By:  Parker                                           S.B. No. 1040
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the Texas Commission on Environmental Quality and the
    1-2  maintenance of air quality in the state; providing penalties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subdivisions (2) and (3), Section 5.001, Water
    1-5  Code, are amended to read as follows:
    1-6              (2)  "Commission" means the Texas <Natural Resource
    1-7  Conservation> Commission on Environmental Quality.
    1-8              (3)  "Executive director" means the executive director
    1-9  of the Texas <Natural Resource Conservation> Commission on
   1-10  Environmental Quality.
   1-11        SECTION 2.  Section 5.014, Water Code, is amended to read as
   1-12  follows:
   1-13        Sec. 5.014.  SUNSET PROVISION.  The Texas <Natural Resource
   1-14  Conservation> Commission on Environmental Quality is subject to
   1-15  Chapter 325, Government Code (Texas Sunset Act).  Unless continued
   1-16  in existence as provided by that chapter, the commission is
   1-17  abolished and this chapter expires September 1, 2001.
   1-18        SECTION 3.  Section 5.051, Water Code, is amended to read as
   1-19  follows:
   1-20        Sec. 5.051.  COMMISSION.  The Texas <Natural Resource
   1-21  Conservation> Commission on Environmental Quality is created as an
   1-22  agency of the state.
   1-23        SECTION 4.  (a)  Section 5.222, Water Code, as added by
    2-1  Section 1.001, Chapter 795, Acts of the 69th Legislature, Regular
    2-2  Session, 1985, and as amended by Section 1.0171, Chapter 3, Acts of
    2-3  the 72nd Legislature, 1st Called Session, 1991, to be effective
    2-4  September 1, 1993, is repealed.
    2-5        (b)  Subchapter F, Chapter 5, Water Code, is amended by
    2-6  adding Section 5.222 to read as follows:
    2-7        Sec. 5.222.  DEPUTY DIRECTORS AND PERSONNEL.  The executive
    2-8  director may employ any deputy directors and personnel that the
    2-9  executive director determines appropriate.  The deputy directors
   2-10  and personnel of the commission are under the direction and
   2-11  supervision of the executive director, and their powers and duties
   2-12  are those required by the executive director.
   2-13        SECTION 5.  (a)  Subchapters G and H, Chapter 5, Water Code,
   2-14  are repealed.
   2-15        (b)  Chapter 5, Water Code, is amended by adding Subchapters
   2-16  G, H, and I to read as follows:
   2-17                SUBCHAPTER G.  OFFICE OF PUBLIC COUNSEL
   2-18        Sec. 5.271.  CREATION AND GENERAL RESPONSIBILITIES.  (a)  The
   2-19  office of public counsel is established as an independent division
   2-20  of the commission to represent the interests of the public in
   2-21  protecting, maintaining, and enhancing a safe, healthful,
   2-22  biologically diverse, and productive environment and preserving the
   2-23  natural heritage of this state.
   2-24        (b)  The office of public counsel shall assess the
   2-25  environmental impact of rules, orders, permits, and other actions
    3-1  adopted, issued, or taken by the commission and shall be an
    3-2  advocate in its own name of positions most beneficial to the
    3-3  environment as determined by the public counsel.
    3-4        Sec. 5.272.  CHIEF EXECUTIVE.  (a)  The governor shall
    3-5  appoint the public counsel with the advice and consent of the
    3-6  senate for a two-year term expiring January 1 of every odd-numbered
    3-7  year.  The public counsel is the chief executive of the office of
    3-8  public counsel and may be removed in accordance with Article XV,
    3-9  Section 9, of the Texas Constitution.
   3-10        (b)  The public counsel must be a resident of this state who
   3-11  is licensed to practice law in this state, has demonstrated a
   3-12  strong commitment to safeguard the environment, and possesses the
   3-13  knowledge and experience to practice effectively in proceedings
   3-14  before the commission, board, and office of hearings.
   3-15        Sec. 5.273.  ADMINISTRATION.  (a)  The public counsel shall
   3-16  administer and supervise the operation of the office of public
   3-17  counsel independently of the commission.  The public counsel shall
   3-18  prepare and approve all budget recommendations on behalf of the
   3-19  office of public counsel that are transmitted to the governor and
   3-20  the legislature.
   3-21        (b)  The public counsel is the custodian of public records of
   3-22  the office of public counsel.
   3-23        Sec. 5.274.  EMPLOYEES AND EXPERTS.  (a)  The public counsel
   3-24  may employ or contract with any attorneys, scientists, economists,
   3-25  engineers, consultants, or other employees or experts the public
    4-1  counsel considers necessary to carry out this subchapter.
    4-2        (b)  A person may not, while serving as an employee of the
    4-3  office of public counsel and for a period of two years after
    4-4  terminating employment, have a direct or indirect financial
    4-5  interest in any holder of or applicant for a permit issued by the
    4-6  commission or provide legal services directly or indirectly to or
    4-7  be employed in any capacity by such an entity, its parent company,
    4-8  or its subsidiaries.
    4-9        Sec. 5.275.  AUTHORITY.  (a)  The office of public counsel
   4-10  may:
   4-11              (1)  appear or intervene as a matter of right as a
   4-12  party or otherwise on behalf of the public as a class in all
   4-13  proceedings before the commission, board, and office of hearings;
   4-14              (2)  intervene as a matter of right or otherwise appear
   4-15  in any judicial proceedings involving or arising out of any
   4-16  proceeding in which the office of public counsel is authorized to
   4-17  appear;
   4-18              (3)  have the same access as any party other than the
   4-19  commission to all records of the commission;
   4-20              (4)  obtain discovery of any nonprivileged matter that
   4-21  is relevant to any proceeding before the commission;
   4-22              (5)  represent the public with respect to complaints
   4-23  concerning matters before the commission; and
   4-24              (6)  recommend legislation to the legislature that in
   4-25  the public counsel's judgment would positively affect the interests
    5-1  of the public in the environmental quality of the state.
    5-2        (b)  Commission personnel shall assist the public counsel in
    5-3  investigations and lawsuits and by conducting laboratory tests as
    5-4  requested by the public counsel.
    5-5        Sec. 5.276.  OTHER REPRESENTATION.  (a)  This subchapter does
    5-6  not limit the authority of the commission to represent the public
    5-7  interest.
    5-8        (b)  The appearance of the public counsel in any proceeding
    5-9  does not preclude the appearance of other parties on behalf of
   5-10  citizens of the state.
   5-11        (c)  The public counsel may not be compelled to be aligned
   5-12  with any other party to a proceeding under the Administrative
   5-13  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
   5-14  Civil Statutes).
   5-15             (Sections 5.277-5.310 reserved for expansion
   5-16                   SUBCHAPTER H.  OFFICE OF HEARINGS
   5-17        Sec. 5.311.  CREATION AND RESPONSIBILITIES.  (a)  In this
   5-18  chapter, "office of hearings" means the State Office of
   5-19  Administrative Hearings.  The office of hearings will conduct
   5-20  hearings according to the procedures set out in this subchapter.
   5-21        (b)  The office of hearings may call and hold hearings,
   5-22  receive evidence at hearings, administer oaths, issue subpoenas to
   5-23  compel the attendance of witnesses and the production of papers and
   5-24  documents and other things, and make findings of fact and decisions
   5-25  with respect to its jurisdiction under law and under rules, orders,
    6-1  permits, licenses, certificates, and other actions adopted, issued,
    6-2  or taken by the commission.  The office of hearings may receive
    6-3  submissions of issues identified for appeal in contested case
    6-4  hearings but is not limited to those issues.
    6-5        Sec. 5.312.  CHIEF EXECUTIVE.  (a)  The governor shall
    6-6  appoint the chief administrative law judge with the advice and
    6-7  consent of the senate for a two-year term expiring January 1 of
    6-8  every odd-numbered year.  The chief administrative law judge is the
    6-9  chief executive of the office of hearings and may be removed in
   6-10  accordance with Article XV, Section 9, of the Texas Constitution.
   6-11        (b)  The chief administrative law judge must be a resident of
   6-12  this state who has been licensed to practice law in this state for
   6-13  at least eight years at the time of the appointment and who has
   6-14  demonstrated experience, either as an attorney or as a member of
   6-15  the judiciary, or both, in the practice of administrative law or in
   6-16  the trial of contested matters.
   6-17        Sec. 5.313.  PERSONNEL.  The chief administrative law judge
   6-18  may employ assistant administrative law judges and other personnel
   6-19  as the legislature authorizes.  Assistant administrative law judges
   6-20  employed in the office of hearings must be attorneys licensed to
   6-21  practice law in this state.  An employee of the office of hearings
   6-22  may not be employed by or perform the duties of an employee of
   6-23  another division of the commission.
   6-24        Sec. 5.314.  CHIEF CLERK.  The chief administrative law judge
   6-25  shall appoint a chief clerk, who shall issue notice of hearings
    7-1  before the office of hearings and serve as custodian of records of
    7-2  the office of hearings.
    7-3        Sec. 5.315.  ADMINISTRATION.  The chief administrative law
    7-4  judge shall administer and supervise the operation of the office of
    7-5  hearings independently of the commission.  The chief administrative
    7-6  law judge shall prepare and approve all budget recommendations on
    7-7  behalf of the office of hearings that are transmitted to the
    7-8  governor and the legislature.
    7-9        Sec. 5.316.  DELEGATION OF RESPONSIBILITY.  The executive
   7-10  director shall delegate to the office of hearings the
   7-11  responsibility to hear all contested cases before the commission
   7-12  and to hold hearings and receive any public comment that is
   7-13  required by law and may delegate the responsibility to hear any
   7-14  other matter before the commission.
   7-15        Sec. 5.317.  ADMINISTRATIVE PROCEDURE.  (a)  The office of
   7-16  hearings shall conduct all administrative hearings in contested
   7-17  cases under the Administrative Procedure and Texas Register Act
   7-18  (Article 6252-13a, Vernon's Texas Civil Statutes), except as
   7-19  provided by this section or as otherwise specifically required by
   7-20  law, including Sections 382.0561-382.0563, Health and Safety Code.
   7-21        (b)  In conducting a hearing under this subchapter, an
   7-22  administrative law judge in the office of hearings shall consider
   7-23  all applicable commission rules or policies.  The commission shall
   7-24  publish and make available all commission rules and policies.
   7-25        (c)  Unless required for the disposition of ex parte matters
    8-1  authorized by law:
    8-2              (1)  an administrative law judge of the office of
    8-3  hearings may not communicate directly or indirectly with any
    8-4  commission employee, member of the board, party, or any other
    8-5  person in connection with any issue of fact or law pertaining to a
    8-6  contested case in which the commission, party, or person is
    8-7  involved or has an interest; and
    8-8              (2)  a commission employee, member of the board, party,
    8-9  or any other person may not attempt directly or indirectly to
   8-10  influence the findings of fact or the application of law or rules
   8-11  in a contested case by an administrative law judge of the office of
   8-12  hearings except by proper evidence, pleadings, and legal argument
   8-13  with notice and opportunity for all parties to participate.
   8-14        (d)  The prohibitions of Subsection (c) of this section do
   8-15  not apply to communications between employees of the office of
   8-16  hearings in the proper performance of their duties.
   8-17        (e)  If the executive director, a commission employee, or an
   8-18  administrative law judge receives a communication prohibited by
   8-19  Subsection (c) of this section, the executive director, a
   8-20  commission employee, or administrative law judge shall terminate
   8-21  the improper communication and shall report the communication in
   8-22  the record of the contested case.
   8-23        (f)  After hearing evidence and receiving legal arguments, an
   8-24  administrative law judge of the office of hearings shall make
   8-25  findings of fact, conclusions of law, and any ultimate findings
    9-1  required by statute, all of which shall be separately stated.  The
    9-2  administrative law judge shall make a proposal for decision and
    9-3  shall serve the proposal for decision on all parties, including the
    9-4  executive director.
    9-5        (g)  If a contested case involves an ultimate finding of
    9-6  compliance with or satisfaction of a statutory standard the
    9-7  determination of which is committed to the discretion or judgment
    9-8  of the executive director by law, then on joint motion of all
    9-9  parties or on the administrative law judge's own motion, an
   9-10  administrative law judge of the office of hearings may certify
   9-11  those policy issues to the executive director.  A certification
   9-12  request shall contain a statement of the policy issue to be
   9-13  determined and a statement of all relevant facts sufficient to show
   9-14  fully the nature of the controversy.  The executive director may
   9-15  receive written or oral statements from parties to the hearing or
   9-16  the administrative law judge on the policy issue certified.  The
   9-17  executive director shall answer a policy issue not later than the
   9-18  60th day after the date on which it is certified unless the
   9-19  executive director in his discretion declines to answer.  If the
   9-20  executive director fails to answer a policy issue within 60 days of
   9-21  certification, the executive director shall be considered to have
   9-22  declined to answer.  The administrative law judge shall proceed
   9-23  with the contested case and make a proposal for decision as
   9-24  required by Subsection (f) of this section.
   9-25        (h)  The executive director may except to:
   10-1              (1)  an underlying finding of fact that serves as the
   10-2  basis for a decision in a contested case; or
   10-3              (2)  a conclusion of law in a contested case.
   10-4        (i)  If a decision in a contested case involves an ultimate
   10-5  finding of compliance with or satisfaction of a statutory standard
   10-6  the determination of which is committed to the discretion or
   10-7  judgment of the executive director by law, the executive director
   10-8  may in the exercise of that discretion or judgment reject a
   10-9  proposal for decision as to the ultimate finding for reasons of
  10-10  policy only.
  10-11        (j)  The executive director shall issue written rulings,
  10-12  orders, or decisions in all contested cases and shall fully explain
  10-13  in the rulings, orders, or decisions the reasoning and grounds for
  10-14  rejecting a proposal for decision on an ultimate finding
  10-15  statutorily committed to its discretion or judgment.
  10-16             SUBCHAPTER I.  LOCAL GOVERNMENT PARTICIPATION
  10-17        Sec. 5.401.  LOCAL GOVERNMENT PARTICIPATION.  (a)  A local
  10-18  government may make recommendations to the commission concerning a
  10-19  rule, determination, variance, or order or may request the
  10-20  commission to assess administrative penalties or initiate
  10-21  enforcement action against any person in violation of any statute
  10-22  or rule administered by the commission that affects an area within
  10-23  the local government's territorial jurisdiction.  The commission
  10-24  shall give maximum consideration to a local government's
  10-25  recommendations or requests.  The commission shall provide the
   11-1  local government the opportunity to present its case through its
   11-2  local counsel.
   11-3        (b)  In addition or as an alternative to any enforcement
   11-4  action otherwise authorized by law, any local government of the
   11-5  state affected by any activity, facility, source, or condition
   11-6  regulated by or under the jurisdiction of the commission may bring
   11-7  a civil action for injunctive relief, civil penalties, or both
   11-8  against any person responsible for the activity or condition or
   11-9  against an owner or operator of the facility or source who is in
  11-10  violation of a rule, regulation, permit, permit condition, or order
  11-11  of or law administered by the commission.
  11-12        (c)  An action brought under Subsection (b) of this section
  11-13  may not be commenced if the commission has commenced and is
  11-14  diligently prosecuting a civil or criminal action to require
  11-15  compliance with a standard, limitation, or order, but in any such
  11-16  action any local government may intervene as a matter of right.
  11-17        (d)  It is not a defense to an action brought under
  11-18  Subsection (b) of this section that the local government has not
  11-19  initiated or exhausted administrative remedies under Subsection (a)
  11-20  of this section.
  11-21        (e)  Any action brought under Subsection (b) of this section
  11-22  may be brought in the county in which the alleged violation
  11-23  occurred or in Travis County.
  11-24        (f)  In any action brought by a local government under
  11-25  Subsection (b) of this section, the commission is a necessary and
   12-1  indispensable party.  Civil penalties recovered in an action
   12-2  brought by a local government under this section shall be equally
   12-3  divided between the state and the local government that first
   12-4  brought the action.
   12-5        (g)  The court shall grant, without bond or other undertaking
   12-6  by the local government, any prohibitory or mandatory injunction or
   12-7  restraining order the facts may warrant.
   12-8        (h)  Any final order issued under this section may award
   12-9  costs of litigation, reasonable attorney's fees, and other costs,
  12-10  including expert witness fees, to any local government that
  12-11  prevails or substantially prevails if the order includes a
  12-12  determination that the award is appropriate.
  12-13        (i)  This section is cumulative of any other remedies
  12-14  provided by law to a local government.
  12-15        SECTION 6.  Subsection (g), Section 382.0518, Health and
  12-16  Safety Code, is amended to read as follows:
  12-17        (g)  Subsections (a)-(d) do not apply to a person who has
  12-18  executed a contract or has begun construction for an addition,
  12-19  alteration, or modification to a new or an existing facility on or
  12-20  before August 30, 1971, and who registered with the board as
  12-21  required by <has complied with the requirements of> Section
  12-22  382.060, as it existed on November 30, 1991, unless the facility is
  12-23  in a nonattainment area as defined in Title I of the federal Clean
  12-24  Air Act (42 U.S.C. Section 7401 et seq.).  To qualify for any
  12-25  exemption under this subsection, a contract may not have a
   13-1  beginning construction date later than February 29, 1972.
   13-2        SECTION 7.  Subsection (a), Section 382.091, Health and
   13-3  Safety Code, is amended to read as follows:
   13-4        (a)  A person commits an offense if the person:
   13-5              (1)  intentionally or knowingly, with respect to the
   13-6  person's conduct, violates:
   13-7                    (A)  Section 382.0518(a);
   13-8                    (B)  Section 382.054;
   13-9                    (C)  Section 382.056(a);
  13-10                    (D)  Section 382.058(a); or
  13-11                    (E)  an order, permit, rule, or exemption issued
  13-12  under this chapter;
  13-13              (2)  intentionally or knowingly fails to pay a fee
  13-14  required by this chapter or by a rule adopted or order issued under
  13-15  this chapter;
  13-16              (3)  intentionally or knowingly makes or causes to be
  13-17  made any false material statement, representation, or certification
  13-18  in, or omits material information from, or knowingly alters,
  13-19  conceals, or does not file or maintain any notice, application,
  13-20  record, report, plan, or other document required to be filed or
  13-21  maintained by this chapter or by a rule adopted or permit or order
  13-22  issued under this chapter;
  13-23              (4)  intentionally or knowingly fails to notify or
  13-24  report to the board as required by this chapter or by a rule
  13-25  adopted or permit or order issued under this chapter;
   14-1              (5)  intentionally or knowingly tampers with, modifies,
   14-2  disables, or fails to use a required monitoring device; tampers
   14-3  with, modifies, or disables a monitoring device; or falsifies,
   14-4  fabricates, or omits data from a monitoring device, unless done in
   14-5  strict compliance with this chapter or a permit, rule, variance, or
   14-6  other order issued by the board;
   14-7              (6)  recklessly, with respect to the person's conduct,
   14-8  emits an air contaminant that places any other person in <imminent>
   14-9  danger of death or serious bodily injury unless the emission is
  14-10  made in strict compliance with this chapter or a permit, rule,
  14-11  variance, or other order issued by the board; <or>
  14-12              (7)  intentionally or knowingly, with respect to the
  14-13  person's conduct, emits an air contaminant that places any other
  14-14  person in danger of death or serious bodily injury unless the
  14-15  emission is made in strict compliance with this chapter or a
  14-16  permit, rule, variance, or other order issued by the board;
  14-17              (8)  intentionally or knowingly, with respect to the
  14-18  person's conduct, emits an air contaminant with the knowledge that
  14-19  the person is placing any other person in <imminent> danger of
  14-20  death or serious bodily injury unless the emission is made in
  14-21  strict compliance with this chapter or a permit, rule, variance, or
  14-22  other order issued by the board; or
  14-23              (9)  intentionally, knowingly, or recklessly causes or
  14-24  permits the emission of an air contaminant in a concentration and
  14-25  for a duration that causes air pollution unless the emission is
   15-1  made in strict compliance with a variance or other order issued by
   15-2  the board.
   15-3        SECTION 8.  (a)  This Act takes effect September 1, 1993.
   15-4        (b)  On September 1, 1993:
   15-5              (1)  the name of the Texas Natural Resource
   15-6  Conservation Commission is changed to the Texas Commission on
   15-7  Environmental Quality and all powers, duties, rights, and
   15-8  obligations of the Texas Natural Resource Conservation Commission
   15-9  are the powers, duties, rights, and obligations of the Texas
  15-10  Commission on Environmental Quality;
  15-11              (2)  a member of the Texas Natural Resource
  15-12  Conservation Commission is a member of the Texas Commission on
  15-13  Environmental Quality;
  15-14              (3)  all personnel, equipment, data, documents,
  15-15  facilities, and other items of the Texas Natural Resource
  15-16  Conservation Commission are transferred to the agency under its new
  15-17  name; and
  15-18              (4)  any appropriation to the Texas Natural Resource
  15-19  Conservation Commission is automatically an appropriation to the
  15-20  Texas Commission on Environmental Quality.
  15-21        SECTION 9.  The importance of this legislation and the
  15-22  crowded condition of the calendars in both houses create an
  15-23  emergency and an imperative public necessity that the
  15-24  constitutional rule requiring bills to be read on three several
  15-25  days in each house be suspended, and this rule is hereby suspended.