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.