BILL ANALYSIS



C.S.H.B. 3226
By: Berlanga, Holzheauser, et al.
04-28-95
Committee Report (Substituted)


BACKGROUND

In 1989, the 70th Legislature enacted S.B. 1571 directing the Texas
General Land Office (GLO) to develop a coastal management plan
(CMP) in conjunction with other state agencies.  In 1990, a
citizens advisory committee was formed which conducted public
hearings and workshops and identified priority issues including
shoreline erosion, public beach access planning, loss of sand dunes
and wetlands, and interagency coordination.  The committee's
recommendations formed the basis of new legislation, S.B. 1053 and
S.B. 1054, passed by the 71st Legislature.  S.B. 1053 in particular
created the Coastal Coordination Council (CCC), naming the Texas
Land Commissioner as its chair and giving the CCC broad authority
to resolve conflicts between state agencies and again directed the
GLO to develop a CMP in conjunction with other state agencies.  
After a negotiated rulemaking process involving stakeholder groups
and state agencies, the CCC adopted rules, on September 16, 1994,
establishing the CMP, as well as setting out the coastal natural
resource areas and the actions covered by the CCC review process. 
Some persons have raised concerns that the "review" authority
granted the CCC may give rise to a "new layer of bureaucracy" and
lead to increased costs and time delays in state and federal
permitting actions, in spite of the policy goal of the CCC to
"provide for more effective and efficient management of coastal
natural resource areas".  On the other hand, other persons are
concerned that the CCC retain certain of its review powers, in
order to ensure federal approval by the National Oceanic and
Atmospheric Administration of Texas' coastal management plan.


PURPOSE

The purpose of H.B. 3226 is to address concerns regarding the CCC's
broad authority, specifically in its "review" powers.  H.B. 3226
sets prescribed limits on the broad authority previously granted to
the CCC to review agency and subdivision actions by codifying the
CCC rules insofar as those rules establish the basic elements of
the CCC's review powers.  There are several intended results of the
codification:

     (1)   the CCC will review only those actions with major
           potential impacts on the coast;
     (2)   the CCC review process will not be duplicative of agency
           and subdivision actions; and 
     (3)   there is no mandatory Council review of an action.


RULEMAKING AUTHORITY

It is the opinion of the committee that SECTION 4 of this bill
would grant the Coastal Coordination Council the authority to adopt
rules to implement the following procedures:  (1) for determining
the consistency of agency or subdivision actions, federal agency
actions or activities, and outer continental shelf plans with the
coastal program; (2) for an applicant to seek a preliminary
consistency review; (3) for an individual or small business to
obtain assistance with filing applications for permits or other
proposed actions; and (4) for an agency to submit rules and rule
amendments to the council for consistency review, for council
review of agency thresholds, and for council revocation of such
consistency determinations. 



SECTION BY SECTION ANALYSIS

SECTION 1  Amends Section 33.004, Natural Resources Code, by
           amending subdivision (8), deleting the reference to
           public land and the contents of the management program
           in the definition of "Management program", and by adding
           new subdivisions (13) and (14), which define "Council"
           and "Coastal zone", respectively.  

SECTION 2  Amends Sections 33.051, 33.052, 33.053, and 33.055,
           Natural Resources Code as follows:

           Section 33.051 is changed to include the council in the
           performance of duties assigned by this subchapter.

           Section 33.052 is amended by changing the references to
           the "management program" to "coastal management
           program", as well as references to other sections of
           this code, and by mandating that the program is not
           effective until approved by the council.  References to
           "coastal conservation" are changed to "coastal natural
           resource", and references to specific agencies are
           changed to "agencies represented on the council."  The
           council, instead of the land office, may appoint an
           advisory committee, whose members serve at the pleasure
           of the council.  "Coastal natural resource areas" as
           defined in Section 33.203 of this code is substituted
           for the definition of "coastal conservation areas".  

           Section 33.053 changes "management program" to "coastal
           management program" and mandates that the program
           include the elements required by the Coastal Zone
           Management Act of 1972 and that the program identify the
           boundaries of the coastal zone, as referenced in
           sections 33.2053(k) and 33.203(7) of this code.
  
           Section 33.055 is amended by changing "management
           program" to "coastal management program" and requires
           inclusion of the council when a public hearing is held
           to develop, review, or amend the program.  Subsection
           (b) is deleted.

SECTION 3  Subsection 33.202(a)(1) is amended to clarify that it
           is a state policy goal to coordinate government actions
           affecting coastal natural resource areas.  Also, the
           section is amended to correct a typographical error.

SECTION 4  Amends Subchapter F, Chapter 33, Natural Resources Code
           by amending Sections 33.203, 33.204, 33.205, 33.206,
           33.207, and 33.208 and adding new Sections 33.2051,
           33.2052, 33.2053, 33.209, and 33.210, as follows:

           Section 33.203 is amended by substituting a specific
           definition of "Coastal natural resource areas" for the
           current definition that uses areas designated by the
           coastal management program, and by adding definitions
           for the following:

               "Coastal barrier" 
               "Coastal historic area" 
               "Coastal preserve" 
               "Coastal shore area" 
               "Coastal waters"
               "Coastal wetlands" 
               "Critical area"
               "Critical dune area" 
               "Critical erosion area" 
               "Gulf beach" 
               "Hard substrate reef" 
               "Oyster reef" 
               "Special hazard area" 
               "Submerged land" 
               "Submerged aquatic vegetation" 
               "Tidal sand or mud flat" 
               "Water of the open Gulf of Mexico" 
               "Water under tidal influence" 
               "Agency or subdivision"
               "Agency or subdivision action" 
               "Federal agency activity" 
               "Proposed action" and 
               "Outer continental shelf plan."  

           In addition, the definition of "Council" is amended by
           deleting reference to the Attorney General and adding
           the Chair of the Texas Transportation Commission, a
           member of the State Soil and Conservation Board, a
           member of the Texas Water Development Board, and a
           coastal area business owner who resides in the coastal
           area, and a representative of agriculture appointed by
           the governor, with the advice and consent of the senate,
           and by changing the reference to the Texas Water
           Commission to the Texas Natural Resource Conservation
           Commission.  Finally, coastal management "plan" is
           changed to coastal management "program", and that
           definition is amended.

           Section 33.204 is amended by changing the title of the
           section to read "Administration of Coastal Management
           Program".  The amendment requires the council to adopt
           goals and policies of the coastal management program by
           rule.  In addition, it adds a provision stating that the
           goals and policies of the CMP may not require an agency
           or subdivision to perform an action which would exceed
           the constitutional or statutory authority of the agency
           or subdivision.  Subsection (b) adds a requirement that
           an affirmative vote of two-thirds of the of the members
           of the council is required for council action, except
           for adoption of the coastal management program and
           placement of an item on the agenda.  Subsection (c) is
           amended to allow the governor to designate a local
           elected official from a municipality directly affected
           by a matter under review to serve as a non-voting member
           of the council on that action only.  Subsection (e)
           mandates the land office to prepare annual reports on
           the effectiveness of the coastal management program. 
           The reports are subject to council approval and
           subsequent delivery to the legislature on or before
           January 15 of each odd-numbered year. 

           Section 33.205 is amended by deleting the requirement
           that all agency or subdivision actions comply with the
           coastal management plan and substitutes the requirement
           that those agencies or subdivisions take the plan into
           account before taking action or authorizing any action
           and issue a written determination that the agency's or
           subdivision's proposed action is consistent.  Subsection
           (c) provides that the council may not review actions or
           proposed actions for consistency unless a council member
           or certain other person files a request for referral and
           any three members of the council agree that there is a
           significant unresolved dispute regarding the proposed
           action's or subdivision's consistency with the goals and
           policies of the program.  Subsection (d) provides that
           if consistency review thresholds are in effect, actions
           not exceeding the thresholds may be reviewed if the
           action may directly and adversely certain defined areas. 
           Subsection (e) provides that the council must act on an
           agency or subdivision action within 25 days of the date
           the agency or subdivision proposed the action. 
           Subsection (f) requires the council to establish by rule
           a process by which an applicant can seek a preliminary
           consistency review from the council, for a proposed
           action.  Subsection (g) requires the council to
           establish by rule a process by which an individual or
           small business may obtain assistance with filing
           applications for permits or other proposed actions. 
           Subsection (h) provides that a proposed action that was
           the subject of a preliminary consistency finding may not
           be reviewed by the council unless the permit or proposed
           action has substantially changed since the preliminary
           finding was issued.

           Section 33.2051 lists the agency rules that are required
           to comply with the goals and policies of the CMP, as
           provided in CCC rules.  The list includes:

               (1)  GLO oil spill prevention and response rules;
               (2)  Texas Natural Resource Conservation Commission
               air quality, on-site sewage disposal system, and
               underground storage rules; and 
               (3)  Texas State Soil and Water Conservation Board
               agricultural and silvicultural nonpoint source
               pollution rules.

           Section 33.2052 requires the council by rule to
           establish a process by which an agency may submit rules
           and rule amendments to the council for consistency
           review and by which an agency may submit council
           consistency review thresholds.  After council approval
           on the consistency of the agency's rules and thresholds,
           an agency's consistency determination under section
           33.205(b) is final and not subject to referral for
           review by the council, with certain exceptions.  In
           addition, the council may revoke the certification of
           an agency's rules or thresholds under certain
           circumstances.

           The title of Section 33.2053 is changed to read
           "Individual Agency or Subdivision Actions".  The section
           lists the actions that are required to comply with the
           goals and policies of the coastal management program,
           as follows:

               (a)  General Land Office
                    Mineral lease plan of operations
                    Geophysical/geochemical permits
                    Coastal easements
                    Miscellaneous easements
                    Surface leases
                    Coastal leases
                    Structure registrations
                    Cabin permits
                    Navigation district leases
                    Certification of local government beach/dune
plans
                    Approval of wetlands mitigation banks

               (b)  Public Utility Commission
                    Certificate of convenience and necessity
                    
               (c)  Railroad Commission
                    Wastewater discharge permit
                    Waste disposal pit permit
                    Certification of discharge of dredged or fill
material

               (d)  Texas Department of Transportation
                    Acquisition of dredged material disposal sites
                    Transportation project construction and
maintenance

               (e)  Texas Historical Commission/Texas Antiquities
Committee
                    Permit for disturbance of archaeological
landmarks
                    Review of federal undertakings affecting
historic sites

               (f)  Texas Natural Resource Conservation Commission
                    Wastewater discharge permit
                    Water rights permitting actions involving over
                    5,000 acre-feet or
                         water inside the program boundary or over
                         10,000 acre feet outside the program
                         boundary but within 200 stream miles of
                         the coast
                    Solid/hazardous waste disposal permits
                    Creation of special districts on coastal
barrier islands
                    Approval of special district levee/flood
control projects
                    Certification of discharge of dredged or fill
material

               (h)  Texas Parks and Wildlife Department
                    Oyster harvesting/transplanting permit
                    Endangered species permit
                    Marl/sand/shell/gravel mining permit
                    Approval of development in state parks and
preserves

               (i)  Local Governments
                    Dune protection permits and beachfront
                    construction certificates that either affect
                    over 7,000 square feet of dunes or dune
                    vegetation, disturb over 7,500 cubic yards of
                    dunes, authorize a coastal shore protection
                    project (e.g., seawall, bulkhead, etc.) that
                    lies within 200 feet of the line of vegetation
                    on a public beach or that is more than 500
                    feet long, or close a designated public beach
                    access way on other than a short term basis.  

           In addition, subsection (g) states that for the Trans-Texas Water Program Management Committee to deem a part
           of the Trans-Texas Water Program consistent with the
           coastal management program, then the Trans-Texas Water
           Program Policy Management Committee must have at least
           three council members who are also voting members of the
           Committee, and those same members must make a
           consistency finding by a majority vote.  Subsection (j)
           addresses certain actions not otherwise addressed. 
           Subsection (k) establishes the program boundary,
           including a reference to section 33.203(7) of this code.

           Section 33.206.  Subsection (a) is amended to state that
           a proposed action is consistent with the goals and
           policies of the program unless on affirmative vote, at
           least two-thirds of the council members determine the
           action to be inconsistent.  Subsection (b) requires the
           council to report its findings on inconsistency,
           including specific recommendations on how the proposed
           action may be changed to make it consistent with the
           program.  The agency or subdivision shall notify the
           council within 20 days of receiving the council's
           report, as to whether the agency or subdivision will
           amend its proposed action.  Subsection (c) states that
           if an agency or subdivision refuses to modify its action
           to be consistent with the goals and policies of the
           program, then the council shall ask the attorney general
           to issue an opinion on the consistency of the proposed
           action with the program.  The agency or subdivision is
           stayed from taking the proposed action until the
           attorney general issues the opinion, which shall be
           issued within 25 days of the council's request for the
           opinion.  Subsection (d) requires the council to adopt
           procedural rules for the review of federal actions,
           activities,a and outer continental shelf plans that
           incorporate applicable federal regulations.  The chair
           or any three members may request additional information
           or additional time from a federal agency.  Subsection
           (e) provides that any three members of the council may
           refer a federal action, activity, or outer continental
           shelf plan for council review on consistency grounds. 
           Subsection (f) states that for agency or subdivision
           actions requiring an equivalent federal permit, the
           council may only review the state agency or subdivision
           action for actions under consistency thresholds.  For
           agency or subdivision actions above consistency
           thresholds, the council may choose to review either the
           state or the federal action, but not both.  Subsection
           (g) provides that the council may seek mediation with
           federal agencies that do not change their actions which
           have been deemed inconsistent by the council. 
           Subsection (h) provides that the council may not protest
           a proposed action by an agency or subdivision pertaining
           to an application filed with that agency or subdivision
           prior to the date of the council's adoption of the
           program.

           Section 33.207 deletes language regarding judicial
           review, and adds language allowing the council to
           periodically submit recommendations to an agency or
           subdivision relating to compliance with the program, and
           requires the council to report to the legislature any
           necessary statutory changes and agency or subdivision
           actions that are not consistent with the CMP. 

           Section 33.208 states that the agency or subdivision
           with jurisdiction over a proposed action shall enforce
           the provisions of the program.  Subsection (b) requires
           the attorney general to file a suit in district court
           in Travis County to enforce this subchapter if the
           agency or subdivision fails to change an inconsistent
           action to be consistent with the goals and policies of
           the program.  The court shall consider the attorney
           general's opinion in determining whether the proposed
           action is consistent with the coastal management
           program.  Subsection (c) provides that the council and
           the agency or subdivision may enter into a settlement
           agreement with regard to the proposed action and that
           the council may rescind its request for an attorney
           general opinion. 

           Section 33.209 requires that this subchapter may not be
           applied so as to result in a taking, damage, or
           destruction of property without adequate compensation.

           Section 33.210 contains a sunset provision, with an
           expiration date of September 1, 1999.

SECTION 5  Requires the governor to appoint, subject to senate
           confirmation in the 75th Legislature, an owner of a
           business located in a coastal area who resides in the
           coastal area and a representative of agriculture to the
           Coastal Coordinating Council for a term commencing
           February 1, 1996.  Also, a council member appointed
           prior to the 74th Legislature shall serve the remainder
           of that council member's term, regardless of senate
           confirmation.

SECTION 6  Provides that the governor shall withdraw the state's
           coastal management program if the US Dept. of Commerce
           or the USEPA find that the state has failed to submit
           an approvable nonpoint pollution control program,
           pursuant to 16 U.S.C. Section 1455b.

SECTION 7  Emergency clause.  Effective upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

In subsection (g) of Section 33.052 of the substitute, the
requirement for the land office to present reports to the
legislature is deleted, leaving in place a similar requirement
contained in Sec. 33.204(e) for the land office to prepare annual
reports on the effectiveness of the coastal management program. 
Council approval of the reports is required.  On or before January
15 of each odd-numbered year, the land office shall send the
previous two annual reports to the legislature.

The delineation of the coastal boundary in the substitute differs
from that in the original by clarifying that the coastal boundary
is the modified Oil Spill Prevention and Response Act line, and
includes a reference to the delineation of the boundary in Section
33.2053(k) and Section 33.203(7).

The substitute clarifies that one of the policy goals of the state
is to coordinate the performance of government programs affecting
coastal natural resource areas.  

Section 4 of the substitute is changed to reflect the deletion of
Section 33.209 in the original bill, relating to voluntary special
area management plans, and the renumbering of the remaining
sections.

The definition of "serpulid worm reef" in the original is replaced
in the substitute by a definition for "hard substrate reef".

Section 33.203(20), the definition of "council" in the substitute,
clarifies that the respective chair of Parks and Wildlife
Commission, the Texas Natural Resource Conservation Commission, the
Texas Water Development Board, or the Texas Transportation may
designate another member of that board or commission to serve on
the council in place of the respective chair.

Throughout the substitute, as appropriate, references to "agency"
have been changed to "agency or subdivision" to reflect the fact
that certain local actions, primarily limited to dune protection
and beach access permits, may be subject to council consistency
review.  

Section 33.203(23), the definition of "agency or subdivision
action" to reference those actions that may be subject to council
review, as delineated in Sections 33.2051 and 33.2053 of this code.

Section 33.204(24), the definition of "federal agency activity" has
been changed to include "financial assistance" as a federal agency
activity.

Section 33.204(25), the definition of "federal agency action" is
changed to reflect that the council reviews "proposed", not
"final", federal agency actions. 

Section 33.205(e) is changed to reference that the council may
review actions referred under subsections (c) or (d) of Section
33.205.

Section 33.205(f)(2)(C) is changed to provide that the council may
wait to make its preliminary determination until it has enough
information available.

Section 33.205 in the substitute also differs from the original due
to the addition of subsection (h), which provides that a
preliminary finding of consistency is binding unless the permit or
proposed action has been substantially changed since the
preliminary finding was issued.

Section 33.205(b) is changed in the substitute to make reference to
the proper section of the code.

Section 33.2053(g)(2) is changed in the substitute to clarify that
a majority vote of those council members who are also members of
the Trans-Texas Water Management Policy Committee makes a finding
of consistency of the Trans-Texas Water Program with the goals and
policies of the coastal management program. 

Section 33.206(b) of the substitute is changed to require that the
report the council makes to an agency proposing and inconsistent
action shall specify how the proposed action is inconsistent with
the goals and policies of the coastal management program.  Further,
the substitute clarifies that an agency whose proposed action is
under council review shall notify the council of the agency's
decision on whether to modify or amend the proposed action to make
it consistent with the goals and policies of the program.  The
original required the agency to notify the council of the agency's
refusal to change its action.

As stated earlier, the substitute differs from the original in that
Sec. 33.209 of the original, relating to voluntary special area
management plans, has been deleted from the substitute.

SUMMARY OF COMMITTEE ACTION

H.B. 3226 was considered by the committee in a formal meeting on
April 27, 1995.  

The committee considered a complete substitute for the bill.  The
substitute was adopted without objection.  

The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote of
7 ayes, 0 nays, 0 pnv, 2 absent.