BILL ANALYSIS



C.S.H.B. 3220
By: Howard
04-25-95
Committee Report (Substituted)


BACKGROUND

The Used Oil Recycling program was created by Acts 1991, 72nd Leg.,
ch. 303, eff. Sept. 1, 1991 and amended by Acts 1993, 73rd Leg.,
ch. 899, eff. Oct. 1, 1993.  At the time the program was
established, the Environmental Protection Agency (EPA) had not
promulgated their final rules related to used oil or oil filters. 
The rules, once adopted, were inconsistent with Texas' law and with
the rules adopted by the Texas Natural Resource Conservation
Commission (TNRCC).  The original legislation addressed used oil;
no provisions were made for used oil filters.  Subsequent to the
enactment of legislation, the TNRCC adopted rules regarding used
oil and used oil filters (18 TexReg 6493, effective Oct. 6, 1993)
that are among the most stringent in the nation.

The current eight cent per gallon fee attached to the sale of oil
has raised approximately 
$8 million per year.  The fund has returned an average of $2.6
million per year, for the past four years, to the state's general
revenue fund.  The TNRCC has used up to 20 percent of the fund for
administrative costs.  There have been 60 direct grants made to
local governments for a total of $2,474,212 since the beginning of
the grant program in 1992.  In 1993 additional grants were made to
Councils of Government for a total of $1,518,940 of which 62% of
the total was re-distributed to local communities for used oil
collection.

PURPOSE

HB 3220 will make Texas' regulations consistent with federal
standards, provide more specific legislative direction for the
management of used oil filters, and create an incentive program for
private industry through which more used oil collection centers
will be established.  HB 3220 will also cap administrative costs,
reduce available funds through a lower fee on motor oil, and
provide for a fee sunset.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly grants
additional rulemaking authority to the Texas Natural Resource
Conservation Commission (TNRCC) in SECTION 5 [Sec. 371.028 (a) and
(b), Health and Safety Code].  

It is also the committee's opinion that the bill does not expressly
grant rulemaking authority but amends existing rulemaking authority
of the TNRCC in the following section of the bill:

     in SECTION 5 (Sec. 371.023, Health and Safety Code); 
     in SECTION 5 (Sec. 371.024, Health and Safety Code); and
     in SECTION 5 (Sec. 371.026, Health and Safety Code).


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 371.001, Health & Safety Code, as
follows:

Sec. 371.001 amends the short title of this act from Used Oil
Collection, Management, and Recycling Act to Texas Used Oil
Collection, Management, and Recycling Act.

SECTION 2.  Amends Section 371.002, Health and Safety, by deleting
current findings and adding new findings as follows:
     (1) when properly managed and recycled, used oil is a valuable
energy resource
     (2) used oil can be recycled into a number of different
     products
     (3) improper disposal of used oil is a significant
     environmental problem
     (4) there is a need for an expanded statewide network of oil
     collection sites
     (5) the private sector, with incentives, is best equipped to
     establish and operate used oil collection centers
     (6) the need for publicly operated used oil collection centers
     should diminish; the need is greatest in more sparsely
     populated areas
     (7) the Environmental Protection Agency (EPA) has issued final
     regulations classifying and regulating used oil and used oil
     filters
     (8) the current Texas used oil and used oil filter program
     imposes more stringent requirements than the EPA rules
     (9) limited public money is needed to finance infrastructure
     investments to collect, manage and recycle used motor oil 
     (10) the federal standards establish a balanced approach

SECTION 3.  Amends Subchapter A, Chapter 371, Health and Safety
Code, by adding 371.0025 as follows:
Sec. 371.0025  states that the purposes of this chapter are to
ensure that the Texas used oil program is consistent with the
federal program, and to establish a program to promote public and
private do-it-yourselfer used oil collection centers.

SECTION 4.  Amends Section 371.003, Health and Safety Code, by
deleting the existing definition of "public used oil collection
center" and as follows:
     (2) "Commission" means the Texas Natural Resource Conservation
     Commission.
     (3) "Do-it-yourselfer used oil collection center" means a site
     that accepts or aggregates and stores used oil collected from
     household do-it-yourselfers.  If the registered do-it-yourselfer used oil collection center is also a used oil
     generator, the center may commingle household do-it-yourselfer
     used oil with its own self-generated used oil.
     (4) "Household do-it-yourselfer (DIY) used oil" means oil that
     is derived from a household, including used oil generated
     through the maintenance of a personal vehicle or equipment.
     (5) "Household do-it-yourselfer used oil generator" means an
     individual who generates household do-it-yourselfer used oil.
     (6) "New tank" means a tank that will be used to store or
     process used oil.
     (7) "Processing" means chemical or physical operations
     designed to produce from used oil fuel oils, lubricants, or
     other oil-derived products.
     (8) "Reclaiming" means processing material to recover a usable
     product or regenerating material, rather than used oil.
     (9) "Recycling" adds subsection (C) to the current definition
     to include burning used oil for energy recovery.
     (10) "Rerefining" means applying processes to material
     composed primarily of used oil to produce high-quality base
     stocks for lubricants or other petroleum products.
     (11) "Used oil" means any oil that has been refined from crude
     oil, that as a result is contaminated; deletes language
     calling "used oil" unsuitable for its original purpose.
     (12) "Used oil aggregation point" means a site that accepts,
     aggregates or stores used oil collected from other used oil
     sites owned by the owner of the aggregation point, or from
     household do-it-yourselfers.
     (13) "Used oil burner" means a facility where used oil not
     meeting specific requirements is burned for energy recovery in
     specified devices.
     (14) "Used oil collection center" means a site or facility
     registered by the commission to manage used oil and accepts
     oil from used oil generators who transport used oil in
     shipments of not more than 55 gallons and household do-it-yourselfers.
     (15) "Used oil fuel marketer" means a person who directs a
     shipment of off-specification used oil or first claims that
     used oil to be burned for energy recovery meets used oil
     specifications.
     (16) "Used oil generator" means any person, by site, who
     produces used oil or first causes used oil to become subject
     to regulation.
     (17) "Used oil processor or rerefiner" means a facility that
     processes used oil.
     (18) "Used oil transfer facility" means a transportation-related facility where shipments of used oil are held for more
     than 24 hours and not longer than 35 days.
     (19) "Used oil transporter" means a person who transports used
     oil or owns or operates a used oil transfer facility.  

SECTION 5.  Chapter 371, Subchapter B, Health and Safety Code, is
amended as follows:

Sec. 371.021 adds used oil filters to the public education program. 
 
Sec. 371.022 requires high volume automobile oil retailers to
include instructions for disposal of used oil filters on the
already required sign posted in a prominent place.
Sec. 371.023 is amended as follows:
     (a) adds private entities to the list of possible recipients
     of grants for used oil collection programs.  Stipulates that
     the grant program is for the purpose of encouraging the
     collection, reuse, and recycling of household do-it-yourselfer
     used oil.
     (b) Allows the commission to approve a grant for curbside
     pickup of containers of household do-it-yourselfer used oil,
     retrofitting of municipal solid waste equipment to facilitate
     curbside pickup, establishment of do-it-yourselfer used oil
     collection centers at locations accessible to the public,
     provision of containers and other materials and supplies that
     can be used to store household do-it-yourselfer used oil, and
     any other activity the advisory committee established in
     Subsection (e) determines will encourage the proper recycling
     of household do-it-yourselfer used oil.
     (c) Is added to allow the commission, through the Texas
     Department of Commerce, to extend grants during 1995 to any
     entity that participates in the processing or recycling of
     used oil filters.  The grant is for the development or
     enhancement of structures for recycling used oil filters; the
     aggregate amount is capped at $500,000.
     (d) Is added to require the commission to only make grants
     directly to a do-it-yourselfer used oil collection center or
     group of centers. Grants to entities which redistribute funds
     are prohibited.
     (e) Is added to require the commission to appoint an advisory
     committee for the used oil program.
     (f) The commission by rule is required to establish procedures
     for the application for and criteria for the award of grants
     under this section.
Sec. 371.024 is amended as follows:
     (a) Encourages all appropriate businesses and government
     agencies to serve as do-it-yourselfer used oil and used oil
     collection centers.
     (b) Requires a do-it-yourselfer used oil collection center and
     a used oil collection center to register with the commission
     and report to the commission biannually.
     (c) Requires the commission to adopt rules governing the
     registration of and reporting by do-it-yourselfer used oil and
     used oil collection centers.
     (d) Requires the commission by rule to adopt standards for
     managing and operating a do-it-yourselfer used oil collection
     center or a used oil collection center.
     (e) Allows the commission to impose a fee to cover the actual
     cost of registering do-it-yourselfer and used oil collection
     centers.  Adds a requirement that private entities which serve
     voluntarily as do-it-yourselfer used oil collection centers
     are exempt from registration fee.
Sec. 371.0245 is amended as follows:
     (a) Requires the commission to reimburse do-it-yourselfer or
     used oil collection centers for costs associated with the
     center's disposal of household do-it-yourselfer used oil
     collected that, unknown to the collection center, is unfit for
     recycling or has been commingled with other oils and is
     unsuitable for recycling.
     (b)  A registered do-it-yourselfer used oil collection center
     is eligible for reimbursement if it demonstrates that the
     center has established procedures to minimize the risk that
     the center will mix used oil the center generates or collects
     from the public with hazardous wastes and that the center can
     document the volume of used oil the center collects from the
     public during any period or length of time under review by
     requiring individuals who leave do-it-yourselfer oil to
     provide their names, addresses, and approximate amount of oil
     left.  Deletes requirement that do-it-yourself oil be kept in
     a separate container.
     (c) The owner or operator of a registered do-it-yourselfer
     used oil collection center may presume that an amount of less
     than five gallons of used oil collected from a member of the
     public is not mixed with a hazardous substance.
     (d) A registered do-it-yourselfer used oil collection center
     may not be reimbursed for more than $7,500 in any state fiscal
     year; changed from $5,000.
     (e) Requires all reimbursements made under this section to be
     paid out of the used oil recycling fund which shall not exceed
     an aggregate amount of $500,000 each fiscal year.
Sec. 371.0246 is amended as follows:
     (a) An owner or operator of a do-it-yourselfer used oil
     collection center may apply for reimbursement from the
     commission.
     (b) An application for reimbursement shall be submitted on an
     approved form.
     (c) In addition to already existing requirements, an
     application for reimbursement must contain (4) a copy of any
     manifest or shipping documents that accompanied the
     transportation of the shipment of used oil, and (6)
     documentation required before acceptance of a hazardous waste
     by the disposal facility that accepted the contaminated used
     oil for treatment and/or disposal.
     (d) Claims for reimbursements are subject to funds available
     for reimbursement.
Sec. 371.025 is not amended.
Sec. 371.026 is amended as follows: 
     (a) The commission is required to adopt rules governing
     registration and reporting of used oil handlers other than
     generators.  The rules shall require the handler to register
     biannually, report biannually, provide evidence of familiarity
     with applicable state laws and rules applicable to used oil
     handling, and provide proof of financial responsibility for
     liability that may be incurred in handling used oil.
     (b) Requires the commission by rule to adopt reasonable
     management and safety standards for the handling of used oil.
     (c) Allows the commission to impose a registration fee in an
     amount sufficient to cover the actual cost of registering used
     oil handlers.
     (d) Is added to allow a used oil transporter to consolidate or
     aggregate loads of used oil for the purposes of
     transportation.  Also allows a used oil transporter to conduct
     incidental processing operations not designed to produce used-oil-derived products or used oil fuel.
Sec. 371.027 changes "department" to "commission".
Sec. 371.028 is amended as follows:
     (a) Requires the commission to establish, not later than
     January 1, 1996, rules, standards and procedures as necessary
     to implement the used oil program.  They must be consistent
     with federal used oil management standards.
     (b) The classification of used oil filters is an exception to
     Subsection (a).  Requires the commission to adopt rules,
     standards and procedures consistent with the federal
     classification of used oil filters, no later than January 1,
     2000.

SECTION 6.     Section 371.041, Health and Safety Code, is amended
as follows:
     (b) A person commits an offense if the person:
           (1) not amended
           (2) knowingly mixes or commingles used oil with waste
           that is to be disposed of in landfills or directly
           disposes of used oil on land
           (3) knowingly transports, treats, stores, disposes,
           recycles, causes to be transported, or otherwise handles
           any used oil without complying with registration
           requirements.
           (4) intentionally applies used oil to roads or land
           (5) violates an order of the commission to cease and
           desist
           (6) makes any false statement or representation in any
           document filed, maintained, or used for program
           compliance
     (c) It is an exception to the application of Subsection (b) if
     a person unknowingly disposes into the environment any used
     oil not properly segregated from other solid wastes.
     (d) Reference to "solid waste" is changed to "waste".
     (e) It is an exception to the application of Subsection (b)(2)
     if the mixing or commingling of used oil with waste is the
     result of an oil change that results in the generation of a
     used oil filter under 40 CFR 261.4(b)(13).

SECTION 7.  Amends Section 371.042, Health and Safety Code, as
follows:
     (a) Except as provided by Subsection (b), an offense under
     371.041 is punishable by a fine of not less than $100 or more
     than $10,000 for each act of violation or each day of a
     continuing violation, imprisonment for a term not to exceed
     five years, or both.
     (b) If the defendant has been previously convicted, the
     offense is punishable by a fine of not less than $200 or more
     than $20,000 for each act of violation or each day of a
     continuing violation, imprisonment for a term not to exceed 10
     years, or both.

SECTION 8.  Section 371.043, Health and Safety Code, is amended as
follows:
     (c) Reference to "Section 371.026" is changed to "Section
371.024".
     (d) Changes "department" to "commission".

SECTION 9.  Sec. 371.061, Health and Safety Code, is amended as
follows:
     (b)(3) Changes "department" to "commission".
     (c) The commission may use money in the fund only for the
     purposes authorized by this chapter.  Adds grants to public
     and private do-it-yourselfer used oil collection centers as
     well as registration of do-it-yourselfer used oil centers and
     used oil handlers as authorized purposes.  Stipulates that the
     administrative costs of implementing this chapter are not to
     exceed six percent of the fund balance in any fiscal year.
     (d) Requires the commission to set aside 25 percent of the
     fees collected under Section 371.062 for the sole purpose of
     restoring environmental quality that have been contaminated
     through improper used oil management.  This subsection expires
     on 
     January 1, 1998.

SECTION 10.  Sec. 371.062, Health and Safety Code, is amended as
follows:
     (a) Definitions are amended as follows:
           (1) "First sale" adds a stipulation to the current
           definition that the term does not include the sales of
           automotive oil to any subsequent purchaser who maintains
           a registered do-it-yourselfer used oil collection center
           at the location where the oil is changed.  
           (4) "Permitted distributor" is added to mean a
           distributor who maintains a distribution center in this
           state and exports from this state more than 25,000
           gallons of automotive oil on an annual basis. 
           Stipulates that a permitted distributor is required to
           file an application with the comptroller for a
           nonassignable permit.  The comptroller is required to
           promulgate the application form, and may deny or revoke
           a permit if false information is submitted.
     (b) A permitted distributor, as well as an oil manufacturer,
     who makes a first sale of oil is liable for a fee.
     (f) A permitted distributor, as well as an oil manufacturer,
     is obligated to follow the requirements of this subsection.
     (j) The fee imposed under this section is one cent per quart
     or four cents per gallon of automotive oil.  Language
     referring to adjusting the fee rate is deleted.
     (m) A distributor must obtain a permit from the comptroller;
     the comptroller is required to adopt an application for the
     permit which must include the business name, the location, the
     names of principal officers of the corporation or members of
     the partnership (if applicable), any other information
     required by the comptroller.
     (n) Allows the comptroller to deny or revoke a permit under
     Subsection (m) if false information is submitted.
     (o) A permit under Subsection (m) may not be assigned.
     (p) Establishes expiration date of January 1, 2000 for fee
     imposed under this section.

SECTION 11. (a) The change in law made by this Act to Section
371.042, Health and Safety, applies only to an offense committed on
or after the effective date of this Act.
     (b) An offense committed before the effective date of this Act
     is covered by the law in effect when the offense was
     committed.

SECTION 12. (a) Effective date: September 1, 1995, except as
provided by Subsection (b).
     (b) Effective date for Section 371.062(j), Health and Safety,:
January 1, 1996.

SECTION 13.  Emergency clause.





COMPARISON OF ORIGINAL TO SUBSTITUTE

The substantial differences between the original HB 3220 and the
committee substitute for 
HB 3220 are as follows:


HB 3220 as filed
Committee Substitute for HB
3220


§371.002 (4) states that there
is a need for a network of
public and private used oil
collection sites.
§371.002 (4) states that there
is a need for a network of
used oil sites (does not refer
to "public and private".


Does not have corresponding
provision.
§371.002 adds two new
Subsections:
(5) the private sector, with
incentives, is best equipped
to establish and operate used
oil collection centers
(6) the need for publicly
operated used oil collection
centers should diminish; the
need is greatest in more
sparsely populated areas


§371.0021 References used oil
filter federal rules as
promulgated on the effective
date of this Act not later
than January 1, 2000.
This language is cleaned up
and changed to §371.028 (b)
which requires the commission
to adopt rules, standards, and
procedures consistent with the
federal classification of used
oil filters no later than
January 1, 2000. 


§371.0021 States than no rule
which the TNRCC makes for the
purpose of the state
administration of the used oil
program shall be more
stringent than corresponding
federal regulations.
This language is not in the
substitute. However, similar
language is found in §371.028
(a) which requires the
commission to establish, not
later than January 1, 1996,
rules, standards and
procedures as necessary to
implement the used oil
program, and provides that
they must be consistent with
federal used oil management
standards.


§371.003 Includes definitions
for "Aboveground tank",
"Container", "Existing tank",
and "Tank".  
§371.003 does not include
definitions for "Aboveground
tank", "Container", "Existing
tank", or "Tank".


§371.003 (5) "Do-it-yourselfer
used oil collection center"
means any site that accepts or
aggregates and stores used oil
collected from household do-it-yourselfers.
§371.003 (3) "Do-it-yourselfer
used oil collection center"
means a site that accepts or
aggregates and stores used oil
collected from household do-it-yourselfers.  The
substitute adds that if the
registered do-it-yourselfer
used oil collection center is
also a used oil generator, the
center may commingle household
do-it-yourselfer used oil with
its own self-generated used
oil.


Does not have a definition of
"Reclaiming".
§371.003 (8) defines
"Reclaiming" to mean
processing material to recover
a usable product or
regenerating material.


§371.003 (11) Defines
"Recycling" as a material
which is used, reused or
reclaimed as described at 40
CFR 261.1(c).
§371.003 (9) defines
"Recycling" by adding
subsection (C) to the current
definition to include burning
used oil for energy recovery.


§371.003 (12) Defines
"Rerefining distillation
bottoms" as the heavy fraction
produced by vacuum
distillation of filtered and
dehydrated used oil.
§371.003 (10) is the
corresponding definition in
the substitute, but is changed
to "Refining" and means
applying processes to material
composed primarily of used oil
to produce high-quality base
stocks for lubricants or other
petroleum products.


§371.003 (22) Defines "Used
oil transporter" as any person
who transports used oil,
collects used oil from more
than one generator and
transports it, and owners and
operators of used oil
facilities.  The definition
also stipulates that the
transporter is allowed to
consolidate or aggregate loads
of used oil for the purposes
of transportation.  Also
allows a used oil transporter
to conduct incidental
processing operations not
designed to produce used-oil-derived products or used oil
fuel.
§371.003 (19) Defines "Used
oil transporter" as a person
who transports used oil or
owns or operates a used oil
transfer facility.

The language allowing a
transporter to consolidate or
aggregate loads of used oil
for the purposes of
transportation and conduct
incidental processing
operations not designed to
produce used-oil-derived
products or used oil fuel is
found in §371.026 (d) of the
substitute.


Contains §371.0211 ADOPTION OF
FEDERAL USED OIL STANDARDS.
Similar language is in changes
to Sec. 371.028 of the
substitute.  


§371.023 (c) Requires the
commission by rule to
establish procedures for the
application for and criteria
for the award of grants
pursuant to this section.
§371.023 (f) is the
corresponding subsection in
the substitute.
A new §371.023 (c) is added to
the substitute to allow the
commission, through the Texas
Department of Commerce, to
extend grants during 1995 to
any entity that participates
in the processing or recycling
of used oil filters.  The
grant is for the development
or enhancement of structures
for recycling used oil
filters; the aggregate amount
is capped at $500,000.


§371.024 (b) Requires a do-it-yourselfer used oil collection
center to register with the
commission and report to the
commission annually.
§371.024 (b) Requires a do-it-yourselfer used oil collection
center and a used oil
collection center to register
with the commission and report
to the commission biannually.


§371.024 (a) - (e) refer to
"do-it-yourselfer used oil
collection center(s)".
§371.024 (a) - (e) refer to
"do-it-yourselfer used oil
collection center(s) and used
oil collection center(s)."


§371.0245 refers to a "do-it-yourselfer used oil collection
center".
§371.0245 refers to a "do-it-yourselfer used oil collection
center or a used oil
collection center".


The original bill deleted
§371.025 LIMITATION OF
LIABILITY.
The substitute includes
§371.025 LIMITATION OF
LIABILITY, but it is not
amended from current law.


§371.026 refers to used oil
transporters, marketers, and
recyclers.
§371.026 refers to "used oil
handlers other than
generators".


§371.026 (a) Registration and
reporting is annual.
§371.026 (a) Registration and
reporting is biannual.


The corresponding language in
the original is found in
§371.003 (22) under the
definition of "Used oil
transporter".
§371.026 (d) Is added to allow
a used oil transporter to
consolidate or aggregate loads
of used oil for the purposes
of transportation.  Also
allows a used oil transporter
to conduct incidental
processing operations not
designed to produce used-oil-derived products or used oil
fuel.


§371.028  The rulemaking
deadline is 
July 1, 1995.  There is no
provision for rules to be
consistent with federal rules.
§371.028 (a) The rulemaking
deadline is 
January 1, 1996.  Commission
rules are required to be
consistent with federal rules.
(b) is added to require the
commission to adopt rules,
standards and procedures
consistent with the federal
classification of used oil
filters, no later than January
1, 2000.


§371.041 (b)(2) a person
commits an offense if the
person knowingly commingles
used oil with waste that is to
be disposed of in landfills.
§371.041 (b)(2) a person
commits an offense if the
person knowingly commingles
used oil with waste that is to
be disposed of in landfills or
directly disposes of used oil
on land.


§371.041 (b)(3) a person
commits an offense if the
person transports, markets, or
recycles used oil without
complying with registration
requirements.
§371.041 (b)(3) a person
commits an offense if the
person knowingly transports,
treats, stores, disposes,
recycles, causes to be
transported, or otherwise
handles used oil without
complying with registration
requirements.


No similar provision.
§371.041 (b)(6) is added to
stipulate that a person
commits an offense if that
person makes any false
statement or representation in
any document filed,
maintained, or used for
program compliance


§371.041 (e) Exception is date
specific to January 1, 2000.
§371.041 (e) Exception is not
date specific.


§371.042 (a) and (b) state
that an offense under Section
341.041 is a Class C
misdemeanor.
§371.042 (a) and (b) delete
references to Class C
misdemeanor and specify
punishment: (a) Except as
provided by Subsection (b), an
offense under 371.041 is
punishable by a fine of not
less than $100 or more than
$10,000 for each act of
violation or each day of a
continuing violation,
imprisonment for a term not to
exceed five years, or both.
(b) If the defendant has been
previously convicted, the
offense is punishable by a
fine of not less than $200 or
more than $20,000 for each act
of violation or each day of a
continuing violation,
imprisonment for a term not to
exceed 10 years, or both.


§371.043 (c) refers to
§371.026.
§371.043 (c) deletes reference
to §371.026.


§371.062 (a)(1) The term
"First Sale" does not include
the sales of automotive oil to
the US Government or its
instrumentalities.  The term
also does not include the
sales of automotive oil to a
permitted distributor.
§371.062 (a)(1) does not
include this provision.


§371.062 (m) Automotive fee
expires on January 1, 2000.
§371.062 (p) is the
corresponding Subsection in
the substitute.


Sec. 371.062 of the filed
version contains similar
language.
§371.062 Adds new Subsections
(m) - (o) as follows:
(m) A distributor must obtain
a permit from the comptroller;
the comptroller is required to
adopt an application for the
permit which must include the
business name, the location,
the names of principal
officers of the corporation or
members of the partnership (if
applicable), any other
information required by the
comptroller.
(n) Allows the comptroller to
deny or revoke a permit under
Subsection (m) if false
information is submitted.
(o) A permit under Subsection
(m) may not be assigned.



SUMMARY OF COMMITTEE ACTION

HB 3220 was considered by the House Committee on Environmental
Regulation in a public hearing on April 25, 1995.  The chair
recognized Rep. Howard to explain the bill.  The committee
considered a complete substitute to HB 3220.  The following persons
testified in favor of the bill:
     Steve Perry, representing Texaco & Star Enterprise
     Nancy Sauer, representing Pennzoil Company
     Ty Nilsson, Director-Marketing Services, Purolator Products,
     Inc., representing Filter Manufacturers Council
     Frank Denton, Quick Lube operator, representing himself and
     Automotive Oil Change Association
     Randall A. Roessler, Quick Lube operator/owner, representing
     Automotive Oil Change Association, Texas Operators Group -
     AOCA

Four amendments were offered to the substitute, all of which were
adopted without objection.  The substitute as amended was adopted
without objection.  The chair directed the staff to incorporate the
amendments into the substitute.

HB 3220 was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote of
seven (7) ayes, no (0) nays, no (0) pnv, and two (2) absent.