By Cuellar of Webb                                    H.B. No. 1515
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the creation of the Environmental Equity Fund
    1-3  consisting of penalties from the enforcement of pollution
    1-4  prevention laws.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subtitle B, Title 5, Health and Safety Code is
    1-7  amended by adding Chapter 374 to be entitled "Environmental Equity
    1-8  Fund" to read as follows:
    1-9        Section 374.001.  POLICY.  (a)  The legislature finds and
   1-10  declares that a number of individuals and communities around the
   1-11  state have been adversely affected by violation of the state's
   1-12  pollution prevention laws.  These adverse impacts have resulted in
   1-13  both direct and indirect threats to health and safety, as well as
   1-14  the reduction of private property values.  Although those who cause
   1-15  or contribute to these pollution violations may ultimately be held
   1-16  accountable in the form of civil and criminal penalties, these
   1-17  moneys historically have been deposited in the state's general
   1-18  revenue for uses unrelated to the pollution problem caused in the
   1-19  particular community.  Localities have been handicapped in their
   1-20  ability to rectify the lingering problems caused by pollution
   1-21  violations and in their ability to prevent the recurrence of such
   1-22  problems.  Accordingly, the legislature finds that it would be
   1-23  desirable and just to reinvest in the communities of concern the
    2-1  penalties from violations of pollution prevention laws.  The
    2-2  legislature further finds that a rational and consistent means for
    2-3  accomplishing this reinvestment is by grant of these penalty moneys
    2-4  under the administration of a board having a statewide perspective.
    2-5        Section 374.002.  ENVIRONMENTAL EQUITY FUND.  (a)  The
    2-6  Environmental Equity Fund is a special account in the general
    2-7  revenue fund.
    2-8        (b)  The purpose of the Environmental Equity Fund is to
    2-9  benefit communities and groups that have been adversely affected by
   2-10  violations of state pollution prevention laws.
   2-11        (c)  The Environmental Equity Fund shall be administered by
   2-12  the environmental equity fund board.
   2-13        (d)  The environmental equity fund board shall be composed of
   2-14  the following members:
   2-15              (1)  a representative of the attorney general;
   2-16              (2)  a representative from the Texas Natural Resource
   2-17  Conservation Commission (TNRCC);
   2-18              (3)  an appointee of the speaker of the house;
   2-19              (4)  an appointee of the lieutenant governor; and
   2-20              (5)  an appointee of the governor.
   2-21        (e)  A person appointed by the speaker of the house, the
   2-22  lieutenant governor, or the governor under Subdivisions (3), (4),
   2-23  or (5) of Subsection (d) serves a two-year term ending on February
   2-24  1 of each odd-numbered year.  A vacancy in one of those positions
   2-25  shall be filled by appointment of the officer who appointed the
    3-1  person who vacated the board position, and the new appointee shall
    3-2  serve for the unexpired term.
    3-3        (f)  The environmental equity fund board members shall
    3-4  appoint a member of the board as a chairperson.
    3-5        (g)  The environmental equity fund board members shall meet
    3-6  each calendar quarter and at the call of the presiding officer or a
    3-7  majority of the members.
    3-8        (h)  The environmental equity fund board members shall not
    3-9  receive compensation for services but may receive reimbursement for
   3-10  actual and necessary expenses.
   3-11        (i)  Support staff for the environmental equity fund board
   3-12  will be provided by the TNRCC and the attorney general.
   3-13        Section 374.003.  DEPOSITS TO FUND.  The fund consists of:
   3-14  (1) all administrative penalties recovered by the TNRCC pursuant to
   3-15  the provisions of the Health and Safety Code and the Water Code,
   3-16  unless such penalties are directed by law to be deposited in a
   3-17  special fund or account other than the Environmental Equity Fund;
   3-18              (2)  all civil penalties, criminal penalties, and fines
   3-19  recovered by the attorney general pursuant to the provisions of the
   3-20  Health and Safety Code and the Water Code, unless:
   3-21                    (A)  such penalties are directed by law to be
   3-22  deposited in a special fund or account other than the Environmental
   3-23  Equity Fund; or
   3-24                    (B)  such penalties are allocated by law to a
   3-25  governmental subdivision of the state other than the state;
    4-1              (3)  interest on money in the fund; and
    4-2              (4)  money from gifts, grants, or any other source
    4-3  intended to be used for the purposes of this fund.
    4-4        Section 374.004.  FUND ADMINISTRATION.  (a)  The
    4-5  environmental equity fund board is authorized to adopt rules
    4-6  governing administration of the fund, including criteria for
    4-7  evaluating applications for grants from the fund.  The provisions
    4-8  of Subchapters A and B, Chapter 2001, Government Code, except
    4-9  Subsection (3) of Section 2001.004 and Section 2001.005, apply to
   4-10  the environmental equity fund board.
   4-11        (b)  The environmental equity fund board shall review
   4-12  applications from individuals, groups, and political subdivisions
   4-13  for grants that will be used for projects to prevent pollution,
   4-14  reduce the amount of pollutants reaching the environment, enhance
   4-15  the quality of the environment, or increase public awareness of
   4-16  environmental matters.  In reviewing the applications, the
   4-17  environmental equity fund board shall give preference to projects
   4-18  that benefit a community in which the violations which gave rise to
   4-19  a fine or penalty occurred.  In addition, the environmental equity
   4-20  fund board shall consider the demographic characteristics of an
   4-21  affected community, including its racial, ethnic, and
   4-22  socio-economic characteristics.
   4-23        SECTION 2.  Subsection (t), Section 361.251, Health and
   4-24  Safety Code, is amended to read as follows:
   4-25        (t)  A penalty collected under this section shall be
    5-1  deposited in the state treasury to the credit of the Environmental
    5-2  Equity Fund <general revenue fund>.
    5-3        SECTION 3.  Subsection (q), Section 361.252, Chapter 361,
    5-4  Health and Safety Code, is amended to read as follows:
    5-5        (q)  A penalty collected under this section shall be
    5-6  deposited in the state treasury to the credit of the Environmental
    5-7  Equity Fund <general revenue fund>.
    5-8        SECTION 4.  Subsection (c), Section 361.223, Health and
    5-9  Safety Code, is amended to read as follows:
   5-10        (c)  A civil penalty recovered in a suit first brought by a
   5-11  local government or governments under this chapter shall be equally
   5-12  divided between the state and the local government or governments
   5-13  that first brought the suit, and the state shall deposit its
   5-14  recovery in the state treasury to the credit of the Environmental
   5-15  Equity Fund <to the credit of the general revenue fund>.
   5-16        SECTION 5.  Section 26.126, Water Code, is amended to read as
   5-17  follows:
   5-18        (a)  All civil penalties recovered in suits instituted by the
   5-19  State of Texas under this chapter through the commission or the
   5-20  Parks and Wildlife Department shall be deposited in the state
   5-21  treasury to the credit of the Environmental Equity Fund <paid to
   5-22  the General Revenue Fund of the State of Texas>.
   5-23        (b)  All civil penalties recovered in suits instituted by a
   5-24  local government or governments under this chapter shall be equally
   5-25  divided between the State of Texas and the local government or
    6-1  governments first instituting the suit, with 50 percent of the
    6-2  recovery to be deposited in the state treasury to the credit of the
    6-3  Environmental Equity Fund <paid to the General Revenue Fund of the
    6-4  State of Texas> and the other 50 percent paid equally to the local
    6-5  government or governments first instituting the suit.
    6-6        SECTION 6.  Subsection (m), Section 26.136, Chapter 26, Water
    6-7  Code, is amended to read as follows:
    6-8        (m)  A penalty collected under this section shall be
    6-9  deposited in the State Treasury to the credit of the Environmental
   6-10  Equity Fund <General Revenue Fund>.
   6-11        SECTION 7.  Subsection (m), Section 27.1015, Chapter 27,
   6-12  Water Code, is amended to read as follows:
   6-13        (m)  A penalty collected under this section shall be
   6-14  deposited in the State Treasury to the credit of the Environmental
   6-15  Equity Fund <General Revenue Fund>.
   6-16        SECTION 8.  APPROPRIATION OF PENALTIES, FINES, AND
   6-17  SETTLEMENTS.  All moneys recovered by the attorney general or the
   6-18  TNRCC pursuant to enforcement of the Health and Safety Code and
   6-19  Chapter 26, Water Code, are credited to the Environmental Equity
   6-20  Fund unless such penalties or fines are directed by law to be
   6-21  deposited in a special fund or account other than the Environmental
   6-22  Equity Fund or are allocated to a governmental division of the
   6-23  state other than the state.  Moneys hereby appropriated may be
   6-24  expended only for purposes of carrying out the objectives of the
   6-25  Environmental Equity Fund, and may not be appropriated for any
    7-1  other purpose.  Unexpended balances credited to the Environmental
    7-2  Equity Fund at the end of each biennium are carried over to each
    7-3  successive biennium.
    7-4        SECTION 9.  This Act takes effect September 1, 1995.
    7-5        SECTION 10.  SEVERABILITY.  If any section, sentence, clause,
    7-6  or part of this Act shall, for any reason, be held invalid, such
    7-7  invalidity shall not affect the remaining portions of the Act, and
    7-8  it is hereby declared to be the intention of this legislature to
    7-9  have passed each section, sentence, clause, or part irrespective of
   7-10  the fact that any other section, sentence, clause, or part may be
   7-11  declared invalid.
   7-12        SECTION 11.  EMERGENCY.  The importance of this legislation
   7-13  and the crowded condition of the calendars in both houses create an
   7-14  emergency and an imperative public necessity that the
   7-15  constitutional rule requiring bills to be read on three several
   7-16  days in each house be suspended, and this rule is hereby suspended.