1-1  By:  Parker                                           S.B. No. 1040
    1-2        (In the Senate - Filed March 12, 1993; March 15, 1993, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  May 4, 1993, reported favorably by the following vote:  Yeas 6,
    1-5  Nays 0; May 4, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Sims               x                               
    1-9        Truan              x                               
   1-10        Armbrister         x                               
   1-11        Barrientos                                    x    
   1-12        Bivins                                        x    
   1-13        Brown              x                               
   1-14        Carriker                                      x    
   1-15        Lucio              x                               
   1-16        Montford                                      x    
   1-17        Ratliff                                       x    
   1-18        Shelley            x                               
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the Texas Commission on Environmental Quality and the
   1-22  maintenance of air quality in the state; providing penalties.
   1-23        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-24        SECTION 1.  Subdivisions (2) and (3), Section 5.001, Water
   1-25  Code, are amended to read as follows:
   1-26              (2)  "Commission" means the Texas <Natural Resource
   1-27  Conservation> Commission on Environmental Quality.
   1-28              (3)  "Executive director" means the executive director
   1-29  of the Texas <Natural Resource Conservation> Commission on
   1-30  Environmental Quality.
   1-31        SECTION 2.  Section 5.014, Water Code, is amended to read as
   1-32  follows:
   1-33        Sec. 5.014.  SUNSET PROVISION.  The Texas <Natural Resource
   1-34  Conservation> Commission on Environmental Quality is subject to
   1-35  Chapter 325, Government Code (Texas Sunset Act).  Unless continued
   1-36  in existence as provided by that chapter, the commission is
   1-37  abolished and this chapter expires September 1, 2001.
   1-38        SECTION 3.  Section 5.051, Water Code, is amended to read as
   1-39  follows:
   1-40        Sec. 5.051.  COMMISSION.  The Texas <Natural Resource
   1-41  Conservation> Commission on Environmental Quality is created as an
   1-42  agency of the state.
   1-43        SECTION 4.  (a)  Section 5.222, Water Code, as added by
   1-44  Section 1.001, Chapter 795, Acts of the 69th Legislature, Regular
   1-45  Session, 1985, and as amended by Section 1.0171, Chapter 3, Acts of
   1-46  the 72nd Legislature, 1st Called Session, 1991, to be effective
   1-47  September 1, 1993, is repealed.
   1-48        (b)  Subchapter F, Chapter 5, Water Code, is amended by
   1-49  adding Section 5.222 to read as follows:
   1-50        Sec. 5.222.  DEPUTY DIRECTORS AND PERSONNEL.  The executive
   1-51  director may employ any deputy directors and personnel that the
   1-52  executive director determines appropriate.  The deputy directors
   1-53  and personnel of the commission are under the direction and
   1-54  supervision of the executive director, and their powers and duties
   1-55  are those required by the executive director.
   1-56        SECTION 5.  (a)  Subchapters G and H, Chapter 5, Water Code,
   1-57  are repealed.
   1-58        (b)  Chapter 5, Water Code, is amended by adding Subchapters
   1-59  G, H, and I to read as follows:
   1-60                SUBCHAPTER G.  OFFICE OF PUBLIC COUNSEL
   1-61        Sec. 5.271.  CREATION AND GENERAL RESPONSIBILITIES.  (a)  The
   1-62  office of public counsel is established as an independent division
   1-63  of the commission to represent the interests of the public in
   1-64  protecting, maintaining, and enhancing a safe, healthful,
   1-65  biologically diverse, and productive environment and preserving the
   1-66  natural heritage of this state.
   1-67        (b)  The office of public counsel shall assess the
   1-68  environmental impact of rules, orders, permits, and other actions
    2-1  adopted, issued, or taken by the commission and shall be an
    2-2  advocate in its own name of positions most beneficial to the
    2-3  environment as determined by the public counsel.
    2-4        Sec. 5.272.  CHIEF EXECUTIVE.  (a)  The governor shall
    2-5  appoint the public counsel with the advice and consent of the
    2-6  senate for a two-year term expiring January 1 of every odd-numbered
    2-7  year.  The public counsel is the chief executive of the office of
    2-8  public counsel and may be removed in accordance with Article XV,
    2-9  Section 9, of the Texas Constitution.
   2-10        (b)  The public counsel must be a resident of this state who
   2-11  is licensed to practice law in this state, has demonstrated a
   2-12  strong commitment to safeguard the environment, and possesses the
   2-13  knowledge and experience to practice effectively in proceedings
   2-14  before the commission, board, and office of hearings.
   2-15        Sec. 5.273.  ADMINISTRATION.  (a)  The public counsel shall
   2-16  administer and supervise the operation of the office of public
   2-17  counsel independently of the commission.  The public counsel shall
   2-18  prepare and approve all budget recommendations on behalf of the
   2-19  office of public counsel that are transmitted to the governor and
   2-20  the legislature.
   2-21        (b)  The public counsel is the custodian of public records of
   2-22  the office of public counsel.
   2-23        Sec. 5.274.  EMPLOYEES AND EXPERTS.  (a)  The public counsel
   2-24  may employ or contract with any attorneys, scientists, economists,
   2-25  engineers, consultants, or other employees or experts the public
   2-26  counsel considers necessary to carry out this subchapter.
   2-27        (b)  A person may not, while serving as an employee of the
   2-28  office of public counsel and for a period of two years after
   2-29  terminating employment, have a direct or indirect financial
   2-30  interest in any holder of or applicant for a permit issued by the
   2-31  commission or provide legal services directly or indirectly to or
   2-32  be employed in any capacity by such an entity, its parent company,
   2-33  or its subsidiaries.
   2-34        Sec. 5.275.  AUTHORITY.  (a)  The office of public counsel
   2-35  may:
   2-36              (1)  appear or intervene as a matter of right as a
   2-37  party or otherwise on behalf of the public as a class in all
   2-38  proceedings before the commission, board, and office of hearings;
   2-39              (2)  intervene as a matter of right or otherwise appear
   2-40  in any judicial proceedings involving or arising out of any
   2-41  proceeding in which the office of public counsel is authorized to
   2-42  appear;
   2-43              (3)  have the same access as any party other than the
   2-44  commission to all records of the commission;
   2-45              (4)  obtain discovery of any nonprivileged matter that
   2-46  is relevant to any proceeding before the commission;
   2-47              (5)  represent the public with respect to complaints
   2-48  concerning matters before the commission; and
   2-49              (6)  recommend legislation to the legislature that in
   2-50  the public counsel's judgment would positively affect the interests
   2-51  of the public in the environmental quality of the state.
   2-52        (b)  Commission personnel shall assist the public counsel in
   2-53  investigations and lawsuits and by conducting laboratory tests as
   2-54  requested by the public counsel.
   2-55        Sec. 5.276.  OTHER REPRESENTATION.  (a)  This subchapter does
   2-56  not limit the authority of the commission to represent the public
   2-57  interest.
   2-58        (b)  The appearance of the public counsel in any proceeding
   2-59  does not preclude the appearance of other parties on behalf of
   2-60  citizens of the state.
   2-61        (c)  The public counsel may not be compelled to be aligned
   2-62  with any other party to a proceeding under the Administrative
   2-63  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
   2-64  Civil Statutes).
   2-65             (Sections 5.277-5.310 reserved for expansion
   2-66                   SUBCHAPTER H.  OFFICE OF HEARINGS
   2-67        Sec. 5.311.  CREATION AND RESPONSIBILITIES.  (a)  In this
   2-68  chapter, "office of hearings" means the State Office of
   2-69  Administrative Hearings.  The office of hearings will conduct
   2-70  hearings according to the procedures set out in this subchapter.
    3-1        (b)  The office of hearings may call and hold hearings,
    3-2  receive evidence at hearings, administer oaths, issue subpoenas to
    3-3  compel the attendance of witnesses and the production of papers and
    3-4  documents and other things, and make findings of fact and decisions
    3-5  with respect to its jurisdiction under law and under rules, orders,
    3-6  permits, licenses, certificates, and other actions adopted, issued,
    3-7  or taken by the commission.  The office of hearings may receive
    3-8  submissions of issues identified for appeal in contested case
    3-9  hearings but is not limited to those issues.
   3-10        Sec. 5.312.  CHIEF EXECUTIVE.  (a)  The governor shall
   3-11  appoint the chief administrative law judge with the advice and
   3-12  consent of the senate for a two-year term expiring January 1 of
   3-13  every odd-numbered year.  The chief administrative law judge is the
   3-14  chief executive of the office of hearings and may be removed in
   3-15  accordance with Article XV, Section 9, of the Texas Constitution.
   3-16        (b)  The chief administrative law judge must be a resident of
   3-17  this state who has been licensed to practice law in this state for
   3-18  at least eight years at the time of the appointment and who has
   3-19  demonstrated experience, either as an attorney or as a member of
   3-20  the judiciary, or both, in the practice of administrative law or in
   3-21  the trial of contested matters.
   3-22        Sec. 5.313.  PERSONNEL.  The chief administrative law judge
   3-23  may employ assistant administrative law judges and other personnel
   3-24  as the legislature authorizes.  Assistant administrative law judges
   3-25  employed in the office of hearings must be attorneys licensed to
   3-26  practice law in this state.  An employee of the office of hearings
   3-27  may not be employed by or perform the duties of an employee of
   3-28  another division of the commission.
   3-29        Sec. 5.314.  CHIEF CLERK.  The chief administrative law judge
   3-30  shall appoint a chief clerk, who shall issue notice of hearings
   3-31  before the office of hearings and serve as custodian of records of
   3-32  the office of hearings.
   3-33        Sec. 5.315.  ADMINISTRATION.  The chief administrative law
   3-34  judge shall administer and supervise the operation of the office of
   3-35  hearings independently of the commission.  The chief administrative
   3-36  law judge shall prepare and approve all budget recommendations on
   3-37  behalf of the office of hearings that are transmitted to the
   3-38  governor and the legislature.
   3-39        Sec. 5.316.  DELEGATION OF RESPONSIBILITY.  The executive
   3-40  director shall delegate to the office of hearings the
   3-41  responsibility to hear all contested cases before the commission
   3-42  and to hold hearings and receive any public comment that is
   3-43  required by law and may delegate the responsibility to hear any
   3-44  other matter before the commission.
   3-45        Sec. 5.317.  ADMINISTRATIVE PROCEDURE.  (a)  The office of
   3-46  hearings shall conduct all administrative hearings in contested
   3-47  cases under the Administrative Procedure and Texas Register Act
   3-48  (Article 6252-13a, Vernon's Texas Civil Statutes), except as
   3-49  provided by this section or as otherwise specifically required by
   3-50  law, including Sections 382.0561 through 382.0563, Health and
   3-51  Safety Code.
   3-52        (b)  In conducting a hearing under this subchapter, an
   3-53  administrative law judge in the office of hearings shall consider
   3-54  all applicable commission rules or policies.  The commission shall
   3-55  publish and make available all commission rules and policies.
   3-56        (c)  Unless required for the disposition of ex parte matters
   3-57  authorized by law:
   3-58              (1)  an administrative law judge of the office of
   3-59  hearings may not communicate directly or indirectly with any
   3-60  commission employee, member of the board, party, or any other
   3-61  person in connection with any issue of fact or law pertaining to a
   3-62  contested case in which the commission, party, or person is
   3-63  involved or has an interest; and
   3-64              (2)  a commission employee, member of the board, party,
   3-65  or any other person may not attempt directly or indirectly to
   3-66  influence the findings of fact or the application of law or rules
   3-67  in a contested case by an administrative law judge of the office of
   3-68  hearings except by proper evidence, pleadings, and legal argument
   3-69  with notice and opportunity for all parties to participate.
   3-70        (d)  The prohibitions of Subsection (c) of this section do
    4-1  not apply to communications between employees of the office of
    4-2  hearings in the proper performance of their duties.
    4-3        (e)  If the executive director, a commission employee, or an
    4-4  administrative law judge receives a communication prohibited by
    4-5  Subsection (c) of this section, the executive director, a
    4-6  commission employee, or the administrative law judge shall
    4-7  terminate the improper communication and shall report the
    4-8  communication in the record of the contested case.
    4-9        (f)  After hearing evidence and receiving legal arguments, an
   4-10  administrative law judge of the office of hearings shall make
   4-11  findings of fact, conclusions of law, and any ultimate findings
   4-12  required by statute, all of which shall be separately stated.  The
   4-13  administrative law judge shall make a proposal for decision and
   4-14  shall serve the proposal for decision on all parties, including the
   4-15  executive director.
   4-16        (g)  If a contested case involves an ultimate finding of
   4-17  compliance with or satisfaction of a statutory standard the
   4-18  determination of which is committed to the discretion or judgment
   4-19  of the executive director by law, then on joint motion of all
   4-20  parties or on the administrative law judge's own motion, an
   4-21  administrative law judge of the office of hearings may certify
   4-22  those policy issues to the executive director.  A certification
   4-23  request shall contain a statement of the policy issue to be
   4-24  determined and a statement of all relevant facts sufficient to show
   4-25  fully the nature of the controversy.  The executive director may
   4-26  receive written or oral statements from parties to the hearing or
   4-27  the administrative law judge on the policy issue certified.  The
   4-28  executive director shall answer a policy issue not later than the
   4-29  60th day after the date on which it is certified unless the
   4-30  executive director in his discretion declines to answer.  If the
   4-31  executive director fails to answer a policy issue within 60 days of
   4-32  certification, the executive director shall be considered to have
   4-33  declined to answer.  The administrative law judge shall proceed
   4-34  with the contested case and make a proposal for decision as
   4-35  required by Subsection (f) of this section.
   4-36        (h)  The executive director may except to:
   4-37              (1)  an underlying finding of fact that serves as the
   4-38  basis for a decision in a contested case; or
   4-39              (2)  a conclusion of law in a contested case.
   4-40        (i)  If a decision in a contested case involves an ultimate
   4-41  finding of compliance with or satisfaction of a statutory standard
   4-42  the determination of which is committed to the discretion or
   4-43  judgment of the executive director by law, the executive director
   4-44  may in the exercise of that discretion or judgment reject a
   4-45  proposal for decision as to the ultimate finding for reasons of
   4-46  policy only.
   4-47        (j)  The executive director shall issue written rulings,
   4-48  orders, or decisions in all contested cases and shall fully explain
   4-49  in the rulings, orders, or decisions the reasoning and grounds for
   4-50  rejecting a proposal for decision on an ultimate finding
   4-51  statutorily committed to its discretion or judgment.
   4-52             SUBCHAPTER I.  LOCAL GOVERNMENT PARTICIPATION
   4-53        Sec. 5.401.  LOCAL GOVERNMENT PARTICIPATION.  (a)  A local
   4-54  government may make recommendations to the commission concerning a
   4-55  rule, determination, variance, or order or may request the
   4-56  commission to assess administrative penalties or initiate
   4-57  enforcement action against any person in violation of any statute
   4-58  or rule administered by the commission that affects an area within
   4-59  the local government's territorial jurisdiction.  The commission
   4-60  shall give maximum consideration to a local government's
   4-61  recommendations or requests.  The commission shall provide the
   4-62  local government the opportunity to present its case through its
   4-63  local counsel.
   4-64        (b)  In addition or as an alternative to any enforcement
   4-65  action otherwise authorized by law, any local government of the
   4-66  state affected by any activity, facility, source, or condition
   4-67  regulated by or under the jurisdiction of the commission may bring
   4-68  a civil action for injunctive relief, civil penalties, or both
   4-69  against any person responsible for the activity or condition or
   4-70  against an owner or operator of the facility or source who is in
    5-1  violation of a rule, regulation, permit, permit condition, or order
    5-2  of or law administered by the commission.
    5-3        (c)  An action brought under Subsection (b) of this section
    5-4  may not be commenced if the commission has commenced and is
    5-5  diligently prosecuting a civil or criminal action to require
    5-6  compliance with a standard, limitation, or order, but in any such
    5-7  action any local government may intervene as a matter of right.
    5-8        (d)  It is not a defense to an action brought under
    5-9  Subsection (b) of this section that the local government has not
   5-10  initiated or exhausted administrative remedies under Subsection (a)
   5-11  of this section.
   5-12        (e)  Any action brought under Subsection (b) of this section
   5-13  may be brought in the county in which the alleged violation
   5-14  occurred or in Travis County.
   5-15        (f)  In any action brought by a local government under
   5-16  Subsection (b) of this section, the commission is a necessary and
   5-17  indispensable party.  Civil penalties recovered in an action
   5-18  brought by a local government under this section shall be equally
   5-19  divided between the state and the local government that first
   5-20  brought the action.
   5-21        (g)  The court shall grant, without bond or other undertaking
   5-22  by the local government, any prohibitory or mandatory injunction or
   5-23  restraining order the facts may warrant.
   5-24        (h)  Any final order issued under this section may award
   5-25  costs of litigation, reasonable attorney fees, and other costs,
   5-26  including expert witness fees, to any local government that
   5-27  prevails or substantially prevails if the order includes a
   5-28  determination that the award is appropriate.
   5-29        (i)  This section is cumulative of any other remedies
   5-30  provided by law to a local government.
   5-31        SECTION 6.  Subsection (g), Section 382.0518, Health and
   5-32  Safety Code, is amended to read as follows:
   5-33        (g)  Subsections (a)-(d) do not apply to a person who has
   5-34  executed a contract or has begun construction for an addition,
   5-35  alteration, or modification to a new or an existing facility on or
   5-36  before August 30, 1971, and who registered with the board as
   5-37  required by <has complied with the requirements of> Section
   5-38  382.060, as it existed on November 30, 1991, unless the facility is
   5-39  in a nonattainment area as defined in Title I of the federal Clean
   5-40  Air Act (42 U.S.C. Section 7401 et seq.).  To qualify for any
   5-41  exemption under this subsection, a contract may not have a
   5-42  beginning construction date later than February 29, 1972.
   5-43        SECTION 7.  Subsection (a), Section 382.091, Health and
   5-44  Safety Code, is amended to read as follows:
   5-45        (a)  A person commits an offense if the person:
   5-46              (1)  intentionally or knowingly, with respect to the
   5-47  person's conduct, violates:
   5-48                    (A)  Section 382.0518(a);
   5-49                    (B)  Section 382.054;
   5-50                    (C)  Section 382.056(a);
   5-51                    (D)  Section 382.058(a); or
   5-52                    (E)  an order, permit, rule, or exemption issued
   5-53  under this chapter;
   5-54              (2)  intentionally or knowingly fails to pay a fee
   5-55  required by this chapter or by a rule adopted or order issued under
   5-56  this chapter;
   5-57              (3)  intentionally or knowingly makes or causes to be
   5-58  made any false material statement, representation, or certification
   5-59  in, or omits material information from, or knowingly alters,
   5-60  conceals, or does not file or maintain any notice, application,
   5-61  record, report, plan, or other document required to be filed or
   5-62  maintained by this chapter or by a rule adopted or permit or order
   5-63  issued under this chapter;
   5-64              (4)  intentionally or knowingly fails to notify or
   5-65  report to the board as required by this chapter or by a rule
   5-66  adopted or permit or order issued under this chapter;
   5-67              (5)  intentionally or knowingly tampers with, modifies,
   5-68  disables, or fails to use a required monitoring device; tampers
   5-69  with, modifies, or disables a monitoring device; or falsifies,
   5-70  fabricates, or omits data from a monitoring device, unless done in
    6-1  strict compliance with this chapter or a permit, rule, variance, or
    6-2  other order issued by the board;
    6-3              (6)  recklessly, with respect to the person's conduct,
    6-4  emits an air contaminant that places any other person in <imminent>
    6-5  danger of death or serious bodily injury unless the emission is
    6-6  made in strict compliance with this chapter or a permit, rule,
    6-7  variance, or other order issued by the board; <or>
    6-8              (7)  intentionally or knowingly, with respect to the
    6-9  person's conduct, emits an air contaminant that places any other
   6-10  person in danger of death or serious bodily injury unless the
   6-11  emission is made in strict compliance with this chapter or a
   6-12  permit, rule, variance, or other order issued by the board;
   6-13              (8)  intentionally or knowingly, with respect to the
   6-14  person's conduct, emits an air contaminant with the knowledge that
   6-15  the person is placing any other person in <imminent> danger of
   6-16  death or serious bodily injury unless the emission is made in
   6-17  strict compliance with this chapter or a permit, rule, variance, or
   6-18  other order issued by the board; or
   6-19              (9)  intentionally, knowingly, or recklessly causes or
   6-20  permits the emission of an air contaminant in a concentration and
   6-21  for a duration that causes air pollution unless the emission is
   6-22  made in strict compliance with a variance or other order issued by
   6-23  the board.
   6-24        SECTION 8.  (a)  This Act takes effect September 1, 1993.
   6-25        (b)  On September 1, 1993:
   6-26              (1)  the name of the Texas Natural Resource
   6-27  Conservation Commission is changed to the Texas Commission on
   6-28  Environmental Quality and all powers, duties, rights, and
   6-29  obligations of the Texas Natural Resource Conservation Commission
   6-30  are the powers, duties, rights, and obligations of the Texas
   6-31  Commission on Environmental Quality;
   6-32              (2)  a member of the Texas Natural Resource
   6-33  Conservation Commission is a member of the Texas Commission on
   6-34  Environmental Quality;
   6-35              (3)  all personnel, equipment, data, documents,
   6-36  facilities, and other items of the Texas Natural Resource
   6-37  Conservation Commission are transferred to the agency under its new
   6-38  name; and
   6-39              (4)  any appropriation to the Texas Natural Resource
   6-40  Conservation Commission is automatically an appropriation to the
   6-41  Texas Commission on Environmental Quality.
   6-42        SECTION 9.  The importance of this legislation and the
   6-43  crowded condition of the calendars in both houses create an
   6-44  emergency and an imperative public necessity that the
   6-45  constitutional rule requiring bills to be read on three several
   6-46  days in each house be suspended, and this rule is hereby suspended.
   6-47                               * * * * *
   6-48                                                         Austin,
   6-49  Texas
   6-50                                                         May 4, 1993
   6-51  Hon. Bob Bullock
   6-52  President of the Senate
   6-53  Sir:
   6-54  We, your Committee on Natural Resources to which was referred S.B.
   6-55  No. 1040, have had the same under consideration, and I am
   6-56  instructed to report it back to the Senate with the recommendation
   6-57  that it do pass and be printed.
   6-58                                                         Sims,
   6-59  Chairman
   6-60                               * * * * *
   6-61                               WITNESSES
   6-62  No witnesses appeared on S.B. No. 1040.