BILL ANALYSIS H.B. 3226 By: Berlanga (Patterson) Natural Resources 05-17-95 Senate Committee Report (Unamended) BACKGROUND In 1989, the 70th Legislature enacted S.B. 1571, directing the Texas General Land Office to develop a coastal management plan in conjunction with other state agencies. In 1990, a citizens advisory committee was formed which conducted public hearings and workshops and identified priority issues. 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 created the Coastal Coordination Council to resolve conflicts between state agencies. PURPOSE As proposed, H.B. 3226 limits the authority granted to the Coastal Coordination Council to review agency and subdivision actions. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Coastal Coordination Council under SECTION 4 (Sections 33.204(a), 33.205(f) and (g), 33.2052(a) and (c), and 33.206(d), Natural Resources Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 33.004, Natural Resources Code, by amending Subdivision (8), and adding Subdivision (13), to define "council" and "coastal zone," and to redefine "management program." SECTION 2. Amends Sections 33.051-33.053, and 33.055, Natural Resources Code, as follows: Sec. 33.051. GENERAL DUTY. Requires the Coastal Coordination Council (council), among others, to perform the duties of this subchapter. Sec. 33.052. New heading: DEVELOPMENT OF COASTAL MANAGEMENT PROGRAM. (a) Requires the commissioner of the General Land Office (commissioner) to develop a continuing comprehensive coastal management program (program) pursuant to the policies stated in Section 33.202 of this code. Provides that the program is not effective until approved by a majority of the council under Section 33.204 of this code. (b) Requires the General Land Office (land office), in developing the program, to act as the lead agency to coordinate and develop a long-term plan for the management of uses affecting coastal natural resource, rather than conservation, areas, in cooperating with certain state agencies, including those agencies represented on the council. (c) Authorizes the council, rather than the land office, to appoint and establish procedures for an advisory committee to advise the council and the land office on coastal management issues. Makes a conforming change. (d) Defines "coastal natural resource areas." Deletes a definition of "coastal conservation areas." (e) Redesignates existing Subsection (f) to make a conforming change. Deletes existing Subsection (e) granting rulemaking authority to the land office, and existing Subsection (g) requiring the land office to present a report to the legislature. Sec. 33.053. New heading: ELEMENTS OF COASTAL MANAGEMENT PROGRAM. (a) Requires the program, in compliance with the Coastal Zone Management Act of 1972 (16 U.S.C. Section 1451 et seq.) to include certain elements. (b) Defines "agency or subdivision action." (c) Defines "federal agency action," "federal agency activity," and "outer continental shelf plan." Sec. 33.055. New heading: PUBLIC HEARINGS TO CONSIDER COASTAL MANAGEMENT PROGRAM. Requires the commissioner and council, in developing, reviewing, or amending the program, to hold or have held public hearings as appropriate. Makes a conforming change. Deletes existing Subsection (b) regarding public hearings. SECTION 3. Amends Section 33.202(a), Natural Resources Code, to declare that it is the policy of this state to better serve the people of Texas by, among other measures, coordinating the performance of government programs affecting coastal natural resource areas, and coordinating the measures required to resolve identified coastal problems. SECTION 4. Amends Chapter 33F, Natural Resources Code, by amending Sections 33.203-33.208, and adding Sections 33.2051-33.2053 and 33.209-33.211, as follows: Sec. 33.203. DEFINITIONS. Defines "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 action," "federal agency activity," "federal agency action," "proposed action," and "outer continental shelf plan." Redefines "coastal natural resource areas," "council," "agency or subdivision," and "coastal management program." Sec. 33.204. New heading: ADMINISTRATION OR COASTAL MANAGEMENT PROGRAM. (a) Requires the council, by rule, to adopt goals and policies of the program. Prohibits a goal or policy from requiring an agency or subdivision from performing an action that would exceed the constitutional or statutory authority of the agency or subdivision to which the goal or policy applies. (b) Authorizes the chair of the council or any three council members to convene special meetings. (c) Authorizes the council to act on the agreement of a majority of the quorum of the council, except as provided by Sections 33.205(c)(3) and 32.206(a). (d) Requires the governor, for each matter to be reviewed under Section 33.205(c) or (d), to designate a local elected official from a county or municipality directly affected by the matter under review. (e) Redesignates existing Subsection (c). Requires the council, in conducting reviews under Section 33.205 of this code, to receive and consider the testimony of any person regarding the program as the testimony relates to the agency or subdivision action or federal agency action or activity or outer continental shelf plan under review. (f) Redesignates existing Subsection (d). Prohibits the council members from receiving compensation for services. Requires the land office to prepare an annual report on the effectiveness of the program, and to submit the report to the council for approval. Requires the council, on or before January 15 of each odd-numbered year, to send to the legislature each of the previous two annual reports. Sec. 33.205. New heading: CONSISTENCY WITH COASTAL MANAGEMENT PROGRAM; COUNCIL REVIEW. (a) Requires an agency or subdivision that takes an agency or subdivision action under Section 33.2051 or 33.2053 that may adversely affect a coastal natural resource area to comply with the goals and policies of the program. (b) Requires an agency or subdivision subject to the requirements of Subsection (a) to affirm that it has taken into account the goals and policies of the program by issuing a written determination that a proposed action described by Section 33.2051 or 33.2053 is consistent with the program goals and policies. (c) Prohibits the council from reviewing a proposed action subject to the requirements of Subsections (a) and (b) of this section for consistency with the goals and policies of the program, except under certain circumstances. (d) Prohibits the council, if consistency review thresholds are in effect under Section 33.2052, from reviewing a proposed action subject to the requirements of Subsections (a) and (b) for consistency with the goals and policies of the program, unless the requirements of Subsection (c) are satisfied and certain other conditions related to the availability of a formal hearing under Chapter 2001, Government Code. (e) Requires the council to consider and act on a matter referred under Subsection (c) or (d) before the 26th day after the date the agency or subdivision proposed the action. Provides that an action subject to the contested case provisions of Chapter 2001, Government Code, is proposed when notice of a decision or order is issued under Section 2001.142, Government Code. (f) Requires the council, by rule, to establish a process by which an applicant for a permit or other proposed action described in Section 33.2053, or an agency or subdivision proposing an action, may request and receive a preliminary consistent review. Sets forth requirements for the rules. (g) Requires the council, by rule, to establish a process by which an individual or small business may request and receive assistance with filing applications for permits or other proposed actions described by Section 33.2053. Sets forth requirements for the rules. (h) Authorizes the council, if an agency, subdivision, or applicant has received a preliminary finding of consistency under Subsection (f)(2)(C) or (g)(2)(F) and a request for referral was filed on that action under Subsection (c)(2), to accept the request for referral only if the agency or subdivision has substantially changed the permit or proposed action since the preliminary finding was issued. Sec. 33.2051. AGENCY RULEMAKING ACTIONS. (a) Requires the land office to comply with Sections 33.205(a) and (b) when adopting or amending a rule governing the prevention of, response to, or remediation of a costal oil spill. (b) Requires the Texas Natural Resource Conservation Commission to comply with Sections 33.205(a) and (b) when adopting or amending a rule governing air pollutant emissions, on-site sewage disposal systems, or underground storage tanks. (c) Requires the State Soil and Water Conservation Board to comply with Sections 33.205(a) and (b) when adopting or amending a rule governing agricultural or silvicultural nonpoint source pollution. (d) Requires an agency to comply with Sections 33.205(a) and (b) when adopting or amending a rule governing an individual action described by Section 33.2053. (e) Prohibits the council from reviewing a proposed rule of the Texas Department of Agriculture. Sec. 33.2052. CERTIFICATION OF AGENCY RULES; AGENCY ACTIONS CONSIDERED CONSISTENT. (a) Requires the council, by rule, to establish a process by which an agency may submit rules and rule amendments described by Section 33.2051 to the council for review and certification for consistency with the goals and policies of the program. (b) Requires the process to provide that an agency may submit to the council consistency review thresholds for the agency's actions under Section 33.2503. Provides that, after the council certifies that an agency's rules are consistent and approved the agency's thresholds, the agency consistency determination under Section 33.205(b) for an action is final and is not subject to referral and review, except as provided by Section 33.205(d). (c) Requires the council, by rule, to provide that the council may revoke its certification under Subsection (b) if the council finds that an agency has taken certain action inconsistent with program goals and policies. Sec. 33.2053. INDIVIDUAL AGENCY OR SUBDIVISION ACTIONS. (a)-(i) Requires the land office, the School Land Board, or a board for lease of state-owned lands, the Public Utility Commission of Texas, the Railroad Commission of Texas, the Texas Transportation Commission, the Texas Historical Commission and the Antiquities Committee, the Texas Natural Resource Conservation Commission, the Parks and Wildlife Department, and a subdivision to comply with Sections 33.205(a) and (b) when issuing or approving certain items. Prohibits the council from reviewing certain actions of the Texas Natural Resource Conservation Commission. (j) Sets forth the conditions under which an action to renew, amend, or modify an existing permit, certificate, lease, easement, approval, or other action is not an action under this section. (k) Requires the council to establish a program boundary to limit the geographic area in which the requirements of Sections 33.205(a) and (b) apply. Provides that this subchapter does not apply to an agency action authorizing an activity outside the program boundary, except as provided by Subsections (f)(8)-(10). Sec. 33.206. COUNCIL ACTION. (a) Provides that a proposed action is consistent with the goals and policies of the program and approved by the council, unless the council determines the action to be inconsistent with the program and protests the action. (b) Requires the council, if it protests the proposed action, to report its findings on the matter to the agency or subdivision. Requires the report to specify how the proposed action is inconsistent with the program, and to include specific recommendations of the council regarding how the proposed action may be modified or amended to make it consistent with the program. Requires the agency or subdivision, before the 21st day after the date the agency or subdivision receives the report, to review the findings and recommendations and determine whether to modify or amend the proposed action, and to notify the council of its decision. (c) Requires the council, if an agency or subdivision does not modify or amend a proposed action to be consistent with the program, to request the attorney general to issue an opinion on the consistency of the proposed action with the program. Stays the agency or subdivision from taking the proposed action until the attorney general issues the opinion. Requires the attorney general to issue an opinion before the 26th day after the date the council requests the opinion. (d) Requires the council to adopt procedural rules for the review of federal actions, activities, and outer continental shelf plans that incorporate the provisions of federal regulations governing those reviews. Requires the rules to provide that the chair and any three council members may request additional information from a federal agency or additional time for review as provided by the federal regulations. (e) Requires the council to review any federal action, activity, or outer continental shelf plan that any three members of the council agree presents a significant unresolved issue regarding consistency with the goals and policies of the program, and to place the matter on the agenda of a meeting of the council for review. (f) Sets forth requirements for the council regarding certain actions described by Section 33.2052. (g) Authorizes the governor, with the assistance of the chair of the council, if the council finds a proposed federal agency action or activity or outer continental shelf plan is inconsistent with the program, and the federal agency does not modify the action, activity, or plan to achieve consistency with the program, to seek mediation of the matter in accordance with federal law. (h) Prohibits the council from protesting a proposed action by an agency or subdivision pertaining to an application filed with that agency or subdivision before the date the program is adopted. Sec. 33.207. COUNCIL RECOMMENDATIONS. Authorizes the council to submit recommendations periodically to an agency or subdivision designed to encourage the agency or subdivision to carry out its functions in a manner consistent with the program. Requires the council to report to the legislature on recommended statutory changes needed to make more effective and efficient use of public funds and provide for more effective and efficient management of coastal natural resource areas, and in agency or subdivision actions that are not consistent with the program. Deletes existing Section 33.207 regarding judicial review. Sec. 33.208. ENFORCEMENT. (a) Requires the agency or subdivision with jurisdiction over a proposed action to enforce the provisions of the program. (b) Requires the attorney general to file suit in Travis County to enforce this subchapter if the attorney general issues an opinion under Section 33.206(c) that a proposed agency or subdivision action is inconsistent with the program and the agency or subdivision fails to implement the council's recommendation regarding the action. Requires the court to consider the attorney general's opinion in determining whether the proposed action is consistent with the program. (c) Authorizes the council and the agency or subdivision to enter into a settlement agreement with regard to the proposed action. Authorizes the council to rescind its request for an opinion from the attorney general if the council and agency or subdivision enter into a settlement agreement. Sec. 33.209. PROHIBITION ON SPECIAL AREA MANAGEMENT PLANS. Prohibits the council from developing or approving a special area management plan. Sec. 33.210. PRIVATE PROPERTY. Prohibits the requirements of this subchapter from being applied in a manner that would result in the taking, damage, or destruction of property without adequate compensation. Sec. 33.211. SUNSET PROVISION. Subjects the council to Chapter 325, Government Code. Provides that, unless continued in existence as provided by that chapter, the council is abolished and this subchapter expires September 1, 1999. SECTION 5. Requires the governor to make certain appointments to the council as soon as possible on or after the effective date of this Act. SECTION 6. Provides that the legislature intends that the program submitted to the governor under U.S.C. Section 1455 on or after the effective date of this Act be as similar to the program submitted before the effective date of this Act as is practicable. SECTION 7. Requires the governor to withdraw certain programs developed under Chapter 33, Natural Resources Code, if the secretary of the U.S. Department of Commerce and the administrator of the U.S. Environmental Protection Agency find that Texas has failed to submit an approvable coastal nonpoint pollution control program as required by 16 U.S.C. Section 1455b, which would result in the withholding of money under 16 U.S.C. Section 1455b(c)(3) and (4). SECTION 8. Emergency clause. Effective date: upon passage.