BILL ANALYSIS S.B. 271 By: RATLIFF (RAMSAY) April 25, 1995 Committee Report (Unamended) BACKGROUND Current Texas law requires surface coal mining and reclamation permit applicants to report violations received only for operations within this state. Suspension and rescission occur only after a notice and opportunity for a hearing. Current federal law requires violations in any state to be reported when applying for the permit, and states are required to automatically suspend or rescind a permit if a violation remains uncorrected or a penalty remains unpaid. PURPOSE S.B. 271 would allow the Railroad Commission of Texas to suspend or rescind, with notice, the permit of any violator of a federal or any state's surface coal mining regulations. The bill would require the Commission to withhold a permit for any applicant in violation of the same laws. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Railroad Commission of Texas in SECTION 3 of this bill. SECTION BY SECTION ANALYSIS S.B. 271 amends Article 5920-11, Vernon's Texas Civil Statutes, as follows: SECTION 1. Amends Section 6(b) to require the process of making and amending rules and issuing permits to be pursuant to the Administrative Procedure Act (Chapter 2001, Government Code). Exempts actions by the Railroad Commission of Texas relating to automatically suspending or rescinding a surface coal mining and reclamation permit from the Administrative Procedure Act. Authorizes a permittee who is the subject of a suspension or rescission notice issued by the commission to file an appeal for administrative review of the notice as provided by commission rules. The review would be governed by the Administrative Procedure Act. SECTION 2. Amends Section 21(c) to include the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. Section 1201) and any other federal or Texas regulations in the list of regulations for which the applicant is required to submit a list of violations committed. Deletes reference to violations that occur "within the state" so that violations that occur in other states are also included in the list of violations that must be reported. Deletes language allowing a permittee to obtain a permit while a violation is being contested. Prohibits issuing a permit to an operator who has demonstrated a pattern of "wilful" violation of this Act or the other laws referred to in Subsection (c). SECTION 3. Adds Section 21a, entitled "SUSPENSION OR RESCISSION OF IMPROVIDENTLY ISSUED PERMITS", to authorize the commission to adopt and enforce rules relating to suspension or rescission of permits issued under regulations that are less effective than federal regulations adopted under the Surface Mining Control and Reclamation Act of 1977. SECTION 4. Effective Date: September 1, 1995. SECTION 5. Emergency Clause. SUMMARY OF COMMITTEE ACTION S.B. 271 was considered by the Energy Resources Committee in a public hearing on April 24, 1995. The following witnesses testified neutrally on the bill: Melvin Hodgkiss, representing the Railroad Commission of Texas; and, Brenda Loudermilk, also representing the Railroad Commission of Texas. The bill was left pending. Later in the same public hearing, S.B. 271 was laid out on pending business. The bill was reported favorably without amendment with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 6 ayes, 0 nays, 0 PNV, and 3 absent.