By: Earley H.B. No. 2796 73R5385 SMH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the collection of geological and geophysical 1-3 information and data by the Railroad Commission of Texas; providing 1-4 a penalty. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 91, Natural Resources Code, is amended by 1-7 adding Subchapter O to read as follows: 1-8 SUBCHAPTER O. GEOLOGICAL AND GEOPHYSICAL INFORMATION 1-9 Sec. 91.651. APPLICABILITY. (a) This subchapter does not 1-10 apply to the United States, this state, a political subdivision of 1-11 this state, or an institution of higher education as defined by 1-12 Section 61.003, Education Code. 1-13 (b) This subchapter does not apply to a study interpreting 1-14 geological or geophysical information or data. 1-15 Sec. 91.652. GEOLOGICAL AND GEOPHYSICAL INFORMATION REQUIRED 1-16 TO BE FILED; CRITERIA. (a) Not later than the 180th day after the 1-17 date of its preparation or receipt, as applicable, a person shall 1-18 file with the commission all geological or geophysical information 1-19 or data prepared by or for the person in connection with the 1-20 exploration or development of minerals, including: 1-21 (1) seismic records; 1-22 (2) electric logs other than electric logs filed with 1-23 the commission under Subchapter M of this chapter; 1-24 (3) mud logs; and 2-1 (4) cores. 2-2 (b) The commission by rule shall establish criteria for the 2-3 nature and format of the geological and geophysical information and 2-4 data required to be filed with the commission under this 2-5 subchapter. 2-6 Sec. 91.653. AVAILABILITY OF INFORMATION. (a) Geological 2-7 or geophysical information or data that is filed with the 2-8 commission under this subchapter is confidential for seven years 2-9 after the date on which it is filed. 2-10 (b) During the period of confidentiality, the commission 2-11 shall make the geological or geophysical information or data 2-12 available for inspection only to: 2-13 (1) a person authorized in writing by the person who 2-14 filed the geological or geophysical information or data with the 2-15 commission; and 2-16 (2) members of or employees of the commission in the 2-17 exercise of their powers or duties under this code. 2-18 Sec. 91.654. MANAGEMENT AND STORAGE OF INFORMATION AND DATA. 2-19 (a) The commission shall store geological or geophysical 2-20 information or data that is filed under this subchapter in a secure 2-21 place monitored by the commission. 2-22 (b) The commission may assimilate the information and data 2-23 into a computer data base. 2-24 (c) The commission may contract with any person for the 2-25 management and storage of geological or geophysical information or 2-26 data that is filed with the commission. 2-27 Sec. 91.655. ADMINISTRATIVE PENALTY. (a) A person who 3-1 violates this subchapter or a rule adopted or order issued under 3-2 this subchapter may be assessed an administrative penalty by the 3-3 commission. 3-4 (b) The penalty shall be set by the commission in an amount 3-5 not to exceed the fair market value of the geological or 3-6 geophysical information or data, as reasonably determined by the 3-7 commission. 3-8 (c) In determining the amount of the penalty, the commission 3-9 shall consider: 3-10 (1) the person's history of previous violations of 3-11 this subchapter; 3-12 (2) the seriousness of the violation; 3-13 (3) the importance of the information or data to the 3-14 development of the state's mineral resources; 3-15 (4) the fair market value of the information or data; 3-16 and 3-17 (5) the demonstrated good faith of the person charged 3-18 with the violation. 3-19 Sec. 91.656. PENALTY ASSESSMENT PROCEDURE. (a) The 3-20 administrative penalty may be assessed only after the person 3-21 charged with a violation of this subchapter or a rule adopted or 3-22 order issued under this subchapter has been given an opportunity 3-23 for a public hearing. 3-24 (b) If a public hearing has been held, the commission shall 3-25 make findings of fact and issue a written decision about the 3-26 occurrence of the violation and the amount of the penalty that is 3-27 warranted, incorporating, when appropriate, an order requiring that 4-1 the penalty be paid. 4-2 (c) If appropriate, the commission shall consolidate the 4-3 hearing with other proceedings. 4-4 (d) If the person charged with the violation fails to take 4-5 advantage of the opportunity for a public hearing, an 4-6 administrative penalty may be assessed by the commission after it 4-7 has determined that a violation occurred and the amount of the 4-8 penalty that is warranted. 4-9 (e) The commission shall then issue an order requiring that 4-10 the penalty be paid. 4-11 Sec. 91.657. PAYMENT OF PENALTY; REFUND. (a) The 4-12 commission shall send a copy of an order requiring a person to pay 4-13 an administrative penalty under this subchapter to the person or 4-14 the person's attorney of record not later than the 30th day after 4-15 the date the order is issued. 4-16 (b) Not later than the 30th day after the date on which the 4-17 decision or order is final as provided by Section 16(c), 4-18 Administrative Procedure and Texas Register Act (Article 6252-13a, 4-19 Vernon's Texas Civil Statutes), the person charged with the penalty 4-20 shall: 4-21 (1) pay the penalty in full; or 4-22 (2) if the person seeks judicial review of either the 4-23 amount of the penalty or the fact of the violation, or both: 4-24 (A) forward the amount to the commission for 4-25 placement in an escrow account; or 4-26 (B) in lieu of payment into escrow, post with 4-27 the commission a supersedeas bond in a form approved by the 5-1 commission for the amount of the penalty, the bond to be effective 5-2 until all judicial review of the order or decision is final. 5-3 (c) If through judicial review of the decision or order it 5-4 is determined that no violation occurred or that the amount of the 5-5 penalty should be reduced or not assessed, the commission shall, 5-6 not later than the 30th day after the date that determination is 5-7 made: 5-8 (1) remit the appropriate amount to the person, with 5-9 accrued interest, if the penalty has been paid to the commission; 5-10 or 5-11 (2) execute a release of the bond if a supersedeas 5-12 bond has been posted. 5-13 (d) Failure to forward the money to the commission within 5-14 the time provided by Subsection (b) of this section results in a 5-15 waiver of all legal rights to contest the violation or the amount 5-16 of the penalty. 5-17 (e) Judicial review of the order or decision of the 5-18 commission assessing the penalty is: 5-19 (1) under the substantial evidence rule; and 5-20 (2) instituted by filing a petition as provided by 5-21 Section 19, Administrative Procedure and Texas Register Act 5-22 (Article 6252-13a, Vernon's Texas Civil Statutes). 5-23 Sec. 91.658. RECOVERY OF PENALTY. (a) An administrative 5-24 penalty owed under Sections 91.655-91.657 of this subchapter may be 5-25 recovered in a civil action brought by the attorney general at the 5-26 request of the commission. 5-27 (b) An administrative penalty collected for a violation of 6-1 this subchapter or of a rule adopted or order issued under this 6-2 subchapter shall be deposited to the credit of a separate fund 6-3 established in the state treasury. Money in the fund may only be 6-4 used by the commission to pay the costs of managing or storing 6-5 geological or geophysical information or data. 6-6 SECTION 2. This Act applies only to geological or 6-7 geophysical information or data prepared or received by a person on 6-8 or after the effective date of this Act. Geological or geophysical 6-9 information or data prepared or received before the effective date 6-10 of this Act is governed by the law under which the information or 6-11 data was prepared or received, and that law is continued in effect 6-12 for that purpose. 6-13 SECTION 3. This Act takes effect September 1, 1993. 6-14 SECTION 4. The importance of this legislation and the 6-15 crowded condition of the calendars in both houses create an 6-16 emergency and an imperative public necessity that the 6-17 constitutional rule requiring bills to be read on three several 6-18 days in each house be suspended, and this rule is hereby suspended.