73R7487 MI-F
          By Saunders                                           H.B. No. 2436
          Substitute the following for H.B. No. 2436:
          By Jackson                                        C.S.H.B. No. 2436
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to protecting public drinking water supplies; providing
    1-3  criminal, civil, and administrative penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 341.040, Health and Safety Code, is
    1-6  amended to read as follows:
    1-7        Sec. 341.040.  Definitions.  In this subchapter:
    1-8              (1)  "Board" means the commission <Texas Natural
    1-9  Resource Conservation Commission>.
   1-10              (2)  "Commission" means the Texas Natural Resource
   1-11  Conservation Commission.
   1-12              (3)  "Department" means the commission <Texas Natural
   1-13  Resource Conservation Commission>.
   1-14              (4)  "Executive director" means the executive director
   1-15  of the commission.
   1-16        SECTION 2.  Subchapter C, Chapter 341, Health and Safety
   1-17  Code, is amended by adding Sections 341.041-341.047 to read as
   1-18  follows:
   1-19        Sec. 341.041.  FEES.  (a)  The commission by rule may charge
   1-20  a fee to a person who owns, operates, or maintains a public
   1-21  drinking water supply system to recover the costs of administering
   1-22  this subchapter and of providing services to public drinking water
   1-23  supply systems.  The commission may establish a schedule of fees.
    2-1  The amount of the fees may not exceed the reasonable costs of
    2-2  administering this subchapter and providing the services.
    2-3        (b)  The commission by rule may assess penalties and interest
    2-4  for late payment of fees owed under this section by persons who
    2-5  own, operate, or maintain public drinking water supply systems.
    2-6  Penalties and interest established under this section may not
    2-7  exceed the rates established for delinquent taxes under Sections
    2-8  111.060 and 111.061, Tax Code.
    2-9        Sec. 341.042.  APPLICABILITY OF OTHER PENALTY PROVISIONS.
   2-10  Subchapter F does not apply to this subchapter.
   2-11        Sec. 341.043.  CRIMINAL PENALTY.  (a)  A person commits an
   2-12  offense if the person:
   2-13              (1)  violates Section 341.031;
   2-14              (2)  violates Section 341.032(a) or (b);
   2-15              (3)  violates Section 341.033(a), (b), (c), (d), (e),
   2-16  or (f);
   2-17              (4)  constructs a drinking water supply system without
   2-18  submitting completed plans and specifications as required by
   2-19  Section 341.035(a);
   2-20              (5)  establishes a drinking water supply system without
   2-21  the commission's approval as required by Section 341.035(a);
   2-22              (6)  violates Section 341.035(b) or (c);
   2-23              (7)  fails to remove a sign as required by Section
   2-24  341.035(e); or
   2-25              (8)  violates Section 341.036.
    3-1        (b)  Each day of a continuing violation is a separate
    3-2  offense.
    3-3        (c)  An offense under Subsection (a) is a Class C misdemeanor
    3-4  punishable by a fine of not less than $100.
    3-5        (d)  If it is shown on a trial of the defendant that the
    3-6  defendant has been convicted of an offense under Subsection (a)
    3-7  within one year before the date on which the offense being tried
    3-8  occurred, the subsequent offense under Subsection (a) is a Class B
    3-9  misdemeanor.
   3-10        Sec. 341.044.  CIVIL ENFORCEMENT.  (a)  A person may not
   3-11  cause, suffer, allow, or permit a violation of this subchapter or a
   3-12  rule or order adopted or issued under this subchapter.
   3-13        (b)  A person who causes, suffers, allows, or permits a
   3-14  violation of this subchapter or a rule or order adopted or issued
   3-15  under this subchapter shall be assessed a civil penalty of not less
   3-16  than $50 or more than $500 for each violation.  Each day of a
   3-17  continuing violation is a separate violation.
   3-18        (c)  If it is shown on a trial of the defendant that the
   3-19  defendant has previously been assessed a civil penalty under this
   3-20  section within one year before the date on which the violation
   3-21  being tried occurred, the defendant shall be assessed a civil
   3-22  penalty of not less than $50 or more than $1,000 for each
   3-23  subsequent violation of this subchapter or a rule or order adopted
   3-24  or issued under this subchapter.  Each day of a continuing
   3-25  violation is a separate violation.
    4-1        (d)  If it appears that a person has violated, is violating,
    4-2  or is threatening to violate this subchapter or a rule or order
    4-3  adopted or issued under this subchapter, the commission, a county,
    4-4  or a municipality may institute a civil suit in a district court
    4-5  for:
    4-6              (1)  injunctive relief to restrain the person from
    4-7  continuing the violation or threat of violation;
    4-8              (2)  the assessment and recovery of a civil penalty; or
    4-9              (3)  both injunctive relief and a civil penalty.
   4-10        (e)  The commission is a necessary and indispensable party in
   4-11  a suit brought by a county or municipality under this section.
   4-12        (f)  On the commission's request, the attorney general shall
   4-13  institute a suit in the name of the state for injunctive relief, to
   4-14  recover a civil penalty, or for both injunctive relief and civil
   4-15  penalty.
   4-16        (g)  A suit under this section may be brought in Travis
   4-17  County, in the county in which the defendant resides, or in the
   4-18  county in which the violation or threat of violation occurs.
   4-19        (h)  In a suit under this section to enjoin a violation or
   4-20  threat of violation of this subchapter or a rule or order adopted
   4-21  or issued under this subchapter, the court shall grant the state,
   4-22  county, or municipality, without bond or other undertaking, any
   4-23  injunction that the facts may warrant, including a temporary
   4-24  restraining order, temporary injunction after notice and hearing,
   4-25  or permanent injunction.
    5-1        (i)  A civil penalty recovered in a suit brought under this
    5-2  section by a county or municipality shall be equally divided
    5-3  between:
    5-4              (1)  the state; and
    5-5              (2)  the county or municipality that first brought the
    5-6  suit.
    5-7        Sec. 341.045.  ADMINISTRATIVE PENALTY.  (a)  If a person
    5-8  causes, suffers, allows, or permits a violation of this subchapter
    5-9  or a rule or order adopted or issued under this subchapter, the
   5-10  commission may assess a penalty against that person as provided by
   5-11  this section.  The penalty may not be less than $50 or more than
   5-12  $500 for each violation.  Each day of a continuing violation is a
   5-13  separate violation.
   5-14        (b)  In determining the amount of a penalty, the commission
   5-15  shall consider:
   5-16              (1)  the nature of the circumstances, extent, duration,
   5-17  and gravity of the prohibited acts or omissions;
   5-18              (2)  with respect to the alleged violator:
   5-19                    (A)  the history and extent of previous
   5-20  violations;
   5-21                    (B)  the degree of culpability, including whether
   5-22  the violation was attributable to mechanical or electrical failures
   5-23  and whether the violation could have been reasonably anticipated
   5-24  and avoided;
   5-25                    (C)  the demonstrated good faith, including
    6-1  actions taken by the person to correct the cause of the violation;
    6-2                    (D)  any economic benefit gained through the
    6-3  violation; and
    6-4                    (E)  the amount necessary to deter future
    6-5  violations; and
    6-6              (3)  any other matters that justice requires.
    6-7        (c)  If, after examination of a possible violation and the
    6-8  facts surrounding that possible violation, the executive director
    6-9  concludes that a violation has occurred, the executive director may
   6-10  issue a preliminary report stating the facts on which that
   6-11  conclusion is based, recommending that a penalty under this section
   6-12  be imposed on the person, and recommending the amount of that
   6-13  proposed penalty.  The executive director shall determine the
   6-14  recommended amount of the proposed penalty according to the factors
   6-15  stated in Subsection (b) and shall consider each factor for the
   6-16  benefit of the commission.
   6-17        (d)  Not later than the 10th day after the date on which the
   6-18  preliminary report is issued, the executive director shall give
   6-19  written notice of the report to the person charged with the
   6-20  violation.  The notice shall include a brief summary of the
   6-21  charges, a statement of the amount of the penalty recommended, and
   6-22  a statement of the right of the person charged to a hearing on the
   6-23  occurrence of the violation, the amount of the penalty, or both.
   6-24        (e)  Not later than the 20th day after the date on which
   6-25  notice is received, the person charged may give the commission
    7-1  written consent to the executive director's report, including the
    7-2  recommended penalty, or may make a written request for a hearing.
    7-3        (f)  If the person charged with the violation consents to the
    7-4  penalty recommended by the executive director or fails to timely
    7-5  respond to the notice, the commission by order shall assess that
    7-6  penalty or order a hearing to be held on the findings and
    7-7  recommendations in the executive director's report.  If the
    7-8  commission assesses a penalty, the commission shall give written
    7-9  notice to the person charged of its decision.
   7-10        (g)  If the person charged requests or the commission orders
   7-11  a hearing, the commission shall call a hearing and give notice of
   7-12  the hearing.  As a result of the hearing, the commission by order
   7-13  may find that a violation has occurred and may assess a civil
   7-14  penalty, may find that a violation has occurred but that no penalty
   7-15  should be assessed, or may find that no violation has occurred.
   7-16  All proceedings under this subsection are subject to the
   7-17  Administrative Procedure and Texas Register Act (Article 6252-13a,
   7-18  Vernon's Texas Civil Statutes).  In making any penalty decision,
   7-19  the commission shall consider each of the factors stated in
   7-20  Subsection (b).
   7-21        (h)  The commission shall give notice of its decision to the
   7-22  person charged, and if the commission finds that a violation has
   7-23  occurred and has assessed a penalty, the commission shall give
   7-24  written notice to the person charged of its findings, of the amount
   7-25  of the penalty, and of the person's right to judicial review of the
    8-1  commission's order.  If the commission is required to give notice
    8-2  of a penalty under this subsection or Subsection (f), the
    8-3  commission shall file notice of its decision with the Texas
    8-4  Register not later than the 10th day after the date on which the
    8-5  decision is adopted.
    8-6        (i)  Not later than the 30th day after the date on which the
    8-7  commission's order is final under Section 16(c), Administrative
    8-8  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
    8-9  Civil Statutes), the person charged with the penalty shall:
   8-10              (1)  pay the penalty in full; or
   8-11              (2)  if the person seeks judicial review of the fact of
   8-12  the violation, the amount of the penalty, or both:
   8-13                    (A)  forward the amount of the penalty to the
   8-14  commission for placement in an escrow account; or
   8-15                    (B)  post with the commission a supersedeas bond
   8-16  in a form approved by the commission for the amount of the penalty
   8-17  to be effective until all judicial review of the order or decision
   8-18  is final.
   8-19        (j)  If the person charged fails to forward the money for
   8-20  escrow or post the bond as required by Subsection (i), the
   8-21  commission or the executive director may refer the matter to the
   8-22  attorney general for enforcement.
   8-23        Sec. 341.046.  PENALTIES CUMULATIVE.  All penalties accruing
   8-24  under this subchapter are cumulative of all other remedies, and a
   8-25  suit for recovery of any penalty does not bar or affect the
    9-1  recovery of any other penalty or bar any criminal prosecution
    9-2  against a person or an officer, director, agent, or employee of
    9-3  that person.
    9-4        Sec. 341.047.  RULES.  The commission shall adopt and enforce
    9-5  rules necessary to carry out its powers and duties under this
    9-6  subchapter.
    9-7        SECTION 3.  Sections 341.042-341.046, Health and Safety Code,
    9-8  as added by this Act, apply to an offense committed or a violation
    9-9  that occurred on or after the effective date of this Act.  An
   9-10  offense committed or a violation that occurred before that date is
   9-11  governed by the law in effect at the time the offense was committed
   9-12  or the violation occurred, and the former law is continued in
   9-13  effect for that purpose.  An offense is committed or a violation
   9-14  occurs before the effective date of this Act if any element of the
   9-15  offense or violation is committed or occurs before the effective
   9-16  date of this Act.
   9-17        SECTION 4.  This Act takes effect September 1, 1993.
   9-18        SECTION 5.  The importance of this legislation and the
   9-19  crowded condition of the calendars in both houses create an
   9-20  emergency and an imperative public necessity that the
   9-21  constitutional rule requiring bills to be read on three several
   9-22  days in each house be suspended, and this rule is hereby suspended.