site sewage disposal systems, the commission shall hold a
  475-7  hearing and determine whether to continue the designation as an
  475-8  authorized agent.  (Sec. 366.034, Health and Safety Code.)
  475-9        Sec. 15.035.  Mandatory Application for and Maintenance of
 475-10  Designation.  A political subdivision that applies to the Texas
 475-11  Water Development Board for financial assistance under a program
 475-12  for economically distressed areas must take all actions necessary
 475-13  to receive and maintain a designation as an authorized agent.
 475-14  (Sec. 366.035, Health and Safety Code.)
 475-15        Sec. 15.036.  County Map.  (a)  If the commission designates
 475-16  a political subdivision as its authorized agent and if the
 475-17  political subdivision intends to apply to the Texas Water
 475-18  Development Board for financial assistance under a program for
 475-19  economically distressed areas, the commissioners court of the
 475-20  county in which the political subdivision is located shall prepare
 475-21  a map of the county area outside the limits of municipalities.  The
 475-22  political subdivision shall give to the commissioners court a
 475-23  written notice of the political subdivision's intention to apply
 475-24  for the assistance.  The map must show the parts of the area in
 475-25  which the different types of on-site sewage disposal systems may be
 475-26  appropriately located and the parts in which the different types of
 475-27  systems may not be appropriately located.
  476-1        (b)  The commissioners court shall file the map in the office
  476-2  of the county clerk.
  476-3        (c)  The commissioners court, at least every five years,
  476-4  shall review the map and make changes to it as necessary to keep
  476-5  the map accurate.  (Sec. 366.036, Health and Safety Code.)
  476-6            (Sections 15.037-15.050 reserved for expansion)
  476-7                         SUBCHAPTER D. PERMITS
  476-8        Sec. 15.051.  Permits.  (a)  A person must hold a permit and
  476-9  an approved plan to construct, alter, repair, extend, or operate an
 476-10  on-site sewage disposal system.
 476-11        (b)  If the on-site sewage disposal system is located in the
 476-12  jurisdiction of an authorized agent, the permit is issued by the
 476-13  authorized agent; otherwise, the permit is issued by the
 476-14  commission.
 476-15        (c)  A person may not begin to construct, alter, repair, or
 476-16  extend an on-site sewage disposal system that is owned by another
 476-17  person unless the owner or owner's representative shows proof of a
 476-18  permit and approved plan from the commission or authorized agent.
 476-19  (Sec. 366.051, Health and Safety Code.)
 476-20        Sec. 15.052.  Permit Not Required for On-Site Sewage Disposal
 476-21  on Certain Single Residences.  (a)  Sections 15.051, 15.053,
 476-22  15.054, and 15.057 do not apply to an on-site sewage disposal
 476-23  system of a single residence that is located on a land tract that
 476-24  is 10 acres or larger in which the field line or sewage disposal
 476-25  line is not closer than 100 feet of the property line.
 476-26        (b)  Effluent from the on-site sewage disposal system on a
 476-27  single residence:
  477-1              (1)  must be retained in the specified limits;
  477-2              (2)  may not create a nuisance; and
  477-3              (3)  may not pollute groundwater.  (Sec. 366.052,
  477-4  Health and Safety Code.)
  477-5        Sec. 15.053.  Permit Application.  (a)  Application for a
  477-6  permit must:
  477-7              (1)  be made on a form provided by the commission or
  477-8  authorized agent; and
  477-9              (2)  include information required by the commission or
 477-10  authorized agent to establish that the individual sewage disposal
 477-11  system complies with this chapter and rules adopted under this
 477-12  chapter.
 477-13        (b)  The commission shall adopt rules and procedures for the
 477-14  submission, review, and approval or rejection of permit
 477-15  applications.  (Sec. 366.053, Health and Safety Code.)
 477-16        Sec. 15.054.  Notice From Installer.  An installer may not
 477-17  begin construction, alteration, repair, or extension of an on-site
 477-18  sewage disposal system unless the installer notifies the commission
 477-19  or authorized agent of the date on which the installer plans to
 477-20  begin work on the system.  (Sec. 366.054, Health and Safety Code.)
 477-21        Sec. 15.055.  Inspections.  (a)  The commission or authorized
 477-22  agent shall review a proposal for an on-site sewage disposal system
 477-23  and make inspections of the system as necessary to ensure that the
 477-24  on-site sewage disposal system is in substantial compliance with
 477-25  this chapter and the rules adopted under this chapter.
 477-26        (b)  An on-site sewage disposal system may not be used unless
 477-27  it is inspected and approved by the commission or the authorized
  478-1  agent.
  478-2        (c)  A holder of a permit issued under this chapter shall
  478-3  notify the commission, the authorized agent, or a designated
  478-4  representative not later than the fifth working day before the
  478-5  proposed date of the operation of an installation that the
  478-6  installation is ready for inspection.
  478-7        (d)  The inspection shall be made on a date and time mutually
  478-8  agreed on by the holder of a permit and the commission, the
  478-9  authorized agent, or a designated representative.
 478-10        (e)  An installation inspection shall be made not later than
 478-11  the second working day, excluding holidays, after the date on which
 478-12  notification that the installation is completed and ready for
 478-13  inspection is given to the commission, the authorized agent, or a
 478-14  designated representative.
 478-15        (f)  The owner, owner's representative, or occupant of the
 478-16  property on which the installation is located shall give the
 478-17  commission, the authorized agent, or a designated representative
 478-18  reasonable access to the property at reasonable times to make
 478-19  necessary inspections.  (Sec. 366.055, Health and Safety Code.)
 478-20        Sec. 15.056.  Approval of On-Site Sewage Disposal System.
 478-21  (a)  The commission or authorized agent may approve or disapprove
 478-22  the on-site sewage disposal system depending on the results of the
 478-23  inspections under Section 15.055.
 478-24        (b)  If a system is not approved under this section, the
 478-25  on-site sewage disposal system may not be used until all
 478-26  deficiencies are corrected and the system is reinspected and
 478-27  approved by the department or authorized agent.  (Sec. 366.056,
  479-1  Health and Safety Code.)
  479-2        Sec. 15.057.  Permit Issuance.  (a)  The commission shall
  479-3  issue or authorize the issuance of permits and other documents.
  479-4        (b)  A permit and approved plan to construct, alter, repair,
  479-5  extend, or operate an on-site sewage disposal system must be issued
  479-6  in the name of the person who owns the system and must identify the
  479-7  specific property location or address for the specific
  479-8  construction, alteration, extension, repair, or operation proposed
  479-9  by the person.
 479-10        (c)  The commission may not issue a permit to construct,
 479-11  alter, repair, or extend an on-site sewage disposal system if the
 479-12  issuance of a permit conflicts with other applicable laws or public
 479-13  policy under this chapter.  (Sec.  366.057, Health and Safety
 479-14  Code.)
 479-15            (Sections 15.058-15.070 reserved for expansion)
 479-16               SUBCHAPTER E.  REGISTRATION OF INSTALLERS
 479-17        Sec. 15.071.  Registration.  A person may not operate as an
 479-18  installer in this state unless the person is registered by the
 479-19  commission or an authorized agent.  (Sec. 366.071, Health and
 479-20  Safety Code.)
 479-21        Sec. 15.072.  Registration Application.  The commission shall
 479-22  adopt a registration application form and rules and procedures for
 479-23  the submission, review, and approval or rejection of registration
 479-24  applications.  (Sec. 366.072, Health and Safety Code.)
 479-25        Sec. 15.073.  Registration Issuance.  (a)  The commission
 479-26  shall issue or authorize the issuance of registrations and other
 479-27  documents.
  480-1        (b)  The commission shall issue a registration to an
  480-2  installer if the installer:
  480-3              (1)  completes an application form that complies with
  480-4  this chapter and rules adopted under this chapter; and
  480-5              (2)  completes the training program provided by the
  480-6  commission.  (Sec.  366.073, Health and Safety Code.)
  480-7        Sec. 15.074.  Proof of Registration.  Each installer shall
  480-8  furnish proof of registration if requested by the commission, an
  480-9  authorized agent, or a designated representative.  (Sec.  366.075,
 480-10  Health and Safety Code.)
 480-11        Sec. 15.075.  Registration Renewal.  The commission may
 480-12  provide for periodic renewal of registrations.  (Sec.  366.076,
 480-13  Health and Safety Code.)
 480-14        Sec. 15.076.  Registration Revocation.  (a)  An installer's
 480-15  statewide registration may be revoked by the commission or an
 480-16  authorized agent after notice and hearing if the installer violates
 480-17  this chapter or a rule adopted under this chapter.
 480-18        (b)  The revocation procedures must comply with the
 480-19  Administrative Procedure and Texas Register Act (Article 6252-13a,
 480-20  Vernon's Texas Civil Statutes).
 480-21        (c)  The installer may appeal a revocation under this section
 480-22  as provided by law.  (Sec. 366.077, Health and Safety Code.)
 480-23        Sec. 15.077.  Official Roster of Registered Installers.  On
 480-24  request, the commission semiannually shall:
 480-25              (1)  disseminate to the public an official roster of
 480-26  registered installers; and
 480-27              (2)  provide to authorized agents a monthly update of
  481-1  the roster.  (Sec.  366.078, Health and Safety Code.)
  481-2            (Sections 15.078-15.090 reserved for expansion)
  481-3                       SUBCHAPTER F.  PENALTIES
  481-4        Sec. 15.091.  Criminal Penalties.  (a)  A person commits an
  481-5  offense if the person violates Section 15.071.
  481-6        (b)  A person commits an offense if the person begins to
  481-7  construct, alter, repair, or extend an on-site sewage disposal
  481-8  system owned by another person before the owner of the system
  481-9  obtains a permit to construct, alter, repair, or extend the on-site
 481-10  sewage disposal system as required by Subchapter D.
 481-11        (c)  An emergency repair to an on-site sewage disposal system
 481-12  without a permit in accordance with the rules adopted under Section
 481-13  15.012(a)(1)(C) is not an offense under this section.
 481-14        (d)  An offense under this section is a misdemeanor
 481-15  punishable by a fine of not less than $50 or more than $100 unless
 481-16  it is shown on the trial of the defendant that the defendant has
 481-17  previously been convicted of an offense under this chapter, in
 481-18  which event the offense is punishable by:
 481-19              (1)  a fine of not less than $125 or more than $500;
 481-20              (2)  confinement in jail for not more than one month;
 481-21  or
 481-22              (3)  both the fine and confinement.
 481-23        (e)  Each day of a continuing violation is a separate
 481-24  offense.  (Sec.  366.091, Health and Safety Code.)
 481-25        Sec. 15.092.  Injunction.  The commission or an authorized
 481-26  agent may bring suit for injunction to prevent or restrain a
 481-27  violation of this chapter.  (Sec. 366.092, Health and Safety Code.)
  482-1        Sec. 15.093.  Legal Proceedings.  A prosecuting attorney who
  482-2  receives a report from the commission or an authorized agent of a
  482-3  violation of this chapter or a rule adopted under this chapter
  482-4  shall:
  482-5              (1)  begin appropriate proceedings in the proper court
  482-6  without unnecessary delay; and
  482-7              (2)  prosecute the cause as required by law.  (Sec.
  482-8  366.093, Health and Safety Code.)
  482-9                (Chapters 16-19 reserved for expansion)
 482-10                         TITLE 3.  SOLID WASTE
 482-11                 CHAPTER 20.  SOLID WASTE DISPOSAL ACT
 482-12                   SUBCHAPTER A.  GENERAL PROVISIONS
 482-13        Sec. 20.001.  SHORT TITLE.  This chapter may be cited as the
 482-14  Solid Waste Disposal Act.  (Sec. 361.001, Health and Safety Code.)
 482-15        Sec. 20.002.  Policy; Findings.  (a)  It is this state's
 482-16  policy and the purpose of this chapter to safeguard the health,
 482-17  welfare, and physical property of the people and to protect the
 482-18  environment by controlling the management of solid waste, including
 482-19  accounting for hazardous waste that is generated.
 482-20        (b)  The storage, processing, and disposal of hazardous waste
 482-21  at municipal solid waste facilities pose a risk to public health
 482-22  and the environment, and in order to protect the environment and to
 482-23  provide measures for adequate protection of public health, it is in
 482-24  the public interest to require hazardous waste to be stored,
 482-25  processed, and disposed of only at permitted hazardous industrial
 482-26  solid waste facilities.  (Sec. 361.002, Health and Safety Code.)
 482-27        Sec. 20.003.  Definitions.  Unless the context requires a
  483-1  different definition, in this chapter:
  483-2              (1)  "Apparent recharge zone" means that recharge zone
  483-3  designated on maps prepared or compiled by, and located in the
  483-4  offices of, the commission.
  483-5              (2)  "Class I industrial solid waste" means an
  483-6  industrial solid waste or mixture of industrial solid waste,
  483-7  including hazardous industrial waste, that because of its
  483-8  concentration or physical or chemical characteristics:
  483-9                    (A)  is toxic, corrosive, flammable, a strong
 483-10  sensitizer or irritant, or a generator of sudden pressure by
 483-11  decomposition, heat, or other means; and
 483-12                    (B)  poses or may pose a substantial present or
 483-13  potential danger to human health or the environment if improperly
 483-14  processed, stored, transported, or otherwise managed.
 483-15              (3)  "Class I nonhazardous industrial solid waste"
 483-16  means any Class I industrial solid waste that has not been
 483-17  identified or listed as a hazardous waste by the administrator of
 483-18  the United States Environmental Protection Agency under the federal
 483-19  Solid Waste Disposal Act, as amended by the Resource Conservation
 483-20  and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.).
 483-21              (4)  "Commercial hazardous waste management facility"
 483-22  means any hazardous waste management facility that accepts
 483-23  hazardous waste or PCBs for a charge, except a captured facility or
 483-24  a facility that accepts waste only from other facilities owned or
 483-25  effectively controlled by the same person, where "captured
 483-26  facility" means a manufacturing or production facility that
 483-27  generates an industrial solid waste or hazardous waste that is
  484-1  routinely stored, processed, or disposed of on a shared basis in an
  484-2  integrated waste management unit owned, operated by, and located
  484-3  within a contiguous manufacturing complex.
  484-4              (5)  "Composting" means the controlled biological
  484-5  decomposition of organic solid waste under aerobic conditions.
  484-6              (6)  "Disposal" means the discharging, depositing,
  484-7  injecting, dumping, spilling, leaking, or placing of solid waste or
  484-8  hazardous waste, whether containerized or uncontainerized, into or
  484-9  on land or water so that the solid waste or hazardous waste or any
 484-10  constituent thereof may be emitted into the air, discharged into
 484-11  surface water or groundwater, or introduced into the environment in
 484-12  any other manner.
 484-13              (7)  "Environmental response law" means the federal
 484-14  Comprehensive Environmental Response, Compensation and Liability
 484-15  Act of 1980, 42 U.S.C.  Sections 9601 through 9675, as amended by
 484-16  the Superfund Amendments and Reauthorization Act of 1986.
 484-17              (8)  "Garbage" means solid waste that is putrescible
 484-18  animal and vegetable waste materials from the handling,
 484-19  preparation, cooking, or consumption of food, including waste
 484-20  materials from markets, storage facilities, and the handling and
 484-21  sale of produce and other food products.
 484-22              (9)  "Hazardous substance":
 484-23                    (A)  means:
 484-24                          (i)  a substance designated under Section
 484-25  311(b)(2)(A) of the Federal Water Pollution Control Act, as amended
 484-26  (33 U.S.C. Section 1321);
 484-27                          (ii)  an element, compound, mixture,
  485-1  solution, or substance designated under Section 102 of the
  485-2  environmental response law;
  485-3                          (iii)  a hazardous waste having the
  485-4  characteristics identified under or listed under Section 3001 of
  485-5  the federal Solid Waste Disposal Act, as amended (42 U.S.C. Section
  485-6  6921), excluding waste, the regulation of which under the federal
  485-7  Solid Waste Disposal Act (42 U.S.C. Section 6901 et seq.) has been
  485-8  suspended by Act of Congress;
  485-9                          (iv)  a toxic pollutant listed under
 485-10  Section 307(a) of the Federal Water Pollution Control Act (33
 485-11  U.S.C. Section 1317);
 485-12                          (v)  a hazardous air pollutant listed under
 485-13  Section 112 of the federal Clean Air Act, as amended (42 U.S.C.
 485-14  Section 7412); and
 485-15                          (vi)  any imminently hazardous chemical
 485-16  substance or mixture with respect to which the administrator of the
 485-17  Environmental Protection Agency has taken action under Section 7 of
 485-18  the Toxic Substances Control Act (15 U.S.C. Section 2606); but
 485-19                    (B)  does not include:
 485-20                          (i)  petroleum, which means crude oil or
 485-21  any fraction of crude oil that is not otherwise specifically listed
 485-22  or designated as a hazardous substance under Subparagraphs (i)
 485-23  through (vi) of Paragraph (A);
 485-24                          (ii)  natural gas, natural gas liquids,
 485-25  liquefied natural gas, or synthetic gas usable for fuel mixtures of
 485-26  natural gas and synthetic gas; or
 485-27                          (iii)  waste materials that result from
  486-1  activities associated with the exploration, development, or
  486-2  production of oil or gas or geothermal resources or any other
  486-3  substance or material regulated by the Railroad Commission of Texas
  486-4  under Section 91.101, Natural Resources Code.
  486-5              (10)  "Hazardous waste" means solid waste identified or
  486-6  listed as a hazardous waste by the administrator of the United
  486-7  States Environmental Protection Agency under the federal Solid
  486-8  Waste Disposal Act, as amended by the Resource Conservation and
  486-9  Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et seq.).
 486-10              (11)  "Hazardous waste management facility" means all
 486-11  contiguous land, including structures, appurtenances, and other
 486-12  improvements on the land, used for processing, storing, or
 486-13  disposing of hazardous waste.  The term includes a publicly or
 486-14  privately owned hazardous waste management facility consisting of
 486-15  processing, storage, or disposal operational hazardous waste
 486-16  management units such as one or more landfills, surface
 486-17  impoundments, waste piles, incinerators, boilers, and industrial
 486-18  furnaces, including cement kilns, injection wells, salt dome waste
 486-19  containment caverns, land treatment facilities, or a combination of
 486-20  units.
 486-21              (12)  "Hazardous waste management unit" means a
 486-22  landfill, surface impoundment, waste pile, industrial furnace,
 486-23  incinerator, cement kiln, injection well, container, drum, salt
 486-24  dome waste containment cavern, or land treatment unit, or any other
 486-25  structure, vessel, appurtenance, or other improvement on land used
 486-26  to manage hazardous waste.
 486-27              (13)  "Industrial furnace" includes cement kilns, lime
  487-1  kilns, aggregate kilns, phosphate kilns, coke ovens, blast
  487-2  furnaces, smelting, melting, or refining furnaces, including
  487-3  pyrometallurgical devices such as cupolas, reverberator furnaces,
  487-4  sintering machines, roasters, or foundry furnaces, titanium dioxide
  487-5  chloride process oxidation reactors, methane reforming furnaces,
  487-6  pulping liquor recovery furnaces, combustion devices used in the
  487-7  recovery of sulfur values from spent sulfuric acid, and other
  487-8  devices the commission may list.
  487-9              (14)  "Industrial solid waste" means solid waste
 487-10  resulting from or incidental to a process of industry or
 487-11  manufacturing, or mining or agricultural operations.
 487-12              (15)  "Local government" means:
 487-13                    (A)  a county;
 487-14                    (B)  a municipality; or
 487-15                    (C)  a political subdivision exercising the
 487-16  authority granted under Section 20.165.
 487-17              (16)  "Management" means the systematic control of the
 487-18  activities of generation, source separation, collection, handling,
 487-19  storage, transportation, processing, treatment, recovery, or
 487-20  disposal of solid waste.
 487-21              (17)  "Motor vehicle" has the meaning assigned by
 487-22  Section 2(b), Uniform Act Regulating Traffic on Highways (Article
 487-23  6701d, Vernon's Texas Civil Statutes).
 487-24              (18)  "Municipal solid waste" means solid waste
 487-25  resulting from or incidental to municipal, community, commercial,
 487-26  institutional, or recreational activities, and includes garbage,
 487-27  rubbish, ashes, street cleanings, dead animals, abandoned
  488-1  automobiles, and other solid waste other than industrial solid
  488-2  waste.
  488-3              (19)  "Notice of intent to file an application" means
  488-4  the notice filed under Section 20.063.
  488-5              (20)  "PCBs" or "polychlorinated biphenyl compounds"
  488-6  means compounds subject to Title 40, Code of Federal Regulations,
  488-7  Part 761.
  488-8              (21)  "Person" means an individual, corporation,
  488-9  organization, government or governmental subdivision or agency,
 488-10  business trust, partnership, association, or any other legal
 488-11  entity.
 488-12              (22)  "Person affected" means a person who demonstrates
 488-13  that the person has suffered or will suffer actual injury or
 488-14  economic damage and, if the person is not a local government:
 488-15                    (A)  is a resident of a county, or a county
 488-16  adjacent or contiguous to the county, in which a solid waste
 488-17  facility is to be located; or
 488-18                    (B)  is doing business or owns land in the county
 488-19  or adjacent or contiguous county.
 488-20              (23)  "Processing" means the extraction of materials
 488-21  from or the transfer, volume reduction, conversion to energy, or
 488-22  other separation and preparation of solid waste for reuse or
 488-23  disposal.  The term includes the treatment or neutralization of
 488-24  hazardous waste designed to change the physical, chemical, or
 488-25  biological character or composition of a hazardous waste so as to
 488-26  neutralize the waste, recover energy or material from the waste,
 488-27  render the waste nonhazardous or less hazardous, make it safer to
  489-1  transport, store, or dispose of, or render it amenable for recovery
  489-2  or storage, or reduce its volume.  The term does not include
  489-3  activities concerning those materials exempted by the administrator
  489-4  of the United States Environmental Protection Agency under the
  489-5  federal Solid Waste Disposal Act, as amended by the Resource
  489-6  Conservation and Recovery Act of 1976, as amended (42 U.S.C.
  489-7  Section 6901 et seq.), unless the commission determines that
  489-8  regulation of the activity under this chapter is necessary to
  489-9  protect human health or the environment.
 489-10              (24)  "Radioactive waste" means waste that requires
 489-11  specific licensing under Chapter 401, Health and Safety Code, and
 489-12  the rules adopted by the board of health under that law.
 489-13              (25)  "Recycling" means the legitimate use, reuse, or
 489-14  reclamation of solid waste.
 489-15              (26)  "Release" means any spilling, leaking, pumping,
 489-16  pouring, emitting, emptying, discharging, injecting, escaping,
 489-17  leaching, dumping, or disposing into the environment.  The term
 489-18  does not include:
 489-19                    (A)  a release that results in an exposure to a
 489-20  person solely within a workplace, concerning a claim that the
 489-21  person may assert against the person's employer;
 489-22                    (B)  an emission from the engine exhaust of a
 489-23  motor vehicle, rolling stock, aircraft, vessel, or pipeline pumping
 489-24  station engine;
 489-25                    (C)  a release of source, by-product, or special
 489-26  nuclear material from a nuclear incident, as those terms are
 489-27  defined by the Atomic Energy Act of 1954, as amended (42 U.S.C.
  490-1  Section 2011 et seq.), if the release is subject to requirements
  490-2  concerning financial protection established by the Nuclear
  490-3  Regulatory Commission under Section 170 of that Act;
  490-4                    (D)  for the purposes of Section 104 of the
  490-5  environmental response law, or other response action, a release of
  490-6  source, by-product, or special nuclear material from a processing
  490-7  site designated under Section 102(a)(1) or 302(a) of the Uranium
  490-8  Mill Tailings Radiation Control Act of 1978 (42 U.S.C. Sections
  490-9  7912 and 7942); and
 490-10                    (E)  the normal application of fertilizer.
 490-11              (27)  "Remedial action" means an action consistent with
 490-12  a permanent remedy taken instead of or in addition to a removal
 490-13  action in the event of a release or threatened release of a
 490-14  hazardous waste into the environment to prevent or minimize the
 490-15  release of hazardous waste so that the hazardous waste does not
 490-16  migrate to cause an imminent and substantial danger to present or
 490-17  future public health and safety or the environment.  The term
 490-18  includes:
 490-19                    (A)  actions at the location of the release,
 490-20  including storage, confinement, perimeter protection using dikes,
 490-21  trenches, or ditches, clay cover, neutralization, cleanup of
 490-22  released hazardous waste or contaminated materials, recycling or
 490-23  reuse, diversion, destruction, segregation of reactive waste,
 490-24  dredging or excavations, repair or replacement of leaking
 490-25  containers, collection of leachate and runoff, on-site treatment or
 490-26  incineration, provision of alternate water supplies, and any
 490-27  monitoring reasonably required to assure that those actions protect
  491-1  the public health and safety or the environment; and
  491-2                    (B)  the costs of permanent relocation of
  491-3  residents, businesses, and community facilities if the
  491-4  administrator of the United States Environmental Protection Agency
  491-5  or the executive director determines that, alone or in combination
  491-6  with other measures, the relocation:
  491-7                          (i)  is more cost-effective than and
  491-8  environmentally preferable to the transportation, storage,
  491-9  treatment, destruction, or secure disposition off-site of hazardous
 491-10  waste; or
 491-11                          (ii)  may otherwise be necessary to protect
 491-12  the public health or safety.
 491-13              (28)  "Removal" includes:
 491-14                    (A)  cleaning up or removing released hazardous
 491-15  waste from the environment;
 491-16                    (B)  taking necessary action in the event of the
 491-17  threat of release of hazardous waste into the environment;
 491-18                    (C)  taking necessary action to monitor, assess,
 491-19  and evaluate the release or threat of release of hazardous waste;
 491-20                    (D)  disposing of removed material;
 491-21                    (E)  erecting a security fence or other measure
 491-22  to limit access;
 491-23                    (F)  providing alternate water supplies,
 491-24  temporary evacuation, and housing for threatened individuals not
 491-25  otherwise provided for;
 491-26                    (G)  acting under Section 104(b) of the
 491-27  environmental response law;
  492-1                    (H)  providing emergency assistance under the
  492-2  federal Disaster Relief Act of 1974 (42 U.S.C. Section 5121 et
  492-3  seq.); or
  492-4                    (I)  taking any other necessary action to
  492-5  prevent, minimize, or mitigate damage to the public health and
  492-6  welfare or the environment that may otherwise result from a release
  492-7  or threat of release.
  492-8              (29)  "Rubbish" means nonputrescible solid waste,
  492-9  excluding ashes, that consists of:
 492-10                    (A)  combustible waste materials, including
 492-11  paper, rags, cartons, wood, excelsior, furniture, rubber, plastics,
 492-12  yard trimmings, leaves, and similar materials; and
 492-13                    (B)  noncombustible waste materials, including
 492-14  glass, crockery, tin cans, aluminum cans, metal furniture, and
 492-15  similar materials that do not burn at ordinary incinerator
 492-16  temperatures (1,600 to 1,800 degrees Fahrenheit).
 492-17              (30)  "Sanitary landfill" means a controlled area of
 492-18  land on which solid waste is disposed of in accordance with
 492-19  standards, rules, or orders established by the commission.
 492-20              (31)  "Sludge" means solid, semisolid, or liquid waste
 492-21  generated from a municipal, commercial, or industrial wastewater
 492-22  treatment plant, water supply treatment plant, or air pollution
 492-23  control facility, excluding the treated effluent from a wastewater
 492-24  treatment plant.
 492-25              (32)  This subdivision expires on delegation of the
 492-26  Resource Conservation and Recovery Act authority to the Railroad
 492-27  Commission of Texas.  Subject to the limitations of 42 U.S.C.
  493-1  Section 6903(27) and 40 C.F.R. Section 261.4(a), "solid waste"
  493-2  means garbage, rubbish, refuse, sludge from a waste treatment
  493-3  plant, water supply treatment plant, or air pollution control
  493-4  facility, and other discarded material, including solid, liquid,
  493-5  semisolid, or contained gaseous material resulting from industrial,
  493-6  municipal, commercial, mining, and agricultural operations and from
  493-7  community and institutional activities.  The term:
  493-8                    (A)  does not include:
  493-9                          (i)  solid or dissolved material in
 493-10  domestic sewage, or solid or dissolved material in irrigation
 493-11  return flows, or industrial discharges subject to regulation by
 493-12  permit issued under Chapter 10;
 493-13                          (ii)  soil, dirt, rock, sand, and other
 493-14  natural or man-made inert solid materials used to fill land if the
 493-15  object of the fill is to make the land suitable for the
 493-16  construction of surface improvements; or
 493-17                          (iii)  waste materials that result from
 493-18  activities associated with the exploration, development, or
 493-19  production of oil or gas or geothermal resources and other
 493-20  substance or material regulated by the Railroad Commission of Texas
 493-21  under Section 91.101, Natural Resources Code, unless the waste,
 493-22  substance, or material results from activities associated with
 493-23  gasoline plants, natural gas or natural gas liquids processing
 493-24  plants, pressure maintenance plants, or repressurizing plants and
 493-25  is hazardous waste as defined by the administrator of the United
 493-26  States Environmental Protection Agency under the federal Solid
 493-27  Waste Disposal Act, as amended by the Resource Conservation and
  494-1  Recovery Act, as amended (42 U.S.C. Section 6901 et seq.); and
  494-2                    (B)  does include hazardous substances, for the
  494-3  purposes of Sections 20.271 through 20.277, 20.280, and 20.343
  494-4  through 20.345.
  494-5              (33)  This subdivision is effective on delegation of
  494-6  the Resource Conservation and Recovery Act authority to the
  494-7  Railroad Commission of Texas.  Subject to the limitations of 42
  494-8  U.S.C. Section 6903(27) and 40 C.F.R. Section 261.4(a), "solid
  494-9  waste" means garbage, rubbish, refuse, sludge from a waste
 494-10  treatment plant, water supply treatment plant, or air pollution
 494-11  control facility, and other discarded material, including solid,
 494-12  liquid, semisolid, or contained gaseous material resulting from
 494-13  industrial, municipal, commercial, mining, and agricultural
 494-14  operations and from community and institutional activities.  The
 494-15  term:
 494-16                    (A)  does not include:
 494-17                          (i)  solid or dissolved material in
 494-18  domestic sewage, or solid or dissolved material in irrigation
 494-19  return flows, or industrial discharges subject to regulation by
 494-20  permit issued under Chapter 10;
 494-21                          (ii)  soil, dirt, rock, sand, and other
 494-22  natural or man-made inert solid materials used to fill land if the
 494-23  object of the fill is to make the land suitable for the
 494-24  construction of surface improvements; or
 494-25                          (iii)  waste materials that result from
 494-26  activities associated with the exploration, development, or
 494-27  production of oil or gas or geothermal resources and other
  495-1  substance or material regulated by the Railroad Commission of Texas
  495-2  under Section 91.101, Natural Resources Code; and
  495-3                    (B)  does include hazardous substances, for the
  495-4  purposes of Sections 20.271 through 20.277, 20.280, and 20.343
  495-5  through 20.345.
  495-6              (34)  "Solid waste facility" means all contiguous land,
  495-7  including structures, appurtenances, and other improvements on the
  495-8  land, used for processing, storing, or disposing of solid waste.
  495-9  The term includes a publicly or privately owned solid waste
 495-10  facility consisting of several processing, storage, or disposal
 495-11  operational units such as one or more landfills, surface
 495-12  impoundments, or a combination of units.
 495-13              (35)  "Solid waste technician" means an individual who
 495-14  is trained in the practical aspects of the design, operation, and
 495-15  maintenance of a solid waste facility in accordance with standards,
 495-16  rules, or orders established by the commission.
 495-17              (36)  "Storage" means the temporary holding of solid
 495-18  waste, after which the solid waste is processed, disposed of, or
 495-19  stored elsewhere.
 495-20              (37)  "Pollution" means the alteration of the physical,
 495-21  thermal, chemical, or biological quality of, or the contamination
 495-22  of, any land or surface or subsurface water in the state that
 495-23  renders the land or water harmful, detrimental, or injurious to
 495-24  humans, animal life, vegetation, or property or to public health,
 495-25  safety, or welfare or impairs the usefulness or the public
 495-26  enjoyment of the land or water for any lawful or reasonable
 495-27  purpose.  (Sec. 361.003, Health and Safety Code.)
  496-1            (Sections 20.004-20.010 reserved for expansion)
  496-2            SUBCHAPTER B.  POWERS AND DUTIES OF COMMISSION
  496-3        Sec. 20.011.  Commission's Jurisdiction:  Municipal Solid
  496-4  Waste.  (a)  The commission is responsible for the management of
  496-5  municipal solid waste, excluding hazardous municipal waste, and
  496-6  shall coordinate municipal solid waste activities, excluding
  496-7  activities concerning hazardous municipal waste.
  496-8        (b)  The commission shall accomplish the purposes of this
  496-9  chapter by controlling all aspects of the management of municipal
 496-10  solid waste, excluding management of hazardous municipal waste, by
 496-11  all practical and economically feasible methods consistent with its
 496-12  powers and duties under this chapter and other law.
 496-13        (c)  The commission has the powers and duties specifically
 496-14  prescribed by this chapter and all other powers necessary or
 496-15  convenient to carry out its responsibilities under this chapter.
 496-16        Sec. 20.012.  ENFORCEMENT REFERRAL.  (a)  In matters under
 496-17  the commission's jurisdiction, the commission shall consult with
 496-18  the attorney general's office for assistance in determining whether
 496-19  referral to the attorney general for enforcement is mandatory under
 496-20  Section 20.227 or whether referral is appropriate, in the
 496-21  commission's discretion, for the disposition of enforcement matters
 496-22  under this chapter.
 496-23        (b)  If referral is determined to be mandatory or
 496-24  appropriate, the commission shall consult with the attorney
 496-25  general's office for assistance in determining whether criminal or
 496-26  civil enforcement action should be taken.  The commission shall use
 496-27  all available enforcement options.  (Sec. 361.011, Health and
  497-1  Safety Code.)
  497-2        Sec. 20.013.  Use of Solid Waste Fee Revenue.  Revenue
  497-3  received by the commission under Sections 2.175(b)-(e) shall be
  497-4  deposited in the state treasury to the credit of the commission.
  497-5  At least half the revenue is dedicated to the commission's
  497-6  municipal solid waste permitting and enforcement programs and
  497-7  related support activities, and the balance of the revenue is
  497-8  dedicated to pay for activities that will enhance the state's solid
  497-9  waste management program, including:
 497-10              (1)  provision of funds for the municipal solid waste
 497-11  management planning fund and the municipal solid waste resource
 497-12  recovery applied research and technical assistance fund established
 497-13  by Chapter 22;
 497-14              (2)  provision of technical assistance to local
 497-15  governments concerning solid waste management;
 497-16              (3)  establishment of a solid waste resource center in
 497-17  the commission and an office of waste minimization and recycling;
 497-18              (4)  provision of supplemental funding to local
 497-19  governments for the enforcement of this chapter, Chapter 25, and
 497-20  Chapter 741, Acts of the 67th Legislature, Regular Session, 1981
 497-21  (Article 4477-9a, Vernon's Texas Civil Statutes);
 497-22              (5)  conduct of a statewide public awareness program
 497-23  concerning solid waste management;
 497-24              (6)  provision of supplemental funds for other state
 497-25  agencies with responsibilities concerning solid waste management,
 497-26  recycling, and other initiatives with the purpose of diverting
 497-27  recyclable waste from landfills;
  498-1              (7)  conduct of research to promote the development and
  498-2  stimulation of markets for recycled waste products;
  498-3              (8)  creation of a state municipal solid waste
  498-4  superfund for:
  498-5                    (A)  the cleanup of unauthorized tire dumps and
  498-6  solid waste dumps for which a responsible party cannot be located
  498-7  or is not immediately financially able to provide the cleanup; and
  498-8                    (B)  the cleanup or proper closure of abandoned
  498-9  or contaminated municipal solid waste sites for which a responsible
 498-10  party is not immediately financially able to provide the cleanup;
 498-11  and
 498-12              (9)  provision of funds for other programs that the
 498-13  commission may consider appropriate to further the purposes of this
 498-14  chapter.  (Sec. 361.014, Health and Safety Code.)
 498-15        Sec. 20.014.  Commission's Jurisdiction:  Radioactive Waste.
 498-16  The commission is the state agency under Chapter 401, Health and
 498-17  Safety Code, that regulates radioactive waste activities not
 498-18  preemptively regulated by the federal government.  (Sec. 361.015,
 498-19  Health and Safety Code.)
 498-20        Sec. 20.015.  Recycling.  (a)  The commission shall establish
 498-21  and administer a waste minimization and recycling office within the
 498-22  commission that provides technical assistance to local governments
 498-23  concerning waste minimization and recycling.
 498-24        (b)  The commission shall work in conjunction with the Texas
 498-25  Department of Commerce to pursue the development of markets for
 498-26  recycled materials, including composting products.  (Sec. 361.0151,
 498-27  Health and Safety Code.)
  499-1        Sec. 20.016.  Memorandum of Understanding by Commission.  The
  499-2  commission by rule shall adopt:
  499-3              (1)  any memorandum of understanding between the
  499-4  commission and any other state agency; and
  499-5              (2)  any revision of a memorandum of understanding.
  499-6  (Sec. 361.016, Health and Safety Code.)
  499-7        Sec. 20.017.  Commission's Jurisdiction:  Industrial Solid
  499-8  Waste and Hazardous Municipal Waste.  (a)  The commission is
  499-9  responsible for the management of industrial solid waste and
 499-10  hazardous municipal waste and shall coordinate industrial solid
 499-11  waste activities and hazardous municipal waste activities.
 499-12        (b)  The commission shall accomplish the purposes of this
 499-13  chapter by controlling all aspects of the management of industrial
 499-14  solid waste and hazardous municipal waste by all practical and
 499-15  economically feasible methods consistent with its powers and duties
 499-16  under this chapter and other law.
 499-17        (c)  The commission has the powers and duties specifically
 499-18  prescribed by this chapter and all other powers necessary or
 499-19  convenient to carry out its responsibilities under this chapter.
 499-20        (d)  In matters under the commission's jurisdiction, the
 499-21  commission shall consult with:
 499-22              (1)  the Texas Department of Health concerning the
 499-23  public health aspects;
 499-24              (2)  the attorney general's office for assistance in
 499-25  determining whether referral to the attorney general for
 499-26  enforcement is mandatory under Section 20.227 or whether referral
 499-27  is appropriate, in the agency's discretion, for the disposition of
  500-1  enforcement matters under this chapter.
  500-2        (e)  If referral is determined to be mandatory or
  500-3  appropriate, the commission shall consult with the attorney
  500-4  general's office for assistance in determining whether criminal or
  500-5  civil enforcement action should be taken.  The commission shall use
  500-6  all available enforcement options.  (Sec. 361.017, Health and
  500-7  Safety Code.)
  500-8        Sec. 20.018.  Commission's Jurisdiction Over Hazardous Waste
  500-9  Components of Radioactive Waste.  (a)  The commission has the
 500-10  powers under this chapter necessary or convenient to carry out its
 500-11  responsibilities concerning the regulation of the management of
 500-12  hazardous waste components of radioactive waste under the
 500-13  commission's jurisdiction.
 500-14        (b)  The commission may not adopt rules or engage in
 500-15  management activities under this section that conflict with state
 500-16  or federal laws and rules concerning the regulation of radioactive
 500-17  waste.  (Sec. 361.018, Health and Safety Code.)
 500-18        Sec. 20.019.  Approval of Industrial Solid Waste Management
 500-19  in Municipal Solid Waste Facility.  (a)  Except as provided by
 500-20  Subsection (b), Class I nonhazardous industrial solid waste and
 500-21  small quantities of hazardous waste generated by conditionally
 500-22  exempt small quantity generators, as defined by the commission, may
 500-23  be accepted in a municipal solid waste facility if:
 500-24              (1)  authorized by the written approval of, or by rule
 500-25  of, the commission; and
 500-26              (2)  the generator of the Class I nonhazardous waste
 500-27  certifies on an appropriate commission form that the waste is not a
  501-1  hazardous waste.
  501-2        (b)  Except as otherwise prohibited by this chapter,
  501-3  nonhazardous industrial solid waste generated by the mechanical
  501-4  shredding of motor vehicles, appliances, or other items of scrap,
  501-5  used, or obsolete metals shall be accepted, without approval of the
  501-6  commission under Subsection (a), in a municipal solid waste
  501-7  facility that has previously been authorized to accept and has
  501-8  accepted Class I nonhazardous industrial solid wastes or Class II
  501-9  industrial solid wastes if the waste contains no free liquids, is
 501-10  not a hazardous waste as defined in Section 20.003, and satisfies
 501-11  other criteria that may be established by commission rule.  Until
 501-12  the commission adopts rules establishing additional criteria,
 501-13  generators of this type of waste shall satisfy the two criteria
 501-14  described in this subsection when these wastes are disposed of in
 501-15  municipal solid waste facilities.
 501-16        (c)  Solid waste under the commission's jurisdiction may be
 501-17  accepted in an industrial solid waste facility if authorized in
 501-18  writing by the commission.  (Sec. 361.019, Health and Safety Code.)
 501-19        Sec. 20.020.  State Solid Waste Plans.  (a)  The commission
 501-20  shall develop a strategic state solid waste plan for all solid
 501-21  waste under its jurisdiction.
 501-22        (b)  A strategic plan shall identify both short-term and
 501-23  long-term waste management problems, set short-term objectives as
 501-24  steps toward meeting long-term goals, and recommend specific
 501-25  actions to be taken within state times designed to address the
 501-26  identified problems and to achieve the stated objectives and goals.
 501-27  A plan shall reflect the state's preferred waste management methods
  502-1  as stated in Section 20.022 or 20.023 for the kinds of waste under
  502-2  the jurisdiction of the agency preparing the plan.
  502-3        (c)  A strategic plan shall include a short-range planning
  502-4  period of not more than five years, an intermediate planning period
  502-5  of not more than 10 years, and a long-range planning period of 11
  502-6  years or longer.
  502-7        (d)  In preparing its strategic plan the commission shall
  502-8  consult with:
  502-9              (1)  the commission's waste minimization, recycling, or
 502-10  reduction division;
 502-11              (2)  the waste reduction advisory committee; and
 502-12              (3)  the interagency coordinating council.
 502-13        (e)  A strategic plan shall be updated every two years.  The
 502-14  commission continually shall collect and analyze data for use in
 502-15  its next updated plan and systematically shall monitor progress
 502-16  toward achieving existing plan objectives and goals.  In preparing
 502-17  its updated plan, the commission shall examine previously and newly
 502-18  identified waste management problems, reevaluate its plan
 502-19  objectives and goals, and review and update its planning documents.
 502-20  (Sec. 361.020, Health and Safety Code.)
 502-21        Sec. 20.021.  Interagency Coordination Council.  (a)  The
 502-22  interagency coordination council shall coordinate the activities of
 502-23  its member agencies concerning the regulation of solid waste and
 502-24  solid waste management facilities and the enforcement of the
 502-25  applicable solid waste laws and rules.
 502-26        (b)  The council is composed of the executive head, or the
 502-27  executive head's designated representative, of the following
  503-1  agencies:
  503-2              (1)  the commission; and
  503-3              (2)  the Railroad Commission of Texas.
  503-4        (c)  The commission's representative is the council chairman.
  503-5        (d)  The council shall meet at least quarterly to review the
  503-6  solid waste regulatory and enforcement activities of the previous
  503-7  quarter and coordinate planned activities in the interest of
  503-8  efficiency and cooperation, including:
  503-9              (1)  the consideration of the use of waste exchange
 503-10  programs;
 503-11              (2)  the establishment of a clearinghouse for
 503-12  scientific and engineering information concerning hazardous waste
 503-13  management;
 503-14              (3)  the coordination of hazardous waste research and
 503-15  development activities;
 503-16              (4)  the coordination and development of consistent
 503-17  agency rules relevant to the regulation of hazardous waste
 503-18  activities;
 503-19              (5)  the evaluation of means to assist small quantity
 503-20  hazardous waste generators and affected communities in the
 503-21  effective and safe management and disposal of their regulated
 503-22  waste;
 503-23              (6)  the assessment of any preapplication public
 503-24  interactions with applicants to evaluate their effectiveness and to
 503-25  consider developing rules to incorporate those activities if
 503-26  appropriate;
 503-27              (7)  the consideration of the use of incentives to
  504-1  encourage waste minimization and reusing and recycling waste, and
  504-2  the use of resource recovery and detoxification equipment; and
  504-3              (8)  the evaluation of the feasibility of household
  504-4  hazardous waste collection and disposal programs.
  504-5        (e)  The chairman shall prepare a report summarizing each
  504-6  quarterly meeting.  The report shall be submitted for approval by a
  504-7  majority of agencies represented on the council.  The report is a
  504-8  public document.
  504-9        (f)  The council shall consult with and advise the pollution
 504-10  prevention council on all matters relating to pollution prevention.
 504-11        (g)  The council shall assist the commission in preparing
 504-12  strategic state solid waste management plans required by Section
 504-13  20.020.
 504-14        (h)  The council shall coordinate efforts to develop and
 504-15  update its member agency management information systems to improve
 504-16  access to high-level planning information.
 504-17        (i)  Not later than February 1 of each odd-numbered year, the
 504-18  council shall report to the legislature on:
 504-19              (1)  the status of its member agencies in meeting
 504-20  stated agency goals;
 504-21              (2)  documented efforts to implement the state's
 504-22  preferred waste management methods as stated in Sections 20.022 and
 504-23  20.023;
 504-24              (3)  local, regional, interstate, and international
 504-25  waste management planning concerns of interest to the state;
 504-26              (4)  the coordination of federal mandates with state
 504-27  waste management plans; and
  505-1              (5)  new waste management issues.
  505-2        (j)  The council may obtain assistance in preparing its
  505-3  reports from the staffs of its member agencies.  (Sec. 361.021,
  505-4  Health and Safety Code.)
  505-5        Sec. 20.022.  Public Policy Concerning Municipal Solid Waste
  505-6  and Sludge.  (a)  To protect the public health and environment, it
  505-7  is the state's goal, through source reduction, to eliminate the
  505-8  generation of municipal solid waste and municipal sludge to the
  505-9  maximum extent that is technologically and economically feasible.
 505-10  Therefore, it is the state's public policy that, in generating,
 505-11  treating, storing, and disposing of municipal solid waste or
 505-12  municipal sludge, the methods listed under Subsections (b) and (c)
 505-13  are preferred to the extent economically and technologically
 505-14  feasible and considering the appropriateness of the method to the
 505-15  type of solid waste material or sludge generated, treated, disposed
 505-16  of, or stored.
 505-17        (b)  For municipal solid waste, not including sludge, the
 505-18  following methods are preferred, in the order listed:
 505-19              (1)  source reduction and waste minimization;
 505-20              (2)  reuse or recycling of waste;
 505-21              (3)  treatment to destroy or reprocess waste to recover
 505-22  energy or other beneficial resources if the treatment does not
 505-23  threaten public health, safety, or the environment; or
 505-24              (4)  land disposal.
 505-25        (c)  For municipal sludge, the following methods are
 505-26  preferred, in the order listed:
 505-27              (1)  source reduction and minimization of sludge
  506-1  production and concentrations of heavy metals and other toxins in
  506-2  sludge;
  506-3              (2)  treatment of sludge to reduce pathogens and
  506-4  recover energy, produce beneficial by-products, or reduce the
  506-5  quantity of sludge;
  506-6              (3)  marketing and distribution of sludge and sludge
  506-7  products if the marketing and distribution do not threaten public
  506-8  health, safety, or the environment;
  506-9              (4)  applying sludge to land for beneficial use;
 506-10              (5)  land treatment; or
 506-11              (6)  landfilling.
 506-12        (d)  In adopting rules to implement public policy concerning
 506-13  municipal solid waste management, the commission shall consider the
 506-14  preference of municipal solid waste management methods under this
 506-15  section.  (Sec. 361.022, Health and Safety Code.)
 506-16        Sec. 20.023.  Public Policy Concerning Hazardous Waste.
 506-17  (a)  To protect the public health and environment, it is the
 506-18  state's goal, through source reduction, to eliminate the generation
 506-19  of hazardous waste to the maximum extent that is technologically
 506-20  and economically feasible.  Therefore, it is the state's public
 506-21  policy that, in generating, treating, storing, and disposing of
 506-22  hazardous waste, the following methods are preferred to the extent
 506-23  economically and technologically feasible, in the order listed:
 506-24              (1)  source reduction;
 506-25              (2)  reuse or recycling of waste, or both;
 506-26              (3)  treatment to destroy hazardous characteristics;
 506-27              (4)  treatment to reduce hazardous characteristics;
  507-1              (5)  underground injection; and
  507-2              (6)  land disposal.
  507-3        (b)  Under Subsection (a)(3), on-site destruction is
  507-4  preferred, but it shall be evaluated in the context of other
  507-5  relevant factors such as transportation hazard, distribution of
  507-6  risk, quality of destruction, operator capability, and site
  507-7  suitability.  (Sec. 361.023, Health and Safety Code.)
  507-8        Sec. 20.024.  Public Policy Concerning Adequate Capacity for
  507-9  Industrial and Hazardous Waste.  (a)  To protect the public health
 507-10  and environment, encourage economic development, and assure the
 507-11  continuation of the federal funding for abandoned facility response
 507-12  actions, it is the state public policy that adequate capacity
 507-13  should exist for the proper management of industrial and hazardous
 507-14  waste generated in this state.
 507-15        (b)  "Adequate capacity" is the capacity necessary to manage
 507-16  the industrial and hazardous waste that remains after application,
 507-17  to the maximum extent economically and technologically feasible, of
 507-18  waste reduction techniques.
 507-19        (c)  It is further the state's policy that, wherever
 507-20  feasible, the generation of hazardous waste is to be reduced or
 507-21  eliminated as expeditiously as possible.  (Sec. 361.0231, Health
 507-22  and Safety Code.)
 507-23        Sec. 20.025.  Assessment of Commercial Hazardous Waste
 507-24  Management Capacity.  (a)  Not later than January 1, 1992, the
 507-25  commission shall assess the need for commercial hazardous waste
 507-26  management capacity.  In making the assessment, the commission
 507-27  shall consider the need for various technologies for commercial
  508-1  waste disposal and shall evaluate the need for disposal capacity on
  508-2  a technology-by-technology basis.  At a minimum, the commission
  508-3  shall assess separately the need for metals recovery, solvent
  508-4  recovery, other recovery such as nonsolvent organic recovery and
  508-5  acid regeneration, incineration of liquids, incineration of sludge
  508-6  or solids, energy recovery, aqueous inorganic treatment, aqueous
  508-7  organic treatment, other treatment such as neutralization and gas
  508-8  incineration, sludge treatment, stabilization, land treatment,
  508-9  landfill, deep well injection, and other disposal such as ocean
 508-10  dumping and depositing wastes in salt mines.  The commission shall
 508-11  adopt rules based on the assessment.
 508-12        (b)  In evaluating need and drafting rules under this
 508-13  section, the commission shall consider:
 508-14              (1)  demand for commercial hazardous waste capacity in
 508-15  the state;
 508-16              (2)  availability of commercial hazardous waste
 508-17  capacity to small quantity generators;
 508-18              (3)  demand for noncommercial hazardous waste capacity
 508-19  in the state;
 508-20              (4)  demand for nonhazardous waste capacity in the
 508-21  state;
 508-22              (5)  permitted commercial hazardous waste capacity in
 508-23  the state;
 508-24              (6)  permitted commercial nonhazardous waste capacity
 508-25  in the state;
 508-26              (7)  anticipated waste reduction capability;
 508-27              (8)  potential increases in substances defined as
  509-1  hazardous waste;
  509-2              (9)  the preferences established by Section 20.023;
  509-3              (10)  the effect of any rules adopted under this
  509-4  section on the status of federal funds and any federally delegable
  509-5  programs;
  509-6              (11)  the risks associated with the transportation of
  509-7  hazardous waste to the facility;
  509-8              (12)  research on new technology; and
  509-9              (13)  any other relevant information.
 509-10        (c)  In developing this assessment, the commission shall
 509-11  consider the need to maintain an appropriate reserve capacity in
 509-12  the state to assure continuity of hazardous waste management and an
 509-13  effective enforcement program while encouraging waste reduction and
 509-14  recycling and recovery.  (Sec. 361.0232, Health and Safety Code, as
 509-15  added by Chapters 296 and 703, Acts 1991, 72nd Leg.)
 509-16        Sec. 20.026.  Hazardous Waste Generated in Foreign Country.
 509-17  (a)  Except as otherwise provided by this section, a person may not
 509-18  receive, transport, or cause to be transported into this state, for
 509-19  the purpose of treatment, storage, or disposal in this state,
 509-20  hazardous waste generated in a country other than the United
 509-21  States.
 509-22        (b)  This section may not be construed or applied in a manner
 509-23  that interferes with the authority of the federal government to
 509-24  regulate commerce with foreign nations and among the several states
 509-25  provided by Article I, Section 8, Clause 3, of the United States
 509-26  Constitution.
 509-27        (c)  This section does not apply to a person who transports
  510-1  or receives material from a country other than the United States
  510-2  for:
  510-3              (1)  recycling or reuse of the material; or
  510-4              (2)  use of the material as a feedstock or ingredient
  510-5  in the production of a new product.
  510-6        (d)  This section does not apply to waste transported or
  510-7  received for treatment, storage, or disposal at a hazardous waste
  510-8  management facility that is owned by the generator of the waste or
  510-9  by a parent, subsidiary, or affiliated corporation of the
 510-10  generator.
 510-11        (e)  This section does not apply to waste received by:
 510-12              (1)  a producer of the product or material from which
 510-13  the waste is generated; or
 510-14              (2)  a parent, subsidiary, or affiliated corporation of
 510-15  such producer.
 510-16        (f)  This section does not apply to waste generated in Mexico
 510-17  at an approved maquiladora facility to the extent that such waste:
 510-18              (1)  was generated as a result of the processing or
 510-19  fabrication of materials imported into Mexico from Texas on a
 510-20  temporary basis; and
 510-21              (2)  is required to be re-exported to the United States
 510-22  under Mexican law.  (Sec. 361.0232, Health and Safety Code, as
 510-23  added by Chapter 336, Acts 1991, 72nd Leg.)
 510-24        Sec. 20.027.  Assessment of Commercial Nonhazardous Solid
 510-25  Waste Disposal Capacity.  (a)  Not later than March 1, 1996, the
 510-26  commission  shall assess the need for commercial nonhazardous solid
 510-27  waste disposal capacity in the state.  In making the assessment,
  511-1  the commission shall consider the need for various technologies for
  511-2  commercial nonhazardous waste disposal and shall evaluate the need
  511-3  for disposal capacity on a technology-by-technology basis.  The
  511-4  commission shall adopt rules based on the assessment.
  511-5        (b)  In evaluating need and drafting rules under this
  511-6  section, the commission shall consider:
  511-7              (1)  demand for nonhazardous waste capacity in the
  511-8  state;
  511-9              (2)  permitted commercial hazardous waste capacity in
 511-10  the state;
 511-11              (3)  permitted commercial nonhazardous waste capacity
 511-12  in the state;
 511-13              (4)  anticipated waste reduction capability;
 511-14              (5)  potential increases in substances defined as
 511-15  hazardous waste;
 511-16              (6)  the preferences established by Section 20.022;
 511-17              (7)  the effect of any rules adopted under this section
 511-18  on the status of federal funds and any federally delegable
 511-19  programs;
 511-20              (8)  research on new technology; and
 511-21              (9)  any other relevant information.
 511-22        (c)  The commission shall also consider:
 511-23              (1)  the continued viability of industrial solid waste
 511-24  management in municipal solid waste facilities, under Section
 511-25  20.019;
 511-26              (2)  the geographic location of all commercial disposal
 511-27  facilities relative to the location of industrial solid waste
  512-1  generators; and
  512-2              (3)  the risks associated with the transportation of
  512-3  industrial solid waste to the facility.  (Sec. 361.0233, Health and
  512-4  Safety Code.)
  512-5        Sec. 20.028.  Rules; Update of Rules and Assessments.
  512-6  (a)  To expedite the consideration of permits for technologies that
  512-7  an assessment prepared under Section 20.025 or 20.027 determines to
  512-8  be most needed, the rules adopted by the commission shall provide
  512-9  for a permitting process that encourages the development of new and
 512-10  innovative disposal technologies, grants preferences considering
 512-11  the hierarchies established by Sections 20.022 and 20.023,
 512-12  emphasizes waste reduction efforts, and encourages applicants for
 512-13  permits for hazardous waste management facilities to include
 512-14  recycling and recovery components where appropriate.
 512-15        (b)  The commission shall update the assessments and related
 512-16  rules at least every two years.  In preparing an update of the
 512-17  assessment, the commission shall consider source reduction and
 512-18  waste minimization plans and reports submitted under Subchapter A,
 512-19  Chapter 52.  (Sec. 361.0234, Health and Safety Code.)
 512-20        Sec. 20.029.  Rules and Standards.  (a)  The commission may
 512-21  adopt rules consistent with this chapter and establish minimum
 512-22  standards of operation for the management and control of the solid
 512-23  waste under this chapter.
 512-24        (b)  In developing rules concerning hazardous waste, the
 512-25  commission shall consult with the State Soil and Water Conservation
 512-26  Board, the Bureau of Economic Geology of The University of Texas at
 512-27  Austin, and other appropriate state sources.
  513-1        (c)  The minimum standards set by the commission for on-site
  513-2  storage of hazardous waste must be at least the minimum standards
  513-3  set by the manufacturer of the chemical.
  513-4        (d)  Rules adopted by the commission under Section 20.041 and
  513-5  Sections 20.097-20.109 for solid waste facilities may differ
  513-6  according to the type or hazard of hazardous waste managed and the
  513-7  type of waste management method used.  (Sec. 361.024, Health and
  513-8  Safety Code.)
  513-9        Sec. 20.030.  Exempt Activities.  (a)  The commission and the
 513-10  Railroad Commission of Texas shall jointly prepare an exclusive
 513-11  list of activities that are associated with oil and gas
 513-12  exploration, development, and production and are therefore exempt
 513-13  from regulation under this chapter.
 513-14        (b)  The list shall be adopted by rule and amended as
 513-15  necessary.  (Sec. 361.025, Health and Safety Code.)
 513-16        Sec. 20.031.  Assistance Provided by Department and
 513-17  Commission.  (a)  The commission may:
 513-18              (1)  provide educational, advisory, and technical
 513-19  services concerning solid waste management to other state agencies,
 513-20  regional planning agencies, local governments, special districts,
 513-21  institutions, and individuals; and
 513-22              (2)  assist other state agencies, regional planning
 513-23  agencies, local governments, special districts, and institutions in
 513-24  acquiring federal grants for:
 513-25                    (A)  the development of solid waste facilities
 513-26  and management programs; and
 513-27                    (B)  research to improve solid waste management.
  514-1        (b)  The commission may engage in the programs and activities
  514-2  under this section only as the participation by it concerns the
  514-3  management and control of the solid waste under its jurisdiction.
  514-4  (Sec. 361.026, Health and Safety Code.)
  514-5        Sec. 20.032.  Training of Solid Waste Technicians.  (a)  The
  514-6  commission may:
  514-7              (1)  develop a program to train solid waste technicians
  514-8  to improve the competency of those technicians; and
  514-9              (2)  issue letters of competency.
 514-10        (b)  The owner or operator of a solid waste facility is
 514-11  encouraged to employ as site manager a solid waste technician
 514-12  holding a letter of competency.
 514-13        (c)  The commission may:
 514-14              (1)  prescribe standards of training required for the
 514-15  program;
 514-16              (2)  determine the duration of the letter of
 514-17  competency;
 514-18              (3)  award one or more categories of letters of
 514-19  competency with each category reflecting a different degree of
 514-20  training or skill;
 514-21              (4)  require a reasonable, nonrefundable fee, in an
 514-22  amount determined from time to time by the agency, to be paid by
 514-23  participants, deposited to the credit of the general revenue fund,
 514-24  and used to administer the program;
 514-25              (5)  extend or renew letters of competency issued by
 514-26  the commission; and
 514-27              (6)  withdraw a letter of competency for good cause,
  515-1  which may include a violation of this chapter or a rule concerning
  515-2  the technician's duties and responsibilities.  (Sec. 361.027,
  515-3  Health and Safety Code.)
  515-4        Sec. 20.033.  Industrial Solid and Hazardous Waste Materials
  515-5  Exchange.  (a)  The commission shall establish an industrial solid
  515-6  and hazardous waste materials exchange that provides for the
  515-7  exchange, between interested persons, of information concerning:
  515-8              (1)  particular quantities of industrial solid or
  515-9  hazardous waste available in this state for recovery;
 515-10              (2)  persons interested in acquiring certain types of
 515-11  industrial solid or hazardous waste for purposes of recovery; and
 515-12              (3)  methods for the treatment and recovery of
 515-13  industrial solid or hazardous waste.
 515-14        (b)  The industrial solid and hazardous waste materials
 515-15  exchange may be operated under one or more reciprocity agreements
 515-16  providing for the exchange of information described by Subsection
 515-17  (a) for similar information from a program operated in another
 515-18  state.
 515-19        (c)  The commission may contract for a private person or
 515-20  public entity to establish or operate the industrial solid and
 515-21  hazardous waste materials exchange.
 515-22        (d)  The commission may prescribe rules concerning the
 515-23  establishment and operation of the industrial solid and hazardous
 515-24  waste exchange, including the setting of a necessary subscription
 515-25  fee to offset the cost of participation in the program.
 515-26        (e)  The commission may seek grants and contract support from
 515-27  federal and other sources to the extent possible and may accept
  516-1  gifts to support its purposes and programs.  (Sec. 361.028, Health
  516-2  and Safety Code.)
  516-3        Sec. 20.034.  Collection and Disposal of Household Materials
  516-4  That could be Classified as Hazardous Waste.  (a)  The commission
  516-5  shall provide by rule for interested persons to engage in
  516-6  activities that involve the collection and disposal of household
  516-7  materials that could be classified as hazardous waste.
  516-8        (b)  The rules must specify the necessary requirements
  516-9  concerning the training of persons involved in the collection and
 516-10  disposal of those household materials.
 516-11        (c)  A person is not liable for damages as a result of any
 516-12  act or omission in the course of advertising, promoting, or
 516-13  distributing educational materials concerning the collection or
 516-14  disposal of those household materials in accordance with the rules.
 516-15  This subsection does not preclude liability for damages as a result
 516-16  of gross negligence of or intentional misconduct by the person.
 516-17  (Sec. 361.029, Health and Safety Code.)
 516-18        Sec. 20.035.  Federal Funds.  The commission may individually
 516-19  or jointly accept funds from the federal government for purposes
 516-20  concerning solid waste management and spend money received from the
 516-21  federal government for those purposes in the manner prescribed by
 516-22  law and in accordance with agreements as are necessary and
 516-23  appropriate between the federal government and the commission.
 516-24  (Sec. 361.030, Health and Safety Code.)
 516-25        Sec. 20.036.  Financial Assistance to Local Governments.
 516-26  (a)  The commission may administer and spend state funds provided
 516-27  by legislative appropriations, or otherwise, to make grants to
  517-1  local governments for:
  517-2              (1)  solid waste planning;
  517-3              (2)  installation of solid waste facilities; and
  517-4              (3)  administration of solid waste programs.
  517-5        (b)  The amount of financial assistance granted by the state
  517-6  through the commission to a local government under this chapter
  517-7  must be matched by local government funds at least in equal
  517-8  amounts.  (Sec. 361.031, Health and Safety Code.)
  517-9        Sec. 20.037.  Inspections; Right of Entry.  (a)  The
 517-10  commission is authorized to inspect and approve solid waste
 517-11  facilities used or proposed to be used to store, process, or
 517-12  dispose of solid waste.
 517-13        (b)  Agents or employees of the commission or local
 517-14  governments have the right to enter at any reasonable time public
 517-15  or private property in the governmental entity's jurisdiction,
 517-16  including a municipality's extraterritorial jurisdiction, to
 517-17  inspect and investigate conditions concerning solid waste
 517-18  management and control.
 517-19        (c)  Agents or employees may not enter private property with
 517-20  management in residence without notifying the management, or the
 517-21  person in charge at the time, of their presence and presenting
 517-22  proper credentials.
 517-23        (d)  Agents or employees inspecting an establishment shall
 517-24  observe the establishment's rules on safety, internal security, and
 517-25  fire protection.  (Sec. 361.032, Health and Safety Code.)
 517-26        Sec. 20.038.  Inspections Required by Environmental
 517-27  Protection Agency.  (a)  The commission shall inspect regulated
  518-1  hazardous waste management and disposal facilities periodically as
  518-2  required by the United States Environmental Protection Agency under
  518-3  the federal Solid Waste Disposal Act, as amended by the Resource
  518-4  Conservation and Recovery Act of 1976, as amended (42 U.S.C.
  518-5  Section 6901 et seq.).
  518-6        (b)  In supplementing the inspections under Subsection (a),
  518-7  the commission shall give priority to inspecting and reinspecting
  518-8  those facilities, including generators, considered most likely to
  518-9  be in noncompliance or most likely to pose an environmental or
 518-10  public health threat, regardless of whether the facilities are
 518-11  characterized as major or non-major facilities.
 518-12        (c)  The commission may randomly perform less comprehensive
 518-13  checks of facilities to supplement the more comprehensive
 518-14  inspections required by the United States Environmental Protection
 518-15  Agency.  (Sec. 361.033, Health and Safety Code.)
 518-16        Sec. 20.039.  Reports.  (a)  The commission shall submit a
 518-17  report to the presiding officers of the legislature and the
 518-18  governor not later than January 1 of each odd-numbered year.  The
 518-19  report must include:
 518-20              (1)  a summary of a performance report of the imposed
 518-21  industrial solid waste and hazardous waste fees authorized under
 518-22  Sections 2.175(f)-(u) and related activities to determine the
 518-23  appropriateness of the fee structures;
 518-24              (2)  an evaluation of progress made in accomplishing
 518-25  the state's public policy concerning the preference of waste
 518-26  management methods under Section 20.023;
 518-27              (3)  projections of the volume of waste by type of
  519-1  waste, disposition of waste, and remaining capacity or capacity
  519-2  used for the treatment and disposal of the waste; and
  519-3              (4)  projections of the availability of adequate
  519-4  capacity in this state for the management of all types of hazardous
  519-5  waste generated within the state and a report of the amounts,
  519-6  types, and sources of hazardous waste imported into and exported
  519-7  from the state in the previous year.
  519-8        (b)  To develop the reports required under Subsection (a),
  519-9  the commission shall adopt rules requiring a person who generates,
 519-10  stores, treats, or disposes of industrial solid waste or hazardous
 519-11  waste to respond to a periodic survey detailing projections of
 519-12  waste volumes generated and handled, assumptions used as the basis
 519-13  for these projections, disposition, and remaining capacity,
 519-14  concerning a surveyed facility owned or operated by the person.
 519-15  (Sec. 361.034, Health and Safety Code.)
 519-16        Sec. 20.040.  Records and Reports; Disposal of Hazardous
 519-17  Waste.  (a)  The commission by rule shall require operators of
 519-18  solid waste facilities for disposal of hazardous waste to maintain
 519-19  records and to submit to the commission reports necessary for the
 519-20  commission to determine the amount of hazardous waste disposal.
 519-21        (b)  The commission by rule shall establish the date on which
 519-22  a report required by this section is to be submitted.
 519-23  (Sec. 361.035, Health and Safety Code.)
 519-24        Sec. 20.041.  Records and Manifests Required; Class I
 519-25  Industrial Solid Waste or Hazardous Waste.  The commission by rule
 519-26  shall require a person who generates, transports, processes,
 519-27  stores, or disposes of Class I industrial solid waste or hazardous
  520-1  waste to provide recordkeeping and use a manifest or other
  520-2  appropriate system to assure that the waste is transported to a
  520-3  processing, storage, or disposal facility permitted or otherwise
  520-4  authorized for that purpose.  (Sec. 361.036, Health and Safety
  520-5  Code.)
  520-6        Sec. 20.042.  Annual Inspection Report.  (a)  In January of
  520-7  each year, the commission shall publish an annual inspection report
  520-8  that:
  520-9              (1)  summarizes the commission's inspection strategy
 520-10  and the results of inspections conducted during the previous fiscal
 520-11  year; and
 520-12              (2)  lists each hazardous waste treatment, storage, and
 520-13  disposal facility not inspected.
 520-14        (b)  The report must identify each hazardous waste facility
 520-15  inspected and include a list of:
 520-16              (1)  each facility that is in compliance with hazardous
 520-17  waste regulations, including each facility with an exemplary record
 520-18  of compliance over the preceding three years;
 520-19              (2)  each facility that has only minor or clerical
 520-20  violations; and
 520-21              (3)  each facility that has substantive, nonclerical
 520-22  violations, including each facility that has been adjudicated
 520-23  during the preceding three years to have committed substantive,
 520-24  nonclerical violations resulting in an actual release of hazardous
 520-25  waste that presented an imminent and substantial endangerment to
 520-26  the public health and safety or the environment.
 520-27        (c)  The report must identify the substantive, nonclerical
  521-1  violations and either summarize corrective actions or describe the
  521-2  status of unresolved violations.
  521-3        (d)  The report shall be submitted to the governor,
  521-4  lieutenant governor, and speaker of the house.  The commission
  521-5  shall provide notice of the report's availability by publishing
  521-6  notice in the Texas Register.  (Sec. 361.038, Health and Safety
  521-7  Code.)
  521-8        Sec. 20.043.  Construction of Other Laws.  Except as
  521-9  specifically provided by this chapter, this chapter does not
 521-10  diminish or limit the authority of the commission  or a local
 521-11  government in performing the powers, functions, and duties vested
 521-12  in those governmental entities by other law.  (Sec. 361.039, Health
 521-13  and Safety Code.)
 521-14            (Sections 20.044-20.060 reserved for expansion)
 521-15                        SUBCHAPTER C.  PERMITS
 521-16        Sec. 20.061.  Permits; Solid Waste Facility.  Except as
 521-17  provided by Section 20.090 with respect to certain industrial solid
 521-18  waste, the commission may require and issue permits authorizing and
 521-19  governing the construction, operation, and maintenance of the solid
 521-20  waste facilities used to store, process, or dispose of solid waste.
 521-21  (Sec. 361.061, Health and Safety Code.)
 521-22        Sec. 20.062.  Compatibility with County's Plan.  (a)  Before
 521-23  the commission issues a permit to construct, operate, or maintain a
 521-24  solid waste facility to process, store, or dispose of solid waste
 521-25  in a county that has a local solid waste management plan approved
 521-26  under Chapter 22 (Comprehensive Municipal Solid Waste Management,
 521-27  Resource Recovery, and Conservation Act), the commission must
  522-1  consider whether the solid waste facility and the proposed site for
  522-2  the facility are compatible with the county's approved local solid
  522-3  waste management plan.
  522-4        (b)  Until a local solid waste management plan is approved by
  522-5  the commission and adopted by rule, the commission may not consider
  522-6  the plan and its contents in the review of an application for a
  522-7  solid waste facility permit.  (Sec. 361.062, Health and Safety
  522-8  Code.)
  522-9        Sec. 20.063.  Preapplication Local Review Committee Process.
 522-10  (a)  The commission shall encourage applicants for solid waste
 522-11  facilities or for hazardous waste management facilities to enter
 522-12  into agreements with affected persons to resolve issues of concern.
 522-13  During this process, persons are encouraged to identify issues of
 522-14  concern and work with the applicant to resolve those issues.
 522-15        (b)  The agreement shall be made through participation in a
 522-16  local review committee process that includes a good faith effort to
 522-17  identify issues of concern, describe them to the applicant, and
 522-18  attempt to resolve those issues before the hearing on the permit
 522-19  application begins. A person is not required to be a local review
 522-20  committee member to participate in a local review committee
 522-21  process.
 522-22        (c)  If an applicant decides to participate in a local review
 522-23  committee process, the applicant must file with the commission a
 522-24  notice of intent to file an application, setting forth the proposed
 522-25  location and type of hazardous waste management facility.  A copy
 522-26  of the notice shall be delivered to the county judge of the county
 522-27  in which the facility is to be located.  In addition, if the
  523-1  proposed facility is to be located in a municipality or the
  523-2  extraterritorial jurisdiction of a municipality, a copy of the
  523-3  notice shall be delivered to the mayor of the municipality.  The
  523-4  filing of the notice with the commission initiates the
  523-5  preapplication review process.
  523-6        (d)  Not later than the 15th day after the date the notice of
  523-7  intent is filed under Subsection (c), the local review committee
  523-8  shall be appointed.  The commission shall adopt rules concerning
  523-9  the composition and appointment of a local review committee.
 523-10        (e)  The local review committee shall meet not later than the
 523-11  21st day after the date the notice of intent is filed under
 523-12  Subsection (c).  The preapplication review process must continue
 523-13  for 90 days unless the process is shortened or lengthened by
 523-14  agreement between the applicant and the local review committee.
 523-15        (f)  The commission, as appropriate, may award to a person,
 523-16  other than the applicant, who has participated in the local review
 523-17  committee process under this section concerning an application for
 523-18  a hazardous waste management facility all or a part of the person's
 523-19  reasonable costs for technical studies and reports and expert
 523-20  witnesses associated with the presentation of evidence at the
 523-21  public hearing concerning issues that are raised by the person in
 523-22  the local review committee process and that are unresolved at the
 523-23  beginning of the hearing on the permit application.  The total
 523-24  amount of awards granted to all persons under this subsection
 523-25  concerning an application may not exceed $25,000.   In determining
 523-26  the appropriateness of the award, the commission shall consider
 523-27  whether:
  524-1              (1)  the evidence or analysis provided by the studies,
  524-2  reports, and witnesses is significant to the evaluation of the
  524-3  application;
  524-4              (2)  the evidence or analysis would otherwise not have
  524-5  been provided in the proceeding; and
  524-6              (3)  the local review committee was established in
  524-7  accordance with commission rules.
  524-8        (g)  Except as provided by Subsection (k), if an applicant
  524-9  has not entered into a local review committee process, the
 524-10  commission, in determining the appropriateness of an award of costs
 524-11  under Subsection (f), shall waive any requirement that the person
 524-12  affected has participated in a local review committee process.
 524-13        (h)  Except as provided by Subsection (k), costs awarded by
 524-14  the commission under Subsection (f) are assessed against the
 524-15  applicant.  Rules shall be adopted for the award of those costs.
 524-16  Judicial review of an award of costs is under the substantial
 524-17  evidence rule as provided by the Administrative Procedure and Texas
 524-18  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
 524-19        (i)  A local review committee shall:
 524-20              (1)  interact with the applicant in a structured manner
 524-21  during the preapplication review stage of the permitting process
 524-22  and, if necessary, during the technical review stage of the
 524-23  permitting process to raise and attempt to resolve both technical
 524-24  and nontechnical issues of concern; and
 524-25              (2)  produce a fact-finding report documenting resolved
 524-26  and unresolved issues and unanswered questions.
 524-27        (j)  The applicant must submit the report required under
  525-1  Subsection (i)(2) to the commission with its permit application.
  525-2        (k)  If an applicant, after reasonable efforts to determine
  525-3  if local opposition exists to its proposed facility, including
  525-4  discussing the proposed facility with the county judge and other
  525-5  elected officials, does not enter into a local review committee
  525-6  process because of no apparent opposition or because a local review
  525-7  committee is not established despite the applicant's good faith
  525-8  efforts, costs may not be assessed against the applicant under
  525-9  Subsection (f).
 525-10        (l)  This section does not apply to:
 525-11              (1)  a solid waste or hazardous waste management
 525-12  facility for which an application was filed, or that was authorized
 525-13  to operate, as of September 1, 1985;
 525-14              (2)  amendments to applications that were pending on
 525-15  September 1, 1987; or
 525-16              (3)  changes in waste storage or processing operations
 525-17  at existing sites at which waste management activities were being
 525-18  conducted on September 1, 1987.  (Sec. 361.063, Health and Safety
 525-19  Code.)
 525-20        Sec. 20.064.  Preapplication Meeting.  (a)  If requested by a
 525-21  person who intends to file a permit application and with approval
 525-22  of the commission, the commission shall provide the person an
 525-23  opportunity to meet jointly with one or more staff members of the
 525-24  commission to discuss the permit application that the person
 525-25  intends to file.
 525-26        (b)  The person must make the request in writing to the
 525-27  commission that the person intends to file, and the commission
  526-1  shall coordinate a meeting held under this section.
  526-2        (c)  A meeting under this section must be held before the
  526-3  person files the permit application with the commission.
  526-4  (Sec. 361.0635, Health and Safety Code.)
  526-5        Sec. 20.065.  Permit Application Form and Procedures.
  526-6  (a)  The commission, in exercising the power to issue permits for
  526-7  solid waste facilities under this subchapter, to the extent not
  526-8  otherwise provided by this subchapter, shall prescribe:
  526-9              (1)  the form of and reasonable requirements for the
 526-10  permit application; and
 526-11              (2)  the procedures for processing the application.
 526-12        (b)  The commission shall provide a thorough and timely
 526-13  review of and a timely issuance or denial of any permit application
 526-14  for a solid waste management facility.  (Sec. 361.064, Health and
 526-15  Safety Code.)
 526-16        Sec. 20.066.  Notice to State Senator and Representative.  On
 526-17  receiving an application for, or notice of intent to file an
 526-18  application for, a permit to construct, operate, or maintain a
 526-19  facility to store, process, or dispose of solid waste or hazardous
 526-20  waste, the commission shall send notice of the application or the
 526-21  notice of intent to the state senator and representative who
 526-22  represent the area in which the facility is or will be located.
 526-23  (Sec. 361.0641, Health and Safety Code.)
 526-24        Sec. 20.067.  Submission of Administratively Complete Permit
 526-25  Application.  (a)  An applicant must submit any portion of an
 526-26  application that the commission determines is necessary to make the
 526-27  application administratively complete not later than the 270th day
  527-1  after the applicant receives notice from the commission that the
  527-2  additional information or material is needed.
  527-3        (b)  If an applicant does not submit an administratively
  527-4  complete application as required by this section, the application
  527-5  is considered withdrawn, unless there are extenuating
  527-6  circumstances.  (Sec. 361.066, Health and Safety Code.)
  527-7        Sec. 20.068.  Notice of Intent to Obtain Municipal Solid
  527-8  Waste Permit.  (a)  A person who applies for a municipal solid
  527-9  waste permit shall publish notice of intent to obtain a permit
 527-10  under this chapter at least once in a newspaper of the largest
 527-11  general circulation that is published in the county in which the
 527-12  facility is located or proposed to be located.
 527-13        (b)  Notice must include:
 527-14              (1)  a description of the location or proposed location
 527-15  of the facility;
 527-16              (2)  a statement that a person who may be affected by
 527-17  the facility or proposed facility is entitled to request a hearing
 527-18  from the commission;
 527-19              (3)  the manner in which the commission may be
 527-20  contacted for further information; and
 527-21              (4)  any other information that the commission by rule
 527-22  requires.
 527-23        (c)  If a newspaper is not published in the county, the
 527-24  notice must be published in a newspaper of general circulation in
 527-25  the county in which the facility is located or proposed to be
 527-26  located and in a newspaper of circulation in the immediate vicinity
 527-27  in which the facility is located or proposed to be located as
  528-1  defined by department rule.
  528-2        (d)  In addition, the commission shall publish notice in the
  528-3  Texas Register.  (Sec. 361.0665, Health and Safety Code.)
  528-4        Sec. 20.069.  Review of Permit Application by Other
  528-5  Governmental Entities.  (a)  If the commission determines that a
  528-6  permit application submitted to it is administratively complete, it
  528-7  shall mail a copy of the application or a summary of its contents
  528-8  to:
  528-9              (1)  the mayor and health authority of a municipality
 528-10  in whose territorial limits or extraterritorial jurisdiction the
 528-11  solid waste facility is located; and
 528-12              (2)  the county judge and the health authority of the
 528-13  county in which the facility is located.
 528-14        (b)  A governmental entity to whom the information is mailed
 528-15  shall have a reasonable time, as prescribed by the commission,  to
 528-16  present comments and recommendations on the permit application
 528-17  before the commission acts on the application.  (Sec. 361.067,
 528-18  Health and Safety Code.)
 528-19        Sec. 20.070.  When Application is Administratively Complete.
 528-20  A permit application is administratively complete when:
 528-21              (1)  a complete permit application form and the report
 528-22  and fees required to be submitted with a permit application have
 528-23  been submitted to the commission; and
 528-24              (2)  the permit application is ready for technical
 528-25  review in accordance with the rules of the commission.
 528-26  (Sec. 361.068, Health and Safety Code.)
 528-27        Sec. 20.071.  Determination of Land Use Compatibility.  The
  529-1  commission in its discretion may, in processing a permit
  529-2  application, make a separate determination on the question of land
  529-3  use compatibility, and, if the site location is acceptable, may at
  529-4  another time consider other technical matters concerning the
  529-5  application.  A public hearing may be held for each determination
  529-6  in accordance with Section 20.088.  (Sec. 361.069, Health and
  529-7  Safety Code.)
  529-8        Sec. 20.072.  Maintenance of State Program Authorization
  529-9  Under Federal Law.  This subchapter does not abridge, modify, or
 529-10  restrict the authority of the commission to adopt rules under
 529-11  Subchapter B and this subchapter, to issue permits and to enforce
 529-12  the terms and conditions of the permits, concerning hazardous waste
 529-13  management to the extent necessary for the commission to receive
 529-14  and maintain state program authorization under Section 3006 of the
 529-15  federal Solid Waste Disposal Act, as amended by the Resource
 529-16  Conservation and Recovery Act of 1976, as amended (42 U.S.C.
 529-17  Section 6901 et seq.).  (Sec. 361.078, Health and Safety Code.)
 529-18        Sec. 20.073.  Notice Concerning Receipt of Permit
 529-19  Application; Hearing Procedures.  (a)  Except as provided by
 529-20  Sections 20.075(b) and 20.076(c), the commission by rule shall
 529-21  establish procedures for public notice and a public hearing under
 529-22  Section 20.075 or 20.076.
 529-23        (b)  The hearings shall be conducted in accordance with the
 529-24  hearing rules and the applicable provisions of the Administrative
 529-25  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
 529-26  Civil Statutes).
 529-27        (c)  To improve the timeliness of notice to the public of a
  530-1  public hearing under Section 20.075 or 20.076, public notice of
  530-2  receipt of the permit application shall be provided at the time a
  530-3  permit application is submitted to the commission.  (Sec. 361.079,
  530-4  Health and Safety Code.)
  530-5        Sec. 20.074.  Public Meeting and Notice Requirement.
  530-6  (a)  Notwithstanding other law, the commission shall hold a public
  530-7  meeting on an application for a new hazardous waste management
  530-8  facility in the county in which the proposed hazardous waste
  530-9  management facility is to be located.  The commission, on request
 530-10  of a person affected or as otherwise required by commission rule,
 530-11  shall hold a public meeting on an application for a Class 3
 530-12  modification or a major amendment to an existing facility's
 530-13  hazardous waste permit.
 530-14        (b)  A public meeting held as part of a local review process
 530-15  under Section 20.063 meets the requirement of Subsection (a) if
 530-16  notice is provided as required by this section.
 530-17        (c)  A public meeting under this section is not a contested
 530-18  case hearing under the Administrative Procedure and Texas Register
 530-19  Act (Article 6252-13a, Vernon's Texas Civil Statutes).
 530-20        (d)  If a meeting is required under Subsection (a), not less
 530-21  than once each week during the three weeks preceding a public
 530-22  meeting, the applicant shall publish notice of the meeting in the
 530-23  newspaper of the largest general circulation that is published in
 530-24  the county in which the proposed facility is to be located or, if
 530-25  no newspaper is published in the county, in a newspaper of general
 530-26  circulation in the county.  The applicant shall provide the
 530-27  commission an affidavit certifying that the notice was given as
  531-1  required by this section.  Acceptance of the affidavit creates a
  531-2  rebuttable presumption that the applicant has complied with this
  531-3  section.
  531-4        (e)  The published notice may not be smaller than 96.8 square
  531-5  centimeters or 15 square inches with the shortest dimension at
  531-6  least 7.6 centimeters or three inches and shall contain, at a
  531-7  minimum, the following information:
  531-8              (1)  the permit application number;
  531-9              (2)  the applicant's name;
 531-10              (3)  the proposed location of the facility; and
 531-11              (4)  the location and availability of copies of the
 531-12  permit application.
 531-13        (f)  The applicant shall pay the cost of notice required to
 531-14  be provided under this section.  The commission by rule may
 531-15  establish procedures for payment of those costs.  (Sec. 361.0791,
 531-16  Health and Safety Code.)
 531-17        Sec. 20.075.  Hearing Concerning Permit Application for
 531-18  Hazardous Industrial Solid Waste Facility.  (a)  A hearing on an
 531-19  application for a permit concerning a hazardous industrial solid
 531-20  waste facility must include one session held in the county in which
 531-21  the facility is located.
 531-22        (b)  Notice for a hearing session held under this section
 531-23  shall be provided in accordance with Section 20.074.
 531-24  (Sec. 361.080, Health and Safety Code.)
 531-25        Sec. 20.076.  Notice of Hearing Concerning Application for a
 531-26  Solid Waste Facility.  (a)  The commission shall require the
 531-27  applicant to mail notice to each residential or business address
  532-1  located within one-half mile of a new solid waste management
  532-2  facility and to each owner of real property located within one-half
  532-3  mile of a new solid waste management facility listed in the real
  532-4  property appraisal records of the appraisal district in which the
  532-5  solid waste management facility is sought to be permitted as of the
  532-6  date the commission determines the permit application is
  532-7  administratively complete.  The notice must be sent by mail and
  532-8  must be deposited with the United States postal service not more
  532-9  than 45 days or less than 30 days before the date of the hearing.
 532-10        (b)  The applicant must certify to the commission that the
 532-11  mailings were deposited as required by Subsection (a). Acceptance
 532-12  of the certification creates a rebuttable presumption that the
 532-13  applicant has complied with this section.
 532-14        (c)  In addition to the requirements of Subsection (a), the
 532-15  commission shall hold a public meeting and the applicant shall give
 532-16  notice concerning the application for a permit for a new hazardous
 532-17  waste management facility as provided by Section 20.074.
 532-18  (Sec. 361.081, Health and Safety Code.)
 532-19        Sec. 20.077.  Application for Hazardous Waste Permit; Notice
 532-20  and Hearing.  (a)  A person may not process, store, or dispose of
 532-21  hazardous waste without having first obtained a hazardous waste
 532-22  permit issued by the commission.
 532-23        (b)  On its own motion or the request of a person affected,
 532-24  the commission may hold a public hearing on an application for a
 532-25  hazardous waste permit in accordance with this subchapter.
 532-26        (c)  The commission by rule shall establish procedures for
 532-27  public notice and public hearing.  At a minimum, the rules shall
  533-1  include the public notice requirements set forth in Section 20.076.
  533-2        (d)  In addition to the hearing held under this section, the
  533-3  commission shall hold a public meeting and the applicant shall give
  533-4  notice as provided by Section 20.074.
  533-5        (e)  The commission may include any requirement in the permit
  533-6  for remedial action by the applicant that the commission determines
  533-7  is necessary to protect the public health and safety and the
  533-8  environment.
  533-9        (f)  An owner or operator of a solid waste management
 533-10  facility that is in existence on the effective date of a statutory
 533-11  or regulatory change that subjects the owner or operator to a
 533-12  requirement to obtain a hazardous waste permit who has filed a
 533-13  hazardous waste permit application in accordance with commission
 533-14  rules may continue to process, store, or dispose of hazardous waste
 533-15  until the commission approves or denies the application, except as
 533-16  provided by Section 20.111 or, if the owner or operator becomes
 533-17  subject to a requirement to obtain a hazardous waste permit after
 533-18  November 8, 1984, except as provided by United States Environmental
 533-19  Protection Agency or commission rules relative to termination of
 533-20  interim status.
 533-21        (g)  On request under this section by a person affected for a
 533-22  hearing on the permit application, the applicant for a permit for a
 533-23  new hazardous waste management facility shall furnish a bond or
 533-24  other financial assurance authorized by the commission to guarantee
 533-25  payment of the costs of a person affected who provides information
 533-26  to the commission on the question of the issuance of the permit and
 533-27  who is entitled to those costs under an order made as provided by
  534-1  Section 20.081. For applications involving commercial hazardous
  534-2  waste management facilities, the bond or other financial assurance
  534-3  must be in the amount of $100,000.  For applications that do not
  534-4  involve commercial hazardous waste management facilities, the bond
  534-5  or other financial assurance must be in the amount of $20,000.
  534-6  (Sec. 361.082, Health and Safety Code.)
  534-7        Sec. 20.078.  Evidence of Notice of Hearing.  (a)  Before the
  534-8  commission may hear testimony in a contested case, evidence must be
  534-9  placed in the record to show that proper notice of the hearing was
 534-10  given to affected persons.
 534-11        (b)  If mailed notice to an affected person is required, the
 534-12  commission or other party to the hearing shall place evidence in
 534-13  the record that notice was mailed to the affected person's address
 534-14  as shown by the appropriate appraisal district real property
 534-15  appraisal records at the time of the mailing.
 534-16        (c)  The affidavit of the commission employee responsible for
 534-17  the mailing of the notice, attesting that the notice was mailed to
 534-18  the address shown by the appraisal district real property appraisal
 534-19  records at the time of mailing, is prima facie evidence of proper
 534-20  mailing.  (Sec. 361.083, Health and Safety Code.)
 534-21        Sec. 20.079.  Ex Parte Contacts Prohibited.  (a)  Unless
 534-22  required for the disposition of ex parte matters authorized by law,
 534-23  a hearings examiner of the commission may not communicate, directly
 534-24  or indirectly, with any employee of the commission, any
 534-25  commissioner, or any party to a hearing conducted by the commission
 534-26  in connection with any issue of fact or law pertaining to a
 534-27  contested case in which the commission or party is involved.
  535-1        (b)  An employee of the commission, a commissioner, or a
  535-2  party to a hearing conducted by the commission may not attempt to
  535-3  influence the finding of facts or the application of law or rules
  535-4  by a hearings examiner of the commission except by proper evidence,
  535-5  pleadings, and legal argument with notice and opportunity for all
  535-6  parties to participate.
  535-7        (c)  If a prohibited contact is made, the hearings examiner
  535-8  shall notify all parties with a summary of that contact and notice
  535-9  of their opportunity to participate and shall give all parties an
 535-10  opportunity to respond.  (Sec. 361.0831, Health and Safety Code.)
 535-11        Sec. 20.080.  Proposal for Decision; Certified Issues;
 535-12  Reversal by Commission.  (a)  After hearing evidence and receiving
 535-13  legal arguments, a hearings examiner of the commission shall make
 535-14  findings of fact, conclusions of law, and any ultimate findings
 535-15  required by statute, all of which shall be separately stated.  The
 535-16  hearings examiner shall make a proposal for decision to the
 535-17  commission and shall serve the proposal for decision on all
 535-18  parties.  The commission shall consider and act on the proposal for
 535-19  decision.
 535-20        (b)  If a contested case involves an ultimate finding of
 535-21  compliance with or satisfaction of a statutory standard the
 535-22  determination of which is committed to the discretion or judgment
 535-23  of the commission by law, a hearings examiner, on joint motion of
 535-24  all parties or sua sponte, may certify those policy issues to the
 535-25  commission.  A certification request must contain a statement of
 535-26  the policy issue to be determined and a statement of all relevant
 535-27  facts sufficient to show fully the nature of the controversy.  The
  536-1  commission may receive written or oral statements from parties to
  536-2  the hearing or the hearings examiner on the policy issue certified.
  536-3  The commission must answer policy issues not later than the 60th
  536-4  day after the date of certification or, in its discretion, may
  536-5  decline to answer.  If the commission fails to answer a policy
  536-6  issue within that period, the commission shall be deemed to have
  536-7  declined to answer.  The hearings examiner shall proceed with the
  536-8  contested case and make a proposal for decision as required by
  536-9  Subsection (a).
 536-10        (c)  The commission may overturn an underlying finding of
 536-11  fact that serves as the basis for a decision in a contested case
 536-12  only if the commission finds that the finding was not supported by
 536-13  the great weight of the evidence.
 536-14        (d)  The commission may overturn a conclusion of law in a
 536-15  contested case only on the grounds that the conclusion was clearly
 536-16  erroneous in light of precedent and applicable rules.
 536-17        (e)  If a decision in a contested case involves an ultimate
 536-18  finding of compliance with or satisfaction of a statutory standard
 536-19  the determination of which is committed to the discretion or
 536-20  judgment of the commission by law, the commission may reject a
 536-21  proposal for decision as to the ultimate finding for reasons of
 536-22  policy only.
 536-23        (f)  The commission shall issue written rulings, orders, or
 536-24  decisions in all contested cases and shall fully explain in a
 536-25  ruling, order, or decision the reasoning and grounds for
 536-26  overturning each finding of fact or conclusion of law or for
 536-27  rejecting any proposal for decision on an ultimate finding.
  537-1  (Sec. 361.0832, Health and Safety Code.)
  537-2        Sec. 20.081.  Costs for Information Provided by a Person
  537-3  Affected Regarding Hazardous Waste Permit.  (a)  After considering
  537-4  the factors in Subsection (e), the commission may order the
  537-5  applicant for a permit for a new hazardous waste management
  537-6  facility to pay reasonable costs incurred by a person affected in
  537-7  presenting information set out in Subsection (b) to the commission
  537-8  on the question of the issuance of the permit.
  537-9        (b)  Information for which an award of costs under Subsection
 537-10  (a) may be made includes:
 537-11              (1)  technical studies of the area in which the new
 537-12  hazardous waste facility is proposed to be located;
 537-13              (2)  expert testimony given at a hearing on the permit
 537-14  application; and
 537-15              (3)  surveys of land use and potential use in the
 537-16  hazardous waste facility area.
 537-17        (c)  The commission may order the applicant for a permit for
 537-18  a new hazardous waste management facility to pay reasonable costs
 537-19  incurred by a person affected who presented information to the
 537-20  commission at a hearing showing that the applicant:
 537-21              (1)  knowingly made false or misleading statements in
 537-22  the application;
 537-23              (2)  knowingly made false or misleading statements
 537-24  during the hearing; or
 537-25              (3)  failed to present information that the applicant
 537-26  had in its possession that would have materially affected the
 537-27  issues of fact and law on which the decision of the commission was
  538-1  based.
  538-2        (d)  The total costs awarded to all persons affected under
  538-3  Subsection (a) may not exceed $100,000 for a new commercial
  538-4  hazardous waste management facility or $20,000 for a new
  538-5  noncommercial hazardous waste management facility.  The total costs
  538-6  awarded to all persons affected under Subsection (c) may not exceed
  538-7  $150,000 for a new commercial hazardous waste management facility
  538-8  or $30,000 for a new noncommercial hazardous waste management
  538-9  facility.
 538-10        (e)  In determining the appropriateness of an award under
 538-11  Subsection (a) or (c), the commission shall consider:
 538-12              (1)  whether the information provided is material to
 538-13  the commission's determination to deny the permit or to require the
 538-14  applicant to make significant changes in the facility's design or
 538-15  operation; and
 538-16              (2)  whether the information would otherwise not have
 538-17  been presented to the commission while the commission is
 538-18  considering its decision.
 538-19        (f)  If the applicant fails or refuses to pay the amount of
 538-20  costs ordered not later than the 30th day after the date of entry
 538-21  of the final order granting payment of costs, the commission shall
 538-22  order the applicant's bond or other financial assurance forfeited
 538-23  in the amount of the costs ordered reimbursed under Subsection (a)
 538-24  or (c) up to and including the full amount of the bond or other
 538-25  financial assurance.  The commission shall forward the forfeited
 538-26  amount to the person affected.
 538-27        (g)  If no request is made for an award of costs under this
  539-1  section or if a person affected is determined by the commission not
  539-2  to be entitled to an award of costs, the commission shall release
  539-3  the bond or other financial assurance of the applicant subject to
  539-4  an appeal of the denial of costs under this section.  The
  539-5  commission shall also release the bond or other financial assurance
  539-6  on presentation of proof that the costs awarded have been paid.
  539-7        (h)  An order issued under this section is enforceable as a
  539-8  debt.  (Sec. 361.0833, Health and Safety Code.)
  539-9        Sec. 20.082.  Compliance Summaries.  (a)  The commission by
 539-10  rule shall establish a procedure to prepare compliance summaries
 539-11  relating to the applicant's solid waste management activities.
 539-12        (b)  The compliance summaries shall be made available to the
 539-13  applicant and any interested person after the commission has
 539-14  completed its technical review of the permit application and before
 539-15  the issuance of the public notice concerning an opportunity for a
 539-16  hearing on the permit application.
 539-17        (c)  Evidence of compliance or noncompliance by an applicant
 539-18  for a solid waste management facility permit with commission rules,
 539-19  permits, other orders, or evidence of a final determination of
 539-20  noncompliance with federal statutes or statutes of any state in the
 539-21  preceding five years concerning solid waste management may be:
 539-22              (1)  offered by a party at a hearing concerning the
 539-23  application; and
 539-24              (2)  admitted into evidence subject to applicable rules
 539-25  of evidence.
 539-26        (d)  The commission shall consider all evidence admitted,
 539-27  including compliance history, in determining whether to issue,
  540-1  amend, extend, or renew a permit.  (Sec. 361.084, Health and Safety
  540-2  Code.)
  540-3        Sec. 20.083.  Financial Assurance and Disclosure by Permit
  540-4  Applicant.  (a)  Before a permit may be issued, amended,
  540-5  transferred, extended, or renewed for a hazardous waste management
  540-6  facility, the commission shall require as a part of each
  540-7  application information it deems necessary to demonstrate that an
  540-8  applicant has sufficient financial resources to operate the
  540-9  facility in a safe manner and in compliance with the permit and all
 540-10  applicable rules, including how an applicant intends to obtain
 540-11  financing for construction of the facility, and to close the
 540-12  facility in accordance with applicable rules.  That information may
 540-13  include balance sheets, financial statements, and disclosure of
 540-14  relevant information regarding investors and stockholders, or
 540-15  information required by Title 40, Code of Federal Regulations, Part
 540-16  264, Subpart H. If the information would be considered confidential
 540-17  under applicable law, the commission shall protect the information
 540-18  accordingly.  During hearings on contested applications, the
 540-19  commission may allow disclosure of confidential information only
 540-20  under an appropriate protective order.
 540-21        (b)  The commission may order a party in a contested case
 540-22  permit hearing to provide:
 540-23              (1)  the identity of any known competitor of the
 540-24  applicant that has provided funding to the party for its
 540-25  participation in the hearing; and
 540-26              (2)  the amount of that funding.
 540-27        (c)  Before a permit may be issued, amended, extended, or
  541-1  renewed for a solid waste facility to store, process, or dispose of
  541-2  hazardous waste, the commission shall determine the type or types
  541-3  of financial assurance that may be given by the applicant to comply
  541-4  with rules adopted by the commission requiring financial assurance.
  541-5        (d)  Before hazardous waste may be received for storage,
  541-6  processing, or disposal at a solid waste facility for which a
  541-7  permit is issued, amended, extended, or renewed, the commission
  541-8  shall require the permit holder to execute the required financial
  541-9  assurance conditioned on the permit holder's satisfactorily
 541-10  operating and closing the solid waste facility.
 541-11        (e)  The commission may condition issuance, amendment,
 541-12  extension, or renewal of a permit for a solid waste facility, other
 541-13  than a solid waste facility for disposal of hazardous waste, on the
 541-14  permit holder's executing a bond or giving other financial
 541-15  assurance conditioned on the permit holder's satisfactorily
 541-16  operating and closing the solid waste facility.
 541-17        (f)  The commission shall require an assurance of financial
 541-18  responsibility as may be necessary or desirable consistent with the
 541-19  degree and duration of risks associated with the processing,
 541-20  storage, or disposal of specified solid waste.
 541-21        (g)  Financial requirements established by the commission
 541-22  must at a minimum be consistent with the federal requirements
 541-23  established under the federal Solid Waste Disposal Act, as amended
 541-24  by the Resource Conservation and Recovery Act of 1976, as amended
 541-25  (42 U.S.C. Section 6901 et seq.).
 541-26        (h)  The commission may:
 541-27              (1)  receive funds as the beneficiary of a financial
  542-1  assurance arrangement established under this section for the proper
  542-2  closure of a solid waste management facility; and
  542-3              (2)  spend the funds from the financial assurance
  542-4  arrangement to close the facility.
  542-5        (i)  If liability insurance is required of an applicant, the
  542-6  applicant may not use a claims made policy as security unless the
  542-7  applicant places in escrow, as provided by the commission, an
  542-8  amount sufficient to pay an additional year of premiums for renewal
  542-9  of the policy by the state on notice of termination of coverage.
 542-10        (j)  In addition to other forms of financial assurance
 542-11  authorized by rules of the commission, the commission may authorize
 542-12  the applicant to use a letter of credit if the issuing institution
 542-13  or another institution that guarantees payment under the letter is:
 542-14              (1)  a bank chartered by the state or the federal
 542-15  government; and
 542-16              (2)  federally insured and its financial practices are
 542-17  regulated by the state or the federal government.  (Sec. 361.085,
 542-18  Health and Safety Code.)
 542-19        Sec. 20.084.  Separate Permit for Each Facility.  (a)  A
 542-20  separate permit is required for each solid waste facility.
 542-21        (b)  A permit under this subchapter may be issued only to the
 542-22  person in whose name the application is made and only for the
 542-23  facility described by the permit.
 542-24        (c)  A permit may not be transferred without first giving
 542-25  written notice to and receiving written approval of the commission.
 542-26  (Sec. 361.086, Health and Safety Code.)
 542-27        Sec. 20.085.  Separate Recycling Permit not Required.  (a)  A
  543-1  permit holder or a municipal solid waste management facility that
  543-2  has or plans to have a recycling or waste separation facility
  543-3  established in conjunction with the permitted municipal solid waste
  543-4  management facility is not required to obtain for that recycling or
  543-5  waste separation facility a separate permit from the commission or
  543-6  to apply for an amendment to an existing permit issued by the
  543-7  commission.
  543-8        (b)  A facility to which this section applies must register
  543-9  with the commission in accordance with commission rules and comply
 543-10  with commission rules adopted under this chapter.
 543-11        (c)  If a permit is otherwise required, the commission shall
 543-12  expedite the permit proceeding if the applicant is seeking a permit
 543-13  for a solid waste management facility that employs an innovative,
 543-14  high technology method of waste disposition and recycling.
 543-15  (Sec. 361.0861, Health and Safety Code.)
 543-16        Sec. 20.086.  Contents of Permit.  A permit issued under this
 543-17  subchapter must include:
 543-18              (1)  the name and address of each person who owns the
 543-19  land on which the solid waste facility is located and the person
 543-20  who is or will be the operator or person in charge of the facility;
 543-21              (2)  a legal description of the land on which the
 543-22  facility is located; and
 543-23              (3)  the terms and conditions on which the permit is
 543-24  issued, including the duration of the permit.  (Sec. 361.087,
 543-25  Health and Safety Code.)
 543-26        Sec. 20.087.  Evaluation of Waste Stream; Land Use and Need.
 543-27  (a)  Before a permit may be issued for a new hazardous waste
  544-1  management facility or amended to provide for capacity expansion,
  544-2  the applicant shall identify the nature of any known specific and
  544-3  potential sources, types, and volumes of waste to be stored,
  544-4  processed, or disposed of by the facility and shall identify any
  544-5  other related information the commission may require.
  544-6        (b)  In evaluating a permit for a new hazardous waste
  544-7  management facility, the commission shall assess the impact of the
  544-8  proposed facility on local land use in the area, including any
  544-9  relevant land use plans in existence before publication of the
 544-10  notice of intent to file a solid waste permit application or, if no
 544-11  notice of intent is filed, at the time the permit application is
 544-12  filed.  In determining whether a new hazardous waste management
 544-13  facility is compatible with local land use, the commission shall
 544-14  consider, at a minimum, the location of industrial and other
 544-15  waste-generating facilities in the area, the amounts of hazardous
 544-16  waste generated by those facilities, and the risks associated with
 544-17  the transportation of hazardous waste to the facility.  If the
 544-18  commission determines that a proposed application is not compatible
 544-19  with local land use, it may deny the permit.  The commission shall
 544-20  adopt rules to implement this subsection.
 544-21        (c)  In accordance with Section 20.025, in evaluating an
 544-22  application for a new commercial hazardous waste management
 544-23  facility, the commission shall determine the need for the specific
 544-24  technology proposed in the facility to manage new or increased
 544-25  volumes of waste generated in the state.  The commission rules
 544-26  adopted under Section 20.025 shall identify the types of technology
 544-27  for which a commercial waste management need exists and shall
  545-1  provide for priority consideration in permit processing for those
  545-2  applications that address the highest priority need as identified
  545-3  by the commission.  (Sec. 361.0871, Health and Safety Code.)
  545-4        Sec. 20.088.  Permit Issuance, Amendment, Extension and
  545-5  Renewal; Notice and Hearing.  (a)  The commission may amend,
  545-6  extend, or renew a permit it issues in accordance with reasonable
  545-7  procedures prescribed by the  commission.
  545-8        (b)  The procedures prescribed by Section 20.069 for a permit
  545-9  application apply to an application to amend, extend, or renew a
 545-10  permit.
 545-11        (c)  Before a permit is issued, amended, extended, or
 545-12  renewed, the commission shall provide an opportunity for a hearing
 545-13  to the applicant and persons affected.  The commission may also
 545-14  hold a hearing on its own motion.
 545-15        (d)  In addition to providing an opportunity for a hearing
 545-16  held under this section, the commission shall hold a public meeting
 545-17  and give notice as provided by Section 20.074.  (Sec. 361.088,
 545-18  Health and Safety Code.)
 545-19        Sec. 20.089.  Permit Denial, Amendment, Suspension or
 545-20  Revocation; Notice and Hearing.  (a)  The commission may, for good
 545-21  cause, deny, amend, or revoke a permit it issues or has authority
 545-22  to issue for reasons pertaining to public health, air or water
 545-23  pollution, or land use, or for a violation of this chapter or other
 545-24  applicable laws or rules controlling the management of solid waste.
 545-25        (b)  Except as provided by Section 20.111, the commission
 545-26  shall notify each governmental entity listed under Section 20.069
 545-27  and provide an opportunity for a hearing to the permit holder or
  546-1  applicant and persons affected.  The commission may also hold a
  546-2  hearing on its own motion.
  546-3        (c)  The commission by rule shall establish procedures for
  546-4  public notice and any public hearing under this section.
  546-5        (d)  Hearings under this section shall be conducted in
  546-6  accordance with the hearing rules adopted by the commission and the
  546-7  applicable provisions of the Administrative Procedure and Texas
  546-8  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
  546-9        (e)  The commission may deny, suspend for not more than 90
 546-10  days, or revoke an original or renewal permit if it is found, after
 546-11  notice and hearing, that:
 546-12              (1)  the permit holder has a record of environmental
 546-13  violations in the preceding five years at the permitted site;
 546-14              (2)  the applicant has a record of environmental
 546-15  violations in the preceding five years at any site owned, operated,
 546-16  or controlled by the applicant;
 546-17              (3)  the permit holder or applicant made a false or
 546-18  misleading statement in connection with an original or renewal
 546-19  application, either in the formal application or in any other
 546-20  written instrument relating to the application submitted to the
 546-21  agency, its officers, or its employees;
 546-22              (4)  the permit holder or applicant is indebted to the
 546-23  state for fees, payment of penalties, or taxes imposed by this
 546-24  title or by a rule of the commission; or
 546-25              (5)  the permit holder or applicant is unable to ensure
 546-26  that the management of the hazardous waste management facility
 546-27  conforms or will conform to this title and the rules of the
  547-1  commission.
  547-2        (f)  Before denying, suspending, or revoking a permit under
  547-3  this section, the commission must find:
  547-4              (1)  that a violation or violations are significant and
  547-5  that the permit holder or applicant has not made a substantial
  547-6  attempt to correct the violations; or
  547-7              (2)  that the permit holder or applicant is indebted to
  547-8  the state for fees, payment of penalties, or taxes imposed by this
  547-9  title or by a rule of the commission.
 547-10        (g)  For purposes of this section, the terms "permit holder"
 547-11  and "applicant" include each member of a partnership or association
 547-12  and, with respect to a corporation, each officer and the owner or
 547-13  owners of a majority of the corporate stock, provided such partner
 547-14  or owner controls at least 20 percent of the permit holder or
 547-15  applicant and at least 20 percent of another business which
 547-16  operates a solid waste management facility.  (Sec. 361.089, Health
 547-17  and Safety Code.)
 547-18        Sec. 20.090.  Regulation and Permitting of Certain Industrial
 547-19  Solid Waste Disposal.  (a)  The commission may not require a permit
 547-20  under this chapter for the collection, handling, storage,
 547-21  processing, and disposal of industrial solid waste that is disposed
 547-22  of within the boundaries of a tract of land that is:
 547-23              (1)  owned or otherwise effectively controlled by the
 547-24  owners or operators of the particular industrial plant,
 547-25  manufacturing plant, mining operation, or agricultural operation
 547-26  from which the waste results or is produced; and
 547-27              (2)  located within 50 miles from the plant or
  548-1  operation that is the source of the industrial solid waste.
  548-2        (b)  This section does not apply to:
  548-3              (1)  waste collected, handled, stored, processed, or
  548-4  disposed of with solid waste from any other source or sources; or
  548-5              (2)  hazardous waste.
  548-6        (c)  This section does not change or limit any authority the
  548-7  commission may have concerning:
  548-8              (1)  the requirement of permits and the control of
  548-9  water quality, or otherwise, under Chapter 10; or
 548-10              (2)  the authority under Section 20.303.
 548-11        (d)  The commission may adopt rules under Section 20.029 to
 548-12  control the collection, handling, storage, processing, and disposal
 548-13  of the industrial solid waste to which this section applies to
 548-14  protect the property of others, public property and rights-of-way,
 548-15  groundwater, and other rights requiring protection.
 548-16        (e)  The commission may require a person who disposes or
 548-17  plans to dispose of industrial solid waste and claims to be exempt
 548-18  under this section to submit to the commission information that is
 548-19  reasonably required to enable the commission to determine if this
 548-20  section applies to the waste disposal activity.  (Sec. 361.090,
 548-21  Health and Safety Code.)
 548-22        Sec. 20.091.  Enclosed Containers or Vehicles; Permits;
 548-23  Inspections; Criminal Penalty.  (a)  A solid waste site or
 548-24  operation permitted as a Type IV landfill may not accept solid
 548-25  waste that is in a completely enclosed container or enclosed
 548-26  vehicle unless:
 548-27              (1)  the solid waste is transported on a route approved
  549-1  by the commission and designed to eliminate putrescible, hazardous,
  549-2  or infectious waste;
  549-3              (2)  the solid waste is delivered to the site or
  549-4  operation on a date and time designated and approved by the
  549-5  commission to eliminate putrescible, hazardous, or infectious
  549-6  waste;
  549-7              (3)  the transporter possesses a special permit issued
  549-8  by the commission that includes the approved route, date, and time;
  549-9  and
 549-10              (4)  a commission inspector is present to verify that
 549-11  the solid waste is free of putrescible, hazardous, or infectious
 549-12  waste.
 549-13        (b)  The commission may issue the special permit under this
 549-14  section and charge a reasonable fee to cover the costs of the
 549-15  permit.  The commission may adopt rules of procedure necessary to
 549-16  carry out the permit program.
 549-17        (c)  The commission may employ one or more inspectors and
 549-18  other employees necessary to inspect and determine if Type IV
 549-19  landfills are free of putrescible, hazardous, or infectious waste.
 549-20  The commission shall pay the compensation and expenses of
 549-21  inspectors and other necessary employees employed under this
 549-22  subsection, but the holders of Type IV landfill permits shall
 549-23  reimburse the commission for the compensation and expenses as
 549-24  provided by this section.
 549-25        (d)  The commission shall notify each holder of a Type IV
 549-26  landfill permit of the compensation and expenses that are required
 549-27  annually for the inspection of the landfills.
  550-1        (e)  The commission shall hold a public hearing to determine
  550-2  the apportionment of the administration costs of the inspection
  550-3  program among the holders of Type IV landfill permits.  After the
  550-4  hearing, the commission shall equitably apportion the costs of the
  550-5  inspection program and issue an order assessing the annual costs
  550-6  against each permit holder.  The commission may provide for
  550-7  payments in installments and shall specify the date by which each
  550-8  payment must be made to the commission.
  550-9        (f)  A holder of a permit issued under this section may not
 550-10  accept solid waste if the permit holder is delinquent in the
 550-11  payment of costs assessed under Subsection (e).
 550-12        (g)  The commission's order assessing costs is effective
 550-13  until the commission:
 550-14              (1)  modifies, revokes, or supersedes an order
 550-15  assessing costs with a subsequent order; or
 550-16              (2)  issues supplementary orders applicable to new Type
 550-17  IV landfill permits.
 550-18        (h)  The commission may adopt rules necessary to carry out
 550-19  this section.
 550-20        (i)  An operator of a solid waste facility or a solid waste
 550-21  hauler commits an offense if the operator or hauler disposes of
 550-22  solid waste in a completely enclosed container or vehicle at a
 550-23  solid waste site or operation permitted as a Type IV landfill:
 550-24              (1)  without having in possession the special permit
 550-25  required by this section;
 550-26              (2)  on a date or time not authorized by the
 550-27  commission; or
  551-1              (3)  without a commission inspector present to verify
  551-2  that the solid waste is free of putrescible, hazardous, and
  551-3  infectious waste.
  551-4        (j)  An offense under this section is a Class B misdemeanor.
  551-5        (k)  Penalties under this section are in addition to any
  551-6  other penalty applicable under this chapter.
  551-7        (l)  This section does not apply to:
  551-8              (1)  a stationary compactor that is at a specific
  551-9  location and that has an annual permit under this section issued by
 551-10  the commission, on certification to the commission by the generator
 551-11  that the contents of the compactor are free of putrescible,
 551-12  hazardous, or infectious waste; or
 551-13              (2)  an enclosed vehicle of a municipality if the
 551-14  vehicle has a permit issued by the commission to transport brush or
 551-15  construction-demolition waste and rubbish on designated dates, on
 551-16  certification by the municipality to the commission that the
 551-17  contents of the vehicle are free of putrescible, hazardous, or
 551-18  infectious waste.
 551-19        (m)  In this section, "putrescible waste" means organic
 551-20  waste, such as garbage, wastewater treatment plant sludge, and
 551-21  grease trap waste, that may:
 551-22              (1)  be decomposed by microorganisms with sufficient
 551-23  rapidity as to cause odors or gases; or
 551-24              (2)  provide food for or attract birds, animals, or
 551-25  disease vectors.  (Sec. 361.091, Health and Safety Code.)
 551-26        Sec. 20.092.  Permit for Extracting Materials From Certain
 551-27  Solid Waste Facilities.  (a)  The commission may require a permit
  552-1  to extract materials for energy and material recovery and for gas
  552-2  recovery from closed or inactive portions of a solid waste facility
  552-3  that has been used for disposal of municipal or industrial solid
  552-4  waste.
  552-5        (b)  The commission shall issue a permit under this section
  552-6  in the same manner as provided by this subchapter for issuance of a
  552-7  permit to operate and maintain a solid waste facility.
  552-8        (c)  The commission shall adopt standards necessary to ensure
  552-9  that the integrity of a solid waste facility is maintained.
 552-10  (Sec. 361.092, Health and Safety Code.)
 552-11        Sec. 20.093.  Regulation and Permitting of Rendering Plants.
 552-12  (a)  A manufacturing or processing establishment, commonly known as
 552-13  a rendering plant, that processes waste materials originating from
 552-14  animals and from materials of vegetable origin, including animal
 552-15  parts and scraps, offal, paunch manure, and waste cooking grease of
 552-16  animal and vegetable origin, is subject to regulation under the
 552-17  industrial solid waste provisions of this chapter and may be
 552-18  regulated under Chapter 10.
 552-19        (b)  If a rendering plant is owned by a person who operates
 552-20  the plant as an integral part of an establishment that manufactures
 552-21  or processes for animal or human consumption food derived wholly or
 552-22  partly from dead, slaughtered, or processed animals, the combined
 552-23  business may operate under a single permit issued under Chapter 10.
 552-24        (c)  This section does not apply to a rendering plant in
 552-25  operation and production on or before August 27, 1973.
 552-26        (d)  In this section, "animals" includes only animals,
 552-27  poultry, and fish.  (Sec. 361.093, Health and Safety Code.)
  553-1        Sec. 20.094.  Permit Holder Exempt From Local License
  553-2  Requirements.  If a permit is issued, amended, renewed, or extended
  553-3  by the  commission in accordance with this subchapter, the solid
  553-4  waste facility owner or operator does not need to obtain a license
  553-5  for the same facility from a political subdivision under Section
  553-6  20.165 or from a county.  (Sec. 361.094, Health and Safety Code.)
  553-7        Sec. 20.095.  Applicant for Hazardous Waste Management
  553-8  Facility Permit Exempt From Local Permit.  (a)  An applicant for a
  553-9  permit under this subchapter is not required to obtain a permit for
 553-10  the siting, construction, or operation of a hazardous waste
 553-11  management facility from a local government or other political
 553-12  subdivision of the state.
 553-13        (b)  A local government or other political subdivision of the
 553-14  state may not adopt a rule or ordinance that conflicts with or is
 553-15  inconsistent with the requirements for hazardous waste management
 553-16  facilities as specified by the rules of the commission or by a
 553-17  permit issued by the commission.
 553-18        (c)  In an action to enforce a rule or ordinance of a local
 553-19  government or other political subdivision, the burden is on the
 553-20  facility owner or operator or on the applicant to demonstrate
 553-21  conflict or inconsistency with state requirements.
 553-22        (d)  The validity or applicability of a rule or ordinance of
 553-23  a local government or other political subdivision may be determined
 553-24  in an action for declaratory judgment under Chapter 37, Civil
 553-25  Practice and Remedies Code, if it is alleged that the rule or
 553-26  ordinance, or its threatened application, interferes with or
 553-27  impairs, or threatens to interfere with or impair, the legal rights
  554-1  or privileges of the plaintiff concerning an application for or the
  554-2  issuance of a permit for the siting, construction, or operation of
  554-3  a hazardous waste management facility.
  554-4        (e)  The local government or other political subdivision
  554-5  whose rule or ordinance is being questioned shall be made a party
  554-6  to the action.  The commission shall be given written notice by
  554-7  certified mail of the pendency of the action, and the commission
  554-8  may become a party to the action.
  554-9        (f)  A declaratory judgment may be rendered even if the
 554-10  plaintiff has requested the commission, the local government or
 554-11  political subdivision, or another court to determine the validity
 554-12  or applicability of the rule or ordinance in question.
 554-13  (Sec. 361.095, Health and Safety Code.)
 554-14        Sec. 20.096.  Effect on Authority of Local Government or
 554-15  Other Political Subdivision.  (a)  Except as specifically provided
 554-16  by this chapter, this subchapter does not limit the powers and
 554-17  duties of a local government or other political subdivision of the
 554-18  state as conferred by this or other law.
 554-19        (b)  Sections 20.094 and 20.095 do not affect the power of a
 554-20  local government or other political subdivision to adopt or enforce
 554-21  building codes.  (Sec. 361.096, Health and Safety Code.)
 554-22        Sec. 20.097.  Condition on Issuance of Permit for Hazardous
 554-23  Waste Management Facility.  The commission by rule shall condition
 554-24  the issuance of a permit for a new hazardous waste management
 554-25  facility or the areal expansion of an existing hazardous waste
 554-26  management facility on the selection of a facility site that
 554-27  reasonably minimizes possible contamination of surface water and
  555-1  groundwater.  (Sec. 361.097, Health and Safety Code.)
  555-2        Sec. 20.098.  Prohibition on Permit for Hazardous Waste
  555-3  Landfill in 100-Year Floodplain.  (a)  Except as provided by
  555-4  Subsections (b) and (c), the commission by rule shall prohibit the
  555-5  issuance of a permit for a new hazardous waste landfill or an areal
  555-6  expansion of such a landfill if the landfill is to be located in
  555-7  the 100-year floodplain existing before site development, unless
  555-8  the landfill is to be located in an area with a flood depth of less
  555-9  than three feet.
 555-10        (b)  The commission by rule may allow an areal expansion of a
 555-11  landfill in a 100-year floodplain if it can be demonstrated to the
 555-12  satisfaction of the commission that the facility design will
 555-13  prevent the physical transport of any hazardous waste by a 100-year
 555-14  flood event.
 555-15        (c)  The commission by rule shall prohibit the issuance of a
 555-16  permit for a new commercial hazardous waste land disposal unit if
 555-17  the unit is to be located in a 100-year floodplain, unless the
 555-18  applicant can demonstrate to the satisfaction of the commission
 555-19  that the facility design will prevent the physical transport of any
 555-20  hazardous waste by a 100-year flood event.
 555-21        (d)  The commission by rule shall require an applicant to
 555-22  provide sufficient information to assure that a proposed hazardous
 555-23  waste landfill, areal expansion of such landfill, or new commercial
 555-24  hazardous waste land disposal unit is not subject to inundation of
 555-25  a 100-year flood event.  An applicant or any other party may not
 555-26  rely solely on floodplain maps prepared by the Federal Emergency
 555-27  Management Agency or a successor agency to determine whether a
  556-1  hazardous waste landfill, areal expansion of such landfill, or
  556-2  commercial hazardous waste land disposal unit is subject to such an
  556-3  inundation.  (Sec. 361.098, Health and Safety Code.)
  556-4        Sec. 20.099.  Prohibition on Permit for Hazardous Waste
  556-5  Management Unit in Wetlands.  (a)  The commission by rule shall
  556-6  prohibit the issuance of a permit for a new hazardous waste
  556-7  management unit or an areal expansion of an existing hazardous
  556-8  waste management unit if the unit is to be located in wetlands, as
  556-9  defined by the commission.
 556-10        (b)  In this section and Section 20.100, "hazardous waste
 556-11  management unit" means a landfill, surface impoundment, land
 556-12  treatment facility, waste pile, or storage or processing facility
 556-13  used to manage hazardous waste.  (Sec. 361.099, Health and Safety
 556-14  Code.)
 556-15        Sec. 20.100.  Prohibition on Permit for Certain Hazardous
 556-16  Waste Management Units.  The commission by rule shall prohibit the
 556-17  issuance of a permit for a new hazardous waste management unit if
 556-18  the landfill:
 556-19              (1)  is in a floodplain of a perennial stream subject
 556-20  to not less than one percent chance of flooding in any year,
 556-21  delineated on a flood map adopted by the Federal Emergency
 556-22  Management Agency after September 1, 1985, as zone A1-99, V0, or
 556-23  V1-30; and
 556-24              (2)  receives hazardous waste for a fee.
 556-25  (Sec. 361.100, Health and Safety Code.)
 556-26        Sec. 20.101.  Prohibition on Permit for Facility on Recharge
 556-27  Zone of Sole Source Aquifer.  The commission by rule shall prohibit
  557-1  the issuance of a permit for a new hazardous waste landfill, land
  557-2  treatment facility, surface impoundment, or waste pile, or areal
  557-3  expansion of such a facility, if the facility is to be located on
  557-4  the recharge zone of a sole source aquifer.  (Sec. 361.101, Health
  557-5  and Safety Code.)
  557-6        Sec. 20.102.  Prohibition on Permit for Facility Affected by
  557-7  Fault.  If a fault exists within two and one-half miles from the
  557-8  proposed or existing wellbore of a Class I injection well or the
  557-9  area within the cone of influence, whichever is greater, or if a
 557-10  fault exists within 3,000 feet of a proposed hazardous waste
 557-11  management facility other than a Class I injection well or of a
 557-12  capacity expansion of an existing hazardous waste management
 557-13  facility, the burden is on the applicant, unless previously
 557-14  demonstrated to the commission or to the United States
 557-15  Environmental Protection Agency, to show:
 557-16              (1)  in the case of Class I injection wells, that the
 557-17  fault is not sufficiently transmissive or vertically extensive to
 557-18  allow migration of hazardous constituents out of the injection
 557-19  zone; or
 557-20              (2)  in the case of a proposed hazardous waste
 557-21  management facility other than a Class I injection well or for a
 557-22  capacity expansion of an existing hazardous waste management
 557-23  facility, that:
 557-24                    (A)  the fault has not had displacement within
 557-25  Holocene time, or if faults have had displacement within Holocene
 557-26  time, that no such faults pass within 200 feet of the portion of
 557-27  the surface facility where treatment, storage, or disposal of
  558-1  hazardous wastes will be conducted; and
  558-2                    (B)  the fault will not result in structural
  558-3  instability of the surface facility or provide for groundwater
  558-4  movement to the extent that there is endangerment to human health
  558-5  or the environment.  (Sec. 361.1011, Health and Safety Code.)
  558-6        Sec. 20.103.  Prohibition on Permit for Hazardous Waste
  558-7  Management Facilities Within a Certain Distance of Residence,
  558-8  Church, School, Day Care Center, Park, or Public Drinking Water
  558-9  Supply.  (a)  Except as provided by Subsections (b) and (c), the
 558-10  commission by rule shall prohibit the issuance of a permit for a
 558-11  new hazardous waste landfill or land treatment facility or the
 558-12  areal expansion of such a facility if the boundary of the landfill
 558-13  or land treatment facility is to be located within 1,000 feet of an
 558-14  established residence, church, school, day care center, surface
 558-15  water body used for a public drinking water supply, or dedicated
 558-16  public park.
 558-17        (b)  The commission by rule shall prohibit the issuance of a
 558-18  permit for a new commercial hazardous waste management facility or
 558-19  the subsequent areal expansion of such a facility or unit of that
 558-20  facility if the boundary of the unit is to be located within
 558-21  one-half of a mile (2,640 feet) of an established residence,
 558-22  church, school, day care center, surface water body used for a
 558-23  public drinking water supply, or dedicated public park.
 558-24        (c)  For a subsequent areal expansion of a new commercial
 558-25  hazardous waste management facility that was required to comply
 558-26  with Subsection (b), distances shall be measured from a residence,
 558-27  church, school, day care center, surface water body used for a
  559-1  public drinking water supply, or dedicated public park only if such
  559-2  structure, water supply, or park was in place at the time the
  559-3  distance was certified for the original permit.
  559-4        (d)  The commission by rule shall prohibit the issuance of a
  559-5  permit for a new commercial hazardous waste management facility
  559-6  that is proposed to be located at a distance greater than one-half
  559-7  mile (2,640 feet) from an established residence, church, school,
  559-8  day care center, surface water body used for a public drinking
  559-9  water supply, or dedicated park, unless the applicant demonstrates
 559-10  that the facility will be operated so as to safeguard public health
 559-11  and welfare and protect physical property and the environment, at
 559-12  any distance beyond the facility's property boundaries, consistent
 559-13  with the purposes of this chapter.
 559-14        (e)  The measurement of distances required by Subsections
 559-15  (a), (b), (c), and (d) shall be taken toward an established
 559-16  residence, church, school, day care center, surface water body used
 559-17  for a public drinking water supply, or dedicated park that is in
 559-18  use when the notice of intent to file a permit application is filed
 559-19  with the commission or, if no notice of intent is filed, when the
 559-20  permit application is filed with the commission.  The restrictions
 559-21  imposed by Subsections (a), (b), (c), and (d) do not apply to a
 559-22  residence, church, school, day care center, surface water body used
 559-23  for a public drinking water supply, a dedicated park located within
 559-24  the boundaries of a commercial hazardous waste management facility,
 559-25  or property owned by the permit applicant.
 559-26        (f)  The measurement of distances required by Subsections
 559-27  (a), (b), (c), and (d) shall be taken from a perimeter around the
  560-1  proposed hazardous waste management unit.  The perimeter shall be
  560-2  not more than 75 feet from the edge of the proposed hazardous waste
  560-3  management unit.  (Sec. 361.102, Health and Safety Code.)
  560-4        Sec. 20.104.  Other Areas Unsuitable for Hazardous Waste
  560-5  Management Facility.  The commission by rule shall define the
  560-6  characteristics that make other areas unsuitable for a hazardous
  560-7  waste management facility, including consideration of:
  560-8              (1)  flood hazards;
  560-9              (2)  discharge from or recharge to a groundwater
 560-10  aquifer;
 560-11              (3)  soil conditions;
 560-12              (4)  areas of direct drainage within one mile of a lake
 560-13  used to supply public drinking water;
 560-14              (5)  active geological processes;
 560-15              (6)  coastal high hazard areas, such as areas subject
 560-16  to hurricane storm surge and shoreline erosion; or
 560-17              (7)  critical habitat of endangered species.
 560-18  (Sec. 361.103, Health and Safety Code.)
 560-19        Sec. 20.105.  Prohibition on Permit for Facility in
 560-20  Unsuitable Area.  The commission by rule shall prohibit the
 560-21  issuance of a permit for a new hazardous waste management facility
 560-22  or an areal expansion of an existing hazardous waste management
 560-23  facility if the facility is to be located in an area determined to
 560-24  be unsuitable under rules adopted by the commission under Section
 560-25  20.104 unless the design, construction, and operational features of
 560-26  the facility will prevent adverse effects from unsuitable site
 560-27  characteristics.  (Sec. 361.104, Health and Safety Code.)
  561-1        Sec. 20.106.  Petition by Local Government for Rule on
  561-2  Hazardous Waste Facility in Unsuitable Area.  (a)  The commission
  561-3  by rule shall allow a local government to petition the commission
  561-4  for a rule that restricts or prohibits the siting of a new
  561-5  hazardous waste disposal facility or other new hazardous waste
  561-6  management facility in an area including an area meeting one or
  561-7  more of the characteristics described by Section 20.104.
  561-8        (b)  A rule adopted under this section may not affect the
  561-9  siting of a new hazardous waste disposal facility or other new
 561-10  hazardous waste management facility if an application or a notice
 561-11  of intent to file an application concerning the facility is filed
 561-12  with the commission before the filing of a petition under this
 561-13  section.  (Sec. 361.105, Health and Safety Code.)
 561-14        Sec. 20.107.  Prohibition on Permit for Landfill if
 561-15  Alternative Exists.  The commission by rule shall prohibit the
 561-16  issuance of a permit for a new hazardous waste landfill or the
 561-17  areal expansion of an existing hazardous waste landfill if there is
 561-18  a practical, economic, and feasible alternative to the landfill
 561-19  that is reasonably available to manage the types and classes of
 561-20  hazardous waste that might be disposed of at the landfill.
 561-21  (Sec. 361.106, Health and Safety Code.)
 561-22        Sec. 20.108.  Hydrogeologic Report for Certain Hazardous
 561-23  Waste Facilities.  The commission by rule shall require an
 561-24  applicant for a new hazardous waste landfill, land treatment
 561-25  facility, or surface impoundment that is to be located in the
 561-26  apparent recharge zone of a regional aquifer to prepare and file a
 561-27  hydrogeologic report documenting the potential effects, if any, on
  562-1  the regional aquifer in the event of a release from the waste
  562-2  containment system.  (Sec. 361.107, Health and Safety Code.)
  562-3        Sec. 20.109.  Engineering Report for Hazardous Waste
  562-4  Landfill.  The commission by rule shall require an applicant for a
  562-5  new hazardous waste landfill filed after January 1, 1986, to
  562-6  provide an engineering report evaluating:
  562-7              (1)  the benefits, if any, associated with constructing
  562-8  the landfill above existing grade at the proposed site;
  562-9              (2)  the costs associated with the above grade
 562-10  construction; and
 562-11              (3)  the potential adverse effects, if any, that would
 562-12  be associated with the above grade construction.  (Sec. 361.108,
 562-13  Health and Safety Code.)
 562-14        Sec. 20.110.  Grant of Permit for Hazardous Waste Management
 562-15  Facility.  (a)  The commission may grant an application for a
 562-16  permit in whole or in part for a hazardous waste management
 562-17  facility if it finds that:
 562-18              (1)  the applicant has provided for the proper
 562-19  operation of the proposed hazardous waste management facility;
 562-20              (2)  the applicant for a proposed hazardous waste
 562-21  management facility has made a reasonable effort to ensure that the
 562-22  burden, if any, imposed by the proposed hazardous waste management
 562-23  facility on local law enforcement, emergency medical or
 562-24  fire-fighting personnel, or public roadways, will be minimized or
 562-25  mitigated; and
 562-26              (3)  the applicant, other than an applicant who is not
 562-27  an owner of the facility, owns or has made a good faith claim to,
  563-1  or has an option to acquire, or the authority to acquire by eminent
  563-2  domain, the property or portion of the property on which the
  563-3  hazardous waste management facility will be constructed.
  563-4        (b)  If the commission determines that a burden on public
  563-5  roadways will be imposed by a new commercial hazardous waste
  563-6  management facility, the commission shall require the applicant to
  563-7  pay the cost of the improvements necessary to minimize or mitigate
  563-8  the burden.  The applicant shall bear the costs associated with any
  563-9  required roadway improvements.  The failure of a county or
 563-10  municipality to accept the funds and make the improvements shall
 563-11  not be the basis for denial or suspension of a permit.
 563-12        (c)  The commission shall not process an application for a
 563-13  permit for a new commercial hazardous waste management facility
 563-14  unless the applicant:
 563-15              (1)  has provided sufficient evidence that emergency
 563-16  response capabilities are available or will be available before the
 563-17  facility first receives waste in the area in which the facility is
 563-18  located or proposed to be located to manage a reasonable worst-case
 563-19  emergency condition associated with the operation of the facility;
 563-20  or
 563-21              (2)  has secured bonding of sufficient financial
 563-22  assurance to fund the emergency response personnel and equipment
 563-23  determined to be necessary by the commission to manage a reasonable
 563-24  worst-case emergency condition associated with the facility.
 563-25        (d)  If the applicant intends to use emergency response
 563-26  facilities that are not provided by the county or municipality in
 563-27  which the facility is located to satisfy the requirements of
  564-1  Subsection (c), the applicant must provide its own facilities or
  564-2  contract for emergency response facilities with an adjoining
  564-3  county, municipality, mutual aid association, or other appropriate
  564-4  entity.  If financial assurance is required, the financial
  564-5  assurance must be for the benefit of the county government or
  564-6  municipal government in the county in which the facility is located
  564-7  or proposed to be located, or both, and must provide payment of the
  564-8  amount of the bond or other instrument to the governmental body or
  564-9  governmental bodies before the facility first receives waste, with
 564-10  a limitation that the money can only be spent for emergency
 564-11  response personnel and equipment.  The commission shall adopt rules
 564-12  to ensure that the county or municipal government or other entity
 564-13  has sufficient emergency response capabilities before the facility
 564-14  first receives waste.
 564-15        (e)  A permit for a new commercial hazardous waste management
 564-16  facility shall not be granted unless the applicant provides a
 564-17  summary of its experience in hazardous waste management and in the
 564-18  particular hazardous waste management technology proposed for the
 564-19  application location.  Any applicant without experience in the
 564-20  particular hazardous waste management technology shall
 564-21  conspicuously state that lack of experience in the application or a
 564-22  permit shall not be granted pursuant to the application.  A permit
 564-23  may not be denied solely on the basis of lack of experience of the
 564-24  applicant.  (Sec. 361.109, Health and Safety Code.)
 564-25        Sec. 20.111.  Termination of Authorization or Permit.
 564-26  Authorization to store, process, or dispose of hazardous waste
 564-27  under Section 20.077 or under a solid waste permit issued under
  565-1  this subchapter that has not been reissued in accordance with an
  565-2  approved state program under Section 3006 of the federal Solid
  565-3  Waste Disposal Act, as amended by the Resource Conservation and
  565-4  Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et seq.),
  565-5  terminates as follows:
  565-6              (1)  in the case of each land disposal facility, on
  565-7  November 8, 1985, unless the facility owner or operator applied for
  565-8  a final determination concerning the issuance of a permit before
  565-9  that date and certified that the facility was in compliance with
 565-10  all applicable groundwater monitoring and financial responsibility
 565-11  requirements;
 565-12              (2)  in the case of each incinerator facility, on
 565-13  November 8, 1989, unless the facility owner or operator applied for
 565-14  a final determination concerning the issuance of a permit by
 565-15  November 8, 1986; or
 565-16              (3)  in the case of any other solid waste facility, on
 565-17  November 8, 1992, unless the facility owner or operator applied for
 565-18  a final determination concerning the issuance of a permit by
 565-19  November 8, 1988.  (Sec. 361.110, Health and Safety Code.)
 565-20        Sec. 20.112.  Commission May Exempt Certain Municipal
 565-21  Facilities.  The commission may exempt from permit requirements a
 565-22  municipal solid waste management facility that:
 565-23              (1)  is used in the transfer of municipal solid waste
 565-24  from a service area with a population of less than 5,000 to a solid
 565-25  waste processing or disposal site; and
 565-26              (2)  complies with requirements established by
 565-27  commission rule that are necessary to protect the public's health
  566-1  and the environment.  (Sec. 361.111, Health and Safety Code.)
  566-2        Sec. 20.113.  Storage, Transportation, and Disposal of Used
  566-3  or Scrap Tires.  (a)  A person may not store more than 500 used or
  566-4  scrap tires for any period on any publicly or privately owned
  566-5  property unless the person registers the storage site with the
  566-6  commission.  This subsection does not apply to the storage,
  566-7  protection, or production of agricultural commodities.
  566-8        (b)  The commission may register a site to store more than
  566-9  500 used or scrap tires.
 566-10        (c)  A person may not dispose of used or scrap tires in a
 566-11  facility that is not permitted by the commission for that purpose.
 566-12        (d)  The commission may issue a permit for a facility for the
 566-13  disposal of used or scrap tires.
 566-14        (e)  The commission by rule shall adopt application forms and
 566-15  procedures for the registration and permitting processes authorized
 566-16  under this section.
 566-17        (f)  A person may not store more than 500 used or scrap tires
 566-18  or dispose of any quantity of used or scrap tires unless the tires
 566-19  are shredded, split, or quartered as provided by commission rule.
 566-20  The commission may grant an exception to this requirement if the
 566-21  commission finds that circumstances warrant the exception. The
 566-22  prohibition provided by this subsection does not apply to a person
 566-23  who, for eventual recycling, reuse, or energy recovery, temporarily
 566-24  stores scrap tires in a designated recycling collection area at a
 566-25  landfill permitted by the commission or licensed by a county or by
 566-26  a political subdivision exercising the authority granted by Section
 566-27  20.165.
  567-1        (g)  The commission shall require a person who transports
  567-2  used or scrap tires for storage or disposal to maintain records and
  567-3  use a manifest or other appropriate system to assure that those
  567-4  tires are transported to a storage site that is registered or to a
  567-5  disposal facility that is permitted under this section for that
  567-6  purpose.
  567-7        (h)  The commission may amend, extend, transfer, or renew a
  567-8  permit issued under this section as provided by this chapter and
  567-9  commission rule.
 567-10        (i)  The notice and hearing procedures provided by this
 567-11  subchapter apply to a permit issued, amended, extended, or renewed
 567-12  under this section.
 567-13        (j)  The commission may, for good cause, revoke or amend a
 567-14  permit it issues under this section for reasons concerning public
 567-15  health, air or water pollution, land use, or violation of this
 567-16  section as provided by Section 20.089.
 567-17        (k)  The commission may not register or issue a permit to a
 567-18  facility required by Section 20.477 to provide evidence of
 567-19  financial responsibility unless the facility has complied with that
 567-20  section.
 567-21        (l)  The commission may not register or issue a permit to a
 567-22  facility required to provide evidence of financial responsibility
 567-23  unless the facility has complied with that requirement.
 567-24        (m)  In this section, "scrap tire" means a tire that can no
 567-25  longer be used for its original intended purpose.  (Sec. 361.112,
 567-26  Health and Safety Code.)
 567-27        Sec. 20.114.  Permit Conditions for the Operation of
  568-1  Hazardous Waste Management Facilities.  (a)  The commission by rule
  568-2  shall establish requirements for commercial hazardous waste
  568-3  management facilities that will provide the opportunity for
  568-4  periodic monitoring of the operation of those facilities in order
  568-5  to assure that the facilities are in compliance with the terms of
  568-6  their respective permits.
  568-7        (b)  In proposing and adopting rules to implement this
  568-8  section, the commission shall consider, at a minimum, a requirement
  568-9  that the facility owner or operator fund an independent inspector
 568-10  for the facility, a requirement for an independent annual
 568-11  environmental audit of the facility, a procedure for considering
 568-12  comments from affected parties on the selection of the independent
 568-13  inspector, a requirement that operational personnel at the
 568-14  permitted facility be certified by the state as competent to
 568-15  operate the size and type of hazardous waste management facility
 568-16  for which the permit has been issued, and a requirement that the
 568-17  facility provide for fence line and ambient air quality monitoring.
 568-18        (c)  A requirement that is established by commission rule to
 568-19  implement this section shall be incorporated as appropriate into
 568-20  the conditions of a permit for a new hazardous waste management
 568-21  facility when the permit is issued and shall be incorporated into
 568-22  the conditions of a permit for an existing hazardous waste
 568-23  management facility when the permit is renewed.  (Sec. 361.113,
 568-24  Health and Safety Code.)
 568-25        Sec. 20.115.  Grant of Permit for Disposal of Hazardous Waste
 568-26  Into Salt Domes.  (a)  The commission may not issue a permit for a
 568-27  hazardous waste injection well in a solution-mined salt dome cavern
  569-1  unless the United States Environmental Protection Agency and the
  569-2  commission determine that sufficient rules are in place to regulate
  569-3  that activity.
  569-4        (b)  Before issuing a permit for a hazardous waste injection
  569-5  well in a solution-mined salt dome cavern, the commission by order
  569-6  must find that there is an urgent public necessity for the
  569-7  hazardous waste injection well.  The commission, in determining
  569-8  whether an urgent public necessity exists for the permitting of the
  569-9  hazardous waste injection well in a solution-mined salt dome
 569-10  cavern, must find that:
 569-11              (1)  the injection well will be designed, constructed,
 569-12  and operated in a manner that provides at least the same degree of
 569-13  safety as required of other currently operating hazardous waste
 569-14  disposal technologies;
 569-15              (2)  consistent with the need and desire to manage
 569-16  within the state hazardous wastes generated in the state, there is
 569-17  a substantial or obvious public need for additional hazardous waste
 569-18  disposal capacity and the hazardous waste injection well will
 569-19  contribute additional capacity toward servicing that need;
 569-20              (3)  the injection well will be constructed and
 569-21  operated in a manner so as to safeguard public health and welfare
 569-22  and protect physical property and the environment;
 569-23              (4)  the applicant has demonstrated that groundwater
 569-24  and surface waters, including public water supplies, will be
 569-25  protected from the release of hazardous waste from the salt-dome
 569-26  waste containment cavern; and
 569-27              (5)  any other criteria required by the commission to
  570-1  satisfy that the test of urgency has been met.  (Sec. 361.114,
  570-2  Health and Safety Code.)
  570-3            (Sections 20.116-20.150 reserved for expansion)
  570-4         SUBCHAPTER D.  POWERS AND DUTIES OF LOCAL GOVERNMENTS
  570-5        Sec. 20.151.  Relationship of County Authority to State
  570-6  Authority.  (a)  Each county has the solid waste management powers
  570-7  prescribed under this subchapter.
  570-8        (b)  The exercise of the licensing authority and other powers
  570-9  granted to a county by this chapter does not preclude the
 570-10  commission from exercising the powers vested in the commission
 570-11  under other provisions of this chapter, including the provisions
 570-12  authorizing the commission to issue a permit to construct, operate,
 570-13  and maintain a facility to process, store, or dispose of solid
 570-14  waste.
 570-15        (c)  The commission,  by specific action or directive, may
 570-16  supersede any authority granted to or exercised by a county under
 570-17  this chapter.  (Sec. 361.151, Health and Safety Code.)
 570-18        Sec. 20.152.  Limitation on County Powers Concerning
 570-19  Industrial Solid Waste.  The powers specified by Sections
 570-20  20.154-20.162 and Sections 23.011 and 23.012 (County Solid Waste
 570-21  Control Act) may not be exercised by a county with respect to the
 570-22  industrial solid waste disposal practices and areas to which
 570-23  Section 20.090 applies.  (Sec. 361.152, Health and Safety Code.)
 570-24        Sec. 20.153.  County Solid Waste Plans and Programs; Fees.
 570-25  (a)  A county may appropriate and spend money from its general
 570-26  revenues to manage solid waste and to administer a solid waste
 570-27  program and may charge reasonable fees for those services.
  571-1        (b)  As sufficient funds are made available by the
  571-2  commission, a county shall develop county solid waste plans and
  571-3  coordinate those plans with the plans of:
  571-4              (1)  local governments, regional planning agencies, and
  571-5  other governmental entities, as prescribed by Subchapter B, Chapter
  571-6  22;   and
  571-7              (2)  the commission.  (Sec. 361.153, Health and Safety
  571-8  Code.)
  571-9        Sec. 20.154.  County Licensing Authority.  (a)  Except as
 571-10  provided by Sections 20.151 and 20.152, a county may require and
 571-11  issue licenses authorizing and governing the operation and
 571-12  maintenance of facilities used to process, store, or dispose of
 571-13  solid waste, other than hazardous waste, in an area not in the
 571-14  territorial limits or extraterritorial jurisdiction of a
 571-15  municipality.
 571-16        (b)  If a county exercises licensing authority, it shall
 571-17  adopt and enforce rules for the management of solid waste.  The
 571-18  rules must be:
 571-19              (1)  compatible with and not less stringent than those
 571-20  of the commission; and
 571-21              (2)  approved by the commission.
 571-22        (c)  Sections 20.155-20.161 apply if a county exercises
 571-23  licensing authority under this section.  (Sec. 361.154, Health and
 571-24  Safety Code.)
 571-25        Sec. 20.155.  County Notification of License Application to
 571-26  State Agencies.  The county shall mail a copy of each license
 571-27  application with pertinent supporting data to the commission.  The
  572-1  commission has at least 60 days to submit comments and
  572-2  recommendations on the license application before the county may
  572-3  act on the application unless that privilege is waived by the
  572-4  commission.  (Sec. 361.155, Health and Safety Code.)
  572-5        Sec. 20.156.  Separate License for Each Facility.  (a)  A
  572-6  county shall issue a separate license for each solid waste
  572-7  facility.
  572-8        (b)  A license under this subchapter may be issued only to
  572-9  the person in whose name the application is made and only for the
 572-10  facility described in the license.
 572-11        (c)  A license may not be transferred without prior notice to
 572-12  and approval by the county that issued it.  (Sec. 361.156, Health
 572-13  and Safety Code.)
 572-14        Sec. 20.157.  Contents of License.  A license for a solid
 572-15  waste facility issued by a county must include:
 572-16              (1)  the name and address of each person who owns the
 572-17  land on which the solid waste facility is located and the person
 572-18  who is or will be the operator or person in charge of the facility;
 572-19              (2)  a legal description of the land on which the
 572-20  facility is located; and
 572-21              (3)  the terms and conditions on which the license is
 572-22  issued, including the duration of the license.  (Sec. 361.157,
 572-23  Health and Safety Code.)
 572-24        Sec. 20.158.  License Fee.  (a)  A county may charge a
 572-25  license fee not to exceed $100, as set by the commissioners court
 572-26  of the county.
 572-27        (b)  The fees shall be deposited to the credit of the
  573-1  county's general fund.  (Sec. 361.158, Health and Safety Code.)
  573-2        Sec. 20.159.  License Issuance; Amendment, Extension, and
  573-3  Renewal.  (a)  A county may amend, extend, or renew a license it
  573-4  issues in accordance with county rules.
  573-5        (b)  The procedures prescribed by Section 20.155 apply to an
  573-6  application to amend, extend, or renew a license.
  573-7        (c)  A license for the use of a facility to process, store,
  573-8  or dispose of solid waste may not be issued, amended, renewed, or
  573-9  extended without the prior approval of the commission.
 573-10  (Sec. 361.159, Health and Safety Code.)
 573-11        Sec. 20.160.  License Amendment and Revocation.  (a)  A
 573-12  county may, for good cause, after hearing with notice to the
 573-13  license holder and to the commission, revoke or amend a license it
 573-14  issues for reasons concerning:
 573-15              (1)  public health;
 573-16              (2)  air or water pollution;
 573-17              (3)  land use; or
 573-18              (4)  a violation of this chapter or of other applicable
 573-19  laws or rules controlling the processing, storage, or disposal of
 573-20  solid waste.
 573-21        (b)  For similar reasons, the commission may for good cause
 573-22  amend or revoke a license issued by a county, after hearing with
 573-23  notice to:
 573-24              (1)  the license holder; and
 573-25              (2)  the county that issued the license.
 573-26  (Sec. 361.160, Health and Safety Code.)
 573-27        Sec. 20.161.  Permit From Commission Not Required.  If a
  574-1  county issues, amends, renews, or extends a license in accordance
  574-2  with Sections 20.154-20.160, the owner or operator of the facility
  574-3  is not required to obtain a permit from the commission for the same
  574-4  facility.  (Sec. 361.161, Health and Safety Code.)
  574-5        Sec. 20.162.  Designation of Areas Suitable for Facilities.
  574-6  (a)  Subject to the limitation under Sections 20.151 and 20.152, a
  574-7  county may designate land areas not in the territorial limits or
  574-8  extraterritorial jurisdiction of a municipality as suitable for use
  574-9  as solid waste facilities.
 574-10        (b)  The county shall base a designation on the principles of
 574-11  public health, safety, and welfare, including proper land use,
 574-12  compliance with state statutes, and other pertinent factors.
 574-13  (Sec. 361.162, Health and Safety Code.)
 574-14        Sec. 20.163.  Cooperative Agreements With Local Governments.
 574-15  A county may enter into cooperative agreements with local
 574-16  governments and other governmental entities to jointly operate
 574-17  solid waste management activities and to charge reasonable fees for
 574-18  the services.  (Sec. 361.163, Health and Safety Code.)
 574-19        Sec. 20.164.  Enforcement.  A county may enforce this chapter
 574-20  and the rules adopted by the commission concerning the management
 574-21  of solid waste.  (Sec. 361.164, Health and Safety Code.)
 574-22        Sec. 20.165.  Political Subdivisions With Jurisdiction in Two
 574-23  or More Counties.  (a)  This section applies to a political
 574-24  subdivision of the state that:
 574-25              (1)  has jurisdiction of territory in more than one
 574-26  county; and
 574-27              (2)  has been granted the power by the legislature to
  575-1  regulate solid waste handling or disposal practices or activities
  575-2  in its jurisdiction.
  575-3        (b)  The governing body of the political subdivision may, by
  575-4  resolution, assume for the political subdivision the exclusive
  575-5  authority to exercise, in the area subject to its jurisdiction, the
  575-6  powers granted by this chapter to a county, to the exclusion of the
  575-7  exercise of the same powers by the counties otherwise having
  575-8  jurisdiction over the area.
  575-9        (c)  In the exercise of those powers, the political
 575-10  subdivision is subject to the same duties, limitations, and
 575-11  restrictions applicable to a county under this chapter.
 575-12        (d)  A political subdivision that assumes the authority
 575-13  granted under this section:
 575-14              (1)  serves as the coordinator of all solid waste
 575-15  management practices and activities for municipalities, counties,
 575-16  and other governmental entities in its jurisdiction that have solid
 575-17  waste management regulatory powers or engage in solid waste
 575-18  management practices or activities; and
 575-19              (2)  shall exercise the authority as long as the
 575-20  resolution of the political subdivision is effective.
 575-21  (Sec. 361.165, Health and Safety Code.)
 575-22        Sec. 20.166.  Municipal Restrictions.  A municipality may not
 575-23  abolish or restrict the use or operation of a solid waste facility
 575-24  in its limits or extraterritorial jurisdiction if the solid waste
 575-25  facility:
 575-26              (1)  was in existence when the municipality was
 575-27  incorporated or was in existence when the municipality annexed the
  576-1  area in which it is located; and
  576-2              (2)  is operated in substantial compliance with
  576-3  applicable state and county regulations.  (Sec. 361.166, Health and
  576-4  Safety Code.)
  576-5        Sec. 20.167.  Operation of Facility by Political Subdivision.
  576-6  A municipality or other political subdivision operating a solid
  576-7  waste facility may not be prevented from operating the solid waste
  576-8  facility on the ground that the facility is located in the limits
  576-9  or extraterritorial jurisdiction of another municipality.
 576-10  (Sec. 361.167, Health and Safety Code.)
 576-11            (Sections 20.168-20.180 reserved for expansion)
 576-12                SUBCHAPTER E.  REGISTRY AND CLEANUP OF
 576-13                  CERTAIN HAZARDOUS WASTE FACILITIES
 576-14        Sec. 20.181.  State Registry:  Annual Publication.  (a)  The
 576-15  commission shall annually publish an updated state registry
 576-16  identifying, to the extent feasible, each facility that may
 576-17  constitute an imminent and substantial endangerment to public
 576-18  health and safety or the environment due to a release or threatened
 576-19  release of hazardous substances into the environment.
 576-20        (b)  The registry shall identify the relative priority for
 576-21  action at each listed facility.  The relative priority for action
 576-22  at facilities listed on the registry shall be periodically reviewed
 576-23  and revised by the commission as necessary to accurately reflect
 576-24  the need for action at the facilities.
 576-25        (c)  In this subchapter, "facility" means any building,
 576-26  structure, installation, equipment, pipe, or pipeline (including
 576-27  any pipe into a sewer or publicly owned treatment works, well, pit,
  577-1  pond, lagoon, impoundment, ditch, landfill, storage container,
  577-2  motor vehicle, rolling stock, or aircraft), or any site or area
  577-3  where a hazardous substance has been deposited, stored, disposed
  577-4  of, or placed or otherwise come to be located.  The term does not
  577-5  include any consumer product in consumer use or any vessel.  (Sec.
  577-6  361.181, Health and Safety Code.)
  577-7        Sec. 20.182.  Investigations.  (a)  The executive director
  577-8  may conduct investigations of facilities that are listed on the
  577-9  state registry, or that the executive director has reason to
 577-10  believe should be included on the state registry, in accordance
 577-11  with Sections 2.202, 20.037, and 20.038.
 577-12        (b)  If there is a reasonable basis to believe there may be a
 577-13  release or threatened release of a hazardous substance at a
 577-14  facility, the executive director may submit requests for
 577-15  information and requests for the production of documents to any
 577-16  person who has or may have information or documents relevant to:
 577-17              (1)  the identification, nature, or quantity of
 577-18  materials that have been generated, treated, stored, or disposed of
 577-19  at a facility or transported to a facility;
 577-20              (2)  the identification of soils, groundwater, or
 577-21  surface water at a facility that have been or may be affected by an
 577-22  actual or threatened release of a hazardous substance;
 577-23              (3)  the nature or extent of a release or threatened
 577-24  release of a hazardous substance at or from a facility; or
 577-25              (4)  the ability of a person to pay for or to perform a
 577-26  remedial action.
 577-27        (c)  If the requested information or documents are not
  578-1  produced in a timely manner, the commission may issue an order
  578-2  directing compliance with the requests for information or
  578-3  production of documents.  Information or documents requested under
  578-4  Subsection (b) or this subsection are public records, except that
  578-5  the commission shall consider the copied records as confidential if
  578-6  a showing satisfactory to the commission is made by the owner of
  578-7  the records that the records would divulge trade secrets if made
  578-8  public.  This subsection does not require the commission to
  578-9  consider the composition or characteristics of hazardous substances
 578-10  being processed, stored, disposed of, or otherwise handled to be
 578-11  held confidential.
 578-12        (d)  The commission shall adopt rules regarding the provision
 578-13  of notice and an opportunity for a hearing before the commission on
 578-14  whether the requested information or documents should be produced.
 578-15  (Sec. 361.182, Health and Safety Code.)
 578-16        Sec. 20.183.  Registry Listing Procedure:  Determination of
 578-17  Eligibility.  (a)  Before the listing of a facility on the state
 578-18  registry, the executive director shall determine whether the
 578-19  potential endangerment to public health and safety or the
 578-20  environment at the facility can be resolved by the present owner or
 578-21  operator under the federal Resource Conservation and Recovery Act
 578-22  of 1976 (42 U.S.C. Section 6901) or by some or all of the
 578-23  potentially responsible parties identified in Subchapter G, under
 578-24  an agreed administrative order issued by the commission.
 578-25        (b)  If the potential endangerment to public health and
 578-26  safety or the environment can be resolved in such a manner, the
 578-27  facility may not be listed on the state registry.  Notice of the
  579-1  approach selected to resolve the apparent endangerment to public
  579-2  health and safety or the environment and the fact that this action
  579-3  is being taken in lieu of listing the facility on the state
  579-4  registry shall be published in the Texas Register.
  579-5        (c)  If after reasonable efforts the executive director
  579-6  determines that the potential endangerment to public health and
  579-7  safety or the environment cannot be resolved by either of the
  579-8  approaches under Subsection (a), the executive director shall
  579-9  evaluate the facility to determine whether the site exceeds the
 579-10  commission's minimum criteria for listing on the state registry.
 579-11  The commission by rule shall adopt the minimum criteria.  The
 579-12  executive director shall also evaluate the facility to determine
 579-13  whether it is eligible for listing on the federal National
 579-14  Priorities List.
 579-15        (d)  The commission shall proceed under this subchapter only
 579-16  if, based on information available to the executive director, the
 579-17  facility is eligible for listing on the state registry but not
 579-18  eligible for the federal National Priorities List.  (Sec. 361.183,
 579-19  Health and Safety Code.)
 579-20        Sec. 20.184.  Registry Listing Procedure:  Notices and
 579-21  Hearing.  (a)  If the executive director determines that a facility
 579-22  is eligible for listing on the state registry, the commission shall
 579-23  publish in the Texas Register and in a newspaper of general
 579-24  circulation in the county in which the facility is located a notice
 579-25  of intent to list the facility on the state registry.  The notice
 579-26  shall at least specify the name and location of the facility, the
 579-27  general nature of the potential endangerment to public health and
  580-1  safety or the environment as determined by information available to
  580-2  the executive director at that time, and the duties and
  580-3  restrictions imposed by Subsection (c).  The notice also shall
  580-4  provide that interested parties may do either or both of the
  580-5  following:
  580-6              (1)  submit written comments to the commission relative
  580-7  to the proposed listing of the facility; or
  580-8              (2)  request a public meeting to discuss the proposed
  580-9  listing by submitting a request not later than the 30th day after
 580-10  the date on which the notice is issued.
 580-11        (b)  If the facility is determined to be eligible for listing
 580-12  on the state registry, the executive director shall make all
 580-13  reasonable efforts to identify all potentially responsible parties
 580-14  for remediation of the facility.  Concurrent with the publication
 580-15  of general notice under Subsection (a), the executive director
 580-16  shall provide to each identified potentially responsible party
 580-17  direct, written notification of the proposed listing of the
 580-18  facility on the state registry and of the procedures for requesting
 580-19  a public meeting to discuss the listing and the information
 580-20  included in the general notice as required by Subsection (a).
 580-21  Written notifications under this subsection shall be by certified
 580-22  mail, return receipt requested, to each named responsible party at
 580-23  the party's last known address.
 580-24        (c)  If a public meeting is requested regarding the proposed
 580-25  listing of a facility on the state registry, the commission shall
 580-26  publish general notice of the date, time, and location of the
 580-27  public meeting in the Texas Register and in the same newspaper in
  581-1  which the notice of the opportunity to request the public meeting
  581-2  was published.  The public meeting notice shall be provided not
  581-3  later than the 31st day before the date of the meeting.  Notice of
  581-4  the meeting also shall be provided by certified mail, return
  581-5  receipt requested, to each identified potentially responsible party
  581-6  at the party's last known address.
  581-7        (d)  Nonreceipt of any notice mailed to a potentially
  581-8  responsible party under Subsection (b) or this subsection does not
  581-9  affect the responsibilities, duties, or liabilities imposed on the
 581-10  party.  Contemporaneously with issuing the notice of the public
 581-11  meeting, the executive director shall make available to all
 581-12  interested parties the public records the executive director has
 581-13  regarding the facility.  For the purposes of providing this
 581-14  information, the executive director shall provide a brief summary
 581-15  of those public records and make those public records available for
 581-16  inspection and copying during regular business hours.
 581-17        (e)  A public meeting is legislative in nature and not a
 581-18  contested case hearing under the Administrative Procedure and Texas
 581-19  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
 581-20  The meeting shall be held for the purpose of obtaining additional
 581-21  information regarding the facility relative to the eligibility of
 581-22  the facility for listing on the state registry and the
 581-23  identification of potentially responsible parties.
 581-24        (f)  After the public meeting or after opportunity to request
 581-25  a public meeting has passed, the commission shall file or cause to
 581-26  be filed an affidavit or notice in the real property records of the
 581-27  county in which the facility is located identifying the facility as
  582-1  one proposed for listing on the state registry unless the executive
  582-2  director determines, based on information presented at the public
  582-3  meeting, that efforts to list the facility on the state registry
  582-4  should not be pursued.  (Sec. 361.184, Health and Safety Code.)
  582-5        Sec. 20.185.  Investigation/Feasibility Study.  (a)  After
  582-6  the public meeting or after opportunity to request a public meeting
  582-7  has passed, but before any listing of the facility on the state
  582-8  registry, the commission shall allow all identified potentially
  582-9  responsible parties the opportunity to fund or conduct, if
 582-10  appropriate, a remedial investigation-feasibility study, or a
 582-11  similar study as approved by the executive director, for the
 582-12  facility.  Not later than the 90th day after notice under Section
 582-13  20.184(a) is issued, the potentially responsible parties may make a
 582-14  good faith offer to conduct the study.  If a good faith offer from
 582-15  all or some of the potentially responsible parties is received by
 582-16  the commission within that period, those making the offer have an
 582-17  additional 60 days within which to negotiate an agreed
 582-18  administrative order from the commission, which must include a
 582-19  scope of work.  In the agreed administrative order the commission
 582-20  may not require the participating potentially responsible parties
 582-21  to agree to perform the remedial action or admit liability for the
 582-22  facility remediation.
 582-23        (b)  If no potentially responsible party makes a good faith
 582-24  offer to conduct the remedial investigation-feasibility study or
 582-25  similar study as approved by the executive director or if the
 582-26  participating potentially responsible parties fail to conduct or
 582-27  complete an approved study, the commission may conduct or complete
  583-1  the study using funds from the hazardous waste disposal fee fund.
  583-2        (c)  To encourage potentially responsible parties to perform
  583-3  the remedial investigation-feasibility study or other similar study
  583-4  as approved by the executive director, costs for commission
  583-5  oversight of the study may not be assessed against those parties
  583-6  who fund or perform the study.  Nonparticipating potentially
  583-7  responsible parties who are ultimately determined to be liable for
  583-8  remediation of the facility under this chapter or who subsequently
  583-9  enter into an agreed order relative to the remediation of the
 583-10  facility may be assessed up to the full costs for commission
 583-11  oversight of the study process.  If all potentially responsible
 583-12  parties participate or agree to fund the remedial
 583-13  investigation-feasibility study or other similar study, all
 583-14  commission oversight costs shall be paid from the hazardous waste
 583-15  disposal fee fund.  (Sec. 361.185, Health and Safety Code.)
 583-16        Sec. 20.186.  Facility Eligible for Listing:  Activities and
 583-17  Change of Use.  (a)  If the executive director determines that a
 583-18  facility is eligible for listing on the state registry, a person
 583-19  may not perform at the facility any partial or total removal
 583-20  activities except as authorized by the executive director in
 583-21  appropriate circumstances after notice and opportunity for comment
 583-22  to all other potentially responsible parties.  The commission may
 583-23  adopt rules determining what constitutes an appropriate
 583-24  circumstance to take removal action under this subsection.
 583-25  Authorization by the executive director to conduct a partial or
 583-26  total removal action does not constitute:
 583-27              (1)  a final determination of the party's ultimate
  584-1  liability for remediation of the facility; or
  584-2              (2)  a determination of divisibility.
  584-3        (b)  If the facility is determined to be eligible for listing
  584-4  on the state registry, the owner or operator of the facility must
  584-5  provide the executive director with written notice of any
  584-6  substantial change in use of the facility before the 60th day
  584-7  before the date on which the change in use is made.  Notice of a
  584-8  proposed substantial change in use must be in writing, addressed to
  584-9  the executive director, sent by certified mail, return receipt
 584-10  requested, and include a brief description of the proposed change
 584-11  in use.  A substantial change in use shall be defined by rule and
 584-12  must include actions such as the erection of a building or other
 584-13  structure at the facility, the use of the facility for agricultural
 584-14  production, the paving of the facility for use as a roadway or
 584-15  parking lot, and the creation of a park or other public or private
 584-16  recreational use on the facility.
 584-17        (c)  If, within 30 days after the date of the notice, the
 584-18  executive director determines that the proposed substantial change
 584-19  in use will interfere significantly with a proposed or ongoing
 584-20  remedial investigation-feasibility study or similar study approved
 584-21  by the executive director or expose the public health and safety or
 584-22  the environment to a significantly increased threat of harm, the
 584-23  executive director shall notify the owner or operator of the
 584-24  determination.  After the determination is made and notification
 584-25  given, the owner or operator may not proceed with the proposed
 584-26  substantial change in use.  The owner or operator may request a
 584-27  hearing before the commission on whether the determination should
  585-1  be modified or set aside by submitting a request not later than the
  585-2  30th day after the receipt of the executive director's
  585-3  determination.  If a hearing is requested, the commission shall
  585-4  initiate the hearing not later than the 45th day after the receipt
  585-5  of the request.  The hearing shall be conducted in accordance with
  585-6  the Administrative Procedure and Texas Register Act (Article
  585-7  6252-13a, Vernon's Texas Civil Statutes).  The executive director's
  585-8  determination becomes unappealable on the 31st day after issuance
  585-9  if a hearing is not requested.  (Sec. 361.186, Health and Safety
 585-10  Code.)
 585-11        Sec. 20.187.  Proposed Remedial Action.  (a)  Within a
 585-12  reasonable time after the completion of the remedial
 585-13  investigation-feasibility study or other similar study, if
 585-14  required, the executive director shall select a proposed remedial
 585-15  action.  After the selection of a proposed remedial action, the
 585-16  commission shall hold a public meeting to discuss the proposed
 585-17  action.
 585-18        (b)  The commission shall publish notice of the meeting in
 585-19  the Texas Register and in a newspaper of general circulation in the
 585-20  county in which the facility is located at least 45 days before the
 585-21  date of the public meeting.  The notice shall provide information
 585-22  regarding the proposed remedial action and the date, time, and
 585-23  place of the meeting.  The commission shall also mail the same
 585-24  information to each potentially responsible party by certified
 585-25  mail, return receipt requested, at the party's last known address
 585-26  at least 45 days before the public meeting.  Contemporaneously with
 585-27  the issuance of notice of the public meeting, the executive
  586-1  director shall make available to all interested parties the public
  586-2  records the executive director has regarding the facility.  For
  586-3  purposes of providing this information, the executive director
  586-4  shall provide a brief summary of those public records and make
  586-5  those public records available for inspection and copying during
  586-6  regular business hours.  Nonreceipt of any notice mailed to a
  586-7  potentially responsible party under this section does not affect
  586-8  the responsibilities, duties, or liabilities imposed on the party.
  586-9        (c)  The public meeting is legislative in nature and not a
 586-10  contested case hearing under the Administrative Procedure and Texas
 586-11  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
 586-12  The meeting shall be held for the purpose of obtaining additional
 586-13  information regarding the facility and the identification of
 586-14  additional potentially responsible parties.  Those in attendance
 586-15  may comment on the proposed remedial action, and the executive
 586-16  director may revise the proposed remedial action in light of the
 586-17  presentations.
 586-18        (d)  After the public meeting on the proposed remedial
 586-19  action, the commission shall provide all identified potentially
 586-20  responsible parties an opportunity to fund or perform the proposed
 586-21  remedial action.  Not later than the 60th day after the date of the
 586-22  public meeting, the potentially responsible parties may make a good
 586-23  faith offer to fund or perform the proposed remedial action.  If a
 586-24  good faith offer is made by all or some of the potentially
 586-25  responsible parties within this period, those parties have an
 586-26  additional 60 days to negotiate an agreed administrative order from
 586-27  the commission, which shall include a scope of work.  The
  587-1  commission may not require an admission of liability in the agreed
  587-2  administrative order.
  587-3        (e)  To encourage potentially responsible parties to perform
  587-4  the remedial action, costs for commission oversight of the remedial
  587-5  action may not be assessed against those parties who fund or
  587-6  perform the remedial action.  Nonparticipating potentially
  587-7  responsible parties who are ultimately determined to be liable for
  587-8  remediation of the facility may be assessed up to the full costs
  587-9  for commission oversight of the remedial action.  If all
 587-10  potentially responsible parties conduct or fund the remedial
 587-11  action, all commission oversight costs shall be paid from the
 587-12  hazardous waste disposal fee fund.  Participation in the remedial
 587-13  action does not relieve those who did not conduct or fund the
 587-14  remedial investigation-feasibility study or other similar study
 587-15  approved by the executive director from paying their portion of the
 587-16  oversight costs of that phase of the remediation.
 587-17        (f)  The executive director may authorize a potentially
 587-18  responsible party to conduct a partial remedial action at a portion
 587-19  of the facility if after notice and opportunity for comment to all
 587-20  other potentially responsible parties the executive director
 587-21  determines that the release or threatened release is divisible.  In
 587-22  this subchapter, "divisible" means that the hazardous substance
 587-23  released or threatened to be released is capable of being managed
 587-24  separately under the remedial action plan.  A determination of
 587-25  divisibility by the executive director does not have res judicata
 587-26  or collateral estoppel effect on a potentially responsible party's
 587-27  ultimate liability for remediation of the facility under Sections
  588-1  20.221-20.238 or Subchapter G.  (Sec. 361.187, Health and Safety
  588-2  Code.)
  588-3        Sec. 20.188.  Final Administrative Order.  (a)  After
  588-4  consideration of all good faith offers to perform a remedial
  588-5  action, the commission shall issue a final administrative order
  588-6  that must:
  588-7              (1)  list the facility on the state registry, thus
  588-8  determining that the facility poses an imminent and substantial
  588-9  endangerment to public health and safety or the environment;
 588-10              (2)  specify the selected remedial action;
 588-11              (3)  list the parties determined to be responsible for
 588-12  remediating the facility;
 588-13              (4)  make findings of fact describing actions
 588-14  voluntarily undertaken by responsible parties;
 588-15              (5)  order the responsible parties to remediate the
 588-16  facility and, if appropriate, reimburse the hazardous waste
 588-17  disposal fee fund for remedial investigation-feasibility study and
 588-18  remediation costs;
 588-19              (6)  establish a schedule for completion of the
 588-20  remedial action;
 588-21              (7)  state any determination of divisibility of
 588-22  responsible party liability; and
 588-23              (8)  give notice of the duties and restrictions imposed
 588-24  by Section 20.190.
 588-25        (b)  The provisions in Subchapters G, I, and J  relating to
 588-26  administrative orders apply to orders issued under this section.
 588-27        (c)  If a potentially responsible party is newly identified
  589-1  after a final administrative order under Subsection (a) has been
  589-2  issued by the commission, that party has 60 days to negotiate an
  589-3  amendment to the existing order.  The commission is not prohibited
  589-4  from issuing a separate order for the newly identified potentially
  589-5  responsible party if the commission determines that the
  589-6  circumstances warrant a separate order.  The responsible parties
  589-7  identified in the order issued under Subsection (a) shall be
  589-8  allowed to comment on the issuance of a separate order for the
  589-9  newly identified potentially responsible party.
 589-10        (d)  Within a reasonable period after a determination has
 589-11  been made, the commission shall file or cause to be filed in the
 589-12  real property records of the county in which the facility is
 589-13  located an affidavit or notice stating that the facility has been
 589-14  listed on or deleted from the state registry or is no longer
 589-15  proposed for listing on the state registry.  (Sec. 361.188, Health
 589-16  and Safety Code.)
 589-17        Sec. 20.189.  Deletions from Registry.  (a)  Any owner or
 589-18  operator or other named responsible party of a facility listed or
 589-19  to be listed on the state registry may request the commission to
 589-20  delete the facility from the state registry, modify the facility's
 589-21  priority within the state registry, or modify any information
 589-22  regarding the facility by submitting a written statement setting
 589-23  forth the grounds of the request in the form the commission may by
 589-24  rule require.
 589-25        (b)  The commission by rule shall establish procedures,
 589-26  including public hearings, for review of requests submitted under
 589-27  this section.  (Sec. 361.189, Health and Safety Code.)
  590-1        Sec. 20.190.  Change in Use of Listed Facility.  (a)  After
  590-2  the listing of a facility on the state registry, a person may not
  590-3  substantially change the manner in which the facility is used
  590-4  without notifying the executive director and receiving written
  590-5  approval of the executive director for the change.
  590-6        (b)  A substantial change in use shall be defined by rule and
  590-7  shall include actions such as the erection of a building or other
  590-8  structure at the facility, the use of the facility for agricultural
  590-9  production, the paving of the facility for use as a roadway or
 590-10  parking lot, and the creation of a park or other public or private
 590-11  recreational use on the facility.
 590-12        (c)  The notice must be in writing, addressed to the
 590-13  executive director, sent by certified mail, return receipt
 590-14  requested, and include a brief description of the proposed change
 590-15  in use.
 590-16        (d)  The executive director shall approve or disapprove the
 590-17  proposed action within 60 days after the date of receipt of the
 590-18  notice of proposed change in use.  The executive director may not
 590-19  approve the proposed change in use if the new use will
 590-20  significantly interfere with a proposed, ongoing, or completed
 590-21  remedial action program at a facility or expose the public health
 590-22  and safety or the environment to a significantly increased threat
 590-23  of harm.  (Sec. 361.190, Health and Safety Code.)
 590-24        Sec. 20.191.  Immediate Removal.  (a)  If the commission,
 590-25  after investigation, finds that there exists a release or
 590-26  threatened release of a hazardous substance at a facility that is
 590-27  causing irreversible or irreparable harm to the public health and
  591-1  safety or the environment and that the immediacy of the situation
  591-2  makes it prejudicial to the public interest to delay action until
  591-3  an administrative order can be issued to potentially responsible
  591-4  parties or until a judgment can be entered in an appeal of an
  591-5  administrative order, the commission may, with the funds available
  591-6  to the commission from the hazardous waste disposal fee fund,
  591-7  undertake immediate removal action at the facility to alleviate the
  591-8  harm.
  591-9        (b)  After the immediate danger of irreversible or
 591-10  irreparable harm has been alleviated, the commission shall proceed
 591-11  under this subchapter.
 591-12        (c)  Findings required under this section must be in writing
 591-13  and may be made ex parte by the commission subject to judicial
 591-14  review under the substantial evidence rule as provided by the
 591-15  Administrative Procedure and Texas Register Act (Article 6252-13a,
 591-16  Vernon's Texas Civil Statutes).
 591-17        (d)  The reasonable expenses of any immediate removal action
 591-18  taken by the commission may be recoverable from the persons
 591-19  described in Sections 20.221-20.238 or Subchapter G, and the state
 591-20  may seek to recover the reasonable expenses in any court of
 591-21  appropriate jurisdiction.  (Sec. 361.191, Health and Safety Code.)
 591-22        Sec. 20.192.  Remedial Action by Commission.  (a)  If a
 591-23  person ordered to eliminate an imminent and substantial
 591-24  endangerment to the public health and safety or the environment has
 591-25  failed to do so within the time limits specified in the order or
 591-26  any extension of time approved by the commission, the commission
 591-27  may implement the remedial action program for the facility.
  592-1        (b)  The reasonable expenses of implementing the remedial
  592-2  action program by the commission shall be paid by the persons to
  592-3  whom the order was issued and shall be recoverable under Section
  592-4  20.197.  (Sec. 361.192, Health and Safety Code.)
  592-5        Sec. 20.193.  Goal of Remedial Action.  (a)  The goal of any
  592-6  remedial action is the elimination of the imminent and substantial
  592-7  endangerment to the public health and safety or the environment
  592-8  posed by a release or threatened release of a hazardous substance
  592-9  at a facility.  The appropriate extent of the remedial action at
 592-10  any particular facility shall be determined by the commission's
 592-11  selection of the remedial alternative that the commission
 592-12  determines is the lowest cost alternative that is technologically
 592-13  feasible and reliable and that effectively mitigates and minimizes
 592-14  damage to and provides adequate protection of the public health and
 592-15  safety or the environment.
 592-16        (b)  In considering the appropriate remedial action program
 592-17  at a particular facility, the commission may approve a program that
 592-18  does not attain a level or standard of control at least equivalent
 592-19  to a legally applicable or relevant and appropriate standard,
 592-20  requirement, criterion, or limitation, as required by state or
 592-21  local law, if the commission finds that:
 592-22              (1)  the remedial action selected is only part of a
 592-23  total remedial action that will attain that level or standard of
 592-24  control when completed;
 592-25              (2)  compliance with the requirement at that facility
 592-26  will result in greater risk to public health and safety or the
 592-27  environment than alternative options;
  593-1              (3)  compliance with the requirement is technically
  593-2  impracticable from an engineering perspective;
  593-3              (4)  the remedial action selected will attain a
  593-4  standard of performance that is equivalent to that required under
  593-5  the otherwise applicable standard, requirement, criterion, or
  593-6  limitation through use of another method or approach;
  593-7              (5)  with respect to a local standard, requirement,
  593-8  criterion, or limitation, the locality has not consistently applied
  593-9  or demonstrated the intention to consistently apply the standard,
 593-10  requirement, criterion, or limitation in similar circumstances of
 593-11  other remedial actions within the locality; or
 593-12              (6)  with respect to an action using solely state
 593-13  funds, selection of a remedial action that attains those levels or
 593-14  standards of control will not provide a balance between the need
 593-15  for protection of public health and safety or the environment at
 593-16  the facility and the availability of state funds to respond to
 593-17  other sites that present a threat to public health and safety or
 593-18  the environment, taking into consideration the relative immediacy
 593-19  of the threats.  (Sec. 361.193, Health and Safety Code.)
 593-20        Sec. 20.194.  Lien.  (a)  In addition to all other remedies
 593-21  available to the state under this chapter or other law, all
 593-22  remediation costs for which a person is liable to the state
 593-23  constitute a lien in favor of the state on the real property and
 593-24  the rights to the real property that are subject to or affected by
 593-25  a remedial action.  This provision is cumulative of other remedies
 593-26  available to the state under this chapter.
 593-27        (b)  The lien imposed by this section arises and attaches to
  594-1  the real property subject to or affected by a remedial action at
  594-2  the time an affidavit is recorded and indexed in accordance with
  594-3  this section in the county in which the real property is located.
  594-4  For the purpose of determining rights of all affected parties, the
  594-5  lien does not relate back to a time before the date on which the
  594-6  affidavit is recorded, which date is the lien inception date.  The
  594-7  lien continues until the liability for the costs is satisfied or
  594-8  becomes unenforceable through operation of law.
  594-9        (c)  An authorized representative of the commission shall
 594-10  execute the affidavit.  The affidavit must show:
 594-11              (1)  the names and addresses of the persons liable for
 594-12  the costs;
 594-13              (2)  a description of the real property that is subject
 594-14  to or affected by the remediation action for the costs or claims;
 594-15  and
 594-16              (3)  the amount of the costs and the balance due.
 594-17        (d)  The county clerk shall record the affidavit in records
 594-18  kept for that purpose and shall index the affidavit under the names
 594-19  of the persons liable for the costs.
 594-20        (e)  The commission shall record a relinquishment or
 594-21  satisfaction of the lien when the lien is paid or satisfied.
 594-22        (f)  The lien may be foreclosed only on judgment of a court
 594-23  of competent jurisdiction foreclosing the lien and ordering the
 594-24  sale of the property subject to the lien.
 594-25        (g)  The lien imposed by this section is not valid or
 594-26  enforceable if real property, an interest in real property, or a
 594-27  mortgage, lien, or other encumbrance on or against real property is
  595-1  acquired before the affidavit is recorded, unless the person
  595-2  acquiring the real property, an interest in the property, or the
  595-3  mortgage, lien, or other encumbrance on the property had or
  595-4  reasonably should have had actual notice or knowledge that the real
  595-5  property is subject to or affected by a clean-up action or has
  595-6  knowledge that the state has incurred clean-up costs.
  595-7        (h)  If a lien is fixed or attempted to be fixed as provided
  595-8  by this section, the owner of the real property affected by the
  595-9  lien may file a bond to indemnify against the lien.  The bond must
 595-10  be filed with the county clerk of the county in which the real
 595-11  property subject to the lien is located.  An action to establish,
 595-12  enforce, or foreclose any lien or claim of lien covered by the bond
 595-13  must be brought not later than the 30th day after the date of
 595-14  service of notice of the bond.  The bond must:
 595-15              (1)  describe the real property on which the lien is
 595-16  claimed;
 595-17              (2)  refer to the lien claimed in a manner sufficient
 595-18  to identify it;
 595-19              (3)  be in an amount double the amount of the lien
 595-20  referred to;
 595-21              (4)  be payable to the commission;
 595-22              (5)  be executed by the party filing the bond as
 595-23  principal and a corporate surety authorized under the law of this
 595-24  state to execute the bond as surety; and
 595-25              (6)  be conditioned substantially that the principal
 595-26  and sureties will pay to the commission the amount of the lien
 595-27  claimed, plus costs, if the claim is proved to be a lien on the
  596-1  real property.
  596-2        (i)  After the bond is filed, the county clerk shall issue
  596-3  notice of the bond to the named obligee.  A copy of the bond must
  596-4  be attached to the notice.  The notice may be served on each
  596-5  obligee by having a copy delivered to the obligee by any person
  596-6  competent to make oath of the delivery.  The original notice shall
  596-7  be returned to the office of the county clerk, and the person
  596-8  making service of copy shall make an oath on the back of the copies
  596-9  showing on whom and on what date the copies were served.  The
 596-10  county clerk shall record the bond notice and return in records
 596-11  kept for that purpose.  In acquiring an interest in real property,
 596-12  a purchaser or lender may rely on and is absolutely protected by
 596-13  the record of the bond, notice, and return.
 596-14        (j)  The commission may sue on the bond after the 30th day
 596-15  after the date on which the notice is served but may not sue on the
 596-16  bond later than one year after the date on which the notice is
 596-17  served.  The commission is entitled to recover reasonable
 596-18  attorney's fees if the commission recovers in a suit on the lien or
 596-19  on the bond.  (Sec. 361.194, Health and Safety Code.)
 596-20        Sec. 20.195.  Payments from Hazardous Waste Disposal Fee
 596-21  Fund.  (a)  Money for actions taken or to be taken by the
 596-22  commission in connection with the elimination of an imminent and
 596-23  substantial endangerment to the public health and safety or the
 596-24  environment under this subchapter is payable directly to the
 596-25  commission from the hazardous waste disposal fee fund.  These
 596-26  payments include any costs of inspection or sampling and laboratory
 596-27  analysis of wastes, soils, air, surface water, and groundwater done
  597-1  on behalf of a state agency and the costs of investigations to
  597-2  identify and locate potentially responsible parties.
  597-3        (b)  The commission shall seek remediation of facilities by
  597-4  potentially responsible parties before expenditure of federal or
  597-5  state funds for the remediations.  (Sec. 361.195, Health and Safety
  597-6  Code.)
  597-7        Sec. 20.196.  Remediation:  Permits not Required; Liability.
  597-8  (a)  Potentially responsible parties shall coordinate with ongoing
  597-9  federal and state hazardous waste programs although a state or
 597-10  local permit may not be required for any removal or remedial action
 597-11  conducted on site.
 597-12        (b)  Subject to Section 20.193, the state may enforce any
 597-13  federal or state standard, requirement, criterion, or limitation to
 597-14  which the remedial action would otherwise be required to conform if
 597-15  a permit were required.
 597-16        (c)  An action taken by the person to contain or remove a
 597-17  release or threatened release in accordance with an approved
 597-18  remedial action plan may not be construed as an admission of
 597-19  liability for the release or threatened release.
 597-20        (d)  A person who renders assistance in containing or
 597-21  removing a release or threatened release in accordance with an
 597-22  approved remedial action plan is not liable for any additional
 597-23  remediation costs at the facility resulting solely from acts or
 597-24  omissions of the person in rendering the assistance in compliance
 597-25  with the approvals required by this section, unless the remediation
 597-26  costs were caused by the person's gross negligence or wilful
 597-27  misconduct.
  598-1        (e)  Except as specifically provided by this section, these
  598-2  provisions do not expand or diminish the common law tort liability,
  598-3  if any, of private parties participating in a remediation action
  598-4  for civil damages to third parties.  (Sec. 361.196, Health and
  598-5  Safety Code.)
  598-6        Sec. 20.197.  Cost Recovery.  (a)  The commission shall file
  598-7  a cost recovery action against all responsible parties who have not
  598-8  complied with the terms of an administrative order issued under
  598-9  Section 20.188.  The commission shall file the cost recovery action
 598-10  no later than one year after all remedial action has been
 598-11  completed.
 598-12        (b)  The state may seek a judgment against the noncompliant
 598-13  parties for the total amount of the cost of the remedial action,
 598-14  including costs of any necessary studies and oversight costs, minus
 598-15  the amount agreed to be paid or expended by any other responsible
 598-16  parties under an order issued under Section 20.188.
 598-17        (c)  The action may also include a plea seeking civil
 598-18  penalties for noncompliance with the commission's administrative
 598-19  order and a claim for up to double the state's costs if the
 598-20  responsible party's defenses are determined by the court to be
 598-21  unreasonable, frivolous, or without foundation.  (Sec. 361.197,
 598-22  Health and Safety Code.)
 598-23        Sec. 20.198.  Administrative or Civil Penalty.  (a)  A
 598-24  responsible party named in an administrative order who does not
 598-25  comply with the order is subject to the imposition of
 598-26  administrative or civil penalties under Section 20.240.  The
 598-27  penalties may be assessed only from the date after which the
  599-1  administrative order becomes nonappealable.
  599-2        (b)  The commission may include provisions within an agreed
  599-3  administrative order that stipulate administrative penalty amounts
  599-4  for failure to comply with the order.  The penalty provisions may
  599-5  be applicable to either or both the remedial
  599-6  investigation-feasibility study and remedial action orders.  (Sec.
  599-7  361.198, Health and Safety Code.)
  599-8        Sec. 20.199.  Mixed Funding Program.  The commission by rule
  599-9  shall adopt a mixed funding program in which available money from
 599-10  potentially responsible parties is combined with state or federal
 599-11  funds to clean up a facility in a timely manner.  Use of the state
 599-12  or federal funds in a mixed funding approach does not preclude the
 599-13  state or federal government from seeking recovery of its costs from
 599-14  nonparticipating potentially responsible parties.  (Sec. 361.199,
 599-15  Health and Safety Code.)
 599-16        Sec. 20.200.  De Minimis Settlement.  The commission shall
 599-17  assess and by rule may develop and implement a de minimis
 599-18  settlement program.  Under the program, the commission shall
 599-19  consider the advantages of developing a final settlement with
 599-20  potentially responsible parties that are responsible for only a
 599-21  minor portion of the response costs at a facility because the
 599-22  hazardous substances the party is responsible for are minimal in
 599-23  amount or in hazardous effect by comparison with the hazardous
 599-24  substances attributable to other parties.  (Sec. 361.200, Health
 599-25  and Safety Code.)
 599-26        Sec. 20.201.  Financial Capability and Funding Priority.
 599-27  (a)  The commission may determine whether a potentially responsible
  600-1  party is financially capable of conducting any necessary
  600-2  remediation studies or remedial action.  The commission by rule
  600-3  shall adopt the criteria for determination of financial capability.
  600-4        (b)  If no financially capable, potentially responsible
  600-5  parties exist for a facility, the commission shall issue an
  600-6  administrative order stating its determination that the facility
  600-7  constitutes an imminent and substantial endangerment and that there
  600-8  are no financially capable, potentially responsible parties.  The
  600-9  commission shall then conduct its own remediation study and
 600-10  remedial action, using federal funds if available, or, if federal
 600-11  funds are not available, using state funds from the hazardous waste
 600-12  disposal fee fund.
 600-13        (c)  Generally, the remediation of listed facilities shall be
 600-14  achieved first by private party funding, second with the aid of
 600-15  federal funds, and third, if necessary, with state funds from the
 600-16  hazardous waste disposal fee fund.  (Sec. 361.201, Health and
 600-17  Safety Code.)
 600-18        Sec. 20.202.  Deadline Extensions.  The executive director or
 600-19  the commission may extend any period specified in this section if
 600-20  considered appropriate.  (Sec. 361.202, Health and Safety Code.)
 600-21            (Sections 20.203-20.220 reserved for expansion)
 600-22           SUBCHAPTER F.  ENFORCEMENT: CRIMINAL, CIVIL, AND
 600-23                       ADMINISTRATIVE PENALTIES
 600-24        Sec. 20.221.  Offenses and Criminal Penalties.  (a)  A person
 600-25  commits an offense if the person, acting intentionally or knowingly
 600-26  with respect to the person's conduct:
 600-27              (1)  transports, or causes or permits to be
  601-1  transported, for storage, processing, or disposal, any hazardous
  601-2  waste to any location that does not have all required permits;
  601-3              (2)  stores, processes, exports, or disposes of, or
  601-4  causes to be stored, processed, exported, or disposed of, any
  601-5  hazardous waste without all permits required by the appropriate
  601-6  regulatory agency or in knowing violation of any material condition
  601-7  or requirement of a permit or of an applicable interim status rule
  601-8  or standard;
  601-9              (3)  omits or causes to be omitted material information
 601-10  or makes or causes to be made any false material statement or
 601-11  representation in any application, label, manifest, record, report,
 601-12  permit, plan, or other document filed, maintained, or used to
 601-13  comply with any requirement of this chapter applicable to hazardous
 601-14  waste;
 601-15              (4)  generates, transports, stores, processes, or
 601-16  disposes of, or otherwise handles, or causes to be generated,
 601-17  transported, stored, processed, disposed of, or otherwise handled,
 601-18  hazardous waste, whether the activity took place before or after
 601-19  September 1, 1981, and who knowingly destroys, alters, conceals, or
 601-20  does not file, or causes to be destroyed, altered, concealed, or
 601-21  not filed, any record, application, manifest, report, or other
 601-22  document required to be maintained or filed to comply with the
 601-23  rules of the appropriate regulatory agency adopted under this
 601-24  chapter; or
 601-25              (5)  transports without a manifest, or causes or
 601-26  permits to be transported without a manifest, any hazardous waste
 601-27  required by rules adopted under this chapter to be accompanied by a
  602-1  manifest.
  602-2        (b)  An individual who commits an offense under this section
  602-3  shall be subject on conviction to:
  602-4              (1)  a fine of not less than $100 or more than $50,000
  602-5  for each act of violation and each day of violation;
  602-6              (2)  imprisonment not to exceed five years for a
  602-7  violation under Subsection (a)(1) or (2) or imprisonment not to
  602-8  exceed two years for any other violation under Subsection (a); or
  602-9              (3)  both fine and imprisonment.
 602-10        (c)  A person other than an individual that commits an
 602-11  offense under this section shall be subject on conviction to a fine
 602-12  of not less than $1,000 or more than $250,000.
 602-13        (d)  If it is shown on the trial of an individual that the
 602-14  individual has previously been convicted of an offense under this
 602-15  section, the offense is punishable by:
 602-16              (1)  a fine of not less than $200 or more than $100,000
 602-17  for each day of violation;
 602-18              (2)  imprisonment not to exceed 10 years for a
 602-19  violation under Subsection (a)(1) or (2) or imprisonment not to
 602-20  exceed four years for any other violation under Subsection (a); or
 602-21              (3)  both fine and imprisonment.
 602-22        (e)  If it is shown on the trial of a person other than an
 602-23  individual that the person previously has been convicted of an
 602-24  offense under this section, the offense is punishable by a fine of
 602-25  not less than $2,000 or more than $500,000.
 602-26        (f)  Venue for prosecution for an alleged violation under
 602-27  this section is in the county in which the violation is alleged to
  603-1  have occurred or in Travis County.
  603-2        (g)  A fine recovered through a prosecution brought under
  603-3  this section shall be divided equally between the state and any
  603-4  local government significantly involved in prosecuting the case,
  603-5  except that if the court determines that the state or the local
  603-6  government bore significantly more of the burden of prosecuting the
  603-7  case, it may apportion up to 75 percent of the fine to the
  603-8  government that predominantly prosecuted the case.
  603-9        (h)  In this section, "person" means an individual,
 603-10  corporation, company, association, firm, partnership, joint stock
 603-11  company, foundation, institution, trust, society, union, or any
 603-12  other association of individuals.  (Sec. 361.221, Health and Safety
 603-13  Code.)
 603-14        Sec. 20.222.  Criminal Offenses and Penalties.  (a)  A person
 603-15  commits an offense if the person, acting intentionally or knowingly
 603-16  with respect to the person's conduct:
 603-17              (1)  tampers with, modifies, disables, or fails to use
 603-18  required pollution control or monitoring devices, systems, methods,
 603-19  or practices, unless done in strict compliance with this chapter or
 603-20  with a valid and currently effective order, rule, or permit of the
 603-21  commission;
 603-22              (2)  releases, causes, or permits the release of a
 603-23  hazardous waste that causes or threatens to cause pollution, unless
 603-24  the release is made in strict compliance with all required permits
 603-25  or a valid and currently effective order, rule, or permit of the
 603-26  commission; or
 603-27              (3)  fails to notify or report to the commission as
  604-1  required by this chapter or by a valid and currently effective
  604-2  order, rule, or permit of the commission.
  604-3        (b)  An individual who commits an offense under this section
  604-4  shall be subject on conviction to:
  604-5              (1)  a fine of not less than $500 or more than $100,000
  604-6  for each act of violation and each day of violation;
  604-7              (2)  confinement in jail not to exceed one year; or
  604-8              (3)  both fine and confinement.
  604-9        (c)  A person other than an individual that commits an
 604-10  offense under this section shall be subject on conviction to a fine
 604-11  of not less than $1,000 or more than $250,000 for each act of
 604-12  violation and each day of violation.
 604-13        (d)  If it is shown on the trial of the defendant that the
 604-14  defendant has previously been convicted of the same offense under
 604-15  this section, the maximum punishment is doubled with respect to
 604-16  both the fine and imprisonment.
 604-17        (e)  Venue for prosecution for an alleged violation under
 604-18  this section is in the county in which the violation is alleged to
 604-19  have occurred or in any county to which or through which the
 604-20  hazardous waste was transported.
 604-21        (f)  A fine recovered through a prosecution brought under
 604-22  this section shall be divided equally between the state and any
 604-23  local government significantly involved in prosecuting the case,
 604-24  except that if the court determines that the state or the local
 604-25  government bore significantly more of the burden of prosecuting the
 604-26  case, it may apportion up to 75 percent of the fine to the
 604-27  government that predominantly prosecuted the case.  (Sec. 361.2215,
  605-1  Health and Safety Code.)
  605-2        Sec. 20.223.  Endangerment Offenses.  (a)  A person commits
  605-3  an offense if, acting intentionally or knowingly, the person
  605-4  transports, processes, stores, exports, or disposes of, or causes
  605-5  to be transported, processed, stored, exported, or disposed of,
  605-6  hazardous waste in violation of this chapter and thereby knowingly
  605-7  places any other person in imminent danger of death or serious
  605-8  bodily injury.
  605-9        (b)  An offense under Subsection (a) is punishable for an
 605-10  individual by:
 605-11              (1)  a fine of not less than $2,500 or more than
 605-12  $250,000;
 605-13              (2)  imprisonment for not more than 15 years; or
 605-14              (3)  both fine and imprisonment.
 605-15        (c)  A person, other than an individual, that commits an
 605-16  offense under this section shall be subject on conviction to a fine
 605-17  of not less than $5,000 or more than $1 million.
 605-18        (d)  If an offense committed by an individual under
 605-19  Subsection (a) results in death or serious bodily injury to any
 605-20  person, the individual may be punished by:
 605-21              (1)  a fine of not less than $5,000 or more than
 605-22  $500,000;
 605-23              (2)  imprisonment for not less than two years or more
 605-24  than 30 years; or
 605-25              (3)  both fine and imprisonment.
 605-26        (e)  If an offense committed by a person other than an
 605-27  individual under Subsection (a) results in death or serious bodily
  606-1  injury to any person, the person may be punished by a fine of not
  606-2  less than $10,000 or more than $1,500,000.
  606-3        (f)  For purposes of Subsection (a), in determining whether a
  606-4  defendant who is an individual knew that the violation placed
  606-5  another person in imminent danger of death or serious bodily
  606-6  injury, the defendant is responsible only for the defendant's
  606-7  actual awareness or actual belief possessed.  Knowledge possessed
  606-8  by a person other than the defendant may not be attributed to the
  606-9  defendant.  To prove a defendant's actual knowledge, circumstantial
 606-10  evidence may be used, including evidence that the defendant took
 606-11  affirmative steps to be shielded from relevant information.
 606-12        (g)  A person commits an offense if the person, acting
 606-13  intentionally or knowingly with respect to the person's conduct,
 606-14  transports, processes, stores, exports, or disposes of, or causes
 606-15  to be transported, processed, stored, exported, or disposed of,
 606-16  hazardous waste in violation of this chapter, thereby placing any
 606-17  other person in imminent danger of death or serious bodily injury,
 606-18  unless the conduct charged is done in strict compliance with all
 606-19  required permits or with a valid and currently effective order
 606-20  issued or rule adopted by the commission.
 606-21        (h)  An offense under Subsection (g) is punishable for an
 606-22  individual by:
 606-23              (1)  a fine of not less than $1,500 or more than
 606-24  $150,000;
 606-25              (2)  imprisonment for not more than five years; or
 606-26              (3)  both fine and imprisonment.
 606-27        (i)  An offense under Subsection (g) is punishable for a
  607-1  person other than an individual by a fine of not less than $3,000
  607-2  or more than $300,000.
  607-3        (j)  If an offense committed under Subsection (g) results in
  607-4  death or serious bodily injury to any person, an individual may be
  607-5  punished by:
  607-6              (1)  a fine of not less than $3,000 or more than
  607-7  $300,000;
  607-8              (2)  imprisonment for not less than two years or more
  607-9  than 10 years; or
 607-10              (3)  both fine and imprisonment.
 607-11        (k)  If an offense committed by a person other than an
 607-12  individual under Subsection (g) results in death or serious bodily
 607-13  injury to any person, the person may be punished by a fine of not
 607-14  less than $6,000 or more than $600,000.
 607-15        (l)  A person commits an offense if the person, acting
 607-16  intentionally or knowingly with respect to the person's conduct,
 607-17  releases, causes, or permits the release of a hazardous waste into
 607-18  the environment, thereby placing any other person in imminent
 607-19  danger of death or serious bodily injury, unless the release is
 607-20  made in strict compliance with all required permits or a valid and
 607-21  currently effective order issued or rule adopted by the commission.
 607-22        (m)  An offense under Subsection (l) is punishable for an
 607-23  individual by:
 607-24              (1)  a fine of not less than $1,500 or more than
 607-25  $150,000;
 607-26              (2)  imprisonment for not more than five years; or
 607-27              (3)  both fine and imprisonment.
  608-1        (n)  An offense under Subsection (l) is punishable for a
  608-2  person other than an individual by a fine of not less than $3,000
  608-3  or more than $300,000.
  608-4        (o)  If an offense committed by an individual under
  608-5  Subsection (l) results in death or serious bodily injury to any
  608-6  person, the individual may be punished by:
  608-7              (1)  a fine of not less than $3,000 or more than
  608-8  $300,000;
  608-9              (2)  imprisonment for not less than two years or more
 608-10  than 10 years; or
 608-11              (3)  both fine and imprisonment.
 608-12        (p)  If an offense committed by a person other than an
 608-13  individual under Subsection (l) results in death or serious bodily
 608-14  injury to any person, the person may be punished by a fine of not
 608-15  less than $6,000 or more than $600,000.
 608-16        (q)  A person commits an offense if the person, acting
 608-17  recklessly with respect to the person's conduct, releases, causes,
 608-18  or permits the release of a hazardous waste into the environment,
 608-19  thereby placing any other person in imminent danger of death or
 608-20  serious bodily injury, unless the release is made in strict
 608-21  compliance with all required permits or a valid and currently
 608-22  effective order issued or rule adopted by the commission.
 608-23        (r)  An offense under Subsection (q) is punishable for an
 608-24  individual by:
 608-25              (1)  a fine of not less than $1,000 or more than
 608-26  $100,000;
 608-27              (2)  confinement in jail not to exceed one year; or
  609-1              (3)  both fine and confinement.
  609-2        (s)  An offense under Subsection (q) is punishable for a
  609-3  person other than an individual by a fine of not less than $2,500
  609-4  or more than $250,000.
  609-5        (t)  If an offense committed by an individual under
  609-6  Subsection (q) results in death or serious bodily injury to any
  609-7  person, the individual may be punished by:
  609-8              (1)  a fine of not less than $2,000 or more than
  609-9  $200,000;
 609-10              (2)  confinement for not less than one year or more
 609-11  than two years; or
 609-12              (3)  both fine and confinement.
 609-13        (u)  If an offense committed by a person other than an
 609-14  individual under Subsection (q) results in death or serious bodily
 609-15  injury to any person, the person may be punished by a fine of not
 609-16  less than $5,000 or more than $500,000.
 609-17        (v)  It is an affirmative defense to prosecution under this
 609-18  section that the conduct charged was freely consented to by the
 609-19  person endangered and that the danger and conduct charged were
 609-20  reasonably foreseeable hazards of the person's occupation,
 609-21  business, or profession or a medical treatment or medical or
 609-22  scientific experimentation conducted by professionally approved
 609-23  methods and the person endangered had been made aware of the risks
 609-24  involved before giving consent.
 609-25        (w)  Venue for prosecution for an alleged violation under
 609-26  this section is in the county in which the violation is alleged to
 609-27  have occurred or in Travis County.
  610-1        (x)  A fine recovered through a prosecution brought under
  610-2  this section shall be divided equally between the state and any
  610-3  local government significantly involved in prosecuting the case,
  610-4  except that if the court determines that the state or the local
  610-5  government bore significantly more of the burden of prosecuting the
  610-6  case, it may apportion up to 75 percent of the fine to the
  610-7  government that predominantly prosecuted the case.
  610-8        (y)  In this section, "person" means an individual,
  610-9  corporation, company, association, firm, partnership, joint stock
 610-10  company, foundation, institution, trust, society, union, or any
 610-11  other association of individuals.  (Sec. 361.222, Health and Safety
 610-12  Code.)
 610-13        Sec. 20.224.  Failure to Pay Fees; Criminal Penalties.
 610-14  (a)  A person commits an offense if the person intentionally or
 610-15  knowingly fails to pay a fee required by Section 2.175 or this
 610-16  chapter or by a valid and currently effective order, rule, or
 610-17  permit of the commission.
 610-18        (b)  An offense under this section is punishable by:
 610-19              (1)  a fine of up to twice the amount of the required
 610-20  fee, confinement in jail not to exceed 90 days, or both fine and
 610-21  confinement, for an individual; and
 610-22              (2)  a fine of up to twice the amount of the required
 610-23  fee for a person other than an individual.  (Sec. 361.2225, Health
 610-24  and Safety Code.)
 610-25        Sec. 20.225.  Affirmative Defense.  It is an affirmative
 610-26  defense to prosecution under Sections 20.221, 20.222, 20.223, and
 610-27  20.224 that the person charged was an employee who was carrying out
  611-1  the person's normal activities and was acting under orders from the
  611-2  person's employer, unless the person charged engaged in knowing and
  611-3  wilful violations.  (Sec. 361.2226, Health and Safety Code.)
  611-4        Sec. 20.226.  Civil Penalties.  (a)  A person may not cause,
  611-5  suffer, allow, or permit the collection, storage, handling,
  611-6  transportation, processing, or disposal of solid waste or the use
  611-7  or operation of a solid waste facility to store, process, or
  611-8  dispose of solid waste or to extract materials under Section 20.092
  611-9  in violation of this chapter or a rule, permit, license, or other
 611-10  order of the commission or a county or a political subdivision
 611-11  exercising the authority granted by Section 20.165 in whose
 611-12  jurisdiction the violation occurs.
 611-13        (b)  Any person who violates any provision of this chapter or
 611-14  any rule, permit, license, or order of the commission or a county
 611-15  or a political subdivision exercising the authority granted by
 611-16  Section 20.165 in whose jurisdiction the violation occurs is
 611-17  subject to a civil penalty of not less than $100 or more than
 611-18  $25,000 for each act of violation and for each day of violation, as
 611-19  the court may deem proper, to be recovered in the manner provided
 611-20  by this section.
 611-21        (c)  A civil penalty recovered in a suit first brought by a
 611-22  local government or governments under this chapter shall be equally
 611-23  divided between the state and the local government or governments
 611-24  that first brought the suit, and the state shall deposit its
 611-25  recovery to the credit of the general revenue fund.
 611-26        (d)  The penalties imposed under this section do not apply to
 611-27  failure to pay a fee under Section 2.175 or failure to file a
  612-1  report under Section 20.040.  Subsection (c) does not apply to
  612-2  interest and penalties imposed under Section 2.175(a).  (Sec.
  612-3  361.223, Health and Safety Code.)
  612-4        Sec. 20.227.  Suit by State.  (a)  If it appears that a
  612-5  person has violated, is violating, or is threatening to violate any
  612-6  provision of this chapter or of any rule, permit, or other order of
  612-7  the commission, the commission may request a civil suit to be
  612-8  brought in a district court for:
  612-9              (1)  injunctive relief to restrain the person from
 612-10  continuing the violation or threat of violation;
 612-11              (2)  the assessment and recovery of a civil penalty as
 612-12  provided by this subchapter, as the court may consider proper; or
 612-13              (3)  both the injunctive relief and civil penalty.
 612-14        (b)  At the request of the executive director, the attorney
 612-15  general shall bring and conduct the suit in the name of the state.
 612-16        (c)  The executive director shall refer matters to the
 612-17  attorney general's office for enforcement through civil suit if a
 612-18  person:
 612-19              (1)  is alleged to be operating a new facility without
 612-20  a permit in violation of state law; or
 612-21              (2)  has been the subject of two or more finally issued
 612-22  administrative penalty orders under this chapter for violations
 612-23  occurring at the same facility within two years immediately before
 612-24  the first alleged violation currently under investigation at that
 612-25  facility.
 612-26        (d)  Violations that were reported by the violator or
 612-27  violations consisting of errors in recordkeeping or in
  613-1  self-reporting submissions may not be considered in determining
  613-2  whether Subsection (c) applies.
  613-3        (e)  Even though the criteria of Subsection (c) are met, the
  613-4  attorney general's office and the executive director may agree to
  613-5  resolve any of the alleged violations, before or after referral, by
  613-6  administrative order issued by the commission with the approval of
  613-7  the attorney general.  (Sec. 361.224, Health and Safety Code.)
  613-8        Sec. 20.228.  Suit by County or Political Subdivision.  If it
  613-9  appears that a violation or threat of violation of any provision of
 613-10  this chapter or any rule, permit, license, or other order of the
 613-11  commission, a county, or a political subdivision exercising the
 613-12  authority granted by Section 20.165 has occurred or is occurring in
 613-13  the jurisdiction of that county or political subdivision, the
 613-14  county or political subdivision, in the same manner as the
 613-15  commission, may institute a civil suit in a district court by its
 613-16  own attorney for the injunctive relief or civil penalty, or both,
 613-17  as authorized by Section 20.227, against the person who committed,
 613-18  is committing, or is threatening to commit the violation.  (Sec.
 613-19  361.225, Health and Safety Code.)
 613-20        Sec. 20.229.  Suit by Municipality.  If it appears that a
 613-21  violation or threat of violation of any provision of this chapter
 613-22  or any rule, permit, license, or other order of the commission, a
 613-23  county, or a political subdivision exercising the authority granted
 613-24  by Section 20.165 has occurred or is occurring in a municipality or
 613-25  its extraterritorial jurisdiction, or is causing or will cause
 613-26  injury to or an adverse effect on the health, welfare, or physical
 613-27  property of the municipality or its inhabitants, the municipality,
  614-1  in the same manner as the commission, may institute a civil suit in
  614-2  a district court by its own attorney for the injunctive relief or
  614-3  civil penalty, or both, as authorized by Section 20.227, against
  614-4  the person who committed, is committing, or is threatening to
  614-5  commit the violation.  (Sec. 361.226, Health and Safety Code.)
  614-6        Sec. 20.230.  Venue.  A suit for injunctive relief or for
  614-7  recovery of a civil penalty, or for both, may be brought in:
  614-8              (1)  the county in which the defendant resides;
  614-9              (2)  the county in which the violation or threat of
 614-10  violation occurs; or
 614-11              (3)  Travis County if the suit involves an unpermitted
 614-12  municipal solid waste facility.  (Sec. 361.227, Health and Safety
 614-13  Code.)
 614-14        Sec. 20.231.  Injunction.  (a)  On application for injunctive
 614-15  relief and a finding that a person is violating or threatening to
 614-16  violate any provision of this chapter or of any rule, permit, or
 614-17  other order of the commission, the district court shall grant
 614-18  appropriate injunctive relief.
 614-19        (b)  In a suit brought to enjoin a violation or threat of
 614-20  violation of this chapter or of any rule, permit, license, or order
 614-21  of the commission, a county, or a political subdivision exercising
 614-22  the authority granted by Section 20.165, the court may grant any
 614-23  prohibitory or mandatory injunction warranted by the facts,
 614-24  including a temporary restraining order after notice and hearing, a
 614-25  temporary injunction, and a permanent injunction.  The court shall
 614-26  grant injunctive relief without bond or other undertaking by the
 614-27  governmental entity.  (Sec. 361.228, Health and Safety Code.)
  615-1        Sec. 20.232.  Parties in Suit by Local Government.  In a suit
  615-2  brought by a local government under Section 20.228 or 20.229, the
  615-3  commission is a necessary and indispensable party.  (Sec. 361.229,
  615-4  Health and Safety Code.)
  615-5        Sec. 20.233.  Fees and Costs Recoverable.  If the attorney
  615-6  general or a local government institutes a suit under this
  615-7  subchapter or Subchapter G for injunctive relief, recovery of a
  615-8  civil penalty, or both injunctive relief and a civil penalty, the
  615-9  prevailing party may recover its reasonable attorney's fees, court
 615-10  costs, and reasonable investigative costs incurred in relation to
 615-11  the proceeding.  However, the amount awarded by the court may not
 615-12  exceed $250,000.  (Sec. 361.230, Health and Safety Code.)
 615-13        Sec. 20.234.  Notice of Criminal Conviction.  (a)  In
 615-14  addition to a sentence that may be imposed under this chapter, a
 615-15  person other than an individual that has been convicted of an
 615-16  offense under this chapter may be ordered by the court to give
 615-17  notice of the conviction to any person the court considers
 615-18  appropriate.
 615-19        (b)  On conviction under this chapter, the clerk of the court
 615-20  in which the conviction is returned shall forward a copy of the
 615-21  judgment to the regulatory agency.  (Sec. 361.231, Health and
 615-22  Safety Code.)
 615-23        Sec. 20.235.  Criminal Fine Treated as Judgment in Civil
 615-24  Action.  A fine imposed by a court under this chapter against a
 615-25  person other than an individual shall be entered by the clerk of
 615-26  the court as a judgment against the person.  A fine so entered has
 615-27  the same force and effect and may be enforced in the same manner as
  616-1  a judgment entered in a civil action.  (Sec. 361.232, Health and
  616-2  Safety Code.)
  616-3        Sec. 20.236.  Effect on Certain Other Laws.  Conduct
  616-4  punishable as an offense under this chapter that is also punishable
  616-5  under another law may be prosecuted under either this chapter or
  616-6  the other law.  (Sec. 361.233, Health and Safety Code.)
  616-7        Sec. 20.237.  Defense Excluded.  It is not a defense to
  616-8  prosecution under this chapter that the actor did not know or was
  616-9  not aware of a rule, order, or statute.  (Sec. 361.234, Health and
 616-10  Safety Code.)
 616-11        Sec. 20.238.  Testimonial Immunity.  A party to a criminal
 616-12  offense under this chapter may be required to furnish evidence or
 616-13  testify about the offense.  Evidence or testimony required to be
 616-14  furnished under this chapter or information directly or indirectly
 616-15  derived from that evidence or testimony may not be used against the
 616-16  witness in a criminal case, except a prosecution for aggravated
 616-17  perjury or contempt.  (Sec. 361.235, Health and Safety Code.)
 616-18        Sec. 20.239.  Administrative Penalty by Department.  (a)  The
 616-19  commission may assess a civil penalty against a person as provided
 616-20  by this section if:
 616-21              (1)  the person violates:
 616-22                    (A)  a provision of this chapter that is under
 616-23  the commission's jurisdiction;
 616-24                    (B)  a rule adopted by the commission; or
 616-25                    (C)  an order, license, or permit issued by the
 616-26  commission under this chapter; and
 616-27              (2)  no county, political subdivision, or municipality
  617-1  has instituted a lawsuit and is diligently prosecuting that lawsuit
  617-2  under Section 20.228 or 20.229 against the same person for the same
  617-3  violation.
  617-4        (b)  The amount of the penalty may not exceed $10,000 a day
  617-5  for a person who violates this chapter or a rule, order, license,
  617-6  or permit issued under this chapter.  Each day a violation
  617-7  continues may be considered a separate violation.
  617-8        (c)  In determining the amount of the penalty, the commission
  617-9  shall consider:
 617-10              (1)  the seriousness of the violation, including the
 617-11  nature, circumstances, extent, and gravity of the prohibited act
 617-12  and the hazard or potential hazard created to the health or safety
 617-13  of the public;
 617-14              (2)  the history of previous violations;
 617-15              (3)  the amount necessary to deter future violations;
 617-16              (4)  efforts to correct the violation; and
 617-17              (5)  any other matters that justice may require.
 617-18        (d)  If, after examination of a possible violation and the
 617-19  facts surrounding that possible violation, the commission concludes
 617-20  that a violation has occurred, the commission may issue a
 617-21  preliminary report:
 617-22              (1)  stating the facts that support the conclusion;
 617-23              (2)  recommending that a civil penalty under this
 617-24  section be imposed; and
 617-25              (3)  recommending the amount of the penalty, which
 617-26  shall be based on the seriousness of the violation as determined
 617-27  from the facts surrounding the violation.
  618-1        (e)  Not later than the 10th day after the date on which the
  618-2  report is issued, the commission shall give written notice of the
  618-3  report to the person charged with the violation.  The notice must
  618-4  include:
  618-5              (1)  a brief summary of the charges;
  618-6              (2)  a statement of the amount of the penalty
  618-7  recommended; and
  618-8              (3)  a statement of the right of the person charged to
  618-9  a hearing on the occurrence of the violation, the amount of the
 618-10  penalty, or both.
 618-11        (f)  Not later than the 20th day after the date on which
 618-12  notice is sent, the person charged may give to the executive
 618-13  director written consent to the commission's report, including the
 618-14  recommended penalty, or make a written request for a hearing.
 618-15        (g)  If the person charged with the violation consents to the
 618-16  penalty recommended by the executive director or does not timely
 618-17  respond to the notice, the executive director or the executive
 618-18  director's designee by order shall assess the penalty or order a
 618-19  hearing to be held on the findings and recommendations in the
 618-20  commission's report.  If the executive director or the executive
 618-21  director's designee assesses the penalty, the commission shall give
 618-22  written notice to the person charged of the decision and the person
 618-23  shall pay the penalty.
 618-24        (h)  If the person charged requests or the executive director
 618-25  orders a hearing, the executive director shall order and shall give
 618-26  notice of the hearing.
 618-27        (i)  The hearing shall be held by a hearing examiner
  619-1  designated by the executive director.
  619-2        (j)  The hearing examiner shall make findings of fact and
  619-3  promptly issue to the executive director a written decision as to
  619-4  the occurrence of the violation and a recommendation of the amount
  619-5  of the proposed penalty if a penalty is warranted.
  619-6        (k)  Based on the findings of fact and the recommendations of
  619-7  the hearing examiner, the executive director by order may find that
  619-8  a violation has occurred and assess a civil penalty or may find
  619-9  that no violation occurred.
 619-10        (l)  All proceedings under Subsections (h)-(k) are subject to
 619-11  the Administrative Procedure and Texas Register Act (Article
 619-12  6252-13a, Vernon's Texas Civil Statutes).
 619-13        (m)  The executive director shall give notice of the
 619-14  executive director's decision to the person charged, and if the
 619-15  executive director finds that a violation has occurred and assesses
 619-16  a civil penalty, the executive director shall give written notice
 619-17  to the person charged of:
 619-18              (1)  the executive director's findings;
 619-19              (2)  the amount of the penalty; and
 619-20              (3)  the person's right to judicial review of the
 619-21  executive director's order.
 619-22        (n)  Not later than the 30th day after the date on which the
 619-23  executive director's order is final, the person charged with the
 619-24  penalty shall pay the penalty in full or file a petition for
 619-25  judicial review.
 619-26        (o)  If the person seeks judicial review of the fact of the
 619-27  violation, the amount of the penalty, or both, the person, within
  620-1  the time provided by Subsection (n), shall:
  620-2              (1)  send the amount of the penalty to the executive
  620-3  director for placement in an escrow account; or
  620-4              (2)  post with the executive director a supersedeas
  620-5  bond in a form approved by the executive director for the amount of
  620-6  the penalty, the bond to be effective until judicial review of the
  620-7  order or decision is final.
  620-8        (p)  A person who fails to comply with Subsection (o) waives
  620-9  the right to judicial review, and the executive director may refer
 620-10  the matter to the attorney general for enforcement.
 620-11        (q)  Judicial review of the order or decision of the
 620-12  executive director assessing the penalty shall be under Section 19,
 620-13  Administrative Procedure and Texas Register Act (Article 6252-13a,
 620-14  Vernon's Texas Civil Statutes).
 620-15        (r)  If the penalty is reduced or not assessed, the executive
 620-16  director shall:
 620-17              (1)  remit to the person charged the appropriate amount
 620-18  of any penalty payment plus accrued interest; or
 620-19              (2)  execute a release of the bond if a supersedeas
 620-20  bond has been posted.
 620-21        (s)  The accrued interest on amounts remitted by the
 620-22  executive director shall be paid:
 620-23              (1)  at a rate equal to the rate charged on loans to
 620-24  depository institutions by the New York Federal Reserve Bank; and
 620-25              (2)  for the period beginning on the date the penalty
 620-26  is paid to the executive director under Subsection (o) and ending
 620-27  on the date the penalty is remitted.
  621-1        (t)  A penalty collected under this section shall be
  621-2  deposited to the credit of the general revenue fund.  (Sec.
  621-3  361.251, Health and Safety Code.)
  621-4        Sec. 20.240.  Administrative Penalty by Commission.  (a)  The
  621-5  commission may assess a civil penalty against a person as provided
  621-6  by this section if:
  621-7              (1)  the person violates:
  621-8                    (A)  a provision of this chapter concerning solid
  621-9  waste;
 621-10                    (B)  a rule or order adopted by the commission
 621-11  concerning solid waste; or
 621-12                    (C)  a solid waste permit or registration issued
 621-13  under this chapter; and
 621-14              (2)  no county, political subdivision, or municipality
 621-15  has instituted a lawsuit and is diligently prosecuting that lawsuit
 621-16  under Section 20.228 or 20.229 against the same person for the same
 621-17  violation.
 621-18        (b)  The amount of the penalty may not exceed $10,000 a day
 621-19  for a person who violates this chapter or a rule, order, or permit
 621-20  issued under this chapter.  Each day a violation continues may be
 621-21  considered a separate violation.
 621-22        (c)  In determining the amount of the penalty, the commission
 621-23  shall consider:
 621-24              (1)  the nature, circumstances, extent, duration, and
 621-25  gravity of the prohibited act with special emphasis on the hazard
 621-26  or potential hazard created to the health or safety of the public;
 621-27              (2)  the impact of the violation on a receiving stream
  622-1  or underground water reservoir, on the property owners along a
  622-2  receiving stream or underground water reservoir, and on water users
  622-3  of a receiving stream or underground water reservoir;
  622-4              (3)  with respect to the alleged violator:
  622-5                    (A)  the history and extent of previous
  622-6  violations;
  622-7                    (B)  the degree of culpability, including whether
  622-8  the violation was attributable to mechanical or electrical failures
  622-9  and whether the violation could have been reasonably anticipated
 622-10  and avoided;
 622-11                    (C)  the demonstrated good faith, including
 622-12  actions taken by the alleged violator to rectify the cause of the
 622-13  violation;
 622-14                    (D)  economic benefit gained by the violation;
 622-15  and
 622-16                    (E)  the amount necessary to deter future
 622-17  violations; and
 622-18              (4)  any other matters that justice may require.
 622-19        (d)  If, after examination of a possible violation and the
 622-20  facts surrounding that possible violation, the executive director
 622-21  concludes that a violation has occurred, the executive director may
 622-22  issue a preliminary report:
 622-23              (1)  stating the facts that support the conclusion;
 622-24              (2)  recommending that a civil penalty under this
 622-25  section be imposed; and
 622-26              (3)  recommending the amount of the penalty, which
 622-27  shall be based on the factors prescribed by Subsection (c),
  623-1  including an analysis of each factor for the commission.
  623-2        (e)  Not later than the 10th day after the date on which the
  623-3  report is issued, the executive director shall give written notice
  623-4  of the report to the person charged with the violation.  The notice
  623-5  must include:
  623-6              (1)  a brief summary of the charges;
  623-7              (2)  a statement of the amount of the penalty
  623-8  recommended; and
  623-9              (3)  a statement of the right of the person charged to
 623-10  a hearing on the occurrence of the violation, the amount of the
 623-11  penalty, or both.
 623-12        (f)  Not later than the 20th day after the date on which
 623-13  notice is received, the person charged may give to the commission
 623-14  written consent to the executive director's report, including the
 623-15  recommended penalty, or make a written request for a hearing.
 623-16        (g)  If the person charged with the violation consents to the
 623-17  penalty recommended by the executive director or does not timely
 623-18  respond to the notice, the commission by order shall assess the
 623-19  penalty or order a hearing to be held on the findings and
 623-20  recommendations in the executive director's report.  If the
 623-21  commission assesses the penalty, the commission shall give written
 623-22  notice to the person charged of its decision.
 623-23        (h)  If the person charged requests or the commission orders
 623-24  a hearing, the commission shall order and shall give notice of the
 623-25  hearing.  The commission by order may find that a violation has
 623-26  occurred and may assess a civil penalty, may find that a violation
 623-27  has occurred but that no penalty should be assessed, or may find
  624-1  that no violation has occurred.  In making a penalty decision, the
  624-2  commission shall analyze each factor prescribed by Subsection (c).
  624-3  All proceedings under this subsection are subject to the
  624-4  Administrative Procedure and Texas Register Act (Article 6252-13a,
  624-5  Vernon's Texas Civil Statutes).
  624-6        (i)  The commission shall give notice of its decision to the
  624-7  person charged, and if the commission finds that a violation has
  624-8  occurred and assesses a civil penalty, the commission shall give
  624-9  written notice to the person charged of:
 624-10              (1)  the commission's findings;
 624-11              (2)  the amount of the penalty; and
 624-12              (3)  the person's right to judicial review of the
 624-13  commission's order.
 624-14        (j)  If the commission is required to give notice of a civil
 624-15  penalty under Subsection (g) or (i), the commission shall file
 624-16  notice of its decision in the Texas Register not later than the
 624-17  10th day after the date on which the decision is adopted.
 624-18        (k)  Not later than the 30th day after the date on which the
 624-19  commission's order is final, the person charged with the penalty
 624-20  shall pay the penalty in full or file a petition for judicial
 624-21  review.
 624-22        (l)  If the person seeks judicial review of the fact of the
 624-23  violation, the amount of the penalty, or both, the person, within
 624-24  the time provided by Subsection (k), shall:
 624-25              (1)  send the amount of the penalty to the commission
 624-26  for placement in an escrow account; or
 624-27              (2)  post with the commission a supersedeas bond in a
  625-1  form approved by the commission for the amount of the penalty, the
  625-2  bond to be effective until judicial review of the order or decision
  625-3  is final.
  625-4        (m)  A person who fails to comply with Subsection (l) waives
  625-5  the right to judicial review, and the commission or the executive
  625-6  director may refer the matter to the attorney general for
  625-7  enforcement.
  625-8        (n)  Judicial review of the order or decision of the
  625-9  commission assessing the penalty shall be under Section 19,
 625-10  Administrative Procedure and Texas Register Act (Article 6252-13a,
 625-11  Vernon's Texas Civil Statutes).
 625-12        (o)  The commission may compromise, modify, or remit, with or
 625-13  without conditions, a civil penalty imposed under this section.
 625-14        (p)  Payment of a penalty under this section is full and
 625-15  complete satisfaction of the violation for which the administrative
 625-16  penalty is assessed and precludes any other civil or criminal
 625-17  penalty for the same violation.
 625-18        (q)  A penalty collected under this section shall be
 625-19  deposited to the credit of the general revenue fund.  (Sec.
 625-20  361.252, Health and Safety Code.)
 625-21            (Sections 20.241-20.270 reserved for expansion)
 625-22           SUBCHAPTER G.  ENFORCEMENT; ADMINISTRATIVE ORDERS
 625-23           CONCERNING IMMINENT AND SUBSTANTIAL ENDANGERMENT
 625-24        Sec. 20.271.  Persons Responsible for Solid Waste.  For the
 625-25  purpose of this subchapter, a person is responsible for solid waste
 625-26  if the person:
 625-27              (1)  is any owner or operator of a solid waste
  626-1  facility;
  626-2              (2)  owned or operated a solid waste facility at the
  626-3  time of processing, storage, or disposal of any solid waste;
  626-4              (3)  by contract, agreement, or otherwise, arranged to
  626-5  process, store, or dispose of, or arranged with a transporter for
  626-6  transport to process, store, or dispose of, solid waste owned or
  626-7  possessed by the person, by any other person or entity at:
  626-8                    (A)  the solid waste facility owned or operated
  626-9  by another person or entity that contains the solid waste; or
 626-10                    (B)  the site to which the solid waste was
 626-11  transported that contains the solid waste; or
 626-12              (4)  accepts or accepted any solid waste for transport
 626-13  to a solid waste facility or site selected by the person.  (Sec.
 626-14  361.271, Health and Safety Code.)
 626-15        Sec. 20.272.  Administrative Orders Concerning Imminent and
 626-16  Substantial Endangerment.  (a)  The commission may issue an
 626-17  administrative order to a person responsible for solid waste if it
 626-18  appears that there is an actual or threatened release of solid
 626-19  waste that presents an imminent and substantial endangerment to the
 626-20  public health and safety or the environment:
 626-21              (1)  from a solid waste facility at which solid waste
 626-22  is stored, processed, or disposed of; or
 626-23              (2)  at any site at which one or more of those
 626-24  activities concerning solid waste have been conducted in the past,
 626-25  regardless of whether the activity was lawful at the time.
 626-26        (b)  An administrative order may be issued under this section
 626-27  to:
  627-1              (1)  restrain the person from allowing or continuing
  627-2  the release or threatened release; and
  627-3              (2)  require the person to take any action necessary to
  627-4  provide and implement a cost effective and environmentally sound
  627-5  remedial action plan designed to eliminate the release or
  627-6  threatened release.
  627-7        (c)  An administrative order issued under this section shall:
  627-8              (1)  be delivered to the persons identified by the
  627-9  order by certified mail, return receipt requested;
 627-10              (2)  be delivered by hand delivery to the person
 627-11  identified by the order; or
 627-12              (3)  on failure of delivery of the order by certified
 627-13  mail or hand delivery, be served on the persons by publication:
 627-14                    (A)  once in the Texas Register; and
 627-15                    (B)  once in a newspaper of general circulation
 627-16  in each county in which a person identified by the order had the
 627-17  person's last known address.  (Sec. 361.272, Health and Safety
 627-18  Code.)
 627-19        Sec. 20.273.  Injunction as Alternative to Administrative
 627-20  Order.  The commission may cause a civil suit for injunctive relief
 627-21  to be brought in a district court in the county in which the actual
 627-22  release is occurring or threatened release may occur to:
 627-23              (1)  restrain a person responsible for solid waste
 627-24  under Section 20.271 from allowing or continuing the release or
 627-25  threatened release; and
 627-26              (2)  require the person to take actions necessary to
 627-27  provide and implement a cost effective and environmentally sound
  628-1  remedial action plan designed to eliminate the release or
  628-2  threatened release.  (Sec. 361.273, Health and Safety Code.)
  628-3        Sec. 20.274.  No Prior Notice Concerning Administrative
  628-4  Order.  An administrative order under Section 20.272 does not
  628-5  require prior notice or an adjudicative hearing before the
  628-6  commission.  (Sec. 361.274, Health and Safety Code.)
  628-7        Sec. 20.275.  Defenses.  (a)  A person responsible for solid
  628-8  waste under Section 20.271 is liable under Section 20.272 or 20.273
  628-9  unless the person can establish by a preponderance of the evidence
 628-10  that the release or threatened release was caused solely by:
 628-11              (1)  an act of God;
 628-12              (2)  an act of war;
 628-13              (3)  an act or omission of a third person; or
 628-14              (4)  any combination of Subdivisions (1), (2), and (3).
 628-15        (b)  In a defense under Subsection (a)(3), the defendant must
 628-16  establish by a preponderance of the evidence that the defendant:
 628-17              (1)  exercised due care concerning the solid waste,
 628-18  considering the characteristics of the solid waste, in light of all
 628-19  relevant facts and circumstances; and
 628-20              (2)  took precautions against foreseeable acts or
 628-21  omissions of the third person and the consequences that could
 628-22  foreseeably result from those acts or omissions.
 628-23        (c)  The defense under Subsection (a)(3) does not apply if
 628-24  the third person:
 628-25              (1)  is an employee or agent of the defendant; or
 628-26              (2)  has a direct or indirect contractual relationship
 628-27  with the defendant and the act or omission of the third person
  629-1  occurred in connection with the contractual relationship.
  629-2        (d)  In Subsection (c)(2), "contractual relationship"
  629-3  includes land contracts, deeds, or other instruments transferring
  629-4  title or possession of real property.
  629-5        (e)  A defendant who enters into a contractual relationship
  629-6  as provided by Subsection (c)(2) is not liable under this
  629-7  subchapter if:
  629-8              (1)  the sole contractual relationship is acceptance
  629-9  for rail carriage by a common carrier under a published tariff; or
 629-10              (2)  the defendant acquired the real property on which
 629-11  the facility requiring the remedial action is located, after the
 629-12  disposal or placement of the hazardous substance on, in, or at the
 629-13  facility and the defendant establishes by a preponderance of the
 629-14  evidence that:
 629-15                    (A)  the defendant has satisfied Subsection (b);
 629-16                    (B)  at the time the defendant acquired the
 629-17  facility the defendant did not know and had no reason to know that
 629-18  a hazardous substance that is the subject of the release or
 629-19  threatened release was disposed of on, in, or at the facility;
 629-20                    (C)  the defendant is a governmental entity that
 629-21  acquired the facility by escheat, by other involuntary transfer or
 629-22  acquisition, or by the exercise of the power of eminent domain; or
 629-23                    (D)  the defendant acquired the facility by
 629-24  inheritance or bequest.
 629-25        (f)  To demonstrate the condition under Subsection (e)(2)(B),
 629-26  the defendant must have made, at the time of acquisition,
 629-27  appropriate inquiry into the previous ownership and uses of the
  630-1  property consistent with good commercial or customary practice in
  630-2  an effort to minimize liability.  In deciding whether the defendant
  630-3  meets this condition, the court shall consider:
  630-4              (1)  any specialized knowledge or experience of the
  630-5  defendant;
  630-6              (2)  the relationship of the purchase price to the
  630-7  value of the property if the property were uncontaminated;
  630-8              (3)  commonly known or reasonably ascertainable
  630-9  information about the property;
 630-10              (4)  the obvious presence or likely presence of
 630-11  contamination of the property; and
 630-12              (5)  the defendant's ability to detect the
 630-13  contamination by appropriate inspection.
 630-14        (g)  This section does not decrease the liability of a
 630-15  previous owner or operator of a facility who is liable under this
 630-16  chapter.  If the defendant obtained actual knowledge of the release
 630-17  or threatened release of a hazardous substance at a facility at the
 630-18  time the defendant owned the real property on which the facility is
 630-19  located and subsequently transferred ownership of the property to
 630-20  another person without disclosing that knowledge, the defendant is
 630-21  liable and a defense under this section is not available to the
 630-22  defendant.
 630-23        (h)  Subsections (e)-(g) do not affect the liability under
 630-24  this chapter of a defendant who, by an act or omission, caused or
 630-25  contributed to the release or threatened release of a hazardous
 630-26  substance that is the subject of the action concerning the
 630-27  facility.  (Sec. 361.275, Health and Safety Code.)
  631-1        Sec. 20.276.  Apportionment of Liability.  (a)  If the
  631-2  release or threatened release caused by a person's acts or
  631-3  omissions is proved by a preponderance of the evidence to be
  631-4  divisible, that person is liable only for the elimination of that
  631-5  release or threatened release attributable to the person.  If the
  631-6  release or threatened release is not proved to be divisible,
  631-7  persons liable under Section 20.272 or 20.273 are jointly and
  631-8  severally liable for eliminating the release or threatened release.
  631-9        (b)  In this section, "divisible" means that the waste
 631-10  released or threatened to be released has been and is capable of
 631-11  being managed separately under the remedial action plan.  (Sec.
 631-12  361.276, Health and Safety Code.)
 631-13        Sec. 20.277.  Judgment by State Against Nonsettling Party;
 631-14  Action for Contribution by Nonsettling Party.  (a)  If fewer than
 631-15  all of the persons identified as liable under this subchapter agree
 631-16  with the state to take remedial action to abate an actual or
 631-17  threatened release of solid waste that is an imminent and
 631-18  substantial endangerment to the public health and safety or the
 631-19  environment under an administrative order issued under Section
 631-20  20.272 or an action filed by the state under this subchapter, the
 631-21  state may seek a judgment against a nonsettling person for the
 631-22  total amount of the cost of the remedial action minus that amount
 631-23  the settling persons agree to pay or spend.
 631-24        (b)  In an action for contribution brought by a nonsettling
 631-25  person against a settling person, the nonsettling person has the
 631-26  burden to prove that the amount of cleanup costs that a settling
 631-27  person agreed to pay under an agreement with the state is
  632-1  unreasonable considering the factors under Section 20.343 and the
  632-2  need to undertake timely cleanup action concerning the release or
  632-3  threatened release.  (Sec. 361.277, Health and Safety Code.)
  632-4        Sec. 20.278.  Liability of Engineer or Contractor.  (a)  An
  632-5  engineer or contractor performing a program of remedial action or
  632-6  cleanup of hazardous waste or solid waste under a contract with a
  632-7  state agency or political subdivision of the state is liable under
  632-8  this subchapter for any negligent act or omission or for wilful
  632-9  misconduct that results in an actual or threatened release of
 632-10  hazardous waste or solid waste after the abandonment or conclusion
 632-11  of the program only to the extent that the endangerment to public
 632-12  health and safety or the environment is aggravated as a result of
 632-13  the act, omission, or misconduct.
 632-14        (b)  In this section, "engineer or contractor" means a
 632-15  person, including the employee or subcontractor of the person, who
 632-16  performs a contract for evaluation, planning, designing,
 632-17  engineering, construction, equipment, or auxiliary services in
 632-18  connection with:
 632-19              (1)  identifying a hazardous or solid waste site;
 632-20              (2)  developing a plan to clean up the site; or
 632-21              (3)  supervising or implementing the plan to clean up
 632-22  the site.  (Sec. 361.278, Health and Safety Code.)
 632-23        Sec. 20.279.  Contracts With State.  A state agency
 632-24  contracting for services or products shall consider whether the
 632-25  person proposing to contract with the state has been adjudicated
 632-26  during the preceding three-year period to have committed
 632-27  substantive, nonclerical violations resulting in an actual release
  633-1  of hazardous waste that presented an imminent and substantial
  633-2  danger to the public health and safety or the environment.  (Sec.
  633-3  361.279, Health and Safety Code.)
  633-4        Sec. 20.280.  Remedies Cumulative.  (a)  The remedies under
  633-5  this subchapter are cumulative of all other remedies.
  633-6        (b)  This subchapter does not exempt a person from complying
  633-7  with or being subject to other law.  (Sec. 361.280, Health and
  633-8  Safety Code.)
  633-9            (Sections 20.281-20.300 reserved for expansion)
 633-10             SUBCHAPTER H.  ENFORCEMENT; EMERGENCY ORDER;
 633-11                           CORRECTIVE ACTION
 633-12        Sec. 20.301.  Emergency Order.  (a)  The commission may issue
 633-13  an emergency mandatory or prohibitory order concerning an activity
 633-14  of solid waste management, even if the activity is not covered by a
 633-15  permit, if the commission determines that an emergency requiring
 633-16  immediate action to protect the public health and safety or the
 633-17  environment exists.
 633-18        (b)  The order may be issued without notice and hearing or
 633-19  with notice and hearing the commission considers practicable under
 633-20  the circumstances.
 633-21        (c)  If an emergency order is issued under this section
 633-22  without a hearing, the commission shall set a time and place for a
 633-23  hearing to be held in accordance with the rules of the commission
 633-24  to affirm, modify, or set aside the emergency order.
 633-25        (d)  The requirements of Section 20.088 concerning public
 633-26  notice do not apply to the hearing, but general notice of the
 633-27  hearing shall be given in accordance with the rules of the
  634-1  commission.  (Sec. 361.301, Health and Safety Code.)
  634-2        Sec. 20.302.  Issuance of Order by Commission.  (a)  The
  634-3  commission may issue an order to a person requiring compliance with
  634-4  this chapter and prescribing the corrective action that the person
  634-5  must take to achieve compliance if the person violates:
  634-6              (1)  the provisions of this chapter concerning solid
  634-7  waste under the commission's jurisdiction;
  634-8              (2)  a rule or order adopted by the commission
  634-9  concerning solid waste under the commission's jurisdiction; or
 634-10              (3)  a solid waste permit or registration issued by the
 634-11  commission under this chapter.
 634-12        (b)  The order may be issued instead of or in addition to an
 634-13  order under Section 20.240 assessing an administrative civil
 634-14  penalty.
 634-15        (c)  Judicial review of an order issued under this section is
 634-16  in the district court of the county in which the alleged violation
 634-17  occurred.  (Sec. 361.302, Health and Safety Code.)
 634-18        Sec. 20.303.  Corrective Action.  (a)  The commission shall
 634-19  require corrective action for a release of hazardous waste or
 634-20  hazardous waste constituents from a solid waste management unit at
 634-21  a solid waste processing, storage, or disposal facility that is
 634-22  required to obtain a permit for the management of hazardous waste
 634-23  and whose permit is issued after November 8, 1984, regardless of
 634-24  when the waste is placed in the unit.
 634-25        (b)  The commission shall establish schedules for compliance
 634-26  for the corrective action, if the corrective action cannot be
 634-27  completed before permit issuance, and shall require assurances of
  635-1  financial responsibility for completing the corrective action.
  635-2        (c)  If, before the issuance of a permit, the commission
  635-3  determines that there is or has been a release of hazardous waste
  635-4  into the environment from a facility required to obtain a permit in
  635-5  accordance with an approved state program under Section 3006 of the
  635-6  federal Solid Waste Disposal Act, as amended by the Resource
  635-7  Conservation and Recovery Act of 1976, as amended (42 U.S.C.
  635-8  Section 6901 et seq.), the commission may:
  635-9              (1)  issue an order requiring corrective action or
 635-10  other response measure considered necessary to protect human health
 635-11  or the environment; or
 635-12              (2)  institute a civil action under Section 20.227.
 635-13        (d)  An order issued under this section:
 635-14              (1)  may include a suspension or revocation of
 635-15  authorization to operate;
 635-16              (2)  must state with reasonable specificity the nature
 635-17  of the required corrective action or other response measure; and
 635-18              (3)  must specify a time for compliance.
 635-19        (e)  If any person named in the order does not comply with
 635-20  the order, the commission may assess a civil penalty in accordance
 635-21  with this chapter.  (Sec. 361.303, Health and Safety Code.)
 635-22            (Sections 20.304-20.320 reserved for expansion)
 635-23              SUBCHAPTER I.  APPEALS; JOINDER OF PARTIES
 635-24        Sec. 20.321.  Appeals.  (a)  A person affected by a ruling,
 635-25  order, decision, or other act of the commission may appeal the
 635-26  action by filing a petition in the district court of Travis County.
 635-27        (b)  A person affected by a ruling, order, decision, or other
  636-1  act of a county, or of a political subdivision exercising the
  636-2  authority granted by Section 20.165, may appeal by filing a
  636-3  petition in a district court with jurisdiction in the county or
  636-4  political subdivision.
  636-5        (c)  Except as provided by Section 20.322(a), the petition
  636-6  must be filed not later than the 30th day after the date of the
  636-7  ruling, order, decision, or other act of the governmental entity
  636-8  whose action is appealed.  Service of citation must be accomplished
  636-9  not later than the 30th day after the date on which the petition is
 636-10  filed.
 636-11        (d)  The plaintiff shall pursue the action with reasonable
 636-12  diligence.  The court shall presume that the action has been
 636-13  abandoned if the plaintiff does not prosecute the action within one
 636-14  year after it is filed and shall dismiss the suit on a motion for
 636-15  dismissal made by the governmental entity whose action is appealed
 636-16  unless the plaintiff, after receiving notice, can show good and
 636-17  sufficient cause for the delay.
 636-18        (e)  Except as provided by Section 20.322(e), in an appeal
 636-19  from an action of the commission, a county, or a political
 636-20  subdivision exercising the authority granted by Section 20.165, the
 636-21  issue is whether the action is invalid, arbitrary, or unreasonable.
 636-22  (Sec. 361.321, Health and Safety Code.)
 636-23        Sec. 20.322.  Appeal of Administrative Order Issued Under
 636-24  Section 20.272; Joinder of Parties.  (a)  Any person subject to an
 636-25  administrative order under Section 20.272 may appeal the order by
 636-26  filing a petition before the 46th day after the date of receipt,
 636-27  hand delivery, or publication service of the order.
  637-1        (b)  The plaintiff shall pursue the action with reasonable
  637-2  diligence.  The court shall presume that the action has been
  637-3  abandoned if the plaintiff does not prosecute the action within one
  637-4  year after it is filed and shall dismiss the suit on a motion for
  637-5  dismissal made by the governmental entity whose action is appealed
  637-6  unless the plaintiff, after receiving notice, can show good and
  637-7  sufficient cause for the delay.
  637-8        (c)  The filing of a motion for rehearing under the
  637-9  Administrative Procedure and Texas Register Act (Article 6252-13a,
 637-10  Vernon's Texas Civil Statutes) is not a prerequisite for an appeal
 637-11  of the order.
 637-12        (d)  The person appealing the order must join the commission
 637-13  as a party and may join as parties any other person named as a
 637-14  responsible party in the administrative order and any other person
 637-15  who is or may be liable for the elimination of the actual or
 637-16  threatened release of solid waste or hazardous substances governed
 637-17  by the administrative order.
 637-18        (e)  The filing of the petition does not prevent the
 637-19  commission from proceeding with the remedial action program under
 637-20  Subchapter E  unless the court enjoins the remedial action under
 637-21  its general equity jurisdiction.
 637-22        (f)  The administrative order is final as to a nonappealing
 637-23  party on the 46th day after the date of receipt, hand delivery, or
 637-24  publication service of the order by, to, or on the nonappealing
 637-25  party.
 637-26        (g)  The district court shall uphold the administrative order
 637-27  if the commission proves by a preponderance of the evidence that:
  638-1              (1)  there is an actual or threatened release of solid
  638-2  waste or hazardous substances that is an imminent and substantial
  638-3  endangerment to the public health and safety or the environment;
  638-4  and
  638-5              (2)  the person made subject to the administrative
  638-6  order is liable for the elimination of the release or threatened
  638-7  release, in whole or in part.
  638-8        (h)  If the appropriateness of the selected remedial action
  638-9  is contested in the appeal of the administrative order, the
 638-10  remedial action shall be upheld unless the court determines that
 638-11  the remedy is arbitrary or unreasonable.
 638-12        (i)  A person made a party to the appeal may join as a party
 638-13  any other person who is or may be liable for the elimination of the
 638-14  release or threatened release, but the failure by a party to file
 638-15  an action for contribution or indemnity does not waive any right
 638-16  under this chapter or other law.
 638-17        (j)  In an appeal under this section, the district court on
 638-18  establishing the validity of the order shall issue an injunction
 638-19  requiring any person named or joined against whom liability has
 638-20  been established by the commission or other party to comply with
 638-21  the order.
 638-22        (k)  As between parties determined to be liable under
 638-23  Subchapter G, the court may, as equity requires, apportion cleanup
 638-24  costs in accordance with Section 20.343 and grant any other
 638-25  appropriate relief.  (Sec. 361.322, Health and Safety Code.)
 638-26        Sec. 20.323.  Joinder of Parties in Action Filed by State.
 638-27  (a)  In an action brought by the attorney general under Section
  639-1  20.273 seeking an injunction to eliminate a release or threatened
  639-2  release, the attorney general shall, and a party may, join as a
  639-3  party a person reasonably believed to be liable for the release or
  639-4  threatened release in accordance with Section 20.272.
  639-5        (b)  Failure of the attorney general or a party to name or
  639-6  join a person as a party is not a defense to an action against that
  639-7  person for contribution or indemnity.
  639-8        (c)  In an action brought by the attorney general under
  639-9  Section 20.273, the district court shall grant relief on the
 639-10  grounds provided by Section 20.322(d), and Sections 20.322(f) and
 639-11  (g) apply to the action.  (Sec. 361.323, Health and Safety Code.)
 639-12            (Sections 20.324-20.340 reserved for expansion)
 639-13                     SUBCHAPTER J.  COST RECOVERY
 639-14        Sec. 20.341.  Cost Recovery by State.  (a)  The state is
 639-15  entitled to recover reasonable attorney's fees, reasonable costs to
 639-16  prepare and provide witnesses, and reasonable costs of
 639-17  investigating and assessing the facility or site if it prevails in:
 639-18              (1)  an appeal of an administrative order issued under
 639-19  Section 20.272 or Section 20.188;
 639-20              (2)  an action to enforce such an administrative order;
 639-21              (3)  a civil suit seeking injunctive relief under
 639-22  Section 20.273; or
 639-23              (4)  a cost recovery suit under Section 20.197.
 639-24        (b)  The court shall apportion the costs among liable parties
 639-25  as it determines is equitable and just.
 639-26        (c)  All such costs recovered by the state under Subchapter E
 639-27  shall be remitted to the commission and deposited to the credit of
  640-1  a separate account of the hazardous waste disposal fee fund.  All
  640-2  other costs recovered by the state under Sections 20.271 through
  640-3  20.277 shall be remitted to the commission and deposited to the
  640-4  credit of a separate account of the hazardous waste generation and
  640-5  facility fees fund.
  640-6        (d)  If an appeal or third party claim is found by the court
  640-7  to be frivolous, unreasonable, or without foundation, the court may
  640-8  assess damages against the party bringing the appeal or third party
  640-9  claim in an amount not to exceed twice the costs incurred by the
 640-10  state or the third party defendant, including reasonable attorney's
 640-11  fees, reasonable costs of preparing and providing witnesses, and
 640-12  reasonable costs of studies, analyses, engineering reports, tests,
 640-13  or other projects the court finds were necessary for the
 640-14  preparation of the party's case.  (Sec. 361.341, Health and Safety
 640-15  Code.)
 640-16        Sec. 20.342.  Cost Recovery by Appealing or Contesting Party.
 640-17  If the court finds that an administrative order referred to by
 640-18  Section 20.341 is frivolous, unreasonable, or without foundation
 640-19  with respect to a party named by the order, the party appealing or
 640-20  contesting the order is entitled to recover from the state its
 640-21  reasonable:
 640-22              (1)  attorney's fees;
 640-23              (2)  costs to prepare and provide witnesses; and
 640-24              (3)  costs of studies, analyses, engineering reports,
 640-25  tests, or other projects the court finds were necessary to prepare
 640-26  the party's case.  (Sec. 361.342, Health and Safety Code.)
 640-27        Sec. 20.343.  Apportionment of Costs.  (a)  Apportionment of
  641-1  costs for the elimination of the release or threatened release of
  641-2  solid waste among the persons responsible for solid waste under
  641-3  Section 20.271 shall be made according to:
  641-4              (1)  the relationship between the parties' actions in
  641-5  storing, processing, and disposing of solid waste and the remedy
  641-6  required to eliminate the release or threatened release;
  641-7              (2)  the volume of solid waste each party is
  641-8  responsible for at the solid waste facility or site to the extent
  641-9  that the costs of the remedy are based on the volume of solid waste
 641-10  present;
 641-11              (3)  consideration of toxicity or other waste
 641-12  characteristics if those characteristics affect the cost to
 641-13  eliminate the release or threatened release; and
 641-14              (4)  a party's cooperation with state agencies, its
 641-15  cooperation or noncooperation with the pending efforts to eliminate
 641-16  the release or threatened release, or a party's actions concerning
 641-17  storing, processing, or disposing of solid waste, as well as the
 641-18  degree of care that the party exercised.
 641-19        (b)  The apportionment of costs only adjusts the rights of
 641-20  parties identified by Section 20.271 and does not affect a person's
 641-21  liability to the state.  (Sec. 361.343, Health and Safety Code.)
 641-22        Sec. 20.344.  Cost Recovery by Liable Party or Third Party.
 641-23  (a)  A person subject to a court injunction or an administrative
 641-24  order issued under this chapter, in addition to having the right to
 641-25  file an action for contribution or indemnity, or both, in an appeal
 641-26  proceeding or in an action brought by the attorney general, may
 641-27  bring suit in a district court to recover costs incurred to
  642-1  eliminate the release or threatened release and other costs as the
  642-2  court, in its discretion, considers reasonable.
  642-3        (b)  Venue for the suit is:
  642-4              (1)  in the county in which the release or threatened
  642-5  release is or was located; or
  642-6              (2)  in any other county in which venue is proper under
  642-7  Chapter 15, Civil Practice and Remedies Code.
  642-8        (c)  To recover costs under this section in a proceeding that
  642-9  is not an appeal proceeding or an action brought by the attorney
 642-10  general under this subchapter, the person seeking cost recovery
 642-11  must have made reasonable attempts to notify the person against
 642-12  whom cost recovery is sought:
 642-13              (1)  of the existence of the release or threatened
 642-14  release; and
 642-15              (2)  that the person seeking cost recovery intended to
 642-16  take steps to eliminate the release or threatened release.
 642-17        (d)  The court shall determine the amount of cost recovery
 642-18  according to the criteria prescribed by Section 20.343.
 642-19        (e)  A fact determination or ruling by a district court in an
 642-20  appeal of an administrative order under Section 20.322 is not res
 642-21  judicata or collateral estoppel as to an issue brought in a
 642-22  proceeding under this section concerning a party not joined in the
 642-23  appeal.  (Sec. 361.344, Health and Safety Code.)
 642-24        Sec. 20.345.  Creation of Rights.  Subchapter G  and Section
 642-25  20.344 and the enforcement by the commission of that subchapter and
 642-26  section do not:
 642-27              (1)  create rights or causes of action on behalf of a
  643-1  person other than those expressly stated by this chapter; or
  643-2              (2)  change common law or a rule of decision except as
  643-3  limited by this chapter to actions by the commission to eliminate
  643-4  an actual release or threatened release of solid waste that is an
  643-5  imminent and substantial endangerment to the public health and
  643-6  safety or the environment.  (Sec. 361.345, Health and Safety Code.)
  643-7            (Sections 20.346-20.400 reserved for expansion)
  643-8           SUBCHAPTER K. REMOVAL AND REMEDIATION AGREEMENTS
  643-9        Sec. 20.401.  Definitions.  In this subchapter:
 643-10              (1)  "Disposal facility" means a site or area at which
 643-11  a hazardous substance, pollutant, or contaminant has been
 643-12  deposited, stored, disposed of, or placed or otherwise come to be
 643-13  located that no longer receives hazardous substances, pollutants,
 643-14  and contaminants.
 643-15              (2)  "Fund" means the hazardous waste disposal fee
 643-16  fund.
 643-17              (3)  "Petroleum" means crude oil or any fraction of
 643-18  crude oil that is not otherwise listed or designated as a hazardous
 643-19  substance under Section 20.003.
 643-20              (4)  "Pollutant" or "contaminant" means any element,
 643-21  substance, compound, or mixture, including disease-causing agents,
 643-22  that after release into the environment and on exposure, ingestion,
 643-23  inhalation, or assimilation into any organism, either directly from
 643-24  the environment or indirectly by ingestion through food chains,
 643-25  will or may reasonably be anticipated to cause death, disease,
 643-26  behavioral abnormalities, cancer, genetic mutation, physiological
 643-27  malfunctions, including malfunctions in reproduction, or physical
  644-1  deformations in the organism or its offspring.  The term does not
  644-2  include petroleum, natural gas, liquefied natural gas, synthetic
  644-3  gas of pipeline quality, or mixtures of natural gas and synthetic
  644-4  gas.
  644-5              (5)  "Removal" means:
  644-6                    (A)  cleaning up or removing released hazardous
  644-7  substances, pollutants, or contaminants from the environment;
  644-8                    (B)  taking necessary action in the event of the
  644-9  threat of release of hazardous substances, pollutants, or
 644-10  contaminants into the environment;
 644-11                    (C)  taking necessary action to monitor, assess,
 644-12  and evaluate the release or threat of release of hazardous
 644-13  substances, pollutants, or contaminants;
 644-14                    (D)  disposing of removed material;
 644-15                    (E)  erecting security fencing or taking other
 644-16  measures to limit access;
 644-17                    (F)  providing alternate water supplies;
 644-18                    (G)  temporarily evacuating and housing
 644-19  threatened individuals not otherwise provided for;
 644-20                    (H)  taking action under Section 104(b) of the
 644-21  environmental response law;
 644-22                    (I)  providing any emergency assistance under the
 644-23  Disaster Relief Act of 1974 (42 U.S.C. Section 5121 et seq.); and
 644-24                    (J)  taking other action as may be necessary to
 644-25  prevent, minimize, or mitigate damage to the public health and
 644-26  safety or to the environment that may otherwise result from a
 644-27  release or threat of release.
  645-1              (6)  "Remedial action" means an action consistent with
  645-2  a permanent remedy taken instead of or in addition to removal
  645-3  actions in the event of a release or threatened release of a
  645-4  hazardous substance, pollutant, or contaminant into the environment
  645-5  to prevent or minimize the release of hazardous substances,
  645-6  pollutants, or contaminants so that they do not migrate to cause
  645-7  substantial danger to present or future public health and safety or
  645-8  the environment.  The term:
  645-9                    (A)  includes:
 645-10                          (i)  actions at the location of the
 645-11  release, including storage, confinement, perimeter protection using
 645-12  dikes, trenches, or ditches, clay cover, neutralization, cleanup of
 645-13  released hazardous substances, pollutants, contaminants, or
 645-14  contaminated materials, recycling or reuse, diversion, destruction,
 645-15  segregation of reactive wastes, dredging or excavations, repair or
 645-16  replacement of leaking containers, collections of leachate and
 645-17  runoff, on-site treatment or incineration, provision of alternate
 645-18  water supplies, and any monitoring reasonably required to assure
 645-19  that those reactions protect the public health and safety or the
 645-20  environment; and
 645-21                          (ii)  the costs of permanent relocation of
 645-22  residents and businesses and community facilities where the
 645-23  president of the United States determines that alone or in
 645-24  combination with other measures this relocation is more
 645-25  cost-effective than and environmentally preferable to the
 645-26  transportation, storage, treatment, destruction, or secure
 645-27  disposition off site of hazardous substances, pollutants, or
  646-1  contaminants or may otherwise be necessary to protect the public
  646-2  health or safety; but
  646-3                    (B)  does not include off-site transport of
  646-4  hazardous substances or the storage, treatment, destruction, or
  646-5  secure disposition off site of the hazardous substances,
  646-6  pollutants, contaminants, or contaminated materials unless the
  646-7  president of the United States determines that those actions:
  646-8                          (i)  are more cost-effective than other
  646-9  remedial actions;
 646-10                          (ii)  will create new capacity to manage,
 646-11  in compliance with Subtitle C of the federal Solid Waste Disposal
 646-12  Act (42 U.S.C. Section 6921 et seq.), hazardous substances in
 646-13  addition to those located at the affected facility; or
 646-14                          (iii)  are necessary to protect the public
 646-15  health and safety or the environment from a present or potential
 646-16  risk that may be created by further exposure to the continued
 646-17  presence of those substances, pollutants, contaminants, or
 646-18  materials.
 646-19              (7)  "Response" means removal and remedial action.
 646-20  (Sec. 361.401, Health and Safety Code.)
 646-21        Sec. 20.402.  Commission Duties and Powers.  (a)  The
 646-22  commission shall:
 646-23              (1)  administer this subchapter; and
 646-24              (2)  cooperate with municipalities and with agencies,
 646-25  departments, and political subdivisions of this state and the
 646-26  United States and its agencies in implementing this section and the
 646-27  environmental response law.
  647-1        (b)  The commission may:
  647-2              (1)  enter into contracts and cooperative agreements
  647-3  with the federal government to carry out removal and remedial
  647-4  action for a specific disposal facility as authorized by Section
  647-5  104(c)(3) of the environmental response law or to carry out removal
  647-6  and remedial action with regard to a disposal facility under
  647-7  Section 104(d)(1) of the environmental response law;
  647-8              (2)  after notice and hearing, authorize the executive
  647-9  director to enter into contracts and cooperative agreements on
 647-10  behalf of the commission under Subdivision (1) under terms and
 647-11  conditions stated in the commission's order; and
 647-12              (3)  when acting under a cooperative agreement with the
 647-13  federal government under Subdivision (1), undertake the enforcement
 647-14  and remedial actions authorized under the environmental response
 647-15  law as may be reasonably necessary, in lieu of or in conjunction
 647-16  with actions by the federal government.  (Sec. 361.402, Health and
 647-17  Safety Code.)
 647-18        Sec. 20.403.  Terms and Conditions of Agreements; Costs.
 647-19  (a)  If the commission enters into a contract or cooperative
 647-20  agreement under Section 104(c)(3) of the environmental response
 647-21  law, the commission shall include in the contract or agreement
 647-22  terms and conditions to:
 647-23              (1)  assure future maintenance of the removal and
 647-24  remedial actions provided for the expected life of those actions as
 647-25  determined by the federal government;
 647-26              (2)  assure the availability of a hazardous waste
 647-27  disposal facility acceptable to the federal government that
  648-1  complies with Subchapter III of the federal Solid Waste Disposal
  648-2  Act (42 U.S.C. Section 6921 et seq.) for any necessary off-site
  648-3  storage, destruction, treatment, or secure disposition of the
  648-4  hazardous substances, pollutants, or contaminants; and
  648-5              (3)  assure payment by the state of:
  648-6                    (A)  10 percent of the costs of the remedial
  648-7  actions, including future maintenance; or
  648-8                    (B)  at least 50 percent or more of the costs as
  648-9  determined appropriate by the federal government, taking into
 648-10  account the degree of responsibility of the state for any amount
 648-11  spent in response to a release at a disposal facility that was
 648-12  owned by the state at the time of disposal of hazardous substances
 648-13  at the disposal facility.
 648-14        (b)  A contract entered into with the federal government
 648-15  under Section 104(d)(1) of the environmental response law is
 648-16  subject to the same cost-sharing requirements provided for
 648-17  contracts in Subsection (a)(3).
 648-18        (c)  The state's share of reasonable response costs shall be
 648-19  paid from the fund.  (Sec. 361.403, Health and Safety Code.)
 648-20        Sec. 20.404.  Cooperation With Federal Government.
 648-21  (a)  Before entering into a contract or cooperative agreement under
 648-22  Section 20.402, the commission shall consult and work with the
 648-23  federal government in determining the response that will be
 648-24  necessary under the contract or cooperative agreement with regard
 648-25  to the particular disposal facility.
 648-26        (b)  The commission shall collect and shall file with the
 648-27  federal government any information required by the environmental
  649-1  response law  and rules adopted under that law.  (Sec. 361.404,
  649-2  Health and Safety Code.)
  649-3        Sec. 20.405.  Indemnification of Engineer or Contractor.
  649-4  (a)  Notwithstanding any other law or rule, the commission may
  649-5  agree in a contract retaining an engineer or contractor to perform
  649-6  a program of removal, remedial action, or cleanup of a hazardous
  649-7  substance in connection with a contract or cooperative agreement
  649-8  under Section 20.402 to indemnify the engineer or contractor
  649-9  against any claim or liability arising from an actual or threatened
 649-10  release of a hazardous substance that occurs during the performance
 649-11  of any work, including:
 649-12              (1)  damages arising from economic loss, personal
 649-13  injury, property damages, or death;
 649-14              (2)  costs and expenses, including the cost of defense
 649-15  of a lawsuit brought against the engineer or contractor; and
 649-16              (3)  claims by third parties for indemnification,
 649-17  contribution, or damages for economic loss, personal injury,
 649-18  property damages, or death.
 649-19        (b)  In determining whether to contract to indemnify an
 649-20  engineer or contractor under this section, the commission shall
 649-21  consider the availability of insurance to the engineer or
 649-22  contractor for the claims and liabilities against which the
 649-23  commission may indemnify the engineer or contractor under this
 649-24  section on the date the engineer or contractor enters into a
 649-25  contract to perform services covered by this section.  The
 649-26  commission may not contract to indemnify an engineer or contractor
 649-27  under this section if the engineer or contractor cannot demonstrate
  650-1  that insurance is unavailable at a reasonable cost or if another
  650-2  engineer or contractor submitting a comparable proposal
  650-3  demonstrates that insurance is available at a reasonable cost.
  650-4        (c)  The commission is not obligated to award a contract if
  650-5  it determines that adequate liability insurance is not available to
  650-6  an engineer or contractor and that the award of the contract is not
  650-7  in the public interest.
  650-8        (d)  The commission may not contract to indemnify an engineer
  650-9  or contractor under this section unless the federal government
 650-10  agrees in a contract or cooperative agreement to indemnify in turn
 650-11  the commission under Section 119 of the environmental response law.
 650-12  The commission's decision to contract or not to contract to
 650-13  indemnify an engineer or contractor may be made as an executive act
 650-14  without an adjudicative public hearing and is not subject to
 650-15  judicial review.
 650-16        (e)  An engineer or contractor performing a program of
 650-17  removal, remedial action, or cleanup of a hazardous substance under
 650-18  a contract entered into in connection with a contract or
 650-19  cooperative agreement under Section 20.402 that results in an
 650-20  actual or threatened release of hazardous substance is not liable
 650-21  under Section 20.221, 20.226 through 20.232, or 20.240 for an act
 650-22  or a failure to act during the performance of the contract.  This
 650-23  subsection does not in any way limit or otherwise affect the
 650-24  liability of an engineer or contractor in any other action.
 650-25        (f)  Subsections (a) and (e) do not apply to a grossly
 650-26  negligent act or omission or to wilful misconduct of an engineer or
 650-27  contractor during the performance of a contract.  Notwithstanding
  651-1  any other law, an engineer or contractor performing a program of
  651-2  removal, remedial action, or cleanup of a hazardous substance under
  651-3  a contract entered into in connection with a contract or
  651-4  cooperative agreement under Section 20.402 is liable for a grossly
  651-5  negligent act or omission or for wilful misconduct that results in
  651-6  an actual or threatened release of a hazardous substance in
  651-7  violation of Sections 20.221-20.238 or Subchapter G, or Section
  651-8  20.240, only to the extent that the act, omission, or misconduct
  651-9  caused the violation.
 651-10        (g)  In this section, "engineer or contractor" means a
 651-11  person, including the employee or subcontractor of the person, who
 651-12  performs a contract for evaluation, planning, designing,
 651-13  engineering, construction, equipment, or auxiliary services in
 651-14  connection with the identification of a site containing a hazardous
 651-15  substance, the development of a plan of response to the site, or
 651-16  the supervision or performance of the response to the site.  (Sec.
 651-17  361.405, Health and Safety Code.)
 651-18            (Sections 20.406-20.430 reserved for expansion)
 651-19                   SUBCHAPTER L.  PLASTIC CONTAINERS
 651-20        Sec. 20.431.  Definitions.  In this subchapter:
 651-21              (1)  "Plastic" means a material made of polymeric
 651-22  organic compounds and additives that can be shaped by flow.
 651-23              (2)  "Plastic bottle" means a plastic container that:
 651-24                    (A)  has a neck smaller than the body of the
 651-25  container;
 651-26                    (B)  is designed for a screw top, snap cap, or
 651-27  other closure; and
  652-1                    (C)  has a capacity of not less than 16 fluid
  652-2  ounces or more than five gallons.
  652-3              (3)  "Rigid plastic container" means a formed or molded
  652-4  container, other than a plastic bottle, that:
  652-5                    (A)  is intended for single use;
  652-6                    (B)  is composed predominantly of plastic resin;
  652-7                    (C)  has a relatively inflexible finite shape or
  652-8  form; and
  652-9                    (D)  has a capacity of not less than eight ounces
 652-10  or more than five gallons.  (Sec. 369.001, Health and Safety Code.)
 652-11        Sec. 20.432.  Symbols for Certain Plastic Containers.  (a)  A
 652-12  person may not manufacture or distribute a plastic bottle or rigid
 652-13  plastic container unless the appropriate symbol indicating the
 652-14  plastic resin used to produce the bottle or container is molded
 652-15  into or imprinted on the bottom or near the bottom of the bottle or
 652-16  container.
 652-17        (b)  A plastic bottle or rigid plastic container with a base
 652-18  cup or other component of a material different from the basic
 652-19  material used in making the bottle or container must bear the
 652-20  symbol indicating its basic material.
 652-21        (c)  The symbols used under this section must consist of a
 652-22  number placed within a triangle of arrows and of letters placed
 652-23  below the triangle of arrows.   The triangle must be equilateral,
 652-24  formed by three arrows with the apex of each point of the triangle
 652-25  at the midpoint of each arrow, rounded with a short radius.  The
 652-26  arrowhead of each arrow must be at the midpoint of each side of the
 652-27  triangle with a short gap separating the arrowhead from the base of
  653-1  the adjacent arrow.  The triangle formed by the arrows must depict
  653-2  a clockwise path around the number.
  653-3        (d)  The numbers, letters of the symbols, and the plastic
  653-4  resins represented by the symbols are:
  653-5              (1)  1 and PETE, representing polyethylene
  653-6  terephthalate;
  653-7              (2)  2 and HDPE, representing high density
  653-8  polyethylene;
  653-9              (3)  3 and V, representing vinyl;
 653-10              (4)  4 and LDPE, representing low density polyethylene;
 653-11              (5)  5 and PP, representing polypropylene;
 653-12              (6)  6 and PS, representing polystyrene; and
 653-13              (7)  7 and OTHER, representing all other resins,
 653-14  including layered plastics of a combination of materials.
 653-15        (e)  The commission shall:
 653-16              (1)  maintain a list of the symbols; and
 653-17              (2)  provide a copy of that list to any person on
 653-18  request.  (Sec. 369.002, Health and Safety Code.)
 653-19        Sec. 20.433.  Penalty.  (a)  A person who violates Section
 653-20  20.432(a) or (b) is subject to a civil penalty not to exceed $500
 653-21  for each act of violation.
 653-22        (b)  If it appears that a person has violated or is violating
 653-23  Section 20.432, the attorney general or a district attorney,
 653-24  criminal district attorney, or county attorney shall institute and
 653-25  conduct a suit in the name of this state to recover the civil
 653-26  penalty imposed under this section.
 653-27        (c)  A civil penalty recovered under this section shall be
  654-1  deposited:
  654-2              (1)  in the state treasury if the attorney general
  654-3  brings the suit; or
  654-4              (2)  in the general fund of the county in which the
  654-5  violation occurred if a district attorney, criminal district
  654-6  attorney, or county attorney brings the suit.  (Sec. 369.003,
  654-7  Health and Safety Code.)
  654-8            (Sections 20.434-20.450 reserved for expansion)
  654-9                  SUBCHAPTER M.  LEAD ACID BATTERIES
 654-10        Sec. 20.451.  Land Disposal Prohibited.  (a)  A person may
 654-11  not place a used lead-acid battery in mixed municipal solid waste
 654-12  or discard or otherwise dispose of a lead-acid battery except by
 654-13  delivery to:
 654-14              (1)  a battery retailer or wholesaler;
 654-15              (2)  a secondary lead smelter; or
 654-16              (3)  a collection or recycling facility authorized
 654-17  under the laws of this state or by the United States Environmental
 654-18  Protection Agency.
 654-19        (b)  A battery retailer may not dispose of a used lead-acid
 654-20  battery except by delivery to:
 654-21              (1)  a battery wholesaler or a secondary lead smelter,
 654-22  or an agent thereof;
 654-23              (2)  a battery manufacturer for delivery to a secondary
 654-24  lead smelter; or
 654-25              (3)  a collection or recycling facility authorized
 654-26  under the laws of this state or by the United States Environmental
 654-27  Protection Agency.
  655-1        (c)  A person commits an offense if the person knowingly or
  655-2  intentionally disposes of a lead-acid battery other than as
  655-3  provided in this section.  (Sec. 361.451, Health and Safety Code.)
  655-4        Sec. 20.452.  Collection for Recycling.  A person selling
  655-5  lead-acid batteries at retail or offering lead-acid batteries for
  655-6  retail sale in this state shall:
  655-7              (1)  accept from customers, if offered, at the point of
  655-8  transfer, used lead-acid batteries of the type and in a quantity at
  655-9  least equal to the number of new batteries purchased; and
 655-10              (2)  post written notice, which must be at least 8 1/2
 655-11  inches by 11 inches in size, containing the universal recycling
 655-12  symbol and the following language:
 655-13                    (A)  "It is illegal to discard or improperly
 655-14  dispose of a motor-vehicle battery or other lead-acid battery.";
 655-15                    (B)  "Recycle your used batteries."; and
 655-16                    (C)  "State law requires us to accept used
 655-17  motor-vehicle batteries or other lead-acid batteries for recycling
 655-18  in exchange for new batteries purchased."  (Sec. 361.452, Health
 655-19  and Safety Code.)
 655-20        Sec. 20.453.  Inspection of Battery Retailers.  The
 655-21  commission shall produce, print, and distribute the notices
 655-22  required by Section 20.452 to all places where lead-acid batteries
 655-23  are offered for sale at retail.  In performing its duties under
 655-24  this section the commission may inspect any place, building, or
 655-25  premises governed by Section 20.452.  Authorized employees of the
 655-26  commission may issue warnings and citations to persons who fail to
 655-27  comply with the requirements of Section 20.452.  Failure to post
  656-1  the required notice within three days following warning subjects
  656-2  the establishment to a fine of $100 per day.  (Sec. 361.453, Health
  656-3  and Safety Code.)
  656-4        Sec. 20.454.  Lead-Acid Battery Wholesalers.  A person
  656-5  selling new lead-acid batteries at wholesale shall accept from
  656-6  customers, at the point of transfer, used lead-acid batteries of
  656-7  the type and in a quantity at least equal to the number of new
  656-8  batteries purchased, if offered by customers.  A person accepting
  656-9  batteries in transfer from a battery retailer shall remove
 656-10  batteries from the retail point of collection within 90 days after
 656-11  acceptance.  (Sec. 361.154, Health and Safety Code.)
 656-12        Sec. 20.455.  Penalty.  Any violation of this subchapter is a
 656-13  Class C misdemeanor.  Each battery improperly disposed of
 656-14  constitutes a separate violation and offense.  (Sec. 361.455,
 656-15  Health and Safety Code.)
 656-16        Sec. 20.456.  Enforcement.  The commission shall adopt rules
 656-17  necessary to enforce the provisions of this subchapter.  (Sec.
 656-18  361.456, Health and Safety Code.)
 656-19           (Sections 361.457-361.470 reserved for expansion)
 656-20              SUBCHAPTER N.  WASTE TIRE RECYCLING PROGRAM
 656-21        Sec. 20.471.  Definitions.  In this subchapter:
 656-22              (1)  "Fund" means the waste tire recycling fund.
 656-23              (2)  "Mobile tire shredder" means equipment mounted on
 656-24  wheels or skid-mounted and hauled from place to place to split,
 656-25  shred, or quarter used or scrap tires.
 656-26              (3)  "Scrap tire" has the meaning assigned by Section
 656-27  20.113.
  657-1              (4)  "Waste tire facility" means a facility permitted
  657-2  by the commission under Section 20.113 at which scrap tires are
  657-3  collected or deposited and shredded to facilitate the future
  657-4  extraction of useful materials for recycling, reuse, or energy
  657-5  recovery.
  657-6              (5)  "Waste tire processor" means:
  657-7                    (A)  a waste tire facility; or
  657-8                    (B)  a mobile tire shredder that splits, shreds,
  657-9  or quarters tires and deposits the split, shredded, or quartered
 657-10  tires for eventual recycling, reuse, or energy recovery at:
 657-11                          (i)  a waste tire storage facility
 657-12  registered by the commission under Section 20.113; or
 657-13                          (ii)  a waste tire facility.
 657-14              (6)  "Waste tire transporter" means a person who
 657-15  collects and transports used or scrap tires for storage or
 657-16  disposal.
 657-17              (7)  "Weighed tire" means a unit of weight for shredded
 657-18  scrap tires that is equal to 18.7 pounds.  (Sec. 361.471, Health
 657-19  and Safety Code.)
 657-20        Sec. 20.472.  Enforcement; Penalties.  (a)  A person who does
 657-21  not file a report as provided by Section 2.184 or who possesses a
 657-22  fee collected or payable under that section and who does not remit
 657-23  the fee to the comptroller at the time and in the manner required
 657-24  by that section and rules of the comptroller shall pay a penalty of
 657-25  five percent of the amount of the fee due and payable.  If the
 657-26  person does not file the report or pay the fee before the 30th day
 657-27  after the date on which the fee or report is due, the person shall
  658-1  pay a penalty of an additional five percent of the amount of the
  658-2  fee due and payable.
  658-3        (b)  Chapters 101 and 111 through 113, Tax Code, and Sections
  658-4  153.006 and 153.007, Tax Code, apply to the administration,
  658-5  payment, collection, and enforcement of fees under this section in
  658-6  the same manner that those chapters and sections apply to the
  658-7  administration, payment, collection, and enforcement of taxes under
  658-8  Title 2, Tax Code.
  658-9        (c)  The comptroller may add a penalty of 75 percent of the
 658-10  amount of the fee, penalty, and interest due if failure to file the
 658-11  report or pay the fee when it comes due is attributable to fraud or
 658-12  an intent to evade the application of this section or a rule made
 658-13  under this section or Chapter 111, Tax Code.  (Sec. 361.473, Health
 658-14  and Safety Code.)
 658-15        Sec. 20.473.  Disposition of Fees and Penalties.  Fees and
 658-16  penalties collected under Section 2.184 and this subchapter shall
 658-17  be deposited in the state treasury to the credit of the fund.
 658-18  (Sec. 361.474, Health and Safety Code.)
 658-19        Sec. 20.474.  Priority Enforcement List.  The commission
 658-20  shall identify unauthorized tire dumps that present an existing or
 658-21  potential threat to public health and safety or to the environment
 658-22  and shall prepare an enforcement list of those dumps, giving
 658-23  priority to dumps for which a responsible party cannot be located.
 658-24  (Sec. 361.476, Health and Safety Code.)
 658-25        Sec. 20.475.  Payments to Waste Tire Processors.  (a)  The
 658-26  commission each month shall pay a waste tire processor that shreds
 658-27  scrap tires and meets the requirements of this section and rules
  659-1  adopted under this section an amount equal to 85 cents for each
  659-2  weighed tire shredded by the processor during the preceding
  659-3  calendar month.
  659-4        (b)  A waste tire processor that desires to receive payment
  659-5  under this section for tires shredded by the processor during a
  659-6  calendar month must:
  659-7              (1)  apply to the commission in accordance with forms
  659-8  prescribed by the commission;
  659-9              (2)  demonstrate as required by rules adopted under
 659-10  this section that:
 659-11                    (A)  all tires for which payment is sought have
 659-12  been shredded to a particle size not larger than nine square
 659-13  inches; and
 659-14                    (B)  not less than 25 percent of those tires were
 659-15  collected from tire dumps listed on the commission's priority
 659-16  enforcement list;
 659-17              (3)  provide any other information the commission
 659-18  determines is needed to accomplish the purposes of this subchapter;
 659-19  and
 659-20              (4)  demonstrate that energy recovery activities are in
 659-21  compliance with applicable air emission control rules and standards
 659-22  as adopted by the commission.
 659-23        (c)  A waste tire processor that in any month exceeds the 25
 659-24  percent minimum requirement of Subsection (b)(2) shall receive a
 659-25  credit for the amount in excess of 25 percent that may be used to
 659-26  meet the minimum requirement during a later month.  The commission
 659-27  by rule may prescribe the method of applying credits accrued under
  660-1  this subsection.
  660-2        (d)  The commission by rule shall adopt application and
  660-3  payment procedures and requirements to implement this section.
  660-4        (e)  A permitted Type VIII tire monofill approved under
  660-5  commission rules may qualify as a waste tire processor and is
  660-6  eligible to receive payment under this section if the Type VIII
  660-7  tire monofill complies with all the provisions of this subchapter
  660-8  and rules of the commission.  (Sec. 361.477, Health and Safety
  660-9  Code.)
 660-10        Sec. 20.476.  Evaluation of Recycling and Energy Recovery
 660-11  Activities; Certification for Payment.  (a)  Beginning June 1,
 660-12  1995, and every five years after that date, the commission shall
 660-13  evaluate according to standards adopted by commission rule the
 660-14  recycling and energy recovery activities of each waste tire
 660-15  processor that received payment under Section 20.475 during the
 660-16  preceding five years.
 660-17        (b)  After evaluation, the commission shall certify as
 660-18  eligible for payment under Section 20.475 during the next five
 660-19  years a waste tire processor that has conducted or provided for
 660-20  recycling of or energy recovery from tires for which the processor
 660-21  received payment during the preceding five years.
 660-22        (c)  A waste tire processor that receives payment under
 660-23  Section 20.475 during any five-year period and that after
 660-24  evaluation is not certified by the commission under Subsection (b)
 660-25  as eligible for payment under Section 20.475 may not receive
 660-26  payment under that section for the next five years.
 660-27        (d)  The commission by rule may establish a procedure by
  661-1  which a waste tire processor can reestablish eligibility for
  661-2  payment under Section 20.475.  (Sec. 361.478, Health and Safety
  661-3  Code.)
  661-4        Sec. 20.477.  Evidence of Financial Responsibility.  (a)  A
  661-5  waste tire storage facility registered by the commission under
  661-6  Section 20.113 or a waste tire facility that accepts shredded tires
  661-7  for storage or for processing for recycling, reuse, or energy
  661-8  recovery shall submit to the commission evidence of financial
  661-9  responsibility in an amount adequate to assure proper cleanup or
 661-10  closure of the facility.
 661-11        (b)  A facility subject to Subsection (a) shall submit to the
 661-12  commission an estimate of the total amount of shredded tires
 661-13  measured by weighed tire that the facility will store or process
 661-14  and the estimated cost, using that total amount, of cleaning up or
 661-15  closing the facility.
 661-16        (c)  The commission shall evaluate and may amend an estimate
 661-17  submitted under Subsection (b) and by order shall determine for
 661-18  each facility the amount for which evidence of financial
 661-19  responsibility is required.
 661-20        (d)  Evidence of financial responsibility may be in the form
 661-21  of a performance bond, a letter of credit from a recognized
 661-22  financial institution, a trust fund, or insurance for a privately
 661-23  owned facility, or a resolution by the commissioners court or the
 661-24  city council, as appropriate, for a publicly owned facility.  (Sec.
 661-25  361.479, Health and Safety Code.)
 661-26        Sec. 20.478.  Tire Collection Fee Prohibited.  A waste tire
 661-27  transporter or mobile tire shredder may not charge a fee to a
  662-1  wholesale or retail dealer for collecting for delivery to a waste
  662-2  tire facility or for collecting and shredding used or scrap tires
  662-3  accepted for temporary storage by the dealer from purchasers of new
  662-4  tires.  (Sec. 361.480, Health and Safety Code.)
  662-5        Sec. 20.479.  Prohibition on Out-of-State Tires.  A waste
  662-6  tire processor may not claim payment under Section 20.475 for
  662-7  shredding out-of-state tires.  (Sec. 361.481, Health and Safety
  662-8  Code.)
  662-9        Sec. 20.480.  Prohibition on Disposal of Shredded Tires in
 662-10  Landfill.  A waste tire processor may not dispose of shredded tires
 662-11  in a landfill if the processor has received payment under Section
 662-12  20.475 for the tires.  (Sec. 361.482, Health and Safety Code.)
 662-13        Sec. 20.481.  Civil Penalty.  (a)  A person who violates
 662-14  Section 20.479 or 20.480 is liable for a civil penalty of up to
 662-15  $10,000 for each violation.
 662-16        (b)  The attorney general or the prosecuting attorney in the
 662-17  county in which the alleged violation occurs may bring suit to
 662-18  recover the civil penalty imposed under Subsection (a).
 662-19        (c)  A penalty collected under this section shall be
 662-20  deposited to the credit of the fund.  (Sec. 361.483, Health and
 662-21  Safety Code.)
 662-22        Sec. 20.482.  Rules.  The commission may adopt rules
 662-23  reasonably necessary to implement this subchapter.  (Sec. 361.484,
 662-24  Health and Safety Code.)
 662-25        Sec. 20.483.  Report.  Not later than February 1 of each
 662-26  odd-numbered year, the commission shall report to the governor and
 662-27  the legislature on the administration of the program established
  663-1  under this subchapter and its effectiveness in cleaning up existing
  663-2  tire dumps and in preventing new dumps.  (Sec. 361.485, Health and
  663-3  Safety Code.)
  663-4       CHAPTER 21.  SOLID WASTE RESOURCE RECOVERY FINANCING ACT
  663-5                   SUBCHAPTER A.  GENERAL PROVISIONS
  663-6        Sec. 21.001.  Short Title.  This chapter may be cited as the
  663-7  Solid Waste Resource Recovery Financing Act.  (Sec. 362.001, Health
  663-8  and Safety Code.)
  663-9        Sec. 21.002.  Policy and Purpose.  (a)  The policy of the
 663-10  state is to safeguard the public health, general welfare, and
 663-11  physical property from solid waste pollution by encouraging the
 663-12  processing of solid waste for the purpose of extracting, converting
 663-13  to energy, or otherwise separating and preparing solid waste for
 663-14  reuse.
 663-15        (b)  It is the policy of the state that the processing of
 663-16  solid waste for reuse is essential to the well-being and survival
 663-17  of state inhabitants and the protection of the environment.  That
 663-18  processing will conserve and develop state natural resources,
 663-19  within the meaning of Article XVI, Section 59(a), of the Texas
 663-20  Constitution by preventing further damage to the environment.
 663-21  (Sec. 362.002, Health and Safety Code.)
 663-22        Sec. 21.003.  Definitions.  In this chapter:
 663-23              (1)  "Bond" includes a note or other evidence of
 663-24  indebtedness.
 663-25              (2)  "Cost" means expenses related or incidental to the
 663-26  acquisition, construction, or improvement of a system, including:
 663-27                    (A)  real property acquired for a system;
  664-1                    (B)  finance charges;
  664-2                    (C)  interest before and during construction and
  664-3  for a period the issuer finds reasonable after completion of
  664-4  construction;
  664-5                    (D)  expenses incurred for architectural,
  664-6  engineering, and legal services;
  664-7                    (E)  license fees and royalties;
  664-8                    (F)  expenses incurred for plans, specifications,
  664-9  surveys, and estimates;
 664-10                    (G)  expenses incurred in placing the system in
 664-11  operation; and
 664-12                    (H)  administration expenses.
 664-13              (3)  "Issuer" means a district or authority that:
 664-14                    (A)  is created under Article XVI, Section 59, or
 664-15  Article III, Section 52, of the Texas Constitution;
 664-16                    (B)  is authorized by law to own a waste disposal
 664-17  system; and
 664-18                    (C)  includes within its boundaries all of at
 664-19  least one county.
 664-20              (4)  "Public agency" means:
 664-21                    (A)  an issuer;
 664-22                    (B)  a municipality; or
 664-23                    (C)  another political subdivision or agency of
 664-24  the state authorized to own and operate a solid waste collection,
 664-25  transportation, or disposal facility or system.
 664-26              (5)  "Real property" means land, a structure, a
 664-27  franchise or interest in land, air rights, or another thing or
  665-1  right pertaining to that property, including an easement,
  665-2  right-of-way, use, lease, license, or other incorporeal
  665-3  hereditament, or an estate, interest, or legal or equitable right,
  665-4  including a term for years or lien on that property because of a
  665-5  judgment, mortgage, or other reason.
  665-6              (6)  "Resolution" means the action, including an order
  665-7  or ordinance, that authorizes bonds and that is taken by the
  665-8  issuer's governing body.
  665-9              (7)  "Security agreement" means a trust indenture or
 665-10  other instrument securing bonds.
 665-11              (8)  "Solid waste" has the meaning assigned by Chapter
 665-12  20 (Solid Waste Disposal Act).
 665-13              (9)  "System" means real property, plants, works,
 665-14  facilities, equipment, pipelines, machinery, vehicles, vessels,
 665-15  rolling stock, licenses, or franchises used or useful:
 665-16                    (A)  in connection with processing solid waste to
 665-17  extract, recover, reclaim, salvage, reduce, or concentrate the
 665-18  solid waste, or convert it to energy or useful matter or resources
 665-19  including electricity, steam, or other form of energy, metal,
 665-20  fertilizer, glass, or other form of resource; or
 665-21                    (B)  in the transportation, receipt, storage,
 665-22  transfer, and handling of solid waste, the preparation, separation,
 665-23  or processing of solid waste for reuse, the handling and
 665-24  transportation of recovered matter, resources, or energy, and the
 665-25  handling, transportation, and disposition of nonrecoverable solid
 665-26  waste residue.  (Sec. 362.003, Health and Safety Code.)
 665-27        Sec. 21.004.  Effect of Other Law.  (a)  This chapter does
  666-1  not limit the authority of the commission or a local government to:
  666-2              (1)  perform a power or duty provided by other law; or
  666-3              (2)  adopt and enforce rules to carry out duties under
  666-4  Chapter 20.
  666-5        (b)  Chapter 20 shall be enforced without regard to ownership
  666-6  of a system financed under this chapter.
  666-7        (c)  This chapter does not affect the right of a private
  666-8  person to pursue, against a person who contracts with an issuer
  666-9  under this chapter, a common-law remedy to abate, or recover
 666-10  damages for, a condition of pollution or other nuisance.  A person
 666-11  purchasing or leasing a system under contract with an issuer may
 666-12  not assert the defense of sovereign immunity because of the
 666-13  issuer's ownership of the system.
 666-14        (d)  An issuer or public agency may use other law not in
 666-15  conflict with this chapter to the extent convenient or necessary to
 666-16  carry out any authority expressly or impliedly granted by this
 666-17  chapter.  (Sec. 362.004, Health and Safety Code.)
 666-18        Sec. 21.005.  Exception for Certain Material Presorted to be
 666-19  Recycled.  This chapter does not authorize a public agency to
 666-20  compel burning of material presorted to be recycled.  (Sec.
 666-21  362.005, Health and Safety Code.)
 666-22            (Sections 21.006-21.010 reserved for expansion)
 666-23                  SUBCHAPTER B.  OPERATION OF SYSTEM
 666-24        Sec. 21.011.  Authority to Acquire and Transfer Property.
 666-25  (a)  An issuer may acquire, construct, and improve a system for
 666-26  lease or sale as provided by this chapter and may acquire real
 666-27  property as the issuer considers appropriate for the system.
  667-1        (b)  An issuer may lease its system to another person.
  667-2        (c)  An issuer may sell a system, by installment payments or
  667-3  other method of payment, to any person on conditions the issuer
  667-4  considers desirable.
  667-5        (d)  A lease or sales contract entered into under this
  667-6  chapter may be for the term agreed to by the parties, and must
  667-7  provide that it continues in effect until the bonds specified in
  667-8  the lease or contract, or refunding bonds issued in place of those
  667-9  bonds, are fully paid.  (Sec. 362.011, Health and Safety Code.)
 667-10        Sec. 21.012.  Location of System.  A system may be located on
 667-11  the property of any person.  (Sec. 362.012, Health and Safety
 667-12  Code.)
 667-13        Sec. 21.013.  Contract Terms and Procedures.  (a)  The
 667-14  provisions of Article 5160, Revised Statutes, that relate to
 667-15  performance and payment bonds apply to a contract entered into by
 667-16  an issuer.
 667-17        (b)  An issuer may contract for the acquisition,
 667-18  construction, and improvement of a system on the terms and under
 667-19  the conditions that the governing body of the issuer considers
 667-20  appropriate, including a contract under which a person agrees to
 667-21  perform and supply all services and materials required in
 667-22  connection with the design, construction, and placing into
 667-23  operation of a system.
 667-24        (c)  The issuer shall publish notice of the time and place
 667-25  the contract will be let in a newspaper of general circulation
 667-26  within the boundaries of the issuer once a week for two consecutive
 667-27  weeks, with the first publication occurring not later than the 15th
  668-1  day before the date the contract will be let.
  668-2        (d)  The issuer shall analyze competitive proposals received
  668-3  in response to the notice and let the contract to the responsible
  668-4  party making the proposal that is most advantageous to the issuer
  668-5  and that will result in the most economical completion of the
  668-6  system.  (Sec. 362.013, Health and Safety Code.)
  668-7        Sec. 21.014.  Public Agency Contract.  (a)  A public agency,
  668-8  on terms it considers appropriate, may contract with an issuer or
  668-9  other person who finances, constructs, or improves a system to
 668-10  sell, lease, or dedicate the use of real property or all or part of
 668-11  a solid waste disposal facility for use as part of the system.
 668-12        (b)  A public agency may contract with any person for the
 668-13  supply, collection, or transportation of solid waste for disposal
 668-14  at a system.  The public agency may agree in the contract to supply
 668-15  minimum amounts of solid waste and to pay minimum fees for the
 668-16  right to dispose of the solid waste at the system during the term
 668-17  of the contract.  The contract may continue in effect for the term
 668-18  of years that the public agency's governing body determines to be
 668-19  desirable.  (Sec. 362.014, Health and Safety Code.)
 668-20        Sec. 21.015.  Payment of Contract From Sources Other Than
 668-21  Taxes.  (a)  A public agency may use any available revenue or
 668-22  resource for, or pledge the revenue or resource to, payment of all
 668-23  or part of the amount due under a contract under Section 21.014.
 668-24  The public agency may agree in the contract to assure availability
 668-25  of payment when required.
 668-26        (b)  The public agency may agree to make sufficient provision
 668-27  in its annual budget to make all payments under the contract.
  669-1        (c)  The public agency may fix, charge, and collect, from its
  669-2  inhabitants or other users or beneficiaries of a service or
  669-3  facility provided in connection with the contract, a fee, rate,
  669-4  charge, rental, or other amount for the service or facility,
  669-5  including a water charge, sewage charge, solid waste disposal fee
  669-6  or charge, garbage collection or handling fee, or other fee or
  669-7  charge.  The public agency may use those amounts for, or pledge
  669-8  them to, payments required under the contract, and may agree in the
  669-9  contract to make that use or pledge in an amount sufficient to make
 669-10  all or part of the payments when due.  (Sec. 362.015, Health and
 669-11  Safety Code.)
 669-12        Sec. 21.016.  Payment of Contract From Taxes.  (a)  A public
 669-13  agency that has taxing power and that, when it enters into a
 669-14  contract under Section 21.014, is using its general funds,
 669-15  including tax revenue, to pay all or part of the cost of providing
 669-16  solid waste collection, transportation, and disposal services may
 669-17  agree that the payments under the contract are an obligation
 669-18  against the public agency's taxing power.
 669-19        (b)  Except as provided by Subsection (c), a person is not
 669-20  entitled to demand payment from taxes during any period unless the
 669-21  contracting person is willing and able to receive and dispose of
 669-22  solid waste during the period as provided by the contract.
 669-23        (c)  A public agency that has taxing power may hold an
 669-24  election substantially in accordance with Chapter 1, Title 22,
 669-25  Revised Statutes, applicable to issuance of bonds by a municipality
 669-26  to determine whether a contract may be an obligation secured by the
 669-27  taxing power of the public agency to an extent not permitted by
  670-1  Subsection (b).  If it is determined by a favorable vote at the
  670-2  election that the public agency is authorized to levy an ad valorem
  670-3  tax to make all or part of the payments under the contract, and
  670-4  that the payments are to be made unconditionally regardless of
  670-5  whether the contracting person is willing and able to receive and
  670-6  dispose of solid waste as provided by the contract, the contract is
  670-7  an obligation secured by the public agency's taxing power to the
  670-8  extent provided.  The ballot proposition at the election must
  670-9  plainly state that ad valorem tax funds may be used to make
 670-10  contract payments if the contractor cannot receive or dispose of
 670-11  solid waste because of mechanical failure of the facility financed
 670-12  by the bonds or for other reasons.  (Sec. 362.016, Health and
 670-13  Safety Code.)
 670-14        Sec. 21.017.  Industrial Development Corporation.  (a)  A
 670-15  public agency that has entered into a contract under Section 21.014
 670-16  may sponsor the creation of an industrial development corporation
 670-17  under the Development Corporation Act of 1979 (Article 5190.6,
 670-18  Vernon's Texas Civil Statutes).
 670-19        (b)  The corporation may issue bonds, notes, or other
 670-20  evidences of indebtedness under the Development Corporation Act of
 670-21  1979 to finance the cost of a system under the contract regardless
 670-22  of whether the system is located within the boundaries of the
 670-23  public agency.  (Sec. 362.017, Health and Safety Code.)
 670-24        Sec. 21.018.  Cost of Certain Required Alterations.  The
 670-25  relocation, raising, lowering, rerouting, changing of grade, or
 670-26  altering of construction of a highway, railroad, electric
 670-27  transmission line, telegraph or telephone property or facility, or
  671-1  pipeline made necessary by the actions of an issuer shall be
  671-2  accomplished at the sole expense of the issuer, who shall pay the
  671-3  cost of the required activity as necessary to provide comparable
  671-4  replacement, minus the net salvage value of any replaced facility.
  671-5  The issuer shall pay that amount from the proceeds of bonds issued
  671-6  to finance a system.  (Sec. 362.018, Health and Safety Code.)
  671-7        Sec. 21.019.  TAXATION.  (a)  Bonds issued under this
  671-8  chapter, the transfer of the bonds, and income from the bonds are
  671-9  exempt from taxation in this state.
 671-10        (b)  A system purchased or leased under this chapter is
 671-11  subject to ad valorem taxation payable by the person contracting
 671-12  with the issuer according to state law.  An item purchased or
 671-13  leased as part of a system is subject to all applicable state
 671-14  taxation.  (Sec. 362.019, Health and Safety Code.)
 671-15            (Sections 21.020-21.030 reserved for expansion)
 671-16                         SUBCHAPTER C.  BONDS
 671-17        Sec. 21.031.  Authority to Issue Bonds and Bond Anticipation
 671-18  Notes.  (a)  An issuer may issue bonds, payable from revenues of
 671-19  the issuer, to finance or refinance the cost of acquiring,
 671-20  constructing, or improving a system.
 671-21        (b)  The bonds may be issued in more than one series and from
 671-22  time to time as required to carry out the purposes of this chapter.
 671-23        (c)  The issuer may declare an emergency because funds are
 671-24  not available to pay the principal of and interest on its bonds or
 671-25  to meet other needs of the issuer and may issue bond anticipation
 671-26  notes to borrow the needed money.  The bond anticipation notes may
 671-27  bear interest at any fixed, floating, or other type of rate, and
  672-1  must mature within one year of their date.  The bond anticipation
  672-2  notes shall be paid with the proceeds of bonds, or bonds may be
  672-3  issued and delivered in exchange for and in substitution of the
  672-4  notes.  (Sec. 362.031, Health and Safety Code.)
  672-5        Sec. 21.032.  Form and Procedure.  (a)  Bonds under this
  672-6  chapter must be authorized by resolution.  The bonds must:
  672-7              (1)  be signed by the presiding officer or assistant
  672-8  presiding officer of the issuer's governing body;
  672-9              (2)  be attested by the secretary of the issuer's
 672-10  governing body; and
 672-11              (3)  have the seal of the issuer impressed, printed, or
 672-12  lithographed on the bonds.
 672-13        (b)  The bonds may have the characteristics and bear the
 672-14  designation determined by the issuer's governing body, except that
 672-15  the designation must include:
 672-16              (1)  the name of each person guaranteeing the
 672-17  contractual obligation of each person leasing or purchasing the
 672-18  system; or
 672-19              (2)  a statement, if applicable, that a group of
 672-20  persons will be leasing or purchasing the system.
 672-21        (c)  The governing body may authorize a required signature to
 672-22  be printed or lithographed on the bonds.  The issuer may adopt or
 672-23  use the signature of a person who has been an officer, regardless
 672-24  of whether the person is an officer when the bonds are delivered to
 672-25  a purchaser.  (Sec. 362.032, Health and Safety Code.)
 672-26        Sec. 21.033.  Terms.  Bonds issued under this chapter must
 672-27  mature serially or in another manner not more than 40 years after
  673-1  they are issued.  The bonds may:
  673-2              (1)  bear interest at a fixed, floating, or other type
  673-3  of rate, and be sold at public or private sale at a price or under
  673-4  terms that the issuer's governing body determines to be the most
  673-5  advantageous reasonably obtainable;
  673-6              (2)  be made callable before maturity at times and
  673-7  prices prescribed by the issuer's governing body;
  673-8              (3)  be in coupon form; and
  673-9              (4)  be registrable as to principal or as to principal
 673-10  and interest.  (Sec. 362.033, Health and Safety Code.)
 673-11        Sec. 21.034.  Approval and Registration.  (a)  An issuer
 673-12  shall submit bonds that have been authorized by its governing body,
 673-13  including refunding bonds and the record relating to the bond
 673-14  issuance, to the attorney general for examination as to their
 673-15  validity.  If the bonds state that they are secured by a pledge of
 673-16  proceeds of a lease or contract of sale previously entered into by
 673-17  the issuer, the issuer may submit the contract with the bonds.
 673-18        (b)  If the bonds have been authorized in accordance with
 673-19  state law and any contract has been made in accordance with state
 673-20  law, the attorney general shall approve the bonds and contract and
 673-21  the comptroller shall register the bonds.
 673-22        (c)  Following approval and registration, the bonds and
 673-23  contract are incontestable.  (Sec. 362.034, Health and Safety
 673-24  Code.)
 673-25        Sec. 21.035.  Pledge of Revenue and Other Amounts as
 673-26  Security.  (a)  Bonds are payable solely from and shall be secured
 673-27  by a pledge of:
  674-1              (1)  revenues of the issuer derived from the lease or
  674-2  sale of a system;
  674-3              (2)  amounts attributable to bond proceeds; or
  674-4              (3)  amounts obtained through the exercise of a remedy
  674-5  provided by the governing body's resolution or a security agreement
  674-6  securing the bonds in the manner specified in the resolution or
  674-7  security agreement.
  674-8        (b)  The governing body shall fix and periodically revise
  674-9  payments under a lease or contract for sale of a system so that the
 674-10  payments and other pledged revenue will be sufficient to pay the
 674-11  bonds and interest on the bonds as they mature and become due and
 674-12  to maintain reserve or other funds as provided by the resolution or
 674-13  security agreement.
 674-14        (c)  The governing body may direct the investment of money in
 674-15  the funds created by the resolution or security agreement, and may
 674-16  delegate this authority to its authorized agent.  (Sec. 362.035,
 674-17  Health and Safety Code.)
 674-18        Sec. 21.036.  Security May Apply to Additional Bonds.  (a)  A
 674-19  pledge under Section 21.035 may reserve the right, under conditions
 674-20  specified by the pledge, to issue additional bonds to be on a
 674-21  parity with or subordinate to the bonds secured by the pledge.
 674-22        (b)  Bonds issued under this chapter may be combined in the
 674-23  same issue with bonds issued for other purposes authorized by law.
 674-24  (Sec. 362.036, Health and Safety Code.)
 674-25        Sec. 21.037.  Trust as Security.  (a)  The issuer's governing
 674-26  body may additionally secure bonds, including refunding bonds, by a
 674-27  trust indenture under which the trustee may be a bank that has
  675-1  trust powers and that is located inside or outside the state.
  675-2        (b)  Regardless of any mortgage, deed of trust lien, or
  675-3  security interest under Section 21.038, the trust indenture may:
  675-4              (1)  contain any provision that the governing body
  675-5  prescribes for the security of the bonds and the preservation of
  675-6  the trust estate;
  675-7              (2)  provide for amendment or modification of the trust
  675-8  indenture;
  675-9              (3)  condition the right to spend the issuer's money or
 675-10  sell an issuer's system as provided by the trust indenture;
 675-11              (4)  provide in other manners for protection and
 675-12  enforcement of bondholders' rights and remedies as is reasonable
 675-13  and proper; and
 675-14              (5)  provide for the issuance of replacement bonds for
 675-15  lost, stolen, or mutilated bonds.  (Sec. 362.037, Health and Safety
 675-16  Code.)
 675-17        Sec. 21.038.  Other Security.  (a)  The bonds may be
 675-18  additionally secured by a mortgage, deed of trust lien, or security
 675-19  interest in a designated system of the issuer's governing body and
 675-20  all property and rights appurtenant to the system.
 675-21        (b)  The mortgage, deed of trust lien, or security interest
 675-22  may give the trustee the power to operate the system, sell the
 675-23  system to pay the debt, or take any other action to secure the
 675-24  bonds.
 675-25        (c)  A purchaser at a sale under a mortgage or deed of trust
 675-26  lien is the absolute owner of the system and rights purchased.
 675-27  (Sec. 362.038, Health and Safety Code.)
  676-1        Sec. 21.039.  Action by Bondholders.  (a)  The resolution or
  676-2  a security agreement may provide that on default in the payment of
  676-3  principal of or interest on the bonds, or threatened default under
  676-4  conditions stated in the resolution or security agreement, and on
  676-5  petition of the holders of outstanding bonds, a court of competent
  676-6  jurisdiction may appoint a receiver to collect and receive pledged
  676-7  income.
  676-8        (b)  The resolution or security agreement may limit or
  676-9  qualify the rights of less than all of the holders of outstanding
 676-10  bonds payable from the same source to institute or prosecute
 676-11  litigation affecting the issuer's property or income.  (Sec.
 676-12  362.039, Health and Safety Code.)
 676-13        Sec. 21.040.  Investment and Use of Proceeds.  (a)  The
 676-14  governing body of the issuer may set aside amounts from the
 676-15  proceeds of the sale of bonds for payment into an interest and
 676-16  sinking fund and reserve funds and may provide for this in the
 676-17  resolution or a security agreement.  All expenses of issuing and
 676-18  selling the bonds shall be paid from the proceeds of the sale of
 676-19  the bonds.
 676-20        (b)  Proceeds from the sale of bonds shall be invested in the
 676-21  manner provided by the resolution or security agreement.
 676-22        (c)  A bank or trust company with trust powers may be
 676-23  designated as depository for proceeds of bonds or of sales contract
 676-24  or lease revenue. The bank or trust company shall furnish
 676-25  indemnifying bonds or pledge securities as required by the issuer
 676-26  to secure the deposits.  (Sec. 362.040, Health and Safety Code.)
 676-27        Sec. 21.041.  Refunding Bonds.  (a)  The governing body of an
  677-1  issuer may issue refunding bonds to refund the principal of,
  677-2  interest on, and any redemption premium applicable to outstanding
  677-3  bonds.  The refunding bonds may:
  677-4              (1)  refund more than one series of outstanding bonds
  677-5  and combine the revenue pledged to the outstanding bonds for the
  677-6  security of the refunding bonds; and
  677-7              (2)  be secured by other or additional revenues and
  677-8  deed of trust liens.
  677-9        (b)  The provisions of this chapter relating to issuance of
 677-10  bonds, security for bonds, approval by the attorney general, and
 677-11  remedies of bondholders apply to refunding bonds.
 677-12        (c)  The comptroller shall register refunding bonds:
 677-13              (1)  on the surrender and cancellation of the original
 677-14  bonds; or
 677-15              (2)  without surrender and cancellation of the original
 677-16  bonds if:
 677-17                    (A)  the resolution authorizing the refunding
 677-18  bonds provides that their proceeds be deposited in the bank where
 677-19  the original bonds are payable; and
 677-20                    (B)  the refunding bonds are issued in an amount
 677-21  sufficient to pay the principal of, interest on, and any redemption
 677-22  premium applicable to the original bonds up to their option date or
 677-23  maturity date.  (Sec. 362.041, Health and Safety Code.)
 677-24        Sec. 21.042.  Legal Investments; Security for Deposits.
 677-25  (a)  Bonds issued under this chapter are legal and authorized
 677-26  investments for:
 677-27              (1)  a bank;
  678-1              (2)  a savings bank;
  678-2              (3)  a trust company;
  678-3              (4)  a savings and loan association;
  678-4              (5)  an insurance company;
  678-5              (6)  a fiduciary;
  678-6              (7)  a trustee; and
  678-7              (8)  a sinking fund of a municipality, county, school
  678-8  district, or other political corporation or subdivision of the
  678-9  state.
 678-10        (b)  The bonds may secure the deposits of public funds of the
 678-11  state or a municipality, county, school district, or other
 678-12  political corporation or subdivision of the state.  The bonds are
 678-13  lawful and sufficient security for those deposits in an amount up
 678-14  to their face value, if accompanied by all appurtenant unmatured
 678-15  coupons.  (Sec. 362.042, Health and Safety Code.)
 678-16        Sec. 21.043.  Bonds Not General Obligation.  The bonds are
 678-17  special obligations payable solely from revenues pledged to their
 678-18  payment and are not general obligations of the governing body, the
 678-19  issuer, or the state.  A bondholder may not demand payment from
 678-20  money obtained from a tax or other revenue of the issuer, excluding
 678-21  revenues pledged to the payment of the bonds.  (Sec. 362.043,
 678-22  Health and Safety Code.)
 678-23                  CHAPTER 22.  MUNICIPAL SOLID WASTE
 678-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 678-25        Sec. 22.001.  Short Title.  This chapter may be cited as the
 678-26  Comprehensive Municipal Solid Waste Management, Resource Recovery,
 678-27  and Conservation Act.  (Sec. 363.001, Health and Safety Code.)
  679-1        Sec. 22.002.  Policy.  It is this state's policy to safeguard
  679-2  the health, general welfare, and physical property of the people
  679-3  and to protect the environment by encouraging the reduction in
  679-4  solid waste generation and the proper management of solid waste,
  679-5  including disposal and processing to extract usable materials or
  679-6  energy.   Encouraging a cooperative effort among federal, state,
  679-7  and local governments and private enterprise, to accomplish the
  679-8  purposes of this chapter, will further that policy.  (Sec. 363.002,
  679-9  Health and Safety Code.)
 679-10        Sec. 22.003.  Findings.  The legislature finds that:
 679-11              (1)  the growth of the state's economy and population
 679-12  has resulted in an increase in discarded materials;
 679-13              (2)  the improper management of solid waste creates
 679-14  hazards to the public health, can cause air and water pollution,
 679-15  creates public nuisances, and causes a blight on the landscape;
 679-16              (3)  there is increasing public opposition to the
 679-17  location of solid waste land disposal facilities;
 679-18              (4)  because some communities lack sufficient financial
 679-19  resources, municipal solid waste land disposal sites in the state
 679-20  are being improperly operated and maintained, causing potential
 679-21  health problems to nearby residents, attracting vectors, and
 679-22  creating conditions that destroy the beauty and quality of our
 679-23  environment;
 679-24              (5)  often, operational deficiencies occur at rural
 679-25  solid waste land disposal sites operated by local governments that
 679-26  do not have the funds, personnel, equipment, and technical
 679-27  expertise to properly operate a disposal system;
  680-1              (6)  many smaller communities and rural residents have
  680-2  no organized solid waste collection and disposal system, resulting
  680-3  in dumping of garbage and trash along the roadside, in roadside
  680-4  parks, and at illegal dump sites;
  680-5              (7)  combining two or more small, inefficient
  680-6  operations into local, regional, or countywide systems may provide
  680-7  a more economical, efficient, and safe means for the collection and
  680-8  disposal of solid waste and will offer greater opportunities for
  680-9  future resource recovery;
 680-10              (8)  there are private operators of municipal solid
 680-11  waste management systems with whom persons can contract or
 680-12  franchise their services, and many of those private operators
 680-13  possess the management expertise, qualified personnel, and
 680-14  specialized equipment for the safe collection, handling, and
 680-15  disposal of solid waste;
 680-16              (9)  technologies exist to separate usable material
 680-17  from solid waste and to convert solid waste to energy, and it will
 680-18  benefit this state to work in cooperation with private business,
 680-19  nonprofit organizations, and public agencies that have acquired
 680-20  knowledge, expertise, and technology in the fields of energy
 680-21  production and recycling, reuse, reclamation, and collection of
 680-22  materials;
 680-23              (10)  the opportunity for resource recovery is
 680-24  diminished unless local governments can exercise control over solid
 680-25  waste and can enter long-term contracts to supply solid waste to
 680-26  resource recovery systems or to operate those systems; and
 680-27              (11)  the control of solid waste collection and
  681-1  disposal should continue to be the responsibility of local
  681-2  governments and public agencies, but the problems of solid waste
  681-3  management have become a matter of state concern and require state
  681-4  financial assistance to plan and implement solid waste management
  681-5  practices that encourage the safe disposal of solid waste and the
  681-6  recovery of material and energy resources from solid waste.  (Sec.
  681-7  363.003, Health and Safety Code.)
  681-8        Sec. 22.004.  Definitions.  In this chapter:
  681-9              (1)  "Advisory council" means the Municipal Solid Waste
 681-10  Management and Resource Recovery Advisory Council.
 681-11              (2)  "Disposal" means the discharge, deposit,
 681-12  injection, dumping, spilling, leaking, or placing of containerized
 681-13  or uncontainerized solid waste or hazardous waste into or on land
 681-14  or water so that the solid waste or hazardous waste or any
 681-15  constituent of solid waste or hazardous waste may enter the
 681-16  environment or be emitted into the air or discharged into surface
 681-17  water or groundwater.
 681-18              (3)  "Governing body" means the governing body of a
 681-19  municipality, the commissioners court, the board of directors, the
 681-20  trustees, or a similar body charged by law with governing a public
 681-21  agency.
 681-22              (4)  "Hazardous waste" means solid waste identified or
 681-23  listed as a hazardous waste by the administrator of the United
 681-24  States Environmental Protection Agency under the federal Solid
 681-25  Waste Disposal Act, as amended by the Resource Conservation and
 681-26  Recovery Act (42 U.S.C. Section 6901 et seq.).
 681-27              (5)  "Industrial solid waste" means solid waste
  682-1  resulting from or incidental to a process of industry or
  682-2  manufacturing, or mining or agricultural operations.
  682-3              (6)  "Local government" means a county, municipality,
  682-4  or other political subdivision of the state exercising the
  682-5  authority granted under Section 20.165 (Solid Waste Disposal Act).
  682-6              (7)  "Municipal solid waste" means solid waste
  682-7  resulting from or incidental to municipal, community, commercial,
  682-8  institutional, and recreational activities, and includes garbage,
  682-9  rubbish, ashes, street cleanings, dead animals, abandoned
 682-10  automobiles, and other solid waste other than industrial solid
 682-11  waste.
 682-12              (8)  "Planning fund" means the municipal solid waste
 682-13  management planning fund.
 682-14              (9)  "Planning region" means a region of this state
 682-15  identified by the governor as an appropriate region for municipal
 682-16  solid waste planning as provided by Section 4006 of the federal
 682-17  Solid Waste Disposal Act, as amended by the Resource Conservation
 682-18  and Recovery Act (42 U.S.C. Section 6901 et seq.).
 682-19              (10)  "Processing" means the extraction of materials,
 682-20  transfer, volume reduction, conversion to energy, or other
 682-21  separation and preparation of solid waste for reuse or disposal,
 682-22  including treatment or neutralization of hazardous waste designed
 682-23  to change the physical, chemical, or biological character or
 682-24  composition of hazardous waste so as to:
 682-25                    (A)  neutralize hazardous waste;
 682-26                    (B)  recover energy or material from hazardous
 682-27  waste; or
  683-1                    (C)  render hazardous waste nonhazardous or less
  683-2  hazardous, safer to transport, store, or dispose of, amenable for
  683-3  recovery or storage, or reduced in volume.
  683-4              (11)  "Property" means land, structures, interest in
  683-5  land, air rights, water rights, and rights that accompany interest
  683-6  in land, structures, water rights, and air rights and includes
  683-7  easements, rights-of-way, uses, leases, incorporeal hereditaments,
  683-8  legal and equitable estates, interest, or rights such as terms for
  683-9  years and liens.
 683-10              (12)  "Public agency" means a municipality, county, or
 683-11  district or authority created and operating under Article III,
 683-12  Section 52(b)(1) or (2), or Article XVI, Section 59, of the Texas
 683-13  Constitution, or a combination of two or more of those governmental
 683-14  entities acting under an interlocal agreement and having the
 683-15  authority under this chapter or other law to own and operate a
 683-16  solid waste management system.
 683-17              (13)  "Regional or local solid waste management plan"
 683-18  means a plan adopted by a planning region under Section 22.064 or a
 683-19  local government under Section 22.065.
 683-20              (14)  "Resolution" means the action, including an order
 683-21  or ordinance, that authorizes bonds and that is taken by the
 683-22  governing body.
 683-23              (15)  "Resource recovery" means recovering materials or
 683-24  energy from solid waste or otherwise converting solid waste to a
 683-25  useful purpose.
 683-26              (16)  "Resource recovery system" means real property,
 683-27  structures, plants, works, facilities, equipment, pipelines,
  684-1  machinery, vehicles, vessels, rolling stock, licenses, or
  684-2  franchises used or useful in connection with processing solid waste
  684-3  to extract, recover, reclaim, salvage, reduce, or concentrate the
  684-4  solid waste or convert it to energy or useful matter or resources,
  684-5  including electricity, steam, or other forms of energy, metal,
  684-6  fertilizer, glass, or other forms of material and resources.  The
  684-7  term includes real property, structures, plants, works, facilities,
  684-8  pipelines, machinery, vehicles, vessels, rolling stock, licenses,
  684-9  or franchises used or useful in:
 684-10                    (A)  transporting, receiving, storing,
 684-11  transferring, and handling solid waste;
 684-12                    (B)  preparing, separating, or processing solid
 684-13  waste for reuse;
 684-14                    (C)  handling and transporting recovered matter,
 684-15  resources, or energy; and
 684-16                    (D)  handling, transporting, and disposing of
 684-17  nonrecoverable solid waste residue.
 684-18              (17)  "Solid waste" means garbage, rubbish, sludge from
 684-19  a wastewater treatment plant, water supply treatment plant, or air
 684-20  pollution control facility, and other discarded material, including
 684-21  solid, liquid, semisolid, or contained gaseous material resulting
 684-22  from industrial, municipal, commercial, mining, and agricultural
 684-23  operations and from community and institutional activities, but
 684-24  does not include:
 684-25                    (A)  solid or dissolved material in domestic
 684-26  sewage or irrigation return flows or industrial discharges subject
 684-27  to regulation by permit issued under Chapter 10;
  685-1                    (B)  soil, dirt, rock, sand, and other natural or
  685-2  man-made inert solid materials used to fill land if the object of
  685-3  the fill is to make the land suitable for surface improvement
  685-4  construction; or
  685-5                    (C)  waste materials that result from activities
  685-6  associated with the exploration, development, or production of oil
  685-7  or gas and are subject to control by the Railroad Commission of
  685-8  Texas.
  685-9              (18)  "Solid waste management" means the systematic
 685-10  control of any of the following activities:
 685-11                    (A)  generation;
 685-12                    (B)  source separation;
 685-13                    (C)  collection;
 685-14                    (D)  handling;
 685-15                    (E)  storage;
 685-16                    (F)  transportation;
 685-17                    (G)  processing;
 685-18                    (H)  treatment;
 685-19                    (I)  resource recovery; or
 685-20                    (J)  disposal of solid waste.
 685-21              (19)  "Solid waste management system" means a plant,
 685-22  composting process plant, incinerator, sanitary landfill, transfer
 685-23  station, or other works and equipment that is acquired, installed,
 685-24  or operated to collect, handle, store, process, recover material or
 685-25  energy from, or dispose of solid waste, and includes sites for
 685-26  those works and equipment.
 685-27              (20)  "State solid waste management plan" means the
  686-1  Solid Waste Management Plan for Texas, Volume 1, Municipal Solid
  686-2  Waste, adopted by the Texas Board of Health.
  686-3              (21)  "Technical assistance fund" means the municipal
  686-4  solid waste resource recovery applied research and technical
  686-5  assistance fund.
  686-6              (22)  "Yard waste" means leaves, grass clippings, yard
  686-7  and garden debris, and brush, including clean woody vegetative
  686-8  material not greater than six inches in diameter, that result from
  686-9  landscaping maintenance and land-clearing operations.  The term
 686-10  does not include stumps, roots, or shrubs with intact root balls.
 686-11  (Sec. 363.004, Health and Safety Code.)
 686-12        Sec. 22.005.  Application of Chapter.  This chapter applies
 686-13  only to solid waste and hazardous waste as described by Section
 686-14  20.011.  (Sec. 363.005, Health and Safety Code.)
 686-15        Sec. 22.006.  Construction of Chapter; Exemptions.  (a)  This
 686-16  chapter does not prohibit or limit a person from extracting or
 686-17  using materials that the person generates or legally collects or
 686-18  acquires for recycling or resale.
 686-19        (b)  Materials that are separated or recovered from solid
 686-20  waste for reuse or recycling by the generator, by a private person
 686-21  under contract with the generator, or by a collector of solid waste
 686-22  or recovered materials are not subject to this chapter.  (Sec.
 686-23  363.006, Health and Safety Code.)
 686-24        Sec. 22.007.  Commission Powers and Duties.  (a)  The
 686-25  commission shall implement and enforce this chapter.
 686-26        (b)  The commission shall:
 686-27              (1)  provide technical assistance to public agencies
  687-1  and planning regions and cooperate with federal agencies and
  687-2  private organizations in carrying out this chapter;
  687-3              (2)  promote planning for and implementation of the
  687-4  recovery of materials and energy from solid waste;
  687-5              (3)  establish guidelines for regional and local
  687-6  municipal solid waste management plans;
  687-7              (4)  review and approve or disapprove regional and
  687-8  local municipal solid waste management plans;
  687-9              (5)  assist the advisory council in its duties;
 687-10              (6)  provide educational and informational programs to
 687-11  promote effective municipal solid waste management practices and to
 687-12  encourage resource recovery;
 687-13              (7)  provide procedures under which public agencies and
 687-14  planning regions may apply for financial assistance grants;
 687-15              (8)  evaluate applications and award financial
 687-16  assistance grants in accordance with board rules; and
 687-17              (9)  coordinate programs under this chapter with other
 687-18  state agencies, including the Railroad Commission of Texas and any
 687-19  other state or federal agency having an interest in a program or
 687-20  project.  (Sec. 363.022, Health and Safety Code.)
 687-21        Sec. 22.008.  Statutes Not Affected by Chapter.  This chapter
 687-22  does not affect:
 687-23              (1)  Chapter 20 (Solid Waste Disposal Act);
 687-24              (2)  Chapter 23 (County Solid Waste Control Act); or
 687-25              (3)  Chapter 21 (Solid Waste Resource Recovery
 687-26  Financing Act).  (Sec. 363.007, Health and Safety Code.)
 687-27            (Sections 22.009-22.060 reserved for expansion)
  688-1    SUBCHAPTER B.  REGIONAL AND LOCAL SOLID WASTE MANAGEMENT PLANS
  688-2        Sec. 22.061.  Commission Rules; Approval of Regional and
  688-3  Local Solid Waste Management Plans.  (a)  The commission shall
  688-4  adopt rules relating to regional and local solid waste management
  688-5  plans, including procedures for review and criteria for approval of
  688-6  those plans.
  688-7        (b)  The commission by rule shall require as a criterion for
  688-8  approval of a regional or local solid waste management plan that
  688-9  the plan reflect consideration of the preference of municipal solid
 688-10  waste management methods under Section 20.022 (Solid Waste Disposal
 688-11  Act).  (Sec. 363.061, Health and Safety Code.)
 688-12        Sec. 22.062.  Responsibility for Regional Planning.  (a)  A
 688-13  council of governments has primary responsibility for the regional
 688-14  planning process.
 688-15        (b)  A planning region may be divided into subregions as part
 688-16  of the regional planning process.  If a planning region is divided
 688-17  into subregions, the council of governments with jurisdiction in
 688-18  the planning region may assist the local governments constituting a
 688-19  subregion to develop a joint local solid waste management plan that
 688-20  provides for solid waste services for solid waste generated within
 688-21  that subregion.
 688-22        (c)  A council of governments may:
 688-23              (1)  employ personnel necessary to carry out the
 688-24  regional planning process, including an administrator for each
 688-25  subregion if subregions are established; and
 688-26              (2)  adopt rules necessary to carry out
 688-27  responsibilities concerning the regional planning process.
  689-1        (d)  In this section, "council of governments" means a
  689-2  regional planning commission created under Chapter 391, Local
  689-3  Government Code.  (Sec. 363.0615, Health and Safety Code.)
  689-4        Sec. 22.063.  Preparation of Regional Plan by Other Public
  689-5  Agency in Certain Regions.  (a)  In a 10-county region with a
  689-6  population of less than 300,000, a council of governments is not
  689-7  required to prepare a regional solid waste management plan for that
  689-8  region if a public agency other than a municipality or county has
  689-9  received state funds for that purpose and has prepared a plan that
 689-10  has been approved by the state agency that administered the state
 689-11  funds.
 689-12        (b)  In this section, "council of governments" means a
 689-13  regional planning commission created under Chapter 391, Local
 689-14  Government Code.  (Sec. 363.0616, Health and Safety Code.)
 689-15        Sec. 22.064.  Regional Solid Waste Management Plan.  (a)  A
 689-16  planning region shall develop a regional solid waste management
 689-17  plan as provided by Section 22.066 that must conform to the state
 689-18  solid waste management plan.
 689-19        (b)  A regional solid waste management plan shall be
 689-20  submitted to the commission for review.
 689-21        (c)  If the commission determines that a regional solid waste
 689-22  management plan conforms to the requirements adopted by the
 689-23  commission, the commission shall approve the regional solid waste
 689-24  management plan.
 689-25        (d)  If the commission determines that a regional solid waste
 689-26  management plan does not conform to the requirements adopted by the
 689-27  commission, the commission shall give written notice to the
  690-1  planning region of each aspect of the plan that must be changed to
  690-2  conform to commission requirements.  After the changes have been
  690-3  made in the plan as provided by the commission, the commission
  690-4  shall approve the plan.
  690-5        (e)  The commission by rule shall adopt an approved regional
  690-6  solid waste management plan.  (Sec. 363.062, Health and Safety
  690-7  Code.)
  690-8        Sec. 22.065.  Local Solid Waste Management Plan.  (a)  A
  690-9  local government shall develop a local solid waste management plan
 690-10  as provided by Section 22.066.
 690-11        (b)  A local solid waste management plan must conform to the
 690-12  adopted regional solid waste management plan that covers the area
 690-13  in the local government's jurisdiction.
 690-14        (c)  A local solid waste management plan shall be submitted
 690-15  to the commission for review.  If the commission determines that
 690-16  the plan conforms to the requirements adopted by the commission,
 690-17  the commission shall approve the plan.
 690-18        (d)  If the commission determines that a local solid waste
 690-19  management plan does not conform to the requirements adopted by the
 690-20  commission, the commission shall give written notice to the local
 690-21  government of each aspect of the plan that must be changed to
 690-22  conform to commission requirements.  After changes are made in the
 690-23  plan as requested by the commission, the commission shall approve
 690-24  the plan.
 690-25        (e)  The commission by rule shall adopt an approved local
 690-26  solid waste management plan.  (Sec. 363.063, Health and Safety
 690-27  Code.)
  691-1        Sec. 22.066.  Schedule for Adoption of Plans.  (a)  The
  691-2  commission shall establish a time schedule by which each planning
  691-3  region existing on September 1, 1989, shall develop a regional
  691-4  solid waste management plan, and local governments located in those
  691-5  planning regions shall develop local solid waste management plans
  691-6  as required by this section.
  691-7        (b)  The time schedule shall be based on the availability of
  691-8  funds to provide financial assistance to planning regions and local
  691-9  governments as prescribed by Sections 22.091 through 22.093 for the
 691-10  development of those plans.
 691-11        (c)  Unless otherwise required by federal law or federal
 691-12  regulations, a planning region or local government is not required
 691-13  to develop a solid waste management plan until after the date on
 691-14  which funds are provided to that planning region or local
 691-15  government by the commission as prescribed by Sections 22.091
 691-16  through 22.093 for the development of plans.
 691-17        (d)  Each planning region existing on September 1, 1989,
 691-18  shall develop a regional solid waste management plan, and local
 691-19  governments located in that planning region shall develop local
 691-20  solid waste management plans in accordance with the time schedule
 691-21  established by the commission and as provided by this subchapter.
 691-22  (Sec. 363.0635, Health and Safety Code.)
 691-23        Sec. 22.067.  Contents of Regional or Local Solid Waste
 691-24  Management Plan.  A regional or local solid waste management plan
 691-25  must:
 691-26              (1)  include a description and an assessment of current
 691-27  efforts in the geographic area covered by the plan to minimize
  692-1  production of municipal solid waste, including sludge, and efforts
  692-2  to reuse or recycle waste;
  692-3              (2)  identify additional opportunities for waste
  692-4  minimization and waste reuse or recycling;
  692-5              (3)  include a description and assessment of existing
  692-6  or proposed community programs for the collection of household
  692-7  hazardous waste;
  692-8              (4)  make recommendations for encouraging and achieving
  692-9  a greater degree of waste minimization and waste reuse or recycling
 692-10  in the geographic area covered by the plan;
 692-11              (5)  encourage cooperative efforts between local
 692-12  governments in the siting of landfills for the disposal of solid
 692-13  waste;
 692-14              (6)  consider the need to transport waste between
 692-15  municipalities, from a municipality to an area in the jurisdiction
 692-16  of a county, or between counties, particularly if a technically
 692-17  suitable site for a landfill does not exist in a particular area;
 692-18              (7)  allow a local government to justify the need for a
 692-19  landfill in its jurisdiction to dispose of the solid waste
 692-20  generated in the jurisdiction of another local government that does
 692-21  not have a technically suitable site for a landfill in its
 692-22  jurisdiction;
 692-23              (8)  establish recycling rate goals appropriate to the
 692-24  area covered by the plan; and
 692-25              (9)  recommend composting programs for yard waste and
 692-26  related organic wastes that may include:
 692-27                    (A)  creation and use of community composting
  693-1  centers;
  693-2                    (B)  adoption of the "Don't Bag It" program for
  693-3  lawn clippings developed by the Texas Agricultural Extension
  693-4  Service; and
  693-5                    (C)  development and promotion of education
  693-6  programs on home composting, community composting, and the
  693-7  separation of yard waste for use as mulch.  (Sec. 363.064, Health
  693-8  and Safety Code.)
  693-9        Sec. 22.068.  Planning Process; Planning Area.  (a)  A
 693-10  regional or local solid waste management plan must result from a
 693-11  planning process that:
 693-12              (1)  is related to proper management of solid waste in
 693-13  the planning area under consideration; and
 693-14              (2)  identifies problems and collects and evaluates
 693-15  data necessary to provide a written public statement of goals,
 693-16  objectives, and recommended actions intended to accomplish those
 693-17  goals and objectives.
 693-18        (b)  A regional solid waste management plan must consider the
 693-19  entire area in an identified planning region.
 693-20        (c)  A local solid waste management plan must consider all
 693-21  the area in the jurisdiction of one or more local governments but
 693-22  may not include an entire planning region.  (Sec. 363.065, Health
 693-23  and Safety Code.)
 693-24        Sec. 22.069.  Conformity With Regional or Local Solid Waste
 693-25  Management Plan.  (a)  On the adoption of a regional or local solid
 693-26  waste management plan by commission rule, public and private solid
 693-27  waste management activities and state regulatory activities must
  694-1  conform to that plan.
  694-2        (b)  The commission may grant a variance from the adopted
  694-3  plan under procedures and criteria adopted by the commission.
  694-4  (Sec. 363.066, Health and Safety Code.)
  694-5        Sec. 22.070.  Study Required for Resource Recovery or Other
  694-6  Solid Waste Management Systems.  (a)  To develop programs to
  694-7  implement regional or local solid waste management plans or other
  694-8  solid waste management alternatives that include resource recovery,
  694-9  a study must be made to determine feasibility and acceptance of the
 694-10  programs.
 694-11        (b)  The study shall be conducted in three phases:
 694-12              (1)  a screening study;
 694-13              (2)  a feasibility study; and
 694-14              (3)  an implementation study.
 694-15        (c)  Public agencies that conduct all or part of one or more
 694-16  phases may qualify for assistance to accomplish other phases or
 694-17  parts of phases.
 694-18        (d)  After each phase, the governing body shall determine
 694-19  whether to proceed to the next phase.
 694-20        (e)  A study may not include final design and working
 694-21  drawings of any request for proposals for project facilities or
 694-22  operations.  (Sec. 363.067, Health and Safety Code.)
 694-23        Sec. 22.071.  Screening Study.  (a)  A screening study must
 694-24  provide a survey and assessment of the various factors affecting
 694-25  the suitability of resource recovery or other solid waste
 694-26  management systems with the scope and detail needed to make an
 694-27  initial determination of whether those systems are potentially
  695-1  successful alternatives to existing systems.
  695-2        (b)  The survey and assessment must include:
  695-3              (1)  the amount and characteristics of available waste;
  695-4              (2)  the suitability and economics of existing solid
  695-5  waste management systems;
  695-6              (3)  institutional factors affecting potential
  695-7  alternatives;
  695-8              (4)  technologies available;
  695-9              (5)  identification of potential material and energy
 695-10  markets;
 695-11              (6)  economics of alternative systems; and
 695-12              (7)  interest of the local citizenry in available
 695-13  alternatives.  (Sec. 363.068, Health and Safety Code.)
 695-14        Sec. 22.072.  Feasibility Study.  A feasibility study must
 695-15  provide an evaluation of alternatives that:
 695-16              (1)  identifies current solid waste management
 695-17  practices and costs;
 695-18              (2)  analyzes the waste stream and its availability by
 695-19  composition and quantity;
 695-20              (3)  identifies potential markets and obtains
 695-21  statements of interest for recovered materials and energy;
 695-22              (4)  identifies and evaluates alternative solid waste
 695-23  management systems;
 695-24              (5)  provides an assessment of potential effects of
 695-25  alternatives in terms of their public health, physical, social,
 695-26  economic, fiscal, environmental, and aesthetic implications;
 695-27              (6)  conducts and evaluates results of public hearings
  696-1  or surveys of local citizens' opinions; and
  696-2              (7)  makes recommendations on alternatives for further
  696-3  consideration.  (Sec. 363.069, Health and Safety Code.)
  696-4        Sec. 22.073.  Implementation Study.  An implementation study
  696-5  must:
  696-6              (1)  provide a recommended course of action for a
  696-7  public agency;
  696-8              (2)  provide for the collection and analysis of data;
  696-9              (3)  identify and characterize solid waste problems and
 696-10  issues;
 696-11              (4)  determine waste stream composition and quantity;
 696-12              (5)  identify and analyze alternatives;
 696-13              (6)  evaluate risk elements of alternatives;
 696-14              (7)  identify and solidify markets;
 696-15              (8)  make site analyses;
 696-16              (9)  evaluate financing options and recommend preferred
 696-17  methods of financing;
 696-18              (10)  evaluate the application of resource recovery
 696-19  technologies;
 696-20              (11)  identify and discuss potential effects of
 696-21  alternative systems;
 696-22              (12)  provide for public participation and recommend
 696-23  preferred alternatives; and
 696-24              (13)  provide for implementation.  (Sec. 363.070,
 696-25  Health and Safety Code.)
 696-26            (Sections 22.074-22.090 reserved for expansion)
 696-27      SUBCHAPTER C.  PLANNING FUND AND TECHNICAL ASSISTANCE FUND
  697-1        Sec. 22.091.  Municipal Solid Waste Management Planning Fund.
  697-2  (a)  The municipal solid waste management planning fund is in the
  697-3  state treasury.
  697-4        (b)  In addition to money appropriated by the legislature,
  697-5  money received from other sources, including money received under
  697-6  contracts or agreements entered into under Section 22.116, shall be
  697-7  deposited to the credit of the planning fund.  (Sec. 363.091,
  697-8  Health and Safety Code.)
  697-9        Sec. 22.092.  Planning Fund Use; Financial Assistance to
 697-10  Local Governments and Planning Regions.  (a)  The executive
 697-11  director shall administer the financial assistance program and the
 697-12  planning fund under the commission's direction.
 697-13        (b)  The commission shall adopt rules for the use and
 697-14  distribution to public agencies and planning regions of money in
 697-15  the planning fund.
 697-16        (c)  The commission shall use the planning fund to provide
 697-17  financial assistance to:
 697-18              (1)  local governments and planning regions to develop
 697-19  regional and local solid waste management plans;
 697-20              (2)  public agencies and planning regions to prepare
 697-21  screening, feasibility, and implementation studies; and
 697-22              (3)  local governments and planning regions for costs
 697-23  of developing and implementing approved household hazardous waste
 697-24  diversion programs, excluding costs of disposal.
 697-25        (d)  The commission shall use at least 90 percent of the
 697-26  money appropriated to it for the planning fund to provide financial
 697-27  assistance, and not more than 10 percent of the total funds
  698-1  appropriated to the commission for the planning fund may be used to
  698-2  administer the financial assistance program and the planning fund
  698-3  and to pay the expenses of the advisory council.
  698-4        (e)  The planning fund may not be used for construction or to
  698-5  prepare final design and working drawings, acquire land or an
  698-6  interest in land, or pay for recovered resources.
  698-7        (f)  The commission by rule shall allocate a specific
  698-8  percentage of money provided under Subsection (c)(1) to be used to
  698-9  develop plans for community household hazardous waste collection
 698-10  programs.  (Sec. 363.092, Health and Safety Code.)
 698-11        Sec. 22.093.  Application for Financial Assistance.  (a)  An
 698-12  applicant for financial assistance from the planning fund must
 698-13  agree to comply with:
 698-14              (1)  the state solid waste management plan;
 698-15              (2)  the commission's municipal solid waste management
 698-16  rules; and
 698-17              (3)  other commission requirements.
 698-18        (b)  The commission may not authorize release of funds under
 698-19  a financial assistance application until the applicant furnishes to
 698-20  the commission a resolution adopted by the governing body of each
 698-21  public agency or planning region that is a party to the application
 698-22  certifying that:
 698-23              (1)  the applicant will comply with the financial
 698-24  assistance program's provisions and the commission's requirements;
 698-25              (2)  the funds will be used only for the purposes for
 698-26  which they are provided;
 698-27              (3)  regional or local solid waste management plans or
  699-1  studies developed with the financial assistance will be adopted by
  699-2  the governing body as its policy; and
  699-3              (4)  future municipal solid waste management activities
  699-4  will, to the extent reasonably feasible, conform to the regional or
  699-5  local solid waste management plan.
  699-6        (c)  Financial assistance provided by the commission to a
  699-7  public agency or planning region must be matched at least equally
  699-8  by funds provided by the recipient, except that this matching
  699-9  requirement does not apply if the recipient is a council of
 699-10  governments created under Chapter 391, Local Government Code, or a
 699-11  city or county.
 699-12        (d)  The priority given to applicants in receiving financial
 699-13  assistance must be determined by:
 699-14              (1)  the need to initiate or improve the solid waste
 699-15  management program in the applicant's jurisdiction;
 699-16              (2)  the needs of the state;
 699-17              (3)  the applicant's financial need; and
 699-18              (4)  the degree to which the proposed program will
 699-19  result in improvements that meet the requirements of state,
 699-20  regional, and local solid waste management plans.
 699-21        (e)  The commission may approve an application for financial
 699-22  assistance if:
 699-23              (1)  the application is consistent with the rules
 699-24  adopted by the commission under Section 22.092(b); and
 699-25              (2)  the commission finds that the applicant requires
 699-26  state financial assistance and that it is in the public interest to
 699-27  provide the financial assistance.  (Sec. 363.093, Health and Safety
  700-1  Code.)
  700-2        Sec. 22.094.  Municipal Solid Waste Resource Recovery Applied
  700-3  Research and Technical Assistance Fund.  (a)  The municipal solid
  700-4  waste resource recovery applied research and technical assistance
  700-5  fund is in the state treasury.
  700-6        (b)  The technical assistance fund is composed of legislative
  700-7  appropriations.
  700-8        (c)  The technical assistance fund shall be used to:
  700-9              (1)  accomplish applied research and development
 700-10  studies; and
 700-11              (2)  provide technical assistance to public agencies to
 700-12  carry out investigations and to make studies relating to resource
 700-13  recovery and improved municipal solid waste management.
 700-14        (d)  The commissioner shall administer the technical
 700-15  assistance fund under the commission's direction.  (Sec. 363.094,
 700-16  Health and Safety Code.)
 700-17        Sec. 22.095.  Use of Technical Assistance Fund.
 700-18  (a)  Studies, applied research, investigations, and other purposes
 700-19  accomplished with and technical assistance provided through use of
 700-20  money in the technical assistance fund must comply with:
 700-21              (1)  the state solid waste management plan;
 700-22              (2)  the commission's municipal solid waste management
 700-23  rules; and
 700-24              (3)  other commission policy requirements.
 700-25        (b)  Technical assistance, applied research, investigations,
 700-26  studies, and other purposes for which funds may be provided may
 700-27  include:
  701-1              (1)  an evaluation of the long-term statewide needs of
  701-2  public agencies in financing municipal solid waste systems and
  701-3  consideration of the nature and extent of financial support that
  701-4  the state should provide for those systems;
  701-5              (2)  an evaluation of state of the art waste reduction
  701-6  systems and waste-to-energy systems that include steam generation
  701-7  and electrical production;
  701-8              (3)  establishment and evaluation of a pilot source
  701-9  separation and recycling project;
 701-10              (4)  feasibility studies of appropriate technology that
 701-11  may be applicable to several local governments for the improvement
 701-12  of solid waste management systems;
 701-13              (5)  cost and economic comparisons of alternative solid
 701-14  waste management systems;
 701-15              (6)  an evaluation of available markets for energy and
 701-16  recovered materials;
 701-17              (7)  an evaluation of the availability of recovered
 701-18  materials and energy resources for new market opportunities; and
 701-19              (8)  a citizen involvement program to educate citizens
 701-20  in solid waste management issues and the improvement of solid waste
 701-21  management practices.
 701-22        (c)  The commission may hire personnel to be paid from the
 701-23  technical assistance fund and may use the technical assistance fund
 701-24  for obtaining consultant services and for entering into interagency
 701-25  agreements with other state agencies, public agencies, or planning
 701-26  regions.  (Sec. 363.095, Health and Safety Code.)
 701-27            (Sections 22.096-22.110 reserved for expansion)
  702-1       SUBCHAPTER D.  LOCAL SOLID WASTE SERVICES AND REGULATION
  702-2        Sec. 22.111.  Adoption of Rules by Public Agency.  (a)  A
  702-3  governing body may adopt rules for regulating solid waste
  702-4  collection, handling, transportation, storage, processing, and
  702-5  disposal.
  702-6        (b)  The rules may not authorize any activity, method of
  702-7  operation, or procedure prohibited by Chapter 20 (Solid Waste
  702-8  Disposal Act) or by rules or regulations of the commission or other
  702-9  state or federal agencies.  (Sec. 363.111, Health and Safety Code.)
 702-10        Sec. 22.112.  Prohibition of Processing or Disposal of Solid
 702-11  Waste in Certain Areas.  (a)  To prohibit the processing or
 702-12  disposal of solid waste in certain areas of a municipality or
 702-13  county, the governing body of the municipality or county must by
 702-14  ordinance or order specifically designate the area of the
 702-15  municipality or county, as appropriate, in which the disposal of
 702-16  solid waste will not be prohibited.
 702-17        (b)  The ordinance or order must be published for two
 702-18  consecutive weeks in a newspaper of general circulation in the area
 702-19  of the municipality or county, as appropriate, before the date the
 702-20  proposed ordinance or order is adopted by the governing body.
 702-21        (c)  This section does not apply to a municipality or county
 702-22  that has adopted solid waste management plans approved by the
 702-23  commission under Section 22.065.  (Sec. 363.112, Health and Safety
 702-24  Code.)
 702-25        Sec. 22.113.  Establishment of Solid Waste Management
 702-26  Services.  Each county with a population of more than 30,000 and
 702-27  each municipality shall review the provision of solid waste
  703-1  management services in its jurisdiction and shall assure that those
  703-2  services are provided to all persons in its jurisdiction by a
  703-3  public agency or private person.  (Sec. 363.113, Health and Safety
  703-4  Code.)
  703-5        Sec. 22.114.  Resource Recovery Service; Fees.  (a)  A public
  703-6  agency may offer a resource recovery service to persons in its
  703-7  jurisdictional boundaries and may charge fees for that service.
  703-8        (b)  To aid in enforcing collection of fees for a resource
  703-9  recovery service, a public agency, after notice and hearing, may
 703-10  suspend service provided by any utility owned or operated by the
 703-11  public agency to a person who is delinquent in payment of those
 703-12  fees.  (Sec. 363.114, Health and Safety Code.)
 703-13        Sec. 22.115.  Tax Exempt Status of Certain Resource Recovery
 703-14  Systems.  A resource recovery system acquired by a public agency to
 703-15  reduce municipal solid waste by mechanical means or incineration is
 703-16  exempt from property taxes of any municipality, county, school
 703-17  district, or other political subdivision of the state.  (Sec.
 703-18  363.115, Health and Safety Code.)
 703-19        Sec. 22.116.  Authority to Enter Contracts Concerning Solid
 703-20  Waste Management Services.  (a)  A public agency may enter into
 703-21  contracts to enable it to furnish or receive solid waste management
 703-22  services on the terms considered appropriate by the public agency's
 703-23  governing body.
 703-24        (b)  A home-rule municipality's charter provision restricting
 703-25  the duration of a municipal contract does not apply to a municipal
 703-26  contract that relates to solid waste management services.  (Sec.
 703-27  363.116, Health and Safety Code.)
  704-1        Sec. 22.117.  Solid Waste Management Service Contracts.
  704-2  Under a solid waste management service contract, a public agency
  704-3  may:
  704-4              (1)  acquire and operate all or any part of one or more
  704-5  solid waste management systems, including resource recovery
  704-6  systems;
  704-7              (2)  contract with a person or other public agency to
  704-8  manage solid waste for that person or agency;
  704-9              (3)  contract with a person to purchase or sell, by
 704-10  installments over a term considered desirable by the governing body
 704-11  or otherwise, all or any part of a solid waste management system,
 704-12  including a resource recovery system;
 704-13              (4)  contract with a person or other public agency for
 704-14  the operation of all or any part of a solid waste management
 704-15  system, including a resource recovery system;
 704-16              (5)  lease to or from a person or other public agency,
 704-17  for the term and on the conditions considered desirable by the
 704-18  governing body, all or any part of a solid waste management system,
 704-19  including a resource recovery system;
 704-20              (6)  contract to make all or any part of a solid waste
 704-21  management system available to other persons or public agencies and
 704-22  furnish solid waste management services through the public agency's
 704-23  system, provided the contract:
 704-24                    (A)  includes provisions to assure equitable
 704-25  treatment of parties who contract with the public agency for solid
 704-26  waste management services from all or any part of the same solid
 704-27  waste management system;
  705-1                    (B)  provides the method of determining the
  705-2  amounts to be paid by the parties;
  705-3                    (C)  provides that the public agency shall either
  705-4  operate or contract with a person to operate for the public agency
  705-5  a solid waste management system or part of a solid waste management
  705-6  system;
  705-7                    (D)  provides that the public agency is entitled
  705-8  to continued performance of the services after the amortization of
  705-9  the public agency's investment in the solid waste management system
 705-10  during the useful life of the system on payment of reasonable
 705-11  charges for the services, reduced to take into consideration the
 705-12  amortization; and
 705-13                    (E)  includes any other provisions and
 705-14  requirements the public agency determines to be appropriate;
 705-15              (7)  contract with another public agency or other
 705-16  persons for solid waste management services, including contracts
 705-17  for the collection and transportation of solid waste and for
 705-18  processing or disposal at a permitted solid waste management
 705-19  facility, including a resource recovery facility, provided the
 705-20  contract may specify:
 705-21                    (A)  the minimum quantity and quality of solid
 705-22  waste to be provided by the public agency; and
 705-23                    (B)  the minimum fees and charges to be paid by
 705-24  the public agency for the right to have solid waste processed or
 705-25  disposed of at the solid waste management facility;
 705-26              (8)  contract with a person or other public agency to
 705-27  supply materials, fuel, or energy resulting from the operation of a
  706-1  resource recovery facility; and
  706-2              (9)  contract with a person or other public agency to
  706-3  receive or purchase solid waste, materials, fuel, or energy
  706-4  recovered from resource recovery facilities.  (Sec. 363.117, Health
  706-5  and Safety Code.)
  706-6        Sec. 22.118.  Industrial Development Corporations.  (a)  A
  706-7  public agency that enters into a contract under Section 22.116 may
  706-8  sponsor the creation of an industrial development corporation as
  706-9  provided by the Development Corporation Act of 1979 (Article
 706-10  5190.6, Vernon's Texas Civil Statutes).
 706-11        (b)  If the system is located in the public agency's
 706-12  boundaries, the corporation may issue its bonds, notes, or other
 706-13  evidences of indebtedness to finance the costs of a solid waste
 706-14  management system, including a resource recovery system,
 706-15  contemplated under the contract.  (Sec. 363.118, Health and Safety
 706-16  Code.)
 706-17        Sec. 22.119.  Funding Solid Waste Management Services.
 706-18  (a)  A public agency may establish a solid waste management fund to
 706-19  make payments for solid waste management services covered by
 706-20  contracts entered into by the public agency.
 706-21        (b)  A public agency may agree to make sufficient provision
 706-22  in its annual budget to make payments under its contracts.
 706-23        (c)  Payments to be made by a public agency under a contract
 706-24  may also be made from revenues of the public agency's solid waste,
 706-25  water, sewer, electric, or gas system or any combination of utility
 706-26  systems.
 706-27        (d)  As a source of payment or as the sole source of payment,
  707-1  a public agency may use and pledge available revenues or resources
  707-2  for and to the payment of amounts due under contracts and may enter
  707-3  into covenants concerning those sources of payment to assure their
  707-4  availability if required.
  707-5        (e)  A public agency may establish, charge, and collect fees,
  707-6  rates, charges, rentals, and other amounts for services or
  707-7  facilities provided under or in connection with a contract.  Those
  707-8  fees, rates, charges, rentals, and other amounts may be charged to
  707-9  and collected from the residents of the public agency, if any, or
 707-10  from users or beneficiaries of the services or facilities and may
 707-11  include water charges, sewage charges, and solid waste disposal
 707-12  fees and charges, including solid waste collection or handling
 707-13  fees.  The public agency may use and pledge those fees, rates,
 707-14  charges, rentals, and other amounts to make payments required under
 707-15  a contract and may enter into a covenant to do so in amounts
 707-16  sufficient to make all or any part of the payments when due.
 707-17        (f)  A public agency that has taxing power, and that at the
 707-18  time of entering into a contract is using its general funds,
 707-19  including its tax revenues, to pay all or part of the costs of
 707-20  providing solid waste collection, transportation, and disposal
 707-21  services, may agree and pledge that the contract is an obligation
 707-22  against the taxing power of the public agency.  (Sec. 363.119,
 707-23  Health and Safety Code.)
 707-24            (Sections 22.120-22.130 reserved for expansion)
 707-25                         SUBCHAPTER E.  BONDS
 707-26        Sec. 22.131.  Authority to Issue Bonds.  (a)  A public agency
 707-27  may issue bonds in the name of the public agency to acquire,
  708-1  construct, improve, enlarge, and repair all or part of a solid
  708-2  waste management system, including a resource recovery system.
  708-3        (b)  Pending the issuance of definitive bonds, a public
  708-4  agency may issue negotiable interim bonds eligible for exchange or
  708-5  substitution on issuance of definitive bonds.  (Sec. 363.131,
  708-6  Health and Safety Code.)
  708-7        Sec. 22.132.  Terms; Form.  (a)  A public agency may issue
  708-8  its bonds in various series or issues.
  708-9        (b)  Bonds may mature serially or otherwise not more than 50
 708-10  years after the date of issuance and shall bear interest at a rate
 708-11  permitted by state law.
 708-12        (c)  A public agency's bonds and interest coupons, if any,
 708-13  are investment securities under Chapter 8, Business & Commerce
 708-14  Code, and may be:
 708-15              (1)  issued registrable as to principal or as to
 708-16  principal and interest; and
 708-17              (2)  made redeemable before maturity, at the option of
 708-18  the public agency, or may contain a mandatory redemption provision.
 708-19        (d)  A public agency's bonds may be issued in the form,
 708-20  denominations, and manner, and under the terms, and shall be signed
 708-21  and executed, as provided by the governing body in the resolution
 708-22  or order authorizing the bonds.  (Sec. 363.132, Health and Safety
 708-23  Code.)
 708-24        Sec. 22.133.  Bond Provisions.  (a)  In the orders or
 708-25  resolutions authorizing the issuance of bonds, including refunding
 708-26  bonds, the governing body may:
 708-27              (1)  provide for the flow of funds and the
  709-1  establishment and maintenance of the interest and sinking fund, the
  709-2  reserve fund, and other funds; and
  709-3              (2)  make additional covenants with respect to the
  709-4  bonds, the pledged revenues, and the operation and maintenance of
  709-5  the physical property of the solid waste management system, the
  709-6  revenue of which is pledged.
  709-7        (b)  In the orders or resolutions authorizing the issuance of
  709-8  bonds, the governing body may:
  709-9              (1)  prohibit the further issuance of bonds or other
 709-10  obligations payable from the pledged revenue or may reserve the
 709-11  right to issue additional bonds to be secured by a pledge of and
 709-12  payable from the revenue on a parity with or subordinate to the
 709-13  lien and pledge in support of the bonds being issued; and
 709-14              (2)  include other provisions as the governing body may
 709-15  determine.
 709-16        (c)  The governing body may adopt and have executed any other
 709-17  proceedings or instruments necessary and convenient in the issuance
 709-18  of bonds.  (Sec. 363.133, Health and Safety Code.)
 709-19        Sec. 22.134.  Approval and Registration.  (a)  A public
 709-20  agency shall submit bonds issued by the public agency and records
 709-21  relating to their issuance to the attorney general for examination
 709-22  as to their validity.  If the bonds are secured by a pledge of
 709-23  proceeds from a contract, the public agency shall submit to the
 709-24  attorney general for examination a copy of the contract and a copy
 709-25  of the records relating to the contract.
 709-26        (b)  If the attorney general finds that the bonds have been
 709-27  authorized and a contract entered into in accordance with law, the
  710-1  attorney general shall approve the bonds, and the comptroller shall
  710-2  register the bonds.
  710-3        (c)  Following approval and registration, the bonds are
  710-4  incontestable and are binding obligations according to their terms.
  710-5  (Sec. 363.134, Health and Safety Code.)
  710-6        Sec. 22.135.  Bond Payment and Security.  A public agency may
  710-7  pay the principal of and interest on bonds:
  710-8              (1)  from the levy and collection of taxes on all
  710-9  taxable property in the public agency's boundaries if the public
 710-10  agency is authorized by law to levy and collect property taxes;
 710-11              (2)  by pledging all or part of the designated revenues
 710-12  from the ownership or operation of physical property of a solid
 710-13  waste management system, including a resource recovery system, or
 710-14  from a contract entered into by a public agency under this chapter;
 710-15  or
 710-16              (3)  from other income of the public agency.  (Sec.
 710-17  363.135, Health and Safety Code.)
 710-18        Sec. 22.136.  Bond Election.  Bonds secured in whole or in
 710-19  part by taxes may not be issued by a public agency until authorized
 710-20  by a majority vote of the qualified voters of the public agency at
 710-21  an election ordered for that purpose.  A bond election shall be
 710-22  held in the manner provided by law for other bond elections of the
 710-23  public agency.  (Sec. 363.136, Health and Safety Code.)
 710-24        Sec. 22.137.  Other Security.  (a)  The bonds may be
 710-25  additionally secured by a deed of trust or mortgage lien on part or
 710-26  all of the physical property of a solid waste management system,
 710-27  including a resource recovery system, of the public agency and
  711-1  rights appurtenant to that property.
  711-2        (b)  The deed of trust or mortgage lien may give the trustee
  711-3  the power to operate the property, sell the property to pay the
  711-4  debt, or take any other action to secure the bonds.  A purchaser at
  711-5  a sale under a deed of trust or mortgage lien is the absolute owner
  711-6  of the property and rights purchased.
  711-7        (c)  Regardless of any deed of trust or mortgage lien under
  711-8  Subsection (a), the trust indenture may:
  711-9              (1)  contain any provision that the governing body
 711-10  prescribes for the security of the bonds and the preservation of
 711-11  the trust estate;
 711-12              (2)  provide for amendment or modification of the trust
 711-13  indenture; and
 711-14              (3)  provide for investment of the public agency's
 711-15  funds.  (Sec. 363.137, Health and Safety Code.)
 711-16        Sec. 22.138.  Bond Sale and Exchange.  (a)  A public agency
 711-17  may sell bonds at a public or private sale at a price and on terms
 711-18  determined by the governing body.
 711-19        (b)  The public agency may exchange its bonds for property or
 711-20  an interest in property that its governing body considers necessary
 711-21  or convenient to carry out this chapter.  (Sec. 363.138, Health and
 711-22  Safety Code.)
 711-23        Sec. 22.139.  Investment and Use of Proceeds.  (a)  Money may
 711-24  be set aside out of bond proceeds to provide for:
 711-25              (1)  interest to accrue on the bonds;
 711-26              (2)  administrative expenses up to the estimated date
 711-27  on which the solid waste management system will produce revenue;
  712-1  and
  712-2              (3)  reserve funds created by the resolution that
  712-3  authorized the bonds.
  712-4        (b)  Proceeds from the sale of bonds may be invested, pending
  712-5  their use, in the securities or time deposits specified by the
  712-6  resolution authorizing the issuance of the bonds or the trust
  712-7  indenture securing the bonds.
  712-8        (c)  The earnings on the investments may be applied as
  712-9  provided by the resolution or trust indenture.  (Sec. 363.139,
 712-10  Health and Safety Code.)
 712-11        Sec. 22.140.  Refunding Bonds.  (a)  A public agency may
 712-12  issue refunding bonds to refund all or part of its outstanding
 712-13  bonds, including matured but unpaid interest coupons.
 712-14        (b)  Refunding bonds:
 712-15              (1)  mature serially or otherwise not more than 50
 712-16  years after the date of issuance and bear interest at a rate
 712-17  permitted by state law; and
 712-18              (2)  may be payable from the same source as the bonds
 712-19  being refunded or from other additional sources.
 712-20        (c)  Refunding bonds must be approved by the attorney general
 712-21  in the same manner as other bonds.
 712-22        (d)  The comptroller shall register refunding bonds:
 712-23              (1)  on the surrender and cancellation of the original
 712-24  bonds; or
 712-25              (2)  without surrender and cancellation of the original
 712-26  bonds if:
 712-27                    (A)  the order or resolution authorizing the
  713-1  refunding bonds provides that their proceeds be deposited in the
  713-2  place where the original bonds are payable; and
  713-3                    (B)  the refunding bonds are issued in an amount
  713-4  sufficient to pay the principal of and interest on the original
  713-5  bonds up to their maturity date or to their option date if the
  713-6  bonds are called for payment before maturity according to their
  713-7  terms.
  713-8        (e)  A public agency may refund bonds in one or several
  713-9  installments.
 713-10        (f)  Instead of the method provided by this section, a public
 713-11  agency may refund bonds, notes, or other obligations as provided by
 713-12  general law.  (Sec. 363.140, Health and Safety Code.)
 713-13        Sec. 22.141.  Legal Investments; Security for Deposits.
 713-14  (a)  Public agency bonds are legal and authorized investments for:
 713-15              (1)  a bank;
 713-16              (2)  a savings bank;
 713-17              (3)  a trust company;
 713-18              (4)  a savings and loan association;
 713-19              (5)  an insurance company;
 713-20              (6)  a fiduciary;
 713-21              (7)  a trustee;
 713-22              (8)  a guardian; and
 713-23              (9)  a sinking fund of a municipality, county, school
 713-24  district, or other political subdivision of the state and other
 713-25  public funds of the state, including the permanent school fund.
 713-26        (b)  Public agency bonds may secure the deposits of public
 713-27  funds of the state or a municipality, county, school district, or
  714-1  other political subdivision of the state.  The bonds are lawful and
  714-2  sufficient security for deposits to the extent of their value, if
  714-3  accompanied by all unmatured coupons.  (Sec. 363.141, Health and
  714-4  Safety Code.)
  714-5        Sec. 22.142.  Tax Status of Bonds.  Since a public agency is
  714-6  a public entity performing an essential public function, bonds
  714-7  issued by the public agency, any transaction relating to the bonds,
  714-8  and profits made in the sale of the bonds are exempt from taxation
  714-9  by the state or by a municipality, county, special district, or
 714-10  other political subdivision of the state.  (Sec. 363.142, Health
 714-11  and Safety Code.)
 714-12        Sec. 22.143.  Fees for Services.  (a)  While bonds are
 714-13  outstanding, the governing body may adopt and collect fees for
 714-14  services furnished or made available by the solid waste management
 714-15  system, including a resource recovery system.
 714-16        (b)  The fees must be adequate to provide and maintain the
 714-17  funds created by the resolution authorizing the bonds and to pay:
 714-18              (1)  operational costs or expenses allocable to the
 714-19  solid waste management system, including a resource recovery
 714-20  system; and
 714-21              (2)  the principal of and interest on the bonds.  (Sec.
 714-22  363.143, Health and Safety Code.)
 714-23        Sec. 22.144.  Adjustment of Rates for Adequate Revenue.  A
 714-24  public agency shall adopt and adjust the rates charged for solid
 714-25  waste management services so that revenues, together with taxes
 714-26  levied to support the services, will be sufficient to pay:
 714-27              (1)  the expense of operating and maintaining the solid
  715-1  waste management system, including a resource recovery system;
  715-2              (2)  the public agency's obligations under a contract;
  715-3  and
  715-4              (3)  the public agency's obligations under and in
  715-5  connection with bonds issued that are secured by revenues from the
  715-6  solid waste management service or a solid waste management system,
  715-7  including a resource recovery system.  (Sec. 363.144, Health and
  715-8  Safety Code.)
  715-9        Sec. 22.145.  Bond Anticipation Notes.  (a)  A public agency
 715-10  may declare an emergency if funds are not available to pay the
 715-11  principal of or interest on the public agency's bonds issued under
 715-12  this chapter.
 715-13        (b)  The public agency may issue negotiable bond anticipation
 715-14  notes to borrow the money needed in an emergency, and the bond
 715-15  anticipation notes may bear interest at any rate authorized by
 715-16  state law and shall mature within one year of the date of issuance.
 715-17        (c)  The bond anticipation notes may be paid with the
 715-18  proceeds of bonds, or bonds may be issued and delivered in exchange
 715-19  for and in substitution of bond anticipation notes.  (Sec. 363.145,
 715-20  Health and Safety Code.)
 715-21            (Sections 22.146-22.200 reserved for expansion)
 715-22              SUBCHAPTER F.  GARBAGE RECLAMATION PROJECT
 715-23                      OPERATED BY A MUNICIPALITY
 715-24        Sec. 22.201.  Definitions.  In this subchapter:
 715-25              (1)  "Municipality" means an incorporated city or town.
 715-26              (2)  "Garbage reclamation project" means an undertaking
 715-27  by which solid waste products are converted into a form usable by
  716-1  persons for the production of energy or any other purpose.
  716-2  (V.A.C.S. Art. 4477-7b, Sec. 1.)
  716-3        Sec. 22.202.  Authority to Own and Operate.  A municipality
  716-4  may own and operate a garbage reclamation project.  (V.A.C.S. Art.
  716-5  4477-7b, Sec. 2.)
  716-6        Sec. 22.203.  Issuance of Bonds.  If necessary for a
  716-7  municipality to carry out the authority granted by Section 22.202,
  716-8  the governing body of the municipality may issue and sell bonds in
  716-9  the name of the municipality to finance:
 716-10              (1)  the purchase, lease, or acquisition by any other
 716-11  method of land, facilities, equipment, or supplies;
 716-12              (2)  the construction or improvement of facilities; or
 716-13              (3)  the installation of equipment.  (V.A.C.S. Art.
 716-14  4477-7b, Sec. 3.)
 716-15        Sec. 22.204.  Manner of Repayment of Bonds.  The governing
 716-16  body of the municipality may provide for the payment of principal
 716-17  of and interest on the bonds in any one of the following manners:
 716-18              (1)  from the levy and collection of ad valorem taxes
 716-19  on all taxable property in the municipality;
 716-20              (2)  by pledging all or any part of designated revenues
 716-21  from the ownership or operation of the garbage reclamation project;
 716-22  or
 716-23              (3)  from a combination of the sources listed in
 716-24  Subdivisions (1) and (2).  (V.A.C.S. Art. 4477-7b, Sec. 4.)
 716-25        Sec. 22.205.  Additional Security for Bonds.  (a)  The bonds
 716-26  may be additionally secured by a deed of trust or mortgage lien on
 716-27  part or all of the physical properties of the garbage reclamation
  717-1  project and rights appurtenant to the properties, vesting in the
  717-2  trustee power to sell the properties for payment of the
  717-3  indebtedness, power to operate the properties, and all other powers
  717-4  necessary for the further security of the bonds.
  717-5        (b)  The trust indenture, regardless of the existence of the
  717-6  deed of trust or mortgage lien on the properties, may contain
  717-7  provisions prescribed by the governing body of the municipality for
  717-8  the security of the bonds and the preservation of the trust estate
  717-9  and may make provisions for amendment or modification and may make
 717-10  provisions for investment of revenue from the garbage reclamation
 717-11  project.
 717-12        (c)  A purchaser under a sale under the deed of trust or
 717-13  mortgage lien becomes absolute owner of the properties and rights
 717-14  purchased and may maintain and operate them.  (V.A.C.S. Art.
 717-15  4477-7b, Sec. 5.)
 717-16        Sec. 22.206.  Bond Election.  (a)  The governing body of the
 717-17  municipality may not issue the bonds until authorized to do so by a
 717-18  majority vote of the qualified voters of the municipality at an
 717-19  election called for that purpose.
 717-20        (b)  Except as provided by this subchapter, the election
 717-21  shall be held, to the extent practicable, in accordance with the
 717-22  bond election procedures established by Chapter 1, Title 22,
 717-23  Revised Statutes, as amended (Article 701 et seq., Vernon's Texas
 717-24  Civil Statutes).
 717-25        (c)  At an election to authorize bonds payable wholly from ad
 717-26  valorem taxes, the ballots must be printed to provide for voting
 717-27  for or against the proposition:  "The issuance of bonds for a
  718-1  garbage reclamation project in the amount of $__________ and the
  718-2  levy of taxes for payment of the bonds."  At an election to
  718-3  authorize bonds payable wholly from revenues from the garbage
  718-4  reclamation project, the ballots must be printed to provide for
  718-5  voting for or against the proposition:  "The issuance of bonds for
  718-6  a garbage reclamation project in the amount of $__________ and the
  718-7  pledge of net revenues from the project for the payment of the
  718-8  bonds."  At any election to authorize bonds payable from both ad
  718-9  valorem taxes and revenues from the garbage reclamation project,
 718-10  the ballots must be printed to provide for voting for or against
 718-11  the proposition:  "The issuance of bonds for a garbage reclamation
 718-12  project in the amount of $__________ and the pledge of net revenues
 718-13  and the levy of ad valorem taxes adequate to provide for the
 718-14  payment of the bonds."  (V.A.C.S. Art. 4477-7b, Sec. 6.)
 718-15        Sec. 22.207.  Form of Bonds.  (a)  A municipality may issue
 718-16  its bonds in various series or issues.
 718-17        (b)  Bonds may mature serially or otherwise not more than 40
 718-18  years from their date and shall bear interest at any rate permitted
 718-19  by the constitution and laws of the state.
 718-20        (c)  A municipality's bonds and interest coupons, if any, are
 718-21  investment securities under the terms of Chapter 8 of the Business
 718-22  & Commerce Code and may be issued registrable as to principal or as
 718-23  to both principal and interest and may be made redeemable before
 718-24  maturity, at the option of the municipality, or may contain a
 718-25  mandatory redemption provision.
 718-26        (d)  A municipality's bonds may be issued in the form,
 718-27  denominations, and manner and under the terms, conditions, and
  719-1  details and shall be signed and executed as provided by the
  719-2  governing body of the municipality in the resolution or order
  719-3  authorizing their issuance.  (V.A.C.S. Art. 4477-7b, Sec. 7.)
  719-4        Sec. 22.208.  Provisions of Bonds.  (a)  In the orders or
  719-5  resolutions authorizing the issuance of bonds, including refunding
  719-6  bonds, the governing body of the municipality may provide for the
  719-7  flow of funds, the establishment and maintenance of the interest
  719-8  and sinking fund, the reserve fund, and other funds and may make
  719-9  additional covenants with respect to the bonds, the pledged
 719-10  revenues, and the operation and maintenance of the garbage
 719-11  reclamation project, the revenue of which is pledged.
 719-12        (b)  The orders or resolutions of the governing body of the
 719-13  municipality authorizing the issuance of bonds may also prohibit
 719-14  the further issuance of bonds or other obligations payable from the
 719-15  pledged revenue or may reserve the right to issue additional bonds
 719-16  to be secured by a pledge of and payable from the revenue on a
 719-17  parity with or subordinate to the lien and pledge in support of the
 719-18  bonds being issued.
 719-19        (c)  The orders or resolutions of the governing body of the
 719-20  municipality issuing bonds may contain other provisions and
 719-21  covenants as the governing body may determine.
 719-22        (d)  The governing body of the municipality may adopt and
 719-23  have executed any other proceedings or instruments necessary and
 719-24  convenient in the issuance of bonds.  (V.A.C.S. Art. 4477-7b, Sec.
 719-25  8.)
 719-26        Sec. 22.209.  Approval by Attorney General; Registration by
 719-27  Comptroller.  (a)  The bonds issued by the municipality must be
  720-1  submitted to the attorney general for examination.
  720-2        (b)  If the attorney general finds that the bonds have been
  720-3  authorized in accordance with law, he shall approve them, and they
  720-4  shall be registered by the comptroller of public accounts.
  720-5        (c)  After the approval and registration of bonds, the bonds
  720-6  are incontestable in any court or other forum, for any reason, and
  720-7  are valid and binding obligations in accordance with their terms
  720-8  for all purposes.  (V.A.C.S. Art. 4477-7b, Sec. 9.)
  720-9        Sec. 22.210.  Refunding Bonds.  (a)  A municipality may issue
 720-10  bonds to refund all or any part of its outstanding bonds issued
 720-11  under this subchapter, including matured but unpaid interest
 720-12  coupons.
 720-13        (b)  Refunding bonds shall mature serially or otherwise not
 720-14  more than 40 years from their date and shall bear interest at any
 720-15  rate or rates permitted by the constitution and laws of the state.
 720-16        (c)  Refunding bonds may be payable from the same source as
 720-17  the bonds being refunded or from other additional sources.
 720-18        (d)  The refunding bonds must be approved by the attorney
 720-19  general as in the case of other bonds and shall be registered by
 720-20  the comptroller on the surrender and cancellation of the bonds
 720-21  being refunded.
 720-22        (e)  The orders or resolutions authorizing the issuance of
 720-23  the refunding bonds may provide that they be sold and the proceeds
 720-24  deposited in the place or places at which the bonds being refunded
 720-25  are payable, in which case the refunding bonds may be issued before
 720-26  the cancellation of the bonds being refunded.  If refunding bonds
 720-27  are issued before cancellation of the other bonds, an amount
  721-1  sufficient to pay the principal of and interest on the bonds being
  721-2  refunded to their maturity dates or to their option dates if the
  721-3  bonds have been duly called for payment prior to maturity according
  721-4  to their terms shall be deposited in the place or places at which
  721-5  the bonds being refunded are payable.  The comptroller shall
  721-6  register the refunding bonds without the surrender and cancellation
  721-7  of bonds being refunded.
  721-8        (f)  A refunding may be accomplished in one or in several
  721-9  installment deliveries.  Refunding bonds and their interest coupons
 721-10  are investment securities under Chapter 8 of the Business &
 721-11  Commerce Code.
 721-12        (g)  In lieu of the method set forth in Subsections (a)
 721-13  through (f), a municipality may refund bonds, notes, or other
 721-14  obligations as provided by the general laws of the state.
 721-15  (V.A.C.S. Art. 4477-7b, Sec. 10.)
 721-16        Sec. 22.211.  Bonds as Investments.  The bonds are legal and
 721-17  authorized investments for:
 721-18              (1)  banks;
 721-19              (2)  savings banks;
 721-20              (3)  trust companies;
 721-21              (4)  savings and loan associations;
 721-22              (5)  insurance companies;
 721-23              (6)  fiduciaries;
 721-24              (7)  trustees;
 721-25              (8)  guardians; and
 721-26              (9)  sinking funds of municipalities, counties, school
 721-27  districts, and other political subdivisions of the state and other
  722-1  public funds of the state and its agencies, including the permanent
  722-2  school fund.  (V.A.C.S. Art. 4477-7b, Sec. 11.)
  722-3        Sec. 22.212.  Bonds as Security for Deposits.  The bonds are
  722-4  eligible to secure deposits of public funds of the state and
  722-5  municipalities, counties, school districts, and other political
  722-6  subdivisions of the state.  The bonds are lawful and sufficient
  722-7  security for deposits to the extent of their value when accompanied
  722-8  by all unmatured coupons.  (V.A.C.S. Art. 4477-7b, Sec. 12.)
  722-9        Sec. 22.213.  Tax Status of Bonds.  Since the operation of a
 722-10  garbage reclamation project is an essential public function, the
 722-11  bonds issued by the municipality, any transaction relating to the
 722-12  bonds, and profits made in the sale of the bonds are free from
 722-13  taxation by the state or by any municipality, county, special
 722-14  district, or other political subdivision of the state.  (V.A.C.S.
 722-15  Art. 4477-7b, Sec. 13.)
 722-16        Sec. 22.214.  Levy of Taxes.  (a)  The governing body of the
 722-17  municipality may annually levy ad valorem taxes to pay the bonds
 722-18  issued by the municipality under this subchapter.
 722-19        (b)  The municipality may not levy ad valorem taxes to pay
 722-20  the principal of or interest on bonds issued under this subchapter
 722-21  payable wholly from revenues from a garbage reclamation project.
 722-22  (V.A.C.S. Art. 4477-7b, Sec. 14.)
 722-23                    CHAPTER 23.  COUNTY SOLID WASTE
 722-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 722-25        Sec. 23.001.  Short Title.  This chapter may be cited as the
 722-26  County Solid Waste Control Act.  (Sec. 364.001, Health and Safety
 722-27  Code.)
  723-1        Sec. 23.002.  Purpose.  The purpose of this chapter is to
  723-2  authorize a cooperative effort by counties, public agencies, and
  723-3  other persons for the safe and economical collection,
  723-4  transportation, and disposal of solid waste to control pollution in
  723-5  this state.  (Sec. 364.002, Health and Safety Code.)
  723-6        Sec. 23.003.  Definitions.  In this chapter:
  723-7              (1)  "Composting" has the meaning assigned by Chapter
  723-8  20 (Solid Waste Disposal Act).
  723-9              (2)  "District" means a district or authority created
 723-10  under Article XVI, Section 59, or Article III, Section 52, of the
 723-11  Texas Constitution.
 723-12              (3)  "Public agency" means a district, municipality,
 723-13  regional planning commission created under Chapter 391, Local
 723-14  Government Code, or other political subdivision or state agency
 723-15  authorized to own and operate a solid waste collection,
 723-16  transportation, or disposal facility or system.
 723-17              (4)  "Sanitary landfill" has the meaning assigned by
 723-18  Chapter 20 (Solid Waste Disposal Act).
 723-19              (5)  "Solid waste" has the meaning assigned by Chapter
 723-20  20 (Solid Waste Disposal Act).
 723-21              (6)  "Solid waste disposal system" means a plant,
 723-22  composting process plant, incinerator, sanitary landfill, or other
 723-23  works and equipment that are acquired, installed, or operated to
 723-24  collect, handle, store, treat, neutralize, stabilize, or dispose of
 723-25  solid waste, and includes the sites.  (Sec. 364.003, Health and
 723-26  Safety Code.)
 723-27            (Sections 23.004-23.010 reserved for expansion)
  724-1             SUBCHAPTER B.  COUNTY SOLID WASTE MANAGEMENT
  724-2        Sec. 23.011.  County Adoption of Solid Waste Rules.
  724-3  (a)  Subject to the limitation provided by Sections 20.151 and
  724-4  20.152 (Solid Waste Disposal Act), a commissioners court by rule
  724-5  may regulate solid waste collection, handling, storage, and
  724-6  disposal in areas of the county not in a municipality or the
  724-7  extraterritorial jurisdiction of a municipality.
  724-8        (b)  A county, in making any rules, including those under the
  724-9  licensing power granted by Chapter 20 (Solid Waste Disposal Act),
 724-10  may not impose an unreasonable requirement on the disposal of the
 724-11  solid waste in the county not warranted by the circumstances.
 724-12        (c)  A rule adopted under this section may not authorize an
 724-13  activity, method of operation, or procedure that is prohibited by
 724-14  Chapter 20 (Solid Waste Disposal Act) or by rules of the
 724-15  commission.
 724-16        (d)  A county may institute legal proceedings to enforce its
 724-17  rules.  (Sec. 364.011, Health and Safety Code.)
 724-18        Sec. 23.012.  Prohibiting Solid Waste Disposal in County.
 724-19  (a)  The county may prohibit the disposal of solid waste in the
 724-20  county if the disposal of the solid waste is a threat to the public
 724-21  health, safety, and welfare.
 724-22        (b)  To prohibit the disposal of solid waste in a county, the
 724-23  commissioners court must adopt an ordinance in the general form
 724-24  prescribed for municipal ordinances specifically designating the
 724-25  area of the county in which solid waste disposal is not prohibited.
 724-26  The requirement in this subsection does not apply if the county has
 724-27  adopted solid waste disposal guidelines approved by the commission.
  725-1        (c)  An ordinance required by Subsection (b) may be passed on
  725-2  first reading, but the proposed ordinance must be published in a
  725-3  newspaper of general circulation in the county for two consecutive
  725-4  weeks before the commissioners court considers the proposed
  725-5  ordinance.  The publication must contain:
  725-6              (1)  a statement of the time, place, and date that the
  725-7  commissioners court will consider the proposed ordinance; and
  725-8              (2)  notice that an interested citizen of the county
  725-9  may testify at the hearing.
 725-10        (d)  A public hearing must be held on a proposed ordinance
 725-11  before it is considered by the commissioners court, and any
 725-12  interested citizen of the county shall be allowed to testify.
 725-13  (Sec. 364.012, Health and Safety Code.)
 725-14        Sec. 23.013.  County Authority.  A county may:
 725-15              (1)  acquire, construct, improve, enlarge, repair,
 725-16  operate, and maintain all or part of one or more solid waste
 725-17  disposal systems;
 725-18              (2)  contract with a person to collect, transport,
 725-19  handle, store, or dispose of solid waste for that person;
 725-20              (3)  contract with a person to purchase or sell, by
 725-21  installments for a term considered desirable, all or part of a
 725-22  solid waste disposal system;
 725-23              (4)  enter into an operating agreement with a person,
 725-24  for the terms and on the conditions considered desirable, for the
 725-25  operation of all or part of a solid waste disposal system by that
 725-26  person or by the county; and
 725-27              (5)  lease to or from a person, for the term and on the
  726-1  conditions considered desirable, all or part of a solid waste
  726-2  disposal system.  (Sec. 364.013, Health and Safety Code.)
  726-3        Sec. 23.014.  Acquisition of Property.  (a)  A county may
  726-4  acquire by purchase, lease, gift, condemnation, or any other manner
  726-5  and may own, maintain, use, and operate property or an interest in
  726-6  property necessary or convenient to the exercise of the powers and
  726-7  purposes provided by this chapter.
  726-8        (b)  The power of eminent domain is restricted to the county
  726-9  and may be exercised in the manner provided by law.
 726-10        (c)  A county may not exercise the power of eminent domain to
 726-11  acquire real property under this section if that power conflicts
 726-12  with a corporation's power of eminent domain as provided by law.
 726-13  (Sec. 364.014, Health and Safety Code.)
 726-14        Sec. 23.015.  Dumping or Garbage Disposal Grounds.  The
 726-15  commissioners court shall determine the consideration to be paid to
 726-16  acquire real property on which to locate dumping or garbage
 726-17  disposal grounds.  In determining where to locate dumping or
 726-18  garbage disposal grounds, the commissioners court shall consider:
 726-19              (1)  the convenience of the people to be served; and
 726-20              (2)  the general health of, and the annoyance to, the
 726-21  community to be served by the dumping or garbage disposal grounds.
 726-22  (Sec. 364.015, Health and Safety Code.)
 726-23        Sec. 23.016.  Cost of Certain Required Alterations.  The
 726-24  relocation, raising, rerouting, changing of grade, or altering of
 726-25  construction of a highway, railroad, electric transmission line,
 726-26  telegraph or telephone property or facility, or pipeline made
 726-27  necessary by the actions of a county shall be accomplished at the
  727-1  sole expense of the county, which shall pay the cost of the
  727-2  required activity as necessary to provide comparable replacement,
  727-3  minus the net salvage value of any replaced facility.  (Sec.
  727-4  364.016, Health and Safety Code.)
  727-5            (Sections 23.017-23.030 reserved for expansion)
  727-6             SUBCHAPTER C.  SOLID WASTE MANAGEMENT SYSTEMS
  727-7                         AND SERVICE CONTRACTS
  727-8        Sec. 23.031.  Public Agency Contracts.  (a)  A public agency
  727-9  may contract with a county for the county to:
 727-10              (1)  make all or part of a solid waste disposal system
 727-11  available to a public agency, a group of public agencies, or other
 727-12  persons; and
 727-13              (2)  furnish solid waste collection, transportation,
 727-14  handling, storage, or disposal services through the county's
 727-15  system.
 727-16        (b)  The contract may:
 727-17              (1)  be for the duration agreed on by the parties;
 727-18              (2)  provide that the contract remains in effect until
 727-19  bonds issued or to be issued by the county and refunding bonds
 727-20  issued for those original bonds are paid;
 727-21              (3)  contain provisions to assure equitable treatment
 727-22  of parties who contract with the county for solid waste collection,
 727-23  transportation, handling, storage, or disposal services from the
 727-24  same solid waste disposal system;
 727-25              (4)  provide for the sale or lease to or use by the
 727-26  county of a solid waste disposal system owned or to be acquired by
 727-27  the public agency;
  728-1              (5)  provide that the county will operate a solid waste
  728-2  disposal system owned or to be acquired by the public agency;
  728-3              (6)  provide that the public agency is entitled to
  728-4  continued performance of services after the amortization of the
  728-5  county's investment in the disposal system during the useful life
  728-6  of the system on payment of reasonable charges, reduced to take
  728-7  into consideration the amortization; and
  728-8              (7)  contain any other provisions and requirements the
  728-9  county and the public agency determine to be appropriate or
 728-10  necessary.
 728-11        (c)  The contract must provide the method to determine the
 728-12  amount the public agency will pay to the county.
 728-13        (d)  A municipality may provide in its contract that the
 728-14  county has the right to use the streets, alleys, and public ways
 728-15  and places in the municipality during the term of the contract.
 728-16  (Sec. 364.031, Health and Safety Code.)
 728-17        Sec. 23.032.  Public Agency Payments.  (a)  Public agency
 728-18  payments to a county for solid waste collection, transportation,
 728-19  handling, storage, or disposal services may be made from income of
 728-20  the public agency's solid waste disposal fund as provided by the
 728-21  contract between the county and the public agency.  The payments
 728-22  are an operating expense of the fund, and the revenues of the fund
 728-23  are to be applied toward those payments.
 728-24        (b)  Public agency payments to be made under the contract may
 728-25  be made from revenues of the public agency's water, sewer,
 728-26  electric, or gas system or a combination of utility systems.
 728-27        (c)  Unless the ordinance or resolution authorizing the
  729-1  outstanding bonds of the public agency expressly reserves the right
  729-2  to accord contract payments a position of parity with, or a
  729-3  priority over, the public agency's bond requirements, the payments
  729-4  under a contract are subordinate to amounts required to be paid
  729-5  from the revenues of the utility system for principal of and
  729-6  interest on bonds of the public agency that are:
  729-7              (1)  outstanding at the time the contract is made; and
  729-8              (2)  payable from those revenues.  (Sec. 364.032,
  729-9  Health and Safety Code.)
 729-10        Sec. 23.033.  Alternative Payment Procedure Using Tax Funds.
 729-11  (a)  A contract between a public agency and a county that is
 729-12  authorized by the public agency's governing body is an obligation
 729-13  against the public agency's taxing power to the extent provided by
 729-14  the contract if:
 729-15              (1)  the public agency holds an election according to
 729-16  applicable procedure provided by Chapter 1, Title 22, Revised
 729-17  Statutes, relating to the issuance of bonds by a municipality; and
 729-18              (2)  at the election, it is determined that the public
 729-19  agency's governing body may levy an ad valorem tax to make any
 729-20  payments required of the public agency under the contract.
 729-21        (b)  Except for the levy of a tax under this section, an
 729-22  election is not required for the exercise of a power granted by
 729-23  this chapter.
 729-24        (c)  Only qualified voters of the public agency are entitled
 729-25  to vote at an election held under this section, and except as
 729-26  otherwise provided by this section and by Chapter 1, Title 22,
 729-27  Revised Statutes, the Election Code governs an election under this
  730-1  section.
  730-2        (d)  If the alternative procedure for payment provided by
  730-3  this section is followed, payments under the contract may be:
  730-4              (1)  payable from and are solely an obligation against
  730-5  the taxing power of the public agency; or
  730-6              (2)  payable both from taxes and from revenues as
  730-7  provided by the contract.
  730-8        (e)  If the alternative procedure of public agency payment to
  730-9  a county for disposal services provided by this section is not
 730-10  followed, the county or a holder of county bonds is not entitled to
 730-11  demand payment of the public agency's obligation from funds raised
 730-12  or to be raised by taxation.  (Sec. 364.033, Health and Safety
 730-13  Code.)
 730-14        Sec. 23.034.  Solid Waste Disposal Service.  (a)  A public
 730-15  agency or a county may:
 730-16              (1)  offer solid waste disposal service to persons in
 730-17  its territory;
 730-18              (2)  require the use of the service by those persons;
 730-19              (3)  charge fees for the service; and
 730-20              (4)  establish the service as a utility separate from
 730-21  other utilities in its territory.
 730-22        (b)  To aid enforcement of fee collection for the solid waste
 730-23  disposal service, a public agency or county may suspend service to
 730-24  a person who is delinquent in payment of solid waste disposal
 730-25  service fees until the delinquent claim is fully paid.  (Sec.
 730-26  364.034, Health and Safety Code.)
 730-27        Sec. 23.035.  Public Agency Duty to Adjust Rates Charged.
  731-1  (a)  A public agency shall establish, maintain, and adjust the
  731-2  rates charged by the public agency for solid waste disposal
  731-3  services if:
  731-4              (1)  the public agency executes a contract with a
  731-5  county under this chapter; and
  731-6              (2)  the payments under the contract are to be made
  731-7  either wholly or partly from the revenues of the public agency's
  731-8  solid waste disposal fund.
  731-9        (b)  The revenues of the public agency's solid waste disposal
 731-10  fund, and any taxes levied in support, must be sufficient to pay:
 731-11              (1)  the expense of operating and maintaining the solid
 731-12  waste disposal service or system; and
 731-13              (2)  the public agency's obligations to the county
 731-14  under the contract and in connection with bonds issued or that may
 731-15  be issued that are secured by revenues of the solid waste disposal
 731-16  service or system.
 731-17        (c)  A contract between a public agency and a county may
 731-18  require the use of consulting engineers and financial experts to
 731-19  advise the public agency whether and at what time rates are to be
 731-20  adjusted under this section.  (Sec. 364.035, Health and Safety
 731-21  Code.)
 731-22        Sec. 23.036.  Authority to Provide Disposal Services to More
 731-23  Than One Person.  A contract or group of contracts under this
 731-24  chapter may provide that:
 731-25              (1)  a county may render concurrently to more than one
 731-26  person services relating to the construction or operation of all or
 731-27  part of a solid waste disposal system; and
  732-1              (2)  the cost of the services will be allocated among
  732-2  the several persons as determined by the contract or group of
  732-3  contracts.  (Sec. 364.036, Health and Safety Code.)
  732-4            (Sections 23.037-23.050 reserved for expansion)
  732-5                         SUBCHAPTER D.  BONDS
  732-6        Sec. 23.051.  Authority to Issue Bonds.  (a)  To acquire,
  732-7  construct, improve, enlarge, and repair all or part of a solid
  732-8  waste disposal system, a county may issue bonds payable:
  732-9              (1)  from and secured by a pledge of all or part of the
 732-10  revenues to accrue under a contract entered into under this
 732-11  chapter; and
 732-12              (2)  from other income pledged by the county.
 732-13        (b)  Pending issuance of definitive bonds, a county may issue
 732-14  negotiable interim bonds or obligations eligible for exchange or
 732-15  substitution by use of the definitive bonds.  (Sec. 364.051, Health
 732-16  and Safety Code.)
 732-17        Sec. 23.052.  Terms; Form.  (a)  Bonds issued under this
 732-18  chapter must be in the form and denomination and bear the rate of
 732-19  interest prescribed by the commissioners court.
 732-20        (b)  The bonds may be:
 732-21              (1)  sold at a public or private sale at a price and on
 732-22  the terms determined by the commissioners court; or
 732-23              (2)  exchanged for property or an interest in property
 732-24  determined by the commissioners court to be necessary or convenient
 732-25  to the purposes authorized by this chapter.
 732-26        (c)  The bonds are investment securities under Chapter 8,
 732-27  Business & Commerce Code.  (Sec. 364.052, Health and Safety Code.)
  733-1        Sec. 23.053.  Approval and Registration.  (a)  A county may
  733-2  submit bonds that have been authorized by the commissioners court
  733-3  and any record relating to their issuance to the attorney general
  733-4  for examination as to their validity.  If the bonds state that they
  733-5  are secured by a pledge of proceeds of a contract between the
  733-6  county and a public agency, the county may submit to the attorney
  733-7  general a copy of the contract and the proceedings of the public
  733-8  agency authorizing the contract.
  733-9        (b)  If the attorney general finds that the bonds have been
 733-10  authorized and any contract has been made in accordance with state
 733-11  law, the attorney general shall approve the bonds and contract and
 733-12  the comptroller shall register the bonds.
 733-13        (c)  Following approval and registration, the bonds and the
 733-14  contract are incontestable.  (Sec. 364.053, Health and Safety
 733-15  Code.)
 733-16        Sec. 23.054.  District Bond Validation by Suit.  (a)  As an
 733-17  alternative for, or in addition to, the procedure provided by
 733-18  Section 23.053, the board of directors of a district may validate
 733-19  its bonds by filing suit in a district court in the manner and with
 733-20  the effect provided by Chapter 400, Acts of the 66th Legislature,
 733-21  1979 (Article 717m-1, Vernon's Texas Civil Statutes).
 733-22        (b)  The interest rate and sale price of the bonds need not
 733-23  be fixed until after the termination of the validation proceedings
 733-24  or suit.
 733-25        (c)  If the proposed bonds recite that they are secured by
 733-26  the proceeds of a contract made by the district and one or more
 733-27  public agencies, the petition must allege that fact and the notice
  734-1  of the suit must mention that allegation and each public agency's
  734-2  fund or revenues from which the contract is payable.
  734-3        (d)  The suit is a proceeding in rem, and the judgment is res
  734-4  judicata as to the validity of the bonds and any contract and the
  734-5  pledge of revenues.  (Sec. 364.054, Health and Safety Code.)
  734-6        Sec. 23.055.  Investment and Use of Proceeds.  (a)  The
  734-7  commissioners court may set aside from proceeds of a bond sale:
  734-8              (1)  interest to accrue on the bonds;
  734-9              (2)  administrative expenses to the estimated date when
 734-10  the solid waste disposal system will become revenue producing; and
 734-11              (3)  reserve funds created by the resolution
 734-12  authorizing the bonds.
 734-13        (b)  Proceeds from the sale of bonds may be invested, pending
 734-14  their use, in the securities or time deposits as specified by the
 734-15  resolution authorizing the issuance of the bonds or the trust
 734-16  indenture securing the bonds.
 734-17        (c)  The earnings on the investments may be applied as
 734-18  provided by the resolution or trust indenture.  (Sec. 364.055,
 734-19  Health and Safety Code.)
 734-20        Sec. 23.056.  Refunding of Bonds.  A county may refund bonds
 734-21  issued under this chapter on terms and conditions and bearing the
 734-22  rate of interest prescribed by the commissioners court.  (Sec.
 734-23  364.056, Health and Safety Code.)
 734-24        Sec. 23.057.  Legal Investments; Security for Deposits.
 734-25  (a)  Bonds issued under this chapter are legal and authorized
 734-26  investments for:
 734-27              (1)  a bank;
  735-1              (2)  a savings bank;
  735-2              (3)  a trust company;
  735-3              (4)  a savings and loan association;
  735-4              (5)  an insurance company;
  735-5              (6)  a fiduciary;
  735-6              (7)  a trustee; and
  735-7              (8)  a sinking fund of a municipality, school district,
  735-8  or any other political corporation or subdivision of the state.
  735-9        (b)  The bonds may secure the deposits of public funds of the
 735-10  state or of a political subdivision of the state.  The bonds are
 735-11  lawful and sufficient security for those deposits in an amount up
 735-12  to their face value, if accompanied by all appurtenant unmatured
 735-13  coupons.  (Sec. 364.057, Health and Safety Code.)
 735-14        Sec. 23.058.  Adjustment of Rates and Changes to Maintain
 735-15  Adequate Revenue.  If bonds are outstanding, the commissioners
 735-16  court shall establish, maintain, and collect rates and charges for
 735-17  services furnished or made available by the solid waste disposal
 735-18  system adequate to:
 735-19              (1)  pay maintenance and operation costs of and
 735-20  expenses allocable to the solid waste disposal system and the
 735-21  principal of and interest on the bonds; and
 735-22              (2)  provide and maintain funds created by the
 735-23  resolution authorizing the bonds.  (Sec. 364.058, Health and Safety
 735-24  Code.)
 735-25            (Sections 23.059-23.100 reserved for expansion)
 735-26        SUBCHAPTER E.  TRANSPORTERS OF GREASE TRAP, SAND TRAP,
 735-27                           AND SEPTIC WASTE
  736-1        Sec. 23.101.  Regulatory Program.  The commissioners court of
  736-2  a county may establish a program regulating transporters of grease
  736-3  trap, sand trap, and septic waste.  (Sec. 368.001, Health and
  736-4  Safety Code.)
  736-5        Sec. 23.102.  Participation by Municipality in Regulatory
  736-6  Program.  The commissioners court may enter into a contract with a
  736-7  municipality that provides the terms and conditions under which the
  736-8  municipality may participate in the regulatory program.  (Sec.
  736-9  368.002, Health and Safety Code.)
 736-10        Sec. 23.103.  Permits.  The commissioners court of a county
 736-11  may:
 736-12              (1)  require a permit for trucks that transport grease
 736-13  trap, sand trap, and septic waste, including trucks serving
 736-14  unincorporated areas of the county;
 736-15              (2)  by order establish guidelines and procedures for
 736-16  issuing permits to trucks that transport grease trap, sand trap,
 736-17  and septic waste; and
 736-18              (3)  issue a single permit number that allows a
 736-19  municipality participating in the county regulatory program the
 736-20  option to add to that permit number a suffix unique to the
 736-21  municipality.  (Sec. 368.003, Health and Safety Code.)
 736-22        Sec. 23.104.  Inspections.  The commissioners court of a
 736-23  county may:
 736-24              (1)  coordinate with municipalities the inspection of
 736-25  trucks that transport grease trap, sand trap, and septic waste;
 736-26              (2)  by order establish guidelines and procedures to
 736-27  coordinate truck inspections; and
  737-1              (3)  assess an inspection fee sufficient to cover the
  737-2  cost to the county of providing the inspection service.  (Sec.
  737-3  368.004, Health and Safety Code.)
  737-4        Sec. 23.105.  Contracts.  The commissioners court of a county
  737-5  may contract with a person to provide a service that is part of the
  737-6  regulatory program.  (Sec. 368.005, Health and Safety Code.)
  737-7        Sec. 23.106.  Forms.  The commissioners court of a county may
  737-8  develop a single manifest form with a uniform manifest registration
  737-9  and numbering system to be used by the county and each
 737-10  participating municipality.  (Sec. 368.006, Health and Safety
 737-11  Code.)
 737-12            (Sections 23.107-23.120 reserved for expansion)
 737-13              SUBCHAPTER F.  REGULATION AND LICENSING OF
 737-14                             WASTE HAULERS
 737-15        Sec. 23.121.  Definitions.  In this subchapter:
 737-16              (1)  "Waste" means:
 737-17                    (A)  animal and vegetable waste materials
 737-18  resulting from the handling, preparation, cooking, or consumption
 737-19  of food;
 737-20                    (B)  discarded paper, rags, cardboard, wood,
 737-21  rubber, plastics, yard trimmings, fallen leaves, brush materials,
 737-22  and similar combustible items; and
 737-23                    (C)  discarded glass, crockery, tin or aluminum
 737-24  cans, metal items, and similar items that are noncombustible at
 737-25  ordinary incinerator temperatures.
 737-26              (2)  "Waste hauler" means a person who, for
 737-27  compensation, transports waste by the use of a motor vehicle.
  738-1  (Sec. 368.011, Health and Safety Code.)
  738-2        Sec. 23.122.  County Licensing and Regulation.  To protect
  738-3  the public health, safety, or welfare, the commissioners court of a
  738-4  county with a population of less than 100,000 may by ordinance:
  738-5              (1)  require a waste hauler who transports waste in
  738-6  unincorporated areas of the county to be licensed by the county;
  738-7              (2)  establish requirements for obtaining and renewing
  738-8  a waste hauler license;
  738-9              (3)  impose a license issuance or renewal fee in an
 738-10  amount that generates annually the approximate amount of revenue
 738-11  needed to fund the licensing program for a year;
 738-12              (4)  establish standards governing the transportation
 738-13  of waste in unincorporated areas of the county;
 738-14              (5)  establish grounds for suspending or revoking a
 738-15  waste hauler license; and
 738-16              (6)  prescribe any other provisions necessary to
 738-17  administer the licensing program.  (Sec. 368.012, Health and Safety
 738-18  Code.)
 738-19        Sec. 23.123.  Exemptions for Certain Waste Haulers.
 738-20  (a)  This subchapter does not apply to an entity that transports:
 738-21              (1)  material as part of a recycling program; or
 738-22              (2)  salt water, drilling fluids, or other waste
 738-23  associated with the exploration, development, and production of
 738-24  oil, gas, or geothermal resources.
 738-25        (b)  Except as provided by Subsection (c), a county may not
 738-26  require a waste hauler license to be held by a waste hauler:
 738-27              (1)  while transporting waste on behalf of a
  739-1  municipality or other governmental entity; or
  739-2              (2)  operating regularly in more than three counties.
  739-3        (c)  A county may require a waste hauler who transports waste
  739-4  on behalf of a municipality or other governmental entity to have a
  739-5  waste hauler license if the hauler deposits any part of that waste
  739-6  in a county other than the county in which all or part of the
  739-7  municipality or other governmental entity is located.  (Sec.
  739-8  368.013, Health and Safety Code.)
  739-9        Sec. 23.124.  Bond or Other Financial Assurance.  (a)  An
 739-10  applicant for a waste hauler license must execute a surety bond or
 739-11  provide other financial assurance that is payable for the use and
 739-12  benefit of the county or any other person harmed by the waste
 739-13  hauler's actions.
 739-14        (b)  The bond or other financial assurance must be in an
 739-15  amount the commissioners court considers necessary or desirable
 739-16  according to the risk of harm associated with the operation of the
 739-17  waste hauling business.
 739-18        (c)  A bond executed under this section must comply with the
 739-19  insurance laws of this state.  (Sec. 368.014, Health and Safety
 739-20  Code.)
 739-21        Sec. 23.125.  Fees.  Fees or other money received by a county
 739-22  under the licensing program shall be deposited to the credit of the
 739-23  general fund of the county.  (Sec. 368.015, Health and Safety
 739-24  Code.)
 739-25        Sec. 23.126.  Conflict With Other Regulations.  If a
 739-26  requirement or standard established under Section 23.122 conflicts
 739-27  with state law, a rule adopted under state law, or a municipal
  740-1  ordinance or charter, the stricter provision prevails.  (Sec.
  740-2  368.016, Health and Safety Code.)
  740-3        Sec. 23.127.  Injunction.  A county is entitled to
  740-4  appropriate injunctive relief to prevent the violation or
  740-5  threatened violation of an ordinance the county adopts under this
  740-6  subchapter.  (Sec. 368.017, Health and Safety Code.)
  740-7        Sec. 23.128.  Criminal Penalty.  (a)  If a county ordinance
  740-8  adopted under this subchapter defines an offense for a violation of
  740-9  the ordinance, the offense is a Class C misdemeanor.
 740-10        (b)  A separate offense occurs on each day on which all the
 740-11  elements of the offense exist.  (Sec. 368.018, Health and Safety
 740-12  Code.)
 740-13                  CHAPTER 24.  SOLID WASTE DISTRICTS
 740-14   Subchapter A.  Gaines County Solid Waste Management District Act
 740-15        Sec. 24.001.  Purpose.  The purpose of this subchapter is to
 740-16  establish an instrumentality to develop and carry out for Gaines
 740-17  County a regional water quality protection program through solid
 740-18  waste management and regulation of waste disposal in accordance
 740-19  with state law.  (V.A.C.S. Art. 4477-7j, Sec. 1.01.)
 740-20        Sec. 24.002.  Findings and declaration of policy.  (a)  The
 740-21  legislature finds that:
 740-22              (1)  the quality of water in Gaines County may be
 740-23  materially affected by the management of solid waste throughout the
 740-24  county;
 740-25              (2)  a countywide or regional effort to provide for the
 740-26  management of solid waste in accordance with state and federal law
 740-27  is far more effective than each incorporated or unincorporated
  741-1  community providing solid waste management services;
  741-2              (3)  solid waste, as well as other waste, may impair
  741-3  water quality by seepage or drainage; and
  741-4              (4)  creation of the Gaines County Solid Waste
  741-5  Management District would advance the established policy of this
  741-6  state to maintain the quality of the water in the state consistent
  741-7  with:
  741-8                    (A)  the public health and public enjoyment;
  741-9                    (B)  the propagation and protection of
 741-10  terrestrial and aquatic life;
 741-11                    (C)  the operation of existing industries; and
 741-12                    (D)  the economic development of the state.
 741-13        (b)  The legislature finds that this subchapter is in
 741-14  compliance with Article XVI, Sections 59(d) and (e), of the Texas
 741-15  Constitution and that the legislature has the power and authority
 741-16  to enact this subchapter.
 741-17        (c)  The legislature finds that all of the area included in
 741-18  the district is benefited by the exercise of the power conferred by
 741-19  this subchapter.  (V.A.C.S. Art. 4477-7j, Sec. 1.02.)
 741-20        Sec. 24.003.  Definitions.  In this subchapter:
 741-21              (1)  "Board" means the board of directors of the
 741-22  district.
 741-23              (2)  "County" means Gaines County, Texas.
 741-24              (3)  "Director" means a member of the board.
 741-25              (4)  "District" means the Gaines County Solid Waste
 741-26  Management District created under this subchapter.
 741-27              (5)  "Industrial solid waste" has the meaning assigned
  742-1  by Section 20.003, Health and Safety Code.
  742-2              (6)  "Local government" means an incorporated
  742-3  municipality, a county, or a water or other special district or
  742-4  authority acting under Article III, Sections 52(b)(1) and (2), or
  742-5  Article XVI, Section 59, of the Texas Constitution.
  742-6              (7)  "Municipal solid waste" has the meaning assigned
  742-7  by Section 20.003, Health and Safety Code.
  742-8              (8)  "Outside the district" means the area contained in
  742-9  counties adjacent to the district.
 742-10              (9)  "Person" means an individual, public or private
 742-11  corporation, political subdivision, governmental agency,
 742-12  municipality, copartnership, association, firm, trust, estate, or
 742-13  any other legal entity.
 742-14              (10)  "Resource recovery facility" means a facility
 742-15  used to store, handle, sort, bail, recycle, process, and recover
 742-16  solid waste.
 742-17              (11)  "Sewage" has the meaning assigned by Section
 742-18  15.002, Health and Safety Code.
 742-19              (12)  "Solid waste" has the meaning assigned by Section
 742-20  20.003, Health and Safety Code.
 742-21              (13)  "Solid waste management system" means a system
 742-22  for controlling all aspects of the collection, handling,
 742-23  transportation, processing, recovery, and disposal of solid waste.
 742-24              (14)  "Water" means groundwater, percolating or
 742-25  otherwise, lakes, bays, ponds, springs, rivers, streams, creeks,
 742-26  and all other bodies of surface water, natural or artificial, that
 742-27  are wholly or partially within the district.
  743-1              (15)  "Water pollution" means the alteration of the
  743-2  physical, chemical, or biological quality of or the contamination
  743-3  of water that renders the water harmful, detrimental, or injurious
  743-4  to humans, animal life, vegetation, or property, or to public
  743-5  health, safety, or welfare, or that impairs the usefulness or the
  743-6  public enjoyment of the water for any lawful or reasonable purpose.
  743-7  (V.A.C.S. Art. 4477-7j, Sec. 1.03.)
  743-8        Sec. 24.004.  Creation of district.  Pursuant to Article XVI,
  743-9  Section 59, of the Texas Constitution, a conservation and
 743-10  reclamation district to be known as the Gaines County Solid Waste
 743-11  Management District is created as a governmental agency and body
 743-12  politic and corporate of the state.  (V.A.C.S. Art. 4477-7j, Sec.
 743-13  2.01.)
 743-14        Sec. 24.005.  Description.  The district's territory consists
 743-15  of the area within the boundaries of Gaines County.  (V.A.C.S. Art.
 743-16  4477-7j, Sec. 2.02.)
 743-17        Sec. 24.006.  Appointment of initial directors.  (a)  On or
 743-18  after the effective date of this subchapter, the Commissioners
 743-19  Court of Gaines County shall appoint three persons, the governing
 743-20  body of the city of Seminole shall appoint two persons, and the
 743-21  governing body of the city of Seagraves shall appoint two persons
 743-22  to serve as initial directors of the district.  The four persons
 743-23  appointed by the governing bodies of the cities of Seminole and
 743-24  Seagraves shall represent the municipalities within the county, and
 743-25  the three persons appointed by the Commissioners Court of Gaines
 743-26  County shall represent the unincorporated areas of the county.  In
 743-27  addition, the board of regents of The University of Texas System
  744-1  shall appoint one person to serve as an ex-officio, nonvoting
  744-2  director of the district.
  744-3        (b)  A vacancy on the initial board shall be filled in the
  744-4  same manner as the original appointment for the unexpired term.
  744-5        (c)  The Commissioners Court of Gaines County and the
  744-6  governing bodies of the cities of Seminole and Seagraves shall each
  744-7  appoint one initial director to serve a term expiring on May 1 of
  744-8  the first year after the year in which the original appointment is
  744-9  made.  In addition, the Commissioners Court of Gaines County shall
 744-10  appoint two initial directors and the governing bodies of the
 744-11  cities of Seminole and Seagraves shall each appoint one initial
 744-12  director to serve terms expiring on May 1 of the second year after
 744-13  the year in which the original appointment is made.  The initial
 744-14  ex-officio member serves a term expiring on May 1 of the second
 744-15  year after the year in which the original appointment is made.
 744-16  Successor directors serve two-year terms.  (V.A.C.S. Art. 4477-7j,
 744-17  Sec. 2.03.)
 744-18        Sec. 24.007.  Confirmation and tax election.  The directors
 744-19  shall call and hold an election within the boundaries of the
 744-20  proposed district to determine if the proposed district will be
 744-21  created and a tax authorized.  (V.A.C.S. Art. 4477-7j, Sec. 2.04.)
 744-22        Sec. 24.008.  Notice of election.  (a)  Notice of the
 744-23  confirmation and tax election shall state the day and places for
 744-24  holding the election, the proposition to be voted on, and list the
 744-25  appointed directors.
 744-26        (b)  The board shall publish the notice of the election one
 744-27  time in one or more newspapers of general circulation in the
  745-1  proposed district.  The notice must be published before the 35th
  745-2  day before the date set for the election.  (V.A.C.S. Art. 4477-7j,
  745-3  Sec. 2.05.)
  745-4        Sec. 24.009.  Ballot proposition.  The ballot shall be
  745-5  printed to permit voting for or against the proposition:  "The
  745-6  creation of the Gaines County Solid Waste Management District and
  745-7  the levy of a maintenance and operating tax in an amount not to
  745-8  exceed five cents on each $100 valuation."  The ballot shall
  745-9  include the names of the persons appointed as directors for the
 745-10  district.  (V.A.C.S. Art. 4477-7j, Sec. 2.06.)
 745-11        Sec. 24.010.  Canvassing returns.  (a)  Immediately after the
 745-12  confirmation and tax election, the presiding judge of each polling
 745-13  place shall deliver returns of the election to the board, and the
 745-14  board shall canvass the returns and declare the result.
 745-15        (b)  If a majority of the votes cast at the election favor
 745-16  creation of the district, the board shall declare the district
 745-17  created and shall enter the results in its minutes.  If a majority
 745-18  of the votes cast at the election are against the creation of the
 745-19  district, the board shall declare that the creation of the district
 745-20  was defeated and shall enter the results in its minutes.  The board
 745-21  shall file a copy of the election results with the commission.
 745-22        (c)  If a majority of the voters at the election vote against
 745-23  the creation of the district, the board may call and hold
 745-24  additional confirmation and tax elections, but another election to
 745-25  confirm creation of the district may not be called and held by the
 745-26  board before the first anniversary of the most recent confirmation
 745-27  and tax election.  If the creation of the district is not confirmed
  746-1  on or before the fifth anniversary of the effective date of this
  746-2  subchapter, this subchapter expires.  (V.A.C.S. Art. 4477-7j, Sec.
  746-3  2.07.)
  746-4        Sec. 24.011.  Bond proposition at creation election.  At an
  746-5  election to confirm creation of the district and authorize the levy
  746-6  of taxes, the board may include a separate proposition on the
  746-7  ballot to approve the issuance by the district of bonds payable
  746-8  wholly or partially from property taxes.  The notice of the
  746-9  election under Section 24.008 must state the bond proposition that
 746-10  is to appear on the ballot.  The ballot shall be printed to permit
 746-11  voting for or against the proposition:  "The issuance of bonds in
 746-12  the amount of $__________ payable wholly (or partially) from
 746-13  property taxes for (STATE PURPOSE FOR WHICH BOND PROCEEDS TO BE
 746-14  USED) and the levy of taxes in payment of those bonds."  If a
 746-15  majority of the voters at the election approve the bond
 746-16  proposition, the board shall declare the result and enter it in its
 746-17  minutes, and the district, if its creation is confirmed, may issue
 746-18  the bonds in the amount authorized for the purpose authorized and
 746-19  may levy and collect taxes necessary to pay the principal of and
 746-20  interest on the bonds.  If a majority of the voters at the election
 746-21  do not approve the bond proposition, the temporary board shall
 746-22  declare the result and enter it in its minutes, and the district,
 746-23  if its creation is confirmed, may not issue the bonds payable in
 746-24  whole or in part by property taxes.  The board shall file a copy of
 746-25  the bond election results with the commission.  (V.A.C.S. Art.
 746-26  4477-7j, Sec. 2.08.)
 746-27        Sec. 24.012.  Board of directors.  (a)  The district is
  747-1  governed by a board of directors composed of seven voting members
  747-2  and one ex-officio nonvoting member who are appointed as provided
  747-3  by this subchapter.  However, the district shall change to a system
  747-4  of electing the voting directors if:
  747-5              (1)  the Commissioners Court of Gaines County and the
  747-6  governing bodies of the cities of Seminole and Seagraves each pass
  747-7  a resolution calling for the election of the directors; or
  747-8              (2)  the board receives a petition signed by at least
  747-9  150 registered voters of Gaines County calling for the election of
 747-10  the directors.
 747-11        (b)  If the resolution is passed or the petition presented to
 747-12  the board as provided by Subsection (a) of this section, a
 747-13  directors' election shall be held on the first Saturday in May that
 747-14  occurs after the resolution is passed or the petition presented.
 747-15  The board by order may postpone the election date for one year if:
 747-16              (1)  the election will occur within 60 days after the
 747-17  date the resolution is passed or the petition is presented; or
 747-18              (2)  the board determines that there is not sufficient
 747-19  time to comply with the requirements of law and to order the
 747-20  election.
 747-21        (c)  The change to a system of electing the voting directors
 747-22  does not apply to or affect the ex-officio nonvoting director
 747-23  appointed by the board of regents of The University of Texas
 747-24  System.  (V.A.C.S. Art. 4477-7j, Sec. 3.01.)
 747-25        Sec. 24.013.  Method of election.  (a)  If directors are
 747-26  elected, one director shall be elected from each commissioner
 747-27  precinct and three directors shall be elected from the district at
  748-1  large.
  748-2        (b)  At the initial election of directors, the candidate
  748-3  receiving the highest number of votes from a commissioner precinct
  748-4  is the director for that precinct, and the three candidates
  748-5  receiving the highest number of votes from the district at large
  748-6  are the directors for the district at large.  If two or more
  748-7  persons tie for the third-highest vote, the Commissioners Court of
  748-8  Gaines County shall select the third member from those trying for
  748-9  the place.
 748-10        (c)  The candidates elected from the odd-numbered precincts
 748-11  and the two candidates elected from the district at large who
 748-12  receive the highest number of votes at the initial election serve
 748-13  for a term of two years.  The candidates elected from the
 748-14  even-numbered precincts and the candidate elected from the district
 748-15  at large who receives the third-highest number of votes at that
 748-16  election serve for a term of one year.
 748-17        (d)  After the initial election of directors, an election
 748-18  shall be held on the first Saturday in May each year and the
 748-19  appropriate number of successor directors shall be elected for
 748-20  two-year terms.  (V.A.C.S. Art. 4477-7j, Sec. 3.02.)
 748-21        Sec. 24.014.  Qualifications for office.  (a)  To be eligible
 748-22  to be appointed as, to be a candidate for, or to serve as a voting
 748-23  director, a person must be:
 748-24              (1)  a resident of the district; and
 748-25              (2)  a qualified voter.
 748-26        (b)  In addition to the qualifications required by Subsection
 748-27  (a) of this section, a person who is elected from a commissioner
  749-1  precinct or who is appointed to fill a vacancy for a commissioner
  749-2  precinct must be a resident of that commissioner precinct.
  749-3        (c)  Each voting director must execute a bond in the amount
  749-4  of $5,000 with a corporate surety authorized to do business in this
  749-5  state and conditioned on the faithful performance of the director's
  749-6  duties.  (V.A.C.S. Art. 4477-7j, Sec. 3.03.)
  749-7        Sec. 24.015.  Application for election.  (a)  A person who
  749-8  wishes to have the person's name printed on the ballot at a
  749-9  directors' election as a candidate for director shall file an
 749-10  application with the secretary of the district.
 749-11        (b)  The application must specify the commissioner precinct
 749-12  the candidate wishes to represent or specify that the candidate
 749-13  wishes to represent the district at large.  (V.A.C.S. Art. 4477-7j,
 749-14  Sec. 3.04.)
 749-15        Sec. 24.016.  Beginning of director's term.  A director shall
 749-16  take office at the first regular meeting of the board in May
 749-17  following the director's appointment or election and qualification.
 749-18  (V.A.C.S. Art. 4477-7j, Sec. 3.05.)
 749-19        Sec. 24.017.  Vacancy on board.  (a)  If the directors are
 749-20  appointed, a vacancy on the board shall be filled in the same
 749-21  manner as the original appointment for the unexpired term.
 749-22        (b)  If the directors are elected, the vacancy of an elected
 749-23  director's position on the board shall be filled by appointment of
 749-24  the remaining members of the board until the next election of
 749-25  directors for the district.  If that position is not scheduled to
 749-26  be filled at that election, the person elected to fill the position
 749-27  serves only for the remainder of the unexpired term.  (V.A.C.S.
  750-1  Art. 4477-7j, Sec. 3.06.)
  750-2        Sec. 24.018.  Oath.  Each director shall file the statement
  750-3  and take the constitutional oath of office required of state
  750-4  officers.  (V.A.C.S. Art. 4477-7j, Sec. 3.07.)
  750-5        Sec. 24.019.  Organization of board.  (a)  After each annual
  750-6  appointment or election of directors, the board shall hold a
  750-7  regular meeting in May at the district office and shall organize by
  750-8  electing from the members of the board one person to serve as
  750-9  chairman, one person to serve as vice-chairman, and one person to
 750-10  serve as secretary.
 750-11        (b)  A person selected to serve as chairman, vice-chairman,
 750-12  or secretary serves in that capacity for a term of one year.
 750-13        (c)  The chairman shall preside over meetings of the board,
 750-14  and in the chairman's absence the vice-chairman shall preside.
 750-15        (d)  The chairman, vice-chairman, and secretary shall perform
 750-16  the duties and may exercise the powers specifically given them by
 750-17  this subchapter or by orders of the board.  (V.A.C.S. Art. 4477-7j,
 750-18  Sec. 3.08.)
 750-19        Sec. 24.020.  Meeting and actions of the board.  (a)  The
 750-20  board shall meet at least one time each month and may meet at any
 750-21  other time.
 750-22        (b)  A majority of the voting members of the board constitute
 750-23  a quorum for the transaction of business of the district.
 750-24        (c)  Except as otherwise provided by this subchapter, the
 750-25  vote of a majority of the voting directors is required for board
 750-26  action.
 750-27        (d)  The board shall adopt bylaws at its first meeting or as
  751-1  soon after the first meeting as practicable.  The board's bylaws
  751-2  must prescribe the powers, duties, and procedures for removal from
  751-3  a board office.  (V.A.C.S. Art. 4477-7j, Sec. 3.09.)
  751-4        Sec. 24.021.  Other officers.  (a)  The board may appoint a
  751-5  treasurer and an attorney for the district.
  751-6        (b)  The persons appointed under this section are entitled to
  751-7  the compensation provided by the district's budget.
  751-8        (c)  The person appointed as treasurer shall execute a bond
  751-9  in the amount determined by the board, payable to the district,
 751-10  conditioned on the faithful performance of the treasurer's duties.
 751-11  The district shall pay for the bond.  (V.A.C.S. Art. 4477-7j, Sec.
 751-12  3.10.)
 751-13        Sec. 24.022.  Interest in contract.  A director who is
 751-14  financially interested in a contract to be executed by the district
 751-15  for the purchase of property or the construction of facilities
 751-16  shall disclose that fact to the other directors and may not vote on
 751-17  the acceptance of the contract.  (V.A.C.S. Art. 4477-7j, Sec.
 751-18  3.11.)
 751-19        Sec. 24.023.  Director's compensation.  (a)  A director is
 751-20  entitled to receive $25 a day and reimbursement for actual and
 751-21  necessary expenses incurred:
 751-22              (1)  for each day the director attends meetings of the
 751-23  board; and
 751-24              (2)  for each day the director attends to the business
 751-25  of the district that is authorized by board resolution or motion.
 751-26        (b)  A director is not entitled to receive a per diem
 751-27  allowance for more than 30 days in any one calendar year.
  752-1  (V.A.C.S. Art. 4477-7j, Sec. 3.12.)
  752-2        Sec. 24.024.  General manager; personnel.  (a)  The board may
  752-3  employ a general manager for a term and salary set by the board.
  752-4        (b)  The general manager is the chief executive officer of
  752-5  the district.  Under policies established by the board, the general
  752-6  manager is responsible to the board for:
  752-7              (1)  administering the directives of the board;
  752-8              (2)  keeping the district's records, including minutes
  752-9  of the board's meetings;
 752-10              (3)  coordinating with state, federal, and local
 752-11  agencies;
 752-12              (4)  developing plans and programs for the board's
 752-13  approval;
 752-14              (5)  hiring, supervising, training, and discharging
 752-15  district employees;
 752-16              (6)  contracting for or retaining technical,
 752-17  scientific, legal, fiscal, and other professional services; and
 752-18              (7)  performing any other duty assigned to the general
 752-19  manager by the board.
 752-20        (c)  The board may discharge the general manager on a
 752-21  majority vote of all of the voting directors.  (V.A.C.S. Art.
 752-22  4477-7j, Sec. 3.13.)
 752-23        Sec. 24.025.  Director's and employee's bonds.  (a)  The
 752-24  general manager and each employee of the district charged with the
 752-25  collection, custody, or payment of any money of the district shall
 752-26  execute a fidelity bond.  The board shall approve the form, amount,
 752-27  and surety of the bond.
  753-1        (b)  The district shall pay the premiums on the employees'
  753-2  bonds under this section.  (V.A.C.S. Art. 4477-7j, Sec. 3.14.)
  753-3        Sec. 24.026.  Principal office.  The district shall maintain
  753-4  its principal office inside the district's boundaries.  (V.A.C.S.
  753-5  Art. 4477-7j, Sec. 3.15.)
  753-6        Sec. 24.027.  Records.  (a)  The district shall keep complete
  753-7  and accurate accounts of its business transactions in accordance
  753-8  with generally accepted methods of accounting.
  753-9        (b)  The district shall keep complete and accurate minutes of
 753-10  its meetings.
 753-11        (c)  The district shall maintain its accounts, contracts,
 753-12  documents, minutes, and other records at its principal office.
 753-13        (d)  Neither the board nor its employees may disclose a
 753-14  district record that relates to trade secrets or the economics of
 753-15  an industry's operations.  (V.A.C.S. Art. 4477-7j, Sec. 3.16.)
 753-16        Sec. 24.028.  Contracts.  The board may enter into contracts
 753-17  for administration or services as provided by this subchapter, and
 753-18  those contracts shall be executed by the board in the name of the
 753-19  district.  (V.A.C.S. Art. 4477-7j, Sec. 3.17.)
 753-20        Sec. 24.029.  Supervision of district.  The district is
 753-21  subject to the continuing right of supervision by the state, in
 753-22  accordance with state law.  (V.A.C.S. Art. 4477-7j, Sec. 3.18.)
 753-23        Sec. 24.030.  Suits; payment of judgments.  (a)  The district
 753-24  may, through its board, sue and be sued in any court of this state
 753-25  in the name of the district.  Service of process in a suit may be
 753-26  had by serving the general manager or other officers appointed by
 753-27  the board.
  754-1        (b)  The courts of this state shall take judicial notice of
  754-2  the creation of the district.
  754-3        (c)  A court of this state that renders a money judgment
  754-4  against the district may require the board to pay the judgment from
  754-5  money in the district depository that is not dedicated to the
  754-6  payment of any indebtedness of the district.  (V.A.C.S. Art.
  754-7  4477-7j, Sec. 3.19.)
  754-8        Sec. 24.031.  Seal.  The board shall adopt a seal for the
  754-9  district and may alter the form of the seal from time to time.
 754-10  (V.A.C.S. Art. 4477-7j, Sec. 3.20.)
 754-11        Sec. 24.032.  General powers and duties.  (a)  The district
 754-12  shall administer and enforce this subchapter and shall use its
 754-13  facilities and powers to accomplish the purposes of this
 754-14  subchapter.
 754-15        (b)  After notice and hearing, the board may adopt rules
 754-16  necessary to carry out this subchapter.  The board shall adopt
 754-17  rules providing procedures for giving notice and holding hearings.
 754-18        (c)  The district shall prepare and adopt plans for and shall
 754-19  purchase, obtain permits for, construct, acquire, own, operate,
 754-20  maintain, repair, improve, and extend inside and outside the
 754-21  boundaries of the district any works, improvements, landfills,
 754-22  recycling facilities, waste-to-energy facilities, composting
 754-23  facilities, transfer stations, storage sites, and other facilities,
 754-24  plants, pipelines, equipment, and appliances necessary to
 754-25  transport, process, dispose of, and control solid waste and to
 754-26  protect groundwater within the district in accordance with state
 754-27  law.
  755-1        (d)  The district shall acquire all permits required by state
  755-2  law that are necessary to carry out this article.
  755-3        (e)  The district may conduct studies and research for the
  755-4  disposal of solid waste and the protection of water within the
  755-5  district.
  755-6        (f)  The regulatory powers of the district under this
  755-7  subchapter extend to every person within the district.
  755-8        (g)  Except as expressly limited by this subchapter, the
  755-9  district has all powers, rights, and privileges necessary and
 755-10  convenient for accomplishing the purposes of this subchapter
 755-11  conferred by general law on a conservation and reclamation district
 755-12  created under Article XVI, Section 59, of the Texas Constitution.
 755-13        (h)  Subject only to the authority vested in other entities
 755-14  by general law, including those vested in the commission by Chapter
 755-15  10 and those vested in the commission by Chapter 20, the district
 755-16  may control water pollution within the district.
 755-17        (i)  The powers granted to the district by this subchapter
 755-18  are cumulative of all powers granted by other laws that are by
 755-19  their terms applicable to the district.
 755-20        (j)  The district may not provide solid waste collection
 755-21  services without an interlocal agreement approved by the county,
 755-22  the city of Seminole, and the city of Seagraves.  However, the
 755-23  district shall purchase equipment, facilities, containers, and
 755-24  other necessary items for collection services if the district
 755-25  adopts a recycling program.
 755-26        (k)  The district may not contract with a person outside the
 755-27  boundaries of the district to provide to that person solid waste
  756-1  management services or any other service authorized under this
  756-2  subchapter.  (V.A.C.S. Art. 4477-7j, Sec. 4.01.)
  756-3        Sec. 24.033.  Gifts, grants, loans, and other funds.  To
  756-4  carry out any purposes or powers under this subchapter, the
  756-5  district may apply for, accept, receive, and administer gifts,
  756-6  grants, loans, and other funds available from any source.
  756-7  (V.A.C.S. Art. 4477-7j, Sec. 4.02.)
  756-8        Sec. 24.034.  Consultation, contracts, and cooperation with
  756-9  other governmental agencies and entities.  To carry out any
 756-10  purposes or powers under this subchapter, the district may advise,
 756-11  consult, contract, and cooperate with the federal government and
 756-12  its agencies, the state and its agencies, local governments, and
 756-13  private entities.  (V.A.C.S. Art. 4477-7j, Sec. 4.03.)
 756-14        Sec. 24.035.  Acquisition of property.  The district may
 756-15  acquire by gift, grant, devise, purchase, or lease any land,
 756-16  easements, rights-of-way, and other property interests inside the
 756-17  district necessary to carry out the powers and duties provided by
 756-18  this subchapter.  (V.A.C.S. Art. 4477-7j, Sec. 4.04.)
 756-19        Sec. 24.036.  Eminent domain.  (a)  The district may acquire
 756-20  land within the district for the purposes authorized by Section
 756-21  24.032(c) by condemnation if the board determines, after notice and
 756-22  hearing, that it is necessary.
 756-23        (b)  The district must exercise the power of eminent domain
 756-24  in the manner provided by Chapter 21, Property Code, but the
 756-25  district is not required to:
 756-26              (1)  deposit in the trial court money or a bond as
 756-27  provided by Section 21.021(a), Property Code;
  757-1              (2)  pay in advance or give bond or other security for
  757-2  costs in the trial court;
  757-3              (3)  give bond for the issuance of a temporary
  757-4  restraining order or a temporary injunction; or
  757-5              (4)  give bond for costs or supersedeas on an appeal or
  757-6  writ of error.
  757-7        (c)  If the district, in the exercise of the power of eminent
  757-8  domain, requires relocating, raising, lowering, rerouting, changing
  757-9  the grade, or altering the construction of any railroad, highway,
 757-10  pipeline, or electric transmission and electric distribution,
 757-11  telegraph or telephone lines, conduits, poles or facilities, the
 757-12  district must bear the actual cost of relocating, raising,
 757-13  lowering, rerouting, changing the grade, or altering the
 757-14  construction to provide comparable replacement without enhancement
 757-15  of facilities, after deducting the net salvage value derived from
 757-16  the old facility.  (V.A.C.S. Art. 4477-7j, Sec. 4.05.)
 757-17        Sec. 24.037.  Authority to enter into construction,
 757-18  renovation, and repair contracts.  The district may contract with
 757-19  any person to construct, renovate, or repair any of its works,
 757-20  improvements, or facilities, or other plants, pipelines, equipment,
 757-21  and appliances and, from time to time, make improvements to them.
 757-22  (V.A.C.S. Art. 4477-7j, Sec. 4.06.)
 757-23        Sec. 24.038.  Bids on contracts.  Contracts entered into
 757-24  under Section 24.037 requiring an expenditure of more than $10,000
 757-25  may be made only after competitive bidding as provided by
 757-26  Subchapter B, Chapter 271, Local Government Code.  (V.A.C.S. Art.
 757-27  4477-7j, Sec. 4.07.)
  758-1        Sec. 24.039.  Attachments to contracts.  A contract entered
  758-2  into under Section 24.037 must contain, or have attached to it, the
  758-3  specifications, plans, and details for work included in the
  758-4  contract, and work shall be done according to those plans and
  758-5  specifications under the supervision of the district.  (V.A.C.S.
  758-6  Art. 4477-7j, Sec. 4.08.)
  758-7        Sec. 24.040.  Execution and availability of contracts.
  758-8  (a)  A contract entered into under Section 24.037 must be in
  758-9  writing and signed by the contractor and a representative of the
 758-10  district designated by the board.
 758-11        (b)  The contract shall be kept in the district's office and
 758-12  must be available for public inspection.  (V.A.C.S. Art. 4477-7j,
 758-13  Sec. 4.09.)
 758-14        Sec. 24.041.  CONTRACTOR'S BOND.  (a)  A contractor shall
 758-15  execute a bond in an amount determined by the board, not to exceed
 758-16  the contract price, payable to the district and approved by the
 758-17  board, conditioned on the faithful performance of the obligations,
 758-18  agreements, and covenants of the contract.
 758-19        (b)  The bond must provide that if the contractor defaults on
 758-20  the contract, the contractor will pay to the district all damages
 758-21  sustained as a result of the default.  The bond shall be deposited
 758-22  in the district's depository, and a copy of the bond shall be kept
 758-23  in the district's office.  (V.A.C.S. Art. 4477-7j, Sec. 4.10.)
 758-24        Sec. 24.042.  Monitoring work.  (a)  The board has control of
 758-25  construction, renovation, or repairs being done for the district
 758-26  under a contract entered into under Section 24.037 and shall
 758-27  determine whether or not the contract is being fulfilled.
  759-1        (b)  The board shall have the construction, renovation, or
  759-2  repair work inspected by engineers, inspectors, and personnel of
  759-3  the district.
  759-4        (c)  During the progress of the work, the engineers,
  759-5  inspectors, and personnel doing the inspections shall submit to the
  759-6  board written reports that show whether or not the contractor is
  759-7  complying with the contract.
  759-8        (d)  On completion of construction, renovation, or repair
  759-9  work, the engineers, inspectors, and personnel shall submit to the
 759-10  board a final detailed written report including information
 759-11  necessary to show whether or not the contractor has fully complied
 759-12  with the contract.  (V.A.C.S. Art. 4477-7j, Sec. 4.11.)
 759-13        Sec. 24.043.  Payment for work.  (a)  The district shall pay
 759-14  the contract price of construction, renovation, or repair contracts
 759-15  in accordance with this section.
 759-16        (b)  The district shall make progress payments under
 759-17  contracts monthly as the work proceeds or at more frequent
 759-18  intervals as determined by the board.
 759-19        (c)  If requested by the board, the contractor shall furnish
 759-20  an analysis of the total contract price showing the amount included
 759-21  for each principal category of the work, in such detail as
 759-22  requested, to provide a basis for determining progress payments.
 759-23        (d)  In making progress payments, 10 percent of the estimated
 759-24  amount shall be retained until final completion and acceptance of
 759-25  the contract work.  However, if the board, at any time after 50
 759-26  percent of the work has been completed, finds that satisfactory
 759-27  progress is being made, it may authorize any of the remaining
  760-1  progress payments to be made in full.  Also, if the work is
  760-2  substantially complete, the board, if it finds the amount retained
  760-3  to be in excess of the amount adequate for the protection of the
  760-4  district, may release to the contractor all or a portion of the
  760-5  excess amount.
  760-6        (e)  On completion and acceptance of each separate project,
  760-7  work, or other division of the contract, on which the price is
  760-8  stated separately in the contract, payment may be made without
  760-9  retention of a percentage.
 760-10        (f)  When work is completed according to the terms of the
 760-11  contract, the board shall draw a warrant on the depository to pay
 760-12  any balance due on the contract.  (V.A.C.S. Art. 4477-7j, Sec.
 760-13  4.12.)
 760-14        Sec. 24.044.  Contracts for purchase of vehicles, equipment,
 760-15  and supplies over $10,000.  (a)  If the estimated amount of a
 760-16  proposed contract for the purchase of vehicles, equipment, or
 760-17  supplies is more than $10,000, the board shall ask for competitive
 760-18  bids as provided by Section 24.038.
 760-19        (b)  This section does not apply to purchases of property
 760-20  from public agencies or to contracts for personal or professional
 760-21  services.  (V.A.C.S. Art. 4477-7j, Sec. 4.13.)
 760-22        Sec. 24.045.  Entry on land.  (a)  The directors, the
 760-23  engineer, and the employees of the district may go on any land
 760-24  inside or outside the boundaries of the district to make surveys
 760-25  and examine the land with reference to the location of works,
 760-26  improvements, and waste disposal, treatment, and other facilities,
 760-27  plants, pipelines, equipment, and appliances and to attend to
  761-1  business of the district.
  761-2        (b)  Before a director, engineer, or employee enters on the
  761-3  land, the landowner must grant written permission or five days'
  761-4  written notice must be given to the landowner.
  761-5        (c)  If any activities of the district on the land cause
  761-6  damages to the land or property, the land or property shall be
  761-7  restored as nearly as possible to its original state.  The district
  761-8  shall pay the cost of the restoration.  (V.A.C.S. Art. 4477-7j,
  761-9  Sec. 4.14.)
 761-10        Sec. 24.046.  Right to use road right-of-way.  (a)  The
 761-11  district has a right-of-way along and across all public state or
 761-12  county roads or highways; provided that a governmental entity
 761-13  having jurisdiction of such right-of-way may designate the place
 761-14  upon the right-of-way the facilities of the district shall be
 761-15  installed and may require the relocation of the facilities of the
 761-16  district to accommodate any widening or changing of traffic lanes.
 761-17        (b)  The district may not proceed with any action to change,
 761-18  alter, or damage facilities or property of the state without having
 761-19  first obtained the written consent of the governmental entity
 761-20  having control and jurisdiction of such facilities or property.
 761-21  (V.A.C.S. Art. 4477-7j, Sec. 4.15.)
 761-22        Sec. 24.047.  Fees and charges.  (a)  The board may adopt and
 761-23  enforce all necessary charges, fees, or rentals, in addition to
 761-24  taxes, for providing any district facilities or services.
 761-25        (b)  The board may require a deposit for any services or
 761-26  facilities furnished and may or may not provide that the deposit
 761-27  will bear interest.  The interest, if any, may accrue to the
  762-1  deposit or be used to offset amounts due.
  762-2        (c)  The board may discontinue a facility or service to
  762-3  prevent an abuse or enforce payment of an unpaid charge, fee, or
  762-4  rental due the district, including taxes that have been due for not
  762-5  less than six months.  (V.A.C.S. Art. 4477-7j, Sec. 4.16.)
  762-6        Sec. 24.048.  Acquisition of existing facilities.  If the
  762-7  district acquires existing works, improvements, facilities, plants,
  762-8  pipelines, equipment, and appliances that are completed, partially
  762-9  completed, or under construction, the district may assume the
 762-10  contracts and obligations of the previous owner and perform the
 762-11  obligations of the previous owner in the same manner and to the
 762-12  same extent that any other purchaser or assignee would be bound.
 762-13  (V.A.C.S. Art. 4477-7j, Sec. 4.17.)
 762-14        Sec. 24.049.  Solid waste resource recovery facilities.  The
 762-15  district may construct or acquire and operate solid waste resource
 762-16  recovery facilities inside the district.  (V.A.C.S. Art. 4477-7j,
 762-17  Sec. 4.18.)
 762-18        Sec. 24.050.  Regulation of solid waste management.  The
 762-19  district shall comply with all standards, laws, and rules relating
 762-20  to the operation for all aspects of solid waste handling, including
 762-21  storage, collection, recycling, incineration, sanitary landfill, or
 762-22  composting.  (V.A.C.S. Art. 4477-7j, Sec. 4.19.)
 762-23        Sec. 24.051.  On-site sewage disposal systems.  (a)  The
 762-24  district may apply to the commission for designation as an
 762-25  authorized agent to implement and enforce on-site sewage disposal
 762-26  rules under Chapter 15.
 762-27        (b)  If the district finds that due to the nature of the soil
  763-1  or drainage in the area it is necessary to prevent water pollution
  763-2  that may injure the public health, the district by rule may:
  763-3              (1)  provide limits on the number and kind of septic
  763-4  tanks in an area defined by the rule;
  763-5              (2)  prohibit the use of septic tanks in the area; or
  763-6              (3)  prohibit the installation of new septic tanks in
  763-7  the area.
  763-8        (c)  The board shall consult the commission before the
  763-9  adoption of a rule under Subsection (b).
 763-10        (d)  The board may not issue a rule under Subsection (b)
 763-11  without first holding a public hearing in the area to be affected
 763-12  by the rule.  (V.A.C.S. Art. 4477-7j, Sec. 4.20.)
 763-13        Sec. 24.052.  Solid waste management contracts.  (a)  Unless
 763-14  otherwise provided by this subchapter, the district may contract to
 763-15  provide solid waste management services inside the district.
 763-16        (b)  The district shall set fees in a contract under
 763-17  Subsection (a) of this section after considering:
 763-18              (1)  the quality of the waste;
 763-19              (2)  the quantity of the waste;
 763-20              (3)  the difficulty encountered in treating or
 763-21  disposing of the waste;
 763-22              (4)  operation and maintenance expenses and debt
 763-23  retirement services; and
 763-24              (5)  any other reasonable considerations.  (V.A.C.S.
 763-25  Art. 4477-7j, Sec. 4.21.)
 763-26        Sec. 24.053.  Areawide waste treatment.  The powers and
 763-27  duties conferred on the district are granted subject to the state
  764-1  policy to encourage the development and use of regional and
  764-2  integrated solid waste management systems to serve the needs of the
  764-3  citizens of the state.  (V.A.C.S. Art. 4477-7j, Sec. 4.22.)
  764-4        Sec. 24.054.  Fiscal year.  (a)  The district operates on the
  764-5  fiscal year established by the board.
  764-6        (b)  The fiscal year may not be changed more than once in a
  764-7  24-month period.  (V.A.C.S. Art. 4477-7j, Sec. 5.01.)
  764-8        Sec. 24.055.  Annual audit.  Annually, the board shall have
  764-9  an audit made of the financial condition of the district.
 764-10  (V.A.C.S. Art. 4477-7j, Sec. 5.02.)
 764-11        Sec. 24.056.  Annual budget.  (a)  The board shall prepare
 764-12  and approve an annual budget for the district.
 764-13        (b)  The budget shall contain a complete financial statement,
 764-14  including a statement of:
 764-15              (1)  the outstanding obligations of the district;
 764-16              (2)  the amount of cash on hand to the credit of each
 764-17  fund of the district;
 764-18              (3)  the amount of money received by the district from
 764-19  all sources during the previous year;
 764-20              (4)  the amount of money available to the district from
 764-21  all sources during the ensuing year;
 764-22              (5)  the amount of the balances expected at the end of
 764-23  the year in which the budget is being prepared;
 764-24              (6)  the estimated amount of revenues and balances
 764-25  available to cover the proposed budget; and
 764-26              (7)  the estimated tax rate that will be required.
 764-27  (V.A.C.S. Art. 4477-7j, Sec. 5.03.)
  765-1        Sec. 24.057.  Amending budget.  After adoption, the annual
  765-2  budget may be amended on the board's approval.  (V.A.C.S. Art.
  765-3  4477-7j, Sec. 5.04.)
  765-4        Sec. 24.058.  Limitation on expenditure.  Money may not be
  765-5  spent for an expense not included in the annual budget or an
  765-6  amendment to it unless the board by order declares the expense to
  765-7  be necessary.  (V.A.C.S. Art. 4477-7j, Sec. 5.05.)
  765-8        Sec. 24.059.  Sworn statement.  As soon as practicable after
  765-9  the close of the fiscal year, the treasurer of the district shall
 765-10  prepare for the board a sworn statement of the amount of money that
 765-11  belongs to the district and an account of the disbursements of that
 765-12  money.  (V.A.C.S. Art. 4477-7j, Sec. 5.06.)
 765-13        Sec. 24.060.  Depository.  (a)  The board shall name one or
 765-14  more banks to serve as depository for district funds.
 765-15        (b)  District funds, other than those transmitted to a bank
 765-16  for payment of bonds issued by the district, shall be deposited as
 765-17  received with the depository bank and must remain on deposit.  This
 765-18  section does not limit the power of the board to invest the
 765-19  district's funds as provided by Section 24.061.
 765-20        (c)  Before the district deposits funds in a bank in an
 765-21  amount that exceeds the maximum amount secured by the Federal
 765-22  Deposit Insurance Corporation, the bank must execute a bond or
 765-23  provide other security in an amount sufficient to secure from loss
 765-24  the district's funds that exceed the amount secured by the Federal
 765-25  Deposit Insurance Corporation.  (V.A.C.S. Art. 4477-7j, Sec. 5.07.)
 765-26        Sec. 24.061.  Investments.  (a)  Funds of the district may be
 765-27  invested and reinvested by the board or its authorized
  766-1  representative in those investments specified by Article 836 or
  766-2  837, Revised Statutes, or the Public Funds Investment Act of 1987
  766-3  (Article 842a-2, Vernon's Texas Civil Statutes).
  766-4        (b)  Funds of the district may be placed in certificates of
  766-5  deposit of state or national banks or state or federal savings and
  766-6  loan associations within the state provided that funds are secured
  766-7  in the manner required for the security of the funds of counties of
  766-8  the state.
  766-9        (c)  The board by resolution may provide that an authorized
 766-10  representative of the district may invest and reinvest the funds of
 766-11  the district and provide for money to be withdrawn from the
 766-12  appropriate accounts of the district for investments on terms the
 766-13  board considers advisable.  (V.A.C.S. Art. 4477-7j, Sec. 5.08.)
 766-14        Sec. 24.062.  Payment of expenses.  (a)  The district's
 766-15  directors may pay all costs and expenses necessarily incurred in
 766-16  the creation, organization, and operation of the district, legal
 766-17  fees, and other incidental expenses and may reimburse any person
 766-18  for money advanced for those purposes.
 766-19        (b)  Payments may be made from money obtained from the sale
 766-20  of bonds issued by the district or out of taxes, fees, or other
 766-21  revenues of the district.  (V.A.C.S. Art. 4477-7j, Sec. 5.09.)
 766-22        Sec. 24.063.  Borrowing money.  The district may borrow money
 766-23  for any purpose authorized under this subchapter or any combination
 766-24  of those purposes.  (V.A.C.S. Art. 4477-7j, Sec. 5.10.)
 766-25        Sec. 24.064.  Authority to issue bonds.  The board may issue
 766-26  and sell bonds in the name of the district to acquire land and
 766-27  construct works, improvements, and waste disposal, treatment, and
  767-1  other facilities, plants, pipelines, equipment, and appliances as
  767-2  provided by this subchapter.  (V.A.C.S. Art. 4477-7j, Sec. 6.01.)
  767-3        Sec. 24.065.  Bond payment.  The board may provide for the
  767-4  payment of the principal of and interest on the bonds:
  767-5              (1)  from the levy and collection of property taxes on
  767-6  all taxable property within the district;
  767-7              (2)  by pledging all or part of the designated revenues
  767-8  from the ownership or operation of the district's works,
  767-9  improvements, and facilities; or
 767-10              (3)  from a combination of the sources listed by
 767-11  Subdivisions (1) and (2).  (V.A.C.S. Art. 4477-7j, Sec. 6.02.)
 767-12        Sec. 24.066.  Bond election.  (a)  Bonds may not be issued by
 767-13  the district until authorized by a majority vote of individuals
 767-14  qualified to vote and actually voting in the area within the
 767-15  boundaries of the district at an election called and held for that
 767-16  purpose.
 767-17        (b)  The board may order a bond election.  The order calling
 767-18  the election must state the nature and the date of the election,
 767-19  the hours during which the polls will be open, the location of the
 767-20  polling places, the amount of bonds to be authorized, and the
 767-21  maximum maturity of the bonds.
 767-22        (c)  Notice of a bond election must be given as provided by
 767-23  the Election Code.
 767-24        (d)  At an election to authorize bonds, the ballot must be
 767-25  printed to provide for voting for or against the issuance of bonds
 767-26  and the levy of property taxes for payment of the bonds.
 767-27        (e)  The board shall canvass the returns and declare the
  768-1  results of the election.  If a majority of the votes cast at the
  768-2  election favor the issuance of the bonds, the bonds may be issued
  768-3  by the board, but if a majority of the votes cast at the election
  768-4  do not favor issuance of the bonds, the bonds may not be issued.
  768-5  (V.A.C.S. Art. 4477-7j, Sec. 6.03.)
  768-6        Sec. 24.067.  Terms; form.  (a)  The district may issue its
  768-7  bonds in various series or issues.
  768-8        (b)  Bonds may mature serially or otherwise not more than 50
  768-9  years after the date of issuance and shall bear interest at a rate
 768-10  permitted by state law.
 768-11        (c)  The district's bonds and interest coupons, if any, are
 768-12  investment securities under the terms of Chapter 8, Business &
 768-13  Commerce Code, and may be issued registrable as to principal or as
 768-14  to principal and interest or may be issued in book entry form and
 768-15  may be made redeemable before maturity at the option of the
 768-16  district or may contain a mandatory redemption provision.
 768-17        (d)  The district's bonds may be issued in the form,
 768-18  denominations, and manner and under the terms, conditions, and
 768-19  details and shall be signed and executed as provided by the board
 768-20  in the resolution or order authorizing the bonds.  (V.A.C.S. Art.
 768-21  4477-7j, Sec. 6.04.)
 768-22        Sec. 24.068.  Bond provisions.  (a)  In the orders or
 768-23  resolutions authorizing the issuance of bonds, including refunding
 768-24  bonds, the board may provide for the flow of funds, the
 768-25  establishment and maintenance of the interest and sinking fund, the
 768-26  reserve fund, and other funds and may make additional covenants
 768-27  with respect to the bonds and the pledged fees.
  769-1        (b)  The orders or resolutions of the board authorizing the
  769-2  issuance of bonds may prohibit the further issuance of bonds or
  769-3  other obligations payable from the pledged fees or may reserve the
  769-4  right to issue additional bonds to be secured by a pledge of and
  769-5  payable from the fees on a parity with or subordinate to the pledge
  769-6  in support of the bonds being issued.
  769-7        (c)  The orders or resolutions of the board issuing bonds may
  769-8  contain other provisions and covenants as the board may determine.
  769-9        (d)  The board may adopt and have executed any other
 769-10  proceedings or instruments necessary and convenient in the issuance
 769-11  of bonds.  (V.A.C.S. Art. 4477-7j, Sec. 6.05.)
 769-12        Sec. 24.069.  Approval and registration.  (a)  Bonds issued
 769-13  by the district and the records relating to their issuance must be
 769-14  submitted to the attorney general for examination as to their
 769-15  validity.
 769-16        (b)  If the attorney general finds that the bonds have been
 769-17  authorized in accordance with the law, the attorney general shall
 769-18  approve them, and the comptroller of public accounts shall register
 769-19  the bonds.
 769-20        (c)  Following approval and registration, the bonds are
 769-21  incontestable and are binding obligations according to their terms.
 769-22  (V.A.C.S. Art. 4477-7j, Sec. 6.06.)
 769-23        Sec. 24.070.  Refunding bonds.  (a)  Refunding bonds of the
 769-24  district may be issued to refund and pay off an outstanding
 769-25  indebtedness the district has issued or assumed.
 769-26        (b)  The bonds must be issued in the manner provided by
 769-27  Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
  770-1  (Article 717k-3, Vernon's Texas Civil Statutes).
  770-2        (c)  The refunding bonds may be sold and the proceeds applied
  770-3  to the payment of outstanding indebtedness or may be exchanged in
  770-4  whole or in part for not less than a similar principal amount of
  770-5  outstanding indebtedness.  If the refunding bonds are to be sold
  770-6  and the proceeds applied to the payment of outstanding
  770-7  indebtedness, the refunding bonds must be issued and payments made
  770-8  in the manner provided by Chapter 503, Acts of the 54th
  770-9  Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
 770-10  Civil Statutes).  (V.A.C.S. Art. 4477-7j, Sec. 6.07.)
 770-11        Sec. 24.071.  Legal investments; security for deposits.
 770-12  (a)  District bonds are legal and authorized investments for:
 770-13              (1)  a bank;
 770-14              (2)  a savings bank;
 770-15              (3)  a trust company;
 770-16              (4)  a savings and loan association;
 770-17              (5)  an insurance company;
 770-18              (6)  a fiduciary;
 770-19              (7)  a trustee;
 770-20              (8)  a guardian; and
 770-21              (9)  the sinking fund of a municipality, county, school
 770-22  district, or other political subdivision of the state and other
 770-23  public funds of the state and its agencies, including the permanent
 770-24  school fund.
 770-25        (b)  District bonds may secure deposits of public funds of
 770-26  the state or a municipality, county, school district, or other
 770-27  political subdivision of the state.  The bonds are lawful and
  771-1  sufficient security for deposits to the extent of their value, if
  771-2  accompanied by all unmatured coupons.  (V.A.C.S. Art. 4477-7j, Sec.
  771-3  6.08.)
  771-4        Sec. 24.072.  Mandamus by bondholders.  In addition to all
  771-5  other rights and remedies provided by law, if the district defaults
  771-6  in the payment of principal, interest, or redemption price on its
  771-7  bonds when due or if it fails to make payments into any fund or
  771-8  funds created in the orders or resolutions authorizing the issuance
  771-9  of the bonds or defaults in the observation or performance of any
 771-10  other covenants, conditions, or obligations set forth in the orders
 771-11  or resolutions authorizing the issuance of its bonds, the owners of
 771-12  any of the bonds are entitled to a writ of mandamus issued by a
 771-13  court of competent jurisdiction compelling and requiring the
 771-14  district and its officials to observe and perform the covenants,
 771-15  obligations, or conditions prescribed in the orders or resolutions
 771-16  authorizing the issuance of the district's bonds.  (V.A.C.S. Art.
 771-17  4477-7j, Sec. 6.09.)
 771-18        Sec. 24.073.  Application of other laws.  Bonds of the
 771-19  district are considered bonds under the Bond Procedures Act of 1981
 771-20  (Article 717k-6, Vernon's Texas Civil Statutes).  (V.A.C.S. Art.
 771-21  4477-7j, Sec. 6.10.)
 771-22        Sec. 24.074.  Tax status of bonds.  Since the district
 771-23  created under this Act is a public entity performing an essential
 771-24  public function, bonds issued by the district, any transaction
 771-25  relating to the bonds, and profits made in the sale of the bonds
 771-26  are free from taxation by the state or by a municipality, county,
 771-27  special district, or other political subdivision of the state.
  772-1  (V.A.C.S. Art. 4477-7j, Sec. 7.01.)
  772-2        Sec. 24.075.  Levy of taxes.  (a)  The board may annually
  772-3  levy taxes in the district in an amount necessary to pay the
  772-4  principal of and interest on bonds issued by the district and the
  772-5  expense of assessing and collecting taxes.
  772-6        (b)  The district may annually levy and collect a maintenance
  772-7  and operating tax in an amount not to exceed five cents on each
  772-8  $100 of assessed valuation of property in the district to pay
  772-9  maintenance and operating expenses of the district.
 772-10        (c)  The combined tax rate for all purposes may not exceed 10
 772-11  cents on each $100 of assessed valuation of property in the
 772-12  district.  (V.A.C.S. Art. 4477-7j, Sec. 7.02.)
 772-13        Sec. 24.076.  Board authority.  (a)  The board may levy taxes
 772-14  for the entire year in which the district is created.
 772-15        (b)  The board shall levy taxes on all property within the
 772-16  boundaries of the district subject to district taxation.  (V.A.C.S.
 772-17  Art. 4477-7j, Sec. 7.03.)
 772-18        Sec. 24.077.  Tax rate.  In setting the tax rate, the board
 772-19  shall take into consideration the income of the district from
 772-20  sources other than taxation.  On determination of the amount of tax
 772-21  required to be levied, the board shall make the levy and certify it
 772-22  to the tax collector.  (V.A.C.S. Art. 4477-7j, Sec. 7.04.)
 772-23        Sec. 24.078.  Tax appraisal, assessment, and collection.
 772-24  (a)  The Tax Code governs the appraisal, assessment, and collection
 772-25  of district taxes.
 772-26        (b)  The board may provide for the appointment of a tax
 772-27  collector for the district or may contract for the collection of
  773-1  taxes as provided by the Tax Code.  (V.A.C.S. Art. 4477-7j, Sec.
  773-2  7.05.)
  773-3        Sec. 24.079.  Expansion of district territory.
  773-4  (a)  Registered voters of a defined territory that is not included
  773-5  in the district may file a petition with the secretary of the board
  773-6  requesting the inclusion of the territory in the district.  The
  773-7  petition must be signed by at least 50 registered voters of the
  773-8  territory or a majority of those voters, whichever is less.
  773-9        (b)  The board by order shall set a time and place to hold a
 773-10  hearing on the petition to include the territory in the district.
 773-11  The board shall set a date for the hearing that is after the 30th
 773-12  day after the date the board issues the order.
 773-13        (c)  If after the hearing the board finds that annexation of
 773-14  the territory into the district would be feasible and would benefit
 773-15  the district, the board may approve the annexation by a resolution
 773-16  entered in its minutes.  The board is not required to include all
 773-17  of the territory described in the petition if the board finds that
 773-18  a modification or change is necessary or desirable.
 773-19        (d)  Annexation of territory is final when approved by a
 773-20  majority of the voters at an election held in the district and by a
 773-21  majority of the voters at a separate election held in the territory
 773-22  to be annexed.  If the district has outstanding debts or taxes, the
 773-23  voters in the election to approve the annexation must also
 773-24  determine if the annexed territory will assume its proportion of
 773-25  the debts or taxes if added to the district.
 773-26        (e)  The election ballots shall be printed to provide for
 773-27  voting for or against the following, as applicable:
  774-1              (1)  "Adding (description of territory to be added) to
  774-2  the Gaines County Solid Waste Management District."
  774-3              (2)  "(Description of territory to be added) assuming
  774-4  its proportionate share of the outstanding debts and taxes of the
  774-5  Gaines County Solid Waste Management District, if it is added to
  774-6  the district."
  774-7        (f)  The election shall be held after the 45th day and on or
  774-8  before the 60th day after the date the election is ordered.  The
  774-9  election shall be ordered and notice of the election shall be given
 774-10  in accordance with the Election Code.   Section 41.001(a), Election
 774-11  Code, does not apply to an election held under this section.
 774-12  (V.A.C.S. Art. 4477-7j, Sec. 24.079.)
 774-13            (Sections 24.080-24.100 reserved for expansion)
 774-14            SUBCHAPTER B.  UPPER SABINE VALLEY SOLID WASTE
 774-15                        MANAGEMENT DISTRICT ACT
 774-16        Sec. 24.101.  Purpose.  The purpose of this subchapter is to
 774-17  establish an instrumentality to develop and carry out a regional
 774-18  water quality protection program through solid waste management and
 774-19  regulation of waste disposal for the area encompassed by Upshur,
 774-20  Wood, and Rains counties and by the portion of Smith County that is
 774-21  north of Interstate Highway 20.  (V.A.C.S. Art. 4477-7k, Sec.
 774-22  1.01.)
 774-23        Sec. 24.102.  Findings and declaration of policy.  (a)  The
 774-24  legislature finds that:
 774-25              (1)  the quality of water in East Texas is materially
 774-26  affected by the disposal of waste throughout the region;
 774-27              (2)  a regional effort to study water pollution, plan
  775-1  corrective and preventive measures, provide coordinated facilities
  775-2  for waste disposal, and regulate waste disposal is far more
  775-3  effective than efforts on a smaller scale;
  775-4              (3)  solid waste, as well as other waste, may impair
  775-5  water quality by seepage or drainage; and
  775-6              (4)  creation of the Upper Sabine Valley Solid Waste
  775-7  Management District would advance the established policy of this
  775-8  state to maintain the quality of the water in the state consistent
  775-9  with:
 775-10                    (A)  the public health and public enjoyment;
 775-11                    (B)  the propagation and protection of
 775-12  terrestrial and aquatic life;
 775-13                    (C)  the operation of existing industries; and
 775-14                    (D)  the economic development of the state.
 775-15        (b)  The legislature finds that this subchapter is in
 775-16  compliance with Article XVI, Sections 59(d) and (e), of the Texas
 775-17  Constitution and that the legislature has the power and authority
 775-18  to enact this subchapter.
 775-19        (c)  The legislature finds that all of the area included in
 775-20  the district is benefited by the exercise of the power conferred by
 775-21  this subchapter.  (V.A.C.S. Art. 4477-7k, Sec. 1.02.)
 775-22        Sec. 24.103.  Definitions.  In this subchapter:
 775-23              (1)  "Board" means the board of directors of the
 775-24  district.
 775-25              (2)  "Director" means a member of the board.
 775-26              (3)  "District" means the Upper Sabine Valley Solid
 775-27  Waste Management District created under this Act.
  776-1              (4)  "Industrial solid waste" has the meaning assigned
  776-2  by Section 20.003.
  776-3              (5)  "Local government" means an incorporated
  776-4  municipality, a county, or a water or other special district or
  776-5  authority acting under Article III, Sections 52(b)(1) and (2), or
  776-6  Article XVI, Section 59, of the Texas Constitution.
  776-7              (6)  "Municipal solid waste" has the meaning assigned
  776-8  by Section 20.003.
  776-9              (7)  "Outside the district" means the area contained in
 776-10  counties adjacent to the district.
 776-11              (8)  "Person" means an individual, public or private
 776-12  corporation, political subdivision, governmental agency,
 776-13  municipality, copartnership, association, firm, trust, estate, or
 776-14  any other legal entity.
 776-15              (9)  "Resource recovery facility" means a facility used
 776-16  to store, handle, sort, bail, recycle, process, and recover solid
 776-17  waste.
 776-18              (10)  "Sewage" has the meaning assigned by Section
 776-19  15.002.
 776-20              (11)  "Solid waste" has the meaning assigned by Section
 776-21  20.003.
 776-22              (12)  "Solid waste management system" means a system
 776-23  for controlling all aspects of the collection, handling,
 776-24  transportation, processing, recovery, and disposal of solid waste.
 776-25              (13)  "Water" means groundwater, percolating or
 776-26  otherwise, lakes, bays, ponds, springs, rivers, streams, creeks,
 776-27  and all other bodies of surface water, natural or artificial, that
  777-1  are wholly or partially within the district.
  777-2              (14)  "Water pollution" means the alteration of the
  777-3  physical, chemical, or biological quality of or the contamination
  777-4  of water that renders the water harmful, detrimental, or injurious
  777-5  to humans, animal life, vegetation, or property, or to public
  777-6  health, safety, or welfare, or that impairs the usefulness or the
  777-7  public enjoyment of the water for any lawful or reasonable purpose.
  777-8  (V.A.C.S. Art. 4477-7k, Sec. 1.03.)
  777-9        Sec. 24.104.  Creation of district.  Pursuant to Article XVI,
 777-10  Section 59, of the Texas Constitution, a conservation and
 777-11  reclamation district to be known as the Upper Sabine Valley Solid
 777-12  Waste Management District is created as a governmental agency and
 777-13  body politic and corporate of the state.  (V.A.C.S. Art. 4477-7k,
 777-14  Sec. 2.01.)
 777-15        Sec. 24.105.  Description.  Except as provided by Section
 777-16  24.210 of this subchapter, the district's territory consists of the
 777-17  area within the boundaries of Upshur, Wood, and Rains counties and
 777-18  that portion of Smith County that is north of Interstate Highway
 777-19  20.  (V.A.C.S. Art. 4477-7k, Sec. 2.02.)
 777-20        Sec. 24.106.  Appointment of temporary directors.  (a)  On or
 777-21  after the effective date of this subchapter, the commissioners
 777-22  court of each county included in the proposed district shall each
 777-23  appoint two persons to serve as temporary directors of the
 777-24  district.
 777-25        (b)  Members of the temporary board serve until the persons
 777-26  selected as directors under Section 24.116 have been appointed and
 777-27  have qualified for office.
  778-1        (c)  A vacancy on the temporary board shall be filled by
  778-2  appointment in the same manner as the original appointment.
  778-3  (V.A.C.S. Art. 4477-7k, Sec. 2.03.)
  778-4        Sec. 24.107.  Confirmation and tax elections.  (a)  The
  778-5  temporary directors shall call and hold a separate election in each
  778-6  county within the boundaries of the proposed district to determine
  778-7  if the proposed district will be created and a tax authorized.  The
  778-8  elections shall be held on the same day and within six months of
  778-9  the effective date of this subchapter.
 778-10        (b)  Section 41.001(a), Election Code, does not apply to a
 778-11  confirmation and tax election held under this section.  (V.A.C.S.
 778-12  Art. 4477-7k, Sec. 2.04.)
 778-13        Sec. 24.108.  Notice of election.  (a)  Notice of the
 778-14  confirmation and tax elections shall state the day and places for
 778-15  holding the elections and the proposition to be voted on.
 778-16        (b)  The temporary board shall publish the notice of the
 778-17  elections one time in one or more newspapers of general circulation
 778-18  in the proposed district.   The notice must be published before the
 778-19  35th day before the date set for the elections.  (V.A.C.S. Art.
 778-20  4477-7k, Sec. 2.05.)
 778-21        Sec. 24.109.  Ballot proposition.  The ballot for the
 778-22  elections shall be printed to permit voting for or against the
 778-23  proposition:  "The creation of the Upper Sabine Valley Solid Waste
 778-24  Management District and the levy of a maintenance and operating tax
 778-25  in an amount not to exceed three cents on each $100 valuation."
 778-26  (V.A.C.S. Art. 4477-7k, Sec. 2.06.)
 778-27        Sec. 24.110.  Canvassing returns.  (a)  Immediately after the
  779-1  confirmation and tax elections, the presiding judge of each polling
  779-2  place shall deliver returns of the elections to the temporary
  779-3  board, and the temporary board shall canvass the returns and
  779-4  declare the results.
  779-5        (b)  If a majority of the votes cast at the election in one
  779-6  or more counties favor creation of the district, the board shall
  779-7  declare the district created and shall enter the results in its
  779-8  minutes.  If the election results are favorable in one or more
  779-9  counties, but not in all counties, the temporary directors shall
 779-10  set the boundaries of the district to include only the counties in
 779-11  which the vote was favorable.  If a majority of the votes cast at
 779-12  each election are against the creation of the district, the board
 779-13  shall declare that the creation of the district was defeated and
 779-14  shall enter the results in its minutes.  The board shall file a
 779-15  copy of the election results with the commission.
 779-16        (c)  If a majority of the voters in each county vote against
 779-17  the creation of the district, the board may call and hold
 779-18  additional confirmation and tax elections, but another election to
 779-19  confirm creation of the district may not be called and held by the
 779-20  board before the first anniversary of the most recent confirmation
 779-21  and tax elections.  If the creation of the district is not
 779-22  confirmed on or before August 26, 1996, this subchapter expires.
 779-23  (V.A.C.S. Art. 4477-7k, Sec. 2.07.)
 779-24        Sec. 24.111.  Board of directors.  (a)  The district is
 779-25  governed by a board of directors composed of not fewer than six
 779-26  members who are appointed as provided by this subchapter.
 779-27        (b)  If the district is composed of only one county, the
  780-1  commissioners court of that county shall appoint six persons to
  780-2  serve as directors.
  780-3        (c)  If the district is composed of two counties, the
  780-4  commissioners court of each county included in the district shall
  780-5  each appoint three persons to serve as directors.
  780-6        (d)  If the district is composed of three or more counties,
  780-7  the commissioners court of each county included in the district
  780-8  shall each appoint two persons to serve as directors.
  780-9        (e)  At least one of the directors appointed by each
 780-10  commissioners court shall represent the interests of municipalities
 780-11  and of unincorporated communities with a population of 1,000 or
 780-12  more, according to the most recent federal decennial census, that
 780-13  are located in that county.  (V.A.C.S. Art. 4477-7k, Sec. 3.01.)
 780-14        Sec. 24.112.  Qualifications of directors.  (a)  To be
 780-15  eligible to be appointed as or to serve as a director, a person
 780-16  must be:
 780-17              (1)  18 years of age or older;
 780-18              (2)  a qualified voter; and
 780-19              (3)  a resident of the county of the appointing
 780-20  commissioners court.
 780-21        (b)  If a member of a commissioners court or a municipal
 780-22  government officer is appointed as a director, the member's or
 780-23  officer's service as a director is considered an additional duty of
 780-24  the member's or officer's existing office.  The member or officer
 780-25  is not entitled to a per diem allowance under Section 24.120, but
 780-26  is entitled to reimbursement for actual and necessary expenses
 780-27  incurred in performing official duties as a director.
  781-1        (c)  Each director must execute a bond in the amount of
  781-2  $5,000 with a corporate surety authorized to do business in this
  781-3  state and conditioned on the faithful performance of the director's
  781-4  duties.  The district shall pay the premiums on the directors'
  781-5  bonds under this section.  (V.A.C.S. Art. 4477-7k, Sec. 3.02.)
  781-6        Sec. 24.113.  Term of office.  Except as provided by Sections
  781-7  24.116 and 24.180, a director holds office for a term of four years
  781-8  and until the director's successor has been appointed and has
  781-9  qualified.  (V.A.C.S. Art. 4477-7k, Sec. 3.03.)
 781-10        Sec. 24.114.  Vacancy on board.  A vacancy on the board shall
 781-11  be filled in the same manner as the original appointment for the
 781-12  unexpired term.  (V.A.C.S. Art. 4477-7k, Sec. 3.04.)
 781-13        Sec. 24.115.  Oath.  Each director shall file the statement
 781-14  and take the constitutional oath of office required of state
 781-15  officers.  (V.A.C.S. Art. 4477-7k, Sec. 3.05.)
 781-16        Sec. 24.116.  Initial meeting and organization.  (a)  As soon
 781-17  as possible after all directors have been appointed and have
 781-18  qualified, the county judge of the county included in the district
 781-19  that has the largest population shall call a meeting of the board
 781-20  and shall preside at the meeting until the directors have elected
 781-21  from the board's membership a chairman, a vice-chairman, a
 781-22  secretary, and a treasurer.
 781-23        (b)  A person selected as an officer serves for a term of one
 781-24  year.
 781-25        (c)  At the initial meeting, the directors shall draw lots so
 781-26  that one-half of the initial directors serve four-year terms that
 781-27  begin on the date on which the initial meeting is held, and
  782-1  one-half of the directors serve two-year terms that begin on that
  782-2  date.
  782-3        (d)  The board shall adopt bylaws at the initial meeting or
  782-4  as soon after the initial meeting as practicable.  The bylaws must
  782-5  prescribe the powers, duties, and procedures for removal from a
  782-6  board office.  (V.A.C.S. Art. 4477-7k, Sec. 3.06.)
  782-7        Sec. 24.117.  Meeting and actions of board.  (a)  The board
  782-8  shall meet at least one time each month and may meet at any other
  782-9  time provided by its bylaws.
 782-10        (b)  A majority of the members of the board constitute a
 782-11  quorum for the transaction of business of the district.
 782-12        (c)  Except as otherwise provided by this subchapter, the
 782-13  vote of a majority of directors is required for board action.
 782-14  (V.A.C.S. Art. 4477-7k, Sec. 3.07.)
 782-15        Sec. 24.118.  Attorney; treasurer's bond.  (a)  The board may
 782-16  appoint an attorney for the district.
 782-17        (b)  The person appointed under this section is entitled to
 782-18  the compensation provided by the district's budget.
 782-19        (c)  The person elected as treasurer under Section 24.116(a)
 782-20  shall execute a bond in the amount determined by the board, payable
 782-21  to the district, and conditioned on the faithful performance of the
 782-22  treasurer's duties.  The district shall pay for the bond.
 782-23  (V.A.C.S. Art. 4477-7k, Sec. 3.08.)
 782-24        Sec. 24.119.  Interest in contract.  A director who is
 782-25  financially interested in a contract to be executed by the district
 782-26  for the purchase of property or the construction of facilities
 782-27  shall disclose that fact to the other directors and may not vote on
  783-1  the acceptance of the contract.  (V.A.C.S. Art. 4477-7k, Sec.
  783-2  3.09.)
  783-3        Sec. 24.120.  Director's compensation.  (a)  A director is
  783-4  entitled to receive $50 a day and reimbursement for actual and
  783-5  necessary expenses incurred:
  783-6              (1)  for each day the director attends meetings of the
  783-7  board; and
  783-8              (2)  for each day the director attends to the business
  783-9  of the district that is authorized by board resolution or motion.
 783-10        (b)  A director is not entitled to receive a per diem
 783-11  allowance for more than 60 days in any one calendar year.
 783-12  (V.A.C.S. Art. 4477-7k, Sec. 3.10.)
 783-13        Sec. 24.121.  General manager; personnel.  (a)  The board
 783-14  shall employ a general manager for a term and salary set by the
 783-15  board.
 783-16        (b)  The general manager is the chief executive officer of
 783-17  the district.  Under policies established by the board, the general
 783-18  manager is responsible to the board for:
 783-19              (1)  administering the directives of the board;
 783-20              (2)  keeping the district's records, including minutes
 783-21  of the board's meetings;
 783-22              (3)  coordinating with state, federal, and local
 783-23  agencies;
 783-24              (4)  developing plans and programs for the board's
 783-25  approval;
 783-26              (5)  hiring, supervising, training, and discharging
 783-27  district employees;
  784-1              (6)  contracting for or retaining technical,
  784-2  scientific, legal, fiscal, and other professional services; and
  784-3              (7)  performing any other duty assigned to the general
  784-4  manager by the board.
  784-5        (c)  The board may discharge the general manager on a
  784-6  majority vote of the directors.  (V.A.C.S. Art. 4477-7k, Sec.
  784-7  3.11.)
  784-8        Sec. 24.122.  Employees' bonds.  (a)  The general manager and
  784-9  each employee of the district charged with the collection, custody,
 784-10  or payment of any money of the district shall execute a fidelity
 784-11  bond.  The board shall approve the form, amount, and surety of the
 784-12  bond.
 784-13        (b)  The district shall pay the premiums on the employees'
 784-14  bonds under this section.  (V.A.C.S. Art. 4477-7k, Sec. 3.12.)
 784-15        Sec. 24.123.  Principal office.  The district shall maintain
 784-16  its principal office inside the district's boundaries.  (V.A.C.S.
 784-17  Art. 4477-7k, Sec. 3.13.)
 784-18        Sec. 24.124.  Records.  (a)  The district shall keep complete
 784-19  and accurate accounts of its business transactions in accordance
 784-20  with generally accepted methods of accounting.
 784-21        (b)  The district shall keep complete and accurate minutes of
 784-22  its meetings.
 784-23        (c)  The district shall keep its accounts, contracts,
 784-24  documents, minutes, and other records at its principal office.
 784-25        (d)  Neither the board nor its employees may disclose a
 784-26  district record that relates to trade secrets or the economics of
 784-27  an industry's operations.  (V.A.C.S. Art. 4477-7k, Sec. 3.14.)
  785-1        Sec. 24.125.  Contracts.  The board may enter into contracts
  785-2  as provided by this subchapter, and those contracts shall be
  785-3  executed by the board in the name of the district.  (V.A.C.S. Art.
  785-4  4477-7k, Sec. 3.15.)
  785-5        Sec. 24.126.  Supervision of district.  The district is
  785-6  subject to the continuing right of supervision by the state in
  785-7  accordance with state law.  (V.A.C.S. Art. 4477-7k, Sec. 3.16.)
  785-8        Sec. 24.127.  Suits; payments of judgments.  (a)  The
  785-9  district may, through its board, sue and be sued in any court of
 785-10  this state in the name of the district.  Service of process in a
 785-11  suit may be had by serving the general manager.
 785-12        (b)  The courts of this state shall take judicial notice of
 785-13  the creation of the district.
 785-14        (c)  A court of this state that renders a money judgment
 785-15  against the district may require the board to pay the judgment from
 785-16  money in the district depository that is not dedicated to the
 785-17  payment of any indebtedness of the district.  (V.A.C.S. Art.
 785-18  4477-7k, Sec. 3.17.)
 785-19        Sec. 24.128.  Seal.  The board shall adopt a seal for the
 785-20  district and may alter the form of the seal from time to time.
 785-21  (V.A.C.S. Art. 4477-7k, Sec. 3.18.)
 785-22        Sec. 24.129.  General powers and duties.  (a)  The district
 785-23  shall administer and enforce this subchapter and shall use its
 785-24  facilities and powers to accomplish the purposes of this
 785-25  subchapter.
 785-26        (b)  After notice and hearing, the board may adopt rules
 785-27  necessary to carry out this subchapter.  The board shall adopt
  786-1  rules providing procedures for giving notice and holding hearings.
  786-2        (c)  The district may prepare and adopt plans for and may
  786-3  purchase, construct, acquire, own, operate, maintain, repair,
  786-4  improve, and extend inside and outside the boundaries of the
  786-5  district any works, improvements, waste disposal, treatment, and
  786-6  other facilities, plants, pipelines, equipment, and appliances
  786-7  necessary to collect, transport, process, dispose of, and control
  786-8  domestic, industrial, and communal waterborne and solid waste
  786-9  within the district.
 786-10        (d)  The district shall acquire all permits required by state
 786-11  law that are necessary to carry out this article.
 786-12        (e)  The district shall conduct studies and research for the
 786-13  control of water pollution and waste disposal within the district,
 786-14  shall cooperate with the department and commission in any studies,
 786-15  and shall use the results of those studies.
 786-16        (f)  The regulatory powers of the district under this
 786-17  subchapter extend to every person within the district.
 786-18        (g)  Except as expressly limited by this subchapter, the
 786-19  district has all powers, rights, and privileges necessary and
 786-20  convenient for accomplishing the purposes of this subchapter
 786-21  conferred by general law on a conservation and reclamation district
 786-22  created under Article XVI, Section 59, of the Texas Constitution,
 786-23  including specifically all powers, rights, and privileges conferred
 786-24  by Subtitle B, Title 5, Health and Safety Code, on a local or
 786-25  regional government.
 786-26        (h)  The powers granted to the district by this subchapter
 786-27  are cumulative of all powers granted by other laws that are by
  787-1  their terms applicable to the district.
  787-2        (i)  The district may enter into cooperative agreements with
  787-3  local governments and other political subdivisions to jointly
  787-4  operate solid waste management activities and to charge reasonable
  787-5  fees for those services.  (V.A.C.S. Art. 4477-7k, Sec. 4.01.)
  787-6        Sec. 24.130.  Gifts, grants, loans, and other funds.  To
  787-7  carry out any purposes or powers under this subchapter, the
  787-8  district may apply for, accept, receive, and administer gifts,
  787-9  grants, loans, and other funds available from any source.
 787-10  (V.A.C.S. Art. 4477-7k, Sec. 4.02.)
 787-11        Sec. 24.131.  Consultation, contracts, and cooperation with
 787-12  other governmental agencies and entities.  To carry out any
 787-13  purposes or powers under this subchapter, the district may advise,
 787-14  consult, contract, and cooperate with the federal government and
 787-15  its agencies, the state and its agencies, local governments, and
 787-16  private entities.  (V.A.C.S. Art. 4477-7k, Sec. 4.03.)
 787-17        Sec. 24.132.  Acquisition of property.  The district may
 787-18  acquire by gift, grant, devise, purchase, lease, or eminent domain
 787-19  any land, easements, rights-of-way, and other property interests
 787-20  necessary to carry out the powers and duties provided by this
 787-21  subchapter.  (V.A.C.S. Art. 4477-7k, Sec. 4.04.)
 787-22        Sec. 24.133.  Eminent domain.  (a)  The district may acquire
 787-23  land for the purposes authorized by Section 24.129(c) by
 787-24  condemnation if the board determines, after notice and hearing,
 787-25  that it is necessary.
 787-26        (b)  The district must exercise the power of eminent domain
 787-27  in the manner provided by Chapter 21, Property Code, but the
  788-1  district is not required to:
  788-2              (1)  deposit in the trial court money or a bond as
  788-3  provided by Section 21.021(a), Property Code;
  788-4              (2)  pay in advance or give bond or other security for
  788-5  costs in the trial court;
  788-6              (3)  give bond for the issuance of a temporary
  788-7  restraining order or a temporary injunction; or
  788-8              (4)  give bond for costs or supersedeas on an appeal or
  788-9  writ of error.
 788-10        (c)  If the district, in the exercise of the power of eminent
 788-11  domain, requires relocating, raising, lowering, rerouting, changing
 788-12  the grade, or altering the construction of any railroad, highway,
 788-13  pipeline, or electric transmission and electric distribution,
 788-14  telegraph, or telephone lines, conduits, poles or facilities, the
 788-15  district must bear the actual cost of relocating, raising,
 788-16  lowering, rerouting, changing the grade, or altering the
 788-17  construction to provide comparable replacement without enhancement
 788-18  of facilities, after deducting the net salvage value derived from
 788-19  the old facility.  (V.A.C.S. Art. 4477-7k, Sec. 4.05.)
 788-20        Sec. 24.134.  Authority to enter into construction,
 788-21  renovation, and repair contracts.  The district may contract with
 788-22  any person to construct, renovate, or repair any of its works,
 788-23  improvements, waste disposal, treatment, or other facilities,
 788-24  plants, pipelines, equipment, and appliances and, from time to
 788-25  time, make improvements to them.  (V.A.C.S. Art. 4477-7k, Sec.
 788-26  4.06.)
 788-27        Sec. 24.135.  Bids on contracts.  Contracts entered into
  789-1  under Section 24.134 requiring an expenditure of more than $10,000
  789-2  may be made only after competitive bidding as provided by
  789-3  Subchapter B, Chapter 271, Local Government Code.  (V.A.C.S. Art.
  789-4  4477-7k, Sec. 4.07.)
  789-5        Sec. 24.136.  Attachments to contracts.  A contract entered
  789-6  into under Section 24.134 must contain, or have attached to it, the
  789-7  specifications, plans, and details for work included in the
  789-8  contract, and work shall be done according to those plans and
  789-9  specifications under the supervision of the district.  (V.A.C.S.
 789-10  Art. 4477-7k, Sec. 4.08.)
 789-11        Sec. 24.137.  Execution and availability of contracts.
 789-12  (a)  A contract entered into under Section 24.134 must be in
 789-13  writing and signed by the contractor and a representative of the
 789-14  district designated by the board.
 789-15        (b)  The contract shall be kept in the district's office and
 789-16  must be available for public inspection.  (V.A.C.S. Art. 4477-7k,
 789-17  Sec. 4.09.)
 789-18        Sec. 24.138.  Contractor's bond.  (a)  A contractor shall
 789-19  execute a bond in an amount determined by the board, not to exceed
 789-20  the contract price, payable to the district and approved by the
 789-21  board, conditioned on the faithful performance of the obligations,
 789-22  agreements, and covenants of the contract.
 789-23        (b)  The bond must provide that if the contractor defaults on
 789-24  the contract, the contractor will pay to the district all damages
 789-25  sustained as a result of the default.  The bond shall be deposited
 789-26  in the district's depository, and a copy of the bond shall be kept
 789-27  in the district's office.  (V.A.C.S. Art. 4477-7k, Sec. 4.10.)
  790-1        Sec. 24.139.  Monitoring work.  (a)  The board has control of
  790-2  construction, renovation, or repairs being done for the district
  790-3  under a contract entered into under Section 24.134 and shall
  790-4  determine whether or not the contract is being fulfilled.
  790-5        (b)  The board shall have the construction, renovation, or
  790-6  repair work inspected by engineers, inspectors, and personnel of
  790-7  the district.
  790-8        (c)  During the progress of the work, the engineers,
  790-9  inspectors, and personnel doing the inspections shall submit to the
 790-10  board written reports that show whether or not the contractor is
 790-11  complying with the contract.
 790-12        (d)  On completion of construction, renovation, or repair
 790-13  work, the engineers, inspectors, and personnel shall submit to the
 790-14  board a final detailed written report including information
 790-15  necessary to show whether or not the contractor has fully complied
 790-16  with the contract.  (V.A.C.S. Art. 4477-7k, Sec. 4.11.)
 790-17        Sec. 24.140.  Payments for work.  (a)  The district shall pay
 790-18  the contract price of construction, renovation, or repair contracts
 790-19  in accordance with this section.
 790-20        (b)  The district shall make progress payments under
 790-21  contracts monthly as the work proceeds or at more frequent
 790-22  intervals as determined by the board.
 790-23        (c)  If requested by the board, the contractor shall furnish
 790-24  an analysis of the total contract price showing the amount included
 790-25  for each principal category of the work, in the detail requested,
 790-26  to provide a basis for determining progress payments.
 790-27        (d)  In making progress payments, 10 percent of the estimated
  791-1  amounts shall be retained until final completion and acceptance of
  791-2  the contract work.  However, if the board, at any time after 50
  791-3  percent of the work has been completed, finds that satisfactory
  791-4  progress is being made, it may authorize any of the remaining
  791-5  progress payments to be made in full.  Also, if the work is
  791-6  substantially complete, the board, if it finds the amount retained
  791-7  to be in excess of the amount adequate for the protection of the
  791-8  district, may release to the contractor all or a portion of the
  791-9  excess amount.
 791-10        (e)  On completion and acceptance of each separate project,
 791-11  work, or other division of the contract on which the price is
 791-12  stated separately in the contract, payment may be made without
 791-13  retention of a percentage.
 791-14        (f)  When work is completed according to the terms of the
 791-15  contract, the board shall draw a warrant on the depository to pay
 791-16  any balance due on the contract.  (V.A.C.S. Art. 4477-7k, Sec.
 791-17  4.12.)
 791-18        Sec. 24.141.  Contracts for purchase of vehicles, equipment,
 791-19  and supplies over $10,000.  (a)  If the estimated amount of a
 791-20  proposed contract for the purchase of vehicles, equipment, or
 791-21  supplies is more than $10,000, the board shall ask for competitive
 791-22  bids as provided by Section 24.135.
 791-23        (b)  This section does not apply to purchase of property from
 791-24  public agencies or to contracts for personal or professional
 791-25  services.  (V.A.C.S. Art. 4477-7k, Sec. 4.13.)
 791-26        Sec. 24.142.  Entry on land.  (a)  The directors, the
 791-27  engineer, and the employees of the district may go on any land
  792-1  inside or outside the boundaries of the district to make surveys
  792-2  and examine the land with reference to the location of works,
  792-3  improvements, and waste disposal, treatment, and other facilities,
  792-4  plants, pipelines, equipment, and appliances, and to attend to
  792-5  business of the district.
  792-6        (b)  Before a director, engineer, or employee enters on the
  792-7  land, five days' written notice must be given to the landowner.
  792-8        (c)  If any activities of the district on the land cause
  792-9  damages to the land or property, the land or property shall be
 792-10  restored as nearly as possible to its original state.  The district
 792-11  shall pay the cost of the restoration.  (V.A.C.S. Art. 4477-7k,
 792-12  Sec. 4.14.)
 792-13        Sec. 24.143.  Right to use road right-of-way.  (a)  The
 792-14  district has a right-of-way along and across all public state or
 792-15  county roads or highways; provided that a governmental entity
 792-16  having jurisdiction of such right-of-way may designate the place
 792-17  upon the right-of-way the facilities of the district shall be
 792-18  installed and may require the relocation of the facilities of the
 792-19  district to accommodate any widening or changing of traffic lanes.
 792-20        (b)  The district may not proceed with any action to change,
 792-21  alter, or damage facilities or property of the state without having
 792-22  first obtained the written consent of the governmental entity
 792-23  having control and jurisdiction of such facilities or property.
 792-24  (V.A.C.S. Art. 4477-7k, Sec. 4.15.)
 792-25        Sec. 24.144.  Fees and charges.  (a)  The board may adopt and
 792-26  enforce all necessary charges, fees, or rentals in addition to
 792-27  taxes for providing any district facilities or services.
  793-1        (b)  The board may require a deposit for any services or
  793-2  facilities furnished and may or may not provide that the deposit
  793-3  will bear interest.
  793-4        (c)  The board may discontinue a facility or service to
  793-5  prevent an abuse or enforce payment of an unpaid charge, fee, or
  793-6  rental due the district, including taxes that have been due for not
  793-7  less than six months.  (V.A.C.S. Art. 4477-7k, Sec. 4.16.)
  793-8        Sec. 24.145.  Acquisition of existing facilities.  If the
  793-9  district acquires existing works, improvements, and waste disposal,
 793-10  treatment, and other facilities, plants, pipelines, equipment, and
 793-11  appliances that are completed, partially completed, or under
 793-12  construction, the district may assume the contracts and obligations
 793-13  of the previous owner and perform the obligations of the previous
 793-14  owner in the same manner and to the same extent that any other
 793-15  purchaser or assignee would be bound.  (V.A.C.S. Art. 4477-7k, Sec.
 793-16  4.17.)
 793-17        Sec. 24.146.  Solid waste resource recovery or recycling
 793-18  facilities.  The district may construct or acquire and operate
 793-19  solid waste resource recovery or recycling facilities.  (V.A.C.S.
 793-20  Art. 4477-7k, Sec. 4.18.)
 793-21        Sec. 24.147.  Regulation of solid waste disposal.  (a)  The
 793-22  district shall establish minimum standards of operation for all
 793-23  aspects of solid waste handling, including storage, collection,
 793-24  incineration, recycling, sanitary landfill, and composting.
 793-25        (b)  Before establishing the standards, the district shall:
 793-26              (1)  hold public hearings after giving public notice in
 793-27  the time and manner prescribed by board rule;
  794-1              (2)  consult with the commission to ensure that the
  794-2  standards are not inconsistent with established criteria; and
  794-3              (3)  find that the standards are reasonably necessary
  794-4  to protect the public health or welfare from water pollution or
  794-5  other environment harm.
  794-6        (c)  To amend standards, the district shall follow the same
  794-7  procedures required for establishing standards.
  794-8        (d)  The district may make rules reasonably necessary to
  794-9  implement solid waste disposal standards.
 794-10        (e)  The district may assume the exclusive authority to
 794-11  exercise the powers granted to a county under Section 20.165
 794-12  including the power to issue licenses and exercise municipal solid
 794-13  waste management authority.  If the district elects to exercise the
 794-14  licensing authority granted under this subsection, it must adopt
 794-15  and enforce rules for the management of municipal solid waste.  The
 794-16  rules must be compatible with and at least as stringent as those of
 794-17  the commission and must be approved by the commission.  (V.A.C.S.
 794-18  Art. 4477-7k, Sec. 4.19.)
 794-19        Sec. 24.148.  On-site sewage disposal systems.  (a)  The
 794-20  district may apply to the commission for designation as an
 794-21  authorized agent to implement and enforce on-site sewage disposal
 794-22  rules under Chapter 15.
 794-23        (b)  If the district finds that due to the nature of the soil
 794-24  or drainage in the area it is necessary to prevent water pollution
 794-25  that may injure the public health, the board by rule may:
 794-26              (1)  provide limits on the number and kind of septic
 794-27  tanks in an area defined by the rule;
  795-1              (2)  prohibit the use of septic tanks in the area; or
  795-2              (3)  prohibit the installation of new septic tanks in
  795-3  the area.
  795-4        (c)  The board shall consult with the commission before the
  795-5  adoption of a rule under Subsection (b).
  795-6        (d)  The board may provide in the order for a gradual and
  795-7  systematic reduction of the number or kind of septic tanks in the
  795-8  area and, by rule, may provide for a system of licensing and
  795-9  issuing permits for the installation of new septic tanks in the
 795-10  area affected, in which event a person may not install septic tanks
 795-11  in the area without a license or permit from the board.
 795-12        (e)  The board may not issue a rule under Subsection (b)
 795-13  without first holding a public hearing in the area to be affected
 795-14  by the rule.  (V.A.C.S. Art. 4477-7k, Sec. 4.20.)
 795-15        Sec. 24.149.  Acquisition, construction, and operation of
 795-16  disposal systems.  The district may:
 795-17              (1)  acquire and provide by purchase, gift, or lease
 795-18  any disposal systems inside or outside the district;
 795-19              (2)  construct and provide disposal systems inside or
 795-20  outside the district;
 795-21              (3)  operate and sell any disposal systems that it
 795-22  constructs or acquires;
 795-23              (4)  contract with a person to operate and maintain a
 795-24  disposal system belonging to the person; and
 795-25              (5)  contract with a person to train or supervise
 795-26  employees of a disposal system.  (V.A.C.S. Art. 4477-7k, Sec.
 795-27  4.21.)
  796-1        Sec. 24.150.  Waste disposal contracts.  (a)  The district
  796-2  may contract to receive and to treat or dispose of waste from a
  796-3  person in the district.
  796-4        (b)  The district shall set fees in a contract under
  796-5  Subsection (a) of this section after considering:
  796-6              (1)  the quality of the waste;
  796-7              (2)  the quantity of the waste;
  796-8              (3)  the difficulty encountered in treating or
  796-9  disposing of the waste;
 796-10              (4)  operation and maintenance expenses and debt
 796-11  retirement services; and
 796-12              (5)  any other reasonable considerations.  (V.A.C.S.
 796-13  Art. 4477-7k, Sec. 4.22.)
 796-14        Sec. 24.151.  Area-wide waste treatment.  The powers and
 796-15  duties conferred on the district are granted subject to the state
 796-16  policy to encourage the development and use of integrated area-wide
 796-17  waste collection, treatment, and disposal systems to serve the
 796-18  waste disposal needs of the citizens of the state, it being an
 796-19  objective of the policy to avoid the economic burden to the people
 796-20  and the impact on the quality of the water in the state that result
 796-21  from the construction and operation of numerous small waste
 796-22  collection, treatment, and disposal facilities to serve an area
 796-23  when an integrated area-wide waste collection, treatment, and
 796-24  disposal system for the area can be reasonably provided.  (V.A.C.S.
 796-25  Art. 4477-7k, Sec. 4.23.)
 796-26        Sec. 24.152.  Fiscal year.  (a)  The district operates on the
 796-27  fiscal year established by the board.
  797-1        (b)  The fiscal year may not be changed more than once in a
  797-2  24-month period.  (V.A.C.S. Art. 4477-7k, Sec. 5.01.)
  797-3        Sec. 24.153.  Annual audit.  Annually, the board shall have
  797-4  an audit made of the financial condition of the district.
  797-5  (V.A.C.S. Art. 4477-7k, Sec. 5.02.)
  797-6        Sec. 24.154.  Annual budget.  (a)  The board shall prepare
  797-7  and approve an annual budget for the district.
  797-8        (b)  The budget shall contain a complete financial statement,
  797-9  including a statement of:
 797-10              (1)  the outstanding obligations of the district;
 797-11              (2)  the amount of cash on hand to the credit of each
 797-12  fund of the district;
 797-13              (3)  the amount of money received by the district from
 797-14  all sources during the previous year;
 797-15              (4)  the amount of money available to the district from
 797-16  all sources during the ensuing year;
 797-17              (5)  the amount of the balances expected at the end of
 797-18  the year in which the budget is being prepared;
 797-19              (6)  the estimated amount of revenues and balances
 797-20  available to cover the proposed budget; and
 797-21              (7)  the estimated tax rate that will be required.
 797-22  (V.A.C.S. Art. 4477-7k, Sec. 5.03.)
 797-23        Sec. 24.155.  Amending budget.  After adoption, the annual
 797-24  budget may be amended on the board's approval.  (V.A.C.S. Art.
 797-25  4477-7k, Sec. 5.04.)
 797-26        Sec. 24.156.  Limitation on expenditures.  Money may not be
 797-27  spent for an expense not included in the annual budget or an
  798-1  amendment to it unless the board by order declares the expense to
  798-2  be necessary.  (V.A.C.S. Art. 4477-7k, Sec. 5.05.)
  798-3        Sec. 24.157.  Sworn statement.  As soon as practicable after
  798-4  the close of the fiscal year, the treasurer of the district shall
  798-5  prepare for the board a sworn statement of the amount of money that
  798-6  belongs to the district and an account of the disbursements of that
  798-7  money.  (V.A.C.S. Art. 4477-7k, Sec. 5.06.)
  798-8        Sec. 24.158.  Depository.  (a)  The board shall name one or
  798-9  more banks to serve as depository for district funds.
 798-10        (b)  District funds, other than those transmitted to a bank
 798-11  for payment of bonds issued by the district, shall be deposited as
 798-12  received with the depository bank and must remain on deposit.  This
 798-13  section does not limit the power of the board to invest the
 798-14  district's funds as provided by Section 24.159.
 798-15        (c)  Before the district deposits funds in a bank in an
 798-16  amount that exceeds the maximum amount secured by the Federal
 798-17  Deposit Insurance Corporation, the bank must execute a bond or
 798-18  provide other security in an amount sufficient to secure from loss
 798-19  the district's funds that exceed the amount secured by the Federal
 798-20  Deposit Insurance Corporation.  (V.A.C.S. Art. 4477-7k, Sec. 5.07.)
 798-21        Sec. 24.159.  Investments.  (a)  Funds of the district may be
 798-22  invested and reinvested by the board or its authorized
 798-23  representative in those investments specified by Article 836 or
 798-24  837, Revised Statutes, or the Public Funds Investment Act of 1987
 798-25  (Article 842a-2, Vernon's Texas Civil Statutes).
 798-26        (b)  Funds of the district may be placed in certificates of
 798-27  deposit of state or national banks or state or federal savings and
  799-1  loan associations within the state provided that funds are secured
  799-2  in the manner required for the security of the funds of counties of
  799-3  the state.
  799-4        (c)  The board by resolution may provide that an authorized
  799-5  representative of the district may invest and reinvest the funds of
  799-6  the district and provide for money to be withdrawn from the
  799-7  appropriate accounts of the district for investments on terms the
  799-8  board considers advisable.  (V.A.C.S. Art. 4477-7k, Sec. 5.08.)
  799-9        Sec. 24.160.  Payment of expenses.  (a)  The district's
 799-10  directors may pay all costs and expenses necessarily incurred in
 799-11  the creation, organization, and operation of the district, legal
 799-12  fees, and other incidental expenses and may reimburse any person
 799-13  for money advanced for those purposes.
 799-14        (b)  Payments may be made from money obtained from the sale
 799-15  of bonds issued by the district or out of taxes, fees, or other
 799-16  revenues of the district.  (V.A.C.S. Art. 4477-7k, Sec. 5.09.)
 799-17        Sec. 24.161.  Borrowing money.  The district may borrow money
 799-18  for any purpose authorized under this subchapter or any combination
 799-19  of those purposes.  (V.A.C.S. Art. 4477-7k, Sec. 5.10.)
 799-20        Sec. 24.162.  Authority to issue bonds.  The board may issue
 799-21  and sell bonds in the name of the district to acquire land and
 799-22  construct works, improvements, and waste disposal, treatment, and
 799-23  other facilities, plants, pipelines, equipment, and appliances as
 799-24  provided by this subchapter.  (V.A.C.S. Art. 4477-7k, Sec. 6.01.)
 799-25        Sec. 24.163.  Bond payment.  The board may provide for the
 799-26  payment of the principal of and interest on the bonds:
 799-27              (1)  from the levy and collection of property taxes on
  800-1  all taxable property within the district;
  800-2              (2)  by pledging all or part of the designated revenues
  800-3  from the ownership or operation of the district's works,
  800-4  improvements, and facilities; or
  800-5              (3)  from a combination of the sources listed by
  800-6  Subdivisions (1) and (2).  (V.A.C.S. Art. 4477-7k, Sec. 6.02.)
  800-7        Sec. 24.164.  Bond election.  (a)  Bonds may not be issued by
  800-8  the district until authorized by a majority vote of individuals
  800-9  qualified to vote and actually voting in the area within the
 800-10  boundaries of the district at an election called and held for that
 800-11  purpose.
 800-12        (b)  The board may order a bond election.  The order calling
 800-13  the election must state the nature and the date of the election,
 800-14  the hours during which the polls will be open, the location of the
 800-15  polling places, the amount of bonds to be authorized, and the
 800-16  maximum maturity of the bonds.
 800-17        (c)  Notice of a bond election must be given as provided by
 800-18  the Election Code.
 800-19        (d)  At an election to authorize bonds, the ballot must be
 800-20  printed to provide for voting for or against the issuance of bonds
 800-21  and the levy of property taxes for payment of the bonds.
 800-22        (e)  The board shall canvass the returns and declare the
 800-23  results of the election.  If a majority of the votes cast at the
 800-24  election favor the issuance of the bonds, the bonds may be issued
 800-25  by the board, but if a majority of the votes cast at the election
 800-26  do not favor issuance of the bonds, the bonds may not be issued.
 800-27  (V.A.C.S. Art. 4477-7k, Sec. 6.03.)
  801-1        Sec. 24.165.  Terms; form.  (a)  The district may issue its
  801-2  bonds in various series or issues.
  801-3        (b)  Bonds may mature serially or otherwise not more than 50
  801-4  years after the date of issuance and shall bear interest at a rate
  801-5  permitted by state law.
  801-6        (c)  The district's bonds and interest coupons, if any, are
  801-7  investment securities under the terms of Chapter 8, Business &
  801-8  Commerce Code, and may be issued registrable as to principal or as
  801-9  to principal and interest or may be issued in book entry form and
 801-10  may be made redeemable before maturity at the option of the
 801-11  district or may contain a mandatory redemption provision.
 801-12        (d)  The district's bonds may be issued in the form,
 801-13  denominations, and manner and under the terms, conditions, and
 801-14  details and shall be signed and executed as provided by the board
 801-15  in the resolution or order authorizing the bonds.  (V.A.C.S. Art.
 801-16  4477-7k, Sec. 6.04.)
 801-17        Sec. 24.166.  Bond provisions.  (a)  In the orders or
 801-18  resolutions authorizing the issuance of bonds, including refunding
 801-19  bonds, the board may provide for the flow of funds, the
 801-20  establishment and maintenance of the interest and sinking fund, the
 801-21  reserve fund, and other funds and may make additional covenants
 801-22  with respect to the bonds and the pledged fees.
 801-23        (b)  The orders or resolutions of the board authorizing the
 801-24  issuance of bonds may prohibit the further issuance of bonds or
 801-25  other obligations payable from the pledged fees or may reserve the
 801-26  right to issue additional bonds to be secured by a pledge of and
 801-27  payable from the fees on a parity with or subordinate to the pledge
  802-1  in support of the bonds being issued.
  802-2        (c)  The orders or resolutions of the board issuing bonds may
  802-3  contain other provisions and covenants as the board may determine.
  802-4        (d)  The board may adopt and have executed any other
  802-5  proceedings or instruments necessary and convenient in the issuance
  802-6  of bonds.  (V.A.C.S. Art. 4477-7k, Sec. 6.05.)
  802-7        Sec. 24.167.  Approval and registration.  (a)  Bonds issued
  802-8  by the district and the records relating to their issuance must be
  802-9  submitted to the attorney general for examination as to their
 802-10  validity.
 802-11        (b)  If the attorney general finds that the bonds have been
 802-12  authorized in accordance with the law, the attorney general shall
 802-13  approve them, and the comptroller of public accounts shall register
 802-14  the bonds.
 802-15        (c)  Following approval and registration, the bonds are
 802-16  incontestable and are binding obligations according to their terms.
 802-17  (V.A.C.S. Art. 4477-7k, Sec. 6.06.)
 802-18        Sec. 24.168.  Refunding bonds.  (a)  Refunding bonds of the
 802-19  district may be issued to refund and pay off an outstanding
 802-20  indebtedness the district has issued or assumed.
 802-21        (b)  The bonds must be issued in the manner provided by
 802-22  Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
 802-23  (Article 717k-3, Vernon's Texas Civil Statutes).
 802-24        (c)  The refunding bonds may be sold and the proceeds applied
 802-25  to the payment of outstanding indebtedness or may be exchanged in
 802-26  whole or in part for not less than a similar principal amount of
 802-27  outstanding indebtedness.  If the refunding bonds are to be sold
  803-1  and the proceeds applied to the payment of outstanding
  803-2  indebtedness, the refunding bonds must be issued and payments made
  803-3  in the manner provided by Chapter 503, Acts of the 54th
  803-4  Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
  803-5  Civil Statutes).  (V.A.C.S. Art. 4477-7k, Sec. 6.07.)
  803-6        Sec. 24.169.  Legal investments, security for deposits.
  803-7  (a)  District bonds are legal and authorized investments for:
  803-8              (1)  a bank;
  803-9              (2)  a savings bank;
 803-10              (3)  a trust company;
 803-11              (4)  a savings and loan association;
 803-12              (5)  an insurance company;
 803-13              (6)  a fiduciary;
 803-14              (7)  a trustee;
 803-15              (8)  a guardian; and
 803-16              (9)  the sinking fund of a municipality, county, school
 803-17  district, or other political subdivision of the state and other
 803-18  public funds of the state and its agencies, including the permanent
 803-19  school fund.
 803-20        (b)  District bonds may secure deposits of public funds of
 803-21  the state or a municipality, county, school district, or other
 803-22  political subdivision of the state.  The bonds are lawful and
 803-23  sufficient security for deposits to the extent of their value, if
 803-24  accompanied by all unmatured coupons.  (V.A.C.S. Art. 4477-7k, Sec.
 803-25  6.08.)
 803-26        Sec. 24.170.  Mandamus by bondholders.  In addition to all
 803-27  other rights and remedies provided by law, if the district defaults
  804-1  in the payment of principal, interest, or redemption price on its
  804-2  bonds when due or if it fails to make payments into any fund or
  804-3  funds created in the orders or resolutions authorizing the issuance
  804-4  of the bonds or defaults in the observation or performance of any
  804-5  other covenants, conditions, or obligations set forth in the orders
  804-6  or resolutions authorizing the issuance of its bonds, the owners of
  804-7  any of the bonds are entitled to a writ of mandamus issued by a
  804-8  court of competent jurisdiction compelling and requiring the
  804-9  district and its officials to observe and perform the covenants,
 804-10  obligations, or conditions prescribed in the orders or resolutions
 804-11  authorizing the issuance of the district's bonds.  (V.A.C.S. Art.
 804-12  4477-7k, Sec. 6.09.)
 804-13        Sec. 24.171.  Application of other laws.  Bonds of the
 804-14  district are considered bonds under the Bond Procedures Act of 1981
 804-15  (Article 717k-6, Vernon's Texas Civil Statutes).  (V.A.C.S. Art.
 804-16  4477-7k, Sec. 6.10.)
 804-17        Sec. 24.172.  Tax status of bonds.  Since the district
 804-18  created under this chapter is a public entity performing an
 804-19  essential public function, bonds issued by the district, any
 804-20  transaction relating to the bonds, and profits made in the sale of
 804-21  the bonds are free from taxation by the state or by a municipality,
 804-22  county, special district, or other political subdivision of the
 804-23  state.  (V.A.C.S. Art. 4477-7k, Sec. 7.01.)
 804-24        Sec. 24.173.  Levy of taxes.  (a)  The board may annually
 804-25  levy taxes in the district in an amount necessary to pay the
 804-26  principal of and interest on bonds issued by the district and the
 804-27  expense of assessing and collecting taxes.
  805-1        (b)  The district may levy and collect a maintenance and
  805-2  operating tax in an amount not to exceed three cents on each $100
  805-3  of assessed valuation of property in the district to pay
  805-4  maintenance and operating expenses of the district.  (V.A.C.S. Art.
  805-5  4477-7k, Sec. 7.02.)
  805-6        Sec. 24.174.  Board authority.  (a)  The board may levy taxes
  805-7  for the entire year in which the district is created.
  805-8        (b)  The board shall levy taxes on all property within the
  805-9  boundaries of the district subject to district taxation.  (V.A.C.S.
 805-10  Art. 4477-7k, Sec. 7.03.)
 805-11        Sec. 24.175.  Tax rate.  In setting the tax rate, the board
 805-12  shall take into consideration the income of the district from
 805-13  sources other than taxation.  On determination of the amount of tax
 805-14  required to be levied, the board shall make the levy and certify it
 805-15  to the tax collector.  (V.A.C.S. Art. 4477-7k, Sec. 7.04.)
 805-16        Sec. 24.176.  Tax appraisal, assessment, and collection.
 805-17  (a)  The Tax Code governs the appraisal, assessment, and collection
 805-18  of district taxes.
 805-19        (b)  The board may provide for the appointment of a tax
 805-20  collector for the district or may contract for the collection of
 805-21  taxes as provided by the Tax Code.  (V.A.C.S. Art. 4477-7k, Sec.
 805-22  7.05.)
 805-23        Sec. 24.177.  Annexation of territory.  The board may annex
 805-24  the territory within the boundaries of an adjacent county in the
 805-25  manner provided by Sections 24.178-24.180.  (V.A.C.S. Art. 4477-7k,
 805-26  Sec. 8.01.)
 805-27        Sec. 24.178.  Petition.  To initiate annexation proceedings,
  806-1  the commissioners court of the adjacent county must petition the
  806-2  board requesting the board to call an annexation election for the
  806-3  territory within the petitioner's county.  The petition must be in
  806-4  writing and be endorsed by a majority of the members of the
  806-5  commissioners court.  (V.A.C.S. Art. 4477-7k, Sec. 8.02.)
  806-6        Sec. 24.179.  Hearing.  (a)  On receipt of the petition, the
  806-7  board shall set a time and place to hold a hearing on the petition.
  806-8  The board shall set a date for the hearing that is not later than
  806-9  the 20th day after the date on which the board receives the
 806-10  petition.
 806-11        (b)  The board shall publish notice of the place, time, date,
 806-12  and purpose of the hearing in one or more newspapers with general
 806-13  circulation in the district and in the county to be annexed.  This
 806-14  notice is in addition to the notice required under the open
 806-15  meetings law, Chapter 271, Acts of the 60th Legislature, Regular
 806-16  Session, 1967 (Article 6252-17, Vernon's Texas Civil Statutes).
 806-17        (c)  Any person may testify at the hearing for or against
 806-18  annexation of the county to the district.
 806-19        (d)  At the conclusion of the hearing, the board shall
 806-20  determine if an election should be held in the county to be annexed
 806-21  to determine if the county should be annexed to the district.
 806-22        (e)  Annexation of a county is final when approved by a
 806-23  majority of the voters at an election held in the county to be
 806-24  annexed.  If the district has outstanding debts or taxes, the
 806-25  voters in the election to approve the annexation must also
 806-26  determine if the annexed county will assume its proportion of the
 806-27  debts or taxes if added to the district.  An election in the
  807-1  existing district accepting the addition of the county is not
  807-2  required.
  807-3        (f)  The election ballots shall be printed to provide for
  807-4  voting for or against the following, as applicable:
  807-5              (1)  "Adding (description of county to be added) to the
  807-6  Upper Sabine Valley Solid Waste Management District."
  807-7              (2)  "(Description of county to be added) assuming its
  807-8  proportionate share of the outstanding debts and taxes of the Upper
  807-9  Sabine Valley Solid Waste Management District, if it is added to
 807-10  the district."
 807-11        (g)  The election shall be held after the 45th day and on or
 807-12  before the 60th day after the date the election is ordered.  The
 807-13  election shall be ordered and notice of the election shall be given
 807-14  in accordance with the Election Code.   Section 41.001(a), Election
 807-15  Code, does not apply to an election held under this section.
 807-16        (h)  The board shall file a copy of the election results with
 807-17  the commission.  (V.A.C.S. Art. 4477-7k, Sec. 8.03.)
 807-18        Sec. 24.180.  Appointment of directors.  (a)  The
 807-19  commissioners court of the annexed county shall appoint two
 807-20  directors to serve on the district's board of directors.
 807-21        (b)  The newly appointed directors shall draw lots to
 807-22  determine their initial terms of office.  One new director shall
 807-23  serve an initial term that coincides with the terms of district
 807-24  directors that expire within two years and the other director shall
 807-25  serve a term that expires within two to four years.  (V.A.C.S. Art.
 807-26  4477-7k, Sec. 8.04.)
 807-27        Sec. 24.181.  Exclusion from district.  (a)  At any time
  808-1  before the district incurs bonded or other long term indebtedness,
  808-2  the commissioners court of a county within the district may
  808-3  petition the board to hold an election within the county to
  808-4  determine if a majority of voters of that county want to exclude
  808-5  the county from the district.   On receipt of the petition, the
  808-6  board shall enter an order authorizing the commissioners court to
  808-7  call the election.
  808-8        (b)  After the issuance of bonds or other long term
  808-9  indebtedness, a county commissioners court may petition the board
 808-10  to hold an election to determine if the county should be excluded
 808-11  from the district.  Before authorizing the commissioners court to
 808-12  call an election for this purpose, the board must obtain adequate
 808-13  legal and financial assurances that the county will assume and pay
 808-14  to the district its proportionate share, based on assessed
 808-15  valuation of taxable property in the county and district, of the
 808-16  district's outstanding debt if the county withdraws from the
 808-17  district.  After obtaining assurances the board determines to be
 808-18  adequate, the board shall enter an order authorizing the
 808-19  commissioners court of that county to call an election in that
 808-20  county to determine if the county should be excluded from the
 808-21  district.  (V.A.C.S. Art. 4477-7k, Sec. 9.01.)
 808-22        Sec. 24.182.  Election.  (a)  Exclusion of a county is final
 808-23  when approved by a majority of the voters at an election held in
 808-24  the county to be excluded.  If the district has outstanding bonds
 808-25  or other long term obligations, the voters in the election to
 808-26  approve the exclusion must also determine if the excluded county
 808-27  will assume a duty to pay its proportion of the district's
  809-1  outstanding indebtedness.
  809-2        (b)  The ballots for the election shall be printed to provide
  809-3  for voting for or against the proposition, as applicable:  "The
  809-4  exclusion of __________ County from the Upper Sabine Valley Solid
  809-5  Waste Management District and assumption by the county of a duty to
  809-6  pay its proportionate share of the outstanding indebtedness of the
  809-7  district."
  809-8        (c)  The election shall be held after the 45th day and on or
  809-9  before the 60th day after the date the election is ordered.  The
 809-10  election shall be ordered and notice of the election shall be given
 809-11  in accordance with the Election Code.   Section 41.001(a), Election
 809-12  Code, does not apply to an election held under this section.
 809-13        (d)  The board shall file a copy of the election results with
 809-14  the commission.  (V.A.C.S. Art. 4477-7k, Sec. 9.02.)
 809-15        Sec. 24.183.  Continued obligation for indebtedness.  The
 809-16  exclusion of a county under Section 24.182(b) does not relieve the
 809-17  district of its obligation to perform and observe the covenants and
 809-18  obligations or the conditions prescribed by the orders or
 809-19  resolution authorizing the issuance of the district's bonds.
 809-20  (V.A.C.S. Art. 4477-7k, Sec. 9.03.)
 809-21            (Sections 24.184-24.200 reserved for expansion)
 809-22     SUBCHAPTER C.  VAN ZANDT COUNTY WASTE MANAGEMENT DISTRICT ACT
 809-23        Sec. 24.201.  Purpose.  The purpose of this subchapter is to
 809-24  establish an instrumentality for developing and carrying out for
 809-25  Van Zandt County a regional water quality management program that
 809-26  includes a waste disposal system and regulation of waste disposal.
 809-27  (Sec. 1.01, Ch. 1256, 71st Leg., R.S., 1989.)
  810-1        Sec. 24.202.  Findings and Declaration of Policy.  (a)  The
  810-2  legislature finds that:
  810-3              (1)  the quality of water in Van Zandt County is
  810-4  materially affected by the disposal of waste throughout the county;
  810-5              (2)  a countywide effort to study water pollution, plan
  810-6  corrective and preventive measures, provide coordinated facilities
  810-7  for waste disposal, and regulate waste disposal is far more
  810-8  effective than efforts on a smaller scale;
  810-9              (3)  solid waste, as well as other waste, may impair
 810-10  water quality, including by seepage or drainage; and
 810-11              (4)  creation of the Van Zandt County Waste Disposal
 810-12  District would advance the established policy of the state to
 810-13  maintain the quality of the water in the state consistent with:
 810-14                    (A)  the public health and public enjoyment;
 810-15                    (B)  the propagation and protection of
 810-16  terrestrial and aquatic life;
 810-17                    (C)  the operation of existing industries; and
 810-18                    (D)  the economic development of the state.
 810-19        (b)  The legislature finds that this subchapter is in
 810-20  compliance with Sections 59(d) and (e) of Article XVI of the Texas
 810-21  Constitution and that the legislature has the power and authority
 810-22  to enact this subchapter.
 810-23        (c)  The legislature finds that all of the area included in
 810-24  the district is benefitted by the exercise of the power conferred
 810-25  by this subchapter.  (Sec. 1.02, Ch. 1256, 71st Leg., R.S., 1989.)
 810-26        Sec. 24.203.  Definitions.  In this subchapter:
 810-27              (1)  "Board" means the board of directors of the
  811-1  district.
  811-2              (2)  "County" means Van Zandt County, Texas.
  811-3              (3)  "Director" means a member of the board.
  811-4              (4)  "Disposal system" means a system for disposing of
  811-5  waste, including sewer systems and treatment facilities.
  811-6              (5)  "District" means the Van Zandt County Waste
  811-7  Disposal District created under this subchapter.
  811-8              (6)  "Local government" means an incorporated
  811-9  municipality, a county, a river authority, or a water or other
 811-10  special district or authority acting under Article III, Sections
 811-11  52(b)(1) and (2), or Article XVI, Section 59, of the Texas
 811-12  Constitution.
 811-13              (7)  "Municipal solid waste" means solid waste
 811-14  resulting from or incidental to municipal, community, commercial,
 811-15  institutional, and recreational activities, including garbage,
 811-16  rubbish, ashes, street cleanings, dead animals, abandoned
 811-17  automobiles, and all other solid waste other than industrial solid
 811-18  waste or hazardous waste.
 811-19              (8)  "Outside the district" means the area contained in
 811-20  counties adjacent to the district.
 811-21              (9)  "Person" means an individual, public or private
 811-22  corporation, political subdivision, governmental agency,
 811-23  municipality, copartnership, association, firm, trust, estate, or
 811-24  any other legal entity.
 811-25              (10)  "Recreational waste" means waterborne liquid,
 811-26  gaseous, or solid substances that emanate from a public or private
 811-27  park, beach, or recreational area.
  812-1              (11)  "Sewage" means waterborne human or animal waste.
  812-2              (12)  "Sewer system" means pipelines, conduits, canals,
  812-3  pumping stations, force mains, and all other constructions,
  812-4  devices, and appurtenant appliances used to transport waste.
  812-5              (13)  "Solid waste" means any putrescible or
  812-6  nonputrescible discarded material, including garbage and refuse.
  812-7              (14)  "Treatment facility" means any plant, disposal
  812-8  field, lagoon, incinerator, area devoted to sanitary landfills, or
  812-9  other facility installed for the purpose of treating, neutralizing,
 812-10  or stabilizing waste.
 812-11              (15)  "Waste" means sewage, municipal solid waste, or
 812-12  recreational waste.
 812-13              (16)  "Water" means groundwater, percolating or
 812-14  otherwise, lakes, bays, ponds, springs, rivers, streams, creeks,
 812-15  and all other bodies of surface water, natural or artificial, that
 812-16  are wholly or partially within the district.
 812-17              (17)  "Water pollution" means the alteration of the
 812-18  physical, chemical, or biological quality of, or the contamination
 812-19  of, water that renders the water harmful, detrimental, or injurious
 812-20  to humans, animal life, vegetation, or property, or to public
 812-21  health, safety, or welfare, or impairs the usefulness or the public
 812-22  enjoyment of the water for any lawful or reasonable purpose.  (Sec.
 812-23  1.03, Ch. 1256, 71st Leg., R.S., 1989.)
 812-24        Sec. 24.204.  Creation of District.  Pursuant to Article XVI,
 812-25  Section 59, of the Texas Constitution, a conservation and
 812-26  reclamation district to be known as the Van Zandt County Waste
 812-27  Disposal District is created as a governmental agency and body
  813-1  politic and corporate of the state.  (Sec. 2.01, Ch. 1256, 71st
  813-2  Leg., R.S., 1989.)
  813-3        Sec. 24.205.  Description.  The district's territory consists
  813-4  of the area within the Van Zandt County boundaries.  (Sec. 2.02,
  813-5  Ch. 1256, 71st Leg., R.S., 1989.)
  813-6        Sec. 24.206.  Appointment of Temporary Directors.  (a)  On
  813-7  the effective date of this subchapter, the commissioners court of
  813-8  the county shall appoint seven persons to serve as temporary
  813-9  directors of the district.  Four of the persons shall be
 813-10  representatives from the municipalities within the county and three
 813-11  shall be representatives from the unincorporated areas of the
 813-12  county.
 813-13        (b)  Members of the temporary board serve until the persons
 813-14  elected as directors under Section 24.207 have been elected and
 813-15  have qualified for office.
 813-16        (c)  A vacancy on the temporary board shall be filled by
 813-17  appointment of the remaining members of the temporary board.  (Sec.
 813-18  2.03, Ch. 1256, 71st Leg., R.S., 1989.)
 813-19        Sec. 24.207.  Confirmation and Directors' Election.  (a)  The
 813-20  temporary directors shall call and hold an election within the
 813-21  boundaries of the proposed district to determine if the proposed
 813-22  district will be created and, if created, to elect directors for
 813-23  the district.  The election shall be held not later than six months
 813-24  after the effective date of this subchapter.
 813-25        (b)  A person who desires to have the person's name printed
 813-26  on the ballot as a candidate for director of the district shall
 813-27  file a petition with the temporary board before the 35th day
  814-1  preceding the date of the election.
  814-2        (c)  Section 41.001(a), Election Code, does not apply to a
  814-3  confirmation and initial directors' election.  (Sec. 2.04, Ch.
  814-4  1256, 71st Leg., R.S., 1989.)
  814-5        Sec. 24.208.  Notice of Election.  Notice of the confirmation
  814-6  and directors' election shall state the day and places for holding
  814-7  the election, the proposition to be voted on, and the candidates
  814-8  for director.  The temporary board shall publish the notice of the
  814-9  election one time in one or more newspapers of general circulation
 814-10  in the proposed district.  The notice must be published before the
 814-11  35th day before the date set for the election.  (Sec. 2.05, Ch.
 814-12  1256, 71st Leg., R.S., 1989.)
 814-13        Sec. 24.209.  Ballot Proposition.  The ballot for the
 814-14  election shall be printed to permit voting for or against the
 814-15  proposition:  "The creation of the Van Zandt County Waste Disposal
 814-16  District."  The ballot must include the names of the persons who
 814-17  have filed as candidates for director.  A voter is entitled to vote
 814-18  for seven candidates for director.  (Sec. 2.06, Ch. 1256, 71st
 814-19  Leg., R.S., 1989.)
 814-20        Sec. 24.210.  Canvassing Returns.  (a)  Immediately after the
 814-21  confirmation and directors' election, the presiding judge of each
 814-22  polling place shall deliver returns of the election to the
 814-23  temporary board, and the temporary board shall canvass the returns
 814-24  and declare the result.
 814-25        (b)  If a majority of the votes cast at the election favor
 814-26  creation of the district, the temporary board shall declare the
 814-27  district created and shall enter the results in its minutes.  If a
  815-1  majority of the votes cast at the election are against the creation
  815-2  of the district, the temporary board shall declare that the
  815-3  creation of the district was defeated and shall enter the results
  815-4  in its minutes.  The temporary board shall file a copy of the
  815-5  election results with the commission.
  815-6        (c)  If a majority of the voters at the election approve the
  815-7  creation of the district, the temporary board shall declare the
  815-8  seven candidates who received the highest number of votes to be
  815-9  elected directors for the district.  If two or more candidates tie
 815-10  for the seventh highest vote for a director position, the
 815-11  commissioners court shall select the seventh director by lot from
 815-12  those tying for the position.
 815-13        (d)  After the directors elected at the confirmation and
 815-14  directors' election have qualified for office, they shall draw lots
 815-15  to determine their terms of office.  Two of the directors serve
 815-16  terms that expire at the first regular meeting of the board in May
 815-17  following the second directors' election, two directors serve terms
 815-18  that expire at the first regular meeting of the board in May
 815-19  following the third directors' election, and the remaining three
 815-20  directors serve terms that expire at the first regular meeting of
 815-21  the board in May following the fourth directors' election.
 815-22        (e)  If a majority of the voters at the election vote against
 815-23  the creation of the district, the temporary board may call and hold
 815-24  additional confirmation and directors' elections, but another
 815-25  election to confirm creation of the district may not be called and
 815-26  held by the temporary board before the first anniversary of the
 815-27  most recent confirmation and directors' election.  If the district
  816-1  is not created within five years after the effective date of this
  816-2  subchapter, this subchapter expires.  (Sec. 2.07, Ch. 1256, 71st
  816-3  Leg., R.S., 1989.)
  816-4        Sec. 24.211.  Bond Proposition at Creation Election.  At an
  816-5  election to confirm creation of the district, the temporary board
  816-6  may include a separate proposition on the ballot to approve the
  816-7  issuance by the district of bonds payable wholly or partially from
  816-8  property taxes.  The notice of the election under Section 24.208
  816-9  must state the bond proposition that is to appear on the ballot.
 816-10  The ballot shall be printed to permit voting for or against the
 816-11  proposition:  "The issuance of bonds in the amount of $    (INSERT
 816-12  AMOUNT)    payable wholly (or partially) from property taxes for
 816-13  (STATE PURPOSE FOR WHICH BOND PROCEEDS TO BE USED) and the levy of
 816-14  taxes in payment of those bonds."  If a majority of the voters at
 816-15  the election approve the bond proposition, the temporary board
 816-16  shall declare the result and enter it in its minutes, and the
 816-17  district, if created, may issue the bonds in the amount authorized
 816-18  for the purpose authorized and may levy and collect taxes necessary
 816-19  to pay the principal of and interest on the bonds.  If a majority
 816-20  of the voters at the election do not approve the bond proposition,
 816-21  the temporary board shall declare the result and enter it in its
 816-22  minutes, and the district, if created, may not issue the bonds
 816-23  payable in whole or in part by property taxes.  The temporary board
 816-24  shall file a copy of the bond election results with the commission.
 816-25  (Sec. 2.08, Ch. 1256, 71st Leg., R.S., 1989.)
 816-26        Sec. 24.212.  Board of Directors.  (a)  The district is
 816-27  governed by a board of directors composed of seven members, who are
  817-1  elected as provided by this subchapter.
  817-2        (b)  One director shall be elected from each of the four
  817-3  commissioners precincts in the county, and three directors shall be
  817-4  elected from the district at large.  (Sec. 3.01, Ch. 1256, 71st
  817-5  Leg., R.S., 1989.)
  817-6        Sec. 24.213.  Qualifications of Directors.  (a)  To serve as
  817-7  a director, a person must be:
  817-8              (1)  at least 18 years old;
  817-9              (2)  a qualified voter; and
 817-10              (3)  a resident of the area within the boundaries of
 817-11  the district.
 817-12        (b)  In addition to the qualifications required by Subsection
 817-13  (a) of this section, a person who is elected from a commissioners
 817-14  precinct or who is appointed to fill a vacancy for a commissioners
 817-15  precinct must be a resident of that commissioners precinct.
 817-16        (c)  Each director must execute a bond in the amount of
 817-17  $5,000 with a corporate surety authorized to do business in this
 817-18  state conditioned on the faithful performance of the director's
 817-19  duties.  (Sec. 3.02, Ch. 1256, 71st Leg., R.S., 1989.)
 817-20        Sec. 24.214.  Term of Office.  A director holds office for a
 817-21  term of four years and serves until the director's successor is
 817-22  elected and has qualified.  (Sec. 3.03, Ch. 1256, 71st Leg., R.S.,
 817-23  1989.)
 817-24        Sec. 24.215.  Directors' Elections.  Section 41.003, Election
 817-25  Code, does not apply to a directors' election.  (Sec. 3.03A, Ch.
 817-26  1256, 71st Leg., R.S., 1989.)
 817-27        Sec. 24.216.  Election of Directors.  (a)  On the first
  818-1  Tuesday after the first Monday in November in each even-numbered
  818-2  year, an election shall be held in the district to elect the
  818-3  appropriate number of directors to the board.
  818-4        (b)  A person who desires to have his name printed on the
  818-5  ballot at a directors' election as a candidate for director shall
  818-6  file a petition with the secretary of the district before the 30th
  818-7  day preceding the date of the election.  The petition must specify
  818-8  the commissioners precinct the candidate wishes to represent or
  818-9  specify that the candidate wishes to represent the district at
 818-10  large.  (Sec. 3.04, Ch. 1256, 71st Leg., R.S., 1989.)
 818-11        Sec. 24.217.  Beginning of Director's Term.  A director shall
 818-12  take office at the first regular meeting of the board in November
 818-13  following his election to the board.  (Sec. 3.05, Ch. 1256, 71st
 818-14  Leg., R.S., 1989.)
 818-15        Sec. 24.218.  Vacancy on Board.  A vacancy on the board shall
 818-16  be filled by appointment of the remaining members of the board
 818-17  until the next election of directors for the district.  If that
 818-18  position is not scheduled to be filled at that election, the person
 818-19  elected to fill the position serves only for the remainder of the
 818-20  unexpired term.  (Sec. 3.06, Ch. 1256, 71st Leg., R.S., 1989.)
 818-21        Sec. 24.219.  Oath.  Each director shall take the
 818-22  constitutional oath of office required of state officers.  (Sec.
 818-23  3.07, Ch. 1256, 71st Leg., R.S., 1989.)
 818-24        Sec. 24.220.  Organization of Board.  (a)  Annually, the
 818-25  board shall hold a regular meeting in November at the district
 818-26  office and shall organize by electing from the members of the board
 818-27  one person to serve as chairman, one person to serve as
  819-1  vice-chairman, and one person to serve as secretary.
  819-2        (b)  A person selected to serve as chairman, vice-chairman,
  819-3  or secretary serves in that capacity for a term of one year.
  819-4        (c)  The chairman shall preside over meetings of the board,
  819-5  and in his absence the vice-chairman shall preside.
  819-6        (d)  The chairman, vice-chairman, and secretary shall perform
  819-7  the duties and may exercise the powers specifically given them by
  819-8  this subchapter or by orders of the board.  (Sec. 3.08, Ch. 1256,
  819-9  71st Leg., R.S., 1989.)
 819-10        Sec. 24.221.  Meetings and Actions of the Board.  (a)  The
 819-11  board shall meet at least one time each month and may meet at any
 819-12  other time provided by its bylaws.
 819-13        (b)  A majority of the members of the board constitute a
 819-14  quorum for the transaction of business of the district.
 819-15        (c)  Except as otherwise provided by this subchapter, the
 819-16  vote of a majority of directors is required for board action.
 819-17        (d)  The board shall adopt bylaws at its first meeting or as
 819-18  soon after the first meeting as practicable.  The board's bylaws
 819-19  must prescribe the powers, duties, and procedures for removal from
 819-20  a board office.  (Sec. 3.09, Ch. 1256, 71st Leg., R.S., 1989.)
 819-21        Sec. 24.222.  Other Officers.  (a)  The board shall appoint a
 819-22  treasurer and an attorney for the district.
 819-23        (b)  The persons appointed under this section are entitled to
 819-24  the compensation provided by the district's budget.
 819-25        (c)  The person appointed as treasurer shall execute a bond
 819-26  in the amount determined by the board, payable to the district,
 819-27  conditioned on the faithful performance of the treasurer's duties.
  820-1  The district shall pay for the bond.  (Sec. 3.10, Ch. 1256, 71st
  820-2  Leg., R.S., 1989.)
  820-3        Sec. 24.223.  Interest in Contract.  A director who is
  820-4  financially interested in a contract to be executed by the district
  820-5  for the purchase of property or the construction of facilities
  820-6  shall disclose that fact to the other directors and may not vote on
  820-7  the acceptance of the contract.  (Sec. 3.11, Ch. 1256, 71st Leg.,
  820-8  R.S., 1989.)
  820-9        Sec. 24.224.  Director's Compensation.  (a)  A director is
 820-10  entitled to receive $25 a day and reimbursement for actual and
 820-11  necessary expenses incurred:
 820-12              (1)  for each day the director attends meetings of the
 820-13  board; and
 820-14              (2)  for each day the director attends to the business
 820-15  of the district that is authorized by board resolution or motion.
 820-16        (b)  A director is not entitled to receive a per diem
 820-17  allowance for more than 120 days in any one calendar year.  (Sec.
 820-18  3.12, Ch. 1256, 71st Leg., R.S., 1989.)
 820-19        Sec. 24.225.  General Manager; Personnel.  (a)  The board
 820-20  shall employ a general manager for a term and salary set by the
 820-21  board.
 820-22        (b)  The general manager is the chief executive officer of
 820-23  the district.   Under policies established by the board, the
 820-24  general manager is responsible to the board for:
 820-25              (1)  administering the directives of the board;
 820-26              (2)  keeping the district's records, including minutes
 820-27  of the board's meetings;
  821-1              (3)  coordinating with state, federal, and local
  821-2  agencies;
  821-3              (4)  developing plans and programs for the board's
  821-4  approval;
  821-5              (5)  hiring, supervising, training, and discharging the
  821-6  district's employees;
  821-7              (6)  contracting for or retaining technical,
  821-8  scientific, legal, fiscal, and other professional services; and
  821-9              (7)  performing any other duties assigned to the
 821-10  general manager by the board.
 821-11        (c)  The board may discharge the general manager on a
 821-12  majority vote of all the qualified directors.  (Sec. 3.13, Ch.
 821-13  1256, 71st Leg., R.S., 1989.)
 821-14        Sec. 24.226.  Directors' and Employees' Bonds.  (a)  The
 821-15  general manager and each employee of the district charged with the
 821-16  collection, custody, or payment of any money of the district shall
 821-17  execute a fidelity bond.  The board shall approve the form, amount,
 821-18  and surety of the bond.
 821-19        (b)  The district shall pay the premiums on the employees'
 821-20  bonds under this section and the directors' bonds under Section
 821-21  24.213(c).  (Sec. 3.14, Ch. 1256, 71st Leg., R.S., 1989.)
 821-22        Sec. 24.227.  Principal Office.  The district shall maintain
 821-23  its principal office inside the district's boundaries.  (Sec. 3.15,
 821-24  Ch. 1256, 71st Leg., R.S., 1989.)
 821-25        Sec. 24.228.  Records.  (a)  The district shall keep complete
 821-26  and accurate accounts of its business transactions in accordance
 821-27  with generally accepted methods of accounting.
  822-1        (b)  The district shall keep complete and accurate minutes of
  822-2  its meetings.
  822-3        (c)  The district shall keep its accounts, contracts,
  822-4  documents, minutes, and other records at its principal office.
  822-5        (d)  Neither the board nor its employees shall disclose any
  822-6  records that it has relating to trade secrets or economics of
  822-7  operation of industries.  (Sec. 3.16, Ch. 1256, 71st Leg., R.S.,
  822-8  1989.)
  822-9        Sec. 24.229.  Contracts.  The board may enter into contracts
 822-10  as provided by this subchapter, and those contracts shall be
 822-11  executed by the board in the name of the district.  (Sec. 3.17, Ch.
 822-12  1256, 71st Leg., R.S., 1989.)
 822-13        Sec. 24.230.  Supervision of District.  The district is
 822-14  subject to the continuing right of supervision by the state, to be
 822-15  exercised by the commission under this subchapter and the Water
 822-16  Code.  (Sec. 3.18, Ch. 1256, 71st Leg., R.S., 1989.)
 822-17        Sec. 24.231.  Suits; Payment of Judgments.  (a)  The district
 822-18  may, through its board, sue and be sued in any court of this state
 822-19  in the name of the district.  Service of process in a suit may be
 822-20  had by serving the general manager.
 822-21        (b)  The courts of this state shall take judicial notice of
 822-22  the creation of the district.
 822-23        (c)  A court of this state that renders a money judgment
 822-24  against the district may require the board to pay the judgment from
 822-25  money in the district depository that is not dedicated to the
 822-26  payment of any indebtedness of the district.  (Sec. 3.19, Ch. 1256,
 822-27  71st Leg., R.S., 1989.)
  823-1        Sec. 24.232.  Seal.  The board shall adopt a seal for the
  823-2  district and may alter the form of the seal from time to time.
  823-3  (Sec. 3.20, Ch. 1256, 71st Leg., R.S., 1989.)
  823-4        Sec. 24.233.  General Powers and Duties.  (a)  The district
  823-5  shall administer and enforce this subchapter and  shall use its
  823-6  facilities and powers to accomplish the purposes of this
  823-7  subchapter.
  823-8        (b)  After notice and hearing, the board may adopt rules
  823-9  necessary to carry out this subchapter.  The board shall adopt
 823-10  rules providing procedures for giving notice and holding hearings
 823-11  before the board.
 823-12        (c)  The district may prepare and adopt plans for and may
 823-13  purchase, construct, acquire, own, operate, maintain, repair,
 823-14  improve, and extend inside and outside the boundaries of the
 823-15  district any works, improvements, waste disposal, treatment, and
 823-16  other facilities, plants, pipelines, equipment, and appliances
 823-17  necessary to collect, transport, process, dispose of, and control
 823-18  waste within the district.
 823-19        (d)  The district shall acquire all necessary permits as
 823-20  required by this code and other state law and that are necessary to
 823-21  carry out this subchapter.
 823-22        (e)  The district shall conduct studies and research for the
 823-23  control of water pollution and waste disposal within the district,
 823-24  shall cooperate with the department and commission in any studies,
 823-25  and shall use the results of those studies.
 823-26        (f)  The regulatory powers of the district under this
 823-27  subchapter extend to every person.
  824-1        (g)  Except as expressly limited by this subchapter, the
  824-2  district has all powers, rights, and privileges necessary and
  824-3  convenient for accomplishing the purposes of this subchapter
  824-4  conferred by general law on a conservation and reclamation district
  824-5  created pursuant to Article XVI, Section 59, of the Texas
  824-6  Constitution.
  824-7        (h)  Subject only to the authority vested by general law, and
  824-8  particularly Chapters 10 and 20, the district may control water
  824-9  pollution and waste disposal within the district.
 824-10        (i)  The powers granted to the district by this subchapter
 824-11  are cumulative of all powers granted by other laws that are by
 824-12  their terms applicable to the district.  (Sec. 4.01, Ch. 1256, 71st
 824-13  Leg., R.S., 1989.)
 824-14        Sec. 24.234.  Gifts, Grants, Loans, and Other Funds.  To
 824-15  carry out any purposes or powers under this subchapter, the
 824-16  district may apply for, accept, receive, and administer gifts,
 824-17  grants, loans, and other funds available from any source.  (Sec.
 824-18  4.02, Ch. 1256, 71st Leg., R.S., 1989.)
 824-19        Sec. 24.235.  Consultation, Contracts, and Cooperation with
 824-20  Other Governmental Agencies and Entities.  To carry out any
 824-21  purposes or powers under this subchapter, the district may advise,
 824-22  consult, contract, and cooperate with the federal government and
 824-23  its agencies, the state and its agencies, local governments, and
 824-24  private entities.  (Sec. 4.03, Ch. 1256, 71st Leg., R.S., 1989.)
 824-25        Sec. 24.236.  Acquisition of Property.  The district may
 824-26  acquire by gift, grant, devise, purchase, lease, or condemnation
 824-27  any land, easements, rights-of-way, and other property interests
  825-1  necessary to carry out the powers and duties provided by this
  825-2  subchapter.  (Sec. 4.04, Ch. 1256, 71st Leg., R.S., 1989.)
  825-3        Sec. 24.237.  Eminent Domain.  (a)  The district may acquire
  825-4  land within the boundaries of the district for the purposes
  825-5  authorized by Section 24.233(c) by condemnation when the board
  825-6  determines, after notice and hearing, that it is
  825-7        (b)  The right of eminent domain shall be exercised by the
  825-8  district in the manner provided by Chapter 21, Property Code,
  825-9  except that the district is not required to give bond for appeal or
 825-10  bond for costs in a condemnation suit or other suit to which it is
 825-11  a party and is not required to deposit double the amount of any
 825-12  award in any suit.
 825-13        (c)  If the district, in the exercise of the power of eminent
 825-14  domain, requires relocating, raising, lowering, rerouting, changing
 825-15  the grade, or altering the construction of any railroad, highway,
 825-16  pipeline, or electric transmission and electric distribution,
 825-17  telegraph, or telephone lines, conduits, poles, or facilities, the
 825-18  district must bear the actual cost of relocating, raising,
 825-19  lowering, rerouting, changing the grade, or altering the
 825-20  construction to provide comparable replacement without enhancement
 825-21  of facilities, after deducting the net salvage value derived from
 825-22  the old facility.  (Sec. 4.05, Ch. 1256, 71st Leg., R.S., 1989.)
 825-23        Sec. 24.238.  Authority to Enter Into Construction,
 825-24  Renovation, and Repair Contracts.  The district may contract with
 825-25  any person to construct, renovate, or repair any of its works,
 825-26  improvements, waste disposal, treatment, or other facilities,
 825-27  plants, pipelines, equipment, and appliances and, from time to
  826-1  time, make improvements to them.  (Sec. 4.06, Ch. 1256, 71st Leg.,
  826-2  R.S., 1989.)
  826-3        Sec. 24.239.  Bids on Contracts.  Contracts entered into
  826-4  under Section 24.238 requiring an expenditure of more than $5,000
  826-5  may be made only after competitive bidding as provided by
  826-6  Subchapter B, Chapter 271, Local Government Code.  (Sec. 4.07, Ch.
  826-7  1256, 71st Leg., R.S., 1989.)
  826-8        Sec. 24.240.  Attachments to Contracts.  A contract entered
  826-9  into under Section 24.238 must contain, or have attached to it, the
 826-10  specifications, plans, and details for work included in the
 826-11  contract, and work shall be done according to those plans and
 826-12  specifications under the supervision of the district.  (Sec. 4.08,
 826-13  Ch. 1256, 71st Leg., R.S., 1989.)
 826-14        Sec. 24.241.  Execution and Availability of Contracts.  (a)
 826-15  A contract entered into under Section 24.238 must be in writing and
 826-16  signed by the contractor and a representative of the district
 826-17  designated by the board.
 826-18        (b)  The contract shall be kept in the district's office and
 826-19  must be available for public inspection.  (Sec. 4.09, Ch. 1256,
 826-20  71st Leg., R.S., 1989.)
 826-21        Sec. 24.242.  Contractor's Bond.  (a)  A contractor shall
 826-22  execute a bond in an amount determined by the board, not to exceed
 826-23  the contract price, payable to the district and approved by the
 826-24  board, conditioned on the faithful performance of the obligations,
 826-25  agreements, and covenants of the contract.
 826-26        (b)  The bond must provide that if the contractor defaults on
 826-27  the contract, the contractor will pay to the district all damages
  827-1  sustained as a result of the default.  The bond shall be deposited
  827-2  in the district's depository, and a copy of the bond shall be kept
  827-3  in the district's office.  (Sec. 4.10, Ch. 1256, 71st Leg., R.S.,
  827-4  1989.)
  827-5        Sec. 24.243.  Monitoring Work.  (a)  The board has control of
  827-6  construction, renovation, or repairs being done for the district
  827-7  under a contract entered into under Section 24.238 and shall
  827-8  determine whether or not the contract is being fulfilled.
  827-9        (b)  The board shall have the construction, renovation, or
 827-10  repair work inspected by engineers, inspectors, and personnel of
 827-11  the district.
 827-12        (c)  During the progress of the work, the engineers,
 827-13  inspectors, and personnel doing the inspections shall submit to the
 827-14  board written reports that show whether or not the contractor is
 827-15  complying with the contract.
 827-16        (d)  On completion of construction, renovation, or repair
 827-17  work, the engineers, inspectors, and personnel shall submit to the
 827-18  board a final detailed written report including information
 827-19  necessary to show whether or not the contractor has fully complied
 827-20  with the contract.  (Sec. 4.11, Ch. 1256, 71st Leg., R.S., 1989.)
 827-21        Sec. 24.244.  Payment for Work.  (a)  The district shall pay
 827-22  the contract price of construction, renovation, or repair contracts
 827-23  in accordance with this section.
 827-24        (b)  The district shall make progress payments under
 827-25  contracts monthly as the work proceeds or at more frequent
 827-26  intervals as determined by the board.
 827-27        (c)  If requested by the board, the contractor shall furnish
  828-1  an analysis of the total contract price showing the amount included
  828-2  for each principal category of the work, in such detail as
  828-3  requested, to provide a basis for determining progress payments.
  828-4        (d)  In making progress payments, 10 percent of the estimated
  828-5  amount shall be retained until final completion and acceptance of
  828-6  the contract work.  However, if the board, at any time after 50
  828-7  percent of the work has been completed, finds that satisfactory
  828-8  progress is being made, it may authorize any of the remaining
  828-9  progress payments to be made in full.  Also, if the work is
 828-10  substantially complete, the board, if it finds the amount retained
 828-11  to be in excess of the amount adequate for the protection of the
 828-12  district, may release to the contractor all or a portion of the
 828-13  excess amount.
 828-14        (e)  On completion and acceptance of each separate project,
 828-15  work, or other division of the contract, on which the price is
 828-16  stated separately in the contract, payment may be made without
 828-17  retention of a percentage.
 828-18        (f)  When work is completed according to the terms of the
 828-19  contract, the board shall draw a warrant on the depository to pay
 828-20  any balance due on the contract.  (Sec. 4.12, Ch. 1256, 71st Leg.,
 828-21  R.S., 1989.)
 828-22        Sec. 24.245.  Contracts for Purchase of Vehicles, Equipment,
 828-23  and Supplies Over $10,000.  (a)  If the estimated amount of a
 828-24  proposed contract for the purchase of vehicles, equipment, or
 828-25  supplies is more than $10,000, the board shall ask for competitive
 828-26  bids as provided by Section 24.239.
 828-27        (b)  This section does not apply to purchases of property
  829-1  from public agencies or to contracts for personal or professional
  829-2  services.  (Sec. 4.13, Ch. 1256, 71st Leg., R.S., 1989.)
  829-3        Sec. 24.246.  Entry on Land.  (a)  The directors, the
  829-4  engineer, and the employees of the district may go on any land
  829-5  inside or outside the boundaries of the district to make surveys
  829-6  and examine the land with reference to the location of works,
  829-7  improvements, waste disposal, treatment, and other facilities,
  829-8  plants, pipelines, equipment, and appliances and to attend to
  829-9  business of the district.
 829-10        (b)  Before a director, engineer, or employee enters on the
 829-11  land, five days' written notice must be given to the landowner.
 829-12        (c)  If any activities of the district on the land cause
 829-13  damages to the land or property, the land or property shall be
 829-14  restored as nearly as possible to its original state.  The district
 829-15  shall pay the cost of the restoration.  (Sec. 4.14, Ch. 1256, 71st
 829-16  Leg., R.S., 1989.)
 829-17        Sec. 24.247.  Right to Use Road Right-of-Way.  The district
 829-18  has a right-of-way along and across all public state or county
 829-19  roads or highways, but the district shall restore the roads and
 829-20  highways crossed, as nearly as possible, to their previous
 829-21  condition of use at the sole expense of the district.  (Sec. 4.15,
 829-22  Ch. 1256, 71st Leg., R.S., 1989.)
 829-23        Sec. 24.248.  Fees and Charges.  (a)  The board may adopt and
 829-24  enforce all necessary charges, fees, or rentals, in addition to
 829-25  taxes, for providing any district facilities or services.
 829-26        (b)  The board may require a deposit for any services or
 829-27  facilities furnished and may or may not provide that the deposit
  830-1  will bear interest.
  830-2        (c)  The board may discontinue a facility or service to
  830-3  prevent an abuse or enforce payment of an unpaid charge, fee, or
  830-4  rental due the district, including taxes that have been due for not
  830-5  less than six months.  (Sec. 4.16, Ch. 1256, 71st Leg., R.S.,
  830-6  1989.)
  830-7        Sec. 24.249.  Acquisition of Existing Facilities.  If the
  830-8  district acquires existing works, improvements, waste disposal,
  830-9  treatment, and other facilities, plants, pipelines, equipment, and
 830-10  appliances that are completed, partially completed, or under
 830-11  construction, the district may assume the contracts and obligations
 830-12  of the previous owner and perform the obligations of the previous
 830-13  owner in the same manner and to the same extent that any other
 830-14  purchaser or assignee would be bound.  (Sec. 4.17, Ch. 1256, 71st
 830-15  Leg., R.S., 1989.)
 830-16        Sec. 24.250.  Municipal Solid Waste Resource Recovery
 830-17  Facilities.  The district may construct or acquire and operate
 830-18  municipal solid waste resource recovery facilities.  (Sec. 4.18,
 830-19  Ch. 1256, 71st Leg., R.S., 1989.)
 830-20        Sec. 24.251.  Regulation of Municipal Solid Waste Disposal.
 830-21  (a)  The district shall establish minimum standards of operation
 830-22  for all aspects of municipal solid waste handling, including
 830-23  storage, collection, incineration, sanitary landfill, or
 830-24  composting.
 830-25        (b)  Before establishing the standards, the district shall:
 830-26              (1)  hold public hearings after giving public notice in
 830-27  the time and manner prescribed by board rule;
  831-1              (2)  consult with the commission to ensure that the
  831-2  standards are not inconsistent with established criteria; and
  831-3              (3)  find that the standards are reasonably necessary
  831-4  for protection of public health or welfare from water pollution or
  831-5  other environmental harm.
  831-6        (c)  To amend standards, the district shall follow the same
  831-7  procedures required for establishing standards.
  831-8        (d)  The district may make rules reasonably necessary to
  831-9  implement municipal solid waste disposal standards.
 831-10        (e)  The district may assume the exclusive authority to
 831-11  exercise the powers granted to a county under Sections
 831-12  20.151-20.164, including the power to issue licenses and exercise
 831-13  municipal solid waste management authority.  If the district elects
 831-14  to exercise the licensing authority granted under this subsection,
 831-15  it must adopt and enforce rules for the management of municipal
 831-16  solid waste.  The rules must be compatible with and at least as
 831-17  stringent as those of the commission and must be approved by the
 831-18  commission.  (Sec. 4.19, Ch. 1256, 71st Leg., R.S., 1989.)
 831-19        Sec. 24.252.  Septic Tanks.  (a)  If the district finds that
 831-20  due to the nature of the soil or drainage in the area it is
 831-21  necessary to prevent water pollution that may injure the public
 831-22  health, the district by rule may:
 831-23              (1)  provide limits on the number and kind of septic
 831-24  tanks in an area defined by the rule;
 831-25              (2)  prohibit the use of septic tanks in the area; or
 831-26              (3)  prohibit the installation of new septic tanks in
 831-27  the area.
  832-1        (b)  The board shall consult with the commission before the
  832-2  adoption of a rule under Subsection (a).
  832-3        (c)  The board may provide in the order for a gradual and
  832-4  systematic reduction of the number or kind of septic tanks in the
  832-5  area and, by rule, may provide for a system of licensing and
  832-6  issuing permits for the installation of new septic tanks in the
  832-7  area affected, in which event no person may install septic tanks in
  832-8  the area without a license or permit from the board.
  832-9        (d)  The board may not issue a rule under Subsection (a)
 832-10  without first holding a public hearing in the area to be affected
 832-11  by the rule.  (Sec. 4.20, Ch. 1256, 71st Leg., R.S., 1989.)
 832-12        Sec. 24.253.  Acquisition, Construction, and Operation of
 832-13  Disposal Systems.  The district may:
 832-14              (1)  acquire and provide by purchase, gift, or lease
 832-15  any disposal systems inside or outside the district;
 832-16              (2)  construct and provide disposal systems inside or
 832-17  outside the district;
 832-18              (3)  operate and sell any disposal systems that it
 832-19  constructs or acquires;
 832-20              (4)  contract with a person to operate and maintain a
 832-21  disposal system belonging to the person; and
 832-22              (5)  contract with a person to train or supervise
 832-23  employees of a disposal system.  (Sec. 4.21, Ch. 1256, 71st Leg.,
 832-24  R.S., 1989.)
 832-25        Sec. 24.254.  Waste Disposal Contracts.  (a)  The district
 832-26  may contract to receive and to treat or dispose of waste from a
 832-27  person in the district.
  833-1        (b)  In contracts under Subsection (a), the district shall
  833-2  set fees by considering:
  833-3              (1)  the quality of the waste;
  833-4              (2)  the quantity of the waste;
  833-5              (3)  the difficulty encountered in treating or
  833-6  disposing of the waste;
  833-7              (4)  operation and maintenance expenses and debt
  833-8  retirement services; and
  833-9              (5)  any other reasonable considerations.  (Sec. 4.22,
 833-10  Ch. 1256, 71st Leg., R.S., 1989.)
 833-11        Sec. 24.255.  Areawide Waste Treatment.  The powers and
 833-12  duties conferred on the district are granted subject to the policy
 833-13  of the state to encourage the development and use of integrated
 833-14  areawide waste collection, treatment, and disposal systems to serve
 833-15  the waste disposal needs of the citizens of the state, it being an
 833-16  objective of the policy to avoid the economic burden to the people
 833-17  and the impact on the quality of the water in the state that result
 833-18  from the construction and operation of numerous small waste
 833-19  collection, treatment, and disposal facilities to serve an area
 833-20  when an integrated areawide waste collection, treatment, and
 833-21  disposal system for the area can be reasonably provided.  (Sec.
 833-22  4.23, Ch. 1256, 71st Leg., R.S., 1989.)
 833-23        Sec. 24.256.  Fiscal Year.  (a)  The district operates on the
 833-24  fiscal year established by the board.
 833-25        (b)  The fiscal year may not be changed more than once in a
 833-26  24-month period.  (Sec. 5.01, Ch. 1256, 71st Leg., R.S., 1989.)
 833-27        Sec. 24.257.  Annual Audit.  Annually, the board shall have
  834-1  an audit made of the financial condition of the district.  (Sec.
  834-2  5.02, Ch. 1256, 71st Leg., R.S., 1989.)
  834-3        Sec. 24.258.  Annual Budget.  (a)  The board shall prepare
  834-4  and approve an annual budget for the district.
  834-5        (b)  The budget shall contain a complete financial statement,
  834-6  including a statement of:
  834-7              (1)  the outstanding obligations of the district;
  834-8              (2)  the amount of cash on hand to the credit of each
  834-9  fund of the district;
 834-10              (3)  the amount of money received by the district from
 834-11  all sources during the previous year;
 834-12              (4)  the amount of money available to the district from
 834-13  all sources during the ensuing year;
 834-14              (5)  the amount of the balances expected at the end of
 834-15  the year in which the budget is being prepared;
 834-16              (6)  the estimated amount of revenues and balances
 834-17  available to cover the proposed budget; and
 834-18              (7)  the estimated tax rate that will be required.
 834-19  (Sec. 5.03, Ch. 1256, 71st Leg., R.S., 1989.)
 834-20        Sec. 24.259.  Amending Budget.  After adoption, the annual
 834-21  budget may be amended on the board's approval.  (Sec. 5.04, Ch.
 834-22  1256, 71st Leg., R.S., 1989.)
 834-23        Sec. 24.260.  Limitation on Expenditures.  Money may not be
 834-24  spent for an expense not included in the annual budget or an
 834-25  amendment to it unless the board by order declares the expense to
 834-26  be necessary.  (Sec. 5.05, Ch. 1256, 71st Leg., R.S., 1989.)
 834-27        Sec. 24.261.  Sworn Statement.  As soon as practicable after
  835-1  the close of the fiscal year, the treasurer of the district shall
  835-2  prepare for the board a sworn statement of the amount of money that
  835-3  belongs to the district and an account of the disbursements of that
  835-4  money.  (Sec. 5.06, Ch. 1256, 71st Leg., R.S., 1989.)
  835-5        Sec. 24.262.  Depository.  (a)  The board shall name one or
  835-6  more banks to serve as depository for district funds.
  835-7        (b)  District funds, other than those transmitted to a bank
  835-8  of payment for bonds issued by the district, shall be deposited as
  835-9  received with the depository bank and must remain on deposit.  This
 835-10  section does not limit the power of the board to invest the
 835-11  district's funds as provided by Section 24.263.
 835-12        (c)  Before the district deposits funds in a bank in an
 835-13  amount that exceeds the maximum amount secured by the Federal
 835-14  Deposit Insurance Corporation, the bank must execute a bond or
 835-15  provide other security in an amount sufficient to secure from loss
 835-16  the district's funds that exceed the amount secured by the Federal
 835-17  Deposit Insurance Corporation.  (Sec. 5.07, Ch. 1256, 71st Leg.,
 835-18  R.S., 1989.)
 835-19        Sec. 24.263.  Investments.  (a)  Funds of the district may be
 835-20  invested and reinvested by the board or its authorized
 835-21  representative in those investments specified by Article 836 or
 835-22  837, Revised Statutes, or the Public Funds Investment Act of 1987
 835-23  (Article 842a-2, Vernon's Texas Civil Statutes).
 835-24        (b)  Funds of the district may be placed in certificates of
 835-25  deposit of state or national banks or state or federal savings and
 835-26  loan associations within the state provided that the funds are
 835-27  secured in the manner required for the security of the funds of
  836-1  counties of the state.
  836-2        (c)  The board by resolution may provide that an authorized
  836-3  representative of the district may invest and reinvest the funds of
  836-4  the district and provide for money to be withdrawn from the
  836-5  appropriate accounts of the district for investments on terms the
  836-6  board considers advisable.  (Sec. 5.08, Ch. 1256, 71st Leg., R.S.,
  836-7  1989.)
  836-8        Sec. 24.264.  Payment of Expenses.  (a)  The district's
  836-9  directors may pay all costs and expenses necessarily incurred in
 836-10  the creation, organization, and operation of the district, legal
 836-11  fees, and other incidental expenses and may reimburse any person
 836-12  for money advanced for those purposes.
 836-13        (b)  Payments may be made from money obtained from the sale
 836-14  of bonds issued by the district or out of taxes, fees, or other
 836-15  revenues of the district.  (Sec. 5.09, Ch. 1256, 71st Leg., R.S.,
 836-16  1989.)
 836-17        Sec. 24.265.  Authority to Issue Bonds.  The board may issue
 836-18  and sell bonds in the name of the district to acquire land and
 836-19  construct works, improvements, waste disposal, treatment, and other
 836-20  facilities, plants, pipelines, equipment, and appliances as
 836-21  provided by this subchapter.  (Sec. 6.01, Ch. 1256, 71st Leg.,
 836-22  R.S., 1989.)
 836-23        Sec. 24.266.  Bond Payment.  The board may provide for the
 836-24  payment of the principal of and interest on the bonds:
 836-25              (1)  from the levy and collection of property taxes on
 836-26  all taxable property within the district;
 836-27              (2)  by pledging all or part of the designated revenues
  837-1  from the ownership or operation of the district's works,
  837-2  improvements, and facilities; or
  837-3              (3)  from a combination of the sources listed by
  837-4  Subdivisions (1) and (2).  (Sec. 6.02, Ch. 1256, 71st Leg., R.S.,
  837-5  1989.)
  837-6        Sec. 24.267.  Bond Election.  (a)  Bonds may not be issued by
  837-7  the district until authorized by a majority vote of individuals
  837-8  qualified to vote and actually voting in the area within the
  837-9  boundaries of the district at an election called and held for that
 837-10  purpose.
 837-11        (b)  The board may order a bond election.  The order calling
 837-12  the election must state the nature and the date of the election,
 837-13  the hours during which the polls will be open, the location of the
 837-14  polling places, the amount of bonds to be authorized, and the
 837-15  maximum maturity of the bonds.
 837-16        (c)  Notice of a bond election must be given as provided by
 837-17  Section 24.208 for the confirmation and directors' election.
 837-18        (d)  At an election to authorize bonds, the ballot must be
 837-19  printed to provide for voting for or against the issuance of bonds
 837-20  and the levy of property taxes for payment of the bonds.
 837-21        (e)  The board shall canvass the returns and declare the
 837-22  results of the election.  If a majority of the votes cast at the
 837-23  election favor the issuance of the bonds, the bonds may be issued
 837-24  by the board, but if a majority of the votes cast at the election
 837-25  do not favor issuance of the bonds, the bonds may not be issued.
 837-26  (Sec. 6.03, Ch. 1256, 71st Leg., R.S., 1989.)
 837-27        Sec. 24.268.  Terms; Form.  (a)  The district may issue its
  838-1  bonds in various series or issues.
  838-2        (b)  Bonds may mature serially or otherwise not more than 50
  838-3  years after the date of issuance and shall bear interest at a rate
  838-4  permitted by state law.
  838-5        (c)  The district's bonds and interest coupons, if any, are
  838-6  investment securities under the terms of Chapter 8, Business &
  838-7  Commerce Code, and may be issued registrable as to principal or as
  838-8  to principal and interest or may be issued in book entry form and
  838-9  may be made redeemable before maturity at the option of the
 838-10  district or may contain a mandatory redemption provision.
 838-11        (d)  The district's bonds may be issued in the form,
 838-12  denominations, and manner and under the terms, conditions, and
 838-13  details and shall be signed and executed as provided by the board
 838-14  in the resolution or order authorizing the bonds.  (Sec. 6.04, Ch.
 838-15  1256, 71st Leg., R.S., 1989.)
 838-16        Sec. 24.269.  Bond Provisions.  (a)  In the orders or
 838-17  resolutions authorizing the issuance of bonds, including refunding
 838-18  bonds, the board may provide for the flow of funds, the
 838-19  establishment and maintenance of the interest and sinking fund, the
 838-20  reserve fund, and other funds and may make additional covenants
 838-21  with respect to the bonds and the pledged fees.
 838-22        (b)  The orders or resolutions of the board authorizing the
 838-23  issuance of bonds may prohibit the further issuance of bonds or
 838-24  other obligations payable from the pledged fees or may reserve the
 838-25  right to issue additional bonds to be secured by a pledge of and
 838-26  payable from the fees on a parity with or subordinate to the pledge
 838-27  in support of the bonds being issued.
  839-1        (c)  The orders or resolutions of the board issuing bonds may
  839-2  contain other provisions and covenants as the board may determine.
  839-3        (d)  The board may adopt and have executed any other
  839-4  proceedings or instruments necessary and convenient in the issuance
  839-5  of bonds.  (Sec. 6.05, Ch. 1256, 71st Leg., R.S., 1989.)
  839-6        Sec. 24.270.  Approval and Registration.  (a)  Bonds issued
  839-7  by the district and the records relating to their issuance must be
  839-8  submitted to the attorney general for examination as to their
  839-9  validity.
 839-10        (b)  If the attorney general finds that the bonds have been
 839-11  authorized in accordance with law, the attorney general shall
 839-12  approve them, and the comptroller of public accounts shall register
 839-13  the bonds.
 839-14        (c)  Following approval and registration, the bonds are
 839-15  incontestable and are binding obligations according to their terms.
 839-16  (Sec. 6.06, Ch. 1256, 71st Leg., R.S., 1989.)
 839-17        Sec. 24.271.  Refunding Bonds.  (a)  Refunding bonds of the
 839-18  district may be issued to refund and pay off an outstanding
 839-19  indebtedness the district has issued or assumed.
 839-20        (b)  The bonds must be issued in the manner provided by
 839-21  Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
 839-22  (Article 717k-3, Vernon's Texas Civil Statutes).
 839-23        (c)  The refunding bonds may be sold and the proceeds applied
 839-24  to the payment of outstanding indebtedness or may be exchanged in
 839-25  whole or in part for not less than a similar principal amount of
 839-26  outstanding indebtedness.  If the refunding bonds are to be sold
 839-27  and the proceeds applied to the payment of outstanding
  840-1  indebtedness, the refunding bonds must be issued and payments made
  840-2  in the manner provided by Chapter 503, Acts of the 54th
  840-3  Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
  840-4  Civil Statutes).  (Sec. 6.07, Ch. 1256, 71st Leg., R.S., 1989.)
  840-5        Sec. 24.272.  Legal Investments; Security for Deposits.  (a)
  840-6  District bonds are legal and authorized investments for:
  840-7              (1)  a bank;
  840-8              (2)  a savings bank;
  840-9              (3)  a trust company;
 840-10              (4)  a savings and loan association;
 840-11              (5)  an insurance company;
 840-12              (6)  a fiduciary;
 840-13              (7)  a trustee;
 840-14              (8)  a guardian; and
 840-15              (9)  the sinking fund of a municipality, county, school
 840-16  district, or other political subdivision of the state and other
 840-17  public funds of the state and its agencies, including the permanent
 840-18  school fund.
 840-19        (b)  District bonds may secure deposits of public funds of
 840-20  the state or a municipality, county, school district, or other
 840-21  political subdivision of the state.  The bonds are lawful and
 840-22  sufficient security for deposits to the extent of their value, if
 840-23  accompanied by all unmatured coupons.  (Sec. 6.08, Ch. 1256, 71st
 840-24  Leg., R.S., 1989.)
 840-25        Sec. 24.273.  Mandamus by Bondholders.  In addition to all
 840-26  other rights and remedies provided by law, if the district defaults
 840-27  in the payment of principal, interest, or redemption price on its
  841-1  bonds when due or if it fails to make payments into any fund or
  841-2  funds created in the orders or resolutions authorizing the issuance
  841-3  of the bonds or defaults in the observation or performance of any
  841-4  other covenants, conditions, or obligations set forth in the orders
  841-5  or resolutions authorizing the issuance of its bonds, the owners of
  841-6  any of the bonds are entitled to a writ of mandamus issued by a
  841-7  court of competent jurisdiction compelling and requiring the
  841-8  district and its officials to observe and perform the covenants,
  841-9  obligations, or conditions prescribed in the orders or resolutions
 841-10  authorizing the issuance of the district's bonds.  (Sec. 6.09, Ch.
 841-11  1256, 71st Leg., R.S., 1989.)
 841-12        Sec. 24.274.  Application of Other Laws.  Bonds of the
 841-13  district are considered bonds under the Bond Procedures Act of 1981
 841-14  (Article 717k-6, Vernon's Texas Civil Statutes).  (Sec. 6.10, Ch.
 841-15  1256, 71st Leg., R.S., 1989.)
 841-16        Sec. 24.275.  Tax Status of Bonds.  Since the district
 841-17  created under this chapter is a public entity performing an
 841-18  essential public function, bonds issued by the district, any
 841-19  transaction relating to the bonds, and profits made in the sale of
 841-20  the bonds are free from taxation by the state or by a municipality,
 841-21  county, special district, or other political subdivision of the
 841-22  state.  (Sec. 7.01, Ch. 1256, 71st Leg., R.S., 1989.)
 841-23        Sec. 24.276.  Levy of Taxes.  The board may annually levy
 841-24  taxes in the district in an amount necessary to pay the principal
 841-25  of and interest on bonds issued by the district and the expense of
 841-26  assessing and collecting taxes.  (Sec. 7.02, Ch. 1256, 71st Leg.,
 841-27  R.S., 1989.)
  842-1        Sec. 24.277.  Maintenance and Operating Tax.  On approval of
  842-2  a majority of the voters in the district at an election called for
  842-3  that purpose, the district may levy and collect a maintenance and
  842-4  operating tax in an amount not to exceed five cents on each $100 of
  842-5  assessed valuation of property in the district to pay maintenance
  842-6  and operating expenses of the district.  The maintenance and
  842-7  operating tax election shall be held in the manner provided by this
  842-8  Act for the confirmation and directors' election.  (Sec. 7.03, Ch.
  842-9  1256, 71st Leg., R.S., 1989.)
 842-10        Sec. 24.278.  Board Authority.  (a)  The board may levy taxes
 842-11  for the entire year in which the district is created.
 842-12        (b)  The board shall levy taxes on all property within the
 842-13  boundaries of the district subject to district taxation.  (Sec.
 842-14  7.04, Ch. 1256, 71st Leg., R.S., 1989.)
 842-15        Sec. 24.279.  Tax Rate.  In setting the tax rate, the board
 842-16  shall take into consideration the income of the district from
 842-17  sources other than taxation.  On determination of the amount of tax
 842-18  required to be levied, the board shall make the levy and certify it
 842-19  to the tax collector.  (Sec. 7.05, Ch. 1256, 71st Leg., R.S.,
 842-20  1989.)
 842-21        Sec. 24.280.  Tax Appraisal, Assessment, and Collection.  (a)
 842-22  The Tax Code governs the appraisal, assessment, and collection of
 842-23  district taxes.
 842-24        (b)  The board may provide for the appointment of a tax
 842-25  collector for the district or may contract for the collection of
 842-26  taxes as provided by the Tax Code.  (Sec. 7.06, Ch. 1256, 71st
 842-27  Leg., R.S., 1989.)
  843-1                          CHAPTER 25.  LITTER
  843-2                   SUBCHAPTER A.  GENERAL PROVISIONS
  843-3        Sec. 25.001.  Short Title.  This chapter may be cited as the
  843-4  Texas Litter Abatement Act.  (Sec. 365.001, Health and Safety
  843-5  Code.)
  843-6        Sec. 25.002.  Effect of Other Laws.  (a)  The pollution of
  843-7  water in the state is controlled by Chapter 10 and other applicable
  843-8  law.
  843-9        (b)  The regulation of litter on public beaches is controlled
 843-10  by Subchapters C and D, Chapter 61, Natural Resources Code.
 843-11        (c)  The Parks and Wildlife Commission may adopt rules to
 843-12  govern the disposal of garbage, refuse, and sewage in state parks,
 843-13  public water in state parks, historic sites, scientific areas, and
 843-14  forts under the control of the Parks and Wildlife Department.
 843-15  (Secs. 365.002, 365.003, 365.004, Health and Safety Code.)
 843-16            (Sections 25.003-25.020 reserved for expansion)
 843-17         SUBCHAPTER B.  CERTAIN ACTIONS PROHIBITED; PENALTIES
 843-18        Sec. 25.021.  Definitions.  In this subchapter:
 843-19              (1)  "Approved solid waste site" means:
 843-20                    (A)  a solid waste site permitted by the
 843-21  commission;
 843-22                    (B)  a solid waste site licensed by a county
 843-23  under Chapter 20; or
 843-24                    (C)  a designated collection area for ultimate
 843-25  disposal at a permitted or licensed municipal solid waste site.
 843-26              (2)  "Boat" means a vehicle, including a barge,
 843-27  airboat, motorboat, or sailboat, used for transportation on water.
  844-1              (3)  "Commercial purpose" means the purpose of economic
  844-2  gain.
  844-3              (4)  "Commercial vehicle" means a vehicle that is
  844-4  operated by a person for a commercial purpose or that is owned by a
  844-5  business or commercial enterprise.
  844-6              (5)  "Dispose" and "dump" mean to discharge, deposit,
  844-7  inject, spill, leak, or place litter on or into land or water.
  844-8              (6)  "Litter" means:
  844-9                    (A)  decayable waste from a public or private
 844-10  establishment, residence, or restaurant, including animal and
 844-11  vegetable waste material from a market or storage facility handling
 844-12  or storing produce or other food products, or the handling,
 844-13  preparation, cooking, or consumption of food, but not including
 844-14  sewage, body wastes, or industrial by-products; or
 844-15                    (B)  nondecayable solid waste, except ashes, that
 844-16  consists of:
 844-17                          (i)  combustible waste material, including
 844-18  paper, rags, cartons, wood, excelsior, furniture, rubber, plastics,
 844-19  yard trimmings, leaves, or similar materials;
 844-20                          (ii)  noncombustible waste material,
 844-21  including glass, crockery, tin or aluminum cans, metal furniture,
 844-22  and similar materials that do not burn at ordinary incinerator
 844-23  temperatures of 1800 degrees Fahrenheit or less; and
 844-24                          (iii)  discarded or worn-out manufactured
 844-25  materials and machinery, including motor vehicles and parts of
 844-26  motor vehicles, tires, aircraft, farm implements, building or
 844-27  construction materials, appliances, and scrap metal.
  845-1              (7)  "Motor vehicle" has the meaning assigned by
  845-2  Section 2(b), Uniform Act Regulating Traffic on Highways (Article
  845-3  6701d, Vernon's Texas Civil Statutes).
  845-4              (8)  "Public highway" means the entire width between
  845-5  property lines of a road, street, way, thoroughfare, bridge, public
  845-6  beach, or park in this state, not privately owned or controlled, if
  845-7  any part of the road, street, way, thoroughfare, bridge, public
  845-8  beach, or park:
  845-9                    (A)  is opened to the public for vehicular
 845-10  traffic;
 845-11                    (B)  is used as a public recreational area; or
 845-12                    (C)  is under the state's legislative
 845-13  jurisdiction through its police power.  (Sec. 365.011, Health and
 845-14  Safety Code.)
 845-15        Sec. 25.022.  Disposal of Litter; Criminal Penalties.  (a)  A
 845-16  person commits an offense if the person disposes or allows or
 845-17  permits the disposal of litter at a place that is not an approved
 845-18  solid waste site, including a place on or within 300 feet of a
 845-19  public highway, on a right-of-way, on other public or private
 845-20  property, or into inland or coastal water of the state.
 845-21        (b)  A person commits an offense if the person receives
 845-22  litter for disposal at a place that is not an approved solid waste
 845-23  site, regardless of whether the litter or the land on which the
 845-24  litter is disposed is owned or controlled by the person.
 845-25        (c)  A person commits an offense if the person transports
 845-26  litter to a place that is not an approved solid waste site for
 845-27  disposal at the site.
  846-1        (d)  An offense under this section is a Class C misdemeanor
  846-2  if the litter to which the offense applies weighs 15 pounds or less
  846-3  or has a volume of 13 gallons or less.
  846-4        (e)  An offense under this section is a Class B misdemeanor
  846-5  if the litter to which the offense applies weighs more than 15
  846-6  pounds but less than 500 pounds or has a volume of more than 13
  846-7  gallons but less than 100 cubic feet.
  846-8        (f)  An offense under this section is a Class A misdemeanor
  846-9  if:
 846-10              (1)  the litter to which the offense applies weighs 500
 846-11  pounds or more or has a volume of 100 cubic feet or more; or
 846-12              (2)  the litter is disposed for a commercial purpose
 846-13  and weighs more than five pounds or has a volume of more than 13
 846-14  gallons.
 846-15        (g)  If it is shown on the trial of the defendant for an
 846-16  offense under this section that the defendant has previously been
 846-17  convicted of an offense under this section, the punishment for the
 846-18  offense is increased to the punishment for the next highest
 846-19  category.  (Sec. 365.012, Health and Safety Code.)
 846-20        Sec. 25.023.  Rules and Standards; Criminal Penalty.
 846-21  (a)  The commission shall adopt rules and standards regarding
 846-22  processing and treating litter disposed in violation of this
 846-23  subchapter.
 846-24        (b)  A person commits an offense if the person violates a
 846-25  rule adopted under this section.
 846-26        (c)  An offense under this section is a Class A misdemeanor.
 846-27  (Sec. 365.013, Health and Safety Code.)
  847-1        Sec. 25.024.  Application of Subchapter; Defenses;
  847-2  Presumptions.  (a)  This subchapter does not apply to farmers:
  847-3              (1)  in handling anything necessary to grow, handle,
  847-4  and care for livestock; or
  847-5              (2)  in erecting, operating, and maintaining
  847-6  improvements necessary to handle, thresh, and prepare agricultural
  847-7  products or for conservation projects.
  847-8        (b)  A person who dumps more than five pounds or 13 gallons
  847-9  of litter from a commercial vehicle in violation of this subchapter
 847-10  is presumed to be dumping the litter for a commercial purpose.
 847-11        (c)  It is an affirmative defense to prosecution under
 847-12  Section 25.022 that:
 847-13              (1)  the storage, processing, or disposal took place on
 847-14  land owned or leased by the defendant;
 847-15              (2)  the defendant received the litter from another
 847-16  person;
 847-17              (3)  the defendant, after exercising due diligence, did
 847-18  not know and reasonably could not have known that litter was
 847-19  involved; and
 847-20              (4)  the defendant did not receive, directly or
 847-21  indirectly, compensation for the receipt, storage, processing, or
 847-22  treatment.  (Sec. 365.014, Health and Safety Code.)
 847-23        Sec. 25.025.  Injunction; Venue; Recovery of Costs.  (a)  A
 847-24  district attorney, a county attorney, or the attorney general may
 847-25  bring a civil suit for an injunction to prevent or restrain a
 847-26  violation of this subchapter.  A person affected or to be affected
 847-27  by a violation is entitled to seek injunctive relief to enjoin the
  848-1  violation.
  848-2        (b)  Venue for a prosecution of a criminal offense under this
  848-3  subchapter or for a civil suit for injunctive relief under this
  848-4  subchapter is in the county in which the defendant resides, the
  848-5  county in which the offense or violation occurred, or in Travis
  848-6  County.
  848-7        (c)  In a suit for relief under this section, the prevailing
  848-8  party may recover its reasonable attorney fees, court costs, and
  848-9  reasonable investigative costs incurred in relation to the
 848-10  proceeding.  (Sec. 365.015, Health and Safety Code.)
 848-11        Sec. 25.026.  Disposal of Litter in a Cave; Criminal Penalty.
 848-12  (a)  A person commits an offense if the person disposes litter, a
 848-13  dead animal, sewage, or any chemical in a cave.
 848-14        (b)  An offense under this section is a Class C misdemeanor
 848-15  unless:
 848-16              (1)  it is shown on the trial of the defendant that the
 848-17  defendant previously has been convicted once of an offense under
 848-18  this section, in which event the offense is a Class A misdemeanor;
 848-19  or
 848-20              (2)  it is shown on the trial of the defendant that the
 848-21  defendant previously has been convicted two or more times of an
 848-22  offense under this section, in which event the offense is a felony
 848-23  of the third degree.  (Sec. 365.016, Health and Safety Code.)
 848-24            (Sections 25.027-25.030 reserved for expansion)
 848-25                   SUBCHAPTER C.  SPECIAL PROVISIONS
 848-26        Sec. 25.031.  Litter, Garbage, Refuse, and Rubbish in Lake
 848-27  Sabine.  The governing body of Port Arthur by ordinance may
  849-1  prohibit the depositing or placing of litter, garbage, refuse, or
  849-2  rubbish into or on the waters of Lake Sabine within the municipal
  849-3  limits.  (Sec. 365.031, Health and Safety Code.)
  849-4        Sec. 25.032.  Throwing Certain Substances in or Near Lake
  849-5  Lavon; Criminal Penalty.  (a)  The definitions provided by Section
  849-6  25.021 apply to this section.
  849-7        (b)  A person commits an offense if the person throws,
  849-8  leaves, or causes to be thrown or left wastepaper, glass, metal, a
  849-9  tin can, refuse, garbage, waste, discarded or soiled personal
 849-10  property, or any other noxious or poisonous substance in the water
 849-11  of or near Lake Lavon in Collin County if the substance is
 849-12  detrimental to fish or to a person fishing in Lake Lavon.
 849-13        (c)  An offense under this section is a Class C misdemeanor
 849-14  unless it is shown on the trial of the defendant that the defendant
 849-15  has previously been convicted of an offense under this section, in
 849-16  which event the offense is a Class A misdemeanor.  (Sec. 365.032,
 849-17  Health and Safety Code.)
 849-18        Sec. 25.033.  Discarding Refuse in Certain County Parks;
 849-19  Criminal Penalty.  (a)  The definitions provided by Section 25.021
 849-20  apply to this section.
 849-21        (b)  In this section, "beach" means an area in which the
 849-22  public has acquired a right of use or an easement and that borders
 849-23  on the seaward shore of the Gulf of Mexico or extends from the line
 849-24  of mean low tide to the line of vegetation bordering on the Gulf of
 849-25  Mexico.
 849-26        (c)  This section applies only to a county park located in a
 849-27  county that has the Gulf of Mexico as one boundary, but does not
  850-1  apply to a beach located in that park.
  850-2        (d)  A person commits an offense if the person discards in a
  850-3  county park any junk, garbage, rubbish, or other refuse in a place
  850-4  that is not an officially designated refuse container or disposal
  850-5  unit.
  850-6        (e)  An offense under this section is a Class C misdemeanor
  850-7  unless it is shown on the trial of the defendant that the defendant
  850-8  has previously been convicted of an offense under this section, in
  850-9  which event the offense is a Class A misdemeanor.  (Sec. 365.033,
 850-10  Health and Safety Code.)
 850-11        Sec. 25.034.  County Regulation of Litter Near Public
 850-12  Highway; Criminal Penalty.  (a)  The commissioners court of a
 850-13  county may:
 850-14              (1)  by order prohibit the accumulation of litter for
 850-15  more than 30 days on a person's property within 50 feet of a public
 850-16  highway in the county;
 850-17              (2)  provide for the removal and disposition of litter
 850-18  accumulated near a public highway in violation of an order adopted
 850-19  under this section; and
 850-20              (3)  provide for the assessment against a person who
 850-21  owns the property from which litter is removed under Subdivision
 850-22  (2) of the costs incurred by the county in removing and disposing
 850-23  of the litter.
 850-24        (b)  Before the commissioners court takes any action to
 850-25  remove or dispose of litter under this section, the court shall
 850-26  send a notice by certified mail to the record owners of the
 850-27  property on which the litter is accumulated in violation of an
  851-1  order adopted under this section.  The court may not remove or
  851-2  dispose of the litter or assess the costs of the removal or
  851-3  disposition against a property owner before the 30th day after the
  851-4  date the notice is sent under this subsection.
  851-5        (c)  If a person assessed costs under this section does not
  851-6  pay the costs within 60 days after the date of assessment:
  851-7              (1)  a lien in favor of the county attaches to the
  851-8  property from which the litter was removed to secure the payment of
  851-9  the costs and interest accruing at an annual rate of 10 percent on
 851-10  any unpaid part of the costs; and
 851-11              (2)  the commissioners court shall file a record of the
 851-12  lien in the office of the county clerk.
 851-13        (d)  The violation of an order adopted under this section is
 851-14  a Class C misdemeanor.
 851-15        (e)  In this section:
 851-16              (1)  "Litter" has the meaning assigned by Section
 851-17  25.021 except that the term does not include equipment used for
 851-18  agricultural purposes.
 851-19              (2)  "Public highway" has the meaning assigned by
 851-20  Section 25.021.  (Sec. 365.034, Health and Safety Code.)
 851-21                (Chapters 26-29 reserved for expansion)
 851-22                         TITLE 4.  AIR QUALITY
 851-23                      CHAPTER 30.  CLEAN AIR ACT
 851-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 851-25        Sec. 30.001.  Short Title.  This chapter may be cited as the
 851-26  Texas Clean Air Act.  (Sec. 382.001, Health and Safety Code.)
 851-27        Sec. 30.002.  Policy and Purpose.  (a)  The policy of this
  852-1  state and the purpose of this chapter are to safeguard the state's
  852-2  air resources from pollution by controlling or abating air
  852-3  pollution and emissions of air contaminants, consistent with the
  852-4  protection of public health, general welfare, and physical
  852-5  property, including the esthetic enjoyment of air resources by the
  852-6  public and the maintenance of adequate visibility.
  852-7        (b)  It is intended that this chapter be vigorously enforced
  852-8  and that violations of this chapter or any rule or order of the
  852-9  commission result in expeditious initiation of enforcement actions
 852-10  as provided by this chapter.  (Sec. 382.002, Health and Safety
 852-11  Code.)
 852-12        Sec. 30.003.  Definitions.  In this chapter:
 852-13              (1)  "Administrator" means the Administrator of the
 852-14  United States Environmental Protection Agency.
 852-15              (2)  "Air contaminant" means particulate matter,
 852-16  radioactive material, dust, fumes, gas, mist, smoke, vapor, or
 852-17  odor, including any combination of those items, produced by
 852-18  processes other than natural.
 852-19              (3)  "Air pollution" means the presence in the
 852-20  atmosphere of one or more air contaminants or combination of air
 852-21  contaminants in such concentration and of such duration that:
 852-22                    (A)  are or may tend to be injurious to or to
 852-23  adversely affect human health or welfare, animal life, vegetation,
 852-24  or property; or
 852-25                    (B)  interfere with the normal use or enjoyment
 852-26  of animal life, vegetation, or property.
 852-27              (4)  "Facility" means a discrete or identifiable
  853-1  structure, device, item, equipment, or enclosure that constitutes
  853-2  or contains a stationary source, including appurtenances other than
  853-3  emission control equipment.  A mine, quarry, well test, or road is
  853-4  not considered to be a facility.
  853-5              (5)  "Federal source" means a facility, group of
  853-6  facilities, or other source that is subject to the permitting
  853-7  requirements of Title IV or V of the federal Clean Air Act
  853-8  Amendments of 1990 (Pub. L. No. 101-549)  and includes:
  853-9                    (A)  an affected source as defined by Section 402
 853-10  of the federal Clean Air Act (42 U.S.C. Section 7651a) as added by
 853-11  Section 401 of the federal Clean Air Act Amendments of 1990
 853-12  (Pub. L. No. 101-549);
 853-13                    (B)  a major source as defined by Title III of
 853-14  the federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549);
 853-15                    (C)  a major source as defined by Title V of the
 853-16  federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549);
 853-17                    (D)  a source subject to the standards or
 853-18  regulations under Section 111 or 112 of the federal Clean Air Act
 853-19  (42 U.S.C. Sections 7411 and 7412);
 853-20                    (E)  a source required to have a permit under
 853-21  Part C or D of Title I of the federal Clean Air Act (42 U.S.C.
 853-22  Sections 7470 et seq. and 7501 et seq.);
 853-23                    (F)  a major stationary source or major emitting
 853-24  facility under Section 302 of the federal Clean Air Act (42 U.S.C.
 853-25  Section 7602); and
 853-26                    (G)  any other stationary source in a category
 853-27  designated by the United States Environmental Protection Agency as
  854-1  subject to the permitting requirements of Title V of the federal
  854-2  Clean Air Act Amendments of 1990 (Pub. L.  No. 101-549).
  854-3              (6)  "Local government" means a health district
  854-4  established under Chapter 121, Health and Safety Code, a county, or
  854-5  a municipality.
  854-6              (7)  "Modification of existing facility" means any
  854-7  physical change in, or change in the method of operation of, a
  854-8  stationary source in a manner that increases the amount of any air
  854-9  pollutant emitted by the source into the atmosphere or that results
 854-10  in the emission of any air pollutant not previously emitted.  The
 854-11  term does not include:
 854-12                    (A)  insignificant increases in the amount of any
 854-13  air pollutant emitted that is authorized by one or more board
 854-14  exemptions;
 854-15                    (B)  insignificant increases at a permitted
 854-16  facility; or
 854-17                    (C)  maintenance or replacement of equipment
 854-18  components that do not increase or tend to increase the amount or
 854-19  change the characteristics of the air contaminants emitted into the
 854-20  atmosphere.
 854-21              (8)  "Person" means an individual, corporation,
 854-22  organization, government or governmental subdivision or agency,
 854-23  business trust, partnership, association, or any other legal
 854-24  entity.
 854-25              (9)  "Select-use technology" means a technology that
 854-26  involves simultaneous combustion of natural gas with other fuels in
 854-27  fossil fuel-fired boilers.  The term includes cofiring, gas reburn,
  855-1  and enhanced gas reburn/sorbent injection.
  855-2              (10)  "Source" means a point of origin of air
  855-3  contaminants, whether privately or publicly owned or operated.
  855-4              (11)  "Well test" means the testing of an oil or gas
  855-5  well for a period of time less than 72 hours that does not
  855-6  constitute a major source or major modification under any provision
  855-7  of the federal Clean Air Act (42 U.S.C.  Section 7401 et seq.).
  855-8  (Sec. 382.003, Health and Safety Code.)
  855-9        Sec. 30.004.  Effect on Private Remedies.  This chapter does
 855-10  not affect the right of a private person to pursue a common law
 855-11  remedy available to abate or recover damages for a condition of
 855-12  pollution or other nuisance, or for both abatement and recovery of
 855-13  damages.  (Sec. 382.004, Health and Safety Code.)
 855-14        Sec. 30.005.  Remedies Supplemental.  The remedies provided
 855-15  by this chapter to prevent, abate, or penalize violations of the
 855-16  board's rules, orders, or permits or the causing of or contributing
 855-17  to air pollution are supplemental to other causes of actions and
 855-18  remedies available to the state at common law or by other statutes.
 855-19  (Sec. 382.005, Health and Safety Code.)
 855-20            (Sections 30.006-30.010 reserved for expansion)
 855-21            SUBCHAPTER B.  POWERS AND DUTIES OF COMMISSION
 855-22        Sec. 30.011.  General Powers and Duties.  (a)  The commission
 855-23  shall:
 855-24              (1)  administer this chapter;
 855-25              (2)  establish the level of quality to be maintained in
 855-26  the state's air; and
 855-27              (3)  control the quality of the state's air.
  856-1        (b)  The commission shall seek to accomplish the purposes of
  856-2  this chapter through the control of air contaminants by all
  856-3  practical and economically feasible methods.
  856-4        (c)  The commission has the powers necessary or convenient to
  856-5  carry out its responsibilities.  (Sec. 382.011, Health and Safety
  856-6  Code.)
  856-7        Sec. 30.012.  State Air Control Plan.  The commission shall
  856-8  prepare and develop a general, comprehensive plan for the proper
  856-9  control of the state's air.  (Sec. 382.012, Health and Safety
 856-10  Code.)
 856-11        Sec. 30.013.  Air Quality Control Regions.  The commission
 856-12  may designate air quality control regions based on jurisdictional
 856-13  boundaries, urban-industrial concentrations, and other factors,
 856-14  including atmospheric areas, necessary to provide adequate
 856-15  implementation of air quality standards.  (Sec. 382.013, Health and
 856-16  Safety Code.)
 856-17        Sec. 30.014.  Emission Inventory.  The commission may require
 856-18  a person whose activities cause emissions of air contaminants to
 856-19  submit information to enable the commission to develop an inventory
 856-20  of emissions of air contaminants in this state.  (Sec. 382.014,
 856-21  Health and Safety Code.)
 856-22        Sec. 30.015.  Clean Fuel Incentive Surcharge.  (a)  The
 856-23  commission shall levy a clean fuel incentive surcharge of 20 cents
 856-24  per MMBtu on fuel oil used between April 15 and October 15 of each
 856-25  year in an industrial or utility boiler that is:
 856-26              (1)  capable of using natural gas; and
 856-27              (2)  located in a consolidated metropolitan statistical
  857-1  area or metropolitan statistical area with a population of 350,000
  857-2  or more that has not met federal ambient air quality standards for
  857-3  ozone.
  857-4        (b)  The commission may not levy the clean fuel incentive
  857-5  surcharge on:
  857-6              (1)  waste oils, used oils, or hazardous waste-derived
  857-7  fuels burned for purposes of energy recovery or disposal, if the
  857-8  commission or the United States Environmental Protection Agency
  857-9  approves or permits the burning;
 857-10              (2)  fuel oil used during:
 857-11                    (A)  any period of full or partial natural gas
 857-12  curtailment;
 857-13                    (B)  any period when there is a failure to
 857-14  deliver sufficient quantities of natural gas to satisfy contractual
 857-15  obligations to the purchaser; or
 857-16                    (C)  a catastrophic event as defined by Section
 857-17  30.078;
 857-18              (3)  fuel oil used between April 15 and October 15 in
 857-19  equipment testing or personnel training up to an aggregate of the
 857-20  equivalent of 48 hours full-load operation; or
 857-21              (4)  any firm engaged in fixed price contracts with
 857-22  public works agencies for contracts entered into before August 28,
 857-23  1989.  (Sec. 382.0145, Health and Safety Code.)
 857-24        Sec. 30.016.  Alternative Fuels and Select-Use Technologies.
 857-25  (a)  In adopting rules, the commission shall encourage and may
 857-26  allow the use of natural gas and other alternative fuels, as well
 857-27  as select-use technologies, that will reduce emissions.
  858-1        (b)  Any orders or determinations made under this section
  858-2  must be consistent with Section 30.025.  (Sec. 382.0171, Health and
  858-3  Safety Code.)
  858-4        Sec. 30.017.  International Border Areas.  In order to
  858-5  qualify for the exceptions provided by Section 179B of the federal
  858-6  Clean Air Act (42 U.S.C. Section 7509a), as added by Section 818 of
  858-7  the federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549),
  858-8  the commission, in developing rules and control programs to be
  858-9  included in an implementation plan for an international border
 858-10  area, shall ensure that the plan or revision:
 858-11              (1)  meets all requirements applicable to the plan or
 858-12  revision under Title I of the federal Clean Air Act Amendments of
 858-13  1990 (Pub. L. No. 101-549), other than a requirement that the plan
 858-14  or revision demonstrates attainment and maintenance of the relevant
 858-15  national ambient air quality standards by the attainment date
 858-16  specified by the applicable provision of Title I of the federal
 858-17  Clean Air Act Amendments of 1990 (Pub. L. No. 101-549) or by a
 858-18  regulation adopted under that provision; and
 858-19              (2)  would be adequate to attain and maintain the
 858-20  relevant national ambient air quality standards by the attainment
 858-21  date specified by the applicable provision of Title I of the
 858-22  federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549) or
 858-23  by a regulation adopted under that provision, but for emissions
 858-24  emanating from outside the United States.  (Sec. 382.0172, Health
 858-25  and Safety Code.)
 858-26        Sec. 30.018.  Outdoor Burning of Waste and Combustible
 858-27  Material.  The commission by rule may control and prohibit the
  859-1  outdoor burning of waste and combustible material and may include
  859-2  requirements concerning the particular method to be used to control
  859-3  or abate the emission of air contaminants resulting from that
  859-4  burning.  (Sec. 382.018, Health and Safety Code.)
  859-5        Sec. 30.019.  Methods Used to Control and Reduce Emissions
  859-6  From Land Vehicles.  (a)  The commission by rule may provide
  859-7  requirements concerning the particular method to be used to control
  859-8  and reduce emissions from engines used to propel land vehicles.
  859-9        (b)  The commission may not require, as a condition precedent
 859-10  to the initial sale of a vehicle or vehicular equipment, the
 859-11  inspection, certification, or other approval of any feature or
 859-12  equipment designed to control emissions from motor vehicles if that
 859-13  feature or equipment has been certified, approved, or otherwise
 859-14  authorized under federal law.
 859-15        (c)  The commission or any other state agency may not adopt a
 859-16  rule requiring the use of Stage II vapor recovery systems that
 859-17  control motor vehicle refueling emissions at a gasoline dispensing
 859-18  facility in this state until the United States Environmental
 859-19  Protection Agency determines that the use of the system is required
 859-20  for compliance with the federal Clean Air Act (42 U.S.C. 7401 et
 859-21  seq.), except the commission may adopt rules requiring such vapor
 859-22  recovery systems installed in nonattainment areas if it can be
 859-23  demonstrated to be necessary for the attainment of federal ozone
 859-24  ambient air quality standards or, following appropriate health
 859-25  studies and in consultation with the Texas Department of Health, it
 859-26  is determined to be necessary for the protection of public health.
 859-27  (Sec. 382.019, Health and Safety Code.)
  860-1        Sec. 30.020.  Commercial Infectious Waste Incinerators.
  860-2  (a)  The commission shall adopt rules prescribing the most
  860-3  effective emissions control technology reasonably available to
  860-4  control emissions of air contaminants from a commercial infectious
  860-5  waste incinerator.
  860-6        (b)  Rules adopted under this section must require that the
  860-7  prescribed emissions control technology be installed as soon as
  860-8  practicable at each commercial infectious waste incinerator.
  860-9        (c)  In this section, "commercial infectious waste
 860-10  incinerator" means a facility that accepts for incineration
 860-11  infectious waste generated outside the property boundaries of the
 860-12  facility.  (Sec. 382.0195, Health and Safety Code.)
 860-13        Sec. 30.021.  Control of Emissions From Facilities That
 860-14  Handle Certain Agricultural Products.  (a)  The commission, when it
 860-15  determines that the control of air pollution is necessary, shall
 860-16  adopt rules concerning the control of emissions of particulate
 860-17  matter from plants at which grain, seed, legumes, or vegetable
 860-18  fibers are handled, loaded, unloaded, dried, manufactured, or
 860-19  processed according to a formula derived from the process weight of
 860-20  the materials entering the process.
 860-21        (b)  A person affected by a rule adopted under this section
 860-22  may use:
 860-23              (1)  the process weight method to control and measure
 860-24  the emissions from the plant; or
 860-25              (2)  any other method selected by that person that the
 860-26  commission or the executive director, if authorized by the
 860-27  commission, finds will provide adequate emission control efficiency
  861-1  and measurement.  (Sec. 382.020, Health and Safety Code.)
  861-2        Sec. 30.022.  Special Problems Related to Air Contaminant
  861-3  Emissions.  Consistent with applicable federal law, the commission
  861-4  by rule may control air contaminants as necessary to protect
  861-5  against adverse effects related to:
  861-6              (1)  acid deposition;
  861-7              (2)  stratospheric changes, including depletion of
  861-8  ozone; and
  861-9              (3)  climatic changes, including global warming.  (Sec.
 861-10  382.0205, Health and Safety Code.)
 861-11        Sec. 30.023.  Sampling Methods and Procedures.  (a)  The
 861-12  commission may prescribe the sampling methods and procedures to be
 861-13  used in determining violations of and compliance with the
 861-14  commission's rules, variances, and orders, including:
 861-15              (1)  ambient air sampling;
 861-16              (2)  stack-sampling;
 861-17              (3)  visual observation; or
 861-18              (4)  any other sampling method or procedure generally
 861-19  recognized in the field of air pollution control.
 861-20        (b)  The commission may prescribe new sampling methods and
 861-21  procedures if:
 861-22              (1)  in the commission's judgment, existing methods or
 861-23  procedures are not adequate to meet the needs and objectives of the
 861-24  commission's rules, variances, and orders; and
 861-25              (2)  the scientific applicability of the new methods or
 861-26  procedures can be satisfactorily demonstrated to the commission.
 861-27  (Sec. 382.021, Health and Safety Code.)
  862-1        Sec. 30.024.  Investigations.  The executive director may
  862-2  make or require the making of investigations:
  862-3              (1)  that the executive director considers advisable in
  862-4  administering this chapter and the commission's rules, orders, and
  862-5  determinations, including investigations of violations and general
  862-6  air pollution problems or conditions; or
  862-7              (2)  as requested or directed by the commission.  (Sec.
  862-8  382.022, Health and Safety Code.)
  862-9        Sec. 30.025.  Factors in Issuing Orders and Determinations.
 862-10  In issuing an order and making a determination, the commission
 862-11  shall consider the facts and circumstances bearing on the
 862-12  reasonableness of emissions, including:
 862-13              (1)  the character and degree of injury to or
 862-14  interference with the public's health and physical property;
 862-15              (2)  the source's social and economic value;
 862-16              (3)  the question of priority of location in the area
 862-17  involved; and
 862-18              (4)  the technical practicability and economic
 862-19  reasonableness of reducing or eliminating the emissions resulting
 862-20  from the source.  (Sec. 382.024, Health and Safety Code.)
 862-21        Sec. 30.026.  Orders Relating to Controlling Air Pollution.
 862-22  (a)  If the commission determines that air pollution exists, the
 862-23  commission may order any action indicated by the circumstances to
 862-24  control the condition.
 862-25        (b)  The commission shall grant to the owner or operator of a
 862-26  source time to comply with its orders as provided for by commission
 862-27  rules.  Those rules must provide for time for compliance gauged to
  863-1  the general situations that the hearings on proposed rules indicate
  863-2  are necessary.  (Sec. 382.025, Health and Safety Code.)
  863-3        Sec. 30.027.  Orders Issued Under Emergencies.  (a)  When it
  863-4  appears to the commission or the executive director that there
  863-5  exists a generalized condition of air pollution that creates an
  863-6  emergency requiring immediate action to protect human health or
  863-7  safety, the commission or the executive director shall, with the
  863-8  governor's concurrence, order any person causing or contributing to
  863-9  the air pollution immediately to reduce or discontinue the emission
 863-10  of air contaminants.
 863-11        (b)  If the commission or the executive director finds that
 863-12  emissions from one or more sources are causing imminent danger to
 863-13  human health or safety, but that there is not a generalized
 863-14  condition of air pollution under Subsection (a), the commission or
 863-15  the executive director may order the persons responsible for the
 863-16  emissions immediately to reduce or discontinue the emissions.
 863-17        (c)  An order issued under this section must set a time and
 863-18  place of a hearing to be held before the commission as soon after
 863-19  the order is issued as practicable.
 863-20        (d)  Section 2.206, relating to notice of a hearing, does not
 863-21  apply to a hearing under this section, but a general notice of the
 863-22  hearing shall be given that is, in the judgment of the commission
 863-23  or the executive director, practicable under the circumstances.
 863-24  The commission shall affirm, modify, or set aside the order not
 863-25  later than 24 hours after the hearing begins and without
 863-26  adjournment of the hearing.
 863-27        (e)  This section does not limit any power that the governor
  864-1  or other officer may have to declare an emergency and to act on the
  864-2  basis of that declaration if the power is conferred by law or
  864-3  inheres in the office.  (Sec. 382.026, Health and Safety Code.)
  864-4        Sec. 30.028.  Prohibition on Commission Action Relating to
  864-5  Air Conditions Existing Solely in Commercial and Industrial
  864-6  Facilities.  (a)  The commission may not adopt a rule,
  864-7  determination, or order that:
  864-8              (1)  relates to air conditions existing solely within
  864-9  buildings and structures used for commercial and industrial plants,
 864-10  works, or shops if the source of the offending air contaminants is
 864-11  under the control of the person who owns or operates the plants,
 864-12  works, or shops; or
 864-13              (2)  affects the relations between employers and their
 864-14  employees relating to or arising out of an air condition from a
 864-15  source under the control of the person who owns or operates the
 864-16  plants, works, or shops.
 864-17        (b)  This section does not limit or restrict the authority or
 864-18  powers granted to the board under Sections 30.018 and 30.023.
 864-19  (Sec. 382.027, Health and Safety Code.)
 864-20        Sec. 30.029.  Variances.  (a)  This chapter does not prohibit
 864-21  the granting of a variance.
 864-22        (b)  A variance is an exceptional remedy that may be granted
 864-23  only on demonstration that compliance with a provision of this
 864-24  chapter or commission rule or order results in an arbitrary and
 864-25  unreasonable taking of property.  (Sec. 382.028, Health and Safety
 864-26  Code.)
 864-27        Sec. 30.030.  Small Business Stationary Source Assistance
  865-1  Program.  (a)  The commission shall establish a small business
  865-2  stationary source technical and environmental compliance assistance
  865-3  program.
  865-4        (b)  The program shall include:
  865-5              (1)  mechanisms to develop, collect, and coordinate
  865-6  information about compliance methods and technologies for small
  865-7  business stationary sources and to encourage cooperation between
  865-8  those sources and other persons to achieve compliance with
  865-9  applicable air quality laws;
 865-10              (2)  mechanisms to assist small business stationary
 865-11  sources with pollution prevention and the prevention and detection
 865-12  of accidental releases, including information about alternative
 865-13  technologies, process changes, products, and methods of operation
 865-14  to reduce air pollution;
 865-15              (3)  an ombudsman to help small business stationary
 865-16  sources meet the requirements of the federal Clean Air Act
 865-17  Amendments of 1990 (Pub. L. No.  101-549);
 865-18              (4)  a compliance assistance program to help small
 865-19  business stationary sources identify the requirements for and
 865-20  obtain required permits in a timely and efficient manner;
 865-21              (5)  notification procedures to assure that small
 865-22  business stationary sources receive notice of their rights and
 865-23  obligations under the federal Clean Air Act Amendments of 1990
 865-24  (Pub. L. No. 101-549) in time to identify applicable requirements
 865-25  and evaluate and implement appropriate compliance methods;
 865-26              (6)  auditing services or referrals for small business
 865-27  stationary source operations to determine compliance with the
  866-1  federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549); and
  866-2              (7)  procedures for considering a request by a small
  866-3  business stationary source to modify work practices, technological
  866-4  compliance methods, or an implementation schedule requirement that
  866-5  precedes a compliance date, taking into account the technological
  866-6  and financial capability of that source.
  866-7        (c)  The program shall include a compliance advisory panel
  866-8  that consists of the following seven members:
  866-9              (1)  two members who are not owners or representatives
 866-10  of owners of small business stationary sources, selected by the
 866-11  governor to represent the public;
 866-12              (2)  two members who are owners or who represent owners
 866-13  of small business stationary sources, selected by the speaker of
 866-14  the house of representatives;
 866-15              (3)  two members who are owners or who represent owners
 866-16  of small business stationary sources, selected by the lieutenant
 866-17  governor; and
 866-18              (4)  one member selected by the chairman of the
 866-19  commission to represent that agency.
 866-20        (d)  The compliance advisory panel shall:
 866-21              (1)  give advisory opinions on the effectiveness of the
 866-22  program, the difficulties of implementing the program, and the
 866-23  incidence and severity of enforcement;
 866-24              (2)  report periodically to the administrator regarding
 866-25  the program's compliance with requirements of the Paperwork
 866-26  Reduction Act of 1980 (Pub. L. No.  96-511), the Regulatory
 866-27  Flexibility Act (5 U.S.C. Section 601 et seq.), and the Equal
  867-1  Access to Justice Act (Pub. L. No. 96-481);
  867-2              (3)  review information the program provides to small
  867-3  business stationary sources to assure the information is
  867-4  understandable to nonexperts; and
  867-5              (4)  distribute opinions, reports, and information
  867-6  developed by the panel.
  867-7        (e)  The commission shall enter into a memorandum of
  867-8  understanding with the Texas Department of Commerce to coordinate
  867-9  assistance to any small business in applying for permits from the
 867-10  commission.
 867-11        (f)  The commission may adopt rules reasonably necessary to
 867-12  implement this section in compliance with Section 507 of the
 867-13  federal Clean Air Act (42 U.S.C.  Section 7661f), as added by
 867-14  Section 501 of the federal Clean Air Act Amendments of 1990
 867-15  (Pub. L. No. 101-549) and regulations adopted under that Act.
 867-16        (g)  In this section:
 867-17              (1)  "Program" means the small business stationary
 867-18  source technical and environmental compliance assistance program.
 867-19              (2)  "Small business stationary source" has the meaning
 867-20  assigned by Section 507(c) of the federal Clean Air Act (42 U.S.C.
 867-21  Section 7661f), as added by Section 501 of the federal Clean Air
 867-22  Act Amendments of 1990 (Pub. L. No.  101-549).  (Sec. 382.0365,
 867-23  Health and Safety Code.)
 867-24        Sec. 30.031.  Vehicle Emissions Inspection and Maintenance
 867-25  Program.  (a)  The commission by resolution may request the Public
 867-26  Safety Commission to establish a vehicle emissions inspection and
 867-27  maintenance program under Section 142, Uniform Act Regulating
  868-1  Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),
  868-2  in accordance with this section and rules adopted under this
  868-3  section.  The commission by rule may establish, implement, and
  868-4  administer a program requiring emissions-related inspections of
  868-5  motor vehicles to be performed at inspection facilities consistent
  868-6  with the requirements of the federal Clean Air Act (42 U.S.C.
  868-7  Section 7401 et seq.).
  868-8        (b)  The commission by rule may require emissions-related
  868-9  inspection and maintenance of land vehicles, including testing
 868-10  exhaust emissions, examining emission control devices and systems,
 868-11  verifying compliance with applicable standards, and other
 868-12  requirements as provided by federal law or regulation.
 868-13        (c)  If the program is established under this section, the
 868-14  commission:
 868-15              (1)  shall adopt vehicle emissions inspection and
 868-16  maintenance requirements for certain areas as required by federal
 868-17  law or regulation; and
 868-18              (2)  may adopt vehicle emissions inspection and
 868-19  maintenance requirements for counties not subject to a specific
 868-20  federal requirement in response to a formal request by resolutions
 868-21  adopted by the county and the most populous municipality within the
 868-22  county according to the most recent federal decennial census.
 868-23        (d)  A program initiated under this section may not include
 868-24  registration-based enforcement unless the Texas Department of
 868-25  Transportation elects to include the program in its registration
 868-26  enforcement system.
 868-27        (e)  On adoption of a resolution by the commission and after
  869-1  proper notice, the Texas Department of Transportation shall
  869-2  implement a system that requires, as a condition of registering a
  869-3  vehicle under Section 2, Chapter 88, General Laws, Acts of the 41st
  869-4  Legislature, 2nd Called Session, 1929 (Article 6675a-2, Vernon's
  869-5  Texas Civil Statutes), in a county that is included in a vehicle
  869-6  emissions inspection and maintenance program under Section 142,
  869-7  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
  869-8  Texas Civil Statutes), that the owner of the vehicle hold a valid
  869-9  vehicle emissions inspection certificate issued for the vehicle
 869-10  under that Act within the 12 months preceding the application for
 869-11  registration.  The Texas Department of Transportation shall
 869-12  implement such a system when it is required by any provision of
 869-13  federal or state law, including any provision of the Texas air
 869-14  quality state implementation plan.  The commission may require or
 869-15  accept verification of compliance other than a vehicle inspection
 869-16  certificate.  The alternative verification of compliance shall be
 869-17  in a form determined through joint rule making by the commission
 869-18  and the Texas Department of Transportation.
 869-19        (f)  The commission may assess fees for vehicle
 869-20  emissions-related inspections performed at inspection or
 869-21  reinspection facilities authorized and licensed by the commission
 869-22  in amounts reasonably necessary to recover the costs of developing,
 869-23  administering, evaluating, and enforcing the vehicle emissions
 869-24  inspection and maintenance program.  If the program relies on
 869-25  privately operated or contractor-operated inspection or
 869-26  reinspection stations, an appropriate portion of the fee as
 869-27  determined by commission rule may be retained by the station owner
  870-1  or operator to recover the cost of performing the inspections and
  870-2  provide a reasonable margin of profit.  Any portion of the fee
  870-3  collected by the board is a Clean Air Act fee under Section 30.077.
  870-4        (g)  The commission shall examine the efficacy of annually
  870-5  inspecting diesel vehicles for compliance with applicable federal
  870-6  emission standards, compliance with an opacity or other
  870-7  emissions-related standard established by commission rule, or both
  870-8  and shall implement that inspection program if the commission
  870-9  determines the program would minimize emissions.  For purposes of
 870-10  this subsection, a diesel engine not used in a vehicle registered
 870-11  for use on public highways is not a diesel vehicle.
 870-12        (h)  The commission may not establish vehicle fuel content
 870-13  standards to provide for vehicle fuel content for clean motor
 870-14  vehicle fuels other than those standards promulgated by the United
 870-15  States Environmental Protection Agency unless specifically
 870-16  authorized by the legislature or unless it is demonstrated to be
 870-17  necessary for the attainment of federal ozone ambient air quality
 870-18  standards or, following appropriate health studies and in
 870-19  consultation with the Texas Department of Health, it is determined
 870-20  to be necessary for the protection of public health.  (Sec.
 870-21  382.037, Health and Safety Code.)
 870-22        Sec. 30.032.  Attainment Program.  (a)  The commission shall
 870-23  coordinate with federal, state, and local transportation planning
 870-24  agencies to develop and implement transportation programs and other
 870-25  measures necessary to demonstrate and maintain attainment of
 870-26  national ambient air quality standards and to protect the public
 870-27  from exposure to hazardous air contaminants from motor vehicles.
  871-1        (b)  Participating agencies include the Texas Department of
  871-2  Transportation and metropolitan planning organizations designated
  871-3  by the governor.  (Sec. 382.039, Health and Safety Code.)
  871-4            (Sections 30.033-30.050 reserved for expansion)
  871-5                        SUBCHAPTER C.  PERMITS
  871-6        Sec. 30.051.  Permitting Authority of Commission; Rules.
  871-7  (a)  The commission may issue a permit:
  871-8              (1)  to construct a new facility or modify an existing
  871-9  facility that may emit air contaminants; or
 871-10              (2)  to operate a federal source.
 871-11        (b)  The commission may issue:
 871-12              (1)  special permits for certain facilities;
 871-13              (2)  a general permit for numerous similar sources; or
 871-14              (3)  a single permit for multiple facilities located at
 871-15  the same site.
 871-16        (c)  The commission may issue a federal operating permit for
 871-17  a source in violation only if the operating permit incorporates a
 871-18  compliance plan for the source, as equipped by Section 503 of the
 871-19  federal Clean Air Act (42 U.S.C.  Section 7661b), as added by
 871-20  Section 501 of the federal Clean Air Act Amendments of 1990
 871-21  (Pub. L. No. 101-549) and any rules adopted by the commission, as a
 871-22  condition of the permit.
 871-23        (d)  The commission shall adopt rules as necessary to comply
 871-24  with changes in federal law or regulations applicable to permits
 871-25  issued under this chapter.  (Sec. 382.051, Health and Safety Code.)
 871-26        Sec. 30.052.  Permit Consolidation and Amendment.  (a)  The
 871-27  commission may consolidate into a single permit:
  872-1              (1)  any permits, special permits, or exemptions for a
  872-2  facility or source issued by the Texas Air Control Board before
  872-3  December 1, 1991; or
  872-4              (2)  any permit issued by the Texas Air Control Board
  872-5  or commission on or after December 1, 1991, with any permits,
  872-6  special permits, or exemptions issued or qualified for by that
  872-7  date.
  872-8        (b)  Consistent with the rules adopted under Subsection (d)
  872-9  and the limitations of this chapter, including limitations that
 872-10  apply to the modification of an existing facility, the commission
 872-11  may amend, revise, or modify a permit.
 872-12        (c)  The commission may allow changes within a permitted
 872-13  facility or a facility that has filed a timely and complete
 872-14  application for a federal operating permit under Section 30.062
 872-15  without requiring a permit revision if:
 872-16              (1)  the changes are not modifications under any
 872-17  provision of Title I of the federal Clean Air Act Amendments of
 872-18  1990 (Pub. L. No. 101-549);
 872-19              (2)  the changes do not cause emissions in excess of
 872-20  emissions allowable under the permit;
 872-21              (3)  the changes do not alter any permit condition; and
 872-22              (4)  the facility notifies the commission in writing at
 872-23  least seven days in advance of the proposed changes, unless the
 872-24  commission by rule provides a different time frame for emergencies.
 872-25        (d)  The commission by rule shall develop criteria and
 872-26  administrative procedures to implement Subsections (b) and (c).
 872-27        (e)  When multiple facilities have been consolidated into a
  873-1  single permit under this section and the consolidated permit is
  873-2  reopened for consideration of an amendment relating to one or more
  873-3  facilities authorized by that permit, the permit is not considered
  873-4  reopened with respect to facilities for which an amendment,
  873-5  revision, or modification is not sought unless this chapter
  873-6  specifically authorizes or requires that additional reopening in
  873-7  order to protect the public's health and physical property.  (Sec.
  873-8  382.0511, Health and Safety Code.)
  873-9        Sec. 30.053.  Modification of Existing Facility.  In
 873-10  determining whether a proposed change at an existing facility is a
 873-11  modification, the commission may not consider the effect on
 873-12  emissions of:
 873-13              (1)  any air pollution control method applied to a
 873-14  source; or
 873-15              (2)  any decreases in emissions from other sources.
 873-16  (Sec. 382.0512, Health and Safety Code.)
 873-17        Sec. 30.054.  Permit Conditions.  The commission may
 873-18  establish by rule and enforce permit conditions consistent with
 873-19  this chapter and rules adopted by the commission.  (Sec. 382.0513,
 873-20  Health and Safety Code.)
 873-21        Sec. 30.055.  Sampling and Monitoring.  The commission may
 873-22  require, at the expense of the permit holder and as a condition of
 873-23  the permit:
 873-24              (1)  sampling and monitoring of a permitted source or
 873-25  facility; and
 873-26              (2)  a regular periodic report of sampling and
 873-27  monitoring results.  (Sec. 382.0514, Health and Safety Code.)
  874-1        Sec. 30.056.  Application for Permit.  A person applying for
  874-2  a permit shall submit to the commission:
  874-3              (1)  a permit application;
  874-4              (2)  copies of all plans and specifications necessary
  874-5  to determine if the facility or source will comply with applicable
  874-6  federal and state air control statutes, rules, and regulations and
  874-7  the intent of this chapter; and
  874-8              (3)  any other information the commission considers
  874-9  necessary.  (Sec. 382.0515, Health and Safety Code.)
 874-10        Sec. 30.057.  Notice to State Senator and Representative.  On
 874-11  receiving an application for a construction permit, a special
 874-12  permit, or an operating permit for a facility that may emit air
 874-13  contaminants, the commission shall send notice of the application
 874-14  to the state senator and representative who represent the area in
 874-15  which the facility is or will be located.  (Sec. 382.0516, Health
 874-16  and Safety Code.)
 874-17        Sec. 30.058.  Determination of Administrative Completion of
 874-18  Application.  The commission shall determine when an application
 874-19  filed under Section 30.059 or Section 30.062 is administratively
 874-20  complete.  On determination, the commission by mail shall notify
 874-21  the applicant and any interested party who has requested
 874-22  notification.  If the number of interested parties who have
 874-23  requested notification makes it impracticable for the commission to
 874-24  notify those parties by mail, the commission shall notify those
 874-25  parties by publication using the method prescribed by Section
 874-26  2.206(b).  (Sec. 382.0517, Health and Safety Code.)
 874-27        Sec. 30.059.  Preconstruction Permit.  (a)  Before work is
  875-1  begun on the construction of a new facility or a modification of an
  875-2  existing facility that may emit air contaminants, the person
  875-3  planning the construction or modification must obtain a permit from
  875-4  the commission.
  875-5        (b)  The commission shall grant within a reasonable time a
  875-6  permit to construct or modify a facility if, from the information
  875-7  available to the commission, including information presented at any
  875-8  hearing held under Section 30.066(d), the commission finds:
  875-9              (1)  the proposed facility for which a permit or a
 875-10  special permit is sought will use at least the best available
 875-11  control technology, considering the technical practicability and
 875-12  economic reasonableness of reducing or eliminating the emissions
 875-13  resulting from the facility; and
 875-14              (2)  no indication that the emissions from the facility
 875-15  will contravene the intent of this chapter, including protection of
 875-16  the public's health and physical property.
 875-17        (c)  In considering the issuance, amendment, or renewal of a
 875-18  permit, the commission may consider any adjudicated decision or
 875-19  compliance proceeding within the five years before the date on
 875-20  which the application was filed that addressed the applicant's past
 875-21  performance and compliance with the laws of this state, another
 875-22  state, or the United States governing air contaminants or with the
 875-23  terms of any permit or order issued by the commission.
 875-24        (d)  If the commission finds that the emissions from the
 875-25  proposed facility will contravene the standards under Subsection
 875-26  (b) or will contravene the intent of this chapter, the commission
 875-27  may not grant the permit or a special permit and shall set out in a
  876-1  report to the applicant its specific objections to the submitted
  876-2  plans of the proposed facility.
  876-3        (e)  If the person applying for a permit or a special permit
  876-4  makes the alterations in the person's plans and specifications to
  876-5  meet the commission's specific objections, the commission shall
  876-6  grant the permit or special permit.  If the person fails or refuses
  876-7  to alter the plans and specifications, the commission may not grant
  876-8  the permit or special permit.  The commission may refuse to accept
  876-9  a person's new application until the commission's objections to the
 876-10  plans previously submitted by that person are satisfied.
 876-11        (f)  A person may operate a facility or source under a permit
 876-12  issued under this section if:
 876-13              (1)  the facility or source is not required to obtain a
 876-14  federal operating permit under Section 30.062; and
 876-15              (2)  within the time and in the manner prescribed by
 876-16  commission rule, the permit holder demonstrates that:
 876-17                    (A)  the facility complies with all terms of the
 876-18  existing preconstruction permit; and
 876-19                    (B)  operation of the facility or source will not
 876-20  violate the intent of this chapter or standards adopted by the
 876-21  commission.
 876-22        (g)  Subsections (a)-(d) do not apply to a person who has
 876-23  executed a contract or has begun construction for an addition,
 876-24  alteration, or modification to a new or an existing facility on or
 876-25  before August 30, 1971, and who has complied with the requirements
 876-26  of the law from which former Section 382.060, Health and Safety
 876-27  Code, was derived as it existed on November 30, 1991.  To qualify
  877-1  for any exemption under this subsection, a contract may not have a
  877-2  beginning construction date later than February 29, 1972.  (Sec.
  877-3  382.0518, Health and Safety Code.)
  877-4        Sec. 30.060.  Permit to Construct or Modify Facility Within
  877-5  3,000 Feet of School.  In considering the issuance of a permit to
  877-6  construct or modify a facility within 3,000 feet of an elementary,
  877-7  junior high, or senior high school, the commission shall consider
  877-8  possible adverse short-term or long-term side effects of air
  877-9  contaminants or nuisance odors from the facility on the individuals
 877-10  attending the school facilities.  (Sec. 382.052, Health and Safety
 877-11  Code.)
 877-12        Sec. 30.061.  Prohibition on Issuance of Construction Permit
 877-13  for Lead Smelting Plant at Certain Locations.  (a)  The commission
 877-14  may not grant a construction permit for a lead smelting plant at a
 877-15  site:
 877-16              (1)  located within 3,000 feet of an individual's
 877-17  residence; and
 877-18              (2)  at which lead smelting operations have not been
 877-19  conducted before August 31, 1987.
 877-20        (b)  This section does not apply to:
 877-21              (1)  a modification of a lead smelting plant in
 877-22  operation on August 31, 1987;
 877-23              (2)  a lead smelting plant or modification of a plant
 877-24  with the capacity to produce not more than 200 pounds of lead each
 877-25  hour; or
 877-26              (3)  a lead smelting plant that, when the plant began
 877-27  operation, was located more than 3,000 feet from the nearest
  878-1  residence.
  878-2        (c)  In this section, "lead smelting plant" means a facility
  878-3  operated as a smeltery for processing lead.  (Sec. 382.053, Health
  878-4  and Safety Code.)
  878-5        Sec. 30.062.  Federal Operating Permit.  A person may not
  878-6  operate a federal source unless the person has obtained a federal
  878-7  operating permit from the commission under Sections 30.063 and
  878-8  30.064.  (Sec. 382.054, Health and Safety Code.)
  878-9        Sec. 30.063.  Administration and Enforcement of Federal
 878-10  Operating Permit.  (a)  The commission may:
 878-11              (1)  require a federal source subject to Title III of
 878-12  the federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549)
 878-13  to comply with that Act and regulations adopted under that Act;
 878-14              (2)  require an existing facility or source to use, at
 878-15  a minimum, any applicable maximum achievable control technology
 878-16  required by the board or by the United States Environmental
 878-17  Protection Agency;
 878-18              (3)  require a new or modified facility or source
 878-19  subject to Title III of the federal Clean Air Act Amendments of
 878-20  1990 (Pub. L. No. 101-549) to use, at a minimum, the more stringent
 878-21  of:
 878-22                    (A)  the best available control technology,
 878-23  considering the technical practicability and economic
 878-24  reasonableness of reducing or eliminating emissions from the
 878-25  proposed facility or source; or
 878-26                    (B)  any applicable maximum achievable control
 878-27  technology (MACT), including any MACT developed pursuant to Section
  879-1  112(g) of the federal Clean Air Act (42 U.S.C. Section 7412), as
  879-2  amended by Section 301 of the federal Clean Air Act Amendments of
  879-3  1990 (Pub. L. No. 101-549), required by the commission or by the
  879-4  United States Environmental Protection Agency;
  879-5              (4)  establish maximum achievable control technology
  879-6  requirements on a case-by-case basis if the United States
  879-7  Environmental Protection Agency does not adopt those requirements;
  879-8              (5)  issue initial permits with terms not to exceed
  879-9  five years for federal sources under Title IV or V of the federal
 879-10  Clean Air Act Amendments of 1990 (Pub. L. No. 101-549), with
 879-11  five-year terms for all subsequently issued or renewed permits;
 879-12              (6)  administer the use of emissions allowances under
 879-13  Section 408 of the federal Clean Air Act (42 U.S.C. Section 7651g),
 879-14  as amended by Section 401 of the federal Clean Air Act Amendments
 879-15  of 1990 (Pub. L. No. 101-549);
 879-16              (7)  reopen and revise an affected federal permit with
 879-17  a term of three years or more remaining in order to incorporate
 879-18  requirements under the federal Clean Air Act (42 U.S.C. Section
 879-19  7401 et seq.) adopted after the permit is issued; and
 879-20              (8)  incorporate a federal implementation plan as a
 879-21  condition of a permit issued by the commission.
 879-22        (b)  The commission by rule shall provide for objection by
 879-23  the administrator to the issuance of any operating or general
 879-24  permit subject to Title V of the federal Clean Air Act Amendments
 879-25  of 1990 (Pub. L. No. 101-549) and shall authorize the administrator
 879-26  to revoke and reissue, terminate, or modify a permit.
 879-27        (c)  This section does not affect the permit requirements of
  880-1  Section 30.059, except that the commission may consolidate with an
  880-2  existing permit issued under this section a permit required by
  880-3  Section 30.059.
  880-4        (d)  Subsection (a)(3) does not prohibit the applicability of
  880-5  at least the best available control technology to a new or modified
  880-6  facility or source under Section 30.059(b)(1).
  880-7        (e)  This section is effective upon publication of notice of
  880-8  approval of permitting program under the federal Clean Air Act
  880-9  Amendments of 1990 (Pub. L. No. 101-549).  (Sec. 382.0541, Health
 880-10  and Safety Code.)
 880-11        Sec. 30.064.  Issuance of Federal Operating Permit; Appeal of
 880-12  Delay.  (a)  The commission shall grant a permit required by
 880-13  Section 30.062 not later than 18 months after the date on which the
 880-14  commission receives an administratively complete application if,
 880-15  from information available to the commission, including information
 880-16  presented at any hearing held under Section 30.067, the commission
 880-17  finds that the facility or source for which the permit is sought
 880-18  meets the requirements of Subsection (b).
 880-19        (b)  A facility or source is eligible for a permit required
 880-20  by Section 30.062 if:
 880-21              (1)  emissions from the facility or source will comply
 880-22  with the intent of this chapter, including protection of the
 880-23  public's health and physical property;
 880-24              (2)  the facility or source will use, at a minimum, any
 880-25  applicable maximum achievable control technology required by the
 880-26  commission or by the United States Environmental Protection Agency;
 880-27              (3)  for a new or modified source or facility subject
  881-1  to Title III of the federal Clean Air Act Amendments of 1990
  881-2  (Pub. L. No. 101-549), the source or facility will use, at a
  881-3  minimum, the more stringent of:
  881-4                    (A)  the best available control technology,
  881-5  considering the technical practicability and economic
  881-6  reasonableness of reducing or eliminating the emissions from the
  881-7  proposed facility or source; or
  881-8                    (B)  any applicable maximum achievable control
  881-9  technology required by the commission or by the United States
 881-10  Environmental Protection Agency; and
 881-11              (4)  emissions from the facility or source will comply
 881-12  with all applicable requirements of:
 881-13                    (A)  Title III of the federal Clean Air Act
 881-14  Amendments of 1990 (Pub. L. No.  101-549);
 881-15                    (B)  Title IV of the federal Clean Air Act
 881-16  Amendments of 1990 (Pub. L. No.  101-549);
 881-17                    (C)  Sections 111 and 112 of the federal Clean
 881-18  Air Act (42 U.S.C. Sections 7411 and 7412);
 881-19                    (D)  Parts C and D of Title I of the federal
 881-20  Clean Air Act (42 U.S.C.  Sections 7470 et seq. and 7501 et seq.);
 881-21                    (E)  the state implementation plan requirements
 881-22  approved by the United States Environmental Protection Agency;
 881-23                    (F)  this chapter and rules adopted under this
 881-24  chapter; and
 881-25                    (G)  the federal Clean Air Act (42 U.S.C. Section
 881-26  7401 et seq.), as revised.
 881-27        (c)  If the commission does not act on a permit application
  882-1  or permit renewal application within 18 months of the date on which
  882-2  the commission receives an administratively complete application, a
  882-3  person affected by the commission's failure to act may obtain
  882-4  judicial review under Section 2.151.  A reviewing court may order
  882-5  the commission to act on the application without additional delay
  882-6  if it finds that the commission's failure to act is arbitrary or
  882-7  unreasonable.
  882-8        (d)  In considering the issuance, amendment, or renewal of a
  882-9  permit, the commission may consider any adjudicated decision or
 882-10  compliance proceeding within the five years before the date on
 882-11  which the application was filed that addressed the applicant's past
 882-12  performance and compliance with the laws of this state, another
 882-13  state, or the United States governing air contaminants or with the
 882-14  terms of any permit or order issued by the commission.
 882-15        (e)  Subsection (b)(3) does not prohibit the applicability of
 882-16  at least the best available control technology to a new or modified
 882-17  facility or source under Section 30.059(b)(1).
 882-18        (f)  This section is effective on publication of notice of
 882-19  approval of permitting program under the federal Clean Air Act
 882-20  Amendments of 1990 (Pub. L. No. 101-549).  (Sec. 382.0542, Health
 882-21  and Safety Code.)
 882-22        Sec. 30.065.  Review and Renewal of Permit.  (a)  Subject to
 882-23  Section 30.063(a)(5), a permit issued or renewed by the commission
 882-24  on or after December 1, 1991, is subject to review every five years
 882-25  after the date of issuance to determine whether the authority to
 882-26  operate should be renewed.  A permit issued before December 1,
 882-27  1991, is subject to review 15 years after the date of issuance.
  883-1        (b)  The commission by rule shall establish:
  883-2              (1)  a deadline by which the holder of a permit must
  883-3  submit an application for review of the permit;
  883-4              (2)  the general requirements that must be met by the
  883-5  applicant; and
  883-6              (3)  the procedures for reviewing and acting on review
  883-7  applications.
  883-8        (c)  Not less than 180 days before the date on which the
  883-9  renewal application is due, the commission shall provide written
 883-10  notice to the permit holder, by registered or certified mail, that
 883-11  the permit is scheduled for review in accordance with this section.
 883-12  The notice must include a description of the procedure for filing a
 883-13  review application and the information to be included in the
 883-14  application.
 883-15        (d)  In determining whether and under which conditions a
 883-16  permit should be renewed, the commission shall consider, at a
 883-17  minimum:
 883-18              (1)  whether the facility is or has been in substantial
 883-19  compliance with this chapter and the terms of the existing permit;
 883-20              (2)  the condition and effectiveness of existing
 883-21  emission control equipment and practices; and
 883-22              (3)  all applicable requirements of the federal Clean
 883-23  Air Act Amendments of 1990 (Pub. L. No. 101-549).
 883-24        (e)  The commission shall impose as a condition for renewal
 883-25  of a permit any applicable requirements of Title V of the federal
 883-26  Clean Air Act Amendments of 1990 (Pub. L. No. 101-549), as well as
 883-27  those requirements determined to be economically reasonable and
  884-1  technically practicable considering the age of the facility and the
  884-2  effect of its emissions on the surrounding area.  The commission
  884-3  may not impose requirements less stringent than those of the
  884-4  existing permit unless the commission determines that a proposed
  884-5  change will meet the requirements of Sections 30.059 and 30.063.
  884-6        (f)  In this subsection, a "reasonable time" may not exceed
  884-7  the time limitations established by the United States Environmental
  884-8  Protection Agency for federal sources under Title IV or V of the
  884-9  federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549).
 884-10  The commission shall renew a permit within a reasonable time after
 884-11  the date on which a complete application is filed or, if the
 884-12  commission determines that the facility will not meet the
 884-13  requirements for renewing the permit, shall:
 884-14              (1)  set out in a report to the applicant the basis for
 884-15  the commission's determination; and
 884-16              (2)  establish a schedule, to which the applicant must
 884-17  adhere in meeting the commission's requirements, that:
 884-18                    (A)  includes a final date for meeting the
 884-19  commission's requirements; and
 884-20                    (B)  requires completion of that action as
 884-21  expeditiously as possible.
 884-22        (g)  If the applicant meets the commission's requirements in
 884-23  accordance with the schedule, the commission shall renew the
 884-24  permit.  If the applicant does not meet those requirements in
 884-25  accordance with the schedule, the applicant must show in a
 884-26  contested case proceeding why the permit should not expire
 884-27  immediately.  The applicant's permit is effective until:
  885-1              (1)  the final date specified by the commission's
  885-2  report to the applicant;
  885-3              (2)  the existing permit is renewed; or
  885-4              (3)  the date specified by a commission order issued
  885-5  following a contested case proceeding held under this section.
  885-6        (h)  If the holder of a permit to whom the commission has
  885-7  mailed notice of this section does not apply for review of that
  885-8  permit by the date specified by the commission under this section:
  885-9              (1)  a permit issued on or after December 1, 1991,
 885-10  expires five years after the date on which the permit is originally
 885-11  issued or, if the permit has been renewed, five years after the
 885-12  date on which the permit is last renewed; and
 885-13              (2)  a permit issued before December 1, 1991, expires
 885-14  15 years after the date on which the permit is originally issued
 885-15  or, if the permit has been renewed before December 1, 1991, 15
 885-16  years after the date on which the permit is last renewed.
 885-17        (i)  This section does not affect the commission's authority
 885-18  to begin enforcement action under Sections 30.082-30.084.  (Sec.
 885-19  382.055, Health and Safety Code.)
 885-20        Sec. 30.066.  Notice of Intent to Obtain Permit or Permit
 885-21  Review; Hearing.  (a)  An applicant for a permit under Section
 885-22  30.059 or 30.062 or a permit renewal review under Section 30.065
 885-23  shall publish notice of intent to obtain the permit or permit
 885-24  review.  The applicant shall publish the notice at least once in a
 885-25  newspaper of general circulation in the municipality in which the
 885-26  facility is located or is proposed to be located or in the
 885-27  municipality nearest to the location or proposed location of the
  886-1  facility.  The commission by rule shall prescribe when notice must
  886-2  be published and may require publication of additional notice.
  886-3        (b)  The notice must include:
  886-4              (1)  a description of the location or proposed location
  886-5  of the facility;
  886-6              (2)  a statement that a person who may be affected by
  886-7  emissions of air contaminants from the facility or proposed
  886-8  facility is entitled to request a hearing from the commission;
  886-9              (3)  a description of the manner in which the
 886-10  commission may be contacted for further information; and
 886-11              (4)  any other information the commission by rule
 886-12  requires.
 886-13        (c)  At the site of a facility or proposed facility for which
 886-14  a permit application or permit review application is submitted, the
 886-15  applicant shall place a sign declaring the filing of an application
 886-16  for a permit or permit review for a facility at the site and
 886-17  stating the manner in which the board may be contacted for further
 886-18  information.  The commission shall adopt any rule necessary to
 886-19  carry out this subsection.
 886-20        (d)  Except as provided by Section 30.067, the commission or
 886-21  its delegate shall hold a public hearing on the permit application
 886-22  or permit review application before granting the permit or renewal
 886-23  if a person who may be affected by the emissions, or a member of
 886-24  the legislature from the general area in which the facility or
 886-25  proposed facility is located, requests a hearing within the period
 886-26  set by commission rule.  The commission is not required to hold a
 886-27  hearing if the basis of a request by a person who may be affected
  887-1  is determined to be unreasonable.  (Sec. 382.056, Health and Safety
  887-2  Code.)
  887-3        Sec. 30.067.  Federal Operating Permit:  Hearing.  (a)  The
  887-4  following public hearings shall be conducted under this section
  887-5  only and not under the Administrative Procedure and Texas Register
  887-6  Act (Article 6252-13a, Vernon's Texas Civil Statutes):
  887-7              (1)  a public hearing on a permit application for a
  887-8  federal operating permit under Sections 30.062-30.064 that is not
  887-9  subject to Section 30.059; or
 887-10              (2)  a public hearing on an application for renewal of
 887-11  a federal operating permit under Section 30.065.
 887-12        (b)  On determination that an application for a federal
 887-13  operating permit under Sections 30.062-30.064 or a renewal of a
 887-14  federal operating permit under Section 30.065 is administratively
 887-15  complete and before the beginning of the public comment period, the
 887-16  commission shall prepare a draft permit.
 887-17        (c)  The commission or its designee shall hold a public
 887-18  hearing on a permit or renewal application before granting the
 887-19  permit or renewal if within the public comment period a person who
 887-20  may be affected by the emissions or a member of the legislature
 887-21  from the general area in which the facility is located requests a
 887-22  hearing.  The commission is not required to hold a hearing if the
 887-23  basis of the request by a person who may be affected is determined
 887-24  to be unreasonable.
 887-25        (d)  The following shall be available for public inspection
 887-26  in at least one location in the general area where the facility is
 887-27  located:
  888-1              (1)  information submitted by the application, subject
  888-2  to applicable confidentiality laws;
  888-3              (2)  the executive director's analysis of the proposed
  888-4  action; and
  888-5              (3)  a copy of the draft permit.
  888-6        (e)  The commission shall hold a public comment period on a
  888-7  permit application or permit renewal application under Sections
  888-8  30.062-30.064 or 30.065.  Any person may submit a written statement
  888-9  to the commission during the public comment period.  The executive
 888-10  director shall receive public comment for 30 days after the date on
 888-11  which notice of the public comment period is published.  The
 888-12  executive director may extend or reopen the comment period if the
 888-13  director finds an extension or reopening to be appropriate.
 888-14        (f)  Notice of the public comment period and opportunity for
 888-15  a hearing under this section shall be published in accordance with
 888-16  Section 30.066.
 888-17        (g)  Any person may submit an oral or written statement
 888-18  concerning the application at the hearing.  The individual holding
 888-19  the hearing may set reasonable limits on the time allowed for oral
 888-20  statements at the hearing.  The public comment period extends to
 888-21  the close of the hearing and may be further extended or reopened if
 888-22  the executive director finds an extension or reopening to be
 888-23  appropriate.
 888-24        (h)  Any person, including the applicant, who believes that
 888-25  any condition of the draft permit is inappropriate or that the
 888-26  executive director's preliminary decision to issue or deny a permit
 888-27  is inappropriate must raise all reasonably ascertainable issues and
  889-1  submit all reasonably available arguments supporting that position
  889-2  by the end of the public comment period.
  889-3        (i)  The executive director shall consider all comments
  889-4  received during the public comment period and at the public hearing
  889-5  in determining whether to issue the permit and what conditions
  889-6  should be included if a permit is issued.
  889-7        (j)  This section is effective upon publication of notice of
  889-8  approval of permitting program under the federal Clean Air Act
  889-9  Amendments of 1990 (Pub. L. No. 101-549).  (Sec. 382.0561, Health
 889-10  and Safety Code.)
 889-11        Sec. 30.068.  Notice of Decision.  (a)  The executive
 889-12  director shall send notice of a decision on a federal operating
 889-13  permit by first-class mail to the applicant and all persons who
 889-14  comment during the public comment period or at the public hearing.
 889-15  The notice shall include a response to any comment submitted during
 889-16  the public comment period and shall identify any change in the
 889-17  conditions of the draft permit and the reasons for the change.
 889-18        (b)  The notice required by Subsection (a) shall:
 889-19              (1)  state that any person affected by the decision of
 889-20  the executive director may appeal the decision to the commission
 889-21  not later than the 30th day after the date on which notice was
 889-22  mailed;
 889-23              (2)  state the date by which an appeal must be filed;
 889-24              (3)  explain the appeal process and explain that an
 889-25  appeal is a contested case hearing before the commission; and
 889-26              (4)  state that a letter to the commission stating that
 889-27  the person is appealing the decision constitutes an appeal of the
  890-1  decision.
  890-2        (c)  This section is effective upon publication of notice of
  890-3  approval of permitting program under the federal Clean Air Act
  890-4  Amendments of 1990 (Pub. L. No. 101-549).  (Sec. 382.0562, Health
  890-5  and Safety Code.)
  890-6        Sec. 30.069.  Appeal to Board.  (a)  Any person, including
  890-7  the applicant, affected by a decision of the executive director
  890-8  under Section 30.067 may appeal the decision to the commission not
  890-9  later than the 30th day after the date on which notice was mailed.
 890-10  The issues on appeal must be identified with specificity in the
 890-11  request for a contested case hearing.
 890-12        (b)  An appeal under this section is a contested case hearing
 890-13  under the Administrative Procedure and Texas Register Act (Article
 890-14  6252-13a, Vernon's Texas Civil Statutes).
 890-15        (c)  The filing of an appeal to the commission under this
 890-16  section does not affect a permit issued by the executive director.
 890-17  A final order by the commission reversing or modifying the
 890-18  executive director's decision takes effect when it becomes final
 890-19  and appealable.
 890-20        (d)  This section is effective upon publication of notice of
 890-21  approval of permitting program under the federal Clean Air Act
 890-22  Amendments of 1990 (Pub. L. No. 101-549).  (Sec. 382.0563, Health
 890-23  and Safety Code.)
 890-24        Sec. 30.070.  Notification to Other Governmental Entities.
 890-25  The commission by rule shall allow for notification of and review
 890-26  by the administrator and affected states of any permit application
 890-27  or draft permit prepared under Sections 30.062-30.064 if
  891-1  notification and review is requested.  (Sec. 382.0564, Health and
  891-2  Safety Code.)
  891-3        Sec. 30.071.  Exemption.  (a)  Consistent with Section
  891-4  30.052, the commission by rule may exempt from the requirements of
  891-5  Section 30.059 and Sections 30.062-30.064 changes within a
  891-6  permitted facility and certain types of facilities if it is found
  891-7  on investigation that such changes or types of facilities will not
  891-8  make a significant contribution of air contaminants to the
  891-9  atmosphere, except as prohibited by the federal Clean Air Act
 891-10  Amendments of 1990 (Pub. L. No.  101-549).  The commission may not
 891-11  exempt any source or facility or any modification of an existing
 891-12  facility defined as "major" under the federal Clean Air Act
 891-13  Amendments of 1990 (Pub. L. No. 101-549) or regulations adopted
 891-14  under that Act.
 891-15        (b)  The commission shall adopt rules specifically defining
 891-16  the terms and conditions for an exemption under this section in a
 891-17  nonattainment area as defined by Title I of the federal Clean Air
 891-18  Act (42 U.S.C. Section 7401 et seq.).  (Sec. 382.057, Health and
 891-19  Safety Code.)
 891-20        Sec. 30.072.  Limitation on Commission Exemption for
 891-21  Construction of Certain Concrete Plants.  (a)  A person may not
 891-22  begin construction on any concrete plant that performs wet
 891-23  batching, dry batching, or central mixing under an exemption
 891-24  adopted by the commission under Section 30.071 unless the person
 891-25  has complied with the notice and opportunity for hearing provisions
 891-26  under Section 30.066.
 891-27        (b)  This section does not apply to a concrete plant located
  892-1  temporarily in the right-of-way, or contiguous to the right-of-way,
  892-2  of a public works project.
  892-3        (c)  For purposes of this section, only those persons
  892-4  actually residing in a permanent residence within 440 yards of the
  892-5  proposed plant may request a hearing under Section 30.066(d) as a
  892-6  person who may be affected.  (Sec. 382.058, Health and Safety
  892-7  Code.)
  892-8        Sec. 30.073.  Revocation of Permit or Exemption.  (a)  The
  892-9  commission may revoke and reissue, terminate, or modify a permit or
 892-10  exemption issued under this chapter if the commission determines
 892-11  that:
 892-12              (1)  any of the terms of the permit or exemption are
 892-13  being violated; or
 892-14              (2)  emissions from the proposed facility will
 892-15  contravene air pollution control standards set by the commission or
 892-16  will contravene the intent of this chapter.
 892-17        (b)  The commission may:
 892-18              (1)  begin proceedings to revoke and reissue,
 892-19  terminate, or modify a permit if a violation at a facility is
 892-20  continued after 180 days following the date on which the notice of
 892-21  violation is provided under Section 30.082; and
 892-22              (2)  consider good faith efforts to correct the
 892-23  violation in deciding whether to revoke and reissue, terminate, or
 892-24  modify a permit or exemption.  (Sec. 382.059, Health and Safety
 892-25  Code.)
 892-26        Sec. 30.074.  Denial of Application for Permit; Assistance
 892-27  Provided by Certain Former Employees.  (a)  The commission shall
  893-1  deny an application for the issuance, amendment, renewal, or
  893-2  transfer of a permit and may not issue, amend, renew, or transfer
  893-3  the permit if the commission determines that a former employee:
  893-4              (1)  participated personally and substantially as an
  893-5  employee in the commission's review, evaluation, or processing of
  893-6  the application before leaving employment with the commission; and
  893-7              (2)  after leaving employment with the commission,
  893-8  provided assistance to the applicant for the issuance, amendment,
  893-9  renewal, or transfer of the permit, including assistance with
 893-10  preparation or presentation of the application or legal
 893-11  representation of the applicant.
 893-12        (b)  The commission shall provide an opportunity for a
 893-13  hearing to an applicant before denying an application under this
 893-14  section.
 893-15        (c)  Action taken under this section does not prejudice any
 893-16  application other than an application in which the former employee
 893-17  provided assistance.
 893-18        (d)  In this section, "former employee" means a person:
 893-19              (1)  who was previously employed by the commission as a
 893-20  supervisory or exempt employee; and
 893-21              (2)  whose duties during employment with the commission
 893-22  included involvement in or supervision of the commission's review,
 893-23  evaluation, or processing of applications.  (Sec. 382.0591, Health
 893-24  and Safety Code.)
 893-25        Sec. 30.075.  Delegation of Powers and Duties.  The
 893-26  commission may delegate to the executive director the powers and
 893-27  duties under Sections 30.051-30.065, 30.071, and 30.073.  An
  894-1  applicant or a person affected by a decision of the executive
  894-2  director may appeal to the commission any decision made by the
  894-3  executive director under those sections.  (Sec. 382.061, Health and
  894-4  Safety Code.)
  894-5        Sec. 30.076.  Operating Permit Fee.  (a)  The commission
  894-6  shall adopt, charge, and collect an annual fee based on emissions
  894-7  for each source that either:
  894-8              (1)  is subject to permitting requirements of Title IV
  894-9  or V of the federal Clean Air Act Amendments of 1990 (Pub. L. No.
 894-10  101-549); or
 894-11              (2)  is based on plant operations, and the rate of
 894-12  emissions at the time the fee is due would be subject to the
 894-13  permitting requirements if the requirements were in effect on that
 894-14  date.
 894-15        (b)  Fees imposed under this section shall be at least
 894-16  sufficient to cover all reasonably necessary direct and indirect
 894-17  costs of developing and administering the permit program under
 894-18  Titles IV and V of the federal Clean Air Act Amendments of 1990
 894-19  (Pub. L. No. 101-549), including the reasonable costs of:
 894-20              (1)  reviewing and acting on any application for a
 894-21  Title IV or V permit;
 894-22              (2)  implementing and enforcing the terms and
 894-23  conditions of a Title IV or V permit, excluding any court costs or
 894-24  other costs associated with any enforcement action;
 894-25              (3)  emissions and ambient monitoring;
 894-26              (4)  preparing generally applicable regulations or
 894-27  guidance;
  895-1              (5)  modeling, analyses, and demonstrations; and
  895-2              (6)  preparing inventories and tracking emissions.
  895-3        (c)  The commission by rule may provide for the automatic
  895-4  annual increase of fees imposed under this section by the
  895-5  percentage, if any, by which the consumer price index for the
  895-6  preceding calendar year exceeds the consumer price index for
  895-7  calendar year 1989.  For purposes of this subsection:
  895-8              (1)  the consumer price index for any calendar year is
  895-9  the average of the Consumer Price Index for All Urban Consumers
 895-10  published by the United States Department of Labor as of the close
 895-11  of the 12-month period ending on August 31 of each calendar year;
 895-12  and
 895-13              (2)  the revision of the consumer price index that is
 895-14  most consistent with the consumer price index for calendar year
 895-15  1989 shall be used.
 895-16        (d)  The commission may not impose a fee for any amount of
 895-17  emissions of an air contaminant regulated under the federal Clean
 895-18  Air Act Amendments of 1990 (Pub. L. No. 101-549) in excess of 4,000
 895-19  tons per year from any source.
 895-20        (e)  This section does not restrict the authority of the
 895-21  commission under Section 2.176 to impose fees on sources not
 895-22  subject to the permitting requirements of Title IV or V of the
 895-23  federal Clean Air Act Amendments of 1990 (Pub. L. No. 101-549).
 895-24  (Sec. 382.0621, Health and Safety Code.)
 895-25        Sec. 30.077.  Clean Air Act Fees.  (a)  Clean Air Act fees
 895-26  consist of:
 895-27              (1)  fees collected by the commission under Sections
  896-1  2.176, 30.031, and 30.076 and as otherwise provided by law; and
  896-2              (2)  $2 of each advance payment collected by the
  896-3  Department of Public Safety for inspection certificates for
  896-4  vehicles other than mopeds under Section 141(c), Uniform Act
  896-5  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
  896-6  Statutes).
  896-7        (b)  Clean Air Act fees shall be deposited in the state
  896-8  treasury to the credit of the clean air fund and shall be used to
  896-9  safeguard the air resources of the state.  All unexpended and
 896-10  unobligated money remaining in the fund on the last day of each
 896-11  fiscal biennium shall be transferred to the credit of the general
 896-12  revenue fund.
 896-13        (c)  The commission shall request the appropriation of
 896-14  sufficient money to safeguard the air resources of the state,
 896-15  including payments to the Public Safety Commission for incidental
 896-16  costs of administering the vehicle emissions inspection and
 896-17  maintenance program, except that after the date of delegation of
 896-18  the state's permitting program under Title V of the federal Clean
 896-19  Air Act Amendments of 1990 (Pub. L. No. 101-549), fees collected
 896-20  under Section 30.076(a) may be appropriated only to cover costs of
 896-21  developing and administering the federal permit program under
 896-22  Titles IV and V of the federal Clean Air Act Amendments of 1990
 896-23  (Pub. L. No. 101-549).
 896-24        (d)(1)  Through the option of contracting for air pollution
 896-25  control services, including but not limited to compliance and
 896-26  permit inspections and complaint response, the board may utilize
 896-27  appropriated money to purchase services from units of local
  897-1  government meeting each of the following criteria:
  897-2                    (A)  the unit of local government received
  897-3  federal fiscal year 1990 funds from the United States Environmental
  897-4  Protection Agency pursuant to Section 105 of the federal Clean Air
  897-5  Act (42 U.S.C. Section 7405) for the operation of an air pollution
  897-6  program by formal agreement;
  897-7                    (B)  the local unit of government is in a
  897-8  federally designated nonattainment area subject to implementation
  897-9  plan requirements, including automobile emission inspection and
 897-10  maintenance programs, under Title I of the federal Clean Air Act
 897-11  Amendments of 1990 (Pub. L. No. 101-549); and
 897-12                    (C)  the local unit of government has not caused
 897-13  the United States Environmental Protection Agency to provide
 897-14  written notification that a deficiency in the quality or quantity
 897-15  of services provided by its air pollution program is jeopardizing
 897-16  compliance with a state implementation plan, a federal program
 897-17  delegation agreement, or any other federal requirement for which
 897-18  federal sanctions can be imposed.
 897-19              (2)  The commission may request appropriations of
 897-20  sufficient money to contract for services of local units of
 897-21  government meeting the eligibility criteria of this subsection to
 897-22  ensure that the combination of federal and state funds annually
 897-23  available for an air pollution program is equal to or greater than
 897-24  the program costs for the operation of an air quality program by
 897-25  the local unit of government.  The commission is encouraged to fund
 897-26  an air pollution program operated by a local unit of government
 897-27  meeting the eligibility criteria of this subsection in a manner the
  898-1  commission deems an effective means of addressing federal and state
  898-2  requirements.  The services to be provided by an eligible local
  898-3  unit of government under a contractual arrangement under this
  898-4  subsection shall be at least equal in quality and quantity to the
  898-5  services the local unit of government committed to provide in
  898-6  agreements under which it received its federal 1990 air pollution
  898-7  grant.  The commission and the local units of government meeting
  898-8  the eligibility criteria of this subsection may agree to more
  898-9  extensive contractual arrangements.
 898-10              (3)  Nothing in this subsection shall prohibit a local
 898-11  unit of government from voluntarily discontinuing an air pollution
 898-12  program and thereby relinquishing this responsibility to the state.
 898-13  (Sec. 382.0622, Health and Safety Code.)
 898-14        Sec. 30.078.  Issuance of Emergency Order Because of
 898-15  Catastrophe.  (a)  The commission or the executive director, on
 898-16  delegation of authority from the commission, by emergency order may
 898-17  authorize immediate action for the addition, replacement, or repair
 898-18  of facilities or control equipment necessitated by a catastrophe
 898-19  occurring in this state, and the emission of air contaminants
 898-20  during the addition, replacement, or repair of those facilities, if
 898-21  the actions and emissions are otherwise precluded under this
 898-22  chapter.
 898-23        (b)  An order issued under this section must:
 898-24              (1)  be limited to a reasonable time specified by the
 898-25  order;
 898-26              (2)  authorize action only on:
 898-27                    (A)  property on which the catastrophe occurred;
  899-1  or
  899-2                    (B)  other property that is owned by the owner or
  899-3  operator of the damaged facility and that produces the same
  899-4  intermediates, products, or by-products; and
  899-5              (3)  contain a schedule for submission of a complete
  899-6  application under Section 30.051.
  899-7        (c)  Under Subsection (b)(2)(B), the person applying for an
  899-8  emergency order must demonstrate that there will be no more than a
  899-9  de minimis increase in the predicted concentration of the air
 899-10  contaminants at or beyond the property line of the other property.
 899-11  The board shall review and act on an application submitted as
 899-12  provided by Subsection (b)(3) without regard to construction
 899-13  activity under an order under this section.
 899-14        (d)  To receive an emergency order under this section, a
 899-15  person must submit a sworn application to the board or executive
 899-16  director. The application must contain any information the
 899-17  commission requires and:
 899-18              (1)  a description of the catastrophe;
 899-19              (2)  a statement that:
 899-20                    (A)  the construction and emissions are essential
 899-21  to prevent loss of life, serious injury, severe property damage, or
 899-22  severe economic loss not attributable to the applicant's actions
 899-23  and are necessary for the addition, replacement, or repair of a
 899-24  facility or control equipment necessitated by the catastrophe;
 899-25                    (B)  there are no practicable alternatives to the
 899-26  proposed construction and emissions; and
 899-27                    (C)  the emissions will not cause or contribute
  900-1  to air pollution;
  900-2              (3)  an estimate of the dates on which the proposed
  900-3  construction or emissions, or both, will begin and end;
  900-4              (4)  an estimate of the date on which the facility will
  900-5  begin operation; and
  900-6              (5)  a description of the quantity and type of air
  900-7  contaminants proposed to be emitted.
  900-8        (e)  The commission or executive director may issue an
  900-9  emergency order under this section after providing the notice and
 900-10  opportunity for hearing that the commission or executive director
 900-11  considers practicable under the circumstances.  If the commission
 900-12  requires notice and hearing before issuing the order, it shall give
 900-13  notice not later than the 10th day before the date set for the
 900-14  hearing.
 900-15        (f)  Notice of the issuance of an emergency order shall be
 900-16  provided in accordance with commission rules.
 900-17        (g)  If the commission or executive director issues an
 900-18  emergency order under this section without a hearing, the order
 900-19  shall set a time and place for a hearing to be held before the
 900-20  commission or its designee as soon after the emergency order is
 900-21  issued as practicable.
 900-22        (h)  Section 2.206, relating to notice of a hearing, does not
 900-23  apply to a hearing on an emergency order, but such general notice
 900-24  of the hearing shall be given that in the judgment of the
 900-25  commission or the executive director is practicable under the
 900-26  circumstances.
 900-27        (i)  At or following the hearing, the commission shall
  901-1  affirm, modify, or set aside the emergency order.  A hearing on an
  901-2  emergency order shall be conducted in accordance with the
  901-3  Administrative Procedure and Texas Register Act (Article 6252-13a,
  901-4  Vernon's Texas Civil Statutes) and commission rules.
  901-5        (j)  In this section, "catastrophe" means an unforeseen
  901-6  event, including an act of God, an act of war, severe weather,
  901-7  explosions, fire, or similar occurrences beyond the reasonable
  901-8  control of the operator that makes a facility or its functionally
  901-9  related appurtenances inoperable.  (Sec. 382.063, Health and Safety
 901-10  Code.)
 901-11            (Sections 30.079-30.080 reserved for expansion)
 901-12               SUBCHAPTER D.  PENALTIES AND ENFORCEMENT
 901-13        Sec. 30.081.  Enforcement Proceedings.  The commission, or
 901-14  the executive director after notification to the commission, may
 901-15  cause legal proceedings to be instituted in a court of competent
 901-16  jurisdiction to compel compliance with this chapter or the
 901-17  commission's rules, orders, or other decisions.  (Sec. 382.081,
 901-18  Health and Safety Code.)
 901-19        Sec. 30.082.  Enforcement by Suit; Notice and Orders.
 901-20  (a)  If the executive director finds that a person has violated, is
 901-21  violating, or is threatening to violate any provision of this
 901-22  chapter or of any commission rule or order, the executive director
 901-23  shall within five days notify that person of the apparent
 901-24  violation.  Failure of the executive director to issue notice does
 901-25  not relieve a person of liability under this chapter.
 901-26        (b)  The commission or the executive director may cause a
 901-27  suit to be instituted in a district court for:
  902-1              (1)  injunctive relief to restrain the person from
  902-2  continuing the violation or threat of violation; or
  902-3              (2)  the assessment and recovery of a civil penalty as
  902-4  provided by Section 30.085(c); or
  902-5              (3)  both injunctive relief and civil penalty.
  902-6        (c)  Notwithstanding Subsection (b), if the apparent
  902-7  violation or threat of violation of a nonclerical requirement
  902-8  continues later than the 30th day after the date on which notice is
  902-9  received under Subsection (a), the executive director shall
 902-10  institute proceedings under Section 2.210(b) to issue an
 902-11  appropriate order providing for compliance within 180 days of the
 902-12  notice of the violation.
 902-13        (d)  Under Subsection (c) if the commission determines that
 902-14  good faith efforts to correct the violation have been made, the
 902-15  commission may adopt an order under Section 2.210(b) providing for
 902-16  compliance later than the 180th day after issuance of the notice
 902-17  under Subsection (a).  It is intended that "good faith effort" be
 902-18  strictly interpreted by the commission while giving due
 902-19  consideration to economic reasonableness and technical
 902-20  practicability.
 902-21        (e)  Notwithstanding Subsection (b) and except as provided by
 902-22  Subsection (f), if a violation of an order issued under Subsection
 902-23  (c) continues later than the 180th day after the date on which the
 902-24  original notice of violation is received, the commission or
 902-25  executive director shall:
 902-26              (1)  institute a suit, as provided by Subsection (b)
 902-27  for civil penalties and appropriate injunctive relief;
  903-1              (2)  begin an action under Section 30.073 to revoke a
  903-2  permit or exemption;
  903-3              (3)  begin an action for administrative penalties under
  903-4  Section 30.088; or
  903-5              (4)  pursue a combination of the remedies under this
  903-6  subsection.
  903-7        (f)  The commission or executive director shall cause a suit
  903-8  to be instituted as provided by Subsection (b) if a person:
  903-9              (1)  is alleged to be constructing or operating a
 903-10  facility at a new plant site without a permit in violation of state
 903-11  law; or
 903-12              (2)  has been the subject of two or more finally issued
 903-13  administrative penalty orders under this chapter for violations
 903-14  occurring at the same plant site within two years immediately
 903-15  before the first alleged violation currently under investigation at
 903-16  that site.
 903-17        (g)  Violations that were reported by the violator or
 903-18  violations consisting of errors in recordkeeping or in
 903-19  self-reporting submissions may not be considered in determining
 903-20  whether Subsection (f) applies.
 903-21        (h)  Even though the criteria of Subsection (f) are met, the
 903-22  attorney general's office and the executive director may agree to
 903-23  resolve any of the alleged violations, before or after referral, by
 903-24  administrative order issued by the appropriate regulatory agency
 903-25  with the approval of the attorney general.
 903-26        (i)  At the request of the commission or the executive
 903-27  director, the attorney general shall institute and conduct a suit
  904-1  in the name of the state for injunctive relief, recovery of the
  904-2  civil penalty, or both.
  904-3        (j)  The commission shall consult with the attorney general's
  904-4  office for assistance in determining whether referral to the
  904-5  attorney general for enforcement is mandatory under Subsection (f)
  904-6  or whether referral is appropriate for the disposition of
  904-7  enforcement matters under this chapter.  If referral is determined
  904-8  to be mandatory or appropriate, the commission shall consult with
  904-9  the attorney general's office for assistance in determining whether
 904-10  criminal or civil enforcement action should be taken.  The
 904-11  commission shall use all available enforcement options.  (Sec.
 904-12  382.082, Health and Safety Code.)
 904-13        Sec. 30.083.  Emergency Suit.  If an apparent violation or
 904-14  threat of violation of an order of the commission would materially
 904-15  affect human health and safety, a suit under Section 30.082 shall
 904-16  be immediately instituted.  (Sec. 382.083, Health and Safety Code.)
 904-17        Sec. 30.084.  Injunction.  (a)  On application for injunctive
 904-18  relief and a finding that a person is violating or threatening to
 904-19  violate any provision of this chapter or any commission rule or
 904-20  order, a district court shall grant the injunctive relief warranted
 904-21  by the facts.
 904-22        (b)  The court shall grant, without a bond or other
 904-23  undertaking by the commission, any prohibiting or mandatory
 904-24  injunctions the facts may warrant, including temporary restraining
 904-25  orders after notice and hearing, temporary injunctions, and
 904-26  permanent injunctions.
 904-27        (c)  The commission or the executive director may seek an
  905-1  injunction or cause a suit for injunctive relief to be instituted
  905-2  to stop:
  905-3              (1)  work on a facility that is:
  905-4                    (A)  being done without a construction permit,
  905-5  special permit, or exemption required under this chapter; or
  905-6                    (B)  in violation of the terms of a permit,
  905-7  special permit, or exemption issued under this chapter; and
  905-8              (2)  the operation of a facility that:
  905-9                    (A)  is operating without an operating permit
 905-10  required under this chapter; or
 905-11                    (B)  is operating in violation of the terms of an
 905-12  operating permit issued under this chapter.  (Sec. 382.084, Health
 905-13  and Safety Code.)
 905-14        Sec. 30.085.  Unauthorized Emissions Prohibited; Civil
 905-15  Penalty.  (a)  Except as authorized by a commission rule or order,
 905-16  a person may not cause, suffer, allow, or permit the emission of
 905-17  any air contaminant or the performance of any activity that causes
 905-18  or contributes to, or that will cause or contribute to, air
 905-19  pollution.
 905-20        (b)  A person may not cause, suffer, allow, or permit the
 905-21  emission of any air contaminant or the performance of any activity
 905-22  in violation of this chapter or of any commission rule or order.
 905-23        (c)  A person who violates any provision of this chapter or
 905-24  any commission rule or order is subject to a civil penalty of not
 905-25  less than $50 or more than $25,000 for each day of violation and
 905-26  for each act of violation, as the court or jury considers proper.
 905-27        (d)  The state is entitled to half of a civil penalty
  906-1  recovered in a suit brought under this chapter by one or more local
  906-2  governments.  The remainder shall be equally divided among the
  906-3  local governments that first brought the suit.  (Sec. 382.085,
  906-4  Health and Safety Code.)
  906-5        Sec. 30.086.  Venue and Procedure.  (a)  A suit for
  906-6  injunctive relief, for recovery of a civil penalty, or for both may
  906-7  be brought in the county in which the defendant resides or in the
  906-8  county in which the violation or threat of violation occurs.
  906-9        (b)  An action brought under this chapter takes precedence
 906-10  over other cases of a different nature on the docket of the
 906-11  appellate court.  (Sec. 382.086, Health and Safety Code.)
 906-12        Sec. 30.087.  Report on Enforcement Actions Taken.  (a)  The
 906-13  commission shall prepare a monthly report on enforcement actions
 906-14  taken and the resolution of those actions.
 906-15        (b)  The report must be an agenda item for commission
 906-16  discussion at each regularly scheduled meeting.
 906-17        (c)  If an enforcement action involves a suit filed for
 906-18  injunctive relief or civil penalties or both, the report must state
 906-19  the actual or projected time for resolution of the suit.
 906-20        (d)  Copies of the report and minutes of the meeting
 906-21  reflecting action taken by the commission relating to the report
 906-22  shall be filed with the governor and the attorney general.  (Sec.
 906-23  382.087, Health and Safety Code.)
 906-24        Sec. 30.088.  Administrative Penalty.  (a)  A person may be
 906-25  assessed a civil penalty as provided by this section if the person
 906-26  violates this chapter or a rule or order adopted or permit issued
 906-27  under this chapter and no local government has instituted a lawsuit
  907-1  and is diligently prosecuting that lawsuit against the same person
  907-2  for the same violation under Section 30.114.
  907-3        (b)  The penalty for each violation may not exceed $10,000 a
  907-4  day for each violation.  Each day that a continuing violation
  907-5  occurs may be considered a separate violation.
  907-6        (c)  In determining the amount of the penalty, the commission
  907-7  shall consider:
  907-8              (1)  the seriousness of the violation, including the
  907-9  nature, circumstances, extent, and gravity of the prohibited acts
 907-10  and the hazard or potential hazard to the public health or safety;
 907-11              (2)  the history of previous violations;
 907-12              (3)  the amount necessary to deter future violations;
 907-13              (4)  efforts to correct the violation; and
 907-14              (5)  any other matters that justice may require.
 907-15        (d)  If the executive director, after an investigation,
 907-16  concludes that a violation has occurred, the executive director may
 907-17  issue a preliminary report:
 907-18              (1)  stating the facts that support the conclusion;
 907-19              (2)  recommending that a civil penalty under this
 907-20  section be imposed; and
 907-21              (3)  recommending the amount of the penalty.
 907-22        (e)  Not later than the 10th day after the date on which the
 907-23  report is issued, the executive director shall give written notice
 907-24  of the report to the person charged.  The notice must include:
 907-25              (1)  a brief summary of the charges;
 907-26              (2)  a statement of the recommended penalty amount; and
 907-27              (3)  a statement of the right of the person charged to
  908-1  a hearing on the occurrence of the violation, the amount of the
  908-2  penalty, or both.
  908-3        (f)  Not later than the 20th day after the date on which
  908-4  notice is received, the person charged may give to the commission
  908-5  written consent to the executive director's report, including the
  908-6  recommended penalty, or make a written request for a hearing.
  908-7        (g)  If the person charged with the violation consents to the
  908-8  penalty recommended by the executive director or does not respond
  908-9  to the notice on time, the commission by order shall assess that
 908-10  penalty or order a hearing to be held on the recommendations in the
 908-11  executive director's report.  If the commission assesses the
 908-12  penalty recommended by the report, the commission shall give
 908-13  written notice to the person charged of its decision and the person
 908-14  charged shall pay the penalty.
 908-15        (h)  If the person charged requests or the commission orders
 908-16  a hearing, the executive director shall order a hearing.  The
 908-17  hearing shall be held by a hearing examiner designated by the
 908-18  commission.  The hearing examiner shall make findings of fact and
 908-19  promptly issue to the commission a written decision as to the
 908-20  occurrence of the violation and a recommendation on the amount of
 908-21  the proposed penalty if a penalty is warranted.  Based on the
 908-22  findings of fact and the recommendations of the hearing examiner,
 908-23  the commission by order may find a violation has occurred and may
 908-24  assess a civil penalty or may find that no violation has occurred.
 908-25  All proceedings under this subsection are subject to the
 908-26  Administrative Procedure and Texas Register Act (Article 6252-13a,
 908-27  Vernon's Texas Civil Statutes).
  909-1        (i)  The commission shall give notice of its decision to the
  909-2  person charged, and if the commission finds that a violation
  909-3  occurred and a penalty has been assessed, the commission shall:
  909-4              (1)  give to the person charged written notice of:
  909-5                    (A)  the commission's findings;
  909-6                    (B)  the amount of the penalty; and
  909-7                    (C)  the person's right to judicial review of the
  909-8  commission's order; and
  909-9              (2)  publish notice of those decisions in the Texas
 909-10  Register within 10 days.  (Sec. 382.088, Health and Safety Code.)
 909-11        Sec. 30.089.  Payment of Administrative Penalty.  (a)  Not
 909-12  later than the 30th day after the date on which the order issued
 909-13  under Section 30.088 is final, the person charged shall pay the
 909-14  penalty in full or file a petition for judicial review.
 909-15        (b)  If the person files a petition for judicial review of
 909-16  the amount of the penalty, the fact of the violation, or both, the
 909-17  person, within the time provided by Subsection (a), shall:
 909-18              (1)  send the amount to the commission for placement in
 909-19  an escrow account; or
 909-20              (2)  post with the commission a supersedeas bond in a
 909-21  form approved by the commission for the amount of the penalty, the
 909-22  bond to be effective until judicial review of the order or decision
 909-23  is final.
 909-24        (c)  A person who fails to comply with Subsection (b) waives
 909-25  the right to judicial review.  If the person charged does not send
 909-26  the money or post the bond, the commission or the executive
 909-27  director may forward the matter to the attorney general for
  910-1  enforcement.
  910-2        (d)  Judicial review of the order or decision of the
  910-3  commission assessing the penalty shall be under Section 19,
  910-4  Administrative Procedure and Texas Register Act (Article 6252-13a,
  910-5  Vernon's Texas Civil Statutes).
  910-6        (e)  If the penalty under Section 30.088 is reduced or not
  910-7  assessed, the commission shall:
  910-8              (1)  remit to the person charged the appropriate amount
  910-9  plus accrued interest if the penalty has been paid; or
 910-10              (2)  execute a release of the bond if a supersedeas
 910-11  bond has been posted.
 910-12        (f)  The accrued interest on amounts remitted by the
 910-13  commission under Subsection (e) shall be paid:
 910-14              (1)  at a rate equal to the rate charged on loans to
 910-15  depository institutions by the New York Federal Reserve Bank; and
 910-16              (2)  for the period beginning on the date the penalty
 910-17  is paid to the commission under Subsection (a) and ending on the
 910-18  date the penalty is remitted.
 910-19        (g)  Payment of an administrative penalty under this section
 910-20  is full and complete satisfaction of the violation for which the
 910-21  administrative penalty is assessed and precludes any other civil or
 910-22  criminal penalty for the same violation.  (Sec. 382.089, Health and
 910-23  Safety Code.)
 910-24        Sec. 30.090.  Penalty May Not be Imposed for Violation Under
 910-25  Certain Conditions.  A penalty that would otherwise be imposed by
 910-26  this chapter on a person who violates this chapter or a rule,
 910-27  variance, determination, or order issued under this chapter may not
  911-1  be imposed on a person if the violation is caused by an act of God
  911-2  or a war, strike, riot, or other catastrophe.  (Sec. 382.090,
  911-3  Health and Safety Code.)
  911-4        Sec. 30.091.  Criminal Offenses.  (a)  A person commits an
  911-5  offense if the person:
  911-6              (1)  intentionally or knowingly, with respect to the
  911-7  person's conduct, violates:
  911-8                    (A)  Section 30.059(a);
  911-9                    (B)  Section 30.062;
 911-10                    (C)  Section 30.066(a);
 911-11                    (D)  Section 30.072(a); or
 911-12                    (E)  an order, permit, rule, or exemption issued
 911-13  under this chapter;
 911-14              (2)  intentionally or knowingly fails to pay a fee
 911-15  required by this chapter or by a rule adopted or order issued under
 911-16  this chapter;
 911-17              (3)  intentionally or knowingly makes or causes to be
 911-18  made any false material statement, representation, or certification
 911-19  in, or omits material information from, or knowingly alters,
 911-20  conceals, or does not file or maintain any notice, application,
 911-21  record, report, plan, or other document required to be filed or
 911-22  maintained by this chapter or by a rule adopted or permit or order
 911-23  issued under this chapter;
 911-24              (4)  intentionally or knowingly fails to notify or
 911-25  report to the commission as required by this chapter or by a rule
 911-26  adopted or permit or order issued under this chapter;
 911-27              (5)  intentionally or knowingly tampers with, modifies,
  912-1  disables, or fails to use a required monitoring device; tampers
  912-2  with, modifies, or disables a monitoring device; or falsifies,
  912-3  fabricates, or omits data from a monitoring device, unless done in
  912-4  strict compliance with this chapter or a permit, rule, variance, or
  912-5  other order issued by the commission;
  912-6              (6)  recklessly, with respect to the person's conduct,
  912-7  emits an air contaminant that places any other person in imminent
  912-8  danger of death or serious bodily injury unless the emission is
  912-9  made in strict compliance with this chapter or a permit, rule,
 912-10  variance, or other order issued by the commission; or
 912-11              (7)  intentionally or knowingly, with respect to the
 912-12  person's conduct, emits an air contaminant with the knowledge that
 912-13  the person is placing any other person in imminent danger of death
 912-14  or serious bodily injury unless the emission is made in strict
 912-15  compliance with this chapter or a permit, rule, variance, or other
 912-16  order issued by the commission.
 912-17        (b)  Each day a violation under this section occurs is a
 912-18  separate offense.
 912-19        (c)  In this section, "serious bodily injury" has the meaning
 912-20  assigned by Section 1.07, Penal Code.  (Sec. 382.091, Health and
 912-21  Safety Code.)
 912-22        Sec. 30.092.  Criminal Penalties.  (a)  An offense under
 912-23  Section 30.091(a)(1) is punishable for an individual by a fine of
 912-24  not more than $50,000 or less than $1,000, confinement in jail not
 912-25  to exceed 180 days, or both fine and confinement and, for a
 912-26  corporation or association, by a fine of not more than $100,000 or
 912-27  less than $1,000.
  913-1        (b)  An offense under Section 30.091(a)(2) is punishable for
  913-2  an individual by a fine of not more than twice the amount of the
  913-3  required fee, confinement in jail not to exceed 90 days, or both
  913-4  fine and confinement and, for a corporation or association, by a
  913-5  fine of not more than twice the amount of the required fee.
  913-6        (c)  An offense under Sections 30.091(a)(3)-(5) is punishable
  913-7  for an individual by a fine of not more than $100,000 or less than
  913-8  $500, confinement in jail not to exceed one year, or both fine and
  913-9  confinement and, for a corporation or association, by a fine of not
 913-10  more than $250,000 or less than $1,000.
 913-11        (d)  An offense under Section 30.091(a)(6) is punishable for
 913-12  an individual by a fine of not more than $100,000 or less than
 913-13  $1,000, confinement in jail not to exceed one year, or both fine
 913-14  and confinement and, for a corporation or association, by a fine of
 913-15  not more than $250,000 or less than $2,500.
 913-16        (e)  An offense under Section 30.091(a)(7) is punishable for
 913-17  an individual by a fine of not more than $150,000 or less than
 913-18  $1,500, confinement in the institutional division of the Texas
 913-19  Department of Criminal Justice not to exceed five years, or both
 913-20  fine and confinement and, for a corporation or association, by a
 913-21  fine of not more than $300,000 or less than $3,000.
 913-22        (f)  If it is shown at the trial of a defendant that the
 913-23  defendant has previously been convicted of an offense under this
 913-24  section, the maximum punishment may be doubled with respect to both
 913-25  the fine and imprisonment.
 913-26        (g)  In this section, "corporation" and "association" have
 913-27  the meanings assigned by Section 1.07, Penal Code, except that the
  914-1  terms do not include a government.  (Sec. 382.092, Health and
  914-2  Safety Code.)
  914-3        Sec. 30.093.  Proof of Knowledge.  In determining whether a
  914-4  defendant who is an individual knew that the violation placed
  914-5  another person in imminent danger of death or serious bodily
  914-6  injury, the defendant is responsible only for the defendant's
  914-7  actual awareness or actual belief possessed.  Knowledge possessed
  914-8  by a person other than the defendant may not be attributed to the
  914-9  defendant.  To prove a defendant's actual knowledge, however,
 914-10  circumstantial evidence may be used, including evidence that the
 914-11  defendant took affirmative steps to be shielded from relevant
 914-12  information.  (Sec. 382.093, Health and Safety Code.)
 914-13        Sec. 30.094.  Affirmative Defenses.  It is an affirmative
 914-14  defense to prosecution under this chapter that:
 914-15              (1)  the conduct charged was freely consented to by the
 914-16  person endangered and that the danger and conduct charged were
 914-17  reasonably foreseeable hazards of an occupation, a business, or a
 914-18  profession or medical treatment or medical or scientific
 914-19  experimentation conducted by professionally approved methods and
 914-20  the person endangered had been made aware of the risks involved
 914-21  before giving consent; or
 914-22              (2)  the person charged was an employee who was
 914-23  carrying out the employee's normal activities and was acting under
 914-24  orders from his employer, unless the person charged engaged in
 914-25  knowing and intentional violations.  (Sec. 382.094, Health and
 914-26  Safety Code.)
 914-27        Sec. 30.095.  Assistance in Prosecution by Attorney General.
  915-1  (a)  The commission or the executive director shall consult with
  915-2  the attorney general concerning possible criminal prosecution of an
  915-3  alleged violation.  At the specific request of the commission or
  915-4  the executive director, the attorney general may institute the
  915-5  procedures established by Subsection (b).
  915-6        (b)  The attorney general, after evaluating the case, may:
  915-7              (1)  notify the prosecuting attorney in the county in
  915-8  which the violation allegedly occurred; and
  915-9              (2)  offer the investigative, technical, and litigation
 915-10  assistance of the attorney general's office in any prosecution of
 915-11  the alleged violation brought by the prosecuting attorney.
 915-12        (c)  The attorney general may establish a section within the
 915-13  attorney general's office to provide the investigative, technical,
 915-14  and litigation assistance authorized by this section.  (Sec.
 915-15  382.095, Health and Safety Code.)
 915-16        Sec. 30.096.  Public Participation.  Before the commission
 915-17  approves a consent order or settlement agreement settling a civil
 915-18  or administrative enforcement action under this chapter to which
 915-19  the State of Texas or the commission is a party or before the court
 915-20  signs a judgment or other agreement settling a judicial enforcement
 915-21  action other than an enforcement action under Section 113 or 120 or
 915-22  Title II of the federal Clean Air Act (42 U.S.C. Section 7401 et
 915-23  seq.), the commission or the attorney general, as appropriate,
 915-24  shall permit the public to comment in writing on the proposed
 915-25  order, judgment, or other agreement.  Notice of the opportunity to
 915-26  comment shall be published in the Texas Register not later than the
 915-27  30th day before the date on which the public comment period closes.
  916-1  The commission or the attorney general, as appropriate, shall
  916-2  promptly consider any written comments and may withdraw or withhold
  916-3  consent to the proposed order, judgment, or other agreement if the
  916-4  comments disclose facts or considerations that indicate that the
  916-5  consent is inappropriate, improper, inadequate, or inconsistent
  916-6  with the requirements of this chapter.  No further notice of
  916-7  changes to the proposed order, judgment, or other agreement must be
  916-8  published if those changes arise from comments submitted in
  916-9  response to a previous notice.  This section does not apply to
 916-10  criminal enforcement proceedings.  (Sec. 382.096, Health and Safety
 916-11  Code.)
 916-12            (Sections 30.097-30.110 reserved for expansion)
 916-13             SUBCHAPTER E.  AUTHORITY OF LOCAL GOVERNMENTS
 916-14        Sec. 30.111.  Inspections; Power to Enter Property.  (a)  A
 916-15  local government has the same power and is subject to the same
 916-16  restrictions as the commission under Section 2.201 to inspect the
 916-17  air and to enter public or private property in its territorial
 916-18  jurisdiction to determine if:
 916-19              (1)  the level of air contaminants in an area in its
 916-20  territorial jurisdiction and the emissions from a source meet the
 916-21  levels set by:
 916-22                    (A)  the commission; or
 916-23                    (B)  a municipality's governing body under
 916-24  Section 30.113; or
 916-25              (2)  a person is complying with this chapter or a rule,
 916-26  variance, or order issued by the commission.
 916-27        (b)  A local government shall send the results of its
  917-1  inspections to the commission when requested by the commission.
  917-2  (Sec. 382.111, Health and Safety Code.)
  917-3        Sec. 30.112.  Recommendations to Board.  A local government
  917-4  may make recommendations to the commission concerning a rule,
  917-5  determination, variance, or order of the commission that affects an
  917-6  area in the local government's territorial jurisdiction.  The
  917-7  commission shall give maximum consideration to a local government's
  917-8  recommendations.  (Sec. 382.112, Health and Safety Code.)
  917-9        Sec. 30.113.  Authority of Municipalities.  (a)  A
 917-10  municipality has the powers and rights as are otherwise vested by
 917-11  law in the municipality to:
 917-12              (1)  abate a nuisance; and
 917-13              (2)  enact and enforce an ordinance for the control and
 917-14  abatement of air pollution, or any other ordinance, not
 917-15  inconsistent with this chapter or the commission's rules or orders.
 917-16        (b)  An ordinance enacted by a municipality must be
 917-17  consistent with this chapter and the commission's rules and orders
 917-18  and may not make unlawful a condition or act approved or authorized
 917-19  under this chapter or the commission's rules or orders.  (Sec.
 917-20  382.113, Health and Safety Code.)
 917-21        Sec. 30.114.  Enforcement by Local Governments.  (a)  If it
 917-22  appears that a violation or threat of violation of Section 30.085
 917-23  or of a commission rule, variance, or order has occurred or is
 917-24  occurring in a local government's jurisdiction, excluding its
 917-25  extraterritorial jurisdiction, the local government, in the same
 917-26  manner as the commission under Sections 30.082-30.084, may bring
 917-27  suit through the local government's attorney for injunctive relief,
  918-1  civil penalties, or both, against the person who committed, is
  918-2  committing, or is threatening to commit the violation.
  918-3        (b)  The court shall grant, without a bond or other
  918-4  undertaking by the local government, any prohibitory or mandatory
  918-5  injunctions the facts may warrant, including temporary restraining
  918-6  orders after notice and hearing, temporary injunctions, and
  918-7  permanent injunctions.
  918-8        (c)  A local government may not exercise the enforcement
  918-9  power provided under this section unless its governing body adopts
 918-10  a resolution authorizing the exercise of the power.
 918-11        (d)  In a suit brought by a local government under this
 918-12  section, the commission is a necessary and indispensable party.
 918-13  (Sec. 382.114, Health and Safety Code.)
 918-14        Sec. 30.115.  Cooperative Agreements.  A local government may
 918-15  execute cooperative agreements with the commission or other local
 918-16  governments:
 918-17              (1)  to provide for the performance of air quality
 918-18  management, inspection, and enforcement functions and to provide
 918-19  technical aid and educational services to a party to the agreement;
 918-20  and
 918-21              (2)  for the transfer of money or property from a party
 918-22  to the agreement to another party to the agreement for the purpose
 918-23  of air quality management, inspection, enforcement, technical aid,
 918-24  and education.  (Sec. 382.115, Health and Safety Code.)
 918-25            (Sections 30.116-30.130 reserved for expansion)
 918-26                   SUBCHAPTER F.  ALTERNATIVE FUELS
 918-27        Sec. 30.131.  Definitions.  In this subchapter:
  919-1              (1)  "Emissions" means emissions of oxides of nitrogen,
  919-2  volatile organic compounds, carbon monoxide, particulates, or any
  919-3  combination of those substances.
  919-4              (2)  "Fleet vehicle" means a vehicle required to be
  919-5  registered under Chapter 88, General Laws, Acts of the 41st
  919-6  Legislature, 2nd Called Session, 1929 (Article 6675a-2, Vernon's
  919-7  Texas Civil Statutes).
  919-8              (3)  "Mass transit authority" means a transportation or
  919-9  transit authority or department established under Chapter 141, Acts
 919-10  of the 63rd Legislature, Regular Session, 1973 (Article 1118x,
 919-11  Vernon's Texas Civil Statutes), Chapter 683, Acts of the 66th
 919-12  Legislature, Regular Session, 1979 (Article 1118y, Vernon's Texas
 919-13  Civil Statutes), or Article 1118z, Revised Statutes, that operates
 919-14  a mass transit system under any of those laws.  (Sec. 382.131,
 919-15  Health and Safety Code.)
 919-16        Sec. 30.132.  Metropolitan Areas Affected.  Rules adopted by
 919-17  the commission under Sections 30.133 through 30.136 apply only to a
 919-18  consolidated metropolitan statistical area or a metropolitan
 919-19  statistical area with a population of 350,000 or more that has not
 919-20  met federal ambient air quality standards for ozone, carbon
 919-21  monoxide, oxides of nitrogen, or particulates.  (Sec. 382.132,
 919-22  Health and Safety Code.)
 919-23        Sec. 30.133.  Mass Transit Fleet Vehicles.  (a)  The
 919-24  commission by rule shall require a mass transit authority to ensure
 919-25  that its vehicles can operate on compressed natural gas or other
 919-26  alternative fuels that result in comparably lower emissions.
 919-27        (b)  Rules adopted under this section must require a mass
  920-1  transit authority to have its fleet vehicles able to operate on
  920-2  compressed natural gas or other alternative fuel according to the
  920-3  following schedule:
  920-4              (1)  not later than September 1, 1994, at least 30
  920-5  percent of the vehicles; and
  920-6              (2)  not later than September 1, 1996, at least 50
  920-7  percent of the vehicles.
  920-8        (c)  Contingent on the commission's review, not later than
  920-9  December 31, 1996, of the alternative fuels program established by
 920-10  this section and the commission's determination that the program is
 920-11  reducing emissions, is projected to be effective in improving
 920-12  overall air quality, and is necessary to the attainment of federal
 920-13  ambient air quality standards in the affected areas, the rules must
 920-14  require a mass transit authority, not later than September 1, 1998,
 920-15  to have at least 90 percent of its fleet vehicles able to operate
 920-16  on compressed natural gas or other alternative fuel.  (Sec.
 920-17  382.133, Health and Safety Code.)
 920-18        Sec. 30.134.  Local Government and Private Fleet Vehicles.
 920-19  (a)  This section applies only to:
 920-20              (1)  a local government that operates primarily in an
 920-21  affected area a fleet of more than 15 vehicles, excluding law
 920-22  enforcement and emergency vehicles; and
 920-23              (2)  a private person that operates primarily in an
 920-24  affected area a fleet of more than 25 vehicles, excluding emergency
 920-25  vehicles.
 920-26        (b)  If the commission determines under Section 30.133 that
 920-27  the alternative fuels program is reducing emissions, is projected
  921-1  to be effective in improving overall air quality, and is necessary
  921-2  to comply with federal ambient air quality standards for ozone,
  921-3  carbon monoxide, oxides of nitrogen, or particulates in the
  921-4  affected areas, the commission by rule shall require a local
  921-5  government or a private person to ensure that its vehicles can
  921-6  operate on compressed natural gas or other alternative fuels that
  921-7  reduce total annual emissions from motor vehicles in the area.
  921-8        (c)  Rules adopted under this section must require a local
  921-9  government or private person to have its fleet vehicles able to
 921-10  operate on compressed natural gas or other alternative fuel
 921-11  according to the following schedule:
 921-12              (1)  not later than September 1, 1998, at least 30
 921-13  percent of the vehicles;
 921-14              (2)  not later than September 1, 2000, at least 50
 921-15  percent of the vehicles; and
 921-16              (3)  not later than September 1, 2002, at least 90
 921-17  percent of the vehicles.  (Sec. 382.134, Health and Safety Code.)
 921-18        Sec. 30.135.  Dual Fuel Conversion.  The percentage
 921-19  requirements of Sections 30.133 and 30.134 may be met by the dual
 921-20  fuel conversion or capability of gasoline-powered or diesel-powered
 921-21  vehicles to operate also on compressed natural gas or other
 921-22  alternative fuels that result in comparably lower emissions.  (Sec.
 921-23  382.135, Health and Safety Code.)
 921-24        Sec. 30.136.  Exceptions.  (a)  The commission may make
 921-25  exceptions to rules adopted under Sections 30.133 and 30.134 if:
 921-26              (1)  a firm engaged in fixed price contracts with
 921-27  public works agencies can demonstrate that compliance with the
  922-1  requirements of those sections would result in substantial economic
  922-2  harm to the firm under a contract entered into before September 1,
  922-3  1997;
  922-4              (2)  the commission determines that the affected
  922-5  vehicles will be operating primarily in an area that does not have
  922-6  or cannot reasonably be expected to establish a central refueling
  922-7  station for alternative fuels; or
  922-8              (3)  the affected entity is unable to secure financing
  922-9  provided by or arranged through the proposed supplier or suppliers
 922-10  of compressed natural gas or other alternative fuels sufficient to
 922-11  cover the additional costs of alternative fueling.
 922-12        (b)  To qualify for an exception under Subsection (a), an
 922-13  affected entity must provide data requested by the commission to
 922-14  document the unavailability of a refueling station or of financing
 922-15  to cover the additional costs of alternative fueling.  (Sec.
 922-16  382.136, Health and Safety Code.)
 922-17        Sec. 30.137.  Data Collection.  An affected entity shall
 922-18  support the commission in collecting reasonable information needed
 922-19  to determine air quality benefits from use of alternative fuels in
 922-20  affected areas.  (Sec. 382.137, Health and Safety Code.)
 922-21        Sec. 30.138.  Evaluation of Alternative Fuels Use.  (a)  In
 922-22  conjunction with the development of state implementation plans for
 922-23  achieving and maintaining compliance with federal ambient air
 922-24  quality standards under the federal Clean Air Act (42 U.S.C.
 922-25  Section 7401 et seq.), the commission shall evaluate and determine,
 922-26  for areas required by federal law to have state implementation
 922-27  plans, the effectiveness of and need for the use of compressed
  923-1  natural gas and other alternative fuels in vehicles.
  923-2        (b)  The evaluation and determination must include:
  923-3              (1)  the uses of compressed natural gas or other
  923-4  alternative fuels required by Sections 30.133 and 30.134; and
  923-5              (2)  additional or different uses of compressed natural
  923-6  gas or other alternative fuels.
  923-7        (c)  In making evaluations and determinations under this
  923-8  section, the commission shall:
  923-9              (1)  review reports received by the commission on
 923-10  alternative fuels programs;
 923-11              (2)  consult with a reporting entity on the
 923-12  contribution the entity's program is making toward achieving and
 923-13  maintaining compliance with federal ambient air quality standards;
 923-14  and
 923-15              (3)  consider for each category of vehicles the factors
 923-16  required for the development of state implementation plans under
 923-17  the federal Clean Air Act (42 U.S.C. Section 7401 et seq.) and this
 923-18  chapter.
 923-19        (d)  Before making a determination under this subchapter, the
 923-20  commission shall solicit comments from the Department of Public
 923-21  Safety and the Railroad Commission of Texas concerning any effect
 923-22  on public safety.  (Sec. 382.138, Health and Safety Code.)
 923-23        Sec. 30.139.  Additional Alternative Fuels Use.  (a)  If,
 923-24  after considering the factors listed in Section 30.138, the
 923-25  commission determines that the use of compressed natural gas or
 923-26  other alternative fuels for certain categories of motor vehicles is
 923-27  effective and necessary for achieving and maintaining compliance
  924-1  with federal ambient air quality standards, the commission by rule
  924-2  shall require those uses in addition to uses required elsewhere in
  924-3  this subchapter.
  924-4        (b)  If, after considering the factors listed in Section
  924-5  30.138, the commission determines that the additional uses are
  924-6  appropriate, the commission may establish and implement programs
  924-7  encouraging the use of compressed natural gas or other alternative
  924-8  fuels for certain categories of vehicles.  (Sec. 382.139, Health
  924-9  and Safety Code.)
 924-10        Sec. 30.140.  Studies; Pilot Programs.  (a)  In connection
 924-11  with the evaluations and determinations required under Section
 924-12  30.138 and encouraging the use of natural gas or other alternative
 924-13  fuels, the commission may conduct or have conducted appropriate
 924-14  studies or pilot programs.
 924-15        (b)  A study or pilot program may assess the feasibility of
 924-16  adopting vehicle emission standards more stringent than those
 924-17  adopted by the United States Environmental Protection Agency under
 924-18  the federal Clean Air Act (42 U.S.C. Section 7401 et seq.).  (Sec.
 924-19  382.140, Health and Safety Code.)
 924-20        Sec. 30.141.  Report Required.  The commission shall report
 924-21  biennially its evaluations and determinations on the use of
 924-22  compressed natural gas or other alternative fuels and recommend
 924-23  legislative changes necessary to implement an effective and
 924-24  feasible program for the use of compressed natural gas and other
 924-25  alternative fuels.  The report shall be submitted to the governor
 924-26  and the legislature not later than the 30th day before the
 924-27  commencement of each regular legislative session.  (Sec. 382.141,
  925-1  Health and Safety Code.)
  925-2                 CHAPTER 31.  CLEAN AIR FINANCING ACT
  925-3                   SUBCHAPTER A.  GENERAL PROVISIONS
  925-4        Sec. 31.001.  Short Title.  This chapter may be cited as the
  925-5  Clean Air Financing Act.  (Sec. 383.001, Health and Safety Code.)
  925-6        Sec. 31.002.  Policy and Purpose.  (a)  The policy of the
  925-7  state and the purpose of this chapter are to:
  925-8              (1)  safeguard state air resources from emissions of
  925-9  air contaminants and other pollution;
 925-10              (2)  protect public health, general welfare, physical
 925-11  property, and the esthetic enjoyment of air resources by the
 925-12  public; and
 925-13              (3)  maintain adequate visibility.
 925-14        (b)  It is the policy of the state that the control of air
 925-15  pollution is essential to the well-being and survival of state
 925-16  inhabitants and the protection of the environment.  The control,
 925-17  prevention, and abatement of air pollution will conserve and
 925-18  develop state natural resources, within the meaning of Article XVI,
 925-19  Section 59(a), of the Texas Constitution, by preventing further
 925-20  damage to the environment.  (Sec. 383.002, Health and Safety Code.)
 925-21        Sec. 31.003.  Definitions.  In this chapter:
 925-22              (1)  "Air contaminant" has the meaning assigned by
 925-23  Section 30.003.
 925-24              (2)  "Air pollution" has the meaning assigned by
 925-25  Section 30.003.
 925-26              (3)  "Bond" includes a note.
 925-27              (4)  "Coastal basin" means an area that:
  926-1                    (A)  is defined and designated as a coastal basin
  926-2  as of April 26, 1973, by the Texas Water Development Board, and as
  926-3  a separate unit that has the purpose of water development and
  926-4  interwatershed transfers; and
  926-5                    (B)  has boundaries determined by a contour map
  926-6  filed in the office of the Texas Water Development Board.
  926-7              (5)  "Control facility" means a facility that has been
  926-8  certified by the commission, or by the executive director if the
  926-9  commission authorizes, as being designed to reduce or eliminate air
 926-10  pollution.
 926-11              (6)  "Disposal system" has the meaning assigned by
 926-12  Section 30.003(10), Water Code.
 926-13              (7)  "District" means a district or authority created
 926-14  under Article XVI, Section 59, or Article III, Section 52, of the
 926-15  Texas Constitution, but does not include a district or authority
 926-16  located entirely within a river authority unless the district or
 926-17  authority:
 926-18                    (A)  has all or part of at least two
 926-19  municipalities within its boundaries;
 926-20                    (B)  is governed by Chapter 56, 60, 61, 62, or
 926-21  63, Water Code; or
 926-22                    (C)  is created for the primary purpose of
 926-23  navigation of its coastal and inland waters.
 926-24              (8)  "Issuer" means a municipality, county, or
 926-25  district.
 926-26              (9)  "Real property" means land, a structure, a
 926-27  franchise or interest in land, water, land under water, riparian
  927-1  rights, air rights, or another thing or right pertaining to that
  927-2  property, including an easement, right-of-way, use, lease, license,
  927-3  or other incorporeal hereditament, or an estate, interest, or legal
  927-4  or equitable right, including a term for years or lien on that
  927-5  property because of a judgment, mortgage, or other reason.
  927-6              (10)  "Resolution" means the action, including an order
  927-7  or ordinance, that authorizes bonds and that is taken by the
  927-8  governing body of an issuer.
  927-9              (11)  "River authority" has the meaning assigned by
 927-10  Section 30.003(4), Water Code.
 927-11              (12)  "River basin" means an area that:
 927-12                    (A)  is defined and designated as a river basin
 927-13  as of April 26, 1973, by the Texas Water Development Board, and as
 927-14  a separate unit that has the purpose of water development and
 927-15  interwatershed transfers; and
 927-16                    (B)  has boundaries determined by a contour map
 927-17  filed in the office of the Texas Water Development Board.
 927-18              (13)  "Security agreement" means a trust indenture or
 927-19  other instrument securing bonds. (Sec. 383.003, Health and Safety
 927-20  Code.)
 927-21        Sec. 31.004.  Certification of Control Facility by Board.
 927-22  The commission may prescribe necessary criteria and procedures for
 927-23  certifying a control facility and may limit certification to
 927-24  confirmation that a proposed facility is intended to control air
 927-25  pollution.  Certification of a control facility's adequacy or
 927-26  expected performance or of other specifications is not necessary.
 927-27  (Sec. 383.004, Health and Safety Code.)
  928-1        Sec. 31.005.  Adoption of Alternate Procedure.  If a court
  928-2  holds that a procedure under this chapter violates the United
  928-3  States Constitution or Texas Constitution, an issuer by resolution
  928-4  may provide an alternate procedure that conforms to those
  928-5  constitutions.  (Sec. 383.005, Health and Safety Code.)
  928-6        Sec. 31.006.  Effect of Chapter on Other Law.  (a)  This
  928-7  chapter does not limit the authority of the commission, a district,
  928-8  or a local government in performing a power or duty provided by
  928-9  other law.  This chapter does not limit the authority of the
 928-10  commission or a local government to adopt and enforce rules or
 928-11  carry out duties under Chapter 30.
 928-12        (b)  Chapter 30 shall be enforced without regard to ownership
 928-13  of a control facility financed under this chapter.
 928-14        (c)  This chapter does not affect the right of a private
 928-15  person to pursue, against a person who contracts with an issuer
 928-16  under this chapter, a common-law remedy to abate or recover damages
 928-17  for a condition of pollution or other nuisance.  A person
 928-18  purchasing or using a control facility under contract with an
 928-19  issuer may not assert the defense of sovereign immunity because of
 928-20  the issuer's ownership of the control facility.
 928-21        (d)  An issuer may use other law not in conflict with this
 928-22  chapter to the extent convenient or necessary to carry out a power
 928-23  or authority expressly or impliedly granted by this chapter. (Sec.
 928-24  383.006, Health and Safety Code.)
 928-25           (Sections 31.007-31.010 reserved for expansion)
 928-26             SUBCHAPTER B.  OPERATION OF CONTROL FACILITY
 928-27        Sec. 31.011.  Authority to Acquire and Transfer Property.
  929-1  (a)  An issuer may acquire, construct, and improve a control
  929-2  facility and may acquire real property as the issuer considers
  929-3  appropriate for the control facility.
  929-4        (b)  An issuer may enter into a lease or other contract under
  929-5  which another person uses or acquires the issuer's control
  929-6  facility.  An issuer may sell a control facility, by installment
  929-7  payments or otherwise, to any person on conditions the issuer
  929-8  considers desirable.  (Sec. 383.011, Health and Safety Code.)
  929-9        Sec. 31.012.  Location of Control Facility.  (a)  A control
 929-10  facility may be located on the property of any person.
 929-11        (b)  A control facility of a municipality must be located in
 929-12  whole or in part within:
 929-13              (1)  the boundaries of the municipality; or
 929-14              (2)  the municipality's extraterritorial jurisdiction,
 929-15  as determined under Chapter 42, Local Government Code.
 929-16        (c)  A control facility of a river authority may be located
 929-17  outside the river authority's boundaries if it is located in whole
 929-18  or in part within the river authority's river basin or a coastal
 929-19  basin adjoining the river authority's boundaries.  A control
 929-20  facility of a river authority may be located anywhere in the state
 929-21  if it is financed at the same time and with the same bond issue as
 929-22  a control facility located within the river authority's boundaries
 929-23  or located in whole or in part within the river authority's river
 929-24  basin or a coastal basin adjoining the river authority's
 929-25  boundaries.
 929-26        (d)  A control facility of a county or a district other than
 929-27  a river authority must be located in whole or in part within the
  930-1  county's or district's boundaries. (Sec. 383.012, Health and Safety
  930-2  Code.)
  930-3        Sec. 31.013.  Contracts.  (a)  A lease or other contract
  930-4  entered into under this chapter may be for the term agreed to by
  930-5  the parties.  The lease or other contract may provide that it
  930-6  continues in effect until specified bonds or refunding bonds issued
  930-7  in place of the specified bonds are fully paid.
  930-8        (b)  The provisions of Article 5160, Revised Statutes, that
  930-9  relate to performance and payment bonds apply to a construction
 930-10  contract let by an issuer, except that an issuer is not required to
 930-11  receive construction bids on a project.
 930-12        (c)  The Bond and Warrant Law of 1931 (Article 2368a,
 930-13  Vernon's Texas Civil Statutes) and any other law requiring
 930-14  competitive bids do not apply to a construction contract for a
 930-15  project authorized by this chapter.  (Sec. 383.013, Health and
 930-16  Safety Code.)
 930-17        Sec. 31.014.  Cost of Certain Required Alterations.  The
 930-18  relocation, raising, lowering, rerouting, changing of grade, or
 930-19  altering of construction of a highway, railroad, electric
 930-20  transmission line, telegraph or telephone property or facility, or
 930-21  pipeline made necessary by the actions of an issuer shall be
 930-22  accomplished at the sole expense of the issuer, who shall pay the
 930-23  cost of the required activity as necessary to provide comparable
 930-24  replacement, minus the net salvage value of any replaced facility.
 930-25  The issuer shall pay that amount from the proceeds of bonds issued
 930-26  to finance a control facility.  (Sec. 383.014, Health and Safety
 930-27  Code.)
  931-1        Sec. 31.015.  Taxation.  (a)  An issuer is not required to
  931-2  pay a tax or other assessment on a control facility or part of a
  931-3  control facility.
  931-4        (b)  Bonds issued under this chapter, the transfer of the
  931-5  bonds, and income from the bonds are exempt from taxation in this
  931-6  state.
  931-7        (c)  This chapter does not affect state law relating to an ad
  931-8  valorem tax imposed on a person who is not a public agency or
  931-9  political subdivision or on an interest held by such a person.  A
 931-10  control facility purchased or used under this chapter is subject to
 931-11  ad valorem taxation payable by the person contracting with the
 931-12  issuer for the facility's purchase or use as if the contract
 931-13  created a leasehold.  (Sec. 383.015, Health and Safety Code.)
 931-14           (Sections 383.016-383.020 reserved for expansion)
 931-15                         SUBCHAPTER C.  BONDS
 931-16        Sec. 31.021.  Authority to Issue.  (a)  An issuer may issue
 931-17  negotiable bonds, payable from revenues of the issuer, to pay costs
 931-18  related to the acquisition, construction, or improvement of a
 931-19  control facility, including:
 931-20              (1)  the cost of real property acquired for the control
 931-21  facility;
 931-22              (2)  finance charges;
 931-23              (3)  interest before and during construction and for a
 931-24  period the issuer finds reasonable after completion of
 931-25  construction;
 931-26              (4)  expenses incurred for architectural, engineering,
 931-27  and legal services;
  932-1              (5)  expenses incurred for plans, specifications,
  932-2  surveys, and estimates;
  932-3              (6)  expenses incurred in placing the control facility
  932-4  in operation;
  932-5              (7)  expenses of administration; and
  932-6              (8)  other expenses necessary or incident to the
  932-7  acquisition, construction, or improvement.
  932-8        (b)  The bonds may be issued in more than one series and from
  932-9  time to time as required to carry out the purposes of this chapter.
 932-10        (c)  Pending issuance of definitive bonds, the issuer may
 932-11  authorize the delivery of negotiable interim bonds eligible for
 932-12  exchange or substitution by use of the definitive bonds.
 932-13        (d)  An issuer may not issue bonds to acquire an existing
 932-14  control facility solely for the purpose of leasing or selling it
 932-15  back to the person from whom it was acquired or to another person
 932-16  controlled by that person, unless the control facility is to be
 932-17  substantially improved before it is leased or sold back to such a
 932-18  person.  (Sec. 383.021, Health and Safety Code.)
 932-19        Sec. 31.022.  Form and Procedure.  (a)  Bonds under this
 932-20  chapter must be authorized by resolution.  The bonds must:
 932-21              (1)  be signed by the presiding officer or assistant
 932-22  presiding officer of the governing body;
 932-23              (2)  be attested by the secretary of the governing
 932-24  body; and
 932-25              (3)  have the seal of the issuer impressed, printed, or
 932-26  lithographed on the bonds.
 932-27        (b)  The bonds may have the characteristics and bear the
  933-1  designation determined by the governing body of the issuer, except
  933-2  that the designation must include for each control facility to be
  933-3  financed with the bonds:
  933-4              (1)  the name of each person using or purchasing the
  933-5  control facility;
  933-6              (2)  the name of each person guaranteeing the
  933-7  contractual obligations of each person using or purchasing the
  933-8  control facility; or
  933-9              (3)  a statement, if applicable, that a group of
 933-10  persons will be using or purchasing the control facility.
 933-11        (c)  The governing body may authorize a required signature to
 933-12  be printed or lithographed on the bonds.  The issuer may adopt or
 933-13  use the signature of a person who has been an officer, regardless
 933-14  of whether the person is an officer when the bonds are delivered to
 933-15  a purchaser.  (Sec. 383.022, Health and Safety Code.)
 933-16        Sec. 31.023.  Terms.  Bonds issued under this chapter must
 933-17  mature serially or otherwise not more than 40 years after they are
 933-18  issued.  The bonds may:
 933-19              (1)  bear interest at a rate and be sold at a price or
 933-20  under terms that the governing body of the issuer determines to be
 933-21  the most advantageous reasonably obtainable;
 933-22              (2)  be made callable before maturity at times and
 933-23  prices prescribed in the resolution authorizing the bonds;
 933-24              (3)  be in coupon form; and
 933-25              (4)  be registrable as to principal or as to principal
 933-26  and interest.  (Sec. 383.023, Health and Safety Code.)
 933-27        Sec. 31.024.  Approval and Registration.  (a)  An issuer
  934-1  shall submit bonds that have been authorized by its governing body,
  934-2  including refunding bonds and the record relating to the bond
  934-3  issuance, to the attorney general for examination as to their
  934-4  validity.  If the bonds state that they are secured by a pledge of
  934-5  proceeds of a lease or other contract previously entered into by
  934-6  the issuer, the issuer may submit the contract with the bonds.
  934-7        (b)  If the bonds have been authorized in accordance with
  934-8  state law and any contract has been made in accordance with state
  934-9  law, the attorney general shall approve the bonds and contract and
 934-10  the comptroller shall register the bonds.
 934-11        (c)  Following approval and registration, the bonds and
 934-12  contract are incontestable.  (Sec. 383.024, Health and Safety
 934-13  Code.)
 934-14        Sec. 31.025.  Pledge of Revenue as Security; Election.
 934-15  (a)  An issuer's bonds may be secured, as specified by the
 934-16  resolution or a security agreement, by a pledge of all or part of
 934-17  the revenues of the issuer derived from:
 934-18              (1)  the use or sale of a control facility or disposal
 934-19  system; or
 934-20              (2)  services rendered by a disposal system.
 934-21        (b)  Except as provided by Section 31.026, before a
 934-22  municipality or county issues bonds secured under Subsection (a),
 934-23  the municipality or county must publish notice of its intention to
 934-24  issue the bonds at least once in a newspaper of general circulation
 934-25  within the boundaries of the municipality or county.  Not later
 934-26  than 30 days after the date of the publication, not less than 10
 934-27  percent of the qualified voters of the municipality or county may
  935-1  file a petition with the clerk or secretary of the governing body
  935-2  requesting the governing body to order an election on the issuance
  935-3  of the bonds.  On the filing of the petition, the governing body
  935-4  shall order an election to be held in the municipality or county to
  935-5  determine whether the bonds may be issued as indicated in the
  935-6  notice.  The governing body shall set the date of the election in
  935-7  accordance with Section 41.001, Election Code.  If the majority of
  935-8  voters who vote at the election approve the issuance of the bonds,
  935-9  the governing body may issue the bonds.  If a petition is not filed
 935-10  within the period provided by this subsection, the governing body
 935-11  may issue the bonds without an election.
 935-12        (c)  The governing body shall fix and periodically revise
 935-13  payments under a lease or other contract for the use or sale of a
 935-14  control facility so that the payments and other pledged revenue
 935-15  will be sufficient to pay the bonds and interest on the bonds as
 935-16  they mature and become due and to maintain reserve or other funds
 935-17  as provided by the resolution or security agreement.  The governing
 935-18  body may direct the investment of money in the funds created by the
 935-19  resolution or security agreement.  (Sec. 383.025, Health and Safety
 935-20  Code.)
 935-21        Sec. 31.026.  Pledge of Other Utility Revenue; Election.
 935-22  (a)  In addition to the security under Section 31.025, a
 935-23  municipality's or county's bonds may be secured, as specified by
 935-24  the resolution or a security agreement, by a pledge of other
 935-25  utility revenue of the municipality or county.
 935-26        (b)  Before issuing bonds secured by other utility revenue,
 935-27  the governing body must order an election to determine whether the
  936-1  bonds may be issued.  The governing body shall set the date of the
  936-2  election in accordance with Section 41.001, Election Code.  The
  936-3  manner of holding the election is governed by Chapter 1, Title 22,
  936-4  Revised Statutes.  If the majority of voters who vote at the
  936-5  election approve the issuance of the bonds, the governing body may
  936-6  issue the bonds.  (Sec. 383.026, Health and Safety Code.)
  936-7        Sec. 31.027.  Security May Apply to Additional Bonds.  A
  936-8  pledge under Section 31.025 or 31.026 may reserve the right, under
  936-9  conditions specified by the pledge, to issue additional bonds to be
 936-10  on a parity with or subordinate to the bonds secured by the pledge.
 936-11  Bonds issued under this chapter may be combined in the same issue
 936-12  with bonds issued for other purposes authorized by law.  (Sec.
 936-13  383.027, Health and Safety Code.)
 936-14        Sec. 31.028.  Trusts as Security.  (a)  The governing body
 936-15  may additionally secure bonds, including refunding bonds, by a
 936-16  trust indenture under which the trustee may be a bank having trust
 936-17  powers located inside or outside the state.
 936-18        (b)  Regardless of any mortgage, deed of trust lien, or
 936-19  security interest under Section 31.029, the trust indenture may:
 936-20              (1)  contain any provision that the governing body
 936-21  prescribes for the security of the bonds and the preservation of
 936-22  the trust estate;
 936-23              (2)  provide for amendment or modification of the trust
 936-24  indenture;
 936-25              (3)  condition the right to spend the issuer's money or
 936-26  sell an issuer's control facility on approval of a registered
 936-27  professional engineer selected as provided by the trust indenture;
  937-1              (4)  contain provisions governing issuance of bonds to
  937-2  replace lost, stolen, or mutilated bonds; and
  937-3              (5)  otherwise provide for protecting and enforcing a
  937-4  bondholder's rights and remedies as is reasonable, proper, and
  937-5  lawful.  (Sec. 383.028, Health and Safety Code.)
  937-6        Sec. 31.029.  Other Security.  (a)  The bonds may be
  937-7  additionally secured by a mortgage, deed of trust lien, or security
  937-8  interest in a designated control facility of the governing body and
  937-9  all property and rights appurtenant to the control facility.
 937-10        (b)  The mortgage, deed of trust lien, or security interest
 937-11  may give the trustee the power to operate the control facility,
 937-12  sell the control facility to pay the debt, or take any other action
 937-13  to secure the bonds.
 937-14        (c)  A purchaser at a sale under a mortgage or deed of trust
 937-15  lien is the absolute owner of the control facility and rights
 937-16  purchased.  (Sec. 383.029, Health and Safety Code.)
 937-17        Sec. 31.030.  Action by Bondholders.  (a)  The resolution or
 937-18  a security agreement may provide that on default in the payment of
 937-19  principal of or interest on the bonds, or threatened default under
 937-20  conditions stated in the resolution or security agreement, and on
 937-21  petition of the holders of outstanding bonds, a court of competent
 937-22  jurisdiction may appoint a receiver to collect and receive pledged
 937-23  income.
 937-24        (b)  The resolution or security agreement may limit or
 937-25  qualify the rights of less than all of the holders of outstanding
 937-26  bonds payable from the same source to institute or prosecute
 937-27  litigation affecting the issuer's property or income.  (Sec.
  938-1  383.030, Health and Safety Code.)
  938-2        Sec. 31.031.  Investment and Use of Proceeds.  (a)  The
  938-3  governing body may set aside amounts from the proceeds of the sale
  938-4  of bonds for payment into an interest and sinking fund and reserve
  938-5  funds and may provide for this in the resolution or a security
  938-6  agreement.  All expenses of issuing and selling the bonds must be
  938-7  paid from the proceeds of the sale of the bonds.
  938-8        (b)  Proceeds from the sale of bonds may be invested in:
  938-9              (1)  direct or indirect obligations of the United
 938-10  States government or an agency of the United States government that
 938-11  mature in a manner specified by the resolution or a security
 938-12  agreement; or
 938-13              (2)  certificates of deposit of a bank or trust company
 938-14  if the deposits are secured by obligations described by Subdivision
 938-15  (1).
 938-16        (c)  A bank or trust company with trust powers may be
 938-17  designated as depository for proceeds of bonds or of lease or other
 938-18  contract revenue.  The bank or trust company shall furnish
 938-19  indemnifying bonds or pledge securities as required by the issuer
 938-20  to secure the deposits.  (Sec. 383.031, Health and Safety Code.)
 938-21        Sec. 31.032.  Refunding Bonds.  (a)  A governing body may
 938-22  issue refunding bonds to refund the principal of, interest on, and
 938-23  any redemption premium applicable to outstanding bonds.  The
 938-24  refunding bonds may:
 938-25              (1)  refund more than one series of outstanding bonds
 938-26  and combine the revenue pledged to the outstanding bonds for the
 938-27  security of the refunding bonds; and
  939-1              (2)  be secured by other or additional revenues and
  939-2  deed of trust liens.
  939-3        (b)  The provisions of this chapter relating to issuance of
  939-4  bonds, security for bonds, approval by the attorney general, and
  939-5  remedies of bondholders apply to refunding bonds.
  939-6        (c)  The comptroller shall register refunding bonds:
  939-7              (1)  on the surrender and cancellation of the original
  939-8  bonds; or
  939-9              (2)  without surrender and cancellation of the original
 939-10  bonds if:
 939-11                    (A)  the resolution authorizing the refunding
 939-12  bonds provides that their proceeds be deposited in the bank where
 939-13  the original bonds are payable; and
 939-14                    (B)  the refunding bonds are issued in an amount
 939-15  sufficient to pay the principal of, interest on, and any redemption
 939-16  premium applicable to the original bonds up to their option date or
 939-17  maturity date.  (Sec. 383.032, Health and Safety Code.)
 939-18        Sec. 31.033.  Legal Investments; Security for Deposits.
 939-19  (a)  Bonds issued under this chapter are legal and authorized
 939-20  investments for:
 939-21              (1)  a bank;
 939-22              (2)  a savings bank;
 939-23              (3)  a trust company;
 939-24              (4)  a savings and loan association;
 939-25              (5)  an insurance company;
 939-26              (6)  a fiduciary;
 939-27              (7)  a trustee; and
  940-1              (8)  a sinking fund of a municipality, county, school
  940-2  district, or other political corporation or subdivision of the
  940-3  state.
  940-4        (b)  The bonds may secure the deposits of public funds of the
  940-5  state or a municipality, county, school district, or other
  940-6  political corporation or subdivision of the state.  The bonds are
  940-7  lawful and sufficient security for those deposits in an amount up
  940-8  to their face value, if accompanied by all appurtenant unmatured
  940-9  coupons.  (Sec. 383.033, Health and Safety Code.)
 940-10        Sec. 31.034.  Bonds Not General Obligation.  The bonds are
 940-11  special obligations payable solely from revenues pledged to their
 940-12  payment and are not general obligations of the governing body, the
 940-13  issuer, or the state.  A bondholder may not demand payment from
 940-14  money obtained from a tax or other revenue of the issuer, excluding
 940-15  revenues pledged to the payment of the bonds.  (Sec. 383.034,
 940-16  Health and Safety Code.)
 940-17                (Chapters 32-49 reserved for expansion)
 940-18                    TITLE 5.  ENVIRONMENTAL QUALITY
 940-19             CHAPTER 50.  TOXIC CHEMICAL RELEASE REPORTING
 940-20        Sec. 50.001.  Short Title.  This chapter may be cited as the
 940-21  Texas Toxic Chemical Release Reporting Act.  (Sec. 370.001, Health
 940-22  and Safety Code.)
 940-23        Sec. 50.002.  Definitions.  In this chapter:
 940-24              (1)  "Administrator" means the administrator of the
 940-25  United States Environmental Protection Agency.
 940-26              (2)  "Environment" means water, air, and land and the
 940-27  interrelationship that exists among and between water, air, and
  941-1  land and all living things.
  941-2              (3)  "Facility" means all buildings, equipment,
  941-3  structures, and other stationary items that are located on a single
  941-4  site or on contiguous or adjacent sites and are owned or operated
  941-5  by the same person or by any person who controls, is controlled by,
  941-6  or is under common control with that person.
  941-7              (4)  "Manufacture" means to produce, prepare, import,
  941-8  or compound a toxic chemical.
  941-9              (5)  "Person" means an individual, trust, firm,
 941-10  joint-stock company, corporation, including a government
 941-11  corporation, partnership, association, state, commission,
 941-12  municipality or other political subdivision of a state, or
 941-13  interstate body.
 941-14              (6)  "Process" means to prepare a toxic chemical, after
 941-15  its manufacture, for distribution in commerce:
 941-16                    (A)  in the same form or physical state as, or in
 941-17  a different form or physical state from, the form in which the
 941-18  chemical was received by the person preparing the chemical; or
 941-19                    (B)  as part of an article containing the toxic
 941-20  chemical.
 941-21              (7)  "Release" means any spilling, leaking, pumping,
 941-22  pouring, emitting, emptying, discharging, injecting, escaping,
 941-23  leaching, dumping, or otherwise disposing into the environment any
 941-24  toxic chemical.  The term includes the abandonment or discarding of
 941-25  barrels, containers, and other closed receptacles of any toxic
 941-26  chemical.
 941-27              (8)  "Threshold amount" means the amount established by
  942-1  the administrator under the Emergency Planning and Community
  942-2  Right-to-Know Act of 1986 (42 U.S.C.  Section 11001 et seq.).
  942-3              (9)  "Toxic chemical" means a chemical designated as a
  942-4  toxic chemical by the administrator under the Emergency Planning
  942-5  and Community Right-to-Know Act of 1986 (42 U.S.C. Section 11001 et
  942-6  seq.).
  942-7              (10)  "Toxic chemical release form" means the form
  942-8  published by the administrator under the Emergency Planning and
  942-9  Community Right-to-Know Act of 1986 (42 U.S.C. Section 11001 et
 942-10  seq.).  (Sec. 370.002, Health and Safety Code.)
 942-11        Sec. 50.003.  Toxic Chemical Release Form Required of Certain
 942-12  Facilities.  (a)  The owner or operator of a facility shall submit
 942-13  a toxic chemical release form to the executive director if the
 942-14  facility:
 942-15              (1)  has 10 or more full-time employees and a standard
 942-16  industrial classification code between 20 and 39 that was in effect
 942-17  on July 1, 1985, or has been designated as a facility subject to
 942-18  these requirements by the administrator; and
 942-19              (2)  manufactured, processed, or otherwise used a toxic
 942-20  chemical in excess of the threshold amount during the calendar year
 942-21  for which a toxic chemical release form is required.
 942-22        (b)  The owner or operator of a facility subject to
 942-23  Subsection (a) shall submit a toxic chemical release form for each
 942-24  toxic chemical manufactured, processed, or otherwise used at the
 942-25  facility during the preceding calendar year in a quantity exceeding
 942-26  the threshold amount.
 942-27        (c)  The form shall be submitted not later than July 1 of
  943-1  each year and must contain data that reflect each release that
  943-2  occurred during the preceding calendar year.  The administrator may
  943-3  modify the frequency with which a report must be submitted under
  943-4  this section as provided under the Emergency Planning and Community
  943-5  Right-to-Know Act of 1986 (42 U.S.C. Section 11001 et seq.).  (Sec.
  943-6  370.003, Health and Safety Code.)
  943-7        Sec. 50.004.  Threshold Amounts for Reporting.  (a)  The
  943-8  threshold amounts for purposes of reporting a toxic chemical under
  943-9  Section 50.003 are as follows:
 943-10              (1)  for a toxic chemical used, but not manufactured or
 943-11  processed, at a facility, 10,000 pounds of the toxic chemical used
 943-12  at the facility during the preceding calendar year; or
 943-13              (2)  for a toxic chemical manufactured or processed at
 943-14  a facility, 25,000 pounds of the toxic chemical manufactured or
 943-15  processed at the facility during the preceding calendar year.
 943-16        (b)  The administrator may establish a threshold amount for a
 943-17  toxic chemical different from the amount established under
 943-18  Subsection (a).  (Sec. 370.004, Health and Safety Code.)
 943-19        Sec. 50.005.  Use of Available Data.  (a)  To provide the
 943-20  information required on the toxic chemical release form, the owner
 943-21  or operator of a facility may use:
 943-22              (1)  readily available data, including monitoring data,
 943-23  collected under other law; or
 943-24              (2)  reasonable estimates of the amounts involved if
 943-25  data under Subdivision (1) are not readily available.
 943-26        (b)  This section does not require monitoring or measurement
 943-27  of the quantities, concentration, or frequency of a toxic chemical
  944-1  released into the environment beyond the monitoring and measurement
  944-2  required under other law or regulation.
  944-3        (c)  To ensure consistency, data must be expressed in common
  944-4  units, as designated by the administrator.  (Sec. 370.005, Health
  944-5  and Safety Code.)
  944-6        Sec. 50.006.  Public Information.  (a)  A toxic chemical
  944-7  release form required under this chapter is intended to provide
  944-8  information to the public, including federal, state, and local
  944-9  governments and citizens of the communities surrounding a facility
 944-10  covered under Section 50.003.
 944-11        (b)  A toxic chemical release form shall be made available in
 944-12  a manner consistent with the Emergency Planning and Community
 944-13  Right-to-Know Act of 1986 (42 U.S.C. Section 11001 et seq.) and the
 944-14  open records law, Chapter 424, Acts of the 63rd Legislature,
 944-15  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
 944-16  Statutes).  (Sec. 370.006, Health and Safety Code.)
 944-17        Sec. 50.007.  Enforcement and Penalties.  (a)  Any person,
 944-18  other than a governmental entity, who violates this chapter is
 944-19  liable to the commission for a civil penalty not to exceed $10,000
 944-20  for each violation.
 944-21        (b)  The commission may assess any civil penalty for which a
 944-22  person is liable under this section by administrative order or may
 944-23  refer an action to assess and collect the penalty to the attorney
 944-24  general.  (Sec. 371.009, Health and Safety Code.)
 944-25      CHAPTER 51.  USED OIL COLLECTION, MANAGEMENT, AND RECYCLING
 944-26                   SUBCHAPTER A.  GENERAL PROVISIONS
 944-27        Sec. 51.001.  Short Title.  This chapter may be cited as the
  945-1  Used Oil Collection, Management, and Recycling Act.  (Sec. 371.001,
  945-2  Health and Safety Code.)
  945-3        Sec. 51.002.  Findings.  The legislature finds that:
  945-4              (1)  when properly managed, used oil is a valuable
  945-5  energy resource, the reuse of which may make a significant
  945-6  contribution toward energy efficiency and conservation;
  945-7              (2)  recycling used oil to produce fuel requires
  945-8  significantly less energy than is needed to refine crude oil into
  945-9  fuel;
 945-10              (3)  millions of gallons of used oil generated each
 945-11  year by private citizens in the state are not available for
 945-12  recycling because of improper disposal practices and the lack of
 945-13  collection facilities;
 945-14              (4)  although there is a reliable system for the
 945-15  collection and recycling of used oil generated by business and
 945-16  industry, private citizens have only limited access to that system
 945-17  and often dispose of their used oil on land or in landfills,
 945-18  sewers, drainage systems, septic tanks, surface waters or
 945-19  groundwaters, watercourses, or marine waters;
 945-20              (5)  improper disposal of this used oil is both a
 945-21  significant environmental problem and a waste of a valuable energy
 945-22  resource; and
 945-23              (6)  adequate public funds are required to provide for
 945-24  the proper collection, management, and recycling of used oil.
 945-25  (Sec. 371.002, Health and Safety Code.)
 945-26        Sec. 51.003.  Definitions.  In this chapter:
 945-27              (1)  "Automotive oil" means any lubricating oils
  946-1  intended for use in an internal combustion engine, crankcase,
  946-2  transmission, gear box, or differential for an automobile, bus, or
  946-3  truck.
  946-4              (2)  "Do-it-yourself (DIY) used oil" means used oil
  946-5  that is generated by a person who changes the person's own
  946-6  automotive oil.
  946-7              (3)  "Generator" means a person whose act or process
  946-8  produces used oil.
  946-9              (4)  "Public used oil collection center" means:
 946-10                    (A)  an automotive service facility that in the
 946-11  course of business accepts for recycling small quantities of used
 946-12  oil from private citizens;
 946-13                    (B)  a facility that stores used oil in
 946-14  aboveground tanks and in the course of business accepts for
 946-15  recycling small quantities of used oil from private citizens; and
 946-16                    (C)  a publicly sponsored collection facility
 946-17  that is designated and authorized by the department to accept for
 946-18  recycling small quantities of used oil from private citizens.
 946-19              (5)  "Reclaiming" means using methods, other than
 946-20  rerefining, to remove insoluble impurities from used oil and making
 946-21  the used oil suitable for further use as a lubricant or petroleum
 946-22  product.  The term includes settling, heating, dehydration,
 946-23  filtration, or centrifuging.
 946-24              (6)  "Recycling" means:
 946-25                    (A)  preparing used oil for reuse as a petroleum
 946-26  product by rerefining, reclaiming, or other means; or
 946-27                    (B)  using used oil as a lubricant or petroleum
  947-1  product instead of using a petroleum product made from new oil.
  947-2              (7)  "Rerefining" means applying refining processes to
  947-3  used oil to produce high-quality base stocks for lubricants or
  947-4  other petroleum products.
  947-5              (8)  "Used oil" means any oil that has been refined
  947-6  from crude oil or a synthetic oil that, as a result of use,
  947-7  storage, or handling, has become unsuitable for its original
  947-8  purpose because of impurities or the loss of original properties,
  947-9  but that may be suitable for further use and is recyclable.  (Sec.
 947-10  371.003, Health and Safety Code.)
 947-11            (Sections 51.004-51.020 reserved for expansion)
 947-12               SUBCHAPTER B.  USED OIL RECYCLING PROGRAM
 947-13        Sec. 51.021.  Public Education.  The commission shall conduct
 947-14  an education program to inform the public of the need for and
 947-15  benefits of collection and recycling of used oil.  The program
 947-16  shall:
 947-17              (1)  establish, maintain, and publicize a used oil
 947-18  information center that prepares and disperses materials and
 947-19  information explaining laws and rules regulating used oil and
 947-20  informing the public of places and methods for proper recycling of
 947-21  used oil;
 947-22              (2)  encourage the voluntary establishment of used oil
 947-23  collection and recycling programs by private businesses and
 947-24  organizations and by local governments and provide technical
 947-25  assistance to persons who organize those programs; and
 947-26              (3)  encourage local governments to procure recycled
 947-27  automotive and industrial oils and oils blended with recycled oils,
  948-1  if those oils meet equipment manufacturer's specifications.  (Sec.
  948-2  371.021, Health and Safety Code.)
  948-3        Sec. 51.022.  Notice by Retail Dealer.  A retail dealer who
  948-4  annually sells directly to the public more than 500 gallons of oil
  948-5  in containers for use off-premises shall post in a prominent place
  948-6  a sign provided by the commission informing the public that
  948-7  improper disposal of used oil is prohibited by law.  The sign shall
  948-8  also prominently display the toll-free telephone number of the
  948-9  state used oil information center established under Section 51.021.
 948-10  (Sec. 371.022, Health and Safety Code.)
 948-11        Sec. 51.023.  Grants to Local Governments.  (a)  The
 948-12  commission shall develop a grant program for local governments that
 948-13  encourages the collection, reuse, and recycling of DIY used oil.
 948-14        (b)  A grant may be made for any project approved by the
 948-15  commission.  The commission shall consider for grant assistance any
 948-16  local government project that uses one or more of the following
 948-17  programs:
 948-18              (1)  curbside pickup of containers of DIY used oil by a
 948-19  local government or its representative;
 948-20              (2)  retrofitting of municipal solid waste equipment to
 948-21  facilitate curbside pickup of DIY used oil;
 948-22              (3)  establishment of publicly operated DIY used oil
 948-23  collection centers at landfills, fire stations, or other public
 948-24  places;
 948-25              (4)  provision of containers and other materials and
 948-26  supplies that can be used to store DIY used oil for pickup or
 948-27  delivery to a used oil collection center in an environmentally
  949-1  sound manner; and
  949-2              (5)  any other activity the commission determines will
  949-3  encourage the proper recycling of DIY used oil.
  949-4        (c)  The commission by rule shall establish procedures for
  949-5  the application for and criteria for the award of grants under this
  949-6  section.  (Sec. 371.023, Health and Safety Code.)
  949-7        Sec. 51.024.  Collection Facilities.  (a)  All businesses
  949-8  that change motor oil for the public and all appropriate government
  949-9  agencies are encouraged to serve as public used oil collection
 949-10  centers.
 949-11        (b)  A public used oil collection center annually shall:
 949-12              (1)  register with the commission; and
 949-13              (2)  report to the commission the amounts of used oil
 949-14  collected by the center from the public.
 949-15        (c)  The commission shall adopt rules governing the
 949-16  registration of and reporting by public used oil collection
 949-17  centers.
 949-18        (d)  The commission by rule shall adopt standards for
 949-19  managing and operating a public used oil collection center.
 949-20        (e)  The commission may impose a registration fee in an
 949-21  amount sufficient to cover the cost of registering public used oil
 949-22  collection centers.  (Sec. 371.024, Health and Safety Code.)
 949-23        Sec. 51.025.  Limitation of Liability.  (a)  A person may not
 949-24  recover from the owner, operator, or lessor of a registered public
 949-25  used oil collection center any damages or costs of response actions
 949-26  at another location resulting from a release or threatened release
 949-27  of used oil collected at the center if:
  950-1              (1)  the owner, operator, or lessor of the collection
  950-2  center does not mix the used oil collected with any hazardous waste
  950-3  or polychlorinated biphenyls (PCBs);
  950-4              (2)  the owner, operator, or lessor of the collection
  950-5  center does not accept used oil that the owner, operator, or lessor
  950-6  knows contains hazardous waste or PCBs; and
  950-7              (3)  the collection center is in compliance with
  950-8  management standards adopted by the department.
  950-9        (b)  For purposes of this section, the owner, operator, or
 950-10  lessor of a public used oil collection center may presume that a
 950-11  quantity of less than five gallons of used oil accepted at any one
 950-12  time from any member of the public is not mixed with a hazardous
 950-13  waste or PCBs, provided that the owner, operator, or lessor acts in
 950-14  good faith.
 950-15        (c)  This section applies only to activities directly related
 950-16  to the collection of used oil by a public used oil collection
 950-17  center.  This section does not apply to grossly negligent
 950-18  activities related to the operation of a used oil collection
 950-19  center.
 950-20        (d)  This section does not affect or modify the obligations
 950-21  or liability of any person other than the owner, operator, or
 950-22  lessor of the collection center under any other provisions of state
 950-23  or federal law, including common law, for injury or damage
 950-24  resulting from a release of used oil or hazardous substances.
 950-25        (e)  This section does not affect or modify the obligations
 950-26  or liability of any owner, operator, or lessor of a collection
 950-27  center with regard to services other than accepting used oil from
  951-1  the public.  (Sec. 371.025, Health and Safety Code.)
  951-2        Sec. 51.026.  Registration of Persons Transporting,
  951-3  Marketing, or Recycling Used Oil.  (a)  A person who transports
  951-4  over public highways of this state more than 500 gallons of used
  951-5  oil annually, who markets more than 500 gallons of used oil
  951-6  annually, or who recycles more than 10,000 gallons of used oil
  951-7  annually shall register annually with the commission on forms
  951-8  prescribed by the commission and in accordance with commission
  951-9  rules.
 951-10        (b)  The commission shall develop a registration program for
 951-11  transporters, marketers, and recyclers of used oil.
 951-12        (c)  The commission shall adopt rules governing registration
 951-13  and reporting of used oil transporters, marketers, and recyclers.
 951-14  The rules shall require that a used oil transporter, marketer, or
 951-15  recycler:
 951-16              (1)  register annually with the commission;
 951-17              (2)  report annually the sources of used oil
 951-18  transported, marketed, or recycled during the preceding year, the
 951-19  quantity of used oil received, the date of receipt, and the
 951-20  destination or end use of the used oil;
 951-21              (3)  provide evidence of familiarity with applicable
 951-22  state laws and rules and management procedures applicable to used
 951-23  oil transportation, marketing, or recycling; and
 951-24              (4)  provide proof of liability insurance or other
 951-25  evidence of financial responsibility for any liability that may be
 951-26  incurred in transporting, marketing, or recycling used oil.
 951-27        (d)  The commission by rule shall adopt reasonable management
  952-1  and safety standards for the transportation, marketing, and
  952-2  recycling of used oil.
  952-3        (e)  The commission may impose a registration fee in an
  952-4  amount sufficient to cover the cost of registering used oil
  952-5  transporters, marketers, and recyclers.
  952-6        (f)  A utility or industrial generator of used oil that
  952-7  transports its own used oil from one generator-owned or
  952-8  generator-operated facility to another or that recycles its own
  952-9  used oil for use in its operations is not required to register or
 952-10  report under this section.  (Sec. 371.026, Health and Safety Code.)
 952-11        Sec. 51.027.  Gifts and Grants.  The commission may apply
 952-12  for, request, solicit, contract for, receive, and accept gifts,
 952-13  grants, donations, and other assistance from any source to carry
 952-14  out its powers and duties under this chapter.  (Sec. 371.027,
 952-15  Health and Safety Code.)
 952-16        Sec. 51.028.  Rules.  The commission may adopt any rules
 952-17  necessary to carry out the purposes of this chapter.  (Sec.
 952-18  371.028, Health and Safety Code.)
 952-19            (Sections 51.029-51.040 reserved for expansion)
 952-20         SUBCHAPTER C.  CERTAIN ACTIONS PROHIBITED; PENALTIES
 952-21        Sec. 51.041.  Actions Prohibited.  (a)  A person may not
 952-22  collect, transport, store, recycle, use, discharge, or dispose of
 952-23  used oil in any manner that endangers the public health or welfare
 952-24  or endangers or damages the environment.
 952-25        (b)  A person commits an offense if the person:
 952-26              (1)  intentionally discharges used oil into a sewer,
 952-27  drainage system, septic tank, surface water or groundwater,
  953-1  watercourse, or marine water;
  953-2              (2)  knowingly mixes or commingles used oil with solid
  953-3  waste that is to be disposed of in landfills or directly disposes
  953-4  of used oil on land or in landfills;
  953-5              (3)  intentionally mixes or commingles used oil with
  953-6  hazardous waste or other hazardous substances or PCBs;
  953-7              (4)  transports, markets, or recycles used oil within
  953-8  the state without first complying with the registration
  953-9  requirements of Section 51.026 and rules adopted under that
 953-10  section;
 953-11              (5)  applies used oil to roads or land for dust
 953-12  suppression, weed abatement, or other similar uses that introduce
 953-13  used oil into the environment; or
 953-14              (6)  violates an order of the commission to cease and
 953-15  desist any activity prohibited by this section or any rule
 953-16  applicable to a prohibited activity.
 953-17        (c)  It is an exception to the application of Subsection (b)
 953-18  if a person unknowingly disposes into a landfill any used oil that
 953-19  has not been properly segregated or separated by the generator from
 953-20  other solid wastes.
 953-21        (d)  It is an exception to the application of Subsection
 953-22  (b)(2) if the mixing or commingling of used oil with solid waste
 953-23  that is to be disposed of in landfills is incident to and the
 953-24  unavoidable result of the mechanical shredding of motor vehicles,
 953-25  appliances, or other items of scrap, used, or obsolete metals.
 953-26  (Sec. 371.041, Health and Safety Code.)
 953-27        Sec. 51.042.  Criminal Penalties.  (a)  Except as provided by
  954-1  Subsection (b), an offense under Section 51.041 is a Class C
  954-2  misdemeanor.
  954-3        (b)  If it is shown on the trial of an offense under Section
  954-4  51.041 that the defendant has previously been convicted of an
  954-5  offense under Section 51.041, the offense is a Class A misdemeanor.
  954-6  (Sec. 371.042, Health and Safety Code.)
  954-7        Sec. 51.043.  Civil Penalty.  (a)  Except as provided by
  954-8  Subsection (c), a person who violates this chapter or a rule or
  954-9  order adopted under this chapter is liable for a civil penalty of
 954-10  not less than $100 or more than $500 for each act of violation and
 954-11  for each day of violation.
 954-12        (b)  A civil penalty recovered in a suit brought by a local
 954-13  government under this section shall be divided equally between the
 954-14  state and the local government that brought the suit.  The state
 954-15  shall deposit its recovery to the credit of the used oil recycling
 954-16  fund.
 954-17        (c)  The penalty imposed by this section does not apply to
 954-18  failure to pay a fee under Section 2.183 or failure to file a
 954-19  report under Section 51.024 or 51.026.
 954-20        (d)  The commission, a local government in whose jurisdiction
 954-21  the violation occurs, or the state may bring suit to recover a
 954-22  penalty under this section.  (Sec. 371.043, Health and Safety
 954-23  Code.)
 954-24        Sec. 51.044.  Injunctive Relief.  (a)  If it appears that a
 954-25  violation or threat of violation of this chapter or any rule or
 954-26  order adopted under this chapter has occurred or is about to occur
 954-27  and is causing or may cause immediate injury or constitutes a
  955-1  significant threat to the health, welfare, or personal property of
  955-2  a citizen or a local government, the commission, the local
  955-3  government, or the state may bring suit in district court for
  955-4  injunctive relief to restrain the violation or the threat of
  955-5  violation.
  955-6        (b)  In a suit for injunctive relief, the court may grant any
  955-7  injunctive or mandatory relief warranted by the facts, including a
  955-8  temporary restraining order, a temporary injunction, or a permanent
  955-9  injunction.  Injunctive relief shall be granted without the
 955-10  requirement for a bond or other undertaking by any governmental
 955-11  entity seeking the injunction.  (Sec. 371.044, Health and Safety
 955-12  Code.)
 955-13        Sec. 51.045.  Venue.  A suit for injunctive relief, for
 955-14  recovery of a civil penalty, or both, may be brought in:
 955-15              (1)  the county in which the defendant resides;
 955-16              (2)  the county in which the violation or threat of
 955-17  violation occurs; or
 955-18              (3)  Travis County.  (Sec. 371.045, Health and Safety
 955-19  Code.)
 955-20                        CHAPTER 52.  RECYCLING
 955-21                   SUBCHAPTER A.  RECYCLING PROGRAMS
 955-22        Sec. 52.001.  Definitions.  In this subchapter:
 955-23              (1)  "Compost" is the disinfected and stabilized
 955-24  product of the decomposition process that is used or sold for use
 955-25  as a soil amendment, artificial top soil, growing medium amendment,
 955-26  or other similar uses.
 955-27              (2)  "Composting" means the controlled biological
  956-1  decomposition of organic materials through microbial activity.
  956-2  Depending on the specific application, composting can serve as both
  956-3  a volume reduction and a waste treatment measure.  A beneficial
  956-4  organic composting activity is an appropriate waste management
  956-5  solution that shall divert compatible materials from the solid
  956-6  waste stream that cannot be recycled into higher grade uses and
  956-7  convert these materials into a useful product that can serve as a
  956-8  soil amendment or mulch.
  956-9              (3)  "Life-cycle cost benefit analysis" means a method
 956-10  of comparing the total costs of products over their lifetimes based
 956-11  on initial maintenance costs which include the initial cost,
 956-12  maintenance costs, and other related expenses.
 956-13              (4)  "Postconsumer waste" means a material or product
 956-14  that has served its intended use and has been discarded after
 956-15  passing through the hands of a final user.  For the purpose of this
 956-16  subchapter, the term does not include industrial or hazardous
 956-17  waste.
 956-18              (5)  "Recyclable material" means material that has been
 956-19  recovered or diverted from the non-hazardous solid waste stream for
 956-20  purposes of reuse, recycling, or reclamation, a substantial portion
 956-21  of which is consistently used in the manufacture of products which
 956-22  may otherwise be produced using raw or virgin materials.
 956-23  Recyclable material is not solid waste.  However, recyclable
 956-24  material may become solid waste at such time, if any, as it is
 956-25  abandoned or disposed of rather than recycled, whereupon it will be
 956-26  solid waste with respect only to the party actually abandoning or
 956-27  disposing of the material.
  957-1              (6)  "Recycled material" means materials, goods, or
  957-2  products that consist of recyclable material or materials derived
  957-3  from postconsumer waste, industrial waste, or hazardous waste which
  957-4  may be used in place of a raw or virgin material in manufacturing a
  957-5  new product.
  957-6              (7)  "Recycled product" means a product which meets the
  957-7  requirements for recycled material content as prescribed by the
  957-8  rules established by the department described in Section 52.007.
  957-9              (8)  "Recycling" means a process by which materials
 957-10  that have served their intended use or are scrapped, discarded,
 957-11  used, surplus, or obsolete are collected, separated, or processed
 957-12  and returned to use in the form of raw materials in the production
 957-13  of new products.  Except for mixed municipal solid waste
 957-14  composting, that is, composting of the typical mixed solid waste
 957-15  stream generated by residential, commercial, and/or institutional
 957-16  sources, recycling includes the composting process if the compost
 957-17  material is put to beneficial reuse.
 957-18              (9)  "State agency" means a department, commission,
 957-19  board, office, council, or other agency in the executive branch of
 957-20  government that is created by the constitution or a statute of this
 957-21  state and has authority not limited to a geographical portion of
 957-22  the state.  The term does not include a university system or
 957-23  institution of higher education as defined by Section 61.003,
 957-24  Education Code.
 957-25              (10)  "Virgin material" means a raw material used in
 957-26  manufacturing that has not yet become a product.
 957-27              (11)  "Yard waste" means leaves, grass clippings, yard
  958-1  and garden debris, and brush, including clean woody vegetative
  958-2  material not greater than six inches in diameter, that results from
  958-3  landscaping maintenance and land-clearing operations.  The term
  958-4  does not include stumps, roots, or shrubs with intact root balls.
  958-5  (Sec. 361.421, Health and Safety Code.)
  958-6        Sec. 52.002.  State Recycling Goal.  (a)  It is the state's
  958-7  goal to achieve by January 1, 1994, the recycling of at least 40
  958-8  percent of the state's total municipal solid waste stream.
  958-9        (b)  In this section, "total municipal solid waste stream"
 958-10  means the sum of the state's total municipal solid waste that is
 958-11  disposed of as solid waste, measured in tons, and the total number
 958-12  of tons of recyclable material that has been diverted or recovered
 958-13  from the total municipal solid waste and recycled.
 958-14        (c)  The commission shall establish rules and reporting
 958-15  requirements through which progress toward achieving the
 958-16  established recycling goals can be measured.  The rules may take
 958-17  into consideration those ongoing community recycling programs where
 958-18  substantial progress has already been achieved.  The commission may
 958-19  also establish a limit on the amount of credit that may be given to
 958-20  certain high-volume materials in measuring recycling progress.
 958-21  (Sec. 361.422, Health and Safety Code.)
 958-22        Sec. 52.003.  Market Development Study and Implementation
 958-23  Program.  (a)  The General Land Office, in cooperation with the
 958-24  commission, the Railroad Commission of Texas, and the Texas
 958-25  Department of Commerce, shall initiate, coordinate, and conduct a
 958-26  comprehensive market development study that quantifies the
 958-27  potential benefits and costs of recycling in order to provide the
  959-1  groundwork for an economic development strategy that focuses on the
  959-2  state's waste management priorities established by Section 20.022
  959-3  and that includes development of recycling industries and markets
  959-4  as an integrated component.
  959-5        (b)  The study shall:
  959-6              (1)  identify existing economic and regulatory
  959-7  incentives and disincentives for creating an optimal market
  959-8  development strategy;
  959-9              (2)  analyze the market development implications of:
 959-10                    (A)  the state's waste management policies and
 959-11  regulations;
 959-12                    (B)  existing and potential markets for plastic,
 959-13  glass, paper, lead-acid batteries, tires, compost, scrap gypsum,
 959-14  and other recyclable materials; and
 959-15                    (C)  the state's tax structure and overall
 959-16  economic base;
 959-17              (3)  examine and make policy recommendations regarding
 959-18  the need for changes in or the development of:
 959-19                    (A)  economic policies that affect
 959-20  transportation, such as those embodied in freight rate schedules;
 959-21                    (B)  tax incentives and disincentives;
 959-22                    (C)  the availability of financial capital
 959-23  including grants, loans, and venture capital;
 959-24                    (D)  enterprise zones;
 959-25                    (E)  managerial and technical assistance;
 959-26                    (F)  job-training programs;
 959-27                    (G)  strategies for matching market supply and
  960-1  market demand for recyclable materials, including intrastate and
  960-2  interstate coordination;
  960-3                    (H)  the state recycling goal;
  960-4                    (I)  public-private partnerships;
  960-5                    (J)  research and development;
  960-6                    (K)  government procurement policies;
  960-7                    (L)  educational programs for the public,
  960-8  corporate and regulated communities, and government entities; and
  960-9                    (M)  public health and safety regulatory
 960-10  policies; and
 960-11              (4)  establish a comprehensive statewide strategy to
 960-12  expand markets for recycled products in Texas.
 960-13        (c)  In preparing the study, the responsible agencies may
 960-14  obtain research and development and technical assistance from the
 960-15  Hazardous Waste Research Center at Lamar University at Beaumont or
 960-16  other similar institutions.
 960-17        (d)  The General Land Office shall develop and carry out a
 960-18  program designed to implement the comprehensive statewide strategy
 960-19  established pursuant to Subsection (b)(4).  (Sec. 361.423, Health
 960-20  and Safety Code.)
 960-21        Sec. 52.004.  Recycling Awareness Campaign.  In order to
 960-22  raise public awareness and involvement in recycling and to increase
 960-23  markets for recycled products, the General Land Office shall
 960-24  develop and implement a statewide promotional campaign which
 960-25  includes:
 960-26              (1)  public service announcements on radio and
 960-27  television;
  961-1              (2)  a statewide information network to inform the
  961-2  public of recycling opportunities in their region of the state; and
  961-3              (3)  efforts to encourage business, industry, and
  961-4  government to purchase recycled products.  (Sec. 361.424, Health
  961-5  and Safety Code.)
  961-6        Sec. 52.005.  Governmental Entity Recycling.  (a)  A state
  961-7  agency, state court or judicial agency, a university system or
  961-8  institution of higher education, a county, municipality, school
  961-9  district, or special district shall:
 961-10              (1)  in cooperation with the State Purchasing and
 961-11  General Services Commission or the commission establish a program
 961-12  for the separation and collection of all recyclable materials
 961-13  generated by the entity's operations, including, at a minimum,
 961-14  aluminum, high-grade office paper, and corrugated cardboard;
 961-15              (2)  provide procedures for collecting and storing
 961-16  recyclable materials, containers for recyclable materials, and
 961-17  procedures for making contractual or other arrangements with buyers
 961-18  of recyclable materials;
 961-19              (3)  evaluate the amount of recyclable material
 961-20  recycled and modify the recycling program as necessary to ensure
 961-21  that all recyclable materials are effectively and practicably
 961-22  recycled; and
 961-23              (4)  establish educational and incentive programs to
 961-24  encourage maximum employee participation.
 961-25        (b)  The commission by order shall exempt a school district
 961-26  or a city with a population of less than 5,000 from compliance with
 961-27  this section if the commission finds that compliance would work a
  962-1  hardship on the district or the city.  The commission shall adopt
  962-2  rules for administering this subsection.  (Sec. 361.425, Health and
  962-3  Safety Code.)
  962-4        Sec. 52.006.  Governmental Entity Preference for Recycled
  962-5  Products.  (a)  A state agency, state court, or judicial agency not
  962-6  subject to the State Purchasing and General Services Act (Article
  962-7  601b, Vernon's Texas Civil Statutes), a county, municipality,
  962-8  school district, junior or community college district, or special
  962-9  district shall give preference in purchasing to products made of
 962-10  recycled materials if the products meet applicable specifications
 962-11  as to quantity and quality.
 962-12        (b)  An entity subject to this section regularly shall review
 962-13  and revise its procurement procedures and specifications for the
 962-14  purchase of goods, supplies, equipment, and materials in order to:
 962-15              (1)  eliminate procedures and specifications that
 962-16  explicitly discriminate against products made of recycled
 962-17  materials;
 962-18              (2)  encourage the use of products made of recycled
 962-19  materials; and
 962-20              (3)  ensure to the maximum extent economically feasible
 962-21  that the entity purchases products that may be recycled when they
 962-22  have served their intended use.
 962-23        (c)  In developing new procedures and specifications, the
 962-24  entity shall encourage the use of recycled products and products
 962-25  that may be recycled or reused.
 962-26        (d)  The commission by order shall exempt a school district
 962-27  or a city with a population of less than 5,000 from compliance with
  963-1  this section if the commission finds that compliance would work a
  963-2  hardship on the district or the city.  The commission shall adopt
  963-3  rules for administering this subsection.  (Sec. 361.426, Health and
  963-4  Safety Code.)
  963-5        Sec. 52.007.  Specifications for Recycled Products.  (a)  The
  963-6  commission, in consultation with the State Purchasing and General
  963-7  Services Commission, shall promulgate rules to establish guidelines
  963-8  which specify the percent of the total content of a product which
  963-9  must consist of recycled material for the product to be a "recycled
 963-10  product."
 963-11        (b)  The guidelines established under this section shall
 963-12  specify a minimum percent of the recycled material in a product
 963-13  which must be postconsumer waste.
 963-14        (c)  The guidelines established under this section shall be
 963-15  classified by types of products.
 963-16        (d)  The commission's guidelines shall be established taking
 963-17  into consideration the guidelines promulgated by the Environmental
 963-18  Protection Agency for federal procurement of recycled products as
 963-19  authorized by the Solid Waste Disposal Act (42 U.S.C. Section 3259
 963-20  et seq.).  (Sec. 361.427, Health and Safety Code.)
 963-21        Sec. 52.008.  Composting Program.  The commission shall put
 963-22  in place a composting program that is capable of achieving at least
 963-23  a 15 percent reduction in the amount of the municipal solid waste
 963-24  stream that is disposed of in landfills by January 1, 1994.  (Sec.
 963-25  361.428, Health and Safety Code.)
 963-26        Sec. 52.009.  Household Hazardous Waste.  The commission
 963-27  shall develop standards for household hazardous waste diversion
  964-1  programs such as collection facilities or waste collection days for
  964-2  cities, counties, or regions.  The commission's waste management
  964-3  financial assistance program described in Section 22.092 shall be
  964-4  expanded to include matching grants for costs of planning and
  964-5  implementing approved household hazardous waste diversion programs,
  964-6  excluding costs of disposal.  (Sec. 361.429, Health and Safety
  964-7  Code.)
  964-8        Sec. 52.010.  Newsprint Recycling Program.  (a)  It is the
  964-9  policy of this state that recycling of all paper products including
 964-10  old newspapers is vital to our economy and the preservation of our
 964-11  environment.  It is the purpose of this section to promote the
 964-12  state's policy by encouraging newspaper publishers to promote
 964-13  recycling through purchase of recycled products and by cooperating
 964-14  with local community organizations to establish and promote
 964-15  community collection efforts for all paper products.
 964-16        (b)  In order to observe and promote this policy the
 964-17  newspaper publishers of Texas will work with state officials and
 964-18  state agencies to identify potential sites and offer economic
 964-19  incentives in order to attract additional de-inking facilities and
 964-20  recycled newsprint mills to Texas.
 964-21        (c)  The newspaper publishers of Texas will also assist and
 964-22  participate in the market development study and implementation
 964-23  program established by Section 52.003.
 964-24        (d)  The commission shall promulgate rules and regulations
 964-25  which establish a newsprint recycling program for the state.
 964-26        (e)  The program shall include guidelines which set goals for
 964-27  the use of recycled newsprint by newspaper publishers, using the
  965-1  following target percentages of recycled newsprint in the total
  965-2  newsprint consumption of each newspaper publisher:
  965-3              (1)  10 percent by the end of the calendar year 1993;
  965-4              (2)  20 percent by the end of the calendar year 1997;
  965-5  and
  965-6              (3)  30 percent by the end of the calendar year 2000.
  965-7        (f)  Smaller newspapers may find it difficult to implement
  965-8  use of recycled newsprint.  Therefore, larger newspapers will be
  965-9  responsible for the necessary consumption to allow the percentages
 965-10  specified in Subsection (e) to represent total consumption of
 965-11  recycled newsprint by all Texas newspapers.
 965-12        (g)  In this section:
 965-13              (1)  "Newspaper" means a publication that is sold and
 965-14  that is printed on newsprint and published, printed, and
 965-15  distributed in the state, both daily and non-daily, to disseminate
 965-16  current news and information of general interest to the public.
 965-17              (2)  "Recycled newsprint" means newsprint which meets
 965-18  the specified guidelines under Section 52.007 to be classified as a
 965-19  recycled product.
 965-20        (h)  Publishers of newspapers subject to regulation under the
 965-21  newsprint recycling program shall submit annually, on or before
 965-22  January 31, a report to the commissioner which states the
 965-23  percentage of recycled newsprint used by the publisher in the
 965-24  preceding year, and, if the target percentage is not met, the
 965-25  publisher must include in the report:
 965-26              (1)  whether the publisher is able to obtain sufficient
 965-27  quantities of recycled newsprint at competitive prices and of
  966-1  satisfactory quality;
  966-2              (2)  whether the publisher has attempted to obtain
  966-3  recycled newsprint from every producer of recycled newsprint that
  966-4  offered to sell recycled newsprint to the publisher during the
  966-5  preceding calendar year; and
  966-6              (3)  the publisher's efforts to obtain recycled
  966-7  newsprint, including the name and address of each producer of
  966-8  recycled newsprint that the publisher contacted and the name and
  966-9  telephone number of the contact person at each of the producers.
 966-10        (i)  The executive director shall develop forms for and
 966-11  regulations governing the submission of the reports required by
 966-12  this subsection.
 966-13        (j)  If the executive director determines that newspaper
 966-14  publishers are not voluntarily meeting the target percentages
 966-15  prescribed by this section for the program, the commission may
 966-16  adopt mandatory enforcement measures.  (Sec. 361.430, Health and
 966-17  Safety Code.)
 966-18        Sec. 52.011.  Intrastate Transportation of Recyclable
 966-19  Materials.  (a)  The Railroad Commission of Texas shall set maximum
 966-20  intrastate rates for motor carriers transporting recyclable
 966-21  materials and shall set such maximum rates at a level which is
 966-22  comparable to interstate rates for transportation of recyclable
 966-23  materials which are assessed by interstate motor carriers providing
 966-24  the same kind, class, and quality of service.  Evidence of
 966-25  interstate services and interstate rates shall be presented at any
 966-26  rate proceeding before the railroad commission relating to
 966-27  recyclable materials in accordance with the railroad commission's
  967-1  applicable rules of procedure and evidence, as well as in
  967-2  accordance with the applicable provisions of the Administrative
  967-3  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  967-4  Civil Statutes).
  967-5        (b)  The railroad commission shall issue limited common
  967-6  carrier certificates, limited specialized motor carrier
  967-7  certificates, or contract carrier permits to those persons who
  967-8  desire to engage in the business of transporting recyclable
  967-9  materials for hire over the highways of this state.  The railroad
 967-10  commission shall adopt simplified rules for the granting of such
 967-11  limited certificates or permits of recyclable materials for hire.
 967-12  The rules shall provide for the issuance of permits on the showing
 967-13  of fitness, public necessity, and the ability to meet requisite
 967-14  safety standards by the applicant.  In considering the issue of
 967-15  public necessity, the railroad commission shall consider that
 967-16  efficient transportation of recyclable materials is essential to
 967-17  development of an effective statewide recycling program.  (Sec.
 967-18  361.431, Health and Safety Code.)
 967-19            (Sections 52.012-52.020 reserved for expansion)
 967-20  SUBCHAPTER B.  METALS RECYCLING ACTIVITIES; TRANSACTIONS INVOLVING
 967-21    LEAD-ACID BATTERIES, FUEL TANKS, OR PCB-CONTAINING CAPACITORS
 967-22        Sec. 52.021.  Definitions.  In this subchapter:
 967-23              (1)  "Metals recycling activity" means any business
 967-24  that is predominantly engaged in:
 967-25                    (A)  performing the manufacturing process by
 967-26  which scrap, used, or obsolete ferrous or nonferrous metals are
 967-27  converted into raw material products consisting of prepared grades
  968-1  and having an existing or potential economic value, by methods
  968-2  other than the exclusive use of hand tools, including processing,
  968-3  sorting, cutting, classifying, cleaning, baling, wrapping,
  968-4  shredding, shearing, or changing the physical form of those metals;
  968-5  or
  968-6                    (B)  the use of those raw material products in
  968-7  the manufacture of producer or consumer goods.
  968-8              (2)  "Motor vehicle" has the meaning assigned by
  968-9  Section 2(b), Uniform Act Regulating Traffic on Highways (Article
 968-10  6701d, Vernon's Texas Civil Statutes).
 968-11              (3)  "PCB-containing capacitor" means a capacitor that
 968-12  contains polychlorinated biphenyls and is regulated under the
 968-13  federal Toxic Substances Control Act (15 U.S.C. Section 2601 et
 968-14  seq.).
 968-15              (4)  "Person" means an individual, corporation,
 968-16  partnership, sole proprietorship, or other business entity.  (Sec.
 968-17  1, V.A.C.S. Art. 9009b.)
 968-18        Sec. 52.022.  Transactions involving lead-acid batteries,
 968-19  fuel tanks, or PCB-containing capacitors.  (a)  A person may not
 968-20  sell, convey, or otherwise transfer to a metals recycling activity
 968-21  a lead-acid battery, fuel tank, or PCB-containing capacitor that is
 968-22  included with other types of scrap, used, or obsolete metals
 968-23  without first obtaining from the metals recycling activity to which
 968-24  the lead-acid battery, fuel tank, or PCB-containing capacitor is
 968-25  being sold, conveyed, or transferred a written and signed
 968-26  acknowledgment that the scrap, used, or obsolete metals include one
 968-27  or more lead-acid batteries, fuel tanks, or PCB-containing
  969-1  capacitors.
  969-2        (b)  A person may not sell, convey, or otherwise transfer to
  969-3  a metals recycling activity any of the following that contain or
  969-4  enclose a lead-acid battery, fuel tank, or PCB-containing capacitor
  969-5  or of which a lead-acid battery, fuel tank, or PCB-containing
  969-6  capacitor is a part:
  969-7              (1)  a motor vehicle;
  969-8              (2)  a motor vehicle that has been junked, flattened,
  969-9  dismantled, or changed so that it has lost its character as a motor
 969-10  vehicle;
 969-11              (3)  an appliance; or
 969-12              (4)  any other item of scrap, used, or obsolete metal.
 969-13  (Sec. 2, V.A.C.S. Art. 9009b.)
 969-14        Sec. 52.023.  Exemptions.  This subchapter does not apply to:
 969-15              (1)  the sale, conveyance, or transfer by or on behalf
 969-16  of a metals recycling activity; or
 969-17              (2)  the sale, conveyance, or transfer of a lead-acid
 969-18  battery, fuel tank, or PCB-containing capacitor that is not:
 969-19                    (A)  included with other types of scrap, used, or
 969-20  obsolete metals; or
 969-21                    (B)  contained or enclosed in, or a part of:
 969-22                          (i)  a motor vehicle;
 969-23                          (ii)  a motor vehicle that has been junked,
 969-24  flattened, dismantled, or changed so that it has lost its character
 969-25  as a motor vehicle;
 969-26                          (iii)  an appliance; or
 969-27                          (iv)  any other item of scrap, used, or
  970-1  obsolete metal.  (Sec. 3, V.A.C.S. Art. 9009b.)
  970-2        Sec. 52.024.  Notification and posting.  A metals recycling
  970-3  activity shall post in a conspicuous location a notice that is
  970-4  readily visible to a person selling materials to the metals
  970-5  recycling activity.  The notice must be no smaller than 24 inches
  970-6  horizontally by 18 inches vertically and must contain the following
  970-7  language:
  970-8                         TEXAS LAW PROHIBITS:
  970-9        1.  THE SALE OF A WHOLE, FLATTENED, OR JUNKED MOTOR VEHICLE,
 970-10  AN APPLIANCE, OR ANY OTHER SCRAP METAL ITEM CONTAINING A LEAD-ACID
 970-11  BATTERY, FUEL TANK, OR PCB-CONTAINING CAPACITOR; AND
 970-12        2.  THE SALE OF LEAD-ACID BATTERIES, FUEL TANKS, OR
 970-13  PCB-CONTAINING CAPACITORS INCLUDED WITH OTHER SCRAP METALS WITHOUT
 970-14  OUR PRIOR WRITTEN ACKNOWLEDGMENT.
 970-15               VIOLATION OF THIS LAW IS A MISDEMEANOR.
 970-16  (Sec. 4, V.A.C.S. Art. 9009b.)
 970-17        Sec. 52.025.  Criminal penalty.  A person who violates this
 970-18  subchapter is guilty of a misdemeanor and on conviction is
 970-19  punishable by a fine of not more than $1,000, by confinement in the
 970-20  county jail for not more than 60 days, or by both fine and
 970-21  confinement.  (Sec. 5, V.A.C.S. Art. 9009b.)
 970-22                   CHAPTER 53.  POLLUTION PREVENTION
 970-23        Sec. 53.001.  Definitions.  In this chapter:
 970-24              (1)  "Acute hazardous waste" means hazardous waste
 970-25  listed by the administrator of the United States Environmental
 970-26  Protection Agency under the federal Solid Waste Disposal Act, as
 970-27  amended by the Resource Conservation and Recovery Act of 1976 (42
  971-1  U.S.C. Section 6901 et seq.), because the waste meets the criteria
  971-2  for listing hazardous waste identified in 40 C.F.R. Section
  971-3  261.11(a)(2).
  971-4              (2)  "Conditionally exempt small-quantity generator"
  971-5  means a generator that does not accumulate more than 1,000
  971-6  kilograms of hazardous waste at any one time on his facility and
  971-7  who generates less than 100 kilograms of hazardous waste in any
  971-8  given month.
  971-9              (3)  "Committee" means the waste reduction advisory
 971-10  committee established by Section 4.013.
 971-11              (4)  "Environment" means water, air, and land and the
 971-12  interrelationship that exists among and between water, air, land,
 971-13  and all living things.
 971-14              (5)  "Facility" means all buildings, equipment,
 971-15  structures, and other stationary items located on a single site or
 971-16  on contiguous or adjacent sites that are owned or operated by a
 971-17  person who is subject to this chapter or by a person who controls,
 971-18  is controlled by, or is under common control with a person subject
 971-19  to this chapter.
 971-20              (6)  "Generator" and "generator of hazardous waste"
 971-21  have the meaning assigned by Section 2.175.
 971-22              (7)  "Large-quantity generator" means a generator that
 971-23  generates, through ongoing processes and operations at a facility:
 971-24                    (A)  more than 1,000 kilograms of hazardous waste
 971-25  in a month; or
 971-26                    (B)  more than one kilogram of acute hazardous
 971-27  waste in a month.
  972-1              (8)  "Media" and "medium" mean air, water, and land
  972-2  into which waste is emitted, released, discharged, or disposed.
  972-3              (9)  "Pollutant" or "contaminant" includes any element,
  972-4  substance, compound, disease-causing agent, or mixture that after
  972-5  release into the environment and on exposure, ingestion,
  972-6  inhalation, or assimilation into any organism, either directly from
  972-7  the environment or indirectly by ingestion through food chains,
  972-8  will or may reasonably be anticipated to cause death, disease,
  972-9  behavioral abnormalities, cancer, genetic mutation, physiological
 972-10  malfunctions, including malfunctions in reproduction, or physical
 972-11  deformations in the organism or its offspring.  The term does not
 972-12  include petroleum, crude oil, or any fraction of crude oil that is
 972-13  not otherwise specifically listed or designated as a hazardous
 972-14  substance under Sections 101(14)(A) through (F) of the
 972-15  environmental response law, nor does it include natural gas,
 972-16  natural gas liquids, liquefied natural gas, synthetic gas of
 972-17  pipeline quality, or mixtures of natural gas and synthetic gas.
 972-18              (10)  "Source reduction" has the meaning assigned by
 972-19  the federal Pollution Prevention Act of 1990, Pub. L. No. 101-508,
 972-20  Section 6603, 104 Stat. 1388.
 972-21              (11)  "Waste minimization" means a practice that
 972-22  reduces the environmental or health hazards associated with
 972-23  hazardous wastes, pollutants, or contaminants.  Examples may
 972-24  include reuse, recycling, neutralization, and detoxification.
 972-25  (Sec. 361.501, Health and Safety Code.)
 972-26        Sec. 53.002.  Policy and Goals for Source Reduction and Waste
 972-27  Minimization.  (a)  It is the policy of the state to reduce
  973-1  pollution at its source and to minimize the impact of pollution in
  973-2  order to reduce risk to public health and the environment and
  973-3  continue to enhance the quality of air, land, and waters of the
  973-4  state where feasible.
  973-5        (b)  Source reduction is the primary goal of the state in
  973-6  implementing this policy because hazardous wastes, pollutants, and
  973-7  contaminants that are not generated or produced pose no threat to
  973-8  the environment and eliminate societal management and disposal
  973-9  costs.
 973-10        (c)  To further promote this policy, hazardous wastes,
 973-11  pollutants, and contaminants that cannot be reduced at the source
 973-12  should be minimized wherever possible.  Waste minimization, while
 973-13  secondary in preference to source reduction, is an important means
 973-14  for achieving more effective protection of public health and the
 973-15  environment while moving toward source reduction.  (Sec. 361.502,
 973-16  Health and Safety Code.)
 973-17        Sec. 53.003.  Agency Plans.  (a)  Consistent with state and
 973-18  federal regulations, to achieve the policies stated in Section
 973-19  53.002, the commission by rule shall, to the maximum extent that is
 973-20  technologically and economically feasible, develop plans to reduce
 973-21  the release of pollutants or contaminants into the air.
 973-22        (b)  Consistent with state and federal regulations, to
 973-23  achieve the policies stated in Section 53.002, to the maximum
 973-24  extent that is technologically and economically feasible, the
 973-25  commission shall:
 973-26              (1)  develop plans to reduce the release of pollutants
 973-27  or contaminants into water; and
  974-1              (2)  establish reasonable goals for the reduction of
  974-2  the volume of hazardous waste generated in the state and the amount
  974-3  of pollutants and contaminants using source reduction and waste
  974-4  minimization.
  974-5        (c)  In order to effectively use resources, the commission by
  974-6  rule shall develop a list of pollutants or contaminants and the
  974-7  level of releases of those pollutants or contaminants subject to
  974-8  source reduction and waste minimization planning.  (Sec. 361.503,
  974-9  Health and Safety Code.)
 974-10        Sec. 53.004.  Application.  (a)  Except as provided by
 974-11  Subsection (b), this chapter applies to the following persons:
 974-12              (1)  all large-quantity generators of hazardous waste;
 974-13              (2)  all generators other than large-quantity
 974-14  generators and conditionally exempt small-quantity generators; and
 974-15              (3)  persons subject to Section 313, Title III,
 974-16  Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C.
 974-17  Section 11023) whose releases exceed the levels established under
 974-18  Section 53.003(c).
 974-19        (b)  The commission by rule shall establish one or more
 974-20  schedules for the application of the requirements of this chapter
 974-21  to designated classes of persons described by Subsection (a). The
 974-22  schedule shall provide for the inclusion of all persons described
 974-23  by Subsection (a) on a date to be determined by the commission, and
 974-24  until that date this chapter applies only to those persons
 974-25  designated by rule of the commission.
 974-26        (c)  This chapter does not apply to a facility regulated by
 974-27  the Railroad Commission of Texas under Section 91.101 or 141.012,
  975-1  Natural Resources Code.  (Sec. 361.504, Health and Safety Code.)
  975-2        Sec. 53.005.  Source Reduction and Waste Minimization Plans.
  975-3  (a)  Persons identified under Section 53.004(a)(1) or (a)(3) shall
  975-4  prepare a source reduction and waste minimization plan.  Plans
  975-5  developed under this section must contain a separate component
  975-6  addressing source reduction activities and a separate component
  975-7  addressing waste minimization activities.  The plan must include,
  975-8  at a minimum:
  975-9              (1)  an initial survey that identifies:
 975-10                    (A)  for facilities subject to Section
 975-11  53.004(a)(1), activities that generate hazardous waste; and
 975-12                    (B)  for facilities subject to Section
 975-13  53.004(a)(3), activities that result in the release of pollutants
 975-14  or contaminants designated under Section 53.003(c);
 975-15              (2)  based on the initial survey, a prioritized list of
 975-16  economically and technologically feasible source reduction and
 975-17  waste minimization projects;
 975-18              (3)  an explanation of source reduction or waste
 975-19  minimization projects to be undertaken, with a discussion of
 975-20  technical and economic considerations, and environmental and human
 975-21  health risks considered in selecting each project to be undertaken;
 975-22              (4)  an estimate of the type and amount of reduction
 975-23  anticipated;
 975-24              (5)  a schedule for the implementation of each source
 975-25  reduction and waste minimization project;
 975-26              (6)  source reduction and waste minimization goals for
 975-27  the entire facility, including incremental goals to aid in
  976-1  evaluating progress;
  976-2              (7)  an explanation of employee awareness and training
  976-3  programs to aid in accomplishing source reduction and waste
  976-4  minimization goals;
  976-5              (8)  certification by the owner of the facility, or, if
  976-6  the facility is owned by a corporation, by an officer of the
  976-7  corporation that owns the facility who has the authority to commit
  976-8  the corporation's resources to implement the plan, that the plan is
  976-9  complete and correct;
 976-10              (9)  an executive summary of the plan; and
 976-11              (10)  identification of cases in which the
 976-12  implementation of a source reduction or waste minimization activity
 976-13  designed to reduce risk to human health or the environment may
 976-14  result in the release of a different pollutant or contaminant or
 976-15  may shift the release to another medium.
 976-16        (b)  The source reduction and waste minimization plan may
 976-17  include:
 976-18              (1)  a discussion of the person's previous efforts at
 976-19  the facility to reduce risk to human health and the environment or
 976-20  to reduce the generation of hazardous waste or the release of
 976-21  pollutants or contaminants;
 976-22              (2)  a discussion of the effect changes in
 976-23  environmental regulations have had on the achievement of the source
 976-24  reduction and waste minimization goals;
 976-25              (3)  the effect that events the person could not
 976-26  control have had on the achievement of the source reduction and
 976-27  waste minimization goals;
  977-1              (4)  a description of projects that have reduced the
  977-2  generation of hazardous waste or the release of pollutants or
  977-3  contaminants; and
  977-4              (5)  a discussion of the operational decisions made at
  977-5  the facility that have affected the achievement of the source
  977-6  reduction or waste minimization goals or other risk reduction
  977-7  efforts.
  977-8        (c)  The commission shall adopt rules for the development of
  977-9  simplified, as appropriate, source reduction and waste minimization
 977-10  plans and reports for persons identified under Section
 977-11  53.004(a)(2).
 977-12        (d)  The commission shall provide information to aid in the
 977-13  preparation of source reduction and waste minimization plans to be
 977-14  prepared by a person under this section.  (Sec. 361.505, Health and
 977-15  Safety Code.)
 977-16        Sec. 53.006.  Source Reduction and Waste Minimization Annual
 977-17  Report.  (a)  A person required to develop a source reduction and
 977-18  waste minimization plan for a facility under this chapter shall
 977-19  submit to the commission an annual report and a current executive
 977-20  summary according to any schedule developed under Section 53.004.
 977-21        (b)  The annual report shall comply with rules adopted by the
 977-22  commission.  The report shall detail the facility's progress in
 977-23  implementing the source reduction and waste minimization plan and
 977-24  include:
 977-25              (1)  an assessment of the progress toward the
 977-26  achievement of the facility source reduction goal and the facility
 977-27  waste minimization goal;
  978-1              (2)  a statement to include, for facilities subject to
  978-2  Section 53.004(a)(1), the amount of hazardous waste generated and,
  978-3  for facilities subject to Section 53.004(a)(3), the amount of the
  978-4  release of pollutants or contaminants designated under Section
  978-5  53.003(c) in the year preceding the report, and a comparison of
  978-6  those amounts with the amounts generated or released in a base year
  978-7  selected by the commission; and
  978-8              (3)  any modification to the plan.
  978-9        (c)  The annual report may include:
 978-10              (1)  a discussion of the person's previous effort at
 978-11  the facility to reduce hazardous waste or the release of pollutants
 978-12  or contaminants through source reduction or waste minimization;
 978-13              (2)  a discussion of the effect changes in
 978-14  environmental regulations have had on the achievement of the source
 978-15  reduction and waste minimization goals;
 978-16              (3)  the effect that events the person could not
 978-17  control have had on the achievement of the source reduction and
 978-18  waste minimization goals; and
 978-19              (4)  a discussion of the operational decisions the
 978-20  person has made that have affected the achievement of the source
 978-21  reduction and waste minimization goals.
 978-22        (d)  The annual report shall contain a separate component
 978-23  addressing source reduction activities and a separate component
 978-24  addressing waste minimization activities.  (Sec. 361.506, Health
 978-25  and Safety Code.)
 978-26        Sec. 53.007.  Administrative Completeness.  (a)  The
 978-27  commission may review a source reduction and waste minimization
  979-1  plan or annual report to determine whether the plan or report
  979-2  complies with this chapter and rules adopted under Section 53.004,
  979-3  53.005, or 53.006, as appropriate.
  979-4        (b)  Failure to have a source reduction and waste
  979-5  minimization plan in accordance with Sections 53.004 and 53.005 or
  979-6  failure to submit a source reduction and waste minimization annual
  979-7  report in accordance with Section 53.006 is a violation of this
  979-8  chapter and Chapter 20.  (Sec. 361.507, Health and Safety Code.)
  979-9        Sec. 53.008.  Confidentiality.  (a)  A source reduction and
 979-10  waste minimization plan shall be maintained at each facility owned
 979-11  or operated by a person who is subject to this chapter and shall be
 979-12  available to commission personnel for inspection.  The source
 979-13  reduction and waste minimization plan is not a public record for
 979-14  the purposes of the open records law, Chapter 424, Acts of the 63rd
 979-15  Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
 979-16  Texas Civil Statutes).
 979-17        (b)  The executive summary and the annual report are public
 979-18  records.  On request, the person shall make available to the public
 979-19  a copy of the executive summary or annual report.
 979-20        (c)  If an owner or operator of a facility for which a source
 979-21  reduction and waste minimization plan has been prepared shows to
 979-22  the satisfaction of the commission that an executive summary,
 979-23  annual report, or portion of a summary or report prepared under
 979-24  this chapter would divulge a trade secret if made public, the
 979-25  commission shall classify as confidential the summary, report, or
 979-26  portion of the summary or report.
 979-27        (d)  To the extent that a plan, executive summary, annual
  980-1  report, or portion of a plan, summary, or annual report would
  980-2  otherwise qualify as a trade secret, an action by the commission or
  980-3  an employee of the commission does not affect its status as a trade
  980-4  secret.
  980-5        (e)  Information classified by the commission as confidential
  980-6  under this section is not a public record for purposes of the open
  980-7  records law, Chapter 424, Acts of the 63rd Legislature, Regular
  980-8  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes),
  980-9  and may not be used in a public hearing or disclosed to a person
 980-10  outside the commission unless a court decides that the information
 980-11  is necessary for the determination of an issue being decided at the
 980-12  public hearing.  (Sec. 361.508, Health and Safety Code.)
 980-13        Sec. 53.009.  Source Reduction and Waste Minimization
 980-14  Assistance.  (a)  The office of pollution prevention established
 980-15  under Section 2.103 shall assist generators of hazardous waste and
 980-16  owners or operators of facilities that release pollutants or
 980-17  contaminants in reducing the volume, toxicity, and adverse public
 980-18  health and environmental effects of hazardous waste generated or
 980-19  pollutants or contaminants released in the state.  To provide the
 980-20  assistance, the office may:
 980-21              (1)  compile, organize, and make available for
 980-22  distribution information on source reduction and waste minimization
 980-23  technologies and procedures;
 980-24              (2)  compile and make available for distribution to
 980-25  business and industry a list of consultants on source reduction and
 980-26  waste minimization technologies and procedures and a list of
 980-27  researchers at state universities who can assist in source
  981-1  reduction and waste minimization activities;
  981-2              (3)  sponsor and conduct conferences and individualized
  981-3  workshops on source reduction and waste minimization for specific
  981-4  classes of business or industry;
  981-5              (4)  facilitate and promote the transfer of source
  981-6  reduction and waste minimization technologies and procedures among
  981-7  businesses and industries;
  981-8              (5)  if appropriate, develop and distribute model
  981-9  source reduction and waste minimization plans for the major classes
 981-10  of business or industry, as identified by the office, that generate
 981-11  and subsequently treat, store, or dispose of hazardous waste or
 981-12  that release a pollutant or contaminant in the state;
 981-13              (6)  develop and make available for distribution
 981-14  recommended source reduction and waste minimization audit
 981-15  procedures for use by business or industry in conducting internal
 981-16  source reduction and waste minimization audits;
 981-17              (7)  provide to business and industry, as resources
 981-18  allow, on-site assistance in identifying potential source reduction
 981-19  and waste minimization techniques and practices and in conducting
 981-20  internal source reduction and waste minimization audits;
 981-21              (8)  compile and make available for distribution
 981-22  information on tax benefits available to business or industry for
 981-23  implementing source reduction and waste minimization technologies
 981-24  and practices;
 981-25              (9)  establish procedures for setting priorities among
 981-26  key industries and businesses for receiving assistance from the
 981-27  office;
  982-1              (10)  develop the information base and data collection
  982-2  programs necessary to set program priorities and to evaluate
  982-3  progress in source reduction and waste minimization;
  982-4              (11)  develop training programs and materials for state
  982-5  and local regulatory personnel and private business and industry
  982-6  regarding the nature and applicability of source reduction and
  982-7  waste minimization practices;
  982-8              (12)  produce a biennial report on source reduction and
  982-9  waste minimization activities, achievements, problems, and goals,
 982-10  including a biennial work plan;
 982-11              (13)  participate in existing state, federal, and
 982-12  industrial networks of individuals and groups involved in source
 982-13  reduction and waste minimization; and
 982-14              (14)  publicize to business and industry, and
 982-15  participate in and support, waste exchange programs.
 982-16        (b)  The commission shall provide education and training to
 982-17  river authorities, municipalities, and public groups on source
 982-18  reduction and waste minimization technologies and practices.
 982-19        (c)  The commission shall develop incentives to promote the
 982-20  implementation of source reduction and waste minimization,
 982-21  including:
 982-22              (1)  commission recommendations to the governor for
 982-23  awards in recognition of source reduction and waste minimization
 982-24  efforts;
 982-25              (2)  an opportunity by rules of the commission for an
 982-26  owner or operator of a facility to be exempted from the
 982-27  requirements of this chapter on meeting appropriate criteria for
  983-1  practical economic and technical completion of the source reduction
  983-2  and waste minimization plan for the facility; and
  983-3              (3)  expedited review of a permit amendment application
  983-4  if the amendment is necessary to implement a source reduction and
  983-5  waste minimization project, considering only the directly affected
  983-6  parts of the permit.
  983-7        (d)  The commission shall work closely with the Gulf Coast
  983-8  Hazardous Substance Research Center to identify areas in which the
  983-9  center could perform research in the development of alternative
 983-10  technologies or conduct related projects to promote source
 983-11  reduction and waste minimization.  (Sec. 361.509, Health and Safety
 983-12  Code.)
 983-13        Sec. 53.010.  Report to Legislature.  Notwithstanding any
 983-14  other reporting requirement, the commission shall prepare a
 983-15  biennial report to the presiding officers of the legislature and
 983-16  the governor concerning the implementation of this chapter.  The
 983-17  report must include:
 983-18              (1)  the status of the technical assistance program;
 983-19              (2)  a description of progress toward reducing the
 983-20  volume of hazardous waste generated and the amount of pollutants
 983-21  and contaminants in the state;
 983-22              (3)  an analysis of and recommendations for changes to
 983-23  source reduction and waste minimization programs, including
 983-24  consideration of additional enforcement provisions; and
 983-25              (4)  an identification of any other needed pollution
 983-26  prevention activities.  (Sec. 361.510, Health and Safety Code.)
 983-27            CHAPTER 54.  WATER SAVING PERFORMANCE STANDARDS
  984-1        Sec. 54.001.  Definitions.  In this chapter:
  984-2              (1)  "Plumbing fixture" means a sink faucet, lavatory
  984-3  faucet, faucet aerator, shower head, urinal, toilet, flush valve
  984-4  toilet, or drinking water fountain.
  984-5              (2)  "Toilet" means a toilet or water closet except a
  984-6  wall-mounted toilet that employs a flushometer or flush valve.
  984-7  (Sec. 372.001, Health and Safety Code.)
  984-8        Sec. 54.002.  Water Saving Performance Standards.  (a)  A
  984-9  person may not sell, offer for sale, distribute, or import into
 984-10  this state a plumbing fixture for use in this state unless:
 984-11              (1)  the plumbing fixture meets the water saving
 984-12  performance standards provided by Subsection (b); and
 984-13              (2)  the plumbing fixture is listed by the commission
 984-14  under Subsection (c).
 984-15        (b)  The water saving performance standards for a plumbing
 984-16  fixture are those established by the American National Standards
 984-17  Institute or the following standards, whichever are more
 984-18  restrictive:
 984-19              (1)  for a sink or lavatory faucet or a faucet aerator,
 984-20  maximum flow may not exceed 2.2 gallons of water per minute at a
 984-21  pressure of 60 pounds per square inch when tested according to
 984-22  testing procedures adopted by the board;
 984-23              (2)  for a shower head, maximum flow may not exceed
 984-24  2.75 gallons of water per minute at a constant pressure over 80
 984-25  pounds per square inch when tested according to testing procedures
 984-26  adopted by the board;
 984-27              (3)  for a urinal and the associated flush valve, if
  985-1  any, maximum flow may not exceed an average of one gallon of water
  985-2  per flushing when tested according to the hydraulic performance
  985-3  requirements adopted by the board;
  985-4              (4)  for a toilet, maximum flow may not exceed an
  985-5  average of 1.6 gallons of water per flushing when tested according
  985-6  to the hydraulic performance requirements adopted by the board;
  985-7              (5)  for a wall-mounted toilet that employs a
  985-8  flushometer or flush valve, maximum flow may not exceed an average
  985-9  of two gallons of water per flushing or the flow rate established
 985-10  by the American National Standards Institute for ultra-low flush
 985-11  toilets, whichever is lower; and
 985-12              (6)  a drinking water fountain must be self-closing.
 985-13        (c)  The commission shall make and maintain a current list of
 985-14  plumbing fixtures that are certified to the commission by the
 985-15  manufacturer or importer to meet the water saving performance
 985-16  standards established by Subsection (b).  To have a plumbing
 985-17  fixture included on the list, a manufacturer or importer must
 985-18  supply to the commission, in the form prescribed by the commission,
 985-19  the identification and the performance specifications of the
 985-20  plumbing fixture.  The commission may test a listed fixture to
 985-21  determine the accuracy of the manufacturer's or importer's
 985-22  certification and shall remove from the list a fixture the
 985-23  commission finds to be inaccurately certified.
 985-24        (d)  The commission may assess against a manufacturer or an
 985-25  importer a reasonable fee for an inspection of a product to
 985-26  determine the accuracy of the manufacturer's or importer's
 985-27  certification in an amount determined by the commission to cover
  986-1  the expenses incurred in the administration of this chapter.  A fee
  986-2  received by the commission under this subsection shall be deposited
  986-3  in the state treasury to the credit of the commission and may be
  986-4  used only for the administration of this chapter.
  986-5        (e)  The commission shall, to the extent appropriate and
  986-6  practical, employ the standards designated American National
  986-7  Standards by the American National Standards Institute in
  986-8  determining or evaluating performance standards or testing
  986-9  procedures under this chapter.
 986-10        (f)  This section does not apply to:
 986-11              (1)  a plumbing fixture that has been ordered by or is
 986-12  in the inventory of a building contractor or a wholesaler or
 986-13  retailer of plumbing fixtures on January 1, 1992;
 986-14              (2)  a fixture, such as a safety shower or aspirator
 986-15  faucet, that, because of the fixture's specialized function, cannot
 986-16  meet the standards provided by this section;
 986-17              (3)  a fixture originally installed before January 1,
 986-18  1992, that is removed and reinstalled in the same building on or
 986-19  after that date; or
 986-20              (4)  a fixture imported only for use at the importer's
 986-21  domicile.  (Sec. 372.002, Health and Safety Code.)
 986-22        Sec. 54.003.  Labeling Requirements.  (a)  A person may not
 986-23  sell, offer for sale, distribute, or import into this state a
 986-24  plumbing fixture unless the plumbing fixture, including each
 986-25  component of a toilet, flush valve toilet, or urinal, and the
 986-26  associated packaging are marked and labeled in accordance with the
 986-27  rules adopted by the commission.
  987-1        (b)  The commission shall adopt rules for the marking or
  987-2  labeling of plumbing fixtures.  The rules must require information
  987-3  concerning water-saving measures to be included in required marks
  987-4  or labels.  In developing marking or labeling requirements, the
  987-5  shall consider the technological and economical feasibility of a
  987-6  mark or label.
  987-7        (c)  The commission by rule shall prohibit the sale, offering
  987-8  for sale, distribution, or importation into this state of a new
  987-9  commercial or residential clothes-washing machine, dish-washing
 987-10  machine, or lawn sprinkler unless:
 987-11              (1)  the manufacturer has furnished to the commission,
 987-12  in the form prescribed by the commission, the identification and
 987-13  performance specifications of the device; and
 987-14              (2)  the clothes-washing or dish-washing machine or
 987-15  lawn sprinkler is labeled in accordance with rules adopted by the
 987-16  commission with a statement that describes the device's water use
 987-17  characteristics.
 987-18        (d)  Rules adopted or amended under this section shall be
 987-19  developed by the commission in conjunction with a technical
 987-20  advisory panel of designated representatives of the Texas Water
 987-21  Development Board and the Texas State Board of Plumbing Examiners.
 987-22        (e)  This section shall not apply to those clothes-washing or
 987-23  dish-washing machines that are subject to and in compliance with
 987-24  the labeling requirements of the National Appliance Energy
 987-25  Conservation Act of 1987, Public Law 100-12.  (Sec. 372.003, Health
 987-26  and Safety Code.)
 987-27        Sec. 54.004.  Administrative Penalty.  (a)  A person who
  988-1  violates this chapter or a rule adopted under this chapter shall be
  988-2  assessed an administrative penalty in an amount not to exceed
  988-3  $5,000 for each violation and for each day of a continuing
  988-4  violation.
  988-5        (b)  A person against whom an administrative penalty is
  988-6  assessed is entitled to notice and a hearing on the assessment of
  988-7  the penalty, as provided by rule of the commission.
  988-8        (c)  Not later than the 30th day after the date on which the
  988-9  executive director's order assessing the administrative penalty is
 988-10  final, the person assessed shall pay the full amount of the penalty
 988-11  or file a petition for judicial review.  If the person seeks
 988-12  judicial review, the person shall send the amount of the penalty to
 988-13  the executive director for placement in escrow or post with the
 988-14  executive director a bond in a form approved by the executive
 988-15  director for the amount of the penalty, the bond to be effective
 988-16  until judicial review of the order is final.  A person who fails to
 988-17  comply with this subsection waives judicial review.
 988-18        (d)  The executive director may request enforcement by the
 988-19  attorney general if the person assessed the penalty fails to comply
 988-20  with this section.
 988-21        (e)  Judicial review of the order assessing the penalty is
 988-22  under Section 19, Administrative Procedure and Texas Register Act
 988-23  (Article 6252-13a, Vernon's Texas Civil Statutes).
 988-24        (f)  An administrative penalty collected under this section
 988-25  shall be deposited in the state treasury to the credit of the
 988-26  general revenue fund.  (Sec. 372.004, Health and Safety Code.)
 988-27        Sec. 54.005.  Civil Penalty; Injunction.  (a)  A person who
  989-1  violates this chapter or a rule adopted under this chapter is
  989-2  subject to a civil penalty not to exceed $5,000 for each violation
  989-3  and each day of a continuing violation.
  989-4        (b)  If it appears that a person has violated, is violating,
  989-5  or is threatening to violate this chapter or a rule adopted under
  989-6  this chapter, the commission, a county, or a municipality may bring
  989-7  a civil action in a district court in Travis County, the county in
  989-8  which the defendant resides, or the county where the violation
  989-9  occurred, is occurring, or is threatened for:
 989-10              (1)  injunctive relief to restrain the person from
 989-11  continuing the violation or threat of violation;
 989-12              (2)  the assessment of a civil penalty for a violation;
 989-13  or
 989-14              (3)  both injunctive relief and a civil penalty.
 989-15        (c)  The commission is an indispensable party in a suit
 989-16  brought by a county or municipality under this section.
 989-17        (d)  A district court shall grant injunctive relief, assess a
 989-18  civil penalty, or both, as warranted by the facts, if the court
 989-19  finds that the person has violated or is violating this chapter or
 989-20  a rule adopted under this chapter.
 989-21        (e)  In a suit to enjoin a violation of this chapter or a
 989-22  rule adopted under this chapter, the court shall grant the state,
 989-23  commission, county, or municipality, without bond or other
 989-24  undertaking, any injunction that the facts warrant, including a
 989-25  temporary restraining order, temporary injunction, or permanent
 989-26  injunction.
 989-27        (f)  A civil penalty recovered in a suit brought by a county
  990-1  or municipality under this section shall be divided equally between
  990-2  the state and the county or municipality that first brought the
  990-3  suit.  The state's share of any civil penalty shall be deposited in
  990-4  the state treasury to the credit of the general revenue fund.
  990-5        (g)  At the request of the department, the attorney general
  990-6  shall bring and conduct a suit in the name of the state for
  990-7  injunctive relief, to recover a civil penalty, or both.  (Sec.
  990-8  372.005, Health and Safety Code.)
  990-9        SECTION 2.  CONFORMING AMENDMENT.  Section 12.081, Water
 990-10  Code, is transferred to Subchapter C, Chapter 50, Water Code,
 990-11  renumbered, and amended to read as follows:
 990-12        Sec. 50.065 <12.081>.  Continuing Right of Supervision of
 990-13  Districts and Authorities Created Under Article III, Section 52 and
 990-14  Article XVI, Section 59 of the Texas Constitution.  (a)  The powers
 990-15  and duties of all districts and authorities created under Article
 990-16  III, Section 52 and Article XVI, Section 59 of the Texas
 990-17  Constitution are subject to the continuing right of supervision of
 990-18  the State of Texas by and through the commission or its successor,
 990-19  and this supervision may include but is not limited to the
 990-20  authority to:
 990-21              (1)  inquire into the competence, fitness, and
 990-22  reputation of the officers and directors of any district or
 990-23  authority;
 990-24              (2)  require, on its own motion or on complaint by any
 990-25  person, audits or other financial information, inspections,
 990-26  evaluations, and engineering reports;
 990-27              (3)  issue subpoenas for witnesses to carry out its
  991-1  authority under this subsection;
  991-2              (4)  institute investigations and hearings using
  991-3  examiners appointed by the commission;
  991-4              (5)  issue rules necessary to supervise the districts
  991-5  and authorities, except that such rules shall not apply to water
  991-6  quality ordinances adopted by any river authority which meet or
  991-7  exceed minimum requirements established by the commission <Texas
  991-8  Water Commission>;  and
  991-9              (6)  the right of supervision granted herein shall not
 991-10  apply to matters relating to electric utility operations.
 991-11        (b)  The commission shall prepare and submit to the governor,
 991-12  lieutenant governor, and speaker of the house a report of any
 991-13  findings made under this section.
 991-14        SECTION 3.  CONFORMING AMENDMENT.  Section 12.083, Water
 991-15  Code, is transferred to Subchapter J, Chapter 50, Water Code,
 991-16  renumbered, and amended to read as follows:
 991-17        Sec. 50.333 <12.083>.  Districts; Creation, Investigations
 991-18  and Bonds.  (a)  The commission succeeds to the duties and
 991-19  responsibilities of the Texas Water Rights Commission with regard
 991-20  to the creation of districts as defined by Section 50.001(1) of
 991-21  this code and to approve or disapprove the issuance of the bonds of
 991-22  all such districts.
 991-23        (b)  The executive director shall investigate and report on
 991-24  the organization and feasibility of all districts as defined by
 991-25  Section 50.001(1) of this code.
 991-26        SECTION 4.  CONFORMING AMENDMENT.  Section 12.082, Water
 991-27  Code, is transferred to Subchapter C, Chapter 53, Water Code,
  992-1  renumbered, and amended to read as follows:
  992-2        Sec. 53.0631 <12.082>.  Duty to Investigate Fresh Water
  992-3  Supply District Projects.  (a)  In this section "designated<:>
  992-4              <(1)  "District" means fresh water supply district.>
  992-5              <(2)  "Designated> agent" means any licensed engineer
  992-6  selected by the executive director of the Texas Natural Resource
  992-7  Conservation Commission to perform the functions specified in this
  992-8  section.
  992-9        (b)  The Texas Natural Resource Conservation Commission
 992-10  <commission> shall investigate and report on the organization and
 992-11  feasibility of all districts created under this chapter <Chapter 53
 992-12  of this code> which issue bonds under the provisions of this <that>
 992-13  chapter.
 992-14        (c)  A district that wants to issue bonds for any purpose
 992-15  shall submit to the commission a written application for
 992-16  investigation, together with a copy of the engineer's report and a
 992-17  copy of the data, profiles, maps, plans, and specifications made in
 992-18  connection with the engineer's report.
 992-19        (d)  The executive director or his designated agent shall
 992-20  examine the application and other information and shall visit the
 992-21  project and carefully inspect it.  The executive director or his
 992-22  designated agent may ask for and shall be supplied with additional
 992-23  data and information requisite to a reasonable and careful
 992-24  investigation of the project and proposed improvements.
 992-25        (e)  The executive director or his designated agent shall
 992-26  file with the commission written suggestions for changes and
 992-27  improvements and shall furnish a copy of the suggestions to the
  993-1  board <of the district>.  If the commission finally approves or
  993-2  refuses to approve the project or the issuance of bonds for the
  993-3  improvements it shall make a full written report, file it in its
  993-4  office, and furnish a copy of the report to the board <of the
  993-5  district>.
  993-6        (f)  During the course of construction of the project and
  993-7  improvements, no substantial alterations shall be made in the plans
  993-8  and specifications without the approval of the executive director.
  993-9  The executive director or his designated agent has full authority
 993-10  to inspect the improvements at any time during construction to
 993-11  determine if the project is being constructed in accordance with
 993-12  approved plans and specifications.
 993-13        (g)  If the executive director finds that the project is not
 993-14  being constructed in accordance with the approved plans and
 993-15  specifications, the executive director immediately shall notify in
 993-16  writing by certified mail each member of the board <of the
 993-17  district> and the board <its> manager.  If, within 10 days after
 993-18  the notice is mailed, the board <of the district> does not take
 993-19  steps to insure that the project is being constructed in accordance
 993-20  with the approved plans and specifications, the executive director
 993-21  shall give written notice of that fact to the attorney general.
 993-22        (h)  After the attorney general receives the notice, he may
 993-23  bring an action for injunctive relief, or he may bring quo warranto
 993-24  proceedings against the directors.  Venue for either of these
 993-25  actions is exclusively in the district of Travis County.
 993-26        SECTION 5.  CONFORMING AMENDMENT.  Subchapter C, Chapter 27,
 993-27  Water Code, is transferred to Title 3, Natural Resources Code,
  994-1  renumbered as Chapter 118, and amended to read as follows:
  994-2            CHAPTER 118 <SUBCHAPTER C>.  OIL AND GAS WASTE
  994-3        Sec. 118.001 <27.031>.  Permit From Railroad Commission.  (a)
  994-4  No person may continue using a disposal well or begin drilling a
  994-5  disposal well or converting an existing well into a disposal well
  994-6  to dispose of oil and gas waste without first obtaining a permit
  994-7  from the railroad commission.
  994-8        (b)  Except as inconsistent with this chapter, Chapter 13,
  994-9  Environment Code, applies to the administration and enforcement,
 994-10  and penalties of this chapter.  The crimes and penalties provided
 994-11  by Subchapter D, Chapter 13, Environment Code, apply to this
 994-12  chapter.
 994-13        Sec. 118.002 <27.032>.  Information Required of Applicant.
 994-14  The railroad commission shall require an applicant to furnish any
 994-15  information the railroad commission considers necessary to
 994-16  discharge its duties under this chapter.
 994-17        Sec. 118.003 <27.0321>.  Application Fee.  With each
 994-18  application for an oil and gas waste disposal well permit, the
 994-19  applicant shall submit to the railroad commission a nonrefundable
 994-20  fee of $100.
 994-21        Sec. 118.004 <27.033>.  Letter From Executive Director.  A
 994-22  person making application to the railroad commission for a permit
 994-23  under this chapter shall submit with the application a letter from
 994-24  the executive director of the Texas Natural Resource Conservation
 994-25  Commission stating that drilling and using the disposal well and
 994-26  injecting oil and gas waste into the subsurface stratum will not
 994-27  endanger the freshwater strata in that area and that the formation
  995-1  or stratum to be used for the disposal is not freshwater sand.
  995-2        Sec. 118.005 <27.034>.  Railroad Commission Rules, Etc.
  995-3  (a)  The railroad commission shall adopt rules and procedures
  995-4  reasonably required for the performance of its powers, duties, and
  995-5  functions under this chapter, including rules for notice and
  995-6  procedure of public hearings.  The rules for notice shall include
  995-7  provisions for giving notice to local governments and affected
  995-8  persons.  The railroad commission shall define "affected person" by
  995-9  rule.
 995-10        (b)  Copies of any rules under this chapter proposed by the
 995-11  railroad commission shall, before their adoption, be sent to the
 995-12  Texas Natural Resource Conservation Commission <commission, the
 995-13  Texas Department of Health, the Water Well Drillers Board,> and any
 995-14  other persons the railroad commission may designate.  Any agency or
 995-15  person to whom the copies of proposed rules and regulations are
 995-16  sent may submit comments and recommendations to the railroad
 995-17  commission and shall have reasonable time to do so as the railroad
 995-18  commission may prescribe.
 995-19        Sec. 118.006 <27.035>.  Jurisdiction Over in Situ Recovery of
 995-20  Tar Sands.  (a)  The railroad commission has jurisdiction over the
 995-21  in situ recovery of tar sands and may issue permits for injection
 995-22  wells used for the in situ recovery of tar sands.
 995-23        (b)  A person may not begin to drill an injection well to be
 995-24  used in the in situ recovery of tar sands unless that person has a
 995-25  valid permit for the well issued by the railroad commission under
 995-26  this chapter.
 995-27        (c)  The railroad commission shall adopt rules that are
  996-1  necessary to administer and regulate the in situ recovery of tar
  996-2  sands.
  996-3        (d)  For purposes of regulation by the railroad commission,
  996-4  an injection well for the in situ recovery of tar sands is
  996-5  designated as a Class V well under the underground injection
  996-6  control program administered by the railroad commission.
  996-7        Sec. 118.007 <27.036>.  Jurisdiction Over Brine Mining.
  996-8  (a)  The railroad commission has jurisdiction over brine mining and
  996-9  may issue permits for injection wells used for brine mining.
 996-10        (b)  A person may not begin to drill an injection well to be
 996-11  used for brine mining unless that person has a valid permit for the
 996-12  well issued by the railroad commission under this chapter.
 996-13        (c)  The railroad commission shall adopt rules that are
 996-14  necessary to administer and regulate brine mining.
 996-15        (d)  For purposes of regulation by the railroad commission,
 996-16  an injection well for brine mining is designated as a Class III
 996-17  well under the underground injection control program administered
 996-18  by the railroad commission.
 996-19        (e) <(f)>  This section does not invalidate any permit for an
 996-20  injection well used for brine mining that was issued by the Texas
 996-21  Water Commission before the effective date of this section.  Within
 996-22  90 days after the effective date of this section, the Railroad
 996-23  Commission of Texas shall issue a substitute permit under the name
 996-24  and authority of the railroad commission to each person who on the
 996-25  effective date of this section holds a valid permit issued by the
 996-26  Texas Water Commission for an injection well used for brine mining.
 996-27        (f)  <(g)>  Application for injection well permits covering
  997-1  brine mining submitted to the Texas Water Commission  before the
  997-2  effective date of this section for which permits have not been
  997-3  issued by the commission shall be transmitted to the railroad
  997-4  commission.
  997-5        SECTION 6.  CONFORMING AMENDMENT.  Chapter 29, Water Code, is
  997-6  tranferred to Title 3, Natural Resources Code, renumbered as
  997-7  Chapter 119, and amended to read as follows:
  997-8                 CHAPTER 119 <29>.  SALT WATER HAULERS
  997-9                   SUBCHAPTER A.  GENERAL PROVISIONS
 997-10        Sec. 119.001 <29.001>.  Short Title.  This chapter may be
 997-11  cited as the Oil and Gas Waste Haulers Act.
 997-12        Sec. 119.002 <29.002>.  Definitions.  In this chapter:
 997-13              (1)  "Person" means an individual, association of
 997-14  individuals, partnership, corporation, receiver, trustee, guardian,
 997-15  executor, or a fiduciary or representative of any kind.
 997-16              (2)  "Railroad commission" means the Railroad
 997-17  Commission of Texas.
 997-18              (3)  "Oil and gas waste" means oil and gas waste as
 997-19  defined by Section 91.1011 of this code<, Natural Resources Code,>
 997-20  and includes water containing salt or other mineralized substances
 997-21  produced by drilling an oil or gas well or produced in connection
 997-22  with the operation of an oil or gas well.
 997-23              (4)  "Hauler" means a person who transports oil and gas
 997-24  waste for hire by any method other than by pipeline.
 997-25           (Sections 119.003-119.010 reserved for expansion)
 997-26                        SUBCHAPTER B.  PERMITS
 997-27        Sec. 119.011 <29.011>.  Application for Permit.  Any person
  998-1  may apply to the railroad commission for a permit to haul and
  998-2  dispose of oil and gas waste.
  998-3        Sec. 119.012 <29.012>.  Application Form.  The railroad
  998-4  commission shall prescribe a form on which an application for a
  998-5  permit may be made and shall provide the form to any person who
  998-6  wishes to submit an application.
  998-7        Sec. 119.013 <29.013>.  Contents of Application.  The
  998-8  application for a permit shall:
  998-9              (1)  state the number of vehicles the applicant plans
 998-10  to use for hauling oil and gas waste;
 998-11              (2)  affirmatively show that the vehicles are designed
 998-12  so that they will not leak during transportation of oil and gas
 998-13  waste;
 998-14              (3)  include an affidavit from a person who operates an
 998-15  approved system of oil and gas waste disposal stating that the
 998-16  applicant has permission to use the approved system;
 998-17              (4)  state the applicant's name, business address, and
 998-18  permanent mailing address; and
 998-19              (5)  include other relevant information required by
 998-20  railroad commission rules.
 998-21        Sec. 119.014 <29.014>.  Rejecting an Application.  If an
 998-22  application for a permit does not comply with Section 119.013
 998-23  <29.013> of this code or with reasonable rules of the railroad
 998-24  commission, the railroad commission may reject the application.
 998-25        Sec. 119.015 <29.015>.  Application Fee.  With each
 998-26  application for issuance, renewal, or material amendment of a
 998-27  permit, the applicant shall submit to the railroad commission a
  999-1  nonrefundable fee of $100.  Fees collected under this section shall
  999-2  be deposited in the oil-field cleanup fund.
  999-3        Sec. 119.016 <29.018>.  Suspension; Refusal to Renew.  The
  999-4  railroad commission may suspend or refuse to renew a permit for a
  999-5  period not to exceed one year if the permittee:
  999-6              (1)  violates the provisions of this chapter;
  999-7              (2)  violates reasonable rules promulgated under
  999-8  Section 119.020 <29.031> of this code; or
  999-9              (3)  does not maintain his operation at the standards
 999-10  that entitled him to a permit under Section 119.013 <29.013> of
 999-11  this code.
 999-12        Sec. 119.017 <29.019>.  Appeal.  Any person whose permit
 999-13  application is refused, whose permit is suspended, or whose
 999-14  application for permit renewal is refused by the railroad
 999-15  commission may file a petition in an action to set aside the
 999-16  railroad commission's act within the 30-day period immediately
 999-17  following the day he receives notice of the railroad commission's
 999-18  action.
 999-19        Sec. 119.018 <29.020>.  Suit to Compel Railroad Commission to
 999-20  Act.  If the railroad commission does not act within a reasonable
 999-21  time after a person applies for a permit or for renewal of a
 999-22  permit, the applicant may notify the railroad commission of his
 999-23  intention to file suit.  After 10 days have elapsed since the day
 999-24  the notice was given, the applicant may file a petition in an
 999-25  action to compel the railroad commission to show cause why it
 999-26  should not be directed by the court to take immediate action.
 999-27        Sec. 119.019 <29.021>.  Venue.  The venue in actions under
 1000-1  Sections 119.017 <29.019> and 119.018 <29.020> of this code is
 1000-2  fixed exclusively in the district courts of Travis County.
 1000-3        Sec. 119.020 <29.031>.  Rulemaking Power.  The railroad
 1000-4  commission shall adopt rules to effectuate the provisions of this
 1000-5  chapter.
 1000-6        Sec. 119.021 <29.032>.  Copies of Rules.  The railroad
 1000-7  commission shall print the rules and provide copies to persons who
 1000-8  apply for them.
 1000-9        Sec. 119.022 <29.033>.  Effective Date of Rules.  No rule or
1000-10  amendment to a rule is effective until after the 30-day period
1000-11  immediately following the day on which a copy of the rule is filed
1000-12  with the secretary of state.
1000-13           (Sections 119.023-119.033 reserved for expansion)
1000-14                  SUBCHAPTER C.  COMMISSION AUTHORITY
1000-15        Sec. 119.034 <29.034>.  Access to Property.  Members and
1000-16  employees of the railroad commission, on proper identification, may
1000-17  enter public or private property to inspect and investigate
1000-18  conditions relating to the hauling of oil and gas waste, to monitor
1000-19  compliance with a rule, permit, or other order of the railroad
1000-20  commission, or to examine and copy, during reasonable working
1000-21  hours, those records or memoranda of the business being
1000-22  investigated.  Members or employees acting under the authority of
1000-23  this section who enter an establishment on public or private
1000-24  property shall observe the establishment's posted safety, internal
1000-25  security, and fire protection rules.
1000-26           (Sections 119.035-119.040 reserved for expansion)
1000-27                  SUBCHAPTER D.  OFFENSES; PENALTIES
 1001-1        Sec. 119.041 <29.041>.  Hauling Without Permit.  No hauler
 1001-2  may haul or dispose of oil and gas waste off the lease, unit, or
 1001-3  other oil or gas property where it is generated unless the hauler
 1001-4  has a permit issued under this chapter.
 1001-5        Sec. 119.042 <29.042>.  Exceptions.  (a)  A person may haul
 1001-6  oil and gas waste for use in connection with drilling or servicing
 1001-7  an oil or gas well without obtaining a hauler's permit under this
 1001-8  chapter.
 1001-9        (b)  The commission by rule may except from the permitting
1001-10  requirements of this chapter specific categories of oil and gas
1001-11  waste other than salt water.
1001-12        Sec. 119.043 <29.043>.  Using Haulers Without Permit.  No
1001-13  person may knowingly utilize the services of a hauler to haul or
1001-14  dispose of oil and gas waste off the lease, unit, or other oil or
1001-15  gas property where it is generated if the hauler does not have a
1001-16  permit as required under this chapter.
1001-17        Sec. 119.044 <29.044>.  Disposing of Oil and Gas Waste.
1001-18  (a)  No hauler may dispose of oil and gas waste on public roads or
1001-19  on the surface of public land or private property in this state in
1001-20  other than a railroad commission-approved disposal facility without
1001-21  written authority from the railroad commission.
1001-22        (b)  No hauler may dispose of oil and gas waste on property
1001-23  of another in other than a railroad commission-approved disposal
1001-24  facility without the written authority of the landowner.
1001-25        Sec. 119.045 <29.045>.  Use of Unmarked Vehicles.  No person
1001-26  who is required to have a permit under this chapter may haul oil
1001-27  and gas waste in a vehicle that does not bear the owner's name and
 1002-1  the hauler's permit number.  This information shall appear on both
 1002-2  sides and the rear of the vehicle in characters not less than three
 1002-3  inches high.
 1002-4        Sec. 119.046 <29.046>.  Penalty.  A person who violates any
 1002-5  provision of this chapter is guilty of a misdemeanor and upon
 1002-6  conviction is punishable by a fine of not less than $100 nor more
 1002-7  than $1,000 or by confinement in the county jail for not more than
 1002-8  10 days or by both.
 1002-9        Sec. 119.047 <29.047>.  Administrative Penalty.  (a)  If a
1002-10  person violates the provisions of this chapter or a rule, order,
1002-11  license, permit, or certificate issued under this chapter, the
1002-12  person may be assessed a civil penalty by the railroad commission.
1002-13        (b)  The penalty may not exceed $10,000 a day for each
1002-14  violation.  Each day a violation continues may be considered a
1002-15  separate violation for purposes of penalty assessments.
1002-16        (c)  In determining the amount of the penalty, the railroad
1002-17  commission shall consider the permittee's history of previous
1002-18  violations of this chapter, the seriousness of the violation, any
1002-19  hazard to the health or safety of the public, and the demonstrated
1002-20  good faith of the permittee or person charged.
1002-21        Sec. 119.048 <29.048>.  Penalty Assessment Procedure.  (a)  A
1002-22  civil penalty may be assessed only after the permittee or person
1002-23  charged with a violation described under Section 119.047 <29.047>
1002-24  of this code has been given an opportunity for a public hearing.
1002-25        (b)  If a public hearing has been held, the railroad
1002-26  commission shall make findings of fact, and it shall issue a
1002-27  written decision as to the occurrence of the violation and the
 1003-1  amount of the penalty that is warranted, incorporating, when
 1003-2  appropriate, an order requiring that the penalty be paid.
 1003-3        (c)  If appropriate, the railroad commission shall
 1003-4  consolidate the hearings with other proceedings under this chapter.
 1003-5        (d)  If the permittee or person charged with the violation
 1003-6  fails to avail himself of the opportunity for a public hearing, a
 1003-7  civil penalty may be assessed by the railroad commission after it
 1003-8  has determined that a violation did occur and the amount of the
 1003-9  penalty that is warranted.
1003-10        (e)  The railroad commission shall then issue an order
1003-11  requiring that the penalty be paid.
1003-12        Sec. 119.049 <29.049>.  Payment of Penalty; Refund.  (a)  On
1003-13  the issuance of an order finding that a violation has occurred, the
1003-14  railroad commission shall inform the permittee and any other person
1003-15  charged within 30 days of the amount of the penalty.
1003-16        (b)  Within the 30-day period immediately following the day
1003-17  on which the decision or order is final as provided in Section
1003-18  16(c), Administrative Procedure and Texas Register Act (Article
1003-19  6252-13a, Vernon's Texas Civil Statutes), the person charged with
1003-20  the penalty shall:
1003-21              (1)  pay the penalty in full; or
1003-22              (2)  if the person seeks judicial review of either the
1003-23  amount of the penalty or the fact of the violation, or both:
1003-24                    (A)  forward the amount to the railroad
1003-25  commission for placement in an escrow account; or
1003-26                    (B)  in lieu of payment into escrow, post a
1003-27  supersedeas bond with the railroad commission under the following
 1004-1  conditions.  If the decision or order being appealed is the first
 1004-2  final railroad commission decision or order assessing any
 1004-3  administrative penalty against the person, the railroad commission
 1004-4  shall accept a supersedeas bond.  In the case of appeal of any
 1004-5  subsequent decision or order assessing any administrative penalty
 1004-6  against the person, regardless of the finality of judicial review
 1004-7  of any previous decision or order, the railroad commission may
 1004-8  accept a supersedeas bond.  Each supersedeas bond shall be for the
 1004-9  amount of the penalty and in a form approved by the railroad
1004-10  commission and shall stay the collection of the penalty until all
1004-11  judicial review of the decision or order is final.
1004-12        (c)  If through judicial review of the decision or order it
1004-13  is determined that no violation occurred or that the amount of the
1004-14  penalty should be reduced or not assessed, the railroad commission
1004-15  shall, within the 30-day period immediately following that
1004-16  determination, if the penalty has been paid to the railroad
1004-17  commission, remit the appropriate amount to the person, with
1004-18  accrued interest, or where a supersedeas bond has been posted, the
1004-19  railroad commission shall execute a release of such bond.
1004-20        (d)  Failure to forward the money to the railroad commission
1004-21  within the time provided by Subsection (b) of this section results
1004-22  in a waiver of all legal rights to contest the violation or the
1004-23  amount of the penalty.
1004-24        (e)  Judicial review of the order or decision of the railroad
1004-25  commission assessing the penalty shall be under the substantial
1004-26  evidence rule and shall be instituted by filing a petition with the
1004-27  district court of Travis County, Texas, and not elsewhere, as
 1005-1  provided for in Section 19, Administrative Procedure and Texas
 1005-2  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
 1005-3        Sec. 119.050 <29.050>.  Recovery of Penalty.  Civil penalties
 1005-4  owed under Sections 119.047-119.049 <29.047-29.049> of this code
 1005-5  may be recovered in a civil action brought by the attorney general
 1005-6  at the request of the railroad commission.
 1005-7                   SUBCHAPTER E.  CIVIL ENFORCEMENT
 1005-8        Sec. 119.051 <29.051>.  Civil Penalty.  (a)  A person who
 1005-9  violates this chapter, a rule or order of the railroad commission
1005-10  adopted under this chapter, or a term, condition, or provision of a
1005-11  permit issued under this chapter, is subject to a civil penalty of
1005-12  not to exceed $10,000 for each offense.  Each day a violation is
1005-13  committed is a separate offense.
1005-14        (b)  An action to recover the penalty under Subsection (a) of
1005-15  this section may be brought by the railroad commission in any court
1005-16  of competent jurisdiction in the county in which the offending
1005-17  activity occurred, in which the defendant resides, or in Travis
1005-18  County.
1005-19        Sec. 119.052 <29.052>.  Injunction.  The railroad commission
1005-20  may enforce this chapter, a valid rule or order made under this
1005-21  chapter, or a term or condition of a permit issued by the railroad
1005-22  commission under this chapter by injunction or other appropriate
1005-23  remedy.  The action may be brought in a court of competent
1005-24  jurisdiction in the county in which the offending activity has
1005-25  occurred, in which the defendant resides, or in Travis County.
1005-26        Sec. 119.053 <29.053>.  Procedure.  (a)  At the request of
1005-27  the railroad commission, the attorney general shall institute and
 1006-1  conduct a suit in the name of the state for injunctive relief or
 1006-2  other appropriate remedy or to recover a civil penalty as provided
 1006-3  by Section 119.051 <29.051> or 119.052 <29.052> of this code or for
 1006-4  both injunctive relief or other appropriate remedy and recovery of
 1006-5  a civil penalty.
 1006-6        (b)  A party to a suit may appeal from a final judgment as in
 1006-7  other civil cases.
 1006-8        SECTION 7.  REPEALER.  (a)  The following provisions of the
 1006-9  Water Code are repealed:
1006-10              (1)  Chapter 5, except Section 5.015;
1006-11              (2)  Chapter 11;
1006-12              (3)  Chapter 12, except Sections 12.081, 12.082,
1006-13  12.083, 12.113, and 12.141;
1006-14              (4)  Chapter 13, except Sections 13.015 and 13.016;
1006-15              (5)  Chapter 26, except Subchapter J;
1006-16              (6)  Chapter 27, except Subchapter C; and
1006-17              (7)  Chapter 28.
1006-18        (b)  The following provisions of the Health and Safety Code
1006-19  are repealed:
1006-20              (1)  Section 341.039;
1006-21              (2)  Chapter 361;
1006-22              (3)  Chapter 362;
1006-23              (4)  Chapter 363;
1006-24              (5)  Chapter 364;
1006-25              (6)  Chapter 365, except Section 365.005;
1006-26              (7)  Chapter 366;
1006-27              (8)  Chapter 367;
 1007-1              (9)  Chapter 368;
 1007-2              (10)  Chapter 369;
 1007-3              (11)  Chapter 370;
 1007-4              (12)  Chapter 371;
 1007-5              (13)  Chapter 372;
 1007-6              (14)  Chapter 382; and
 1007-7              (15)  Chapter 383.
 1007-8        (c)  Chapter 916, Acts of the 62nd Legislature, Regular
 1007-9  Session, 1971 (Article 4477-1a, Vernon's Texas Civil Statutes), is
1007-10  repealed.
1007-11        (d)  Chapter 376, Acts of the 68th Legislature, Regular
1007-12  Session, 1983 (Article 4477-7b, Vernon's Texas Civil Statutes), is
1007-13  repealed.
1007-14        (e)  Chapter 670, Acts of the 72nd Legislature, Regular
1007-15  Session, 1991 (Article 4477-7j, Vernon's Texas Civil Statutes), is
1007-16  repealed.
1007-17        (f)  Chapter 734, Acts of the 72nd Legislature, Regular
1007-18  Session, 1991 (Article 4477-7k, Vernon's Texas Civil Statutes), is
1007-19  repealed.
1007-20        SECTION 8.  LEGISLATIVE INTENT:  FUNDS MANAGEMENT.  This Act
1007-21  does not affect the application of Section 403.094 or 403.095,
1007-22  Government Code, to funds reenacted by or dedicated in this Act.
1007-23        SECTION 9.  EFFECTIVE DATE.  This Act takes effect September
1007-24  1, 1993.
1007-25        SECTION 10.  EMERGENCY.  The importance of this legislation
1007-26  and the crowded condition of the calendars in both houses create an
1007-27  emergency and an imperative public necessity that the
 1008-1  constitutional rule requiring bills to be read on three several
 1008-2  days in each house be suspended, and this rule is hereby suspended.