1-1  By:  Montford                                         S.B. No. 1243
    1-2        (In the Senate - Filed March 12, 1993; March 16, 1993, read
    1-3  first time and referred to Committee on Finance; March 31, 1993,
    1-4  reported adversely, with favorable Committee Substitute by the
    1-5  following vote:  Yeas 11, Nays 0; March 31, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Montford           x                               
    1-9        Turner             x                               
   1-10        Armbrister         x                               
   1-11        Barrientos                                     x   
   1-12        Bivins             x                               
   1-13        Ellis              x                               
   1-14        Haley              x                               
   1-15        Moncrief           x                               
   1-16        Parker                                         x   
   1-17        Ratliff            x                               
   1-18        Sims               x                               
   1-19        Truan              x                               
   1-20        Zaffirini          x                               
   1-21  COMMITTEE SUBSTITUTE FOR S.B. No. 1243                By:  Montford
   1-22                         A BILL TO BE ENTITLED
   1-23                                AN ACT
   1-24  relating to the receipt, management, and expenditure of funds in
   1-25  the state treasury and the petroleum storage tank remediation fund.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Section 403.092, Government Code, is amended to
   1-28  read as follows:
   1-29        Sec. 403.092.  TEMPORARY TRANSFER OF SURPLUS AND OTHER CASH.
   1-30  (a)  To allow efficient management of the cash flow of the general
   1-31  revenue fund and to avoid temporary cash deficiency in that fund,
   1-32  the comptroller, with the consent of the state treasurer, may
   1-33  transfer surplus cash, except constitutionally dedicated revenues,
   1-34  between funds in the state treasury.  As soon as practicable the
   1-35  comptroller shall return the surplus cash to the fund from which it
   1-36  was transferred.  The comptroller shall preserve the fund equity
   1-37  and the state treasurer shall allocate the depository interest as
   1-38  if the transfer had not been made.
   1-39        (b)  If the comptroller submits a statement under Article
   1-40  III, Section 49a, of the Texas Constitution when surplus cash
   1-41  transferred under Subsection (a) <this section> is in the general
   1-42  revenue fund, the comptroller shall indicate in that statement that
   1-43  the transferred surplus cash is in the general revenue fund, is a
   1-44  liability of that fund, and is not available for appropriation by
   1-45  the legislature.
   1-46        (c)(1)  The comptroller may temporarily transfer cash from
   1-47  the general revenue fund to the petroleum storage tank remediation
   1-48  fund during the 1994-1995 biennium for the purpose of paying
   1-49  reimbursement claims against that fund.  The amount of cash to be
   1-50  transferred shall not exceed $120 million.  The transfer shall be
   1-51  made on September 1, 1993, or as soon as practicable thereafter.
   1-52              (2)  Notwithstanding other law, fees collected under
   1-53  Section 26.3574, Water Code, shall be deposited to the credit of
   1-54  the general revenue fund until the amount of the fees collected and
   1-55  so deposited to the credit of the general revenue fund equals the
   1-56  amount of the temporary cash transfer authorized in Subdivision (1)
   1-57  plus the amount of funds transferred to the petroleum storage tank
   1-58  remediation fund under Subdivision (3).  Fees collected in excess
   1-59  of the amount required by this subdivision shall be deposited to
   1-60  the credit of the petroleum storage tank remediation fund.
   1-61              (3)  The comptroller and the Texas Natural Resource
   1-62  Conservation Commission shall develop a schedule to transfer funds
   1-63  deposited to the credit of the general revenue fund under
   1-64  Subdivision (2) to the petroleum storage tank remediation fund for
   1-65  the commission's use in accordance with Section 26.3573(d), Water
   1-66  Code.
   1-67              (4)  The amount transferred under Subdivisions (1) and
   1-68  (3) is a receivable of the general revenue fund for the purpose of
    2-1  statements that the comptroller submits under Article III, Section
    2-2  49a, of the Texas Constitution.  The transferred amount is
    2-3  available for appropriation by the legislature.
    2-4              (5)  This subsection expires on the latter of August
    2-5  31, 1995, or on the date of full repayment to the general revenue
    2-6  fund of the amount required under Subdivision (2).
    2-7        SECTION 2.  Section 26.3573, Water Code, is amended by
    2-8  amending Subsections (b), (d), and (g) and by adding Subsection (p)
    2-9  to read as follows:
   2-10        (b)  The petroleum storage tank remediation fund consists of
   2-11  money from:
   2-12              (1)  fees charged under Section 26.3574 of this code;
   2-13              (2)  the interest and penalties for the late payment of
   2-14  the fee charged under Section 26.3574 of this code; <and>
   2-15              (3)  funds received from cost recovery for corrective
   2-16  action and enforcement actions concerning petroleum storage tanks
   2-17  as provided by this subchapter; and
   2-18              (4)  temporary cash transfers and other transfers from
   2-19  the general revenue fund authorized by Section 403.092(c),
   2-20  Government Code.
   2-21        (d)  The commission may use the money in the petroleum
   2-22  storage tank remediation fund to pay:
   2-23              (1)  necessary expenses associated with the
   2-24  administration of the petroleum storage tank remediation fund and
   2-25  the groundwater protection cleanup program, not to exceed an amount
   2-26  equal to five <three> percent of the gross receipts of that fund,
   2-27  provided that the increment between two and three percent of the
   2-28  gross receipts may be used only to pay administrative expenses
   2-29  associated with regulating petroleum storage tanks, reimbursing
   2-30  eligible owners and operators, and disposing of contaminated soils,
   2-31  and further provided that the increment between three and five
   2-32  percent of the gross receipts may be used only to pay
   2-33  administrative expenses associated with conducting claims audits in
   2-34  accordance with Section 26.35735 of this code, reimbursing eligible
   2-35  owners and operators, and disposing of contaminated soils;
   2-36              (2)  expenses associated with investigation, cleanup,
   2-37  or corrective action measures performed in response to a release or
   2-38  threatened release from a petroleum storage tank, whether those
   2-39  expenses are incurred by the commission or pursuant to a contract
   2-40  between a contractor and an eligible owner or operator as
   2-41  authorized by this subchapter; and
   2-42              (3)  subject to the conditions of Subsection (e) of
   2-43  this section, expenses associated with investigation, cleanup, or
   2-44  corrective action measures performed in response to a release or
   2-45  threatened release of hydraulic fluid or spent oil from hydraulic
   2-46  lift systems or tanks located at a vehicle service and fueling
   2-47  facility and used as part of the operations of that facility.
   2-48        (g)  The commission shall administer the petroleum storage
   2-49  tank remediation fund and by rule adopt guidelines and procedures
   2-50  for the use of and eligibility for that fund, subject to the
   2-51  availability of money in that fund, as the commission finds
   2-52  necessary to:
   2-53              (1)  make the most efficient use of the money
   2-54  available, including:
   2-55                    (A)  establishing priorities for payments from
   2-56  the fund; and
   2-57                    (B)  suspending payments from the fund; and
   2-58              (2)  provide the most effective protection to the
   2-59  environment and provide for the public health and safety.
   2-60        (p)  An owner or operator shall not be entitled to, nor shall
   2-61  be paid, interest on any claim for payment from the petroleum
   2-62  storage tank remediation fund.
   2-63        SECTION 3.  Subchapter I, Chapter 26, Water Code, is amended
   2-64  by adding Section 26.35735 to read as follows:
   2-65        Sec. 26.35735.  CLAIMS AUDIT.  (a)  The commission annually
   2-66  shall audit claims for payment from the petroleum storage tank
   2-67  remediation fund.
   2-68        (b)  The commission shall conduct the audit in accordance
   2-69  with generally accepted accounting standards as prescribed by the
   2-70  American Institute of Certified Public Accountants, the
    3-1  Governmental Accounting Standards Board, the United States General
    3-2  Accounting Office, or other professionally recognized entities that
    3-3  prescribe auditing standards.
    3-4        (c)  The commission may use generally recognized sampling
    3-5  techniques to audit claims if the commission determines that the
    3-6  use of those techniques would be cost-effective and would promote
    3-7  greater efficiency in administering claims for payment from the
    3-8  petroleum storage tank remediation fund.
    3-9        (d)  The commission may adopt rules necessary to implement
   3-10  this section.
   3-11        SECTION 4.  This Act takes effect September 1, 1993.
   3-12        SECTION 5.  The importance of this legislation and the
   3-13  crowded condition of the calendars in both houses create an
   3-14  emergency and an imperative public necessity that the
   3-15  constitutional rule requiring bills to be read on three several
   3-16  days in each house be suspended, and this rule is hereby suspended.
   3-17                               * * * * *
   3-18                                                         Austin,
   3-19  Texas
   3-20                                                         March 31, 1993
   3-21  Hon. Bob Bullock
   3-22  President of the Senate
   3-23  Sir:
   3-24  We, your Committee on Finance to which was referred S.B. No. 1243,
   3-25  have had the same under consideration, and I am instructed to
   3-26  report it back to the Senate with the recommendation that it do not
   3-27  pass, but that the Committee Substitute adopted in lieu thereof do
   3-28  pass and be printed.
   3-29                                                         Montford,
   3-30  Chairman
   3-31                               * * * * *
   3-32                               WITNESSES
   3-33                                                  FOR   AGAINST  ON
   3-34  ___________________________________________________________________
   3-35  Name:  Brooks Smith                              x
   3-36  Representing:  Tx Oil Marketers Assoc.
   3-37  City:  Austin
   3-38  -------------------------------------------------------------------
   3-39  Name:  Scott Fisher                              x
   3-40  Representing:  Tx Oil Marketers Assoc.
   3-41  City:  Austin
   3-42  -------------------------------------------------------------------
   3-43  Name:  Jim Haley                                               x
   3-44  Representing:  Texas Water Commission
   3-45  City:  Austin
   3-46  -------------------------------------------------------------------
   3-47  Name:  Gayle Vickers                             x
   3-48  Representing:  Tx Bankers Assoc.
   3-49  City:  Austin
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   3-51  Name:  Roger G. Bourdeau                                       x
   3-52  Representing:  Tx Assoc. of Storage Tank
   3-53  City:  Austin
   3-54  -------------------------------------------------------------------
   3-55  Name:  Sam J. Susser                                           x
   3-56  Representing:  Susser Companies
   3-57  City:  Corpus Christi
   3-58  -------------------------------------------------------------------
   3-59  Name:  Gwen Montgomery                                         x
   3-60  Representing:  Tx Assoc. Storage Tank Prof
   3-61  City:  Houston
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   3-63                                                  FOR   AGAINST  ON
   3-64  ___________________________________________________________________
   3-65  Name:  Edwin C. Kettenbrink, Jr.                               x
   3-66  Representing:  Landmark Environmental
   3-67  City:  Euless
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   3-69  Name:  Jerry Susser                                            x
   3-70  Representing:  Susser Environmental
    4-1  City:  Corpus Christi
    4-2  -------------------------------------------------------------------
    4-3  Name:  Rich Atwell                                             x
    4-4  Representing:  Coastal Transport Co., Inc.
    4-5  City:  San Antonio
    4-6  -------------------------------------------------------------------
    4-7  Name:  Joseph F. Phillips                                x
    4-8  Representing:  Phillips Properties, Inc.
    4-9  City:  McAllen
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